TNAG-1170-FCO40-1450-Future-of-Hong-Kong-1982 — Page 28

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Mr Clift

HK&G Dept

FUTURE OF HONG KONG

SECRET

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RECEIVED WREYMART NAV BI

15 APR 1982

DESK OPPHEN

INDEX

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HKK 040/1

(2007) X 15/4

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2314

No

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Pas 3014

163

1.

My minute to Mr Morris of 30 March shows that all the options then put to me would involve an Act of Parliament. My undated minute (in fact written on 24 March 1982) shows that options C and D of those then shown to me would involve an Act of Parliament. Under options A or B an Act might be avoided. The position seems to me to be as follows:-

Option A

2.

This reads:-

144

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"The Chinese would talk at a high level to major local investors in Hong Kong to encourage them to retain and increase their investments. They would do the same with selected foreign investors, banks, industrialists and developers. They would reinforce assurances about capitalism continuing in Hong Kong well into the next century and imply that a change of status in 1997 was unlikely".

It

229

There would thus be no clear agreement with the Chinese. appears that our plan would be to continue to administer the Leased Territories after 1997, for as long as the Chinese acquiesced. As Mr Rushford explained in his minute of 15 October 1981 we could proceed either by way of annexation, in which case a prerogative Order amending the 1898 Order in Council could be the appropriate domestic instrument, or by way of exercising foreign jurisdiction in the formerly leased territories while we remained there on sufference, in which case an Order in Council could be made under the Foreign Jurisdiction Act 1890.

Option B

3.

This reads:-

"Declaration by the Chinese that, because Treaties unequal 1997 irrelevant; Hong Kong would revert to China when the time was ripe, with the clear understanding that British administration would continue beyond 1997."

Again there would be no clear agreement with the Chinese, and we would simply continue to administer the formerly leased territories for as

/long

SECRET