TNAG-0378-FCO40-424-UK-policy-on-the-future-of-Hong-Kong-after-1997-1973 — Page 57

DOP(73)4

18 January 1973

with 4

master

сор.

CABINET

DEFENCE AND OVERSEA POLICY COMMITTEE

THE FUTURE OF HONG KONG

Memorandum by the Secretary of State for Foreign

and Commonwealth Affairs

1.

In December 1971, my colleagues agreed with the conclusions of DOP(71)83 that our policy for Hong Kong should be to maintain the status quo and to take preliminary informal soundings with the Chinese Government nearer 1997, with a view to:

2.

(i)

securing an indication from the Chinese that they will not interfere with the present arrangements after 1997; or

(ii) securing an indication that they will agree to

negotiate new terms for a lease; or, failing either of these;

(iii) negotiating an orderly withdrawal in 1997.

During 1972 the Chinese Government have reaffirmed that:

(a) they regard Hong Kong as an integral part of China;

(b) they are nevertheless in no hurry to recover the territory and have specifically stated that they are "satisfied with the status quo";

(c) they will not take surprise action; and

(a)

in due time there will have to be negotiations.

The first of these reassertions has been made publicly in the United Nations and elsewhere. The last three were made on separate occasions to both me and to Mr Anthony Royle by the Chinese Prime Minister, the Minister for Foreign Affairs, the Vice Minister for Foreign Affairs and Senior Foreign Ministry officials during our visits to Peking in June and November. They confirm the assessment made in DOP(71)83 and strengthen the conclusions of that paper.

3. In terms of British interest, the arguments still come down in favour of retaining Hong Kong. As an economically developed dependency, Hong Kong's interests can clash with those of our own

/industry