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Mr Murray
NEW TERRITORIES LEASES
1.
29 APR 1999
DESK OFRUEH
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the | Awenjoy
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Sir Murray MacLehose wrote to Mr Cradock on 22 February with suggestions on our next moves. Mr Cradock replied on 8 April.
The Governor's telegram No 549 asked for comments on these letters by 29 April in order to enable him to discuss the question with Mr Cradock in Hong Kong.
2•
I think that the Governor and the Ambassador are working on the right lines. They accept that a gradual approach is necessary but that we will need to prepare carefully for a further move by the Secretary of State when he visits Peking in the autumn.
3. The attached draft telegram, cleared with FED, contains some requests for clarification. It also comments on the stages through which our approach to the Chinese should develop. Although we shall as Mr Cradock says, have to move at the Chinese speed, we need to have as clear a view as possible of the practicable options in order to ensure that we do not advise the Secretary of State to make demands which might invite a flat refusal.
Both
4. The telegram includes a section on a possible political price to the Chinese for concessions on New Territories leases. the Governor and the Ambassador go some way towards accepting this possibility. I think they are right to face up to this question now. It is true that we may well not reach that stage for 18 months or two years (if indeed then). But on a contingency basis we should examine the legal considerations including any effects on the basis of British administration in Hong Kong and possible implications on citizenship questions. We also need to make sure that we gauge as accurately as possible the way in which confidence in Hong Kong could be affected. The subject was considered by the Governor and the Ambassador in a joint memorandum on possible Chinese responses enclosed with the Governor's letter of 21 December 1978. At that time they saw the possibility of an adverse effect on confidence unless a statement were coupled with very firm Chinese assurances.
1978 ble 5.
I see no need to submit to Ministers at this stage but we will almost certainly need to do so when we hear the results of the Governor's and Ambassador's discussions in Hong Kong.
Бир
25 April 1980
cc Mr McLaren FED
Discussed. Telegen
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R D Clift
Hong Kong and General Department
as amended to
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