SECRET
Некото
RECEIVED 2
2 OCT 1980
TALKS WITH THE CHINESE FOREIGN MINISTER ON 2 JCTOBER 1980
BRIEF NO ̊4(a):
INMEN
jmmon Token
$2.50
LONG-TERM FUTURE OF HONG KONG AND INDIVIDUAL
LAND LEASES IN THE NEW TERRITORIES
118
POINTS TO MAKE
1.
Noted remarks of Deng Xiaoping, Hua Guofeng and Gu Mu that
investors in Hong Kong should 'put theirs hearts at ease', but helpful
to discuss with Huang Hua distinction between long-term future of
Hong Kong and short-term problems for investors.
2..
Long-term problem is delicate and difficult. Although not too
soon to begin thinking about it, need not deal with this now,
3.
Short-term objective is to sustain Hong Kong's prosperity
and stability in the meantime. There is plenty of scope for mutually
beneficial cooperation, for example, in the fields of water supply,
electricity and other major projects..
A.
But a key problem is how to maintain willingness of people
and firms to invest in the New Territories. To maintain such invest-
ment will shortly be difficult because of shortening period of
individual land leases. Way must be found to give investors rights
to property which could continue beyond 1997 without prejudicing
Chinese basic position. This problem will be critical from mid-1982
since the standard mortgage in the Territory is 15 years. Arrangements
to deal with the question of individual land leases in the New
Territories are desirable by end of 1981. We think a step-by-step
approach working on individual cases could create these.
f. Depending on Huang Hua's response ]
5.
The short-term technical matters cannot be put off for too long:
We may revert to this subject when both sides have had time to think.
SECRET