TNAG-0944-FCO40-1163-Future-of-Hong-Kong-1980 — Page 71

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93

FM HONG KONG 041025Z SEP 80

TO IMMEDIATE F C O

TELEGRAM NUMBER 1111 OF 4 SEPTEMBER

AND TO IMMEDIATE PEKING

AKK oudi

RECEIVED IN REGISTRY NO.

0 5 SEP 1980

DESK OFFICER

FOLLOWING FOR CLIFT, HONG KONG AND GENERAL DEPARTMENTA PEKING TELNO 552 TO YOU: HONG KONG LEASES AND THE ALTURE.

REGISTRY Action

I THOUGHT IT WAS AGREED AT OUR MEETING THAT ON POST-1997 LEASES WE SHOULD MENTION THE THEORETICAL POSSIBILITY OF CHALLENGE AND CONSEQUENT REQUIREMENT FOR RETROACTIVE LEGISLATION, AND WITH REGARD TO PERIODIC LEASES WE SHOULD POINT OUT THAT THE POSSIBILITY OF NEITHER CHALLENGE NOR LEGISLATION AROSE (MY TEL 1082). I WOULD MUCH PREFER NOT TO SUGGEST PRIOR LEGISLATION, BECAUSE I THOUGHT THE MEETING WAS AGREED THE CHINESE WOULD NOT LIKE IT, AND THIS IS STILL MY VIEW. IF PEKING FEEL STRONGLY I WOULD NOT OBJECT TO PRIOR LEGISLATION BEING MENTIONED AS AN ALTERNATIVE SUBJECT TO CHINESE PREFERENCE.

2. I SUGGEST THAT THE FINAL PHRASE IN SQUARE BRACKETS IN PARA 4 OF THE SUPPLEMENTARY BRIEF SHOULD BE DELETED. WE MUST STICK TO THE IMMEDIATE PROBLEM OF INDIVIDUAL LEASES.

3. HOWEVER I ASSUME THAT IF THE S. OF S. IS ASKED TO PRODUCE A SOLUTION ON LEASES AND SUGGESTS REFERENCE TO OFFICIALS, THE PROCEDURE WILL BE TO HAND OVER A PIECE OF PAPER IN DUE COURSE FOR STUDY BY THE MFA. THERE SHOULD THEREFORE BE PLENTY OF TIME TO DISCUSS A DRAFT AFTER THE VISIT.

4. MY LETTER TO YOU OF 22 AUGUST WAS INADVERTENTLY NOT COPIED TO PEKING. I AM, THEREFORE, NOW COPYING THE ENCLOSED NOTE TELEGRAPHICALLY (THERE BEING NO POINTS OF SUBSTANCE IN THE COVERING LETTER).

MACLEHOSE

LIMITED D

HRGO

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PS/MR BLAKER SIRE YOUDE MR DONALD

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