G.F. 323

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there can be no guarantee that it will be accepted, because

the system of land exchanges is well entrenched

it was

used pre-war, and because New Territories landowners will

continue to prefer an exchange of land which they are able

to dispose of themselves rather than to receive a direct

cash payment from the Government.

19.

So far, there has been little or no public

expression, either of disquiet or support for the way the

Heung Yee Kuk is exploiting the land issue. In the New

Territories landowners are content that the stakes should

be raised as high as possible.

20.

And,

This situation is far from satisfactory.

although Government is intra vires when resuming land in

the New Territories for public purposes as defined in the

Crown Lands Resumption Ordinance, the concept of what is a

"fair price" will continue to be argued by the Kuk and

its lawyers. It is highly desirable that this issue

should be settled and got out of the way so that the New

Territories owners whose lands are affected by development

are satisfied with the treatment they receive and the

support of the general public of Hong Kong is obtained for

a manifestly fair solution.

21.

This is a tall order, however the consequences

of failing to find a way out of the present situation

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/will

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