HONG KONG STUDY
ANNEX O
SECRET
[ Await haw Officers advice]
CROWN LAND LEASES IN THE NEW TERRITORIES
Present Situation
The New Territories, which constitute about seven-
eighths of the land area of the colony of Hong Kong, are
1.
held under an international lease granted by the Convention
of 1898 (regarded by the PRC as an 'unequal treaty') which
is due to expire on 30 June 1997.
2.
?
The Hong Kong Government has always taken the view
that it cannot grant leases of Crown land in the New
Territories beyond 30 June 1997. As this date approaches,
this inhibition is causing increasing embarrassment since
the New Territories are an important area of commercial
development.
3.
(a)
The inhibition rests on three propositions:
the jurisdiction of the UK in the New
Territories is insufficient under international
law to allow the UK to grant leases running
beyond 30 June 1997;
(b)
it would be politically objectionable to the
PRC for such leases to be granted by the
British administration in Hong Kong;
/ (c)
SECRET