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They might prefer that this should relate to Hong Kong as a whole rather than simply to the New Territories.
8. As I do not know what the Chinese might be willing to do or say about the future of the British administration in Hong Kong, I cannot state positively what legislative steps HMG would need to take or to what extent any such steps would be acceptable
to the Chinese.
9. If the Chinese were to do something that clearly implies that the ninety-nine year term has been varied (which seems unlikely) we might consider leaving the 1898 Order alone, but this might create uncertainty among local lawyers.
10. It would thus seem preferable either:
11.
a) to delete the words "and for the term" from Article 1
of the 1898 Order; or
b)
to make a political declaration that HMG regarded the New Territories as forming part of the colony until such time as arrangements were made with China for their return or for so long as Hong Kong as a whole remained under British administration and at the same time to revoke the 1898 Order by a further Order reciting the declaration.
In the meantime it would in my view be unwise to say anything specific to the Chinese about our prospective legislation or to imply that any legislation would require their concurrence.
12. What seems desirable is a clear understanding with China about the continuance of British administration in Hong Kong as a whole. Given an understanding, we should be able to take any necessary legislative steps without offending them.
13. If however no clear understanding can be reached, there
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/ might
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