Mr Stratton
Parliamentary Unit
CONFIDENTIAL
HKK. RECEIVED IN REGISTRY NO.
6 AUG 1979
DESK OFFICER
165
PARLIAMENTARY QUESTION: HONG KONG: MR ROBERT PARRY MP
1. I submit a draft reply to the attached Parliamentary
Question about investors' confidence in Hong Kong put down
Liverpool, Scotland Exchange)
by Mr Robert Parry MP (Labour
for Written Answer on 26 July.
(There is clearly a typing
error in the Question, which should refer to "post-1997" leases").
2.
Mr Parry's Question comes uncomfortably close to the truth.
While it would be an exaggeration to speak of a "crisis in
investors' confidence", the inability of the Hong Kong Government
to issue property leases in the New Territories extending beyond
1997 is likely to cause increasing problems as time goes on,
A detailed and we are in fact planning to take remedial action.
explanation of what we have in mind has been given to the Chinese
by HM Ambassador in Peking following an earlier approach by the
Governor during his visit to China.
Providing the Chinese raise
-
no objection and this cannot be taken for granted the present
intention is to introduce legislation in Hong Kong and (by means
of an Order in Council) in the UK in the Autumn.
3.
While the need for action of some kind to deal with the
leases question is a matter fairly frequently aired in business
CONFIDENTIAL
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