TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 165

Mr Williamson, HKGD

SECRET

АКК

حماية .

cc Mr Friar, HKGD

Mr Freeland

Sin

04011

Sinclair (o.r.)

See

215

See

FUTURE OF HONG KONG

IN:

I have recently been giving me further thought to the

difficulties created by the fact that the New Territories were

granted on lease is reflected in the 1898 Order, which does not

at present provide a sufficient basis in municipal law for

British administration of the New Territories after 30 June

1997.

2.12.

See

211)

2. There seems to be little likelihood at present that the

Chinese Government would be willing to enter into an agreement

with the UK under which the UK would be authorized to administer

the New Territories after 30 June 1997.

3.

If this situation continues (as well it may) then grave

uncertainties about the continuance of UK administration after

30 June 1997 are bound to develop as that date approaches,

with serious political and economic consequences for Hong Kong

and the UK.

4. As I see it, therefore, HMG may well have to contemplate

taking unilateral action to alter the situation in the hope

that such action will receive the tacit acquiescence of the

Chinese and not provoke them into retaliation.

5. On the UK side it seems to be axiomatic that the territory

of Hong Kong can be satisfactorily administered only as a whole

in other words, if the New Territories were surrendered,

rest of the colony would be untenable.

the

228.

Beb was

of

28160

SECRET

6.

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