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belief that the Chinese would think we were guiding Hong Kong

towards independence and a fear that there would be a clash between

KNT and Communist supporters. Although the Chinese are, no doubt,

thinking only in terms of a situation where the ultimate fate of

Hong Kong as a Special Administrative Region is settled, there

are advantages in this for us. The more Hong Kong has

representative institutions, the more these institutions can share

the burden of representing the wishes of the people of Hong Kong

to Peking; and the more difficult it will be for Peking to

represent any failure of policy there as being a deliberate plot

by HMG.

Prospects

18. If all goes well, we have therefore the chance of

constructing a tolerable edifice on the basis of the Chinese plan.

But when that has been said we must face the possibility that the

best we can do will remain unacceptable to Hong Kong opinion and

unattractive to British opinion, particularly if that opinion is

unaware of the realistic alternative against which any final

package is to be judged. We have been compelled progressively

to lower our sights. We are already prepared to contemplate

abandoning any British link of authority with Hong Kong, seeking

only the best degree of autonomy for the territory we can achieve.

We must recognise, however, that this degree of autonomy may look

inadequate to us. We may not achieve all the assurances mentioned

in para 16 above. The Chinese may insist on definitions too

restrictive to meet our and Hong Kong's requirements, eg the

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13.

/possible

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