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9. AN ALTERNATIVE SOLUTION MIGHT BE WHAT IS CALLED A PERIODIC
AUTOMATICALLY TENANCY. THIS WOULD BE A LEASE FOR A YEAR AT A TIME, RENEWABLE. IT WOULD NOT BE ENDED UNLESS THE LAND IN QUESTION WAS REQUIRED FOR PUBLIC PURPOSES. SUCH A LEASE WOULD PROBABLY BE LESS ATTRACTIVE TO INVESTORS THAN A STRAIGHT-FORWARD ONE FOR A FIXED PERIOD OF YEARS. BUT IT DOES HAVE THE ADVANTAGE THAT IT WOULD NOT AUTOMATICALLY END IN 1997, AND COULD NOT BE CHALLENGED IN THE COURTS.
10. THESE ARE ONLY GENERAL IDEAS. AT THIS STAGE I THINK WE NEED DO NO MORE THAN TURN THEM OVER IN OUR MINDS SO THAT WE CAN FIND SOME WAY FORWARD WHICH DOES NOT PREJUDICE CHINA'S LONG-TERM POSITION, BUT DOES MAINTAIN INVESTMENT IN THE NEW TERRITORIES.
MACLEHOSE
LIMITED
FED
HKr GD
PS/MR BLAKER PS/PUS
SIR-E. YOUDE MR DONALD
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