TNAG-2658-FCO40-3854-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 20

CONFIDENTIAL

120655

MDHIAN 326

FURTHER. IT WAS AT THIS POINT THAT WE RECEIVED TUR.

4. IN CONSIDERING HOW BEST TO PROCEED, WE BELIEVE THAT WE NEED TO TAKE ACCOUNT OF THE FOLLOWING POINTS:

(A) ANY CHANGES TO THE STANDARD GENERAL CONDITIONS APPLICABLE TO

PRIVATE TREATY GRANTS WHICH WE HAVE AGREED WITH THE LAND COMMISSION, OR THE INSERTION OF ANY SPECIAL CONDITION OF THE KIND PROPOSED BY THE BTC, MIGHT NECESSITATE CONSULTATION WITH THE CHINESE, WHICH WILL COMPLICATE THE PROCESS OF REACHING A SPEEDY AGREEMENT ON THE CONDITIONS OF GRANT:

(B) THE BCG LAND LEASE, ONCE EXECUTED, WILL BECOME A PUBLIC

DOCUMENT. THE CHINESE WILL NO DOUBT OBTAIN A COPY. THEY WILL BE SENSITIVE TO ANY SUGGESTION IN THE DOCUMENT ABOUT THE

CONFERMENT OF CONSULAR STATUS AFTER 1997 BY THE HKG RATHER

THAN THE CPG: AND

(C) THE VIENNA CONVENTION LAYS DOWN DETAILED PROVISIONS REGARDING

CONSULAR STATUS AND PRIVILEGES. IN DRAFTING ANY GUARANTEE, WE HAVE TO BE CAREFUL NOT TO PUT A GLOSS, HOWEVER INADVERTENT, ON THE DETAILED PROVISIONS OF THE CONVENTION.

5. WE HAVE NOW ALSO RECONSIDERED OUR EARLIER PROPOSAL OF A SIDE

LETTER. GIVEN THE KNOWN CHINESE POSITION THAT ANY OBLIGATION ENTERED INTO BY THE HKG DOES NOT NECESSARILY BIND THE FUTURE SARG, WE HAVE CONCLUDED THAT A GREATER DEGREE OF CERTAINTY CAN BE ACHIEVED, AS PROPOSED BY THE BTC, BY BUILDING ANY NECESSARY ASSURANCES INTO THE LEASE DOCUMENT, THE INTEGRITY OF WHICH IS PROVIDED FOR UNDER BOTH THE BL AND THE JD.

6. OUR CONSIDERED VIEW IS THAT A PROVISION CAN BE INCLUDED ALONG THE LINES THAT NOT WITHSTANDING THE TERMS OF THE VARIOUS CONDITIONS LAID DOWN IN THE LEASE, THE GOVERNMENT SHALL, IN EXERCISING ITS POWERS, ACT AT ALL TIMES IN CONFORMITY WITH ANY INTERNATIONAL OBLIGATIONS THAT MAY BE APPLICABLE, BEARING IN MIND THE APPROVED USE OF THE PREMISES. THIS PROPOSAL HAS THE FOLLOWING ADVANTAGES:

(A) BY REFERRING GENERALLY TO APPLICABLE INTERNATIONAL

OBLIGATIONS, IT LEAVES THE DOOR OPEN FOR HMG TO NEGOTIATE DIRECTLY WITH THE PRC ON MATTERS OF CONSULAR PRIVILEGES AND IMMUNITIES FOR THE BCG IN HONG KONG, IF THIS IS CONSIDERED NECESSARY OR APPROPRIATE: