TSX 1/78
Extract from meeting in Government House on 7 December with delegation from Guangdong
Leases in the New Territories
Following his remarks about the economy and economic co-operation the Acting Governor said that he wished to mention
one additional point. This was the matter of leases to land in the New Territories. (PA corrected the interpreter, making it clear that it was the question of individual leases and not of the New Territories Lease as a whole.) The problem was not urgent. There had already been assurances from Vice-Premier Deng and Premier Hua. In the long term, however, this was not a problem which could be solved by general assurances. The problem was also partly the result of practices and attitudes of accountants and lawyers. In two to three years it would become a real problem. Mr Wang could no doubt tell Mr Xi that people in Hong Kong were already beginning to talk about the subject.
2.
What mattered was that confidence in Hong Kong should not be allowed to be eroded. This was a subject both sides needed to keep in mind, but it was one which should be kept to ourselves and treated confidentially. It would be easy for harmful misunderstandings to arise.
3.
Mr Xi said that on this question Vice-Premier Deng had given assurances. This could be one of the main topics for future discussions. Development of Shumchun was one of the answers to the problem.
4.
The Acting Governor said that a problem was building up: it would not go away. Much of it was psychological; entering the decade of the 1980's could be important in these terms. Mr Xi noted that the lease still had 18 years to run. Mr Wang added that it would soon be 17 years.
Political Adviser's Office
Government Secretariat
Hong Kong
12 December 1979
Page 15Page 16
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