TNAG-2490-FCO40-3622-Future-of-Hong-Kong-Basic-Law-1992 — Page 37

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(b)

(c)

the Convention of Peking (1860) under which the southern part of the Kowloon Peninsula and Stonecutters Island were ceded in perpetuity; and

the Convention of 1898 under which the New Territories were leased to Britain for 99 years from 1 July 1898.

It was due to the fact that the New Territories are subject to a lease with a fixed expiry date that the British Government had to enter negotiations with the Chinese Government on Hong Kong's future.

(2) Concern over land leases

In the late 1970's, as the period before the termination of the New Territories lease continued to shorten, 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 realisation of the problem posed by individual land leases granted in the New Territories, all of which are to expire three days before the expiry of the New Territories lease in 1997. It was clear that the steadily shortening span of these leases and the inability of the Hong Kong Government to grant new ones extending beyond 1997 would be likely to deter investment and damage confidence.

(3)

(4)

Visit of the British Prime Minister to China

Against this background, the British Government decided that the Prime Minister's visit to China in September 1982 would provide 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. On 24 September 1982, joint statement was issued stating that the two Governments had agreed to enter talks through diplomatic channels with the common aim of maintaining the stability and prosperity of Hong Kong.

Course of the Negotiations

a

Formal rounds of talks began from July 1983 between delegations led by the British Ambassador in Beijing, Sir Percy Cradock, and the Vice-Minister of the Chinese Foreign Ministry, Yao Guang. The Governor of Hong Kong took part as a member of the British delegation.

2