است استفسه

DSR 11C

Hong Kong.

SECRET

-5-

Possible administrative models include a

Chinese 'Governor' with Hong Kong local Executive

Council, or a 'local' Governor. Some expatriate

(largely British) administrative and other personnel

might remain.

Prospects:

Possible. In recent overtures to Taiwan,

China made similar offers of autonomy (Might follown on

from (c)).

Implications for HMG:

Local and

international confidence dependent on nature of guarantees

that China would allow separate status to continue. High

Risks of flight of capital and immigration pressures in

LE

i)

transition period. Problem of Civil Service and Police.

Citizenship disputes.

Problems of continued employment

of UK staff in Hong Kong.

'Special Economic Zone' status for Hong Kong with separate

currency but under central Chinese administration

Prospects:

Less likely than (g). May be ultimate

yet to make success of own 'special zones'. Chinese aim but /Unlikely able to operate in foreseeable

future,

SECRET

/Implications

Dd 0532000 400 M 5/78 HMSO Bracknell

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