SECRETARY FOR THE NEW TERRITORIES
NORTH KOWLOON MAGISTRACY BUILDING
TAI PO ROAD
KOWLOON
25
TEL. No. 3-866811
Ref.: (23) in NT: 147/417/73 III (UN/TC
Dear Mr Parry,
24th January, 1977
As you know, I left Hong Kong before the end of your visit and had somehow got it into my head that the meeting at Government House, which took place after I had left, resolved the outstanding matters arising from your visit. Last Saturday I sent off information to the FCO for forwarding to the Minister, in reply to your parliamentary questions for, written answer. I must apologise for any failure to let you have the information you require. With regard to the list of personal complaints, which were made to you when you visited Sha Tin with Mr. CHAN Yat-san, I trust that the following information will be useful and sufficient.
Sha Tin Market
2.
The area covered by Sha Tin Market is held on a lease from Government by Mr. CHAN Wai. The lease allows only agricultural development, but various sections were sub-let for shops and market stalls. In 1976 it became necessary for Government to resume part of the land to allow the construction of the main trunk road through Sha Tin. Mr. CHAN could have taken a land exchange or a cash payment of $10 a square foot equivalent to some £54,000 an acre for his land, but he has accepted neither and may now take his case before the Lands Tribunal.
3.
10
Since it was agricultural land, the tenants had no legal claim against Government, but in such cases it is normal practice to pay ex-gratia compensation based on the area of the premises, to tide the tenant over the period while he is establishing a new business. At the time of the clearance this compensation was normally limited to a ceiling of $20,000, but in the case of Sha Tin Market this ceiling was removed. ΤΟ provide further help with resettlement a number of shops in the new housing estate were allocated by means of a tender restricted to ex-tenants from the cleared market area. Those who were living in the area were offered public housing.
4.
The present position is that all the tenants have accepted the compensation terms offered to them and all but one have collected their money. Arrangements have now been finalised to make this last payment. As a result of the restricted tender, 14 shops in the Lek Yuen Estate were let to ex-market tenants.
2
/Since