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A public agreement that the Treaties on Hong Kong were not applicable but that British administration could continue beyond 1997 (C) would be satisfactory. A third possibility is (F) removal, with Chinese agreement, of the limit in the 1898 Order in Council to our administration in the New Territories beyond 1997. These three would almost certainly involve the concession of recognition of Chinese sovereignty over Hong Kong and thus a major change in its status that would have to be reflected in UK law.
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13. Both in monitoring Hong Kong and Chinese opinion, and even, in certain circumstances, in discussing solutions, the option of using non-official intermediaries with Peking needs to be borne in mind. There are a number of potential 'messengers' mainly senior Hong Kong Chinese businessmen with close contacts in Peking, who might be used. But in so delicate a matter the question of control is very important. A message loosely delivered could give a totally false impression and defeat its own object. Probably therefore, such intermediaries should only be used, and that very sparingly, as one means of keeping our lines open to Peking and estimating the direction of movement of thinking there.
Hong Kong and General Department Foreign and Commonwealth Office
1 March 1982
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