B

CONFIDENTIAL

4.

The attached draft seeks to clarify the position on

PRC investment in Hong Kong as far as we can, and in

odd report that the Queen handed

Kong Kong lease

lease document during Her

This is nonsense:

There is of course no

conclusion to rectify the

over some form of Hong

Majesty's recent visit to China

nothing like this was handed over.

"lease" as such: the terms of

Territories

1898.

the lease on the New

are contained in the Peking Convention of

5.

Mr Renton may wish to look at the minuting by

Research Department and the Economic Advisers on which we have drawn in preparing our reply.

сок

CO Hum

16 January 1987

Hong Kong Department

OFLINITAL

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