THE ORIGINAL HAS BEEN CLOSED FOR
40 YEARS UNDER FOL
EXEMPTION NO. 27 AS
16.
While we may think (b) impossible without
continuity in British administration, the Chinese have not said so. Indeed the most recent indications are that their ideas incline towards an autonomous zone under the Chinese flag, which would constitute a separate customs area with its own currency. It would maintain its existing administration, social and commercial systems, and be governed by the present public service and local inhabitants, including foreigners, but under whose ultimate authority is not clear, though the implication is Peking.
17.
It is only an opening bid, but if the authority were London and the legal complexities of reconciling this with Chinese sovereignty could be overcome, the arrangement might stand up.
If
the modernisation programme makes sufficient progress the position will eventually change, but meanwhile we should concentrate on making some form of British administrative authority, with the necessary legal cover, acceptable to the Chinese.
18.
This will be politically difficult for the Chinese, so we will have to be unequivocal about other political points of value to them and be prepared to:-
(a) accept the Chinese position that
Hong Kong is Chinese Territory under British administration;
(b) accept that the new arrangements for continued British responsibility for administration are interim
SECRUT
-
though for
Ano fixed.