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DSR 11C
A
relatively easy to explain the change as the natural result
of improved Sino-UK relations and as ending the anomaly of
the NCNA role. From our point of view there would be
advantage in the official depending from the Ministry of
Foreign Affairs as was the case under the Nationalist
Government in the lat 1940s. We would in any case not want
to accept a representative of the Guangdong Provincial
Government.
This would cut across our practice of dealing
with Peking on major policy affecting Hong Kong and might
cause difficulties if a provincial administration were in
the future to adopt a more adventurist policy than the central
government towards the Territory. However, even the straight
formalisation of Chinese Government representation in Hong
Kong would be regarded as of considerable significance by
public opinion in the Territory. Taken on its own, it could
be seen as a move towards an agreement with China. Damage
to confidence would depend on the context in which the move
was set. If the matter came up during the next 5 years, this
would probably mean in practice moves on our part to
reassure investors and in particular to overcome the
/difficulty
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Dd 0532000 400 M 5/78 HMSO Bracknell