TNAG-0937-FCO40-1156-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1980 — Page 27

• also at HKK 040/1

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1 1 NOV 1980

DESK OPNICER

INDEX

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MEETING BETWEEN THE SECRETARY OF STATE AND THE GOVERNOR

OF HONG KONG : 5 NOVEMBER 1980

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Present

The Rt Hon The Lord Carrington

KCMG MC

Sir Murray MacLehose GBE KCMG KCVO

Sir E Youde KCMG MBE

Mr G G H Walden

Mr R D Clift

Mr R M J Lyne

FUTURE OF HONG KONG

NEW TERRITORIES LAND LEASES

1. Sir M MacLehose recalled the exchanges with the Chinese Government over the last 2 years. The Chinese were now beginning to understand the nature of the short-term problem over land leases, including the significance of 15-year mortgages and thus of 1982. For the immediate future, and up to the Secretary of State's visit to Hong Kong, he did not think that a further official approach should be made to the Chinese Government. But he would encourage business visitors from Hong Kong to China many of whom had contacts at a high level in the PRC to make their concern known.

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2. Lord Carrington asked when the deadline would come for us. Sir M MacLehose thought this would be about 1982. At the date approached the concern of investors in Hong Kong would become apparent to the Chinese. Until this happened, action on our part would be difficult. HM Ambassador in Peking took a different view. He favoured discusion of possible solutions to the land leases question now. The Governor preferred to wait.

3. Lord Carrington agreed. It was better that pressure should be put on the Chinese by their own people than by us. However, he would have to raise the question during his visit to China.

4. Sir E Youde said that Sir P Cradock's view was that, if we took no action, there would be no pressure on the Chinese. did not agree with this and shared the Governor's view,

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