SECRET
-4-
DSR 11C
BRITISH INTERESTS
a) Problems for HMG if we stay in Hong Kong.
Potential friction point with China
relations with
Hong Kong Government demands of Hong Kong population on
-
eg immigration - defence liability the economic balance
sheet (in Annex).
b) Problems of overt preparation to leave Hong Kong.
Obligations to Hong Kong population - possible immigration
flood to UK law and order in transitional period
-
attitude of civil service,
T
Political problems of taking initiative of leaving outweigh
those of waiting for Chinese moves.
POSSIBLE CHINESE ACTION
Theoretically could range between forcible takeover and
agreement on continuing status quo. Both unlikely.
Chinese aim probably to allow gradual evolution towards
'special zone' for Hong Kong with acknowledgement of
Chinese sovereignty but separate economic status for
considerable period.
However still too early for British or Chinese Governments
to form firm conclusions on any options.
Range of possibilities discussed in Annex B.
SECRET
/Practical Problems
Bro no 532113 200M 2/79 915
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