Vaque

reques

CONFIDENTIAL

3 -

to build up trade through Hong Kong, the relative uncer-

tainties of the timing of reclamations and of the availa-

bility of land for godowns will certainly make their

planning very difficult. From the Government's point

of view, however, the vagueness of Chinese plans makes

it very hard to adjust our planning to their needs. The

present position is that :

(i) Government has turned down all requests

(ii)

(iii)

for private treaty grants of private

waterfront and godown land, but has

given the China Merchants Steam Naviga-

tion Co. Ltd. and the China Resources

Company indications of where Public Cargo

Handling Areas will be available and where

godown lots will be sold by auction; it

has not formally responded to a request

for a container terminal.

The companies have agreed to try to answer

a questionnaire on their plans for future

expansion which has been sent to them,

through their solicitors, by the Director

of Marine. It is hoped that, by this means,

the Government will acquire a little more

information to help it with its own planning.

China Merchants Steam Navigation Co. Ltd.

is known to have reserved the whole of the

south-west corner of the Sz Hau Peninsula

CONFIDENTIAL

/for

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