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Chinese Government agency or official organisation in
Hong Kong for a fairly lengthy period. We would want to
follow this with another lease to a non-Chinese organisation.
This would obviously be more attractive to investors.
4.
One method of avoiding naming any specific date
might be to issue periodic leases for one year which would
be automatically rolled forward annually and have no
termination bar unless the land in question were required
for 'public purposes'. This has political and legal
attractions although investors may find such leases less
useful than long-term fixed leases. In this case too
it would be helpful if the first lease were in favour of
a Chinese agency or official organisation.
5.
The alternative would be a fixed-term lease running
beyond 1997, say for 25 years. Under British law there
would need to be a legal basis for this to meet a challenge
eg by a sub-lessee. The alternatives would be to wait until
such a challenge occurred and then legislate by Order in
Council, or to pass legislation. Such legislation would
be very simple and would not need to refer to continuing
British administration.
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$4200(22454)DO 0532198 300M 7/79 GWB LTD.GP 870