TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 84

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SECRET

Sir E Youde Las soeu

FUTURE OF HONG KONG : DRAFT PAPER

1.

2.

I attach drafts as follows:

акк cuoli

RECEIVED IN RESISTRY NO. 51

29 JAN1981

DESK OFFICER INDEX

PA

REGISTRY Action Taken

ওর

Th 12

a) the main paper based on the outline agreed with you

(Annexes A and C are included; Annex B will be ready next week);

b) a shorter covering note. This summarises the main

points in the longer paper and draws conclusions.

The papers are intended in the first place as background material for the Secretary of State's visit to the Far East at the end of March. They draw attention to the medium and long-term problems but do not offer final solutions. The 'Medium Term' section of the main paper (paragraphs 7-19) would also serve as the basis of contingency briefing in case the Chinese make sepcific demands to us (eg on sovereignty or a Chinese representative) during Ministerial contacts.

3. This version includes suggestions by Mr McLaren and Mr Watts. The suggestion that HMG might acknowledge' China's position on sovereignty (paragraph 12) is Mr McLaren's. Both Mr McLaren and Mr Watts may wish to make further comments and Mr Donald has not yet had time to study the draft, having been as the Asia Working Group this week.

4. The Governor of Hong Kong and HM Ambassador, Peking have not seen this draft. They saw an earlier version of the outline. Sir P Cradock commented that he regarded the contingency study on sovereignty and a Chinese representative as the most important aspect. Sir M MacLehose has not yet commented. The Political Adviser (who personally takes a similar view to the Ambassador's)

Dr Wilson says that the Governor has not yet made up his mind. thinks, however, that Sir Murray would probably now wish to wait to see our substantive draft before commenting.

Procedure

Consultation

5. There is time to consult Hong Kong and Peking and get the

To do paper to Ministers before the Secretary of State's visit. this we need to get a version of the draft in the bag leaving on 28 January or on 11 February.

6. You may wish to on the main paper at may need to vary the

23 January 1981

cc Mr Donald

Mr McLaren FED

call a meeting. first.

I suggest that we concentrate The summary will depend on it and we form in which we submit to Ministers.

Flip

Mr Watts Legal Advisers

R D Clift

Hong Kong and General Department

SECRET