TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 178

CODE 18-77

SS 8/78

д

Mr Morrice

Mr

Mr Webb

Kr William or

SECRET

Reference

29

suggest out Morwell start's doing the proud.

(b), (c) and (d).

1015

NEW TERRITORIES LEASES

1.

Никоно

RECEIVED IN DTASSYY KU. $1

- 2 JUN 1930

DESK OFFICE

PY

Following are the main points covered at our meeting on

15 May:

Tactics:

ميل

PW 19/0! AW 1918

We agreed that we could not work out any timetable until the report of the Financial Secretary's visit to China was received, together with Hong Kong's and Peking's further comments. would probably need to submit then.

Legal Issues:

(a) Hong Kong Government's Right to Issue Extended Leases:

We

We have a firm legal opinion, agreed in both Hong Kong and London that they have such a right. We cannot at this stage do more to counter any doubts which may arise as to the validity of that opinion. It would of course be assistance if the Chinese were prepared to make assurances to firms indi- cating that they accepted the position, even if they were not prepared to do so publicly.

(b) Chinese Representation in Hong Kong:

We agreed to look at the legal implications of this, taking account of previous consideration during and after the War and more recently. We should be prepared for the Chinese to raise this, but not necessarily in the context of the leases question. We need to put to Legal Advisers a series of hypothetical cases covering different functions and titles for a representative.

(c) Sovereignty:

Although this is not likely to come up soon, we should be prepared in case the Chinese propose some kind of statement implying our recognition of their ultimate sovereignty over Hong Kong. Would this affect the current basis of British administration in the territory?

(d) Citizenship:

Can we identify any implications for citizenship of Hong Kong residents if a statement on the lines of (c) were made?

16 May 1980

风

R D Clift

Hong Kong and General Department

SECRET