TNAG-0945-FCO40-1164-Future-of-Hong-Kong-1980 — Page 81

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Mr Donald

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RECEIVED IN REGISTRY NO. 51

11 NOV 1980 SECRET

STRY

INDEX

Action A

M.

хоче лу

$19.11.

Sir E Youge

FUTURE OF HONG KONG

Mr Williamon

Act pl. NB X $1

proceed. You. An Dol

had better have a talk alot

(b) when x

you

have a pomesinal

int line

ready

1. The following summarises points agreed at Sir E Youde meeting with the Governor of Hong Kong on 3 November.

New Territories Land Leases

72/11.

2. a) Short-term tactics: The Chinese should be left to consider

the points made to Huang Hua in October. Although HM Ambassa- dor, Peking would like to open discussion on possible solutions as soon as possible, no significant response was likely to come through officials and would probably have to be obtained at the highest level. Thus no move should be made on our side before the Secretary of State's visit except in response to a Chinese approach. If HM Ambassador, Peking, were asked for his views he should reiterate the reasons for our concern and seek instructions. In deciding on how he should respond, we would need to update the guidance prepared for Sir E Youde for his visit to Peking in October.

b) Secretary of State's visit: The line for the Secretary of State would have to depend on whether the Chinese moved meanwhile. If they had come back on concrete cases in the New Territories, there should be something definite to build

If not, Lord Carrington should be advised to reiterate the reasons for our concern and, in particular, to make clear that we were concerned with more than a mechanical problem over mortgages.

on.

c) Later action: A plan of campaign for late 1981s even more dependent on intervening events and no timetable could be fixed. The Governor thought that even mid 1981 might be too early for us to take the initiative in approaching the Chinese if they had not responded meanwhile. Much would depend on how business confidence had developed. We would also need to take into account whether a visit by the Prime Minister was to take place in 1982. If so, this could be the best point at which to tackle the question of land leases.

d) Concrete cases: Tin Shui Wai was the main example. The

land had now been bought for £60 million. The developers' report advocated a first stage of housing projects which would not be available until the late 1980s. Development as a whole would not be complete until the mid 1990s. developers would have to apply to the Government for the conversion of their lease from an agricultural one to a development lease. It would then be open for them to apply

/for

The

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