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11.
(a)
(b)
(c)
(a)
This may be the only way of continuing for the time
being to look after the two million citizens of the
United Kingdom and Colonies who would otherwise pass
into the hands of the Communists.
The chance that if we hang on we might secure better
terms later.
We should continue to enjoy the advantages of Hong Kong
as a Far East base, as a China-watching post and as a
bargaining counter in negotiating Air Service Agreements
with other countries.
Provided the stability of the Colony is maintained it
will continue to be a substantial provider of sterling
for the reserves and of modest advantage to our balance
of payments generally.
On the other hand, there are arguments in support of an
orderly withdrawal in 1997, if this can be obtained.
(a) To remain voluntarily in Hong Kong would be to run
counter to one of the principles of post-war British
policy, that we should divest ourselves of our
remaining colonial responsibilities at a favourable
moment.
(b) By 1997 we should be fully integrated into the EEC.
Hong Kong would be an increasingly embarrassing
political anachronism.
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/(c)
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