TNAG-1171-FCO40-1452-Future-of-Hong-Kong-1982 — Page 63

Mr Thomson

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c.c. Mr Williamson

FUTURE OF HONG KONG

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1. I was interested to read Mr Cox's minute of 24 May with an idea for a joint statement which might get over the problems of a sovereignty/administration deal.

2.

See (290

I have great sympathy for Mr Cox's general approach because I can see that we are likely to have to make considerable concessions so that the Chinese can demonstrate to their own people and internationally that there has been a real and not merely cosmetic change over Hong Kong. On Mr Cox's particular suggestion I see problems for Hong Kong in the area of confidence. In particular his proposals III 3 and 4 taken together would be likely to leave considerable uncertainty about the timing of any takeover.

3.

Nevertheless I agree that we have got to pursue this line of thinking, in other words to see how far we could go.in making the practical continuation of British administration palatable to the Chinese. I think that the main areas are likely to lie in Mr Cox's points on flags and a Chinese representative. We had in fact already written to the Political Adviser about this and other points some weeks ago. I imagine that he is waiting for the new Governor to settle in before replying but we will ask him for a reaction before too long.

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25 May 1982

R D Clift

Hong Kong and General Department

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