TNAG-0580-FCO40-713-UK-policy-on-status-of-Hong-Kong-1976 — Page 88

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CONFIDENTIAL

31ST SESSION OF THE UN GENERAL ASSEMBLY

DEPENDENT TERRITORIES:

HONG KONG

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General

1. Hong Kong, with a population of £43 million is by far the most populous UK dependent territory. It consists of three areas: Hong Kong Island, which China ceded to Britain in perpetuity in 1842; Kowloon and Stonecutters Island which were similarly ceded in 1860; and the New Territories which China leased to Britain for 99 years in 1898.

2. In Chinese eyes these Treaties were amongst the "unequal Treaties" forced on China during a period of internal weakness, and the Chinese have said publicly that Hong Kong is part of Chinese territory occupied by the British authorities but that the question is one to be settled "in an appropriate way when the conditions are ripe". It seems clear that the Chinese do not wish to disturb the status quo, the practical value of

Hong Kong outweighing nationalist and ideological considerations.

In particular, Hong Kong provides China with a valuable source of foreign exchange from invisible earnings.

Constitutional Changes in 1976

The possibility of introducing an elected form of government is ruled out by Chinese opposition, to any move which could be construed as setting Hong Kong on the road to internal self- government and independence; and by conflicting political allegiances (to the communists and the 'Kuomintang) within the Chinese population. The Chinese authorities are known to be highly sensitive to the risk that any form of election to the Legislative Council might lead to the success of KMT candidates.

CONFIDENTIAL

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