TNAG-0843-FCO40-1053-Visit-of-Lord-Carrington--Secretary-of-State-for-Foreign-and-1979 — Page 52

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existing leases into indeterminate leases of the same kind.

If this is to have the desired effect on confidence it will be

necessary at the same time to remove any legal obstacles on our

side to the continuation of British administration in the New

Territories after 1997 provided, of course, that that is

acceptable to the Chinese Government at the time.

The

4. There would be a need for legislation in Hong Kong to

create indeterminate leases and to make blanket provision for

the conversion of all existing leases into the new form.

provision for continuing administration after 1997 can only be

dealt with by an Order in Council in the United Kingdom since

the Governor's present powers in the New Territories derive from an Order in Council of 1898 which expires, with the lease of the

New Territories, in 1997. A draft of the proposed Order in

Council (which also provides covering authority for the change

in the leases) is attached at Annex A, together with an explanatory

note.

THE CHINESE POSITION

5. The present Chinese Government do not recognise the 19th century treaties under which Hong Kong came under British rule. In theory at least they make no distinction between those parts of the Colony ceded in perpetuity (Hong Kong Island and small areas of Kowloon) and those which were leased in 1898 (the New Territories): they regard the whole of Hong Kong as Chinese territory temporarily under British administration. repeatedly stated that the question of Hong Kong's reversion to China is a matter to be settled through negotiations "when the time is ripe", but have given no firm indication when they

They have

/think

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