TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 147

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POSSIBLE OPTIONS FOR LONG-TERM SOLUTION

ANNEX B

DSR 11C

Continuing British Administration under Present Arrangements

a) With explicit Chinese agreement;

b) with tacit Chinese agreement.

Explicit Chinese statement unlikely.

Legal basis for British

rule uncertain without successor to 1898 Treaty.

Joint Administration.

Probably unworkable. Problems of

confidence. Unlikely any UK Government would agree.

Separate Autonomous Administration within Chinese State but

with Separate Economic System and Currency.

Possibilities include PRC Governor or local man appointed by

Peking with continuing Hong Kong Chinese administration.

Possible use of expatriate administrators.

maintaining confidence.

Problem of

Formal Rendition to China with 'Invitation' to Britain to

continue administration

Chinese unlikely to contemplate.

Legal problems for

basis of British rule.

Problem of confidence.

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