(19)
80
00 PEKING
GR 600
SECRET
FM FCO 041705Z MAY 1979
TO IMMEDIATE PEKING
TELEGRAM JUMBER 247 OF 4 MAY
FO HONG KONG
YOUR TELNO 407: NEW TERRITORIES LEASES
Акконо RECEIVED IN
DARK
INDEX
·8 MAY 1979
No 23.7
I M
1. TEXT OUR TELNO 34 SAVING TO HONG KONG OF 7 APRIL 1S AS FOLLOWS:
INFO SAVING TO PEKING
FOR GOVERNOR
YOUR LETTER OF 10 APRIL: NEW TERRITORIES LEASES
1. WE HAVE NOW TAKEN ADVICE ON POSSIBLE REWORDING OF THE PROPOSED
ORDER IN COUNCIL. IT HAS OF COURSE BEEN AGREED ALL ALONG THAT ANY FORMULATION WE USE MUST BE CONSISTENT WITH THE CHINESE VIEW ON THE FUTURE OF HONG KONG. OUR UNDERSTANDING OF THAT VIEW HAS BEEN CHANGED BY DENG'S REVELATION THAT HE ENVISAGES A SCENARIO UNDER
WHICH HONG KONG WOULD COME UNDER CHINESE SOVEREIGNTY WHILE CON-
TINUING TO FUNCTION MUCH AS AT PRESENT. AS YOU POINT OUT, THERE
ARE CONSIDERABLE PROBLEMS TO BE OVERCOME BEFORE SUCH A SCENARIO
COULD BE WORKABLE. NONETHELESS WE SHOULD TRY TO ADEVISE A WORDING
FOR THE NEW LEASES THAT WOULD ENABLE THEM TO CONTINUE IN FORCE IN
THE EVENT THAT SUCH A CHANGE DOES TAKE PLACE.
2. THE SIMPLEST SOLUTION WOULD BE TO OMIT THE PHRASE QUOTE FOR SO
LONG AS HER MAJESTY MIGHT ADMINISTER THESE TERRITORIES UNQUOTE FROM
CLAUSE 2. THIS PHRASE WAS ORIGINALLY INCLUDED TO REASSURE THE CHINESE
THAT WE DO NOT ASSUME THAT BRITISH RULE IN HONG KONG WOULD CONTINUE
FOR EVER. ITS OMISSION DOES NOT WEAKEN THE LEGAL VALIDITY OF THE
CLAUSE. BUT IF YOU FEEL IT NECESSARY TO INCLUDE SOME WORDING THAT IN
EFFECT MEANT THE SAME THING WITHOUT ACTUALLY MENTIONING BRITISH RULE,
THEN WE SUGGEST SUBSTITUTING QUOTE FOR SO LONG AS THIS ORDER IS IN
OPERATION UNQUOTE FOR THE PHRASE QUOTED ABOVE.
3. CLAUSE 3 IS MORE PROBLEMATICAL. WE HAVE NOT BEEN ABLE TO DEVISE
AN AMENDMENT THAT WILL DEAL EFFECTIVELY WITH THE POWER TO LEGISLATE
FOR AND ADMINISTER THE NEW TERRITORIES AFTER 1997 WITHOUT REFERRING
TO CONTINUING BRITISH ADMINISTRATION. THE CHOICE THEREFORE IS BETWEEN
RETAINING THIS CLAUSE AT THE RISK OF PROVOKING CHINESE OBJECTION, OR
OMITTING IT AT THE RISK OF HAVING YOUR POWER TO LEGISLATE FOR THE NEW
TERRITORIES AFTER 1997 CHALLENGED IN THE HONG KONG COURTS. GIVEN
THAT WE ARE ADVISED THAT SUCH A CHALLENGE IF MADE BEFORE 1997 WOULD
FAIL, AND THAT THE CLAUSE IS UNNECESSARY IN ORDER TO ENABLE US TO
ACHIEVE OUR PRIMARY PURPOSE OF ISSUING INDETERMINATE LEASES, WE
SUGGEST THAT IN THE NEW CIRCUMSTANCES THIS CLAUSE SHOULD BE DROPPED
ALTOGETHER, LEAVING THE QUESTION OF LEGISLATIVE AND EXECUTIVE POWERS
AFTER JUNE 1997 TO BE CONSIDERED IN THE LIGHT OF CONTEMPORARY CIRCUM-
STANCES WHEN THAT DATE APPROACHES.
4. THERE IS A FURTHER QUESTION OF TACTICS WHICH YOU MAY WISH TO
DISCUSS WITH MCLAREN AND SAMUEL. THE INITIATIVE NOW RESTS WITH THE
CHINESE TO RESUME THE WHOLE DISCUSSION ON THE LEASES AND IT SEEMS AS
WELL TO GIVE THEM A GOOD PERIOD FOR REFLECTION BEFORE STARTING TO
CONSIDER THE POSSIBILITY OF REOPENING DISCUSSION THROUGH OTHER CHANNELS (YOUR PARAGRAPH 16). HOWEVER, GIVEN THAT DENG'S OBJECTION
TO THE OFFENDING PHRASE IS IN THE RECORD FOR CHINESE OFFICIALDOM TO
SEE, IT MIGHT BE BEST TO KEEP OPEN THE OPTION OF SEEKING TO POINT
OUT TO THE CHINESE THAT THE PHRASE WAS INSERTED AS SOMETHING OF A
REASSURANCE TO THEM, RATHER THAN DECIDE NOW THAT WHEN THE SUBJECT IS
REOPENED WE WILL INDICATE OUR READINESS TO DROP IT.
SOSFCA
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