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DSR 11C

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THE FUTURE OF HONG KONG: THE OPTIONS AVAILABLE TO HMG

1.

The Problem

Lease expires in 1997. Need to decide:

a) what to do in 1997;

b) post-1997; and

c) in the meantime

Related problem of land leases in New Territories.

1982 the

crucial year. This more immediate problem is being tackled

in parallel but closely linked with main problem of long term

future.

2.

Objectives

1) to fulfil our obligations to the territory and

people of Hong Kong;

ii) to minimise the burden to the UK of our continued

presence there and to maximise benefits;

iii) to seek a long term solution acceptable to China,

Hong Kong and HMG.

The Present Position

3.

Legal

Economic

International Law

British Constitutional

Chinese Attitude

Economic System

Hong Kong Government Involvement

British Trade Balance

British Investment

Chinese Hong Kong relativity

Trade including ECGD

O

о

Investment

-

ADB IMF

Guangdong development

Transport etc

/Politicad427265 250M 5/77 905275

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