TNAG-0941-FCO40-1160-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 76

SECRET

SUPPLEMENTARY BRIEF TO BRIEF NO 8(b) : LEASES IN NEW TERRITORIES

POINTS TO MAKE

1. As in paragraph 3 of 'Points to Make' of main brief.

PRESS

2. Will tackle this problem in low-key fashion so as to avoid

speculation, but already much public discussion in Hong Kong and

British press. Essential to keep content of our discussions

confidential. But will need to say something to the press after

Secretary of State's visit. We suggest:

'We talked of Hong Kong, and in particular how important

it is that there should be continuing and expanding

cooperation in the economic field to the mutual advantage

of China and of Hong Kong. It is clear that Hong Kong has

a role to play in the context of China's policy of the

four modernisations'."

[If the Secretary of State has been able to encourage Vice Premier

Deng to build on his 'hearts at ease' assurance of last year, we

might add:

'We talked of the longer term too and importantly I was told

that the statement made last year to the Governor of Hong Kong

that investors should put their hearts at ease' applied to

leaseholders in Hong Kong as well as intending investors.

LAND LEASES IN NEW TERRITORIES

3. We have examined ways in which leases might be granted in the

New Territories which would not necessarily come to an end in 1997.

Whatever method was used it would obviously be helpful if the first

lease were in favour of a Chinese Government agency or official

organisation in Hong Kong for a fairly lengthy period.

*

We would

/want

SECRET