CONFIDENTIAL
3
but
6.
Mr Wang (who had been patiently waiting to have another word) asked if buildings on reclaimed land in Shatin New Town could be as high as those in other parts of Hong Kong. The Governor said that this was a good question. The engineers had found that reclaimed land provided a poor foundation and therefore very deep piles had to be driven through to the bedrock. Government housing blocks in Shatin were 20 to 25 storeys high; the density was less than in Hong Kong Island or Kowloon, so living conditions were better. Mr Wang thought there was considerable inconvenience for those at the top of high blocks. Mr Li referred to land granted for private development. The Governor said that most private developments were also high-rise. A few areas were reserved for low density housing but land was such a scarce resource that it had to be used carefully. Mr Wang agreed that shortage of land made high-rise buildings necessary. The Governor said there was a deliberate mix in the plans For Shatin between high and low density areas. However, Mr Wang was right in suggesting that high-rise buildings produced social problems. For those who had previously lived in a village the move to high-rise buildings involved a considerable psychological shock. Committees had been set up in many of these blocks and he spent much time visiting them. He was frequently told that these committees enabled residents to get to know each other and that this made life easier for them. High-rise living therefore had its problems but there was a solution to them.
7
•
He
Mr Li asked whether there was a growing trend for foreign investment (e.g. from Singapore) in property. He added that this affected real estate generally as well as flat prices. He also thought that Government might well view investment from certain foreign countries with concern. The Governor said he would certainly be concerned at investment from East European countries. had been concerned to learn that the Narodny Bank had acquired land on Lantau. This position had quickly changed. There were no exchange controls in Hong Kong and so investment from places like Singapore could not be prevented: indeed, external investment in Hong Kong was generally very welcome. Mr Wang said (with deliberation) that he was pleased to hear that the Governor regarded questions such as the land referred to in Lantau as a sensitive matter. The Governor said he could not say precisely how any similar case would be dealt with. However, dealt with it would be.
8.
Mr Wang said he had already taken up too much of the Governor's time. The Governor demurred. The Governments of China and the UK had a mutual interest in the prosperity of Hong Kong. Mr Wang indicated that he fully agreed.
Political Adviser's Office,
Hong Kong,
7 September, 1978.
CONFIDENTIAL