}
DSR 11C
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that the Chinese would seek in return concessions on our part.
to enhance their political and legal position. They might not
press such proposals too far, recognising the need to maintain
confidence within the Territory and among potential outside
investors. But they could look for concessions in
following areas:
a) Sovereignty.
The Chinese might seek a change in our
attitude to sovereignty over the whole Territory.
This could take various forms, ranging from a
confidential assurance on our part that we recognised
Chinese residual sovereignty to a public statement
to that effect. China's treatment of the sovereignty
issue is discussed at Annex A.
b) Chinese Representative in Hong Kong. The Chinese
Government have made proposals for such a
representative on a number of occasions, the latest
in 1979. (See Annex B). They have not been specific
as to his role, though they would presumably expect
him to take over at least the non-journalistic
functions at present performed by the New China
News Agency (NCNA). So far HMG have taken the line
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/that
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