TNAG-0945-FCO40-1164-Future-of-Hong-Kong-1980 — Page 71

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THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3(4) OF THE

PUBLIC RECORDS ACT 1958

a) Defence.

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Relationship with Chinese

DSR 11C

Foreign policy implications/Soviet Union/

Vietname

mbarr Science

رکا

Citizenship problems. Chinese or British? vf) Staffing.

Pensions. Job security, etc.

Gradual absorption : Hong Kong Guangdong Economic Cooperation

14. All the options (apart from a total take over) could

contain elements of 'blurring' of the border by increased

emphasis on special zones in Guangdong, Chinese communist

investment in Hong Kong, especially the New Territories,

and greater Chinese involvement in specific major projects,

eg the airport. If no Chinese moves on the politico/

constitutional front are made in the next few years (perhaps

the most likely course) we still need to clear our minds on

the advantages and disadvantages of eg

a) a Shenzhen special zone with an open border for

workers, etc - to Hong Kong

b) major communist-financied developments in the New

Territories (eg Tin Shui Wai)

c) significant Chinese investment in major projects.

If the Chinese plan is to feel their way towards a fusion

of Hong Kong with China at an unspecified date, will this

unsettle confidence in Hong Kong? What are the

implications for British administration?

Future Action

15.

No clear path ahead until we get signals from Chinese as

to what they want. History of what they have said so far is

at Annex A. First step will be a solution to problem of land

Could give a lead

leases.

This is explained in Annex B.

to long term future.

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