TNAG-1166-FCO40-1446-Future-of-Hong-Kong-1982 — Page 18

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3.

1)

m)

sufferance or other lawful means] within the New Territories

power and jurisdiction but any form of words

that did not involve a fixed termination date might be effective;

if the PRC were willing to signify its acceptance of satisfactory new arrangements for the administration of the New Territories by the UK (either by formal agreement or otherwise), this would obviously provide the best basis for fresh UK legislation;

it is however possible to envisage "unilateral" legislation that might suffice with the tacit acquiescence of the PRC even though the PRC would not agree in advance.

As regards the particular question of Crown leases in the New Territories, my propositions are:

а

a)

during the currency of the international lease, Crown has full powers of government of the New Territories;

the

b) the UK could not cede the New Territories to

another State, nor I imagine could it assign the international lease to another State or grant other sovereign rights to another State;

c)

a)

e)

f)

there is however nothing to prevent the Crown from entering into the kind of domestic transactions in the New Territories that are normally carried by governments, including the leasing of public land, provided that such transactions are permitted under the municipal law;

the UK is entitled to clarify or modify the municipal law to make it clear that the Governor may grant Crown leases in the New Territories for any appropriate terms, whether or not they would expire after 30 June 1997;

the UK cannot guarantee what will happen after the eventual cessation of British administration though the UK will obviously do its best to ensure that private rights are respected;

the PRC need not object to the grant of leases running after 30 June 1997 - if such leases are still current when the PRC eventually assume the administration

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