TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 95

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DSR 11C

e.g. over the control and use of the security forces, law

and order and immigration. We should not accept anything more

than an undertaking on discussion with the Chinese on matters

of legitimate interest to them; we should seek concessions

in return.

LONG-TERM

7.

Should HMG itself contemplate withdrawal? Although the

economic pros and cons of our presence are about even, there

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are problems for any British government either in retaining

responsibility for Hong Kong or in taking the initiative to

leave.

Remaining in Hong Kong

accountable in

8.

a) HMG is

the conduct of

Hong Kong and in

Parliament för/administration in the Territory; and

from the Hong Kong Government over disputes between

the two governments;

b) Hong Kong represents a continuing defence commitment

and could complicate international relationships particularly with China, but also in the trade field e.g. over textiles.

Taking Steps to Leave Hong Kong

9.

Apart from international repercussions which would not

in themselves be conclusive the difficulties would be:

i) Our obligations to the population;

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Dd 0532000 400 M 5/78 HMSO Bracknell