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SECRETARY OF STATE'S VISIT TO CHINA: 1-5 APRIL 1981
BRIEF NO 8(a): FUTURE OF HONG KONG
POINTS TO MAKE
FOR HUANG HUA
1. When we met in London in October I mentioned problem of
preserving confidence in Hong Kong.
Present system whereby individual
land leases in New Territories expire in 1997 an important factor.
Hope we can find solution which would maintain confidence without
prejudicing Chinese position. Intend to raise with Vice Chairman
Deng.
FOR DENG XIAOPING
PREVIOUS CONTACTS
2.
Problem discussed on several occasions between Ministers, most
recently during Chairman Hua Guofeng's and Foreign Minister Huang Hua's
visit to London. Also useful contact with Hong Kong officials.
noted in particular Vice Chairman Deng's statement to the Governor
and also Vice Premier Gu Mu's remarks to Sir Philip Haddon-Cave.
that he said it was time to begin thinking about the longer term.
We agree.
Meanwhile common interest in confidence and stability.
Have
Note
LAND LEASES
3.
General confidence holding, but volatile. Once market begins
to slide, will be difficult to stop and may affect mutual interests
in Hong Kong, value of Hong Kong dollar, investment etc.
of the problem is land leases in New Territories.
symbol of uncertainty over future.
One example
Fast becoming
Present need under UK law to
Either
terminate leases in 1997 threatens to be major investment problem
as time approaches (mortgages normally run for 15 years).
amendment of UK law or some agreed solution vital next year or two.
/CHINESE ASSURANCES
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