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176117
MDHIAN 5471
7. WE BELIEVE, THEREFORE, THAT THE BALANCE IS IN FAVOUR OF AN ANNOUNCEMENT IN GENERAL TERMS IN OCTOBER, HAVING BRIEFED THE CHINESE BEFOREHAND. OUR PUBLIC ANNOUNCEMENT WOULD BE MADE IN THE CONTEXT OF FUTURE DEVELOPMENT STRATEGY, NOT IN THE CONTEXT OF DEFENCE. IT WOULD BE LIMITED, AS YOU SUGGEST IN PARA 7 OF TUR TO THE NEED TO PROCEED WITH THE RECLAMATION AND THEREFORE TO FILL IN THE NAVAL BASIN. WITH THE CHINESE, WE SHOULD TAKE A LINE VERY SIMILAR TO THAT PROPOSED IN PARA 5 OR TUR, IE. THAT WE ARE HAVING TO PROCEED WITH THE RECLAMATION IN THE FACE OF UN- AVOIDABLE DEADLINES AND FOR REASONS OF VITAL ECONOMIC IMPORT- ANCE TO HONG KONG. WE HAVE EXPLAINED THIS MANY TIMES TO THE CHINESE, WHO HAVE ACCEPTED THAT THE RECLAMATION WILL NEED TO PROCEED AND THAT THE PRESENT NAVAL BASIN WILL NEED TO BE FILLED
IN. THUS THE EXTENT TO WHICH OUR ACTION WILL BE UNILATERAL IS, IN FACT, LIMITED: ONLY IN FAILING TO AGREE IN ADVANCE WITH THE CHINESE ON A REPLACEMENT SITE WHICH THE PLA WILL INHERIT WILL WE BE GOING BEYOND THE COMMON GROUND ALREADY ESTABLISHED BETWEEN THE TWO SIDES. WE WOULD OF COURSE SEEK TO PLAY THIS POINT DOWN AS MUCH AS POSSIBLE IN ANY PUBLIC STATEMENTS. IF QUESTIONED AS TO A REPLACEMENT NAVAL BASE, WE WOULD SAY THAT ALTERNATIVE ACCOMMODATION WOULD BE FOUND FOR THE RN FOR THE PERIOD 1992 TO 1997, AND A NUMBER OF OPTIONS WERE BEING CONSIDERED. TO THE CHINESE WE WOULD POINT OUT THAT THE DECISION TO RELOCATE THE RN TO STONECUTTER'S WAS ONE WHICH FALLS TO US TO MAKE SINCE, AT THIS STAGE, WE HAVE CONSIDERED ONLY THE DEPLOYMENT OF BRITISH MILITARY FORCES BEFORE 1997.
8. WE ACCEPT THAT THERE ARE BOUND TO BE RISKS IN GOING AHEAD WITH AN ANNOUNCEMENT IN OCTOBER. BUT WE BELIEVE THAT THESE ARE OUTWEIGHED BY THE VERY STRONG ARGUMENTS FOR NOW LETTING THE PROJECT PROCEED ON SCHEDULE.
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WE HAVE CONSIDERED THE POINTS YOU HAVE MADE ON POSSIBLE CHINESE RETALIATION AND HAVE THE FOLLOWING THOUGHTS:
(A) WE DOUBT IF THE CHINESE COULD EFFECTIVELY RETALIATE THROUGH THE LAND COMMISSION (PARA 3 OF TUR). THEY HAVE NO SAY IN LEASES OF SPECIFIC SITES. UNDER THE JD, THE HONG KONG GOVERNMENT HAS FULL AUTHORITY TO LEASE LAND UP TO 2047, PROVIDED THAT WE KEEP WITHIN THE 50 HECTARE LIMIT OR SUCH ADDITIONAL ANNUAL LIMIT AS MAY BE AGREED BETWEEN THE TWO SIDES. IN ANY CASE, NO GRANT OF NEW LEASES ON THE CENTRAL-WANCHAI RECLAMATION WILL BE MADE UNTIL SEVERAL YEARS AFTER RECLAMATION
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