SECRET

Hong Kong as a Special Administrative Region (SAR)

19. If Hong Kong became an SAR, it could again continue

In such a

to be a Port of Registry for British ships so long as

there was continuing UK administration.

situation, however, the establishment of a separate Hong

Kong registry with a separate Hong Kong flag could be

envisaged as an expression of increased local autonomy.

This would not create any difficulties for HMG.

10

SECRET

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HONG KONG STUDY

ANNEX O

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