TNAG-0847-FCO40-1057-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1979 — Page 68

CONFIDENTIAL

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5. Summing up, the Secretary of State said that we had no

option but to continue with our present strategy of pressing for

a conference and, at the same time, seeking to persuade other

countries to take more refugees and use their influence with

Vietnam. He had noted the point about resettlement places.

Mr Blaker would discuss the question of an additional financial

contribution to UNHCR with Mr Marten.

New Territories Leases

6. The Secretary of State asked why changing property leases in

the New Territories to indefinite leases would promote confidence.

Sir Murray MacLehose said that the problem was the 1997 terminal

date of the leases. If that date could be removed with Chinese

concurrence, foreign investors and people in Hong Kong would take

it as an indication that British rule might continue after 1997.

In the meantime the 1997 date was already causing difficulties.

Lawyers and accountants for firms wishing to invest in Hong Kong

were already concerned about the inability of the Hong Kong

Government to grant leases longer than 18 years.

Distribution:

PS

PS/LPS

PS/Mr Blaker

PS/PUS

Mr Cortazzi

Mr Murray

HKGD

FED

Defence Department

CONFIDENTIAL