CONFIDENTIAL
provisions of the Joint Declaration and the Basic Law refer to private or non-governmental organisations, but they are not necessarily to be taken at their face value in regard to what they may well, and not unreasonably, regard as a quasi-governmental institution. Mr Davey's letter says the British Council's "mode of operation [in Hong Kong] is quite different from that of the Council in the PRC" and we should not ignore the possibility that the Chinese may seek to equate the British Council in Hong Kong with the British Council in the PRC at present. If this is so, the real issue may well be whether we should explore with the Chinese the basis on which the British Council will continue to operate in Hong Kong.
3 September 1990
Paul Fifoot
Legal Advisers
4 PFAAV
CONFIDENTIAL