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DSR 11C

(ii)

Problems for HMG. None: the Chinese already claim

sovereignty. A statement from them that the lease

should be ignored would however open the way for us to

get their agreement to legal measures that would align

the practical reality in Hong Kong with Chinese stated

views.

(iii) Effect.

Would be too vague to have significant

effect, even if coupled with (A) above, unless coupled

with agreement to action by HMG to take continuing powers

of administration beyond 1997.

(i)

C) Joint or parallel statements by Chinese and HMG that

treaties no longer applicable; Hong Kong Chinese

territory temporarily under British administration

Likelihood. Not easy, as it requires public

approval by the Chinese of British administration.

Nevertheless, generally accords with their present

tacit position, and involves significant public

renunciation by HMG. (ii) Problems for HMG.

Recognition of Chinese sovereignty

over Hong Kong requires an Act of Parliament divesting UK

of sovereignty. Implications of abrogation. Legal

status of Hong Kong, particularly in international

agreements, would need to be clarified. Need for

legislation on land leases and continuing powers of

administration which would have to be of indeterminate

(Automatically renewable periodic leases

length.

possible.)

Might be coupled with demand for use of

Chinese flag (cf. stated policy towards Taiwan).

(iii) Effect. Impact would depend on assumptions about

how long the arrangement was expected to last. Initial

effect might be to produce uncertainty, unless Chinese

made it clear that they expected the arrangement to last

at least 15 years. But confidence would grow over time,

as it would be up to the Chinese to foster it if they

wished their benefits from Hong Kong to continue.

should eventually produce a Macao-like reliance on

provided the Chinese acquiesced in

traditional tenure

www.

changes in British law which made this possible.

It

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