TNAG-0378-FCO40-424-UK-policy-on-the-future-of-Hong-Kong-after-1997-1973 — Page 20

SECRET

solution in Gibraltar.

15. Such a solution could also have repercussions on HNG's

whole policy towards the remaining Dependent Territories and

particularly on the Falkland Islands and Belize disputes. I

am therefore submitting through Mr Larmour.

Tactics

16. If an eventual solution on these lines were acceptable

to Ministers a paper on the lines I attach could not be ready

for transmission on 23 August. It would be desirable to obtain

Sir J Russell's, the Governor, Gibraltar's and perhaps subsequently

Sir J Hassan's views on it before putting it forward for

collective Ministerial consideration.

I have therefore introduced

into the comments on the Spanish proposals suggestions that

alternative ways of achieving a transfer of sovereignty exist.

These are designed to encourage the Spaniards to ask what we

have in mind; our response would be that the Secretary of State

should have counter-proposals to put forward in New York. We

could not plausibly, in my view, delay action much beyond them.

17. If Sir J Hassan refused to contemplate a solution on these

lines, Ministers would have to reconsider how far they were

willing to overrule him and how far our ideas should be

modified in the light of the probable consequences for Anglo-

Spanish relations.

Recommendations

13.

I recommend:

(a) that Governor, Gibraltar be instructed, subject to any

comments which he and Sir J Russell may have, to show

SECRET

/our