SECRET -25-
DSR 11C
1
Х
currency,
having a 'tributary' relationship to Peking.
It is too early to forecast 16 years ahead, but two broad
lines of development stand out. These are described at
Annex E as option (e), maintenance of British administration
with an acceptance of Chinese sovereignty and some degree
of influence, having similarities to the Portuguese position
in Macao, and option (h), 'Special Municipality status.
preservation within China, but with the persecution of Hong Kong's legal
system, the Hong Kong dollar, the capitalist economy and an
expatriate share in the administration.
IMPLICATIONS FOR HMG
33. Any solution and the transition period leading to it
would pose some or all of the following major problems:
*
a) Citizenship and Immigration: The status of Hong Kong's
population would have to be settled with China and the
position of Citizens of the United Kingdom and Colonies
(CUKCs)(by then Citizens of the British Dependent
Territories (CBDTs)) agreed.
There are at least 2.6
million of them now; by 1990 the figure is likely to
exceed 3 million. The PRC does not recognise Hong Kong
British passports. But these provide a very important
psychological link for these people with the United
Kingdom. If this link were cut, it would be difficult
to maintain confidence.
Many of them would wish to
leave and would demand
/permission