TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 111

THE LONG-TERM

18.

SECRET

-15-

DSR 11C

Consideration of the Medium Term has assumed a need for

HMG to maintain confidence in its intention to continue the

administration of Hong Kong. Beyond 1985, however, it is

necessary to discuss whether the United Kingdom should aim

to remain in the Territory at all. Annex B examines the

economic advantages and disadvantages of the United Kingdom/

Hong Kong connection. The balance is about even. The

political considerations are, however, more important.

The problems for HMG in staying put and in taking the

initiative to leave Hong Kong are examined below.

Remaining in Hong Kong

19. The administration of Hong Kong lays HMG open to

criticism:

a) from Hong Kong itself. Since full democracy is

impossible, Ministers have to answer petitions and

complaints covering the whole range of government.

There are also risks of disagreement between HMG

and the Government of Hong Kong itself, for instance

over trade policy. Moreover, so long as we

are

SECRET

/responsible

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