CONFIDENTIAL

From:

M H R Bertram

Date:

cc:

PS/PUS

13 May 1956

Hinn 406/1

нии

RECEIVED IN REGISTRY

27 MAY 1986

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B(12

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Chief Clerk

CONSULATE-GENERAL AND RESIDENTIAL ACCOMMODATION IN HONG KONG AFTER 1997

1.

DESK OFFICER

INDEX

REGISTRY

PA

Action Taken

The Governor replied to the PUS' letter of

7 November 1985 on 17 April. I have separately drafted an interim reply for the PUS to send to the Governor. It may be helpful to summarise here the position we have. now reached on accommodation.

The Legal Position

2.

Legal advice is that there is nothing in inter- national law which would entitle HMG to retain title or leasehold interest (including if held by the Secretary of State) in Crown land (or buildings) in Hong Kong after 1997. Even a sub-lease granted to the Secretary of State by a private or corporate leaseholder (although it would continue to exist after 1997) would not escape the general rules of State succession and would devolve on the SAR or the PRC.

3.

However we choose to accommodate a Consulate- General after 1997, we shall need the agreement of the Chinese authorities. The consensus view is that the Secretary of State might raise this general question in

The Joint the margins of the State Visit in October. Liaison Group would probably be the most suitable body to take discussions forward thereafter.

4.

Before sounding out the Chinese, we need to have a good idea of how and where we would like best to accom- modate ourselves (though recognising that the Chinese reaction will influence our final decision). The Chinese might argue in favour of annual leases (as apply to our accommodation in Peking and Shanghai): we should obviously seek to resist this.

5.

(a)

The Accommodation Options Available (all subject to Chinese agreement)

Allocation of property presently presently occupied by HMG or HKG

The allocation of existing HK Government offices to the Consulate-General is not promising. There is plenty of

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CONFIDENTIAL

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