TNAG-1041-FCO40-1291-Future-of-Hong-Kong-1981 — Page 81

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she should be aware of the Hong Kong angle to this visit. There would

be expectations there that she will be seeking a solution to the

problem of the future of Hong Kong. There is considerable risk that

the Chinese would not be prepared to add to their earlier general

This would bring disillusionment in Hong Kong and itself

assurances.

affect confidence.

11. Sovereignty.

However, if the Chinese are prepared during the

visit or later on to have talks on Hong Kong, it is likely that one

major concession they would ask for would be British acknowledgement

of Chinese sovereignty over the Territory. There are obvious political

difficulties, including implications for other Dependent Territories,

notably the Falkland Islands and Gibraltar.

12. In the case of the Falkland Islands, a lease-back in return for

acknowledgement of Argentine sovereignty has already been canvassed.

On Gibraltar, the Spaniards have so far been demanding little more than

British acknowledgement of their sovereignty although they would see

the next step as autonomy under the Spanish Constitution. The whole

idea is anathema to the vast majority of Gibraltarians, who rely on

the British pledge that they will not pass under the sovereignty of

another State against their freely and democratically expressed wishes.

Any move over Hong Kong sovereignty would be watched carefully by

the Spanish Government and could thus further complicate HMG's

already tricky task in handling negotiations with them.

There are very

13. These problems should, however, be containable.

important differences between the situation in Hong Kong and Gibraltar.

In the first place, there is no question of avoiding change of some

sort in 1997 as regards the New Territories. Moreover, there is no

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