TNAG-0945-FCO40-1164-Future-of-Hong-Kong-1980 — Page 8

SECRET

Dr D C Wilson

Political Adviser

Government Secretariat

HONG KONG

HICKOHOLI RECEIVED IN REGISTRY NO. 51 0 6 JAN1981

DESK GENER

INDEX

ملكي

$81

REGISTRY

ction Taken

HKK 040/1

22 December 1980

164

HONG KONG: POSSIBLE IMPLICATIONS OF THE FALKLAND ISLANDS LEASEBACK OPTION

1590

Thank you for your letter of 16 December requesting papers on the leaseback option for the Falkland Islands.

1.

2.

The attached papers will give you some idea of the genesis of the leaseback option. It has not, in fact, been gone into with any great thoroughness and the full legal implications have been touched on but lightly. We were not, in fact, consulted about the implications for Hong Kong, but SAmD have been made fully aware of our interests. The possibility of Argentine official representation is one aspect which would particularly concern us. However, I am assured that there is little prospect of concluding an arrangement with the Argentines on these terms, as the Islanders themselves have a right of veto. The Island Council meets on 6 January and is confidently expected to toss out any suggestion of Argentine sovereignty. Unless sufficient persuasion is brought to bear, that will be that.

cc:

SAmD (without enclosure)

SECRET

P Morrice

Hong Kong & General Department