TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 113

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Evkachok

See VIL

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Mr Clift

COVERING SECRET

SECRET

THE FUTURE OF HONG KONG:

1.

Reference........

HKK 040

RECEIVED IN REGISTRY

226

-

4 DECI

DESK OFFICER

INDEX

PA

FALKLAND ISLANDS AND

RATANAY AF BIK

We have now received copies of the Panama/US Panama Canal Treaty which is below. The most interesting part of it is the use of the phrase 'territorial sovereign' to describe Panama's interest in what used to be called the Canal Zone. Otherwise the treaty describes how the canal shall be administered and by whom. The overall management is the charge of a joint commission but Panamanian law prevails and services such as police, courts and immigration are provided by Panama. Some US employees and their offices have a form of diplomatic immunity but the US function seems more akin to a specialised agency than an

There is no mention of flags or currency.

administration.

2.

The papers on the Falkland Islands proposals are in the 1980 working papers. The most interesting of the papers is a checklist of the points concerning the lease-back proposals in which the islanders are most likely to be interested: the lease should be internationally agreed, the Argentine preserve restricted to token (sic) like flags and a liaison officer, nationality, self government, external relations and defence to remain unchanged.

3. I do not think that these examples have much to offer us though the concept of territorial sovereign might be.

4. We will find out if there is anything to be learnt from thinking on Gibraltar.

10 November 1981

Juileianen.

P J Williamson

Hong Kong and General Department

Mr. Ruskford

1. I how that you

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COVERING SECRET

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CODE 18.77

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