Никоно

SECRET

VAS. 51

никог63

1 1 NOV 1980

11 NOV 1980

PA

MEETING BETWEEN THE SECRETARY OF STATE AND THE GOVERNOR OF HONG KONG 5 NOVEMBER 1980

INDLY

Present

& 19.11

༡་

KCMG MC

Sir Murray MacLehose GBE KCMG KCVO

The Rt Hon The Lord Carrington

Sir E Youde KCMG MBE

136

Mr G G H Walden

Mr R D Clift

Mr R MJ Lyne

FUTURE OF HONG KONG

NEW TERRITORIES LAND LEASES

Original at: HKK026/3

This Copy for:

Inforination only / Action on Para(s)

1. Sir M MacLehose recalled the exchanges with the Chinese

Government over the last 2 years. The Chinese were now

beginning to understand the nature of the short-term problem over land leases, including the significance of 15-year mortgages and thus of 1982. For the immediate future, and up to the Secretary of State's visit to Hong Kong, he did not think that a further official approach should be made to the

Chinese Government. But he would encourage business visitors from Hong Kong to China many of whom had contacts at a high

level in the PRC to make their concern known.

-

2. Lord Carrington asked when the deadline would come for us. Sir M MacLehose thought this would be about 1982. As the date approached the concern of investors in Hong Kong would become apparent to the Chinese. Until this happened, action on our part would be difficult. HM Ambassador in Peking took a different view. He favoured discusion of possible solutions

to the land leases question now. The Governor preferred to wait.

3. Lord Carrington agreed. It was better that pressure should be put on the Chinese by their own people than by us. However, he would have to raise the question during his visit

to China.

He

4. Sir E Youde said that Sir P Cradock's view was that, if we took no action, there would be no pressure on the Chinese. did not agree with this and shared the Governor's view.

SECRET

/5.

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