Mr Morris
HK&G Department
SECRET
ник окол
763
I
A
attached 65A2
*EX
THE FUTURE OF HONG KONG
1.
PGMN | J
See(pil
You asked me today to consider the attached list of options. I doubt whether they are suitable for discussion between the Prime Minister and the Secretary of State. I am, moreover, by no means convinced that they are all either realistic or incapable of improvement, but you asked me so far as possible to leave them as they are. My comments therefore relate mainly to the sections on legal implications, and they are as follows.
Option I
2.
The description of the option does not match
the examples, in that the former refers to an understanding and the latter to an agreement. I understood you to say that the arrangements would be intended to be legally binding. The word "understanding" should therefore be replaced by "agreement".
3.
I suggest that you should amend the section headed "Legal Implications" to read:-
(206
"Since the well known Chinese view on Hong Kong" is to claim that China has sovereignty over the whole territory, this option would amount to a recognition by HMG of Chinese sovereignty. For the relinquishment of British sovereignty in this or any other way an Act of Parliament would be necessary.
4. I should perhaps mention that examples (b) and (c), although even more camouflaged than (a), would still probably amount to a recognition of Chinese sovereignty, because it is only the Chinese position which is said to be preserved and the only British interest mentioned would be one of administration. It would be possible to conceive a different option, whereby the agreement with the Chinese was without prejudice to the position of either side with regard to sovereignty.
However, since this would be contrary to paragraph 3 of the notes for the Secretary of State's meeting with the Prime Minister, attached to Mr McQuade's submission of 26 March I assume you would not wish to pursue the idea further.
SECRET
/Option 2