TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 138

SECRET

-3-

DSR 11C

e) Continuance of de facto status quo with legal changes.

UK would recognise Chinese Sovereignty (formal

rendition) in return for acceptance of continuing

British administration (on Macao model).

Prospects:"

Possible. Might reconcile Chinese national

and pragmatic requirements.

Implications for HMG:

Effect on confidence would

depend on duration of British 'tenancy.

Legal problems

possibly

would include basis for administration and /citizenship

status of Hong Kong residents.

SECRET

/f)

Dd 0532000 400 M 578 HMSO Bracknell