TNAG-0944-FCO40-1163-Future-of-Hong-Kong-1980 — Page 92

DSR 11C

SECRET

-2-

effect to the Governor's power to issue leases beyond 1997 in

the New Territories, as in Hong Kong.

would be 'for the avoidance of doubt'.

The Order in Council

It would not refer

to continuing British administration [although this would

be implied].

5. An alternative would be to issue periodic leases

for one year which would be automatically rolled forward

annually and have no termination bar except if the land in

question is required for 'public purposes'. This has

political and legal attractions, but less good than

the first alternative from the investors point of view.

SECRET

S4200(22454) DD.0532198 300M 7/79 GWB LTD.GP.870