TNAG-0848-FCO40-1058-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 118

SECRET

37

HACK OUD/1

2 8 MAR 1979

Mr Murray

MCA/lead for Rebusty firmer

INDEX

HONG KONG:

NEW TERRITORIES LEASES

1. I have despatched the Saving telegram approved by the Secretary of State (Mr Wall's minute of 12 March) and have arranged for the text to be passed to the Governor of Hong Kong in advance by secure means. The Governor will now inform his Executive Council in strict confidence. I have

no doubt that they will endorse the action proposed.

2.

The Secretary of State has asked whether there is any likely focus of dissent in Hong Kong. The answer is no.

On the contrary, opinion in Hong Kong would welcome action on the leases and would be in no doubt as to its significance for the future of Hong Kong. It will of course be essential

to avoid making any public reference to the action we have in mind before Chinese agreement has been obtained: if it became known that we had made an approach and had been rebuffed the effect on confidence could be serious.

3. I attach a draft DOP paper which covers the points in the third paragraph of Mr Wall's minute.

In anghen

14 March 1979

Copies to:

PS/Lord Goronwy-Roberts

PS/PUS

Sir A Duff

RJT McLaren

Hong Kong and General Department

Mr Cortazzi

Mr Stephen

FED

PUSD

Research Department

Mr Rushford, Legal Adviser

it

The Department discussed this

before submitting: I

SECRET

14

13

I agres

Dikemy

oronwy - Roberts

1473