TNAG-0753-FCO40-957-Future-of-Hong-Kong-1978 — Page 55

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

香港總督府

الميه hkk

SECRET

See (125)

GOVERNMENT HOUSE

HONG KONG

(115

REJEIVES

RO. 51

24 October 1978

I will be submitting in due course, after we

have

Peking to the Legal Adv

RF

...

IN

RING

PA

C

& Pekny

NEW TERRITORIES LEASES

1.

сс М. Сограззі

мі

Ms Rushford

2. Enter

The

views of

Advisers

Im

Yi

When you were here we discussed your letter of 18 September about ways of handling the question of

Ieases in the New Territories. I promised to write giving you our considered views. These take account of the comments in Peking telegram No 612 of 2 September.

2.

We are all agreed that the chosen solution must erode the significance of 1997; be as acceptable as possible to the Chinese by not conflicting with their stated position on Hong Kong; and be legally

unassailable.

We would also like to pre-empt

destructive argument in legal circles, or even in the courts, by placing beyond doubt the Hong Kong Government's jurisdiction in the Leased Territories after 1997 provided the Crown continues to administer them.

3.

Despite the legal neatness of extending leases for a fixed term, I suggest that, whatever the period chosen, or the qualification attached, it would inevitably be presented as an extension of the Lease itself. Subject to the views of H M Ambassador, Peking, I think this would not be acceptable to the Chinese. Subject to Ministers' views, I wonder if it might not also unnecessarily draw fire in the United Kingdom. the same arguments apply to the Embassy's suggestion of perpetual leases or freeholds.

4.

#1

Much

That leaves us with variants on the approach of converting standard Crown leases written to end three days before 1 July 1997 to leases of undetermined length. This approach has the advantage of being close to the Chinese official position, and defensible as such by them and us. The disadvantage is that it would lie outside common law and therefore require the cover of special legislation.

R J T McLaren Esq

Hong Kong and General Department

/ 5.

FCO

SECRET

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