020/393/1
SECRET
120
HKK 040/1
30
13. 51
a
CLE
BRITISH EMBASSY,
PEKING.
6 November 1978
We must now drate
A
reply to the Governor's
Pl. spank fii
Lelkes.
राज
Mr Quarrie (rose)
The Thompson
RJT McLaren Esq
Hong Kong & General Dept
FCO
Keras Robins,
NEW TERRITORIES LEASES
1.
(15
In his letter of 24 October, the Governor asked for my views on the Chinese Government's possible reactions to various aspects of his proposed solution to the problem of New Territories leases.
2.
I agree with the Governor's point in paragraph 3 that any fixed term extension would be unacceptable to the Chinese. Peking telegram no. 612 sets out some of the considerations as seen from here.
3.
On paragraph 9 of the letter, I do not think that it matters particularly whether the initial action is taken in Hong Kong or in London. It is important, however, that the CPG should be clear that the Hong Kong Government are acting with authority. I therefore favour the idea of a covering Order-in- Council.
4.
On the form of the Order-in-Council (paragraph 11), on balance I would prefer the shorter form, omitting the passage in square brackets. It is just possible that a reaffirmation of the lawful means whereby The Queen has jurisdiction within the New Territories might provoke a disclaimer by the Chinese which would damage confidence.
5.
There is one further aspect we should consider, however. Indeterminacy has its attractions, but it might be misconstrued. It would be necessary to anticipate and correct any idea that the new formula implied resignation on HMG's part to an
SECRET
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/earlier