A/-

CONFIDENTIAL

Mr Ricketts, HKD

Replied

HKA 406/1

RECEIVED IN BEGISTRY

14 JAN 1993

REGISTRY

DESK OFFICER INDEX

PA

Action Taken

From :

~Hunt

Date

4 January 1993

STATUS OF HONG KONG GOVERNMENT OFFICE POST 1997

1.

longer.

2.

I am sorry I have delayed these papers a little

I share your views. It seems to me that the key points for the Hong Kong Government Office are two-fold:

He office will

What relationship they want with the Chinese Embassy after 1997. Presumably they want maximum autonomy and minimum scope for direction or interference from Peking. This seems to me to rule out option II, which would moreover run counter to the framework of precedent which we have tried to establish in the Joint Declaration and in the format of the other Hong Kong Economic and Trade Offices;

The key

What the functions of the Office will be. here is access to government departments on the economic and trade issues where Hong Kong will have autonomy.

3. I am sure that access will not be a problem, whatever the precise status of the Hong Kong Government Office. Hong Kong will remain an important trade partner and interlocutor on international trade matters. There will moreover be a huge amount of sympathy for Hong Kong, whatever Government is in power after 1997. The question of privileges and immunities strikes me as a distinctly secondary issue. It is quite important for the individuals concerned, principally as a matter of status, and it also saves some money: but that is all.

4.

In the light of these considerations I agree with you that option I is the best bet. It has the advantages of maximum autonomy and minimum change. Like you, I do not understand observation (d) in the paper about recognition. I am sure Ministers would take a great deal of persuading to go the statutory route (ie option III). Quite apart from their habitual reluctance to contemplate legislation, there is a more fundamental point that special legislation would look to the Chinese like a clear attempt to maintain the UK's special relationship with Hong Kong at the expense of Chinese sovereignty.

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