TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 110

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continuation of British administration in substitution for

treaties whose validity is not accepted by China.

Negotiation

of such a 'management contract' would be regarded as a major

achievement in Hong Kong, and in the world at large.

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27. It would of course be necessary to justify such an

arrangement in Parliament. The essential points are:

(a)

(b)

(c)

it would meet the wishes of the local people;

Hong Kong owes its existence up to now to

constructive co-operation between Britain and

China;

the new arrangement would ensure the continuation

of effective British administration over the

whole territory as opposed to its early run

down and eventual loss.

Nature of Management Contract

28.

The UK would need to be given substantial powers to

act as 'caretaker' for the whole territory internally and

internationally for a term of years running into the next

century or, preferably, for an indefinite term, terminable

by either country on as long notice as possible. In

jurisprudential terms, this means that the UK would be

accorded under international law the exclusive right to

administer the territory and to conduct external relations

in respect of the territory. This need not preclude the

establishment of autonomous institutions in the territory or

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