FCO_49_622_PLANNING_PAPER_ON_HONG_KONG_1976 — Page 126

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HONG KONG

General

1.

Although Hong Kong is very much a going concern and, with the exception of a contribution to the costs of her defence, no economic liability to HMG, it poses a difficult political problem because:

2.

(a) it is by far the largest remaining colonial dependency and normal evolution towards independence is debarred by China which claims ultimate sovereignty;

(b) the Secretary of State is responsible to Parliament for its present and future welfare and yet our power to influence developments there is circumscribed;

(c) its economic success has created substantial local interests not necessarily compatible with those of Britain;

(a) Britain has a contingent obligation towards large and growing numbers of British subjects of Chinese origin resident there sensitive to any change suggestive of an end to British rule and the imposition of the harshly authoritarian rule of the mainland.

The problem is likely to become more acute

acute in the future if Hong Kong, as expected, continues to develop; as the

termination date of the New Territories lease (1997) approaches; and as the number of British subjects increases. The problem is also compounded by uncertainties over the succession to Mao Tse-tung in China. This paper attempts to outline a strategy for the handling of the problem over the next decade, and is divided into five sections dealing respectively with the British interest in Hong Kong; the Chinese interest; and Hong Kong's external relations, internal policies and relations with the United Kingdom. The main conclusions are:

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(a) that there is little or nothing that can be done to settle Hong Kong's long term future until the next generation of Chinese leaders have emerged and their policies been established but meanwhile HMG should avoid any action that may cause China to make difficulties for the Colony;

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/(b)

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