CONFIDENTIAL
Foreign and Commonwealth Office
London SWAXZAH Apollo House, Croydon, CR9 3RR
Telephone 01-
Mr Hung
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Your reference
R E Holloway Esq CMG British Trade Commission Hong Kong
Our reference
Date
19 May 1986
CONSULATE GENERAL IN HONG KONG AFTER 1992
1.
4
Having recently seen a copy of the Governor's letter of 17 April to the PUS, Mark Bertram has asked me to respond (rather belatedly I am afraid) to the first point in your note of 4 March recording the discussion with the Chief Secretary.
2.
Legal advice here is that although as a generality a lease negotiated prior to handover will continue after 1997, unless some special provision is made to preserve the lease, the normal rules of state succession will operate in 1997; any lease vested in any manifestation of the Crown will then pass to the successor state authority. This will apply, regardless of whether the lease was granted by the HK Government or if the Secretary of State had taken a sub-lease from a private or corporate body. Copies of recent minuting by the legal adviser are enclosed for background.
3.
Therefore, the weight of opinion here is that whatever is done to acquire property for consular premises, it will be necessary to ensure that the successor authorities will treat the Secretary of State's title to any property as an exception to the general rule. Consultations with the Chinese are unavoidable therefore in all cases.
нин HALA 40611
RECEIVED IN REGISTRY`
4 JUN 1986
DESK OFFICER
INDEX
REGISTRY
PA
Action Taken
A F Smith
Overseas Estate Department
bec Mr Battiscombe, PUSD
Mr Layden, HKD
CONFIDENTIAL
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