TNAG-1038-FCO40-1288-Future-of-Hong-Kong-1981 — Page 123

CODE 18-77

Mr McLaren

All Willingn

SECRET

Reference....

Junta

25

I seal It paul text des cas

1 only on outline and that

the Hong Kong paper would no doubt deal with the specifics that be wentiens. £7.5.

HONG KONG: CONTINGENCY PROPOSALS

1.

акконо

RECEIVED IN REGISTRY NO. 51

HKGD have asked for comments on the attached draft in accordance with their usual procedure. not got beyond desk officer level.

At présent it has.

DESK OFFICER INDEX

PA

REGISTRY Action Taken

WIN 2. I have no particular comments to make on the draft as it stands (it appears to be a recap of the essentials bf the paper on the Future which was prepared before the Secretary of State's visit to the Far East). However, I wonder whether the draft really addresses itself to the central problem, namely what could be done immediately in the event of a sudden slide in confidence in Hong Kong. I had imagined that a contingency paper would consider the possibility of immediate consultations with the Chinese (where and at what level) and the desirability of official statements, both jointly with the Chinese or if necessary... unilaterally. The paper might also consider what specific action could be taken in London, Peking and Hong Kong. More thought might also be given to precisely in what ways the slide in confidence would occur (eg a stock market crash, inability of the Hong Kong Government to raise loans on the international money market, resulting delays and stoppages in construction projects such as the new airport or the link with Lan Tao etc).

1 May 1980

ARPanc

A R Paul

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your comments

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paper.

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