TNAG-0753-FCO40-957-Future-of-Hong-Kong-1978 — Page 57

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Kong legislation is open to the Secretary of State's veto and in default of a veto he is assumed to have approved it, but this

constitutional position might not be so obvious to the uninitiated.

10.

The

The legislation in the UK could deal with leases alone, but that would leave unresolved the question of the Hong Kong Government's right to exercise general jurisdiction in the Leased Territories after 1997, and sooner or later this too will have to be faced long before 1997. New Territories Order-in-Council provides for the Government of the New Territories "during the continuance of the said lease". I suggest there is everything to be said for dealing with this problem at the same time as that of the land leases. Moreover I do not see how a Government could have the power to issue leases unless it also had power of jurisdiction.

11.

The draft Order-in-Council attached to my letter of 6 July covered the point about jurisdiction. It was a first attempt to get the reaction of the FCO Legal Advisers. On reflection, by referring specifically to 1 July 1997, the draft was more objectionable to the CPG than necessary, and clearly our object should be to obtain the powers needed while saying as little as possible. I enclose at Annex B a redraft. Personally I would prefer it to be reduced even further by omitting the preamble in square brackets. Perhaps Peking would comment.

12.

I hope we can now get ahead with agreeing the form of words and legal procedures. Although I personally think it too early to make such a move, there is such a flurry of movement in China that I suggest it would be prudent to put ourselves in a position to act quickly if we thought the right moment had come.

13. I also hope that this proposal will be viewed for what it is - an initiative to the Chinese Government about the future of Hong Kong in a limited field in which the Chinese might see that some action was inevitable if confidence and CPG earnings were to be ma in ta in ed. The initiative would not require any overt official act

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