XCC(78)52
entitlements would be surrendered in this way. If this recommendation is approved, a "once and for all" buy-back offer would be made to existing letter B holders by the Secretary for the New Territories.
9
The acceptance of this proposal would also require a decision as to whether any increment should be paid to land-owners who have already accepted the cash compensation offer in existing letters B in lieu of a right for an exchange. The proportion of land-owners who have done so is relatively small and it is estimated that the commitment involved in paying an additional $17 per square foot for agricultural land surrendered for cash before 1st April 1976 and $10 per square foot for agricultural land surrendered for cash after that date would be about $5 million. There is, of course, no legal commitment to pay anything, as those affected have voluntarily accepted the offer of cash compensation at its present level, but it is nevertheless recommended that, if possible, the increment should be paid, as it would remove a minority grievance. Again, this would be done as a "once and for all" basis and at the same time as the buy-back offer is made.
Financial and Economic Implications
10
The acceptance of the proposals relating to compensation in the report and in paragraphs 8 and 9 of this memorandum would result in an overall expenditure pattern (based on $27 per square foot for agricultural land and $55 per square foot in addition to statutory compensation for building land, and on SNT's predictions regarding the acceptance of cash in lieu of future and existing exchange entitlements) on approximately the following lines:
1978/79
1979/80 1980/81 1981/82
(1)
Future Resumptions $43 4m
$284m $284m $189m
(2)
Purchase of old
exchange letters
$189m
(3)
Making up old
cash offers
$
5m $628m
$284m $284m $189m
11
The actual rate of expenditure envisaged in paragraph 10 above depends on a number of assumptions regarding:
(a)
the number of outstanding letters B
redeemed under the buy-back scheme
The Secretary for the New Territories assumes 20% of the total outstanding. If this assumption is too low then the Government's immediate expenditure will be greater;
CONFIDENTIAL #