SECRET
-5-
PRACTICAL PROBLEMS
Any option will have major implications.
a) Legal.
Precedents.
DSR 11C
Problems of acknowledging sovereignty
and continuing administration (Panama Canal Treaty?)
Position of The Queen.
Earlier Chinese concessions
Wei Hai wei;
Kb) Political.
British Government's relationship to Hong
Kong administration especially if Chinese share in local
governemnt.
(c) Economic.
Viability of Hong Kong economy. Confidence may
depend on period of arrangement.
RMB/HK $ relationship.
Implications for British trade and investment.
d) Defence.
implications/Soviet Union/ Vietnam.
Relationship with Chinese. Foreign Policy
Intelligence
11.
#
"
problems.
(e) Citizenship problems. Chinese or British?
(f) Staffing.
Pensions. Job security, etc.
SECRET
89280 Du 532113 200M 2/79 SIS