CO537-(1262-1649) — Page 954

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CO 537/1649

THE NATIONAL ARCHIVES

Please note that this copy is supplied subject to the National Archives' terms and co

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restrictions. Further information is given in the enclosed Terms and conditions and that your use of it may be subject to copyright and Conditions of supply of National Archives' leaflet.

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00056

Territories.

9. It is difficult to see what grounds other than political expediency could be advanced in favour of the first alternative, and it would clearly be impossible to attempt to differentiate, on those grounds, between China's claim to the return of Hong Kong and the claims of other foreign governments to the return of British territory which once belonged to them. The recognition of China's claim in this manner would undoubtedly stimulate pressure from those other governments who would see in it a readiness on the part of His Majesty's Government to entertain similar claims. Other important factors to be considered in connexion with this alternative are (a) the Ministerial assurances respecting the future of Hong Kong which have been given in the past, and (b) the likelihood that once we indicated that we were prepared, in principle, to give up sovereignty we should not, in fact, be able to secure the conditions we considered to be necessary. In other words, it would be difficult to make any acceptance of the Chinese claim to sovereignty the subject of conditions. If however, we succeeded, there is the possibility that the transfer of sovereignty on those conditions would give rise to criticism in America and elsewhere.

10. On the other hand, an offer to review the lease of the New Territories on the lines suggested in paragraph 7(p), in accordance with the second alternative, would minimise the danger of (1) giving excuse for claims for the return of other British Colonial territories and (2) giving the Chinese grounds for demanding further concessions in the future in accordance with their usual technique.

11.

This offer represents the line we would propose to adopt in the event of negotiations being undertaken on our own initiative. It would probably be desirable to seek a clear understanding with the Chinese before the discussions opened (a) that the status of Hong Kong excluding the New Territories would be excluded from the discussions (b) that any agreement reached as the result of the discussions should be regarded as the final settlement of the so-called Hong Kong question.

12. If it were decided to leave the Chinese to take the initiative in raising the matter, the nature of our response would depend on the timing of the Chinese action. Were the Chinese Government to raise the matter in the near future, it would seem preferable to reply that, in view of the existing instability of political conditions in China, any discussion of the Hong Kong question appears to His Majesty's Government to be inopportune at the present time. If, however, the Chinese Government delayed their initiative until conditions in China became more settled, we should then hope to maintain a line similar to that indicated in paragraph 10, though it is realised that such an

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CO 537/1649

THE NATIONAL ARCHIVES

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restrictions. Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet. Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright