TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 166

SECRET

6. This leads me to wonder whether one can make the following

assumptions:

7.

a) if the Chinese wished eventually to resume possession of any part of the territory, they would wish to take over the territory as a whole, and not piecemeal;

b)

if the Chinese are not averse to the idea that the

British administration of Hong Kong should continue after 30 June 1997, they may be willing to allow the UK to hang on to the New Territories even after 30 June 1997 so long as they are not called upon to make embarrassing declarations or signify their

agreement in some positive way;

c) if the Chinese are willing to contemplate the

possibility of leaving the UK in possession of the whole territory after 30 June 1997 they may not mind if the UK takes the necessary preparatory steps to

make it lawful for British administration to continue (even without their express permission) so long as their claim to ultimate possession of the whole territory is not called in question.

It seems to me that legislative action by the UK prior

to 30 June 1997 could take one of three forms:

a) declaring that the New Territories are to continue to

be part of the colony indefinitely;

b) declaring that the New Territories are to form part

of the colony until the occurrence of some future

event;

c) declaring that the New Territories are to be governed as if they formed part of the colony of Hong Kong for so long after 30 June 1997 as by treaty, capitulation, grant, usage, sufferance and other lawful means Her Majesty has powers and jurisdiction in the New Territories.

SE CRET

/ 18.