2

HONG KONG STUDY

ANNEX F

+

SECRET ?

OPTIONS FOR SOLUTION AND LEGISLATIVE REQUIREMENTS

A.

Impracticable Options

1. The options theoretically available, but likely to

be unnegotiable or otherwise impracticable, are:-

(a) Doing Nothing

This would involve sitting tight for as

long as possible and refusing to contemplate

any concession on Chinese claims to

sovereignty until we were obliged by circum-

stances to do so.

i) Likely Chinese Attitude

The Chinese now seem to be aiming for early agreement on the transfer of sovereignty and control in or before 1997, and on transitorial arrangements designed to preserve the prosperity and stability of Hong Kong. They would be strongly opposed to a UK policy of sitting tight.

ii) Acceptability for HMG

The risks involved in hanging on for as long as possible would be unacceptable for HMG in anything but the short term. There would be a slide of confidence in the colony and the UK's position could become untenable.

SECRET

/ iii)

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