LUNI IDLINTIAL

3

seek legal advice on the ceding of sovereignty this might involve, and the repercussions this would have on nationality law and other legislation. He would also seek confirmation that HKG has the power to issue leases beyond 1997 without additional legislation. The renewal of extant leases and the issue of new ones beyond 1997, if tacitly agreed by PRC, would assist in the building up of confidence. However individual disputes might damage these and PA noted that examples of possible disputes had previously been passed to the FCO for information.

CHER BUSINESS

10.

a)

b)

c)

Dates of Secretary of State's visit had not been confirmed but it was agreed that there was ho strong reason for him to arrive in Hong Kong before going to China rather than after if this was more convenient.

Mr Clift sked to be kept informed of assessments of investment in Shenzhen and Shekou. Although it was too early for firm conclusions to be drawn on whether there was a political motive, pattern might begin to feinerge.

Mr Clift indicated that he would wish to visit Hong Kong about once every six months initially.

i

7 March 1980

CONFIDENTIAL

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