136
CONFIDENTIAL
HKK 040/2
RECEIVE
12 FEB 1985
GRS 160
CONFIDENTIAL
FM HONG KONG 13035OZ FEB 85
TO IMMEDIATE F C O
ELEGRAM NUMBER 334 OF 13 FEBRUARY
INFO IMMEDIATE PEKING
YOUR TELNO. 246: HONG KONG BILL: TIMETABLE.
THE LEGISLATION IN QUESTION WAS FORESHADOWED IN PARAS 4 AND 5 OF EXCO MEMORANDUM XCX(35)1. ITS PURPOSE IS TO GIVE EFFECT TO THE PROVISIONS IN PARA 2 OF ANNEX 11 TO THE JOINT DECLARATION IN RESPECT OF NEW TERRITORIES AND NEW KOWLOON LEASES WHICH EXPIRE BEFORE 30
JUNE 1997. IN ACCORDANCE WITH THAT PARAGRAPH, THESE LEASES MAY BE EXTENDED UP TO 30 JUNE 2047 WITH NO ADDITIONAL PREMIUM, BUT WITH THE
IMPOSITION OF AN ADJUSTABLE RENT BASED ON 3 PER CENT OF CURRENT
RATEABLE VALUE DURING THE PERIOD OF THE EXTENSION. IN VIEW OF THE
LARGE NUMBER OF PROPERTY INTERESTS INVOLVED, THE EXTENSION IS TO
BE DONE BY LEGISLATION RATHER THAN INDIVIDUALLY, THE LEGISLATION
WILL MAKE EXTENSION OF THE RELEVANT LEASE AUTOMATIC BUT THE LESSEE
WILL BE GIVEN AN OPPORTUNITY TO OPT OUT OF THE AUTOMATIC EXTENSION,
IF HE SO WISHES.
2. FOR THE REASONS GIVEN IN PARA 4 OF OUR TELNO. 232, WE INTEND TO
HAVE THIS PIECE OF LEGISLATION ENACTED BY EARLY MAY.
YOUDE
MINIMAL
COPIES
то
HKD.
MR. BURROWS - LEGAL
ADU'S.
CONHDENTIAL
137