TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 139

Mr Donald

вага

Miere 04011

CONFIDENTIAL

attached

تدا

(ZOA)

223

FUTURE OF HONG KONG SIR JOHN KESWICK

You asked for comments on Sir John's handwritten solution to the Hong Kong lease problem that you might put into your reply.

1.

2.

I think you might say that we found it thought-provoking and agree that it is probably right to look for solutions to the cuture that take account of the pragmatic approach of the present Chinese leadership. You might wonder, however, whether the Chinese would in fact find the proposal politically acceptable for all the economic benefit they would derive from it. The length of the proposed arrangement (100 years) is only one problem. It is also questionable whether the World Bank or ADB would be prepared to get involved in a semi-political role. They would take some convincing!

Bun

See (286

6 November 1981

R D Clift

Hong Kong and General Department

CONFIDENTIAL