if this means an "international free city" similar in betur to Danzig, it would directly involve the sovereignty of the terriroty in Hongkong, an issue which is anathema to the Chinese authorities. Other suggestions such as "trusteeship" would involve all kinds of problems in international law and is acceptable only if both China and Great Britain are willing to make great sacrifices. On the other hand, the Chinese and the British authorities have hitherto looked upon the problem. of Hongkong as a bi-lateral issue and will not countenance any intervention from a third party (including sundry and all international bodies).
If a scheme, acceptable both to the two nations' authorieies and to Hongkong itself, as well as objectively capable of meeting the needs of all parties, is to be formulated, the
normal, and most feasible course of action would be for the two countries to conclude a new "Sinc- British Treaty of Friendship and Co-operation". Hence the proposal herewith.
Iİ. AN OUTLINE OF THE NATURE AND CONTENTS OF THE
"SINO-BRITISH TREATY OF FRIENDSHIP AND CO-OPERATION"
(i) The Nature of the Treaty
The treaty proposed herewith does not deal with the Hongkong
issue as its main item. Rather, it aims at re-defining the
Sino-British relationship as a whole. The Hongkong issue has never been an isolated one and should, therefore, be looked upon as part of the foreign policies of the two nations. The proposed enactment of a new treaty has as its objective the firm establishment of a relationship of close
co-operation between China and Great Britain, with the hope
of maximising Hongkong's function as the centre feature of such co-operation, so that the modernisation programmes in
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