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Constitutional Affairs, to bring a more political view to bear on the subject. Mr Sze replied on 23 February proposing new language for Special Condition 14 of the PTG. He was
sympathetic to our concerns but anxious to avoid any further consultation of ExCo (or the Land Commission) over the terms of the land grant. This instinct is sound; we could not
guarantee the outcome if we had to go back to ExCo or consult the Chinese, and might end up significantly worse off. The
new language followed extensive consultation within the HKG
and the Governor was consulted.
The result is a significant improvement. attacked. 4.
Our Departmental Legal Adviser and OED agree that we should accept it subject to two amendments which would strengthen the requirement for the Hong Kong Government (and the HKSARG) to comply with their international obligation to pay prompt, adequate and effective compensation. We believe that Mr Sze will accept these amendments. Our Departmental Legal Adviser has prepared the ground by discussing the amendments direct with the main Legal drafter on the Hong Kong side; he responded positively.
5. With this redraft, we have achieved our main objective. The text anchors compensations firmly to the international legal obligation; it allows for disputes about the level of compensation to be submitted to arbitration; it extends period of 24 months' notice to quit (rather than the 12) originally proposed. Subject to our amendments we are unlikely to do better and I recommend accepting the terms as representing the best protection for HMG that we can
negotiate.
PF Ricketts
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