3.

SECRET 2

-

The detailed Annexes were drafted as follows:

G. Constitutional Position

H. External Relations

I. Currency and Finance

J. Defence and Internal Security

K. Citizenship, Nationality and

Immigration

L. Legal System

M. External Trade

N. Civil Aviation and Shipping

Mr Rushford

Mr Rushford

Bank of England/ Treasury

MOD (DS11)

Home Office/NTD

Mr Rushford

Department of Trade

Department of Trade/

MAED

Mr Rushford

0. New Territories Leases

(now only factual)

Some revisions have been made by the Study Group but more

improvements are needed. That on Currency and Finance was

telegraphed to Hong Kong and their suggestions have been

incorporated. The Hong Kong Political Adviser and the Attorney

General, who are in London, have also been involved in drafting

and revision. The changes will all need to be cleared with the

original drafters before final submission.

Next Steps

The paper should then be

4. When we have Lord Belstead's views on the drafts I shall

discuss any major changes with Sir P Cradock and the Governor

(the latter by secure telephone).

finalised and submitted to the Secretary of State on 27 August.

Subject to his comments it will go to the Prime Minister on

3 September.

Brip

R D Clift

24 August 1982

Hong Kong and General Department

SECRET

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