•CONCLUSION.

HONG KONG BRIEFING:

CONCLUSION

1.

Negotiating hard for Hong Kong's essential interests.

Not prepared to commend to Parliament or Hong Kong an

agreement which does not meet these. Better no agreement

than a bad agreement. But very much better for HK's stability/prosperity if we can secure agreement with

China rather than confrontation.

2. Must negotiate on basis of realism. Has become apparent that independence, extension of lease, continuation of British administration however attractive in theory

simply not attainable. Surely right then to explore

whether HK's future can be assured through autonomy/ continuity option.

3.

These reinforce our

Well aware of anxieties in HK.

concern to get an agreement which records arrangements

after 1997 as fully and clearly as possible.

4. UK policy decided in closest consultation with Prime

Minister. Fortunately, we have a first class negotiating

team all of whom know HK and China very well. Also some

impressive leaders emerging in HK. And a better relationship

with Peking than ever before. I am sure that on this basis it should be possible to find an agreement which is

satisfactory to HK, China and Parliament.

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