SECRET

indefinite period thereafter, with notice required of any

change.

Legal Implication:

Amendment to the Order in Council.

Act of Parliament and detailed agreement between HMG and

PRC if and when notice is given by the PRC to take over

administration. (See Annex C)

4. A formal agreement whereby HMG relinquishes sovereignty

over Hong Kong but continues to administer the whole

Territory, probably with some concessions in the shape of

consultation with China on major issues of common concern.

Such an agreement would have to spell out a number of

incidental and consequential matters.

Legal Implication:

Detailed Agreement. Act of Parliament.

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