TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 92

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Sir E Youde

SECRET

Akk Ouch!

RECEIVED IN REGISTRY NO. 51

19 MAR 1981

DLOK OFFICER INDEX

REGISTRY

PA ¡Action Taken

THE FUTURE OF HONG KONG: DRAFT PAPER ON OPTIONS AND PROBLEMS

An 194

1.

I attach a re-draft of the 'Future' paper incorporating comments made by the Governor in his letter of 24 February. FED and Legal Advisers agree, HM Ambassador in Peking, however, has still to comment.

2. All of the Governor's suggestions are reflected in except two presentational points. First, I believe that the content of the section on the legal implications of relinquishing sovereignty, as set out by Mr Rushford, is of such importance as to appear in the main body of the text (paragraph 13) rather than in an annex. (However, an annex on Chinese statements on sovereignty is being prepared). Second, the section of the paper dealing with implications for HMG of a long-term solution is, in my view, better treated problem by problem as at present than under individual scenarios as suggested by the Governor This latter format is, however, followed in Annex E (formerly C) and any. further views on implications be

can, with comparative ease, introduced there. We have, nevertheless, given more prominence to the Governor's 'Hankow' and 'Macao' solutions (paragraph 7 of his letter) in paragraph 32 of the re-draft

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3. Hong Kong have promised to draft an annex on parallels with Macao. This and other outstanding annexes will be submitted when they are available.

P. Morrice

P Morrice

6 March 1981

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Mr Donald

Mr McLaren, FED

Mr Watts, Legal Advisers

Mr Clift (or)

SECRET

Hong Kong and General Department