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through the Political Adviser/NCNA channel. A recent example was
the proposed new system of partially elective district boards.
But there is no question of consultation or of a Chinese veto.
If a Chinese representative were given such a right problems would
arise in the fields of law and order (attitude to Communist and KMT
pressure groups; labour and immigration. Quite apart from questions
of intelligence and internal security, the handling and use of the
would present major problems. The morale and
security forces
efficiency of the public service would suffer.
24. The conclusion is that HMG could not accept an attempt to tack
onto the present administrative system any effective Peking
participation in government. There might be an understanding that a
Chinese representative would have an interest in certain matters but
this should give him no powers of veto, should not amount to
consultation and should not be made public. Even an understanding of
this sort should not be accepted without firm Chinese concessions
on the lines described in paragraphs 16-18 above.
THE LONG TERM
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 aim to remain in the Territory at all.
Annex E examines the economic advantages and disadvantages of the
United Kingdom/Hong Kong connection. This is impossible to quantify
accurately. In bilateral terms the balance is about even, but Hong
Kong's role as a springboard for British business activity throughout
East and SE Asia should not be overlooked. Political considerations
are, however, more important. The problems for HMG in staying put
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