TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 142

DRAFT PAPER

SECRET

DSR 11C

FUTURE OF HONG KONG

AIM

To consider the implications of options for the future and the

range of British responses in the medium and long-term,

SUMMARY OF CURRENT POSITION

Hong Kong Island, 'Kowloon and New Territories (distinction).

Consistency of position of Chinese Governments since KMT.

Relations with PRC.

Low point in 1967. Current

Land lease question.

improvement. Land

Present Chinese Government's public position.

Deng Xiaoping's statement of 1979.

Makes early action unlikely although political change before

1997 not ruled out.

MEDIUM TERM

Early Chinese moves on final solution unlikely.

Developments possible in context of our effort to maintain

economic and social confidence eg over land leases.

-

Discussions on this question may produce Chinese demands

for British concessions on:

a) Sovereignty

b) Chinese Representation

c) Chinese participation in Hong Kong Administration.

/Sovereignty

SECRET

BERNO DJDA 113 2001 7/70 get