8.
It is realized of course that the proposed measures might offend the Chinese Government if it were not consulted - it is therefore intended to consult that Government and obtain its consent or acquiescence in the measures before they are implemented. It seems that the Chinese do not intend to insist on surrender of the New Territories on 1 July 1997 but are willing to contemplate allowing the UK to keep them and to continue to govern Hong Kong for some (unspecified) time thereafter, if Chinese sovereignty is acknowledged in some way or other.
9. I now enclose two copies of a draft Order in Council designed to implement the proposed measures, the terms of which have been settled in consultation with the Governor.
10.
There is no particular legal question connected with the draft on which I need trouble you, but our Ministers may wish to be quite sure, in view of its political importance and somewhat novel
character, that the Attorney sees no objection to an Order in Council of this kind.
II. We should therefore be grateful to know whether the Attorney has any comments on the draft Order.
12. Copies of the Convention of 1898 and the two Orders in Council relating thereto are enclosed.
13. A copy of this letter and its enclosure goes to R B Gardner of the Treasury Solicitor's Department (whose reference is RBG/BA-M/78) as he was good enough to advise us last August on leases in perpetuity and leases for fixed terms with provision for perpetual renewal.
Yours
ever
Antony Rushford
A R Rushford
Deputy Legal Adviser
2
SECRET
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