TNAG-1041-FCO40-1291-Future-of-Hong-Kong-1981 — Page 23

CODE 18.77

Mr Williamson

Mr McQuade

Mr Clift

SECRET

Reference.....HKK 040/1.

276

The Buj

ROXX

HKR

04011

2 2 DEC1901

{}.

A

FUTURE OF HONG KONG

1. We have been looking for a simple form of words which, with China's agreement, might enable the status quo in Hong Kong to continue after 1997 without our having recourse to an Act of Parliament.

2.

Such a form of words would, I think, need to avoid any specific mention of:

(a)

sovereignty;

(b)

British administration;

See Huck 040/10

1982

3.

(c) leases;

(d) the New Territories.

At the same time, it seems to me that it might reflect not only Britain's concern over and interest in the future of Hong Kong, but also China's. Furthermore, if it could include phraseology that the Chinese themselves have used then there would be a better chance of the Chinese accepting it.

4.

5.

One form of words suggested already is:

'HMG acknowledges the PRC's well-known position on Hong Kong. The two sides have agreed that a minimum of 'x' years (eg 15) notice would be given of any intention (by either side?) to change the present status quo'.

If the phrase 'HMG acknowledges' is thought to smack too much of acknowledging Chinese sovereignty, then we might use instead words employed by the Chinese, ie: 'Without prejudice to the PRC's position on Hong Kong, HMG and the PRC have agreed etc

6.

If we want to bring out more strongly the point in paragraph three above - and again use wording that the Chinese themselves have used - then we might add at the beginning a sentence on the following lines:

'HMG and the PRC both support the prosperity and further development of Hong Kong and acknowledge the need for confidence to be maintained. Without prejudice etc ...'

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17.