TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 63

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d)

Continuance of Status Quo beyond 1997 with concessions

(acknowledgement of Chinese position on sovereignty

and acceptance of Chinese Representative) not

requiring legal changes.

Prospects: Possible, but might not go far enough for Chinese.

Implications for HMG: UK concessions would need to be balanced by

Chinese statement giving promise of long duration. But legal problem

of basis of rule. Distinction between acknowledgement and acceptance

of Chinese position on sovereignty perhaps too fine to guarantee confidenc

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:

of British 'tenancy'.

Effect on confidence would depend on duration

Legal problems would include basis for

administration and possible citizenship status of Hong Kong residents.

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.

Effect on confidence uncertain.

Serious

Implications for HMG:

difficulties in accommodating role of Chinese (law and order, defence,

social and economic policy).

g)

UK/Chinese Joint Administration (Joint Commissioners)

Prospects: Possible but unlikely to meet requirements of either side.

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