A new lease has been worked out for a military welfare and recreation club which has been used by visiting sailors since the Vietnam War. The rental agreement on the Fleet Arcade in Wan Chai expires today but will be extended automatically on a quarterly basis, according to a government spokesman. The land at Fenwick Pier, containing a shopping complex, a welfare office and other recreation facilities, is rented to the Servicemen's Guides Association for just $1 a year. The special deal was struck because of the services offered on a non-profit-making basis to servicemen from United Nations countries but was under threat because of the Wan Chai reclamation project. It was also feared that if the number of US ship visits was cut the complex would have less of a future. A spokesman for the Hong Kong West District Lands Office said yesterday the premises were covered by a five-year short-term tenancy from May 1, 1992, which would be renewed. 'The rental will continue to be $1 per annum,' he said. He was unable to say for how long the lease would continue to be renewed but it is understood the association will be able to remain throughout 1998 and 1999. After that it may be affected by harbour reclamation work.