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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.
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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 Hong Kong. Possible
administrative models include a Chinese 'Governor' with Hong Kong
local Executive Council, or a 'local' Governor. Some expatriate
(largely British) administrative and other personnel might remain.
Prospects:
Possible. In recent overtures to Taiwan, China made
similar offers of autonomy (might follow on from (c)).
Implications for HMG: Local and international confidence dependent on
nature of guarantees that China would allow separate status to
continue. High risks of flight of capital and immigration pressures
Problem of Civil Service and Police.
in transition period.
Citizenship disputes.
in Hong Kong.
Problems of continued employment of UK staff
i) 'Special Economic Zone' status for Hong Kong with separate
currency but under central Chinese administration
Prospects: Less likely than (g). May be ultimate Chinese aim but
yet to make success of own 'special zones'. Unlikely able to operate
in foreseeable future.
Implications for HMG: Aggravated problems of confidence in
transitional period. Major immigration pressures.
negotiate adequate guarantees for population.
Difficult to
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