CONFIDENTIAL

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This 1977 programme for new Licensed Areas is designed to meet all known clearance commitments, with a small margin. Over and above this, we estimate there could be up to 3,000 person-spaces required for persons evicted from redeveloped private buildings (particularly rooftop squatters), but we intend to cater for these by turning over spaces in existing Licensed Areas, unless the requirement for clearances turns out to be less than estimated.

To deal now with the specific case of the

150 odd Sai Yeung Choi Street rooftop squatters, their problem arises from the owner's plans for redeveloping this private building, hence removing the free accommodation hitherto enjoyed by these illegal squatters. The practice is to offer Licensed Area space to such families (the main body of tenants never seeks any assistance from the Housing Department), and in the year 1975/76 the department housed over 800 evicted rooftop squatters in Licensed Areas. In this particular case, the current demand for Licensed Area space for Government clearances and other unavoidable purposes means that we simply cannot offer new Licensed Area space to them until June; but the "turnover" exercise mentioned in the previous paragraph should allow old licensed area space to be offered to them about April. Meantime, the best that can be done for them is the offer of accommodation at the Shamshuipo Transit Centre, which is admittedly unsatisfactory for such a long- term stay but which is of a far better standard (being released Army barracks huts) than other such Centres.

I should add that Mrs. Elliott could, had she wished, have raised her concern over this case in the Housing Authority's Operations Committee, but she has not seen fit to seek help for them in this way (if indeed they need help). Instead she seems to have sought publicity. Finally, please note that she has not bothered to visit the Shamshuipo Transit Centre before condemning it in such extravagant terms.

I enclose an editorial and a feature report on this subject from the "Star" newspaper, together with an editorial from today's South China Morning Post.

Mous ever,

Ра

Enclosure

(I.M. Lightbody)

P.S. I hope the enclosed photographs of old and new-style Licensed Areas will give some indication of progress on this front.

CONFIDENTIAL

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