TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 45

SECRET

SUBMISSION

DSR 11 evised)

DRAFT:

mmute letter

FROM:

R D CLIFT

DEPARTMENT:

SECURITY CLASSIFICATION

TO:

Top Secret

Mr Donald

Secret

Confidential

Restricted

Unclassified

(de

TYPE: Draft/Final 1+

Reference

HKGD

TEL. NO: 233 3184

Your Reference

Copies to:

Mr Elliott, FED Mr Rushford,

Legal Advisers

PRIVACY MARKING

CAVEAT.

...In Confidence

Х

Enclosures-flag(s).........

SUBJECT: FUTURE OF HONG KONG

Problem

1. To consider contingency plans fort the medium and

long-term future and the tactics for the proposed visit

to China and Hong Kong by the Prime Minister in 1982.

Recommendation

2.

I recommend that:

a) Ministers should endorse the attached draft

contingency paper;

b) the Secretary of State should write to the

Prime Minister as in the attached draft.

Background and Argument

3.

The Lease of the New Territories ends in 1997.

The shadow of this date will soon begin to affect

investment confidence in Hong Kong. Unless future

prospects are satisfactorily clarified, this will

happen by 1985 at the latest, perhaps sooner.

Chinese View

4. The Chinese claim that all the treaties affecting

Hong Kong are 'unequal' But they have not formally

abrogated them. They are deliberately equivocal about

•

SECRET

/the

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