TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 91

SECRET

5

DSR 11C

b)

The status of Hong Kong's population would have to be

settled with China and the position of Citizens of the

UK and Colonies (by then Citizens of the British

Dependent Territories) agreed. There would be demands

from many of the latter (now totalling 2.6 million) to

settle in the UK. Other Hong Kong residents would make

a political and moral case for similar concessions. If

not admitted to the UK large numbers would try to flee

to neighbouring countries.

Administration of Hong Kong

During the transitional period the problems described

in paragraph 9(v) would arise. The Civil Service and

Police, both local and expatriate, would face the

problem of divided loyalties. Many would make demands

on HMG for special treatment. When the new system

took effect, the maintenance of confidence would depend

on the establishment of a credible administration.

There might be pressure for Britain to play a continuing

part in this for the sake of stability.

c) Economic

Stability would demand a separate and efficiently-run

SECRET

Dd 0532000 400 M 5/78 HMSO Bracknell