G.F. 323
CONFIDENTIAL # Z
6.
(b) Largely because of (a) the Walled City Kaifong Welfare
Promotion Committe refrained from giving overt support to
the developers and in consequence it has weakened its
position vis-a-vis the developers and some of the residents.
Depending on C.P.G.'s position they might be tempted to. regain
lost influence by stirring up trouble this time.
(c) The swift, firm but fair action taken by Government against
a few unscrupulous developers was generally accepted by the
Walled City, residents and the public at large. The mood might be
!.
different this time as many of the people involved are small men
who have invested their life's saving in flats which they have
occupied in some cases for more than 3 years without interference
or warning from Government.
Compensation and Rehousing
13.
The decisive factor on the degree of resistence will be the scale
of compensation and suitability of rehousing which can be offered to those
affected. Indeed, all other problems are subordinated to this single element.
It is therefore essential that bafore any action is taken an adequate
It was recommendea
compensation policy must be formulated.
- G.S.C.
paper 25/76 that provision of cash compensation and the alternative accommodation for those affected should be guided by the policy on the acquisition and clearance of land which was agreed by Executive Council
on 18th May 1976 (XCC(76)18).
14.
"Advance
Under this policy and the subsequent introduction of the Compensation Scheme" for acquisition and clearance of land following Finance Committee approval on 9th June 1976 flat owners and domestic occupiers
of post-war buildings cleared for a public purpose have the following
entitlements:-
(a) Flot owners cash compensation equivalent to the market
value of their flats;
CONFIDENTIAL
/(b)
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