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I have been asked to consider the options available

together with the legal disadvantages of each in regard co Issuing Leches in the N.T. which would run beyond 1997. I have not nons.spred indeterminate leases as these would be legally invalid wunout legislation which we know to be unacceptable.

I have attached at float a long opinion covering the legal reasons

for what I state below.

2.

(a)

(b)

(c)

(a)

3.

і

The theoretical possibilities are as follows:-

Grant a freehold.

Grant a lease dated beyond 1997.

Grant a lease expiring pre-1997 but containing an option of renewal which would carry it beyond 1997. Grant a periodic tenancy, say from year to year, but containing a restriction on the landlord's right to determine it prior to say, 2010, or alternatively "not to be determined for the first 20 years", save for

a specific reason.

In my opinion, the fourth alternative is legally the least disruptive and most acceptable. A periodic tenancy is a tenancy from year to year or other set period, which continues until terminated by proper notice expiring at the end of a period.

4.

I deal now with the four alternatives:

(a) Grant a freehold

(1)

By Article XIII of Letters Patent

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• • •

may make and execute

"The Governor. grants and dispositions of any lands.......

that may be lawfully granted or disposed

of by us".

of

The Convention and the New Territories Order in Council of

1898 both contemplate sovereignty by the Crown being

exercised "for the time described in the said Convention", i.e. until 1997. The concept of freehold therefore may be SEOPES

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