BY BAG
布政司署
香港下亞畢道
本署檔號 OUR REF
* Your Ref.:
R D Clift Esq
HK&G Dept
FCO
lees
fecte,
SECRET
59
GOVERNMENT SECRETARIAT
LOWER ALBERT ROAD
HONG KONG
неконо
Enli
No
TO July 1980
BY
ith 1918 Awiges
еее
New Territories Leases
The Governor, in his letter of 7 July to Alan Donald, said that we would be writing again about how to deal with post 1997 leases if a Chinese organisation asked for such leases (eg in the Tin Shui Wai context) and if we reached some form of agreement with the Chinese that they should be issued.
2.
We have yet to see the FCO Legal Adviser's comments which were to have been enclosed in your letter to me of 16 June (HKK 091/1) and which I asked for in Hong Kong tel no 796 of 23 June. Meanwhile however we too have been looking at the legal problems. The Attorney General has prepared a paper giving various options and a legal commentary on them. This is enclosed.
3.
On the assumption that legislation should be avoided if at all possible because it is unpalatable to the Chinese, the options come down to the following:-
(i)
(ii)
Post-1997 leases for a fixed term of say 20-25 years. Advantages: easy to understand both for the Chinese and locally; good for confidence if unchallenged. Disadvantage: legal validity might be challenged.
Periodic leases with a termination bar dated 20-25 years after issue. Advantages: no legislation required; implies continuity; not, in our AG's opinion, liable to successful challenge in court. Disadvantages: complicated
GS
Gh
75