de

#%. here, though, would be the major shareholder's (ie. Chinc Resource's reaction to the relatively short life of any such Modification or re-grant of the lease (for the reasons given in para no of Dr. Wilson's letter) Should de Hong Kong Govenmet take this opportunity to put to the Chinese the possibility of sud- leases in the New Teritores going beyond 1997?" a The occasion could at least prompt a discussion with de Climese on de difficulties faced by landlorels in the New Tevitares.

may

Jhemselves

An de other hand, China Resources recognise the political implications of the deal dey have become involved in and decide to avoid facing them by selling their shares at an earlier stage, simply taking de profits from a piece of land speculation

is an

no

Ratin

(v). Hong Kong Government to decide unilaterally to issue leases of land in de New Territares as for land on the Island (ie. 99ys from date of issue). Since de Chinese would claim that de 1898 Covention of Peking

unequal" treaty anyway, were should be for their distingiushing between de validity of leases which are written to expire before or after 1997 (although all Chinese spokesmen have been exceedingly ambivalent about to significane of that year). The difficulty would be ours, presumably, in the legal sause of reconciting such leases with de fact that the present constitutional arrangements for the New Tewitäre's expire in 1997. The Chinese would appear to have rejected as "unnecessary and inappropriate" any

post which alters these constitutionl arrangements provides formally for de extensions of British administrations of de New Teritories after 1997.

move on ou

response sort

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of

problem

4. In formulating these ideas I have done so on the assumptions

that what we are really after is a more constructive we have had so far from de Chinese, Failing any

periodic diplomatic reminders that a response to ow exists, we would with to examine other ways of diciting respouse. The problem is getting

~ ball-game started, not finding

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by asking Кит

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