Subsequently on 2nd December 1975 the Council advised and the Acting Governor ordered that the advice set out in Annex D should be conveyed to the Governor, who was then in London prior to the conclusion of the agreement. In offering this advice Unofficials noted the Acting Governor's view that the report of the Town Planning and Finance Sub-Committee of the Joint Working Party report dated 22nd November 1975 was purely illustrative, as it had only a short time in which to consider the problem. Sir Y. K. Kan, on behalf of Unofficials, also noted that the Joint Working Party report only proposed the sale of 4.5 acres of the site which was insufficient. In this discussion, the Financial Secretary stressed that the cash inflow obtained from the release and subsequent sale of land by the Services should be related only to the necessary reprovisioning of the Services facilities and not to the future land use of these sites or as a contribution towards the recurrent cost of the garrison. Unofficial Members' view was that, at the time the agreement was announced, the public would want to see a proper profit from the release and sale. A copy of the relevant parts of the press release which was issued is attached at Annex E.

10

The terms of reference of the Victoria Barracks Planning Committee approved by the Council, which balanced the interests of local planning against the broader benefits of revenue, may well be considered as the best guide for examination of these proposals. The official view is that the Public Works Department's proposals (slightly amended as described in paragraph 11 below) provide about the right balance.

F

Conclusion

11

The official conclusion is that the adoption of the Public Works Department proposals, slightly amended as shown in Annex F to provide for sufficient reservation for Government offices to ensure that the Murray Barracks site can be released for sale, would be preferable to the adoption of the UMELCO proposals or to those of the Victoria Barracks Planning Committee because:

(a) the Public Works Department proposals conform more nearly to the stipulated terms of reference for the planning of the area as they will provide considerable amenity for Central District and a good direct and indirect return in land sales revenue;

(b) the UMELCO proposals only provide for a plan for

about half the area, and could give rise to suspicion

as to the Government's bona fides in this matter; and

C.S. 166

CONFIDENTIAL

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