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EXPIRE 3 DAYS BEFORE THE EXPIRY OF THE NEW TERRITORIES LEASE IN 1997. THERE WAS A DANGER THAT THE STEADILY SHORTENING SPAN OF THESE LEASES, AND THE INABILITY OF THE HONG KONG GOVERNMENT TO GRANT NEW ONES EXTENDING BEYOND 1997, WOULD DETER INVESTMENT AND
DAMAGE CONFIDENCE.
6. THE GOVERNMENT HAD BY THIS TIME, FOLLOWING A CAREFUL EXAMINATION OF THE PROBLEM CONDUCTED IN CONSULTATION WITH THE HONG KONG GOVERNMENT, CONCLUDED THAT CONFIDENCE WOULD BEGIN TO ERODE QUICKLY IN THE EARLY TO MID-1980S IF NOTHING WAS DONE TO ALLEVIATE THE UNCERTAINTY CAUSED BY THE 1997 DEADLINE IN A WAY CONSISTENT WITH THE POSITION OF THE CHINESE GOVERNMENT ON HONG KONG'S FUTURE. ACCORDINGLY, WHEN THE GOVERNOR OF HONG KONG VISITED PEKING IN MARCH 1979 AT THE INVITATION OF THE CHINESE MINISTER OF FOREIGN TRADE, DISCUSSIONS TOOK PLACE ON THE PROBLEM OF LAND LEASES IN THE NEW TERRITORIES. THESE DISCUSSIONS DID NOT RESULT IN MEASURES TO SOLVE THE PROBLEM.
7. IN THE COURSE OF THE NEXT TWO YEARS THERE WAS INCREASING AWARENESS OF THE NEED TO REMOVE THE UNCERTAINTY WHICH THE 1997 DEADLINE GENERATED, AND SOME DISCUSSION OF HOW THIS MIGHT BE ACHIEVED. THE IMPORTANCE OF THE ISSUE WAS PUBLICLY STRESSED BY THE SENIOR UNOFFICIAL MEMBER OF THE EXECUTIVE COUNCIL IN MAY 1982. IN JANUARY 1982 SIR (THEN MR) HUMPHREY ATKINS, LORD PRIVY SEAL, VISITED PEKING AND WAS GIVEN SIGNIFICANT INDICATIONS OF CHINESE POLICY TOWARDS HONG KONG BY CHINESE LEADERS, WHICH CONFIRMED THE VIEW OF THE GOVERNMENT THAT NEGOTIATIONS SHOULD BE OPENED WITH THE CHINESE GOVERNMENT.
THE PRIME MINISTER'S VISIT TO CHINA
8. AGAINST THIS BACKGROUND THE GOVERNMENT DECIDED THAT THE PRIME MINISTER'S VISIT TO CHINA IN SEPTEMBER 1982 WOULD PROVIDE AN OPPORTUNITY TO OPEN DISCUSSIONS WITH THE CHINESE GOVERNMENT ON THE FUTURE OF HONG KONG. IT WAS EVIDENT THAT THE CHINESE GOVERNMENT HAD REACHED THE SAME CONCLUSION, AND SUBSTANTIVE DISCUSSIONS TOOK PLACE DURING THE VISIT. FOLLOWING A MEETING BETWEEN THE PRIME MINISTER AND CHAIRMAN DENG XIAOPING ON 24 SEPTEMBER 1982 THE FOLLOWING JOINT STATEMENT WAS ISSUED: 'TODAY THE LEADERS OF BOTH COUNTRIES HELD FAR-REACHING TALKS IN A
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