TR

4.

SECRET

-2-

The Attorney-General suggested that it might be better to wait until 1997 and then have a further Treaty if the Chinese were so inclined. Sir M MacLehose said that this would not be satisfactory. There was a problem which had to be dealt with now. Moreover, the Chinese did not recognise the 1898 Treaty and it was unlikely that they would be prepared to renew it formally. They might, on the other hand, be willing to drift past 1997. Clause 3 would make this possible on the British side.

5.

The Attorney-General asked whether it was possible for the Crown to grant property leases extending beyond the term of the head lease (ie the Lease of the New Territories). Mr Rushford explained that under international law there was no obligation upon the Crown to arrange its business in such a way that every- thing came to an end in 1997.

6. The Attorney-General asked whether, if Clause 3 were omitted, the Governor would think it worth proceeding on the basis of Clause 2. Sir M MacLehose said that he would, though the action would then have a much less favourable effect.

7. The Attorney-General said he would reflect on these explanations and would let the FCO know his conclusions as soon as possible.

Ruangwen

fee 157

19 July 1979

R JT McLaren

Hong Kong and General Department

сс PS

PS/Mr Blaker

Sir I Sinclair Mr Murray Mr Rushford

Mr Samuel, FED

We must await the Allomney

ما

General's comments.

A

1q/vii

SECRET

горой

p. a

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