TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 116

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DSR 11C

asserted their sovereignty over the whole of Hong Kong,

and the UK acknowledged the Chinese position. This would

follow the precedent of the statements on the status of

Taiwan negotiated in 1972 in connection with the establishment

of full diplomatic relations. An acknowledgement' (i.e.

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taking note) of the Chinese position that Hong Kong

Chinese territory would not create legal difficulties for the

UK but might be acceptable to the Chinese if they were seek-

ing an acceptable basis for permitting the continuation of

British administration.

But equally it might not go far

enough for them, And we would still need Chinese agreement

to the 1898 Order in Council.

18. We should therefore examine any Chinese proposal on

sovereignty very carefully but only be prepared to make

concessions if Peking were ready to give assurances going

well beyond a pragmatic understanding on land leases and

general assurances about Hong Kong's future stability.

Chinese Representative

19. Here the problem is primarily political.

There would

be no legal problem for HMG in agreeing to the presence

of a 'Chinese Representative in Hong Kong'.

As Annex B

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