TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 146

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PRACTICAL PROBLEMS

Any option will have major implications.

a) Legal.

Precedents.

DSR 11C

Problems of acknowledging sovereignty

and continuing administration (Panama Canal Treaty?)

Position of The Queen.

Earlier Chinese concessions

Wei Hai wei;

Kb) Political.

British Government's relationship to Hong

Kong administration especially if Chinese share in local

governemnt.

(c) Economic.

Viability of Hong Kong economy. Confidence may

depend on period of arrangement.

RMB/HK $ relationship.

Implications for British trade and investment.

d) Defence.

implications/Soviet Union/ Vietnam.

Relationship with Chinese. Foreign Policy

Intelligence

11.

#

"

problems.

(e) Citizenship problems. Chinese or British?

(f) Staffing.

Pensions. Job security, etc.

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89280 Du 532113 200M 2/79 SIS