Page 148 SECRET

(i) UK withdrawal and incorporation in China ± 1997.

Page 148

Prospects: Remote unless the ideologues take over in Peking and disastrous if they do. Impossible to announce to population in Hong Kong and impossible to implement even gradually without agreement becoming obvious there. Grave political problems for

HMG.

(j) Forcible Chinese takeover ± 1997.

Prospects: Remote (as at (h) above) and particularly disadvantageous economically to China. Likely to reduce the immigration liability on the UK but a moral, diplomatic and political defeat of incalculable dimensions cf. Singapore 1941. Impossible to contemplate.

3

Page 148

Page 148

SECRET

Page 148

Share This Page