TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 130

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Original at: Hkko нико

This Copy for:

Information-only-/ Action on

parti

Parets)

Mr Rushford

A. RUSHFORD

Legal Adviser

SECRET

нки

Reference

RECEIVED IN QUAN BA

15 JUN 200

PT.O

L 4+2

Никоно

EACTIVED IN REGISTRY NO. 51.

YEX

CHINA RESOURCES INVOLVEMENT IN THE NEW TERRITORIES HONG KONG

DESK OFFICER

REGISTRY

lagition Taken

INDEX attach copie

eepies of letters of 5 June and 25 January from the Politicalycerin Hong Kong reporting on the involvement of Chime Resource mpany (the agent in Hong Kong of China's main foreign trade corporations) in the development of a 1,200 acre site of land at Tin Shui Wai in the New Territories.

2. It is early days yet and the picture is far from clear, but some important and highly significant implications seem to arise. If the messages from Trafalgar Holdings prove to be genuine and on good authority, we shall need to @nsider once again the impli- cations for the Hong Kong Government's issuing either indefinite leases or leases which expire after 1997.

3. You have given your opinion that the Hong Kong Government has the power to grant such leases I should be grateful for your views on the following:

(a) whether there is anything in the sort of lease being sought

by Trafalgar Holdings which will necessitate our looking once again at the question of an Order in Council (bearing mind mind the Chinese reactions to our representations last year);

(b) whether legislation will be required to permit the Hong Kong Government to issue indefinite leases or leases which are written to expire after 1997;

(c) whether a land development premium relating to a lease in

the New Territories can in fact be spread over 20 years (paragraph 2 of Dr Wilson's letter of 5 June) beyond 1997 and to whom would the premium be payable after that date; (d) whether the Hong Kong Government would be obliged to extend

to other leaseholders the terms and conditions of any lease. granted to China Resources/Trafalgar Holdings;

(e) whether other leaseholders would have any recourse in law to

seek leases on the same terms and conditions as any granted to China Resources/Trafalgar Holdings.

12 June 1980

cc:

Mr Williamson

Mr Clift

+

P I Webb

Hong Kong and General Department K242

233 3988

not indefinite leases, unless law is changed.

itu

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