4. THERE IS A FURTHER PIECE OF LEGISLATION IUNDER PREPARATION UNDER WHICH ALL NEW TERRITORIES LEASES (AFFECTING ABOUT 600,000 PROPERTY INTERESTS) WOULD BE EXTENDED AUTOMATICALLY. ALTHOUGH THERE IS NO LEGAL NEED TO ENACT THIS LEGISLATION BEFORE RATIFICATION, THERE WOULD BE STRONG ADVANTAGE IN DOING SO AS A MEANS OF FURTHER BOLSTERING CONFIDENCE AND AVOIDING FEARS THAT IT MAY RUN INTO PROBLEMS WITH THE LAND COMMISSION OR JOINT LIAISON GROUP. WE ARE THEREFORE PROCEEDING WITH THE PREPARATION OF A DRAFT BILL AND ARE HOPING TO HAVE IT ENACTED BY EARLY MAY.
3. COMPLETION OF THE LAND TRANSACTIONS REFERRED TO IN MY TELNO 3793 OF 14 DECEMBER 1984 IS NOT (NOT) A PREREQUISITE FOR RATIFICATION AND CANNOT BE USED AS A REASON FOR DELAYING THE LATTER. BUT IT WOULD BE DISIRABLE TO HAVE COMPLETED A NUMBER OF LARGE-SCALE PRIVATE TREATY GRANTS BEFORE RATIFICATION SO THAT THE AREAS CONCERNED WOULD NOT COUNT TOWARDS THE 50-HECTARE LIMIT FOR THE FIRST YEAR. ALREADY, HOWEVER, IT APPEARS DOUBTFUL THAT THE TWO LARGEST GRANTS IN THE PIPELINE (A 29-HECTARE GRANT FOR
A NEW BERTH AT THE CONTAINER TERMINAL AND A 30-HECTARE GRANT FOR A PERMANENT CEMETRY) CAN BE COMPLETED BEFORE 30 JUNE, ALTHOUGH THEY COULD PROBABLY STILL BE COMMITTED (1.E. 'DECIDED UPON FOR THE PURPOSES OF PARA 1 OF ANNEX 111 TO THE JOINT DECLARATION) BEFORE THAT DATE. THE OFFICIALS CONCERNED WILL BE MEETING ON WEDNESDAY 13 FEBRUARY TO REVIEW THE SITUATION AND I SHALL TELEGRAPH AGAIN AS SOON AS POSSIBLE THEREAFTER ON THE ESTIMATED TIMETABLE.
6. SEE MIFT FOR COMMENTS ON THE DATE OF RATIFICATION.
YOUDE
HONG KONG AGREEMENT
LIMITED
HD/HKD
HD/FED
HD/PLANNING STAFF
HD/PUSD
DEP HD/PUSD
RESEARCH DEPT (MR WALKER) PS
PS/MR LUCE
PS/PUS
SIR W HARDING
MR WILSON
SIR J FREELAND
MR J CROWLEY, PUSD
COPIES TO: (VIA ADR)
MR ROBERTS, NEWS DEPT
MR FIFOOT, LEGAL ADVISERS MR BURROWS, LEGAL ADVISERS
MR MARTIN, ASST STAFF CABINET
OFFICE
MR CARTLEDGE, CABINET OFFICE ER DR C CHRISTOPHER, CABINET OFF. SIR P CRADOCK, NO 10 DOWNING ST
MR EMERY, BY HOME OFFICE,
MR HYDE, HOME OFFICE,
CONFIDENTIAL
CROYDON
QUEEN ANNE'S GATE