TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 230

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covered by a Hong Kong Government guarantee.

The predominant components of the total are the

Castle Peak A and B power stations. ECGD's

exposure on China is £216 million but could increase

significantly, eg if the United Kingdom won a major

share of the business on the proposed Guangdong

nuclear power station. If Hong Kong became a

Chinese SAR, with continuing British administration,

the question of the degree to which China assumed

responsibility for Hong Kong's existing and future

debts would be a question for future negotiation

when and if China resumed full jurisdiction.

b) Strategic Export Controls

China, but not Hong Kong, is at present subject

to COCOM strategic export controls. How far it

would be possible to continue this with a SAR

solution would require careful consideration.

Obviously the Chinese will oppose it.

7

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