TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 125

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HOFC 012/26 Mon hepful when

GRS 650

SECRET

TELELETTER

than HM A Perving's views.

be showend wow auto

to Bumous fakriviers.

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FROM R J T MCLAREN, POLITICAL ADVISER, HONG KONG

FILE REF TSX 1/80 DATED 26 MARCH 1982

FOLLOWING FOR R D CLIFT ESQ HK GD FCO

COPIED TO

M ELLIOT ESQ FED FCO

на

SIR P CRADOCK KCMG FERLING Comments? we can write to the & Rehing again after He 2 Ame meeting whe

FUTURE OF HONG KONG.

1. I AM SORRY NOT TO HAVE COMMENTED EARLIER ON YOUR LETTER OF 10 FEBRUARY ENCLOSING COPIES OF A SERIES OF MINUTES BY TONY RUSHFORD. I WANTED TO TAKE THE OPPORTUNITY PROVIDED BY MY VISIT TO PEKING WITH THE FINANCIAL SECRETARY TO GO OVER THE GROUND

WITH THE AMBASSADOR.

ILLA

26/3

See (138)

2. I HAVE NOW SEEN PERCY CRADOCK'S LETTER OF 15 MARCH AND AGREE VERY MUCH WITH WHAT HE SAYS, IN PARTICULAR THAT WE SHOULD NOW DISCARD THE OPTIONS WHICH ARE CLEARLY UNREALISTIC AND CONCENTRATE

ON THOSE FEW WHICH STAND ANY CHANCE OF SUCCESS.

3. FROM OUR POINT OF VIEW THE ESSENTIAL REQUIREMENT IS TO REMOVE THE PRESENT CERTAINTY THAT BRITISH ADMINISTRATION IN THE NEW TERRITORIES WILL END IN 1997. IF THE CHINESE ARE TO BE BROUGHT TO AGREE TO THIS IT WILL HAVE TO BE DONE IN A MANNER CONSISTENT

WITH THE BASIC CHINESE POSITION, AND WITH THE ABSOLUTE MINIMUM OF

LEGAL ACTION OR FUSS IN THE UK. AS SEEN FROM HERE, THIS MEANS

THAT WE SHOULD CONCENTRATE OUR EFFORTS ON TWO OPTIONS:- (A) AMENDMENT OF THE 1898 ORDER-IN-COUNCIL TO REMOVE THE TERMINAL DATE (NO SET PERIOD, NO NOTICE). THIS WOULD INVOLVE THE DELETION OF FOR THE TERM DESCRIBED IN THE SAID CONVENTION'' FROM CLAUSE 1

AND THE ADDITION OF SOMETHING LIKE "..... UNTIL SUCH TIME AS

ALTERNATIVE ARRANGEMENTS HAVE BEEN AGREED BETWEEN THE CHINESE

GOVERNMENT AND HMG'' AFTER ''.. COLONY OF HONG KONG''.

..

(B) AS FOR (A) BUT ACCOMPANIED BY A CHINESE STATEMENT THAT X (E G

10 OR 15 YEARS NOTICE WOULD BE GIVEN OF ANY INTENTION TO CHANGE

THE PRESENT ADMINISTRATION.