SECRET
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DSR 11C
e) Continuance of de facto status quo with legal changes.
UK would recognise Chinese Sovereignty (formal
rendition) in return for acceptance of continuing
British administration (on Macao model).
Prospects:"
Possible. Might reconcile Chinese national
and pragmatic requirements.
Implications for HMG:
Effect on confidence would
depend on duration of British 'tenancy.
Legal problems
possibly
would include basis for administration and /citizenship
status of Hong Kong residents.
SECRET
/f)
Dd 0532000 400 M 578 HMSO Bracknell