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DESK BY FCO 0238002 JULY
DESK BY PEKING AND GOV HONG KONG 02003BZ JULY
FM KUALA LUMPUR 011735Z JULY
$2
Akk ovo!!! Акк
امه
NY NO. AN
2 JUL 1979
TO IMMEDIATE FCO
TELEGRAM NUMBER 235 OF 1 JULY
по
21.7
INFO IMMEDIATE PEKING AND GOVERNOR HONG KONG
FROM PRIVATE SECRETARY FOR LEVER
126 MIPT: UK LEASES IN THE NEW TERRITORIES
1. FOLLOWING IS TEXT OF DRAFT MINUTE TO THE PRIME MINISTER
BEGINS
QUOTE
WHEN YOU SAW THE GOVERNOR ON 15 JUNE, WE DISCUSSED BRIEFLY THE QUESTION OF LAND LEASES IN THE NEW TERRITORIES.
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MOST OF THE TERRITORY OF HONG KONG ( THE NEW TERRITORIES ) WAS LEASED FROM CHINA FOR 99 YEARS UNDER AN AGREEMENT SIGNED IN 1898. THE
CHINESE CONSIDER ALL THE TREATIES CONCERNING HONG KONG, INCLUDING THAT ONE, AS QUOTE UNEQUAL UNQUOTE AND DO NOT RECOGNISE THEIR VALIDITY. HOWEVER, BECAUSE OF THE 1898 AGREEMENT, THE MANY
THOUSAND LAND LEASES GRANTED BY THE CROWN IN THE NEW TERRITORIES
ARE ALL WRITTEN TO END IN 1997.
THE EVER SHORTENING PERIOD OF THESE LEASES IS BEGINNING TO AFFECT INVESTMENT DECISIONS. UNLESS SOMETHING IS DONE WITHIN THE NEXT FEW YEARS, INVESTMENT AND CONFIDENCE WILL BE SERIOUSLY AFFECTED. THE PROBLEM IS NOT YET ACUTE. NEVERTHELESS NOW IS A PARTICULARLY
GOOD TIME TO TACKLE IT. OUR CURRENT RELATIONS WITH CHINA ARE GOOD. LEADERS SUCH AS DENG HAVE MADE IT CLEAR THAT THEY NEED HONG
KONG'S CONTRIBUTION TO CHINA'S MODERNISATION AND WANT TO PRESERVE
INVESTMENT CONFIDENCE. BOTH THE GOVERNOR HIMSELF AND OUR AMBASSADOR
IN PEKING STRONGLY BELIEVE THAT SUCH A FAVOURABLE COMBINATION
OF CIRCUMSTANCES MAY NOT RECUR.
THE PROPOSED SOLUTION TO THE LAND LEASES PROBLEM IS THAT THE
HONG KONG GOVERNMENT SHOULD GRANT LEASES WITHOUT A FIXED TERM
AND ALTER EXISTING LEASES TO THE SAME EFFECT. AT THE SAME TIME,
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