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NINETEENTH CENTURY: THE TREATY OF NANKING, SIGNED IN 1842 AND

RATIFIED IN 1843 UNDER WHICH HONG KONG ISLAND WAS CEDED IN

PERPETUITY: THE CONVENTION OF PEKING IN 1860 UNDER WHICH THE

SOUTHERN PART OF THE KOWLOON PENINSULA AND STONECUTTERS ISLAND WERE

CEDED IN PERPETUITY: AND THE CONVENTION OF 1898 UNDER WHICH THE NEW

TERRITORIES (COMPRISING 92 PERCENT OF THE TOTAL SURFACE AREA OF

THE TERRITORY) WERE LEASED TO BRITAIN FOR 99 YEARS FROM 1 JULY.

1898. IT WAS THE FACT THAT THE NEW TERRITORIES ARE SUBJECT TO A

LEASE WITH A FIXED EXPIRY DATE WHICH LAY BEHIND THE DECISION BY

HER MAJESTY'S GOVERNMENT TO SEEK TO ENTER NEGOTIATIONS WITH THE

GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA (REFERRED TO

HEREAFTER AS 'THE CHINESE GOVERNMENT') ON HONG KONG'S FUTURE.

4.

THE ATTITUDE OF THE CHINESE GOVERNMENT TOWARDS HONG KONG AT

THE TIME WHEN THE NEGOTIATIONS BEGAN WAS CLEAR: IT WAS THAT HONG

KONG AND MACAU BELONGED TO THE CATEGORY OF UNEQUAL TREATIES LEFT

OVER BY HISTORY: THAT THEY SHOULD BE SETTLED PEACEFULLY THROUGH

NEGOTIATIONS WHEN CONDITIONS WERE RIPE: AND THAT PENDING A

SETTLEMENT THE STATUS QUO SHOULD BE MAINTAINED. THE CHINESE

GOVERNMENT MADE ITS VIEW OF HONG KONG'S STATUS CLEAR IN A LETTER

TO THE UN SPECIAL COMMITTEE ON DECOLONISATION IN MARCH 1972.

THIS ARGUED THAT THE QUESTION OF HONG KONG WAS A MATTER OF

CHINA'S SOVEREIGN RIGHT AND DID NOT FALL WITHIN THE ORDINARY

CATEGORY OF COLONIAL TREATIES AND SHOULD NOT BE INCLUDED IN THE

LIST OF TERRITORIES COVERED BY THE DECLARATION ON THE GRANTING OF

INDEPENDENCE TO COLONIAL COUNTRIES AND PEOPLES.

THE BACKGROUND TO THE NEGOTIATIONS

5. IN THE LATE 1970'S, AS THE PERIOD BEFORE THE TERMINATION OF

THE NEW TERRITORIES LEASE CONTINUED TO SHORTEN, CONCERN ABOUT THE

FUTURE OF HONG KONG BEGAN TO BE EXPRESSED BOTH IN THE TERRITORY

ITSELF AND AMONG FOREIGN INVESTORS. IN PARTICULAR THERE WAS

INCREASING REALISATION OF THE PROBLEM FACED BY INDIVIDUAL LAND

LEASES GRANTED IN THE NEW TERRITORIES, ALL OF WHICH ARE SET TO

EXPIRE 3 DAYS BEFORE THE EXPIRY OF THE NEW TERRITORIES LEASE IN

1997. THE STEADILY SHORTENING SPAN OF THESE LEASES AND THE

INABILITY OF THE HONG KONG GOVERNMENT TO GRANT NEW ONES EXTENDING

BEYOND 1997, WOULD BE LIKELY TO DETER INVESTMENT AND DAMAGE

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