TNAG-1167-FCO40-1447-Future-of-Hong-Kong-1982 — Page 160

Sir E Youde

es/pus

cc PS/PUS

Hinute

Mr Donald

Mr Elliott

FED

12

сору

SECRET

Mr Rushford, Legal Advisers

Mr Mallaby, Planning Staff

ongual with

Pas 2611482

AKI 04011

16 DFCW9&1

255

14

3/12

INDEX

SY

ken

<<

A

B

FUTURE OF HONG KONG

PROBLEM

See fussa

1. To consider contingency plans for the medium and long-term future

and tactics for the proposed visit to China and Hong Kong by the

Prime Minister in 1982.

RECOMMENDATION

2.

I recommend that:

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1982

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.

FED and the departmental Legal Adviser agree. SED and SAmD have been

consulted on paragraph 12. The Governor of Hong Kong and HM Ambassador

Peking, have contributed to the papers.

BACKGROUND AND ARGUMENT

3.

This will soon

The Lease of the New Territories ends in 1997.

begin to affect investment confidence in Hong Kong. Unless the future

is clarified, this will happen by 1985 at the latest, perhaps sooner.

Th

4. Chinese and British views. The Chinese claim that all the treatie

affecting Hong Kong are 'unequal'. But they have not formally abrogate

them. They are deliberately equivocal about the significance to them

of 1997. On the British side, the legal position is clear cut. Unless

new powers are taken, the Governor's right to administer the New

Territories ceases in 1997. In British law there is a distinction

SECRET

/between