TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 119

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servants could remain to help with the local

administration. But British jurisdiction over

Hong Kong would cease.

36. The PRC leaders will probably indicate that they expect

this to happen in 1997, and that they are not seeking any early

radical change. But they have not ruled out a date before 1997,

and they may well suggest that preparatory steps should be

agreed soon and introduced gradually so as to ensure a smooth

transition.

37.

In response the Prime Minister may wish to express the

UK's shared concern for the future welfare, stability and prosperity

of the territory and respect for the view that its eventual

future lies in closer association with the mainland of China.

The UK has no 'colonialist' ambitions, and the British Government

as such takes no revenue from Hong Kong, but HMG has a clear

duty to the people of Hong Kong deriving from 140 years of

responsibility for the territory.

Assurances

38. But the Prime Minister will then need to stress that the

key to the maintenance of confidence among international and

domestic investors, on which the prosperity and stability of

the territory depend, lies in the British connection.

that the present 'systems' will be preserved will not be enough,

at least until the Chinese have built up a long track record of

consistency. Any official announcement now of the Chinese plan

would immediately and seriously undermine confidence.

HMG nor the Chinese want this.

Neither

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/39.