TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 112

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Scope for making the Territory a Special Administrative

Region (SAR)

30.

Whether an effective management contract could be

squared with the apparent Chinese intention to make the

territory a SAR of the PRC must depend on whether or not

the PRC would be prepared to allow the UK to administer

the Region. Making the territory a SAR would introduce an

unacceptable complication if it implied the exercise by

the PRC of sovereign powers. If the SAR status were purely

nominal it might not be. incompatible with the

satisfactory operation by the UK of a management contract.

But the positive co-operation of the PRC would be essential.

Detailed Studies

31.

Annexes G to O to this paper deal with certain key

areas. We have examined whether, in a form of management

contract, no change in the situation is either possible or

likely to be acceptable to the PRC or to HMG, what changes

could be contemplated and the difficulties which could flow

from change either in Hong Kong or in the UK. The areas

concerned are as follows:

Constitutional Position of Hong Kong;

G)

H)

External Relations;

I)

Currency and Finance;

J)

Defence and Internal Security;

K)

L)

Citizenship, Nationality and Immigration;

Legal System;

M)

External Trade;

N)

Civil Aviation and Shipping;

0)

Crown land leases in the New Territori

ies2.

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