TNAG-1839-FCO40-2614-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 93

DRAFT

HONG KONG: OUTLINE MEMORANDUM FOR FOREIGN AFFAIRS COMMITTEE

1.

Background to negotiation of Joint Declaration

Brief history of Hong Kong (noting relevant Treaty and Conventions). Bring out fact that New Territories are subject to a lease with a fixed expiry date. Hong Kong Island/Kowloon Peninsula

not viable on their own. Hence unavoidable need to open

negotiations about Hong Kong's future.

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Position of the Chinese Government: whole of Hong Kong is Chinese territory. Should be settled peacefully through negotiations when conditions were ripe.

By late 1970s: increasingly urgent need to remove uncertainty over 1997 which threatened to undermine confidence and prosperity.

Stress that simply to ignore the 1997 deadline was not an option: that would have led to a steady erosion of confidence/sudden panic as reality of Hong Kong's future became closer and clearer: without a negotiated settlement, most of Hong Kong would revert

The remaining parts of Hong unconditionally to Communist China.

Kong would simply not be viable on their ownn.

Following Prime Minister's visit to Peking in September 1982, two sides agreed to begin negotiations.

2.

The Negotiations

Stress that HMG argued long and hard for retention of British administration in Hong Kong. But China insisted that continuation of British administration after 1997 was unacceptable.

Only then did HMG begin to explore possibility of alternative arrangements, which would guarantee Hong Kong's future prosperity

ARRADC