(b) A commercial site of 6, 430 square metres (about
69,000 square feet) in the Admiralty Station Area. This site could be affected by the future MTR line, and provision would probably have to be made in the lease conditions for keeping the option of a line open. The site would be available in about 1980 and might be worth about $210 million at the present time.
(c) A site of 5, 650 square metres (about 69, 500 square feet) adjoining Connaught Centre. This will be available in 1980 when certain post office buildings are removed. In early 1977 it was valued at $576 million.
(d) Part of the Murray Barracks area.
$220 million).
(Value say
9
Uncertainty as to how the Admiralty site would be affected by the MTR Island line probably excludes it from serious consideration. It might be argued that a location in the Murray Barracks site would bring the Company close to the centre of Government and that this might be misconstrued. The main disadvantage of the Wan Chai site is that it would remove one of the most prominent sites from the current sales programme, which is generally considered to be inadequate, but perhaps this is not inclusive. The Connaught Road Central site is therefore probably the best, because, although extremely prominent, it is right in the business centre and, with the Connaught Centre next door, the building will not totally dominate the waterfront. But much will depend on the exact requirements of the Company. For instance, car parking is not normally acceptable in the Central area, though it would be on the Wanchai reclamation.
10
If neither the Connaught Road Central nor the other sites were considered suitable by the Company, and it was prepared to accept a slightly smaller site of around 4, 000-5,000 square metres, there will be other sites available in Tsim Sha Tsui and the Admiralty area.
Public Relations and Publicity
11
Although Government's willingness to grant a site by private treaty to the China Resources Company would undoubtedly be a matter of considerable public interest, it is most unlikely that there would be any major public criticism of Government, save perhaps from certain right-wing newspapers. It is probable that newspapers would attach great significance to the grant, particularly the willingness of the China Resources Company to pay a market premium. In this circumstances,
CONFIDENTIAL &