TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 109

}

DSR 11C

SECRET -9-

that the Chinese would seek in return concessions on our part.

to enhance their political and legal position. They might not

press such proposals too far, recognising the need to maintain

confidence within the Territory and among potential outside

investors. But they could look for concessions in

following areas:

a) Sovereignty.

The Chinese might seek a change in our

attitude to sovereignty over the whole Territory.

This could take various forms, ranging from a

confidential assurance on our part that we recognised

Chinese residual sovereignty to a public statement

to that effect. China's treatment of the sovereignty

issue is discussed at Annex A.

b) Chinese Representative in Hong Kong. The Chinese

Government have made proposals for such a

representative on a number of occasions, the latest

in 1979. (See Annex B). They have not been specific

as to his role, though they would presumably expect

him to take over at least the non-journalistic

functions at present performed by the New China

News Agency (NCNA). So far HMG have taken the line

SECRET

/that

Dd 0532000' 400 M 5|78 HMSQ Bracknell