TNAG-1172-FCO40-1453-Future-of-Hong-Kong-1982 — Page 108

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ANSLATE TRESS PRINCIPLES INT. SPECIFIC FOLLOWING APE EXAMPLES OF THE KIND OF ITEMS WHICH

IN A FINANCIAL AND LOGISTICAL PACKAGE:

CVILION OF WHARE AND GO DOWN FACILITIES FOR THE EXCLUSIVE

TO OF SELECTED OPINES AGENCIES.

E PLACIT OF A PROPORTION OF THE HONG KONG GOVERNMENT'S

اتمة

RESERVES CN DEPOSIT WITH THE HONG KONG BRANCH OF THE BANK

TICAL

OF CHINA.

(C) THE INVESTMENT OF A PROPORTION OF THE FISCAL RESERVES IN CHINA, POSSIBLY IN THE FORM OF PROJECT LOANS FOR E G THE GUANGDONG NUOI DAR POWER STATION R THE EXPLOITATION OF COAL RESERVES IN

SUIZHOU.

(I) THE ESTABLISHMENT OF A TRUST FUND INTO WHICH A FIXED PERCENTAGE

OF KING KONG GOVERNMENT REVENUES WOULD BE PAID. FUNDS FROM THIS COLLD BE MADE AVAILABLE TO CHINESE AGENCIES IN HONG KONG TO

FILANGE E O THE FROVISION OF WHARF FACILITIES ( AN ALTERNATIVE

TO THEIR PROVISION FREE - SEI (A))

津

I MUST EMPHASISE THAT THESE ARE PRELIMINARY IDEAS ONLY.

FOR

OEVIOUSLY REASONS WE HAVE NOT BEEN ABLE TO CONSULT THE EXPERTS.

THEY WOULD CLEARLY NEED TO BE EXAMINED CAREFULLY AND IN DETAIL

BEFORE USE COULD BE MADE OF ANY OF THEM IN NEGOTIATIONS. SOME MIGHT

WELL PROVE TO BE NON-STARTERS (EG (0) IS UNLIKELY TO BE FAVOURED FIRE).

FLAGS.

I DOUBT WHETHER THE QUESTION OF FLAGS WOULD FEATURED LARGE IF THE CHINESE WERE PREPARED TO ACCEPT CONTINUING BRITISH ADMINISTRATION

(THE FORTUGUESE FLAG FLIES ABOVE SOME PUBLIC BUILDING IN MACAO). BUT I AGREE THAT IT COULD COME UP AND THAT WE SHOULD BE PREPARED.

OUR PRELIMINARY VIEWS ARE:

(A) A!

ARRANGEMENT WHEREBY ONLY THE CHINESE FLAG FLEW IN HONG KONG WOULD NOT BE COMPATIBLE WITH BRITISH ADMINISTRATION AND WOULD NOT

BACCEPTABLE.

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(B) IT MIGHT BE ACCEPTABLE FOR BOTH THE BRITISH AND THE CHINESE FLAGS TO FLY TOGETHER PERHAPS ON SEPARATE FLAG POLES (IE NOT ONE ABOVE THE OTHER). BUT WOULD THIS APPEAL TO THE CHINESI? (3) A SPECIAL HONG KONG FLAG MIGHT BE A FOSSIBILITY. BUT THE EXISTING ONE MIGHT NOT BE ACCEPTABLE TO THE CHINESE, AND A NEW

ONE CASED ON THE CHINESE FLAG WOULI BE VERY DIFFICULT FOR US.

IN ANY CASE THE CHINESE MIGHT DISLIKE THE IDEA OF A SEPARATE

FLAS AS SMACKING TOO MUCH OF THREE CHINAS''

•

(D) THE ANSWER MIGHT LIE IN AN UNDER-TAKING ON OUR PART TO EXERCISE

RESTRAINT IN THE DISPLAY OF THE UNION FLAC.

(E) IF ABSOLUTELY NECESSARY, WE COULD PROBABLY WEAF AN AGREEMENT WHEREBY TO FLAGS WERE FLOWN FROM PUBLIC WILDINGS IN HONG KONG

EXCEPT GOVERMENT HOUSE. BUT WE COLLDN'T OF COURSE PROHIBIT THE

DISPLAY OF THE UNION FLAG ON FRIVATE PREMISER, ANY MORE THAN WE

COULD IMPOSE AN EFFECTIVE BAN ON THE FLING OF THE NATIONALIST

FLAG.

12. I HAVE SHOWN THIS LETTER TO THE CHIEF SECRETARY IN DRAFT.

WE HAVE NOT THOUGHT IT NECESSARY TO CONSULT THE VERNO V AT THIS

STAGE BUT I WILL LET YOU KNOW IF HE DISAGREES WITH ANY OF THE

ABOVE.

SIGNED R J T MOLAREN.

ANNA