TNAG-2119-FCO40-3025-Future-of-Hong-Kong-general-1990 — Page 3

All these involve the acti

i) elements of zUTUA

trust confidenca and faith, which I ass very littin

between

che parties.

Approaching 1997

and

during theta

transitional

period, major important decisions have to be made or will ba

rade affecting present and future of Hong Kong. Hence, it

is important to be on solid ground to define what type of

decision may be subject to People's Republic of China

Government ́æ veto power or that she has no veto power

If we go by history,

China, has on occasions too

the

numerous to ramenber says that sovereignty over Hong Kong

belongs and has also belongs to China. sino British Treaty

in the 18th Century W** invalid, signed under duress.

Hence, V.K. right to administar Hong Kong derives from

Joins Declaration.

administer Hong Kong on behalf of People's Republic of China

of China as the

If that argument follovs, V.K.

shall be responsible to People's Republic

sovereign state.

(legal

IS we adopt another approach. #y the

Declaration, U.K. is conferred with the sovereignty,

title) to Hong Kong with

Kong with People's

People's Republic of China

beneficiary, then fiduciary duty

exists to administer Hong

Kong for

the benefit

of People's

Republic of China, the

tion.