TNAG-0848-FCO40-1058-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 164

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4. YOU ALSO OMIT REFERENCE TO THE POWER TO VARY EXISTING LEASES.

I ATTACH IMPORTANCE (FOR LOCAL PRESENTATIONAL REASONS) TO ITS

INCLUSION.

TO SUM UP :

(A) I WOULD BE HAPPY TO ACCEPT ALTERNATIVE B IN PARA 2 OF YOUR

TELNO 98 PROVIDING THAT ''ADMINISTER'' IS SUBSTITUTED FOR ''POSSESS'' AND THE POINT ABOUT VARYING LEASES IS EITHER INCLUDED IN THAT CLAUSE OR A SAVING ONE :

(B) I AM CONVINCED THAT WE MUST TRY TO PROVIDE FOR CONTINUING

JURISDICTION AFTER 1997. I WOULD PREFER TO DO THIS AS IN PARA 3 OF ANNEX A TO MY LETTER OF 21 DECEMBER. AS AN ALTERNATIVE, HOWEVER,

I WOULD SETTLE FOR THE MORE OBLIQUE FORMULA SUGGESTED BY THE FCO LEGAL ADVISERS AS IN PARA 4 OF ANNEX B TO THE SAME LETTER.

5. IT IS NOW BECOMING IMPORTANT TO RESOLVE THIS MATTER QUICKLY. I DO NOT WISH TO QUIBBLE UNNECESSARILY OVER THE WORDING OF DRAFTS. NEVERTHELESS I THINK WE MUST HAVE A DRAFT ORDER WHICH

BOTH COVERS OUR ESSENTIAL REQUIREMENTS HERE AND IS AS LIKELY TO WIN CHINESE ACCEPTANCE AS WE CAN MAKE IT.

MACLEHOSE

NNNN

FILE S:

H K & G D (6)

FED

MR MURRAY

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COPIES TO:

MR RUSHFORD, LEGAL ADVISER