TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 139

DSR 11C

SE CRET

-4-

f) As at (d) with Chinese participation in Government eg

through Chinese Government representative in Hong Kong.

Prospects: Possible but a Chinese Government unlikely

to be interested in extensive participation without control.

Implications for HMG: Effect on confidence uncertain

Serious difficulties in accommodating role of Chinese.

(law and order, defence, social and economic policy).

g) UK/Chinese Joint Administration (Joint Commissioners)

Prospects:

either side.

Possible but unlikely to meet requirements of

Implications for HMG: Reluctance to take on another

condominium. Local and international problems of

partnership with communist country. Aggravated

difficulties over law and order, defence, intelligence.

Unlikely to encourage confidence because of uncertainty

of duration.

h) 'Special Status' for Hong Kong nominally within Chinese

State but with separate economy and currency.

Involving UK withdrawal and recognition of Chinese

sovereignty in return for high-level of autonomy for

SECRET

/Hong Kong

Dd 0532000 400 M 5/78 HMSO Bracknell