TNAG-0849-FCO40-1059-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 89

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It is worth pointing out that China has officially talked about the lease and the year 1997. It is the first time that a Chinese authority talked about this officially. It is believed that it carries a very important message. In the past, no one in the Chinese Goverment talked about this lease and the year 1997, and their replies to such a topic have always been vague.

"A solution to the question of the future of Hong Kong and Macau will come at a right time." China has always regarded Hong Kong as part of the Chinese territory, the special situation existing today is a legacy of past history, so she is not in a hurry to settle the problem. The Chinese authorities have never tried to distinguish the difference between Hong Kong Island and the lease, and therefore, have never talked about the year 1997.

Theoretically, the Chinese authorities have never recognised the unequal treaties signed in the past. The cession of Hong Kong and the lease of the new Kowloon and the New Territories are based on the unequal treaties signed between Britain and China. Since China does not recognise these unequal treaties, there is no difference between 'cession' and 'lease'. At present, there is an important change in China's attitude towards this, though she still refuses to recognise the cession of Hong Kong. She stands firm on the point that Hong Kong is part of the Chinese territory. But she has made clear the following points:

Firstly, China will not take back any part of Hong Kong, Kowloon and the New Territories before 1997. Secondly, after 1997, the status of Hong Kong and North Kowloon and the New Territories would be different, it is likely that China will handle matters concerning the two places separately. Thirdly, the question of how to handle these two areas separately after 1997 will be thoroughly discussed with the British Government. Fourthly, even if China does take back the leased territories after 18 years, she would still make special arrangements to protect investors' interests. China seems to have strongly implied that when the time arrives, North Kowloon and the New Territories would be outlined as a special zone. And for a considerable length of time, there would not be major changes to its original economic structure, nor would public life be seriously affected.