TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 309

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3. private companies will

agree

that

contumie to operate withh deir present assets as private compaies after 1997. This difficulty derives directly from de fact that all leases of land in de New Teritares are written to expire in 1997. We know, two, dat it will be impossible (because of Chinese apposition) to grant fixed

or indeterminate leases to expire after 1997. However

if

auditors in Hong Kong could companies operating in Hong Kong do so under special ircumstances and that, in de light of is most likely that private companies with antenie to operte with this private assets after 1997, investors might be further re-assured

by de confidence of dew own auditors. This would depend making a funding so to persuade auditors to play down the importance of 1997. It would not resolve te practical and technical regal problems of land leases in the New Teritores after encveraged 1997 but dere may be some cosmetic advantage The Hong Koyland hovertalent lehto have already pesuaded than recountants to ds his.

on ou

a

way

Thaw cincitment in the New remous

Chinese assurances to investors it

large boy For invernment's in the N.T.

lined be

to seek

specific

assurances

about their

(ii) Businessmen to seek specific assurances from de Chinese on the future projection

We might consider the possibility of encouraging

regularly

by km

vratility

to China to from the

teading businessmen in Hong Kong who travel

press for more specific assurances from their hosts on the future of Hong Kong. Deng Xiaoping has told investory to put der minds

if investors remain

at ease. What does this mean

uneasy?

? What

Our

iii) Businessmen to stress the need for practical measures to be aqueed

by de Chinese to resolve the technical problems of New Teritories leases. This amounts to a continuations of present diplomatic

representations trough other means. It would serve as a reminder

practical problem remains and dat business confidence may soon be undermined

to de Chinese tat

И

if

it is not

resolved. The danger, as in our own representations, is that the problem world be over wied and that the Chinese would be forced into taking precipate actii

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Hat way

Livr