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10.
Prime Minister's Visit.
The Prime Minister has provisionally earmarked September 1982 for a visit to China. It is important that
she should be aware of the Hong Kong angle to this visit. There
would be expectations there that she will be seeking a solution to
the problem of the future of Hong Kong. There is considerable
risk that the Chinese would not be prepared to add to their
earlier general assurances. This would bring disillusionment in
Hong Kong and itself affect confidence.
11.
Sovereignty. However, if the Chinese are prepared during
the visit or later on to have talks on Hong Kong, it is likely that
one major concession they would ask for would be British acknowledge-
ment of Chinese sovereignty over the Territory. There are obvious
political difficulties, including implications for other Dependent
Territories, notably the Falkland Islands and Gibraltar.
12. In the case of the Falkland Islands, a lease-back in return
for acknowledgement of Argentine sovereignty has already been
canvassed. On Gibraltar, the Spaniards have so far been demanding
little more than British acknowledgement of their sovereignty although they would see the next step as autonomy under the
Spanish Constitution. The whole idea is anathema to the vast majority of Gibraltarians, who rely on the British pledge that they will not pass under the sovereignty of another State against their freely and democratically expressed wishes. Any move over Hong Kong sovereignty would be watched carefully by the Spanish Government and could thus further complicate HMG's already tricky task in
handling negotiations with them.
13.
There are
These problems should, however, be containable. very important differences between the situation in Hong Kong and Gibraltar. In the first place, there is no question of avoiding change of some sort in 1997 as regards the New Territories. Moreover, there is no specific pledge for Hong Kong comparable
to that made to the Gibraltarians. It is, of course, true that
successive British Governments have reaffirmed their commitment to the people of Hong Kong but the nature of this has not been made clear. This is because of the realities of our position in Hong Kong which would make any undertaking to defend the Territory
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