TNAG-2566-FCO40-3751-Agreements-between-the-Hong-Kong-Special-Administrative-Regi-1992 — Page 12

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various agreements. It is an area in which the Chinese will be able to exert some leverage. But not that much. There are good practical reasons for the agreements that we are likely to seek with advantages for Hong Kong as well as for the UK. Provided that we do not overtly challenge their position over sovereignty, they are likely to accept the need for the agreements. I do not think that the argument that the nearer we are to 1997, and thus the clearer the form of the SARG, would make it any less easy for the Chinese to claim to represent their views. They will continue to do that right up until the actual formation of the SARG. On the other hand, the nearer we are to 1997, the more practical rather than formal considerations may possibly influence Chinese attitudes. But it should not be left until too late. One of the subsidiary aims is to help build confidence in Hong Kong's future and we should not get ourselves into the position where we appear to be making these arrangements as an afterthought. I would have thought no later than 1995 for the timing of the approach to the Chinese, but that we should have got our thoughts well in order and most of our preparations made before then. If we decide to go for the option of covering much of this ground by legislation, I would have thought that the sooner we start on the process the better so as to get the practice firmly established before 1997.

Oly

RF Wye

Far Eastern Section

Research & Analysis Dept OAB 2/125 210 6219/6216 16 September 1992

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