Alternative 'A'
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(e) We should be committed to maintaining economically
(a)
a territory which could well become a financial
liability in the future, particularly after our
entry into the EEC, and which could be faced with
enormous social problems by 1997. We should
also be involved in a continuing substantial
defence commitment.
The problem of Hong Kong would continue to be
a severely distorting factor in our relations
with China.
12. It will be realised that the choice as to the course
which should be adopted does not lie solely in HMG's hands.
Nevertheless because of the disagreeable prospect if we are
unable to reach some agreement with the Chinese on the future
of the Colony and because of the distressing circumstances
involved for us if we were forced to leave Hong Kong under
humiliating conditions, at the appropriate moment we should
be prepared to enter into informal soundings with the Chinese
ese soundings should be conducted through
Government.
diplomatic channels in strictest secrecy, which the Chinese
would be likely to respect. Our first objective should
be to try for a solution on the lines of 4(c)(ii) or (iii) In
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