05-JAN-1993
15:39
CONSTITUTIONAL AFFAIRS BR
+ 852 840 1976
P.11
A.
10
This is a realistic question. 1997 is only 4 years away. Investors have to ask if their investment would still be protected after 1997, especially contracts with the Government. This is a realistic question, a question one has to face and one that has to be resolved. This is why we issued a statement earlier announcing that all contracts straddling 1997 that requires responsibilities and obligations of the SAR Government must first be discussed with China. All investors would raise this question. From a legal standpoint, the British Hong will end on June 30, 1997.
cannot transcend 1997.
contracts it makes can be
1997.
Kong Government's rule Its acts as a government According to law, the valid only until 30 June
It will act ultra vires if it makes contracts extending beyond that date. But this is not a new problem. Way back in 1979, the British asked through diplomatic channels that New Territories land leases be extended beyond 1 July 1997. The issue was raised because at that time it was seen that 1997 was not very far away.
leases have to
she raised the
to
was
То protect investors' interests, be longer than a mere few years. issue in the hope that we would agree
So
an extension of land leases beyond 1997. What we then had in mind was primarily a sovereignty issue. We do not accept unequal treaties. The British could not extend leases beyond 1997, and we disagreed with the British request. Subsequent talks over Hong Kong triggered by this. This is the reason behind the Annex III (to the JD) on land leases. Apart from land leases, other contracts were not mentioned in the Joint Declaration. The bilateral talks did not cover these either. But they were of the same nature. This is not a new, but an old, problem. In the talks over the new airport, we've made it clear to the British
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