CONFIDENTIAL

4.

This Study was sent to the Secretary of State whose Private Office passed it on to us. I think we might send a brief acknowledgement to the author thanking him for his contribution to the debate, etc.

5.

Mark Schreiber, who is this week writing on Hong Kong for the Economist, has asked via News Department for our views on this Study and whether there are any particular points in it which we wish to draw to his attention. I think it would be improper to offer much in the way of comment except perhaps to say that it contains some sensible ideas, that the interests of the people of Hong Kong themselves must be at the forefront of our minds in negotiations with the Chinese and that there could of course be no question of concessions on sovereignty without certain assurances in return. The paper says little about the long term effects of any new arrangements to administer the Territory on Hong Kong's economy. For example, would investors have faith in an administration which, even with some British official involvement, was nonetheless answerable to Peking? Hong Kong will be looking, with its own interest in mind, for continuity and for as little change as possible. The scenario envisaged by Mr Lewis does not seem to guarantee such a situation.

W

ساعت

26 January 1983

W Morris

CONFIDENTIAL

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