HICK 040/3
RECEIVED IN REGISTRY HO. 51
SECRET
-
6 SEP 1982
DESK OFFICER INDEX
REGISTRY
Action Takan
33
Mr Giffard
Kara PS/Low Belstrand
Panola
cc PS/Lord Belstead
PS/PUS
Sir J Bullard
Sir I Sinclair
Mr Rushford
Mr Donald o/r
Mr Walden, Planning Staff Mr Thomson, FED
FUTURE OF HONG KONG: SPECIAL STUDY FOR THE PRIME MINISTER
1.
The
At her meeting with the Secretary of State on 28 July
the Prime Minister instructed that a study on the future of Hong
Kong should be prepared. The PUS's minute to Lord Belstead of
29 July provides the terms of reference for this study.
aim is to outline the problem, suggest possible solutions and,
in particular, to discuss the implications for HMG of any changes
which might be recommended.
2.
I now submit the study which has been prepared under
Lord Belstead's supervision. The main paper, after describing
the problem of confidence posed by the approach of 1997, examines
a number of options which are either impracticable or unacceptable
to HMG (eg independence or the probable Chinese preferred solution
of an autonomous Special Administrative Region of China with no
links to the UK). It stresses the difficulty of reconciling
the requirements for continued confidence in Hong Kong with the
Chinese position on sovereignty but concludes that an acceptable
solution would be a 'management contract' under which there were
full guarantees of continuing British administration in return
/for
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