TNAG-0937-FCO40-1156-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1980 — Page 103

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that they did not object to its implementation, Deng appeared

to recognise that it required no action on their part.

Specific proposals put to the Chinese

6.

After the Governor's visit, it was decided to put our

specific proposals concerning indeterminate leases to the Chinese

in Peking; these involved legislation in Hong Kong and an Order

in Council here. They also implicitly provided for continuing

This was done in July 1979, when it

British administration.

was emphasised that the proposal required no action by the Chinese

and was related solely to the problem of leases in the New

Territories. The Chinese reply of 24 September 1979 said that

the Chinese Government considered as unnecessary and inappropriate

the legal steps that the British side proposed to take regarding

the term of administration of the New Territories by the Governor

of Hong Kong and the question of leases for land in the New

Territories. The Chinese Government urged the British side to

desist from taking the proposed action, for the repercussions there-

from would adversely affect the interests of both the Chinese and

British sides.

Premier Hua 'Guofeng's visit to the United Kingdom

7.

During Premier Hua's visit to the United Kingdom in October 1979

the Prime Minister and the Secretary of State raised the question

of leases in the New Territories. Lord Carrington said that the

British Government would not pursue the Governor's proposals, which

the Chinese had found unacceptable and any proposals had to be

acceptable to both sides. HMG hoped, however, that Premier Hua

would give some thought to the problem of maintaining confidence

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