N.F.

Ms Barnes Jones

HKD

CC

the Savage

Mr Morais

Mr Michetis.

From:

Miss S Brooks

Legal Counsellor

Date:

26 February 1993

30

COLVIN HOUSE:

1.

PRIVATE TREATY GRANT

As agreed with Hong Kong Department, I spoke to David Edwards, Law Officer, International Law Division this morning. I explained to him the problems I had with the reference to "fair and equitable" in Special Condition 14 (1) (b) (see my minute to you of 23 February, paragraph 2). He said my points were "fair comment". He had no difficulty with the proposed deletion of "fair and equitable".

2.

He

I also explained to him that I would like to see the words "and would" in Special Condition 14(1)(b) replaced by "which shall" (see my minute to you of 23 February, paragraph 3). accepted that "and would" should be mandatory.

3.

As agreed with you, taking account of Mr Savage's concerns, I did not suggest the deletion of the phrase "taking into account the relevant circumstances" which I felt could be double-edged, working perhaps to HMG's advantage or perhaps to HMG's disadvantage. This was because we agreed that we should stick as closely as possible to the wording produced by Hong Kong Government. (Mr Edwards confirmed that the latest text was the outcome of mega meetings involving his Division, Constitutional Affairs Branch, and Land and Works.).

4. I told him that we were pleased with the suggestion of the arbitral tribunal to be chaired by a judge from a common law jurisdiction. Mr Edwards commented that it was felt that the area of land and planning would be one of the ones in which corruption post 1997 would most quickly flourish.

5.

In conclusion the text agreed with Mr Edwards reads:

• •

such sum as the Director shall agree with the Grantee which, taking into account the relevant circumstances, shall meet the requirement of the Government to act in compliance with the international legal obligation to pay prompt, adequate and effective compensation, in accordance with Special Condition No. 44 hereof.".

RF

HKD 406

406/1

08 MAR 1993

1

/In

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