TNAG-0849-FCO40-1059-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 100

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GRS 320

SECRET

DESKBY 141030Z.

PEKĪNG 1488182 MAY 79

TO IMMEDIATE FCO

TELNO 443 OF 14 MAY

INFO HONG KONG

SECRET'

૧૬

"With Mikkoko / i93

некото

Mr Hashay

to

understand this

I shall hate to have

I was

in the Chinese MF.A, once it

MY 2 1PTS: FUTURE OF HONG KONG had been translated into Chinne.

Could we not turn it into

SPEAKING NOTE AMENDED FROM PARA 3 OF HONG KONG TELNO 5661

...non-legal English

14/5.

"'AS THE GOVERNOR SAID TO DENG, THE LONG TERM FUTURE OF HONG KONG IS A MATTER TO BE SETTLED BETWEEN THE CHINESE AND BRITISH GOVERNMENTS. AS HE ALSO EXPLAINED, HOWEVER, THERE IS A SHORT TERM PROBLEM ABOUT LAND LEASES WHICH MUST BE TACKLED SOON

INVESTMENT IS TO CONTINUE UNABATED. WE INTEND THEREFORE TO TAKE THE NECESSARY LEGISLATIVE STEPS TO ELIMINATE THE DATE FROM EXISTING LAND LEASES IN THE NEW TERRITORIES AND TO SUBST- ITUTE A MORE INDEFINITE FORM OF WORDS. THIS HAS TO BE DONE BY LEGISLATION SINCE THERE IS AT PRESENT NO LEGAL CONCEPT OF A LEASE WITHOUT A FIXED DATE: IT IS ALSO NECESSARY BECAUSE THOUSANDS OF EXISTING INDIVIDUAL LEASES WHICH MUST BE ALTERED BY A BLANKET PROVISION. IF LEGISLATION ABOUT LEASES IS TO HAVE ANY MEANING IT WILL HAVE TO INCLUDE PROVISION FOR THE GOVERNOR'S ADMINISTRATIVE POWERS WITHOUT REFERENCE TO ANY PARTICULAR DATE. OUR PRESENT INTENTION IS TO DO THIS WHEVN THE LEGISLATIVE COUNCIL RESUME IN OCTOBER, AFTER ANY RELEVANT ENABLING ACTION HAS BEEN TAKEN IN THE UNITED KINGDOM. IN ANNOUNCING THIS LEGISLATION WE WOULD MAKE IT CLEAR THAT THE EFFECT WAS PURELY PERMISSIVE ON THE BRITISH SIDE AND WITHOUT PREJUDICE TO THE CHINESE POSTION ON HONG KONG OR TO ANY ACTIONS THEY MIGHT TAKE CONSEQUENT TO THIS POSITION. SUCH LEGISLATION WOULD HOWEVER RELIEVE US FROM THE PRESSURE WE ARE COMING UNDER AS A RESULT OF THE LEGAL OBLIGATIONS OF AUDITORS AND ACCOUNTANTS CONCERNED AT THE LEGAL IMPLICATIONS FOR INVESTMENT OF THE ST DILY SHORTENING PERIOD OF EXISTING LEASES. THIS IS NOT A MATTER ON WHICH WE FEEL THE CHINESE GOV- ERNMENT NEED COMMENT. BUT WE WISH TO KEEP THEM INFORMED ABOUT THE NATURE OF OUR PROPOSED ACTION AND THE REASONS WHY IT HAS BECOME NECESSARY'

CRADOCK

FILES

HRG D

FED

PUSD

LEGAL ADVISERS

PS/MR BLAREA SIR A DUFF MR CORTAZZI MR MURRAY

SECRET