CONFIDENTIAL
XCC(77)68
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in an advantageous bargaining position. If any major change to the system is to be made, it is highly desirable, in present circumstances, that it should result from the deliberations of a representative com- mittee whose findings would gain the support of the general public. The outcome would be, an agreement which at the best would eliminate further discussion of the matter for some time to come, but at least would take us over the hurdle of discontinuing the letter B system and substituting an alternative,
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With this in mind, therefore, the Secretary for the New Territories recommends the appointment by the Governor of a com- mittee consisting of a chairman and six members. The chairman should preferably be familiar, not only with the problem but also the background of the Kuk and the personalities involved. The six members would comprise two representatives of the New Territories (of whom at least one should be a member of the Heung Yee Kuk), two UMELCO members and two officials. The terms of reference of the committee would be simply to advise the Governor on the procedures and the scale of compensation to be used in future for the resumption of land in the New Territories. These terms of reference would permit the Secretary for the Environment to introduce into the committee the proposals which will come out of his present study of substitutes for the exchange system.
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Any sudden announcement that the Government was pro- posing to change existing procedures would spark an instant protest in the New Territories and a hardening of attitudes. It is desirable to broach the subject gently. This could best be done in the Governor's Address on October 5th to the Legislative Council to the effect that the Government had noted the concern shown in the New Territories over land resumption procedures and the suggestions made for a change in the method of assessing compensation. The Government agreed that the time was ripe for current procedures to be reviewed and that the Secretary for the New Territories would speak on this later in the debate. In the resumed debate after a certain amount of preliminary discussion with the Kuk, the Secretary for the New Territories would say that the Governor had appointed a committee to advise him and announce the committee's composition and terms of reference. The proposal to discontinue the Letter B system, and substitute an alternative, could then be broached in the comparative privacy of discussions in the committee.
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Honourable Members will be asked to advise whether a committee to advise the Governor on the procedures and scale of com- pensation to be used for future land resumption in the New Territories
CONFIDENTIAL
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