(c)

(a)

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3.

the proposal would take effect under the umbrella of a Sino-British agreement determining Hong Kong's

political future as an SAR under Chinese sovereignty

within the same decade: this would create

powerful and psychological constraints that would

operate upon the freedom of action of the proposed

institutions of Government;

furthermore there would also be established at about

the same time a Joint Sino-British Group in which the Chinese would be expecting to participate in the formulation of the policies of the Hong Kong

Government and to prepare the way for the creation

of the SAR;

Implications of this proposal:

implicet a explicit parity explain t (ie

movisin)

1.

a see cession

Not CBF

2.

Constitutional links with Britain as sovereign would

be preserved by law. Under amended Letters Patent

or an Order-in-Council, HMG's reserved rights would

be spelt out (these would include the right to

dismiss the Governor). Powers in respect of

external affairs and defence would be reserved

to HMG. The limits of the powers devolved to

the newly constituted institutions of government

would be clearly specified. It would be implicit

that if in extreme circumstances the need to intervene

should arise, the powers of government could be

withdrawn from the proposed institutions by a further Order-in-Council, and placed in the hands of others

such as (temporarily) CBF, a newly appointed Governor or the British representative in the Joint

Group.

There would in any event be a need for Britain to retain a garrison, at lease for some time after

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....

.

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