TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 30

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7. YOU SHOULD NOT, REPEAT NOT, BE DRAWN INTO SPECULATION ABOUT HONG KONG'S FUTURE OR THE POSSIBLE OUTCOME OF TALKS, AND YOU SHOULD STICK AS CLOSELY AS POSSIBLE TO THE ABOVE. YOU SHOULD AVOID MAKING TOO MUCH OF THE TREATIES (PARAGRAPHS 8 AND 11) OR ANYTHING WHICH MIGHT PROVOKE UNFAVOURABLE COMMENT OR REACTION FROM THE CHINESE WERE IT TO GET BACK TO THEM, AS THIS MIGHT DAMAGE CONFIDENCE IN HONG KONG.

HISTORICAL BACKGROUND

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8.

ALTHOUGH HONG KONG IS A BRITISH DEPENDENT TERRITORY (AN EXPRESSION PREFERABLE NOWADAYS TO BRITISH COLONY) THE UK HAS SOVEREIGNTY IN PERPETUITY ONLY OVER THE ISLAND OF HONG KONG, ONE OTHER SMALL ISLAND (STONECUTTERS) AND THE KOWLOON PENINSULA. THESE WERE CEDED TO THE UK BY CHINA UNDER THE TREATY OF NANKING (1842) AND THE CONVENTION OF PEKING (1860).

9. THE NEW TERRITORIES, WHICH COMPRISE MORE THAN HALF THE POPULATION AND 92 PER CENT OF THE LAND AREA OF HONG KONG, ARE HELD UNDER AN INTERNATIONAL LEASE FROM CHINA, UNDER THE SECOND CONVENTION OF PEKING (1898). THIS IS DUE TO EXPIRE ON 30 JUNE 1997..

10. UNLESS OTHER ARRANGEMENTS CAN BE MADE WITH THE PEOPLE'S REPUBLIC OF CHINA (PRC) THE UK WILL BE OBLIGED TO RELINQUISH THE NEW TERRITORIES WHEN THE LEASE EXPIRES IN 1997. SO GREAT IS THE ECONOMIC INTER-DEPENDENCE OF THE CEDED AND LEASED AREAS THAT THE CONTINUED SEPARATE EXISTENCE OF THE CEDED TERRITORIES IS NOT CONSIDERED VIABLE.

CHINESE POSITION

11.

THE PRC HAS CONSISTENTLY MAINTAINED THAT HONG KONG IS PART OF CHINA, AND THAT THE TREATIES UNDER WHICH IT WAS CEDED AND LEASED ARE 'UNEQUAL TREATIES' IMPOSED BY FOREIGNERS AT A TIME OF CHINESE WEAKNESS. IN CHINESE THINKING HONG KONG'S FUTURE IS CLOSELY LINKED WITH THAT OF TAIWAN AND MACAO, BOTH OF WHICH

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