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DSR 11C

So far these considerations

internal criticism by opponents.

have prevented them from giving more than general assurances

and they have emphasised the difference between the economic

and political aspects. On the other side is their undoubted

interest in maintaining stability and economic prosperity in

Hong Kong but it will require very strong evidence of a slide

in confidence for them to consider meeting our requirements,

In any event they are likely to make counter conditions over

the following range:

a) Formal rendition, ie British recognition of existing

Chinese sovereignty over the whole Hong Kong Territory.

No legal obstacle to this. Could be done by new Treaty

(unlikely to appeal to Chinese for historical reasons)

or in accordance with less formal arrangements,

provided that these gave a sound basis for continued

British Administration.

ment would be necessary.

Either way an Act of Parlia-

Strong indication that

Chinese might take this line from Deng Xiaoping's

conversation with Lord Carrington in April 1981.

Would be major political concession by HMG. Should

only be traded for strongest possible Chinese

assurances.

b) UK acknowledgement' (ie taking note) of Chinese

Similar to

statements on sovereignty over Hong Kong.

Taiwan formula. Chinese might accept but unlikely

to give very concrete guarantees in return.

c) A variant would be British acknowledgement that

sovereignty would 'revert', ie would be given up, when

the period of British Administration ended.

d) Chinese Official Representative in Hong Kong without

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