1

C

SECRET

778

Foreign and Commonwealth Office

London SW1A 2AH

Sir Murray MacLehose GBE KCMG KCVO Governor and Commander-in-Chief HONG KONG

3 August 1979

HER OUD/1

REVEIVED IN RAGISYOY NO. 51

IND

- 6 AUG 1979

DESK_OFFICER

No How I f

NEW TERITORIES LEASES

1. As you know, the Attorney-General has been consulted about the proposed Order in Council. He saw no objection to provision for indeterminate Leases on the lines of Clause 2, but expressed reservations about Clause 3 and said he would prefer to see it omitted.

2. In an attempt to dispel these doubts we arranged for you to call on the Attorney-General on 18 July, during your last visit to London. We learned shortly thereafter that the Attorney was not inclined to change his view.

3.

I reported the situation to Mr Blaker, with a recommendation that we should await Chinese reactions to the approach made to them by Percy Cradock on 5 July before making any further attempt to persuade the Attorney-General that Clause 3 should be include In endorsing this recommendation Mr Blaker commented that the Attorney might not have fully seized the political and economic points.

4. I note from paragraph 3 of your telegram No 1082 that the NCNA have promised a response to our approach. If this is positive - can reasonably be interpreted as not negative - as regards Clause 3 action, I do not think Ministers here will regard the Attorney-General's misgivings as conclusive.

5. In the meantime I enclose copies of the following, partly for the Embassy's benefit:-

a)

de Winton's letter of 16 July giving the Attorney- General's reasons for objecting to Clause 3;

SECRET

/b)

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