SECRET
5. I have no specific proposals for how we could take account of my suggestions. This might be for Legal Advisers to consider first. But the proposed Parliamentary statement should I suggest refer to the Chinese Government's non-recognition not only of the 1898 Convention but also of the earlier Treaties governing Hong Kong's status. In drawing up legislation, I do not know whether it would be possible too to bracket any extension of the powers and jurisdiction by Her Majesty over the New Territories with some statement putting her powers and jurisdiction over Hong Kong island and the Kowloon peninsula on the same basis as those over the New Territories. But I suspect that, unless we move in this direction, we could not expect the Chinese to acquiesce in a unilateral statement by us prior to any negotiations on the longer term future.
26 October 1981
SECRET
H L Davies
Far Eastern Department
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