TNAG-0849-FCO40-1059-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 186

CODE 18-77

SECRET

Mr Rushford, Legal Advisers

HONG KONG: NEW TERRITORIES LEASES

Reference..

HKK Ov/1

3 MAY 1979

V

NO. 3

j

G

692

1. During his visit to China last month, the Governor of Hong Kong, as anticipated, sounded out the Chinese leaders on their reactions to our proposals for dealing with the problem of land leases in the New Territories. The discussion was only in general terms, and no documents were handed over. The Governor simply explained our proposal to introduce indeterminate leases. Vice Premier Deng Xiaoping's immediate reaction was to object to any wording that contained a mention of continuing British administration. The Governor believes that Deng had not fully grasped the significance of what was being proposed at the time when he made this rejoinder, and that had he done so, he might have realised that our formulation in no way prejudiced the Chinese position. But since his objection is now on record, the Governor suggests we ought to reword the proposed Order in Council (and ultimately the phrasing of the new leases) to avoid any explicit references to future British administration.

2. I attach for your reference a copy of the proposed Order in Council as it finally emerged from the discussions prior to the Governor's visit, and a copy of the Governor's letter of 10 April reporting the Chinese reaction on the leases question. If it is convenient, I should like to come and discuss this with you later today.

24 April 1979

W.E. Chantill

W E Quantrill

Hong Kong and General Department K247 233 4381

Ì attach a

revised draft of the

Order.

り

If you

would

like

to

discuss

it

4 þ.m

p.m. today would

Now see subsequent minching

PA 1224/4

SECRET

suit

me

A.R.R.

24.4.