FCO_49_622_PLANNING_PAPER_ON_HONG_KONG_1976 — Page 15

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PLANNING PAPER ON HONG KONG

SUMMARY

1.

Hong Kong is a difficult political problem, which

is likely to become more acute as 1997 approaches. There are

both advantages and disadvantages to Britain in the present

connection. Even if the ultimate British interest may be to

disengage, meanwhile the over-riding consideration must be the

interests of the inhabitants of Hong Kong. All policies must

take this into account and aim at ensuring the maximum

prosperity and stability in Hong Kong at the time when

negotiations with China for Hong Kong's future must be

undertaken.

2.

Hong Kong is of great practical value to the CPR.

They have publicly declared that Hong Kong is Chinese territory

and that the problem will be settled when the time is ripe.

They are likely to be satisfied with the status quo for the

foreseeable future. We shall need to discuss the future of

the Colony with China well before 1997 probably in the mid 1980s. There is positive disadvantage in seeking to open

discussions meanwhile.

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3.

Meanwhile the Colony's own very considerable market for

imported capital and consumer goods could be of more practical

advantage to the UK if it was exploited more vigorously by

British exporters.

4.

The Paper suggests endorsement of a general policy

for social progress, most aspects of which have been accepted

in principle by the Hong Kong Administration, though there are

some which require further discussion with the Governor. The Paper proposes an enlargement of the Legislative Council and the

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