Is there any source from either sides to back this story? If the British did make that "offer" in the 1970s, what were they fighting for initially (refusing to return) in the 1980s?
IIRC, I read this in Lee Kuan Yew's own "The Singapore Story," Volume One.
The story I have heard was that some PRC leaders wanted to recover Hong Kong before 1997 using force if necessary. The idea was on the table in 1949 already which was put aside by Mao due to the value of Hong Kong being the only channel for PRC to gain access to the west (finance and tech).
Yes, that's part of waiting for the British to further develop the city -- why take on the responsibility yourself when Little Britain is already forced to do it.
My guess is that the idea maybe brought up in late 1960s and early 1970s after the British killed many pro-PRC protesters in 1967's Hong Kong turmoil but then was put aside again for the same reason as in 1949. The proposed forceful means included but not limited to cut off power and water supply to Hong Kong. I heard this measure from my history teach in school.
It was a socialist government at the time (Harold McMillan or some-such?), the same that forsook Rhodesian apartheid...governments and policies can change and certainly Little Britain's gotten much more conservative with The '80s....
The British has never ever "offered" anything.
"Wanted?" "Suggested?" "Dangled?" "Proffered?" "Attempted?" "Ventured?" "Evinced the idea?" "Broached the possibility?" "Provided a way?"