CONFIDENTIAL
Of the points outstanding, the most difficult is the question of personal inviolability of staff, family members and residences: the latter two are not even available under the Consular
Ordinance and so, in Hong Kong's view, are non-negotiable.
Argument
11.
For over five years the UK has been pressing the Commission to set up the office. Some of their demands are unreasonable; they are seeking greater privileges/immunities than those available to Consulates in Hong Kong. They have insufficiently grasped that Hong Kong is unique, and that the Hong Kong Government are operating under real constraints.
12.
But the budget for new Commission offices overseas is severely stretched: although physical preparations are far advanced, the Commission may pull out and allocate the funding
elsewhere.
13.
As for the situation post-1997, Hong Kong say that they can give no guarantees and are unwilling to raise the issue with the Chinese at this stage. The outcome of this is unpredictable, but could run contrary to the Commission's original objective of establishing an office which would retain its position as a concrete reminder of Hong Kong's economic autonomy.
14.
The establishment of the Office would have a real symbolic
value, in addition to the practical trade arguments in favour of the EC being represented. The UK has been the driving force all along. Having pushed matters to this stage, it would be worth encouraging Hong Kong to make a last attempt to agree such administrative measures as they can to approximate the privileges
and immunities requested by the Commission.
15. Negotiating via letters between the Governor and President
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CONFIDENTIAL
ASIA-PACIFIC/1207.HKsub