behaviour of the land market and the reaction of landowners to the new policy. On the second point relating to ex-gratia payments and allowances to facilitate the clear ance of land for development, the present arrangements are that, apart from changes which are required urgently to meet urgent requirements, all the rates are reviewed every summer by an official committee convened by Environment Branch.
The re- commendations of this committee are made to the Finance Committee at the beginning of the annual session. This is a territory-wide problem affecting occupiers affected by clearances, whereas the review of the New Territories land exchange and land compensation system is largely a local one affecting owners. Whether or not a standing committee with unofficial participation could be set up to cover both issues is a matter which requires further official discussion, and it is suggested that the aim should be to make a recommendation one way or the other before the beginning of the next summer review of ex-gratia payments allowances.
Public Relations and Publicity
20
As regards the proposed compensation rates for the New Territories non-layout areas the fact that higher and related compensation rates will be paid in the immediate environs of the urban layouts will reduce the resentment presently caused by the large differences between payments made for land within and without the urban layouts.
21
As regards the proposed compensation rates for old scheduled agricultural and building land in New Kowloon and Hong Kong, it is unlikely that the subject will attract general public interest. General response from the landowners concerned is expected to be favourable. However, it is likely that village landowners from the Diamond Hill/Tai Hom area will exploit the opportunity to put pressure to bear on the Government for a restoration of land exchange options which they previously enjoyed before 1973. If this materialises the reason for not being able to revert to the old land exchange system will have to be carefully explained to the landowners concerned.