CONFIDENTIAL #

For discussion

on 6th September 1977

1. HKK 360/4

14 GER 1983

SA

XCC(77)68 29 Copy No

Page No 1 of 3

MEMORANDUM FOR EXECUTIVE COUNCIL

THE LAND "PROBLEM" IN THE NEW TERRITORIES

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Honourable Members are aware that the resumption of land for urban development and other public purposes in the New Territories has been a cause for concern to the Government for a considerable time. The Secretary for the New Territories has been involved in protracted discussion with the Heung Yee Kuk, The Kuk never fails to express its dissatisfaction with either the compensation offered or the inadequacies of the exchange system. In recent years there have been numerous petitions by the Heung Yee Kuk to the Governor and to the Minister of State. The paper annexed to this memorandum, written by the Secretary for the New Territories, describes the problem, its historical background and legal and political connotations, and recommends the appointment of a repre- sentative committee to advise the Governor as to the procedure and the scale of compensation to be used in future acquisitions of land in the New Territories.

Tila

C.S. 166

2

The urban development programme in the New Territories requires the continuing acquisition of private lands and property on a very considerable scale over the next few years. The outstanding exchange commitment is to provide 7,2 million square feet of building land; meanwhile, resumptions are continuing at the rate of approximately 10 million square feet a year, producing a further annual commitment to provide 4 million square feet of building land for exchanges. Although as much land as possible is being made available for exchange, the continuing and expanding need for land for public housing and other purposes will prolong and aggravate this situation. In these circum- stances it is most necessary to devise and obtain agreement to an acceptable substitute for the exchange system. It is also highly desirable for Government to retain the initiative.

3

As stated in the annexed paper, the Secretary for the- Environment is already working on possible substitutes for the ex- change (Letter B) system, But assuming an officially acceptable solution can be found, there will still remain the problem of presentation to and discussion with the Kuk and presentation to the general public. The Secretary for the New Territories believes that the time is ripe for a different approach to the method of discussion of this problem, There are signs that the Kuk is dissatisfied with lack of progress made in their protracted discussions with him. These discussions are a direct

dialogue between the Secretary for the New Territories and the Kuk, and they have resulted in a number of modifications to the system over the years. But the method of discussion to some extent puts the Kuk

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