Mr Fifoot
Legal Adviser
CONFIDENTIAL
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CONSULATE GENERAL AND RESIDENTIAL ACCOMMODATION IN HONG KONG AFTER 1997
1. In your minutes of 5 July 1985 to Mr Galsworthy (HKD) and of 2 October 1985 to Mr MacKenzie (OED) about the post- 1997 diplomatic estate in Hong Kong you indicated that unless some special provision was made by the Chinese any lease vested in the Secretary of State for Foreign and Commonwealth Affairs would revert to the PRC (or SAR) on 1 July 1997 under the normal rules of international law covering the succession of state property.
2.
The PUS wrote to the Government in Hong Kong on 7 November 1985 about our post 1997 requirements and the Governor has replied (his letter of 17 April) with his views as to the best way to proceed. His preference (para 10 of his letter) is to construct purpose built facilities on part of the former Victoria Barracks site possibly in the early 1990s. The Governor also refers (paras 16 to 20 of his letter) to the question of title and we should be grateful for your views on the legal aspects of the "imponderables" suggested.
3. Mr Holloway (the Senior British Trade Commissioner in Hong Kong) has also outlined in his minute of 4 March details of a discussion with the Chief Secretary in Hong Kong about the legal position as regards title.
4. As you will see the Chief Secretary believes that HMG would be in the same position as any other lessee come 1997 and could rely on continuing security of tenure as provided by the Joint Declaration.
Obviously this is a key question for OED and we would very much welcome your further thoughts on the subject.
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CODE 18-77
28 April 1986
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Mr Layden HKD
D Savage
OED Area Manager Room 416 AP
Ext 4133
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CONFIDENTIAL
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- P MAY 1986