TNAG-2493-FCO40-3625-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1992 — Page 18

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spirit of the MOU and take unilateral actions, China would be firmly opposed. Britain would have to shoulder any

consequences.........the Chinese side sternly points out that there have to be consultations on any franchise which extends beyond 1997 before these can be given out. Otherwise they

will all be void after 1 July 1997".

(iii)

Comments in the Chinese language media. The latest

threats (quoting unidentified, Chinese sources) are that:

if developments were becoming even more unfavourable to the Chinese "early takeover" would be an increasing possibility.

- in such a scenario, the sending of PLA troops to Hong Kong

could not be ruled out, although the principled position of

senior levels of the Chinese side was to implement the Basic

Law in Hong Kong no matter what happened;

-

if events did not deteriorate that far the Chinese response

would be a policy of "non-convergence". That would involve setting up the SAR Preparatory Committee as early as 1995 to establish a new post-1997 political framework; (a separate report suggested that the NPC Standing Committee might be convened in December to announce the setting up of the SAR Preparatory Committee or a similar body; this would meet on the mainland rather than in Hong Kong and might operate as a

shadow administration).

There would also be a policy of non-cooperation on

Chinese.statem.PETER

JEB

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Redacted under FOI exemption 27(1)