TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 13

Structure

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Comments on draft paper: The Future of Hong Kong: Options and Problems

I agree that the paper needs to be separated into medium and long-term problems. But the two may well merge into one if to achieve our short-term goals we are forced to deal also with long-term issues.

2.

Some of the detail of the present paper could be dealt with in annexes as follows:

3.

(a)

(b)

Macau. We need to look closely at Macau and see what useful parallels might be drawn for Hong Kong. This section should cover history (briefly); the changed status of Macau in the Portuguese constitution; what was said during the discussions on establishing diplomatic relations; land tenure; citizenship; Chinese representation/influence; and, attempts to achieve more representative government. Since some of the material may not be available in London we could do a first draft here. Unless we hear to the contrary we will put this in hand.

Sovereignty.

Any long-term solution, and possibly

even a medium-term one, is likely to involve a concession by us on sovereignty (ie agreement in some form that Hong Kong as a whole either is, or ultimately is, Chinese territory although administered by Britain). We need to consider in detail what the effects of such a move would be on the following: legal authority for the Governor to administer the territory; international agreements covering Hong Kong (eg GATT, air services etc); and citizenship. We also need to know clearly what remedial measures would be required to deal with each of these problem

areas.

In addition to these suggested additions there would be the existing, or planned, annexes on representation, profit and loss account and alternative long-term solutions.

Present position etc

4.

the paper.

(a)

The following comments deal with paragraphs 2-6 of

Para 2. Length of leases is the most immediate, rather than the most important, problem arising from the distinction between the New Territories and the rest of the colony. Longer term the most important is that the Governor's authority to administer the New Territories (under the 1898 Order in Council), including the right to grant leases, expires in 1997.

/contd.

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