TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 170

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FUTURE OF HONG KONG

1.

On 2 January Sir E Youde discussed with me the attached letter of 18 December from Sir P Cradock.

2.

Sir Percy's main thesis is the familiar one that we should start talks or at least 'soundings' with the Chinese earlier rather than later, although he sticks fully to the agreements which he reached with the Governor during his visit to Hong Kong earlier in December.

3. The Chief Clerk proposes to submit the letter to the Secretary of State as Sir P Cradock requests, but this cannot be done before 22 January. Meanwhile, Sir E Youde would like to write to the Ambassador to try to clarify various points. For simplicity's sake I have included these in the attached outline draft. This is, however, very much a first shot and I would be grateful if it could

We should get

be filled out as appropriate and cleared with FED,

a draft to Mr Donald by 9 January.

Paper on Long Term Future

4. Sir P Cradock comments briefly on the first draft in paragraph 11 of his letter.

We have yet to get the Governor's views but I suspect that they will be similar. I have discussed briefly with the Chief Clerk. The letter accepts that a paper covering the broad long-term implications on the future will be necessary but equally agreed that there is a case for pressing ahead as a priority with those points which may come up in discussion with the Chinese fairly soon, ie a declaration on Chinese sovereignty and Chinese representation in Hong Kong. In practice we could probably make this the first part of a composite paper which could be used separately if desired. A possible outline is in the attached draft.

Please hurry up work on the sovereignty

and representation aspects. I would like to discuss a draft paper on this by the beginning of February at the latest,

Papers for the Chief Clerk

5. Please arrange for the following papers to be sent to Sir E Youde:

6.

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✓a) DOP papers of 1972 and 1973 on Hong bong's future;

b) the 1976 Planning Paper on Hong Kong;

c) The texts of the 1842, 1860 and 1898 Treaties (from NTD).

Please also obtain for the Chief Clerk's personal use a second copy of the book 'Unequal Treaty'.

2 January 1981

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