}

DSR 11C

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-10-

these lines. The second half of this paper, which examines

the longer-term prospects, considers various options. But in

the 1980s the Chinese are unlikely to be prepared to commit

themselves in this way. We should therefore examine any

Chinese proposal of this sort very carefully but only be

prepared to make concessions if Peking were ready to give

assurances going wellbeyond a pragmatic understanding on

:

land leases and general assurances about Hong Kong's future

stability.

Chinese Representative

12.

Here the problem is primarily political. There would be

no legal problem for HMG in agreeing to the presence of a

'Chinese Representative'in Hong Kong'. As Annex A shows,

there was for a short time such an official after the Second

World War. What would matter for us would be the psychological

and political impact on confidence in Hong Kong.

This would

in turn depend partly on the fuction of the representative.

13. If the representative simply took up the present liaison

duties of the senior New China News Agency official, which

amount in practice to a diplomatic role, it would be

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/relatively

Dd 0532000 400 M 5178 HMSO Bracknell

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