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patch for Momis

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Mr Rushford

Legal Advisers

FUTURE OF HONG KONG

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RECEIVED IN REGISTRY NO. 51 27 NOV 1981

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I read with interest your minute of 5 November to Mr Friar on the legal implications of a renunciation of sovereignty over Hong Kong. I fully take your point about the political difficulties of putting any package to the Chinese. However, the problem as I see it is that any firm arrangement has got to be cleared with Peking at least to the extent that they will if necessary confirm that they have no objection to it. Thus, if we take steps to amend the 1898 Order in Council or some other means of extending land leases beyond 1997, we would have to be sure that the Chinese would not disavow this if they were questioned about it and Ministers would, if necessary, have to be able to say in Parliament that they understood that Peking was content.

2. I can also see the difficulties involved in giving up the sovereignty, but we have got to face the fact that, if we can bring the Chinese to look the problem in the face, some concession on sovereignty may be necessary.

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3. It would be very helpful to have your further views not merely on what legal means exist to effect a renunciation of sovereignty (as I understand it, an Act of Parliament) but also what devices would be necessary to preserve those features which would be required to maintain confidence and to keep Hong Kong going. I see these as:

a) the continued application of international treaties

signed by the UK;

b) a separate British-run administration, including law

and currency;

c) a form of British citizenship and provisions for

consular and other protection overseas;

d) (Probably) maintenance of a British military presence;

e) (Possibly) continuation of air services rights.

4. In order to preserve these if Hong Kong should cease to be part of Her Majesty's Dominions, would it be necessary for the Territory to require Protectorate status? (Your postscript to your minute of 5 November suggests that this might be helpful).

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