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INVITATION TO GOVERNOR OF HONG KONG TO VISIT PEKING

1.

Last month the Director of the NCNA in Hong Kong conveyed

an informal invitation to the Governor to visit Peking. The Secretary of State agreed that Sir Murray MacLehose should accept the invitation in principle, leaving the timing open for the time being (my submission B of 11 January and FCO telegram No 60 to Hong Kong). This reply was

passed to the NCNA in Hong Kong on 22 January. The following day the Political Adviser was informed that the Chinese hoped the visit could take place as soon as possible, preferably in the spring; and that the Minister for Foreign Trade, Mr Li Qiang, would issue the invitation and act as host (Hong Kong telegram No 159).

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2.

Sir M MacLehose (Hong Kong telegram No 140) and HM Ambassador in Peking (Peking telegram No 109) have both argued strongly that the opportunity should be taken to raise the problem of property leases in the New Territories, and that if this is to be done there would be advantage in arranging for the Governor's visit to take place in March, before the visit which the Secretary of State is planning to make in April. This timing would enable the Governor to give the maximum help over the leases question before he completes his term of office in August.

3.

The Secretary of State's views are recorded in the Private Secretary's minute of 26 January. Dr Owen has agreed that

Sir Murray MacLehose should go to Peking in March and sound out the Chinese on the leases question.

4.

The practical problem posed by the expiry of property leases in the New Territories in 1997, and the method which we have in mind for dealing with it are described in paragraphs 5 to 7 of my submission

of 29 January. Further work is needed on some of the details, and it will be desirable for this to be largely completed before the

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