GRS 320
SECRET
SECRET
DESKBY 141038Z
PEKING 14908182 MAY 79
TO IMMEDIATE FCO
TELNO 443 OF 14 MAY
RECEIVED
See at
INFO HONG KONG
MY 2 IPTS: FUTURE OF HONG KONG
15 MAY 1979
DESK OFFICER
INDEX
по
PA
23.7
SPEAKING NOTE AMENDED FROM PARA 3 OF HONG KONG TELNO 566:
NO. 51
95
REGISTRY Action Takun
93
"'AS THE GOVERNOR SAÏD TO DENG, THE LONG TERM FUTURE OF HONG KONG IS A MATTER TO BE SETTLED BETWEEN THE CHINESE AND BRITISH GOVERNMENTS. AS HE ALSO EXPLAINED, HOWEVER, THERE IS A SHORT
TERM PROBLEM ABOUT LAND LEASES WHICH MUST BE TACKLED SOON IF
INVESTMENT IS TO CONTINUE UNABATED. WE INTEND THEREFORE TO
TAKE THE NECESSARY LEGISLATIVE STEPS TO ELIMINATE THE DATE
FROM EXISTING LAND LEASES IN THE NEW TERRITORIES AND TO SUBST-
ITUTE A MORE INDEFINITE FORM OF WORDS. THIS HAS TO BE DONE BY
LEGISLATION SINCE THERE IS AT PRESENT NO LEGAL CONCEPT OF A
LEASE WITHOUT A FIXED DATE: IT IS ALSO NECESSARY BECAUSE
THOUSANDS OF EXISTING INDIVIDUAL LEASES WHICH MUST BE ALTERED
BY A BLANKET PROVISION. IF LEGISLATION ABOUT LEASES IS TO HAVE ANY MEANING IT WILL HAVE TO INCLUDE PROVISION FOR THE GOVERNOR'S
ADMINISTRATIVE POWERS WITHOUT REFERENCE TO ANY PARTICULAR DATE.
CUR PRESENT INTENTION IS TO DO THIS WHEVN THE LEGISLATIVE COUNCIL
RESUME IN OCTOBER, AFTER ANY RELEVANT ENABLING ACTION HAS BEEN TAKEN IN THE UNITED KINGDOM. IN ANNOUNCING THIS LEGISLATION
WE WOULD MAKE IT CLEAR THAT THE EFFECT WAS PURELY PERMISSIVE ON
THE BRITISH SIDE AND WITHOUT PREJUDICE TO THE CHINESE POSTION
ON HONG KONG OR TO ANY ACTIONS THEY MIGHT TAKE CONSEQUENT TO THIS POSITION. SUCH LEGISLATION WOULD HOWEVER RELIEVE US FROM THE
PRESSURE WE ARE COMING UNDER AS A RESULT OF THE LEGAL OBLIGATIONS OF AUDITORS AND ACCOUNTANTS CONCERNED AT THE LEGAL IMPLICATIONS FOR INVESTMENT OF THE ST DILY SHORTENING PERIOD OF EXISTING
LEASES. THIS IS NOT A MATTER ON WHICH WE FEEL THE CHINESE GOV-
ERNMENT NEED COMMENT, BUT WE WISH TO KEEP THEM INFORMED ABOUT
THE NATURE OF OUR PROPOSED ACTION AND THE REASONS WHY IT HAS
BECOME NECESSARY**.
CRADOCR
FIKES
H RGD
FED
PUSD
LEGAL ADVISERS
PS/MR BLARER SIR A DUFF MR CORTAZZI MR MURRAY
SECRET
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