TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 61

SECRET

-18-

d)

e)

outpace those of Guangdong.

Hong Kong also now has de facto

autonomy in international trade agreements and de facto but not

separate representation in international organisations ie the

General Agreement on Tariffs and Trade (GATT), which would need

examination. Hong Kong also features significantly in the

United Kingdom's international air service agreements.

accommodation would be necessary on this.

An

Defence: The role of the British Garrison in a transitional

period would create major problems. It would be necessary to

decide whether British troops should remain in the long-term.

A close relationship with China in this area would raise

serious difficulties on the ground and would have to be

reconciled with our other international commitments. The

implications for the future of the Brigade of Gurkhas would

also have to be considered.

Legal: The nature of the legal problems for HMG would depend

on the extend of participation by Britain in the administration

of the Territory under the new system. The range of problems

include:

i) The legacy of the allegedly 'unequal'.Treaties on which

present British rule rests; how can these be replaced

without a new treaty?

ii) The reconciliation

of continuing British administration

with a recognition of ultimate Chinese sovereignty.

iii) The provision of a legal basis for a British contribution

to a new system of government

for example, a special zone

within the Chinese state but under local control;

iv) Legal problems during a transitional period

v) Legal problems of citizenship (see (a)).

SECRET