CONFIDENTIAL

BRIEFING FOR HMA WASHINGTON (DESIGNATE)

HONG KONG: GENERAL

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nationalisation.

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RECEIVER

ISTRY

3 0 JUL 1991

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44

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REGISTRY

INDEX

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Action Taken

UK/China relations over Hong Kong

1.

Under the Sino-British Joint Declaration on Hong Kong -of

1984, we are to restore Hong Kong to China on 30 June 1997,

when it will become a Special Administrative Region of the

PRC with a high degree of autonomy. Meanwhile we are

responsible for administering Hong Kong with the object of maintaining and preserving its economic prosperity and social stability until 1997. We wish to disengage (politically) with minimum costs. We want Hong Kong to

remain stable and prosperous after 1997 too.

2.

We have 4 main tasks to pursue over the next 6 years:

(a) to administer Hong Kong up to 1997 according to the British standards with which Parliament, Hong Kong and the International Business Community are familiar; preserving the morale of the public and disciplined services;to minimise the risk of a breakdown of public order or of the

banking systems;

(b) to complete the agenda of business, mainly in the

Joint Liaison Group, relating to a smooth transition. This

includes International Rights and obligations and Air Services Agreements.

(c) to promote the development of more self-reliant and

authoritative executive, legislative and judicial institutions to fill the gap as British power and authority

are withdrawn or eroded;

TELAGF/1

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CONFIDENTIAL

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