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years, its published accounts have to be 'qualified' by a
statement showing how the investment will be recouped during
the currency of the lease. In any case, a short lease
without rights of renewal is not a satisfactory basis for
short-term projects.
Previous Attempt
7.
A previous attempt in 1979 to persuade the PRC to
agree that the UK might take power to administer the New
Territories after 30 June 1997 and meanwhile to grant
leases running after that date failed, possibly because the
PRC were not ready at that time to commit themselves in
any way.
Present Obstacle
8.
No progress in this matter can be made until such
time as it is possible to convince the PRC that, if the
Hong Kong Government cannot be enabled to grant leases in
the New Territories running after 30 June 1997 the economic
development of Hong Kong will be severely damaged, to the
detriment of China's modernisation programme.
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