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FUTURE EGRET
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TREATY OF NANKING, SIGNED IN 1842 AND RATIFIED IN 1843: THE SOUTHERN PART OF THE KOWLOON PENINSULA AND STONECUTTERS ISLAND WERE CEDED IN PERPETUITY UNDER THE CONVENTION OF PEKING IN 1860:
AND 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 UNDER THE CONVENTION OF PEKING OF THAT YEAR. IT WAS THE
FACT THAT THE NEW TERRITORIES ARE SUBJECT TO A LEASE WITH A FIXED EXPIRY DATE, AND THAT THE REMAINING 8 PERCENT
OF HONG KONG'S LAND AREA
IS NOT VIABLE ON ITS OWN, WHICH LAY BEHIND THE DECISION BY THE BRITISH GOVERNMENT TO SEEK TO ENTER NEGOTIATIONS WITH THE
GOVERNMENT OF THE PRO ON HONG KONG'S FUTURE.
4.
THE ATTITUDE OF THE GOVERNMENT OF THE PRC TOWARDS THE TREATIES WAS FIRST SET OUT IN CLEAR AND AUTHORITATIVE FORM IN A 'PEOPLE'S DAILY' ARTICLE ON 8 MARCH 1963. THIS STATED THE VIEW THAT THE QUESTIONS OF 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 NEGOTIATIONS
5. IN THE LATE 1970'S, AS THE PERIOD BEFORE THE TERMINATION OF THE NEW TERRITORIES LEASE CONTINUED TO SHORTEN, SIGNIFICANT 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 ANXIETY ABOUT 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. THERE WAS A DANGER THAT THE STEADILY SHORTENING SPAN OF THESE LEASES, AND THE INABILITY OF THE HONG KONG GOVERNMENT TO GRANT NEW ONES EXTENDING BEYOND 1997, WOULD DETER INVESTMENT AND
DAMAGE CONFIDENCE.
6.
HER MAJESTY'S GOVERNMENT HAD BY THIS TIME, FOLLOWING A CAREFUL EXAMINATION OF THE PROBLEM CONDUCTED IN CONSULTATION WITH THE GOVERNOR, CONCLUDED THAT CONFIDENCE WOULD BEGIN TO ERODE
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FUTURE EGRET