TNAG-0568-FCO40-701-Planning-paper-on-Hong-Kong-1976 — Page 175

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

香港總督

督府

SECRET

GOVERNMENT HOUSE

HONG KONG. I'

12th February 1976

Sir,

THE FUTURE OF HONG KONG

Introduction

Since the exchange of Ambassadors in 1972 Anglo-Chinese relations have steadily improved, and the decision to re-equip the Chinese airforce with Spey engines proves that the Chinese Government counts on their remaining good for a considerable time. Within this overall picture friction over Hong Kong has ceased, and relations between the Hong Kong Government and Chinese officials in Hong Kong have evolved to a point at which they are more satisfactory than they have ever been.

2.

Members of the present Chinese leadership accept that the status quo is valuable to China and have said in terms that they are in no

hurry to disturb it, while reserving the right to raise the issue when the time is ripe Their immediate

等零

successors are likely to take a similar view.

3.

much a going concern.

to the United Kingdom;

Hong Kong is at present very It is no diplomatic liability and with the conclusion of

the new Defence Costs Agreement is no financial liability either. It is of commercial value in itself and as a base for sales in the Pacific and China areas. There is no reason why things should not continue like this for about 10 years. But by about 1985 an understanding explicit or implicit must be reached with China about what will happen to Hong Kong after the Lease of the New Territories expires in 1997, or the Colony will start to fade as lack of assurance about the future causes investment and employment to drop. If this process is once allowed to start, the Colony could rapidly go down hill to a point at which it became valueless to either the United Kingdom or China, and

THE RIGHT HONOURABLE

JAMES CALLAGHAN, M.P.

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