SECRET
6.
Mr Burrows has now provided further advice, that includes an overview of the New Territories lease and the legal position of the Walled City since 1898. He has no objection to the legislation proposed, but advises restraint in taking administrative action under it and warns that any attempts to exert our own jurisdiction in the Walled City by compulsory acquisition of land from its inhabitants runs some risk of renewing an unresolved international dispute at an inopportune time.
7.
I agree with this advice, and therefore recommend that we reply to Hong Kong on the lines of the attached draft, emphasising that we would wish to be consulted before any action involving the Walled City is contemplated. Mr Burrows concurs.
27 October 1982
RJ F Hoare
SECRET
F