TNAG-0945-FCO40-1164-Future-of-Hong-Kong-1980 — Page 70

DSR 11C

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12. A compromise. Possible new political arrangement with

undertaking on Chinese sovereignty but special status for

Hong Kong probably outside RMB zone.

Likelihood.

Possible options:

a) Minimum change.

Acknowledge of Chinese soverignty

5 Y

4 Y

but continuing British administration on

present lines.

b) As a) but with small degree of Peking involvement in

government (a representative or Commissioner)

3. Y

c) Greater degree of Chinese involvement eg Chinese

commissioner with seat on EXCO.

2

Y d) Joint administration (Condominiium -joint

Commissioners)

ар

13.

NB all these may be for i) indefinite

•

ii) dtermined period.

termin

Implications for HMG of these options:

å) Legal. Precedents. Problems of acknowledging

sovereignty and continuing administration

(Panama Canal Treaty?). Position of

The Queen. Earlier Chinese concessions

Wei Hai wei.

b) Political.

British Government's relationship

to Hong Kong administration especially

if Chinese share in local government.

Economic.

Viability of Hong Kong economy. Confidence

may depend on period of arrangment.

RMB/HK $ relationship.

Implications for

British trade and investment. 89280 Dd 532113 200M 2/79 StS

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