TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 134

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Enter

146.

Hick

04011

Mr Clift HK&G Dept

Hassen. Overtaken.

FUTURE OF HONG KONG

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Paszoló

1. I should like to suggest for your consideration an additional option which might be negotiated with the Chinese: -

(i) The UK would recognize Chinese sovereignty over Hong Kong Island, Kowloon and the leased territories ie the whole territory which we at present occupy.

See 147

(ii) In return the Chinese Government would immediately

grant to the UK a lease of the entire territory (the island, Kowloon and the present leased territories) for an indefinite period, but terminable on 15 years' notice by either side.

2. The first part of this option would be a major concession on our part, so far as concerns Hong Kong Island and Kowloon, over which we undoubtedly have sovereignty. An Act of Parliament would be needed to relinquish our sovereignty. In making this suggestion I take into account my instruction that Hong Kong is not viable without the leased territories. I suggest 15 years' notice because I understand that that would be the minimum period required in order to maintain business confidence in Hong Kong. Any other figure could of course be chosen. The offer might be tempting to the Chinese because in exchange for a very dubious claim to sovereignty over Hong Kong Island and Kowloon, and a reversion on the lease of the rest in 1997, they would gain immediate and undisputed sovereignty over the whole territory. They would do so without having to acknowledge even the existence of the three earlier treaties upon which our own position in Hong K'ng at present depends.

3. Any discussion with the Chinese of this option would of course need to be covered by some agreement that we were for the time being negotiating without prejudice to the views of either side with regard to sovereignty my minute of 24 March.

144)

7. Bunows

please see

F Burrows Legal Counsellor

ར~ཤ

25 March 1982

cc: Sir I Sinclair

Mr Donald

FED

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