140

LCA

SECRET

香港總督府

GOVERNMENT HOUSE

HONG KONG

24 February 1981

HKk oud!!

RENG THE RATI

See

RECEIVES IN REGISTRY NO. 31

10 MAR 1931

42

'ker reddy,

HONG KONG : PAPER ON THE FUTURE

KFFICER

INDEX

PA

ملل

us 1817.3:

It

REGISTRY

Action Taken

Thank you for sending,with your letter

27 January, the draft paper on the future.

of

a good start in getting our ideas clear on the options,

2.

Some

I am attaching comments on the draft. of these are matters of detail. There are, however, two major points touched on in these comments which need emphasising.

3.

The first is sovereignty.

I believe we must

have a clear view of all the legal implications of accepting, by whatever method, that Hong Kong as a whole is Chinese territory, although administered by Britain, and of what would be the juridical basis for that administration thereafter.

4.

I am attracted by the idea of reaching an agreement with the Chinese for a simultaneous abrogation of the treaties affecting Hong Kong, an amendment of the 1898 Order in Council empowering the Governor to carry on until alternative arrangements for administration are made (thereby getting round the problem of 1997) and a statement by the Chinese of their intention to continue to maintain the status quo 'until the time is ripe". It could give the Chinese sufficient to save their face in maintaining the present administration if they wanted to, and their accompanying statement could off- set the jolt to confidence that abrogation would produce. But would it be legal?

5.

11

We also need to consider what action would be needed in respect of the application to Hong Kong of

Sir Edward Youde KCMG MBE

/ 2

Deputy to Permanent Under-Secretary

of State

Foreign and Commonwealth Office

SECRET

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