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of part of the premiums, although it is hard to see how that could be pursued in practice. He was concerned, however, that the contract should not be worded in such a way that it could be read as implying an interest in land stretching beyond 1997. This can be achieved by some minor alterations to the wording of the contracts in which the key element is that it refers to the grantor (i.e. the Housing Authority) granting a licence etc. "to the extent of its rights and powers". This, I understand, is normal conveyancing practice and covers the grantor against promising something which he has not the power to fulfil.
5.
The Governor has agreed that the Housing Authority will continue to sign 15-year contracts with the changes referred to above. Although the AG's main concern was the question of right to land use, the altered wording also has the merit of covering the Housing Authority against any claim that they have granted other rights beyond 1997 which they do not possess. This will enable us in future to say, if necessary, that the 15-year contracts are clearly conditional and are accepted by the grantee taking that risk.
6.
The two contracts expiring in October 1997 which have already been signed have aroused no comment. We hope that the continuation of existing practice will similarly create no ripples. Certainly we will do nothing to draw attention to the problem. If the Housing Authority are pressed about why they have made the small change of wording referred to above, they will say that the alteration has been made to take account of normal conveyancing practice. If they are further, and inescapably, pressed about whether the change relates directly to 1997, they will say that one of the factors which has to be taken into account is land rights where the leases granted to the Housing Authority at present expire, as do others, in 1997 and that this point has to be covered by the appropriate legal language.
(D C Wilson)
CC R JT McLaren Esq
Far Eastern Department
M W Atkinson Esq MBE PEKING
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