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concessions which we might offer in return for an understanding with the Chinese are all matters which will require very careful consideration indeed. I attach a first attempt at an outline draft for this study which, if you agree, we might discuss with
the Governor.
6. The specifically legal issues can be pursued separately, at least at this stage. In the first instance I think it might be helpful to get the opinion of our own Law Officers, who will presumably agree with Mr Rushford, before sending any reply to Sir D Roberts' letter. We might also explore further the possib- ility of finding some legally practicable way of extending leases for an indeterminate period beyond 1997. Whatever the legal objections to the device proposed by Hong Kong it has its political attractions: for the Chinese, in that it would not commit them to an extension of the lease to a specific period, and for ourselves in that we would avoid the setting of a new deadline with all the
attendant hazards.
1
11 August 1978
cc:
Mr Rushford
Mr Samuel, FED
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R JT McLaren
Hong Kong and General Department