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representative in Hong Kong;
c) a degree of Chinese Government participation in the
administration of Hong Kong.
4. (a) would raise legal and major political difficulties.
The
former would be soluble but the risk of damaging confidence in
Hong Kong would be so great that we could only make a statement
on Chinese sovereignty in return for a specific undertaking which
would maintain the future of Hong Kong, eg on continuing British
It would be very difficult to negotiate.
administration.
5. (b) is legally feasible.
Were the representative a liaison
official with quasi-diplomatic functions, his appointment would
not raise too many problems.
But we should still not make such
a concession without as specific an undertaking as possible from
the Chinese, eg on land leases.
6: (c) would raise serious problems, whether Chinese participation
were channelled through their representative in Hong Kong or in
another form. It would lead to disagreements, eg over the control
and use of the security forces, law and order and immigration.
We should not accept anything more than an undertaking on discussion
with the Chinese on matters of legitimate interest to them; we
should seek concessions in return.
LONG-TERM
7. Should HMG itself contemplate withdrawal?
Although the economic
pros and cons of our presence are about even, there are serious
problems for any British government both in retaining responsibility
for Hong Kong and in taking the initiative to leave.
Remaining in Hong Kong
8. a) HMG is accountable in Hong Kong and in Parliament for
the conduct of administration in the Territory;
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/b)