TNAG-0849-FCO40-1059-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 116

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9.

(b)

(c)

(a)

as the official Chinese representative for

all practical purposes.

It remains to be

seen how hard the Chinese will press.

Sovereignty.

The Chinese could seek a public declaration by the British Government to the effect that Hong Kong is Chinese territory temporarily occupied by Britain.

Specially favourable treatment and facilities for Chinese-owned organisations. (There are some signs of this already, eg Chinese organisations have

sought, and in some cases have been granted, sites in Hong Kong at below market prices).

A demand that Hong Kong should sever all links, including economic links with the Soviet Union and its allies (Hong Kong provides limited port and repair facilities for Soviet ships, and there is some trade, particularly with Eastern European countries).

(e) Pressure for Hong Kong to reduce its extensive

economic and commercial relations with Taiwan.

This is conceivable in certain circumstances

(eg if the Nationalists abandoned their claim

to the Government of China and sought to establish an independent Taiwan).

The above list is illustrative, not exhaustive. Some of the

issues mentioned are more likely to be raised, or pressed, than others. They would have to be dealt with in the light of circumstances at the

time. In considering them the guiding principle will be to avoid

making concessions which would raise doubts about the British

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/commitment