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comments it would appear that an Act of Parliament is unavoidable in each of the possible circumstances. Perhaps you would confirm that this is indeed the case. If it is not, I should be grateful for an indication of circumstances in which an Act might be avoided.
4.
That said, I certainly agree that before any formal negotiations begin, it should be made clear in writing that these are to be without prejudice to either side's position with regard to sovereignty (Paragraph 5 of your undated minute refers).
5.
As for paragraph 8 of that minute, about the continuation of British administration, our aim would be to obtain agreement to everything continuing in Hong Kong as at present if the Chinese were to insist on our relinquishing sovereignty. The only scope for further concessions on our part might possibly be over the flag and Chinese representation in Hong Kong, but otherwise we would hope to see the status quo vis-à-vis admin- istration, both internal and external, maintained.
6.
Because of the Falklands crisis the meeting that was to have been held at No 10 on 2 April to discuss the future and particularly to broach the sovereignty question with the Prime Minister did not take place. In all probability it will not be resurrected until mid-May at the earliest, when both Sir E Youde and Sir M MacLehose are here. In one sense this delay is welcome in that it gives us more time in which to get our own minds straight but we are going to have to start focussing sharply before very much longer. As part of this process I think it would be valuable if in the next week or two a meeting could be arranged involving Sir Ian Sinclair, Mr Donald, yourself and representatives of this department and also of FED. It is most important that by the time we do discuss this in detail with No 10 we are all thinking along the same lines, not only about the options, but also about their legal implications. Perhaps after Easter we can fix a meeting for the second half of April.
13 April 1982
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R D Clift
Hong Kong and General Department
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