}

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11.

It is unlikely but nevertheless possible that the

Chinese side may argue that the existing land grants by

way of Deeds of Appropriation should be regularised and

that the Deeds should be replaced by leases expiring in

2047. In that event, we suggest we should not demur, on

the understanding that this is in the interest of

regularising the documentation of land grants and without

prejudice to our position regarding the continued validity

of other documents, certificates, etc. after 1997 in

accordance with our laws. We should also argue that these

cases should be dealt with in the same way as cases

decided upon before the entering into force of the Joint

Declaration and therefore do not fall within the scope of

Annex III to the Joint Declaration. The land so granted

should not count towards the 50-hectare limit provided for

in paragraph 4 of Annex III to the Joint Declaration, and

the requirement under paragraph 3 to pay from 1 July 1997

an annual rent equivalent to 3 per cent of the rateable

value of the property should not apply. The Commission's

concerns would also be fully addressed.

Management arrangements and powers vested in the Governor

in Council or DUS under Cap. 132

12.

At present, there is a certain degree of conflict

in the DUS's role in respect of the Cemeteries.

On the

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