TNAG-1168-FCO40-1448-Future-of-Hong-Kong-1982 — Page 37

GPS 200

SECRET

SECRET

FM HONG KONG 1704002 MAR 82

TO PRIORITY FCO

TELEGRAM NUMBER 260 OF 17 MARCH

INFO PEKING ( PERSONAL FOR AMBASSADOR)

125

нки ото

M

17 MAR (C2

AL

W

See (127

FROM GOVERNOR FOR CLIFT, HKGD: YOUR TEL NO 1584 PEKING TELNO $53 (24/3

FUTURE OF HONG KONG.

Toy

IF I AM ASKED WHETHER CONTINUED BRITISH ADMINISTRATION IS ESSENTIAL FOR THE MAINTENANCE OF CONFIDENCE I WILL ANSWER 'YES-

FOR THE TIME BEING''.

114

2. I DO NOT THINK ANY CHINESE LEADER WOULD DISPUTE THAT AFTER THE

UPHEAVALS OF THE LAST 10 OR EVEN 30 YEARS IT WILL TAKE A LONG

PERIOD OF CONSISTENT AND PRAGMATIC GOVERNMENT IN CHINA TO COMMAND

SUFFICIENT CONFIDENCE AMONGST HONG KONG PEOPLE OR FOREIGN INVESTORS

TO AVOID RISK OF WHOLESALE DISINVESTMENT AT THE PROSPECT OF A CHINESE TAKEOVER. THOUGH ONE CANNOT SAY HOW LONG THE CONSTRUCTION

OF CONFIDENCE MAY TAKE, IT IS INCONCEIVABLE THAT IT COULD BE

BUILT UP OVER THE TWO OR THREE YEARS LEFT BEFORE THE SHADOW OF THE

1898 ORDER-IN-COUNCIL STARTS A PROCESS OF DISINVESTMENT.

3. GRANTED THAT THE FINAL SOLUTION IS INCORPORATION IN CHINA AT SOME COMPARATIVELY DISTANT DATE, WHAT WE ARE CONCERNED WITH IS AN

INTERIM ARRANGEMENT. SINCE THE LATTERS OBJECTIVE WOULD BE AN ASSURANCE OF CONTINUITY FOR THE TIME BEING, I SEE NO PRACTICAL ALTERNATIVE TO CONTINUATION OF BRITISH ADMINISTRATION, LAW AND CURRENCY.

4. IF PUSHED TO EXPAND ON THE ANSWER IN PARA 1 I WILL SPEAK AS IN

SUCCEEDING PARAGAPHS.

MACLEHOSE

LIMITED

HD/HKGO

PS

FED

PS/LPS

MR WRIGHT

MR GIFFARO

MR DONALD

SECRET

COPIES SIR E YOUDE

то

c/o

HR GD

THIS TELEGRAM

WAS NOT ADVANCED