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Mr Cortazzi

SECRET

20 J 1979 Mckaren

We discussed with

IND

do

Joke Governor.

HONG KONG: NEW TERRITORIES LEASES

1.

The Governor will wish to discuss this question during his 15/vi visit. He will hope to reach agreement at official level on the action to be taken following his visit to Peking.

Reference Documents

2.

3.

I attach copies of:-

a) the telegrams reporting Sir M MacLehose's discussion

with Deng Xiaoping;

b) the more important exchanges of telegrams since the

Governor's visit;

c) the latest version of the draft Order in Council.

Subject to Ministers' views, we will need to decide:-

a) Substance

i) whether legal action should be confined to the

leases or whether provision should also be made for the continuing administration of the New Territories after 1997;

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ii) whether there should be an Order in Council in

the UK as well as legislation in Hong Kong (this will depend largely on the answer to (a) Order in Council will be necessary if there is to be provision for continuing administration, desirable otherwise).

b) Tactics and Timing

i) What should be said to the Chinese, when, and

by whom.

ii) The timing (provided the Chinese have raised no

objection) of a public announcement and subsequent legislative action. The Governor has proposed an announcement in his speech at the opening of the new session of the Legislative Council in October.

12 June 1979

сс

Mr Murray

junghen

R J T McLaren

Hong Kong and General Department

Mr Rushford, Legal Advisers

Mr Samuel, FED

SECRET

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