TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 124

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in administration either domestic or international.

In any

subsequent negotiations (which would probably be conducted by

officials) we must be prepared for a long haul. Any idea, in

Hong Kong or elsewhere, that we would get agreement quickly is

likely to be disappointed and lead to a serious blow to confidence.

6. Legal Position. Full details of legal requirements would depend on final. form of agreement. But the following is clear:

a) Relinquishment of British sovereignty would require an

Act of Parliament.

b) There would be no further legal impediment (national or

international) to the conclusion of an agreement with the

Chinese which recognised their sovereignty but confirmed

our continuing administration of the internal and external

affairs of Hong Kong. (Sequence of events: signing of an

agreement with the Chinese; passing of the Act of Parliament

on sovereignty; ratification of the agreement).

c) Before we begin discussing with the Chinese an administration/

sovereignty deal we should reach an understanding with them,

preferably in writing, that the discussions themselves were

without prejudice to either side's position with regard to

sovereignty.

7. Does the Prime Minister wish to discuss with colleagues?

Perhaps not all of OD but Defence and Home Secretaries and

Chancellor should probably be included.

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