CONFIDENTIAL
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5. Summing up, the Secretary of State said that we had no
option but to continue with our present strategy of pressing for
a conference and, at the same time, seeking to persuade other
countries to take more refugees and use their influence with
Vietnam. He had noted the point about resettlement places.
Mr Blaker would discuss the question of an additional financial
contribution to UNHCR with Mr Marten.
New Territories Leases
6. The Secretary of State asked why changing property leases in
the New Territories to indefinite leases would promote confidence.
Sir Murray MacLehose said that the problem was the 1997 terminal
date of the leases. If that date could be removed with Chinese
concurrence, foreign investors and people in Hong Kong would take
it as an indication that British rule might continue after 1997.
In the meantime the 1997 date was already causing difficulties.
Lawyers and accountants for firms wishing to invest in Hong Kong
were already concerned about the inability of the Hong Kong
Government to grant leases longer than 18 years.
Distribution:
PS
PS/LPS
PS/Mr Blaker
PS/PUS
Mr Cortazzi
Mr Murray
HKGD
FED
Defence Department
CONFIDENTIAL