CRS 320
SECRET
DESKBY 14103az
PEKING 140818Z MAY 79
TO IMMEDIATE FCO
TELNO 443 OF 14 MAY
INFO HONG KONG
SECRET
with накочо (23)
MY 2 IPTS: FUTURE OF HONG KONG
HKGD
I shall
shall at the
люде
appropriate
full
need a
explanation of why legislation is needed
in the UK.
SPEAKING NOTE AMENDED FROM PARA 3 OF HONG KONG TELNO 566:
PARB
-1575-
"'AS THE GOVERNOR SAID TO DENG, THE LONG TERM FUTURE OF HONG KONG IS A MATTER TO BE SETTLED BETWEEN THE CHINESE AND BRITISH GOVERNMENTS. AS HE ALSO EXPLAINED, HOWEVER, THERE IS A SHORT TERM PROBLEM ABOUT LAND LEASES WHICH MUST BE TACKLED SOON IF
INVESTMENT IS TO CONTINUE UNABATED. WE INTEND THEREFORE TO
TAKE THE NECESSARY LEGISLATIVE STEPS TO ELIMINATE THE DATE
FROM EXISTING LAND LEASES IN THE NEW TERRITORIES AND TO SUBSTTM
ITUTE A MORE INDEFINITE FORM OF WORDS. THIS HAS TO BE DONE BY
LEGISLATION SINCE THERE IS AT PRESENT NO LEGAL CONCEPT OF A
LEASE WITHOUT A FIXED DATE: IT IS ALSO NECESSARY BECAUSE THOUSANDS OF EXISTING INDIVIDUAL LEASES WHICH MUST BE ALTERED BY A BLANKET PROVISION. IF LEGISLATION ABOUT LEASES IS TO HAVE ANY MEANING IT WILL HAVE TO INCLUDE PROVISION FOR THE GOVERNOR'S
ADMINISTRATIVE POWERS WITHOUT REFERENCE TO ANY PARTICULAR DATE. OUR PRESENT INTENTION IS TO DO THIS WHEVN THE LEGISLATIVE COUNCIL
RESUME IN CCTOBER, AFTER ANY RELEVANT ENABLING ACTION HAS BEEN TAKEN IN THE UNITED KINGDOM. IN ANNOUNCING THIS LEGISLATION
WE WOULD MAKE IT CLEAR THAT THE EFFECT WAS PURELY PERMISSIVE ON THE BRITISH SIDE AND WITHOUT PREJUDICE TO THE CHINESE POSTION
ON HONG KONG OR TO ANY ACTIONS THEY MIGHT TAKE CONSEQUENT TO THIS POSITION. SUCH LEGISLATION WOULD HOWEVER RELIEVE US FROM THE PRESSURE WE ARE COMING UNDER AS A RESULT OF THE LEGAL OBLIGATIONS OF AUDITORS AND ACCOUNTANTS CONCERNED AT THE LEGAL IMPLICATIONS FOR INVESTMENT OF THE ST DILY SHORTENING PERIOD OF EXISTING LEASES, THIS IS NOT A MATTER ON WHICH WE FEEL THE CHINESE GOV- ERNMENT NEED COMMENT, BUT WE WISH TO KEEP THEM INFORMED ABOUT
THE NATURE OF OUR PROPOSED ACTION AND THE REASONS WHY IT HAS
BECOME NECESSARY,
CRADOCK
FILES
HKG D
FED
PUSD
LAGAL ADVISERS
PSİMR BLARER SIR A DUFE MR CORYAZZI MR MURRAY
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