TNAG-0944-FCO40-1163-Future-of-Hong-Kong-1980 — Page 129

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HICK OHoll

RECOINED IN REGISTRY NO. 51

13 AUG 1980

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DECK OFFICER

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REGISTRY Action Taken

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MEETING WITH SIR MURRAY MACLEHOSE: FRIDAY, 8 AUGUST 1980: FUTURE OF HONG KONG AND LEASES IN THE NEW TERRITORIES

1. You have agreed to chair the meeting in your office at 3 pm on Friday, 8 August. HMA Peking will attend the meeting. The Political Adviser, Hong Kong, has also been asked to attend, as well as Mr McLaren, Mr Morrice and myself.

2.

The meeting offers an opportunity to follow up the discussion between Mr Blaker and the Governor on 14 July (record attached) with the aim of submitting agreed views to the Secretary of State for his visit to China at the beginning of October.

3.

The meeting between the Hong Kong Attorney General, the FCO Deputy Legal Adviser and a representative of the Law Officers Department took place on 1 August. A minute by Mr Rushford, with comments by Mr Griffiths, summarises their discussions. Also attached is the brief for the last meeting between Mr Blaker and 2.3)

the Governor.

I suggest that the political discussion should focus on three main areas:

4.

5.

a) Strategic: our assessment of Chinese aims; our own

aims, long and short-term, and the order in which we should pursue them.

b) Tactics: the political consequences of the legal views

on property leases. Can we pursue the leases idea with/ without legislation? If so, what should we say to the Chinese? What is our fall-back position if action on leases proves impracticable?

c) The line for the Secretary of State to take in Peking.

I attach a suggested list of points for discussion. In practice ATTACHED

I suspect that most time will be spent on the options available in the light of the legal opinions. These were unfortunately not conclusive. Mr Rushford believes that the Hong Kong Government have the power to issue leases beyond 1997 without further legis- lation. The two other lawyers disagree. As to possible Chinese concern about their position in international law if they agreed to our enacting legislation for leases beyond 1997, the Legal Adviser's view is that nothing would have to be done by the Chinese, beyond possibly reiterating their usual line on sovereignty. They would not be committed to maintain any existing Hong Kong institutions. or laws if and when they assumed the administration of Hong Kong. Their freedom of action would not be impaired by any legislation we had enacted.

SECRET

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