TNAG-0849-FCO40-1059-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 184

SECRET

-2-

in no way weaken the legal validity of the Clause, the first paragraph of which would then read:

"2(1) The Governor shall have power to grant a lease of any land in the New Territories that may be granted by Her Majesty without specifying any term for the duration of the lease; and such a lease shall continue in force

unless it is determined or forfeited in accordance with

the terms and conditions thereto or any provision of law applicable thereto."

There is no reason why, with such a wording, the validity of the leases should be affected by a change to Chinese sovereignty as envisaged by Deng.

4.

The Governor did, however, ask for an alternative phrase "though saying much the same thing", and may not want simply to leave a gap.

Mr Rushford has suggested in this case that the

phrase "for so long as Her Majesty may administer these Territories"

might be replaced by "for so long as this Order is in operation".

Alternatively, he has suggested simply substituting the word "indefinitely" for the offending words. But neither of these (nor any other alternative that does not refer specifically to British administration) fulfils our original purpose of reassuring the Chinese that we do see British rule in Hong Kong as coming to an end at some time or other, and I cannot see therefore that either

of them has any advantage over a simple omission.

5. It is much more difficult to remove the reference to

continuing British administration from Clause 3 without making a nonsenseo of the whole thing. The purpose of this Clause was to make it clear in Hong Kong that the ending of the New Territories Lease in 1997 did not inevitably mean that Hong Kong

legislative and executive powers could no longer be exercised in respect of the New Territories after that date. This was in order to forestall any challenge in the Hong Kong courts to the Governor's

/power

SECRET