CONFIDENTIAL

Brief No 2

VISIT TO HONG KONG BY SECRETARY OF STATE FOR TRADE:

26-30 JANUARY 1980

BRIEF NO 2: POLITICAL BRIEF

Constitutional and Political Background

Hong Kong consists of:

(a) Hong Kong Island, which China ceded to Britain in

perpetuity in 1842 by the Treaty of Nanking;

(b) Kowloon and Stonecutters' Island, which were similarly

ceded in 1860 by the First Convention of Peking;

(c) the New Territories, which China leased to Britain

for 99 years by the Second Convention of Peking in 1898;

The total land area is 404 square miles. The population is

approximately 5 million (98% ethnic Chinese, 2% expatriates,

mainly Europeans and Indians).

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Hong Kong is a Crown Colony and the Foreign and Commonwealth

Secretary is responsible to Parliament for its government.

Kong is administered by a Governor, who is advised by an Executive

Council and makes laws with the help of a Legislative Council.

The members of both Councils are appointed by the Governor.

They include both Government officiels and members of the public

selected because they have achieved distinction in various fields

of Hong Kong life. There are no elections to either Council.

Anglo/Chineso Rolations over Hong Kong

3. Relations between Britain and China over Hong Kong are at

present excellent. Chinu shares our interest in maintaining the

territory's prosent stability and prosperity.

There are substantial.

CONFIDENTIAL

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