-3-
legal steps should be taken to enable British administration
to continue after 1997 should the Chinese authorities at the
time so wish. On 24 September the Ambassador was informed that
the Chinese Government regarded the steps we had in mind as
"unnecessary and inappropriate".
We therefore have no option
but to drop the original plan. But the problem cannot be dealt
with, as the Chinese appear to think, by general assurances
that the interests of investors will be protected. Another
solution will therefore have to be found before too long if
the one we have proposed is unacceptable.
Foreign and Commonwealth Office
17 October 1979