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fair to say that China's basic attitudes towards Hong Kong have remained constant, despite upheavals in Hong Kong such as flowed from the Cultural Revolution, and will probably continue to be constant; although one cannot dismiss altogether the possible effects of future developments in China nor the local situation in Hong Kong.
7. In discussing the Corporation's questions with Mr Faulkner, you might like to direct his attention to recent articles in the Hong Kong press, both independ- ent and pro-Communist, which have on the whole sought to reassure Hong Kong businessmen on the future of the colony and of their business activities. Dr Wilson has reported on these press articles in letters of 2 and 21 December to FED, copied to HK&GD. Such encouraging statements are, in fact, not new, as you will see from a report of 24 September 1975, from Dr Wilson's predecessor Mr Donald. Even the comments made by Li Ch'iang, China's Minister of Foreign Trade, in his recent article on China's policies on foreign trade (Red Flag No 10/ 1977), on the need to maintain supplies of commodities to Hong Kong and Macao, while they repeat the standard Chinese claim to those two. territories, are other- wise little lacking in hostility.
8. As background to some of the points discussed in my minute dealing with the Corporation's questions, I might add the following :
9.
The three treaties governing Hong Kong (Treaty of Nanking, Convention of Peking, Convention for the extension of Hong Kong). Such researches as I have made among the original documents dealing with these treaties suggest that, on the British side, strategic, political and administrative considerations were, as they arose, regarded as good grounds for proposing the arrangements that the treaties subsequently ratify. I have discovered some but not much sign among the historical papers of discussion of the legal aspects of the treaties, although the papers record that legal advice was tendered on the terms of government within the colony. In the Treaty of Nanking (1842), the relevant article (III), in explanation of the cession in perpetuity of the Island of Hong Kong, points to "it being obviously necessary and desirable that British subjects should have some port at which they may careen and refit their ships, when required, and keep stores for that purpose". The 1860 Convention of Peking at Article VI states that the Chinese Emperor agrees to cede Kowloon "with a view to the maintenance of law and order in and about the harbour of Hong Kong". The 1891 Convention on the extension of Hong Kong takes as its starting point the "proper defence and protection of the colony "for which an extension of territory is deemed necessary. While the original need to establish a port may have disappeared, the legal validity of the treaty enshrining that need and of the two treaties following on from it still stands in British eyes, so far as may be judged, and no other view appears to be officially accepted.
10. I am copying this minute and the accompanying one, without enclosures, also the letters from Mr Faulkner and the Export Development Corporation, to the Legal Advisers whose views should perhaps be sought before a reply is sent to Ottawa. I am also copying my minutes to David Wilson In Hong Kong, without enclosures.
30 January 1978
CC
: Mr Rushford (Legal Advisers) without enclosures
PID Whicheed pp. s Pares (Ms)
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Far Eastern Section
Research Department
Mr Wilson (Political Adviser, Hong Kong) without enclosures
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