DRAFT CLAUSE

ENCLOSURE 1

"Provided always and it is hereby expressly agreed

and declared that subject to an agreement being concluded

hereafter between His Britannic Majesty's Government, and

the Goverment of the United States of America for the

acquisition by either Government of real property in the

territory of the other Government for official purposes,

on the fee simple basis, and to such agreement extending

to the acquisition of property in Hong Kong in fee simple

by the Government of the United States, the Purchaser

shall with the consent of the Governor be entitled to

convert the title to the lot sold, from leasehold to freehold

upon such terms as may be agreed by the Governor.

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