TNAG-2960-FCO40-4239-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 58

CONFIDENTIAL

8.

The Joint Declaration provides that we may establish a Consulate General in Hong Kong after 1997. It also lays down a procedure whereby half of all premia obtained from land sales before 1997 are put by for the future Hong Kong Special Administrative Region (SAR).

Since we would be obtaining a piece of land free of charge, the Chinese might object to the fact that the future Hong Kong SAR Government was foregoing revenue. They could also seek to make difficulties because of our differences with them over the Nationality Bill, the Bill of Rights and other Hong Kong issues. We shall therefore need to explain our plans to them with great care.

9.

I am copying this minute to the Chief Secretary.

Foreign and Commonwealth Office

17 June 1990

CONFIDENTIAL

DA.

(DOUGLAS HURD)