SECRET

-3-

DSR 11C

British Requirements

What concessions would we want from Chinese to justify meeting

them on sovereignty/representation without damaging confidence

in and outside Hong Kong.

Sovereignty very difficult

would require Chinese

acceptance of continuing British administration unlikely

to obtain.

Chinese representation without participation relatively easy.

But we should not agree without at least specific assurances

on land leases.

A

-

Participation probably most difficult problems of

confidence in Hong Kong, law and order, civil service, etc.

But limited right of consultation for Chinese representative

might be tradeable for hard assurances for future.

LONG-TERM

Satisfactory settlement on medium term issues could anticipate

many long-term problems.

But unlikely to emerge in 1980s.

More likely see continuing Chinese reservation of position.

Limiting factors for Chinese. Attitude to Soviet Union,

Taiwan

fore

Thereafter dependent on complexion of future Chinese

Government.

SECRET

/British interests

89280 Dd 532113 200M 2/79 $19

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