TNAG-1259-FCO40-1599-The-Future-of-Hong-Kong---special-study-by-FCO--August-1982--1983 — Page 84

Reference

SECRET

6

21, 2014

Mr Morris

HKK04019

RECEIVED IN REGISTRY NO. 51

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5 MAY 1983

DESK OFFICER

INDEX

NIGHTRY

RA

Action Tel

in

CM418

Parana Lanal /Amplo - Egiphof Suda

ef

HONG KONG STUDY:

REVIEW OF ANNEXES

1.

I have been through Annexes G-O of the Hong Kong Study in conjunction with Mr Burrows, Mr Smith and Mr Burton. Generally speaking, I think most of them cover quite well the difficulties that might arise in the event of Hong Kong becoming an SAR, with or without sovereignty being retained by HMG. More detailed comments are given below, together with some

suggestions for areas where further consideration seems needed.

Annex G

Constitutional Position

2. I attach a copy with suggested amendments by Mr Burrows and myself. Statistics in paragraph 8-9 also need updating. Areas requiring consideration are listed at paragraph 18.

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Annex H External Relations

3.

This is a general statement of the position that does not need updating. Mr Walker is currently looking at previous examples of unusual administrative arrangements that may be relevant to Hong Kong. Consideration may need to be given to what effect a relinquishment of control by HMG would have on Kong Kong's interests in areas covered by treaties (some are listed in the Annex) entered into by HMG and applied to Hong Kong, where these are not covered by other Annexes.

Annex I

Currency and Finance

:

4. Quite a lot of updating would be required in paragraphs 6-13, both factually and to cover changed circumstances. A number of interesting questions

arise:-

a) given the political situation, how serious is the threat of a foreign exchange crisis (para 9)?

b) is the Hong Kong Government still considered as a prime borrower (para 10)?

CODE 18-77

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/c)