public?
DSR 11C
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Territory's status (Option D) or statements by both sides that
Hong Kong is Chinese territory temporarily under British
administration with no intention by the Chinese to change
this for many years to come (Option C). The latter would
require a change in the treaty status of the Territory and
thus a technical renunciation of sovereignty by Her
Majesty's Government. The Chinese would almost certainly
expect a similar price for the first arrangement as well.
Prime Minister's Visit
10. The Prime Minister has provisionally earmarked September
1982 for a visit to China. It is important therefore that
she should be aware of the Hong Kong angle to this visit.
It would arouse expectations there that she will be seeking
a solution to the problem fo the future of Hong Kong. There
is considerable risk that the Chinese would not be prepared
to add to their earlier general assurances. This would bring
disillusionment in Hong Kong and itself affect confidence.
11. However, if the Chinese are prepared during the visit or
later on to have talks on Hong Kong, it is likely that one
major concession they would ask for would involve British
acknowledgement of their sovereignty over the Territory.
There are obvious political difficulties, but given that there
is no question of avoiding some change in 1997, this would in
our view be a price worth paying for the removal of the
uncertainty of 1997 and the maintenance of a form of British
administration for as long as possible beyond that time.
The departmental Legal Adviser has been consulted on the
legal aspects of such a concession. It would require an Act
of Parliament and some sort of agreement between the United
Kingdom and China.
While an important international agreement
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