CONFIDENTIAL
For discussion
on 18th April 1978
機密
36
XCC(78)31 Kkozoli
dopy No 33
Page V
of 40
Y NO.
1° APR 1978
OFFICER
MEMORANDUM FOR EXECUTIVE COUNGE
CHINA RESOURCES COMPANY
No
RE
PA
Action
I
In the past, the China Resources Company, a partnership owned by the Peoples' Republic of China, has made several approaches to Government officers, in an attempt to sound out the Government's attitude to the grant to CRC of a large site in Hong Kong. These approaches have been through intermediaries. On each occasion the reason given for this method of approach has been that the Company, as a direct organ of the Chinese Government, does not like to participate in a public auction. In the past, the Company has been told that a grant would not be possible.
2
On 4th March 1978, solicitors for China Resources Company called on the Chief Secretary by appointment, with instructions to make an informal approach to ascertain Government's reaction to selling a site of about 60,000 square feet to the Company to build a "prestige headquarters", in which all their offices scattered throughout Hong Kong could be located. The reasons given for their application were:
(a) the Company saw no prospect of buying a suitable empty
site privately; and
(b) it did not like, as a direct organ of the Chinese Govern-
ment, to take part, and perhaps not be successful, in a public auction.
The solicitors said that the Company would be prepared to pay a premium of the full market value of the site.
3
Other approaches, made through intermediaries, suggest that the Company wishes to include an exhibition centre for Chinese products, and may also require to provide car parking for about 300 cars within the building. If this is so, it would affect the choice of the site.
Policy
4
As stated above, similar applications made through inter- mediaries have been consistently refused in the past. However, this application, which follows closely on a previous rejection, is exceptional in that it has been made directly at a high level in the Government indicating that the Company is extremely anxious to obtain a site. Because the approach
has been made at such a high level, the reply will be taken as the Government's formal and considered response to the China
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CONFIDENTIAL #2