TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 192

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no strong grounds for anticipating significant modification

to the institutional arrangements already described, in

the years up to 1997, it is much less certain that the

buoyant and expansionary climate for business which has

prevailed for so long can be maintained untouched by the

prospect of political changes of the kind examined below

or, possibly, even more radical. Particularly if the

process of negotiation is slow, confidence can be expected

to become increasingly shaky.

(i)

14.

Recognition of Chinese Sovereignty with Continuing

British Administration

If Chinese sovereignty over Hong Kong were to be

recognised by HMG but full British administration continued,

there would be no need for substantive change in banking

legislation or the powers and responsibilities of the Hong

Kong Government in financial matters.

15.

However, there could be a political need to change

the emblems on the currency but this would be a practical

problem (and relating to new issues only) of no major

significance. The Treasury's (and the Secretary of State's)

responsibilities in relation to the coinage might be judged

a political anachronism and so require repeal. The same

applies to the references in the Exchange Fund Ordinance

relating to the requirement to seek the Secretary of State's

authority for the purchase of securities and the borrowing

/powers

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