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7

DSR 11C

Nevertheless, generally accords with their present

tacit position, and involves significant public

renunciation by HMG.

(ii) Problems for HMG.

Recognition of Chinese

D)

sovereignty over Hong Kong requires an Act of Parliamer

divesting UK of sovereignty.

Implications of abrogatic

Legal status of Hong Kong, particularly in internationa

agreements, would need to be clarified. Need for

legislation on land leases and continuing powers of

administration which would have to be of indeterminate

length. (Automatically renewable periodic leases

possible.) Might be coupled with demand for use of

Chinese flag (cf. stated policy towards Taiwan).

(iii) Effect. Impact would depend on assumptions abou

how long the arrangement was expected to last. Initial

effect might be to produce uncertainty, unless Chinese

made it clear that they expected the arrangement to las

at least 15 years. But confidence would grow over time

as it would be up to the Chinese to foster it if they

wishes their benefits from Hong Kong to continue. It

should eventually produce a Macao-like reliance on

traditional tenure.

Declaration by the Chinese that change would only occur

a possible momorum perod would ve

this defined as 15 years 15 years.

with adequate warning;

(i)

Likelihood.

Slightly more difficult than (C),

as Chinese would be tying themselves to a specific peri

Becomes harder if selected period stretches beyond 1997

But Zhou Enlai did say to Sir Alec Douglas-Home in 1972

that Chinese would take no surprise action over Hong Ko

Might be possibel to build on this. Private hints on

length of warning easier for the Chinese than public

statements.

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