TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 104

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Whatever political solution was adopted, investors would

not be affected'. But the Chinese have stopped short of any

specific undertaking that British administration would be

permitted to continue beyond 1997.

Hong Kong is a delicate

political issue for them. It is inevitably linked in their

minds with the problem of Taiwan and, possibly other terra,

irredenta.

There is also some evidence of opposition to the maintenance

of the status quo within China. Internally the question of

Hong Kong is probably as politically delicate as that of

Ireland in the UK. They will thus reserve their position,

watching the course of stability in Hong Kong without nece-

ssarily gearing their action to 1997.

6. Even if the Chinese interest might be to allow Hong Kong

to continue more or less as at present until some time after

1997,

and in consequence they were prepared to ignore the

Peking Convention, any acts of administration by the Hong Kong

Government relating to the post-1997 period, including

leases, would be ultra vires without amendment of the 1898

Order in Council, which makes the Governor's powers of

jurisdiction co-terminus with the Lease.

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