TNAG-1259-FCO40-1599-The-Future-of-Hong-Kong---special-study-by-FCO--August-1982--1983 — Page 45

Separte copres to:

Miss Walker

Mr Burton

SECRET

HKK0409

Reference HKK 040/9

Fly

cmol8

REVISION OF ANNEXES TO THE HONG KONG STUDY

1. On 30 June, Mr Clift discussed with Mr Morris and myself what further work was required onthis subject. We have now reached the stage where we will shortly be seeking authority from the Prime Minister to discuss with other Whitehall Departments the specific areas which may be covered in the talks with the Chinese. What we need to do, therefore, is to prepare within the Department points to raise with other FCO and Whitehall Departments so that we can determine what HMG must hold on to in order to retain effective control over Hong Kong and what could, if necessary, be conceded to the Chinese negotiations on the assumption that we reach an agreement whereby we concede sovereignty over the whole of the territory, but retain ultimate control of the adminis- tration (eg appointment of Governor).

-

2. Mr Clift would like a folder to be prepared, with the situation in each of the areas covered by the Annexes (plus Pensions) summarised on one sheet of paper. This should cover:

3.

(a) the FCO and Whitehall Departments with whom we shall

need to discuss the paritcular subject (with names of individuals where known);

(b)

(c)

(a)

HMG's bottom line position;

possible concessions;

a list of questions to be put to the other Departments on the implications of (b) and (c).

I suggest the following division of work:

Mr Hoare

Miss Walker

Mr Burton

Constitutional Position Legal System

Pensions

Aviation & Shipping

External relations

External trade

Citizenship, Nationality &

Immigration (Miss Walker to be

consulted on immigration from China)

Currency and Finance

Defence and Internal Security

All drafts should reach me by 13 July. Please note that at this stage you should not consult anyone outside the Department.

4.

Perhaps we could discuss this briefly to make sure everyone is clear as to what is required?

4 July 1983

CODE 18-77

cc Mr Clift

Mr Morris o r

Khoffere

RJ F Hoare

Hong Kong Department

SECRET

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