TNAG-1513-FCO40-2071-Hong-Kong-Mass-Transit-Railway-Corporation-1986 — Page 17

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Room K190

Foreign and Commonwealth Office

London SW1A 2AH

GH Beetham Esq Legal Adviser

Department of Transport 2 Marsham Street

London SW1P 3EB

Telephone 01-233 4043

Your reference

L.4232A

Our reference

Date

18 February 1986

Dan Beetham,

HONG KONG : MASS TRANSIT RAILWAY

1.

I apologise for the delay in replying to your letters of

2 December 1985 and 28 January 1986 to Paul Fifoot. We do not know for certain whether the Government of the Hong Kong Special Administrative Region (SAR), which will come into being on

1 July 1997, will consider that this kind of agreement continues in force, or whether it will take the view that the agreement ceased when the Government of Hong Kong (i.e. of the Colony) disappears on 30 June 1997. While in general it would be our view that the Government of the Hong Kong SAR should succeed to the rights and obligations of the Government of Hong Kong, at least in the sphere of private contracts, the kind of agreement you have in mind might well not continue beyond 30 June 1997. If certainty is required it would be necessary to discuss the matter with the Chinese at a suitable stage. However, you would not seem to need a definitive answer before concluding the agreement in question.

2.

Provided that the words "the Crown Colony of" in paragraph 9 of the agreement are omitted, the text of the agreement would appear to be neutral on the question of its continuance after June 1997.

Your sincvely,

Michael C. wood

M C Wood

Legal Adviser

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RECEIVED IN PEGISTRY

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INDSA

2 5 APR 1986

PA

ctor Teken

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