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(c)
to say that the effects of the Report on the New
Territories are still being worked out. He can
re-assure the Kuk that the re-organization does
not in any way reduce the importance that is attached
to New Territories' affairs; on the contrary, it
should enable the Hong Kong Government to improve
their performance in the New Territories, as else-
where in the Colony. He may also like to seek
the Kuk's views.
Land Policy. The Hong Kong Government are working
towards new legislation to replace the present
Crown Lands Resumption Ordinance, the provisions
of which the Kuk have criticized as being unfair
in respect of compensation. The Kuk have taken
the position that, as advised by the Governor, they
will work towards a solution with the DC, New Terri-
tories, and the Hong Kong Government, and that they
are awaiting the outcome of earlier discussions.
The High Island Water Scheme. The Kuk have so far
only taken a marginal interest in the project, but
as the time for the resumption of land and the
removal of villages in the reservoir area approaches
they are showing greater interest. Most of the
details of the compensation package have been agreed;
the main part of the deal consists of the re-housing
of villagers in shops and flats nearing completion
at Sai Kung.
CONFIDENTIAL
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