TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 249

HICK 040/3

RECEIVED IN REGISTRY HO. 51

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6 SEP 1982

DESK OFFICER INDEX

REGISTRY

Action Takan

33

Mr Giffard

Kara PS/Low Belstrand

Panola

cc PS/Lord Belstead

PS/PUS

Sir J Bullard

Sir I Sinclair

Mr Rushford

Mr Donald o/r

Mr Walden, Planning Staff Mr Thomson, FED

FUTURE OF HONG KONG: SPECIAL STUDY FOR THE PRIME MINISTER

1.

The

At her meeting with the Secretary of State on 28 July

the Prime Minister instructed that a study on the future of Hong

Kong should be prepared. The PUS's minute to Lord Belstead of

29 July provides the terms of reference for this study.

aim is to outline the problem, suggest possible solutions and,

in particular, to discuss the implications for HMG of any changes

which might be recommended.

2.

I now submit the study which has been prepared under

Lord Belstead's supervision. The main paper, after describing

the problem of confidence posed by the approach of 1997, examines

a number of options which are either impracticable or unacceptable

to HMG (eg independence or the probable Chinese preferred solution

of an autonomous Special Administrative Region of China with no

links to the UK). It stresses the difficulty of reconciling

the requirements for continued confidence in Hong Kong with the

Chinese position on sovereignty but concludes that an acceptable

solution would be a 'management contract' under which there were

full guarantees of continuing British administration in return

/for

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