POINTS OF VITAL
MSPTANCE IN THE SEARCH TO A SOLUTION
In the feah for a set factory arrangement for the political future of Hongkong, it is essential to take the following
points into account:
(i) Conciliation
...
As the legal point concerning the sovereignty of Hongkong Island and South Kowloon is of paramount importance, if undue emphasis is put either on the position of Peking or on the
position of London, the result can only be a confrontation
which is detrimental to the interests of all parties concerned.
Hence the only way to pursue the matter is to seek a path on
which to move gradually towards solution in a conciliatory
spirit. On the one hand, Great Britain should recognize
the right on the part of China to claim sovereignty over the whole of Hongkong and show willingness, at the opportune moment, to negotiate with the Chinese Government on the matter.
On the other, China ought to recognize that it is of mutual
benefit and in keeping with the interests and wishes of the
Hongkong inhabitants for Hongkong to remain, for a consider-
able period of time, under British rule.
(ii) Stability
While recognizing that China should eventually regain the sovereignty of the whole of Hongkong, we must bear in mind
that in say the next thirty to fifty years, a stable and prosperous Hongkong will have a crucial role in the moderni- zation programme of China, a role only Hongkong is apt to
play. Thus, should an announcement be made too soon that the sovereignty of Hongkong will revert to China, this would most probably create great instability. There would
be an outflow of foreign and local capital as well as