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THE NEGOTIATIONS
5.
In the late 1970's, as the period before the termination of the
New Territories lease continued
lease continued to shorten, significant concern
about the future of Hong Kong began to be expressed both in the
territory itself and among foreign investors. In particular there
was increasing anxiety about individual land leases granted in the
New Territories, all of which are set to 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. Her Majesty's Government had by this time, following a careful
examination of the problem conducted in consultation with the
Governor, concluded that confidence would begin to erode quickly in
the early to mid-1980s if nothing was done to remove the
significance of 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 [month] 1979 at the invitation of the Chinese Government,
discussions took place on the problem of land leases in the New
Territories. These discussions did not result
the problem. However Chairman Deng Xiaoping formally requested the
Governor to tell investors in Hong Kong to put their hearts at
ease.
in
measures
to solve
7. In the course of the next two years concern in Hong Kong about
the future mounted. Public calls for the British Government to open
discussions with China on the future of the territory came
from a
number of Community leaders in Hong Kong including the senior
Unofficial Member of the Executive Council and the Chairman of the
Hong Kong Civic Association.
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