TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 122

THE LONG-TERM

SECRET -20-

DSR 11C

1

25,

Consideration of the Medium Term has assumed a need for

HMG to maintain confidence in its intention to continue the

administration of Hong Kong. Beyond 1985, however, it is

necessary to discuss whether the United Kingdom should nim

to remain in the Territory at all. Annex D examines the

economic advantages and disadvantages of the United Kingdom/

This is impossible to quantify accurately. In bilateral terms' Hong Kong connection./ the balance is about even, but Hong Kong's role as a springboard for British business activity throughout East & S E Asia is an important consideration, political considerations are, however, more important.

The problems for HMG in staying put and in taking the

initiative to leave Hong Kong are examined below.

Remaining in Hong Kong ́

26, The administration of Hong Kong lays HMG open to

criticism:

representative government

is

a) from Hong Kong itself. Since full /

impossible, Ministers have to answer petitions and

complaints covering the whole range of government.

There are also risks of disagreement between HMG

and the Government of Hong Kong itself, for instance

over trade policy. Moreover, so long as we

are

SECRET

/responsible

#4 B32113 200M 2/79 $15