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-4-
DSR 11C
Hong Kong.
Possible administrative models include a
Chinese 'Governor' with Hong Kong local Executive
Council, or a 'local' Governor. Some expatriate
(largely British) administrative and other personnel
might remain.
Prospects:
Possible. In recent overtures to Taiwan,
China made similar offers of autonomy (Might follown on
from (c)).
Implications for HMG: In principle acceptable. Local and
international confidence dependent on nature of guarantees
that China would allow separate status to continue.
Risks of flight of capital and immigration pressures in
transition period. Problem of Civil Service and Police.
Citizenship disputes.
Problems of continued employment
of UK staff in Hong Kong.
h) Special Economic Zone' status for Hong Kong with separate
currency but under central Chinese administration
Prospects: Less likely thatn (g). May be ultimate
Chinese aim but unlikely able to operate in foreseeable
future,
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/Implications
Dd 0532000 400 M 5/78 HMSO Bracknell