TNAG-0616-FCO40-764-Policy-of-UK-on-status-of-Hong-Kong-1977 — Page 182

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is unwilling to listen and the Peking Government is unlikely to wish to respond to any overture for some years to come, and probably not until they have to. Meanwhile, I am in no way convinced that it is in HMG's interests nowto negotiate Hong Kong's future. I consider that, under present circumstances, neither a Labour nor a Conservative Government could negotiate with the intention of seeing Hong Kong return to China after 1997. We would have to wish to keep it. If an attempt to negotiate its retention after 1997 were successful, we might, as a result, be left with a Colony which time turned into even more of an albatross than the place is at present. In the interim, whether or not this attempt was successful but especially if it was not if it became publicly known that the UK had wished to negotiate, this fact could very easily have an adverse effect on Hong Kong's economy and so precipitate the very event which any negotiations would be designed to avoid.

4.

In my view therefore matters are best left to lie.

m

T J David

Hong Kong & General Department

17 May 1977

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