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ANNEX A
SUPPLEMENTARY BRIEF: IN THE NEW TERRITORIES POINTS TO MAKE
CONFIDENCE IN HONG KONG : LAND LEASES
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1.
Two aspects to Hong Kong problem
long-term and short-term.
We are both agreed on need to maintain Hong Kong's prosperity. This
requires some action in short-term.
Individual New Territories land
leases important factor. Diminishing period of leases will be serious
deterrent to investors in a year or two. Must find means of giving
rights to property that do not automatically end in 1997. Accept
that we must do this in a way that will not prejudice China's position
in long-term. Aiming at maintaining stability in common interest.
2. No fixed ideas on form lease should take. One possibility
would be straightforward lease for period beyond 1997. There would
be legal implications for us. Possible, though unlikely, that
Governor's authority to issue such a lease would be challenged in
This could be prevented by appropriate British legislation.
If it would be easier for the Chinese Government we could consider
issuing long-term leases without a new Order although we would have to
be prepared to validate them later. We might also
the courts.
have to explain the position publicly eg in Parliament. In either
event there would be no need to refer to continuing British adminis-
tration of New Territories.
3. Another possibility would be to issue a lease for one year only,
but automatically renewable each year unless land required for
'public purposes1. Probably not so attractive to investors, but
could not be challenged in courts.
4. Do Chinese have views on other ways of tackling problem?
Should it take form of joint declaration guaranteeing right to
property irrespective of 1997?
/5.
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