SECRET
6. The fact that the Crown has only a limited tenure of a
territory under an international lease operating for a specific
term of years does not oblige the Crown, in making provision for
the government of the territory, to limit the operation of the
provision to that term of years.
7. Although no example comes to mind, it is submitted that the
Crown's general legislative or constituent powers under the Royal
prerogative can be exercised on a hypothetical footing, ie provision
may be made to cover the contingency that the Crown may be in
occupation of a territory after some future date, although no firm
arrangements for such occupation have yet been made.
8. There is a reasonable political prospect that the Crown may
remain in occupation of the New Territories after 30 June 1997 in
spite of the expiration of the term of 99 years specified in the
Convention of 1898 and referred to in the Order of 1898, although
in the absence of an agreement with China sanctioning the further
occupation the Crown cannot at present claim the right to do so
under international law.
9. It is submitted that the Crown may properly take cognisance
of this political prospect in exercise of the Royal prerogative
in external affairs and, in the light of its policy in external
affairs, make contingent provision in advance for the government
of the New Territories on the basis of a formula such as "for so
long as the Crown administers those Territories" even if the Crown
cannot as yet claim a right under international law to occupy the
New Territories after 30 June 1997.
10. Such a provision could not give rise to any legal consequences
in municipal law until 1 July 1997 and it should not give rise to
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