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Chinese,
felt obliged to withdraw (paragraphs 56-57 above). But
as a course of action likely to be actively opposed by
China it should not be adopted unless Chinese intransigence
or internal conditions compel us to do so. We can be sure
that the Chinese will not stand by and permit us to withdraw
without some interference. However, in circumstances where
the climate for a negotiated handover appears favourable
but the Chinese do not respond to our overtures, it is
conceivable that a declaration of intention to withdraw
coupled with an expressed readiness to talk about it might
bring the Chinese to the conference table. Much would depend
on whether our departure suited China's interest at that time.
measure of indirect control 70. In our view the acceptance of a Macao-type situation (the
second course) will not at any time provide an acceptable means
of withdrawal. On the face of it, it could have the merit of
frustrating the worst Chinese intentions; and, by a process
of gradual assimilation to Chinese control, it might help to
avoid the disruptive, possibly violent, consequences of a
sudden transfer of authority. But, as has been noted in
paragraph 14 of our Interim Report, it would put us entirely
in the hands of the Chinese, both as to the manner and timing
of our final departure; our bargaining position would be
compromised when it came to seeking an eventual settlement;
our people there would be hostages who would be used to
extract the maximum concessions, We would be faced by serious
economic and political repercussions in Hong Kong in a
any situation of dwindling confidence. Additionally our lack
of effective authority could raise acute political
difficulties in relation to Ministers' responsibilities
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