TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 168

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"

I understand that the Chinese Government do not

recognize the Convention of 1898 which leased the New Territories for a term of 99 years. The present position is that Hong Kong as a whole, including the New Territories, is under British administration. It would be unrealistic to suppose that Hong Kong can continue as a British dependent territory for all time

and it will no doubt fall to some future British

Government to negotiate with the Chinese Government

about a change in its status. It would be quite impracticable for Britain to vacate the New Territories

while continuing to administer what was left and indeed

we have no reason to suppose that the Chinese would

expect us to do so.

Until the day comes when the Chinese indicate that

they desire a change, our administration of Hong Kong

as a whole must necessarily continue so as to avoid a

vacuum and the expiration of a term fixed at the end of the last century, when circumstances were very different, is not likely to be significant.

The Order in Council of 1898 under which the New

Territories are administered is however linked to the

expiration of the lease and this has caused some anxiety among lawyers in Hong Kong. I am therefore arranging for a further Order to be submitted to Her Majesty so as to prevent our powers of administration from expiring

in 1997. It will thus be possible for us to maintain

our administration over Hong Kong as a whole until such time as it becomes appropriate for the UK to relinquish its responsibility for the entire territory".

11. My suggested statement is of course worded only tentatively and would require careful polishing. Likewise the question of

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/ giving