SECRET
Copy for madon
UKKODO SUL/L.
Нек
RALIVED IN RESISTRY 60. 51
S
8 MAY 1979
‚tation on
INDEX
PA
Canon Take.
HCNG KONG:
THE PROBLEM OF LAND LEASES IN THE
no
CS
1. The present Chinese Government have never acknowledged the
19th century treaties under which nong Kong Island and parts of
f
Aowloon were ceded to britain in perpetuity, and the ew Territories
'' :
(the bulk of the colony) leasc for 9 years from 198. They regard the as un cual treaties imposed on China at a time of weakness. To the Chinese, the whole colony is Chincse territory temporarily under british administration. They have, however, repeatedly stated
A
that the question of the Territor's reversion to China is a matter to be settled by negotiation "when the time is rive'. hecy have given no firm indication when they think that tim vill be, but they are clearly aware that 1997 is a significent drte.
2.
In the meantime the present Chinese leréexani v lave let it be known that long song has a key role to play in the nchinvement of their modernization programme. The Territory provides about a
third of Chine's foreign exchange earnings and is or increasingly
Chinese important source of financial and commercial expertise. organisations are investing heavily in long Hong, and a growing number of Hong Long firms are becoming involved in joint ventures in China. China therefore has a major interest in the stability and prosperity of Long kong and the Chinese have been at pains to reassure local and foreign investors that China is satisfied with the status quo and has no early intention of changing it.
3. All this has had a favourable effect upon confidence in flong Kong. But there is one practical problem which cannot be solved
In the New Territories there by general assurances of this kind.
is no freehold: all land belongs to the Crown which has granted
/land
CE