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Option 2
5. The essence of this would be an agreement between the two governments, or an acknowledgement by HMG, that Hong Kong would "revert to China" and that China would have the right to bring this about by giving the agreed length of notice. To enable us to honour such an under- taking an Act of Parliament would again be necessary, and we could not therefore safely give the undertaking without first having the Act.
6. The example again does not entirely conform to the earlier description of it. Thus the last two and a half lines of (b) suggest that some further agreement might be needed before the notice could take effect (although the draft is not entirely clear on this point). From the Chinese point of view this would presumably destroy the point of the notice. To avoid this difficulty, and to achieve conformity with the preambular description of the option I suggest that (b) of the example might end with the words "...will revert to China after the expiration of the notice".
Option 3
7.
I suggest that the part headed "Legal Implications" be changed to read:
8.
"Since this also would commit HMG to a relinquishment of sovereignty an Act of Parliament would be needed before the commitment could be made."
I suggest the addition of a new fifth option on the following lines:-
"5. The UK would recognize Chinese sovereignty over the whole territory which we at present occupy. In return China would immediately grant to the UK a lease of the entire territory for an indefinite period, but terminable on [15] years' notice by
either side.
Legal Implications
Again an Act of Parliament would be needed. This option would produce greater clarity and legal certainty than any of the others. It would also be consistent with the Chinese view of the present legal position, while allowing the UK to continue to conduct the internal affairs and external relations of Hong Kong as at present.'
30 March 1982
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11
7. Винона
F Burrows
Legal Counsellor
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