CONFIDENTIAL

43

DICK OFF

5201

4

PA

*978

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

19 April, 1978

there by Oightill

tails

N Thongson 2, 2014

82574

布政司署

香港下亞

畢道

*** OUR REF. SCR 8/3571/67

* Your Ref.:

J A/B Stewart Esq OBE

INDEX

Hong Kong & General Department

F do

رسال الان

feer Joh

A NEW BUILDING FOR CHINA RESOURCES

Over the past two years or so, the local branch of China Resources has made a series of low-level and roundabout approaches to the Government in order to obtain on special terms a site for a new building. They described this new building variously as being a new headquarters, a residential block for accommodating their scattered staff, and a place for an exhibition hall. On each occasion they have been told that they are at liberty to purchase such a site or take part in public auctions when new pieces of Government land become available but that their request for a special grant of land by private treaty could not be met. These requests should of course be distinguished from other approaches by Chinese organisations for land to be provided under special arrangements for industrial use such as, e.g., the oil tank farms at Tsing Yi Island and Shatin, or the dry dock and machine tools factory which are also on Tsing Yi Island. Land was provided for this second group of projects on the grounds that the activities were of direct economic benefit to Hong Kong, and, in the case of the industrial ventures, was in pursuit of a specific approved policy to provide land on special terms for industries with a high technological content.

2.

More recently, China Resources tried a much more specific and high-level approach. They briefed solicitors to ask the Chief Secretary what the Government's reaction would be to a request for a private treaty grant of a site for prestige headquarters in a central area on Hong Kong Island. They were prepared to pay the full market premium. The solicitors explained that China Resources thought it would be extremely difficult to obtain a site suitable for their needs by private commercial purchase and that, as a direct organ of the Chinese Government, they would not wish to take part and perhaps fail in a public auction. This approach made it clear that they were very anxious to obtain

/contd...

CONFIDENTIAL

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