Major risks such as:

(a)

(b)

(c)

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8.

external threats from Soviet moves against China;

controllable only by British garrison and

reinforcements from UK,

civil disorder in China spilling over into Hong Kong,

controllable only by British garrison and reinforce-

ments from UK,

moves to declare independence or to defy the Sino-

British arrangements for Hong Kong,

unlikely because of the repeated threats by China to resume sovereignty if need be,

controllable by dismissal of the Governor, setting

aside the constitution and resort to direct rule

by HMG's appointed Governor and an augmented

garrison.

Conclusion:

(i)

The merits of the proposals, and the political advantage of anticipating China's plan for the SAR by building up the political base of Hong Kong's elected political leadership, are sufficiently weighty to justify acceptance of the risks. The minor risks identified are of real concern. The power and influence of Britain and China will greatly circumscribe the powers of government proposed. The pragmatic and realistic character of the Chinese people will restrain maverick, foolish, ill-considered action.

realities will induce caution.

Political

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