Mr Burrows
Legal Advisers
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Rino 24/0
FUTURE OF HONG KONG: LEGAL IMPLICATIONS
1.
comments:
Thank you for your minute of 7 June. I have the following
a) Your paragraphs 2 and 3: Foreign Jurisdiction Acts.
It sounds as though they would not be appropriate now. Are we thus left only with an Act of Parliament or an Order in Council?
b) Your paragraph 4: Powers of Administration.
See369
We all recognise that a defined list would be extremely difficult. But we will need to be clear in our minds at least what we mean and be ready to anser Chinese questions about it and questions in Parliament.
c) Your paragraph 5: 'Lease-Back'.
Of course
The problem here is partly one of terminology. Sir P Cradock is right that 'any option in which British administration continues involves giving authority in Chinese territory to a foreign power', But I believe that it matters politically how this is done. Thus, for historical and emotional reasons, I should expect the Chinese to reject a 'lease' which was described as such. It smacks too much of the unequal treaty which they have already denounced. (Indeed I am not sure that it would be politic to go for this option from our own point of view, given the criticism which lease-back proposals for the Falklands have aroused here). On the other hand your proposed agreement involving recognition of sovereignty in return for continuing British administration is exactly the solution which we, at official, level, would favour. This is what Option D would amount to in practice. I suspect that the distinction between all solutions of this sort is artificial. The key question will be whether the Chinese, want significantly more than just recognition of sovereignty. As for the 'rent' idea, you may be interested to see the attached correspondence (my letter of 30 March to Mr McLaren and his reply of 14 June. We still await Peking's comments). As Mr McLaren says, these are preliminary thoughts only, but there has already been mention by the Chinese of possible loans linked to an arrangement over the future and it could be that the Chinese are considering the possibility of some other 'rent' or financial arrangement. (Any thoughts you may have on this would be welcome)
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