Dr D C Wilson Political Adviser

Government Secretariat HONG KONG

SECRET

90

Foreign and Commonwealth Office

London SW1A 2AH

10 May 1979

4kk ovol

RECEIVED IN REGINARY NO. 51

1 1 MAY 1979

DEK OF CE

INDEX

PA

Dear Travid,

NEW TERRITORIES LEASES

No

£11.5

1. I enclose a copy of a minute from Bill Quantrill suggesting that in the light of Deng Xiaoping's remarks about the future of Hong Kong during the Governor's visit, we might now drop the idea of indeterminate leases and start issuing leases in the New Territories on the same bases as those in the rest of Hong Kong.

2. My first thoughts are that we have gone too far down the indeterminate leases road to change horses nowk and that the Chinese would be very unlikely to wear the idea anyway. Perhaps you would let me know if you think differently; there has not been time for Tony Rushford to comment.

ever,

Yours

Room

SECRET

RJT McLaren

Hong Kong & General Department

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