As you know, the Governor of Hong Kong mentioned to

Vice Premier Deng Xiaoping during his visit to China that there was a short-term problem about land leases in the New

Territories, and that he proposed to take certain action to

deal with it. In case you have not already heard from Peking,

you should know that HM Ambassador gave Mr Song Zhiguang a

more detailed explanation about our intentions on 5 July.

A similar explanation is being given to the NCNA in Hong Kong. There is no need for the Chinese Embassy to take any action.

хочи But we thought it right to keep them informed.

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