TNAG-0849-FCO40-1059-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 95

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THE GOVERNOR'S SUGGESTION THAT ANY ACTION SHOULD BE ACCOMPAN

BY A PUBLIC STATEMENT THAT IT WAS ONLY PERMISSIVE' AND

WITHOUT PREJUDICE TO THE CHINESE POSITION ON HONG YONG

MIGHT BE SUFFICIENT TO ALLAY SUSPICIONS.

4. IF AFTER EXPLANATION HAD BEEN GIVEN THE CHINESE OBJECTED TO COURSE A (WHICH I BELIEVE UNLIKELY), WE COULD THEN FALL BACK ON OPTION 'C'. I TAKE THE POINT

THAT A LEAK OF THE FACT THAT WE HAD MADE CONCESSIONS

WOULD BE DAMAGING TO CONFIDENCE. BUT DESPITE SONG'S RECENT REMARKS, I THINK THE CHINESE CAN BE TRUSTED TO KEEP SOMETHING SECRET IF WE SPECIFICALLY REQUEST THAT WE DO SO.

5. THE INCLUSION..OR OTHERWISE OF CLAUSE 3 MUST BE THE POST TRICKY POINT. WE UNDERSTOOD, HOWEVER, THAT WITHOUT SUCH A CLAUSE, WE WOULD HAVE FAILED TO SOLVE THE PROBLEM, AND THAT NEW LEASES MIGHT BE SUBJECT TO EMBARRASSING

LEGAL CHALLENGE (PARAS 3 AND 4 OF HONG KONG TELNO 517)

WHILST WE HAVE A RELATIVELY RECEPTIVE GOVERNMENT IN

PEKING I THINK THEREFORE THERE WOULD BE MERIT IN TRYING FOR

THE LOT, EXPLAINING CLAUSE 3 AS A NECESSARY PART OF THE

PACKAGE IF LEGAL ADJUSTMENT IS TO BE EFFECTIVE. IF THE

PRINCIPAL OBJECTION COMES HERE RATHER THAN ON THE FORM

OF PRESENTATION, WE HAVE 'B' AS A FALLBACK INSTEAD OF

*CS.

6. SO FAR AS THE TEXT IS CONCERNED, I AM UNCERTAIN TO

WHAT EXTENT THE ORDER IN COUNCIL OF 1897 CAN BE CONSIDERED

AS BEING POTENTIALLY IN FORCE AFTER 1997. AND WITHOUT

ACCESS TO LEGAL ADVICE I AM NOT CLEAR HOW THE CLAUSE CONTAINED IN HONG KONG TELNO 547 COULD HAVE THE EFFECT OF PERMITTING AN EXTENSION OF VALIDITY, IF IT IS REQUIRED. BUT UNLESS IT HAS THIS EFFECT IT ACHIEVES LITTLE. CRADOCR

FILES

NRGO

FED

PUSD

LEGAL ADVISERS

PSjMR BLAKER Psipus

SIR A DUFF

Me COR MAXXI

MR MURRAY

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