CONFIDENTIAL

XCC(76)77

15

機密

(c) A restriction on the sale of land to a British company,

or a private treaty grant to Nobel's Explosive Limited, might thus appear discriminatory and would be hard to justify publicly unless security or political consi- deration predominated.

(d) A private treaty grant could, moreover, discourage

some international interest in investment in Hong Kong.

(e) Because the local manufacturer will have a considerable

advantage over other suppliers, Government must be confident that the product of the factory will be acceptable to users in Hong Kong.

The proposed tender procedure is as follows:

(a) tendering should to be restricted to the two applicant

companies, who are the only producers who have sold in Hong Kong;

(b) in awarding the tender, an appropriate weighting

should be given to political and security factors; paragraphs 19 to 22 explain the basis on which it is proposed that the award of the tender will be made.

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