TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 75

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WOULD BE STRAIGHTFORWARD LEASE STRETCHING BEYOND 1997. POSSIBLE,

THOUGH UNLIKELY, THAT SUCH A LEASE MAY BE CHALLENGED IN COURTS.

IF SO, ITS VALIDITY CAN QUICKLY BE ESTABLISHED BY LEGISLATION.

THIS WOULD BE NO PROBLEM AND WOULD NOT NEED TO REFER TO CON-

TINUING BRITISH ADMINISTRATION.

3. ANOTHER POSSIBILITY WOULD BE TO ISSUE A LEASE FOR ONE YEAR

ONLY, BUT AUTOMATICALLY RENEWABLE EACH YEAR UNLESS LAND REQUIRED

FOR 'PUBLIC PURPOSES'. PROBABLY NOT SO ATTRACTIVE TO INVESTORS,

BUT COULD NOT BE CHALLENGED IN COURTS.

4. DO CHINESE HAVE VIEWS ON OTHER WAYS OF TACKLING PROBLEM?

SHOULD IT TAKE FORM OF JOINT DECLARATION GUARANTEEING RIGHT TO

PROPERTY IRRESPECTIVE OF 1997?

SIGNED R D CLIFT

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