Flag E
CODE 18-77
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Reference.
long-term interests. It is evident that a
at the lower levels);
in roove's long-term interest. It is
good deal of confusion in Chinese understanding / already surrounds this whole issue. It would be important to ensure that the picture was not further complicated by uninformed discussion between Chinese officials and Hung King
on uncoordinated
businessmen.
(iv). Hong Kong Government to create de conditions for a more constructive
reply by the Chinese. The Chinese have already invested
deal of their
a
3
good
that such
own money
Hong Kong. There are signs investment will increase substantially. These developments could be
generally helpful to Hong Kong
as
Simply
regarded
can be seen in the context of de longstanding Chinese commitment (going back to Zhon Enlai in de 1950s) to ensure that Hong Kong is maintained as prosperous as possible for the day when the territory reverts to China.
However, dese broader implications aport de Chinese land deals in te Nes' Territories does
exitomes or
to
Government's involvement open up an opportunity for de Hong Kong Government to test Chinese
at least bring reaction to land leases in the New Texitones their immediate attention de practical and techneed problems which de main 1997 lease imposes.
The
at Tin Shui
Political Adviser has brought a specific Chinese 2 to our attention (his letter to ob Clift of 25 January), which suggests how this might be done. The
land investment
which China Resoures have recently acquired
را
200 are site in 50-55% stake is
at present designated as agricultural land. Being in the New Territories it will be held on a
99-year lease which expires in 1997. Before de land can be developed for residential or industral use, the leaseholders will red permission to change the original lease conditions by:
modification of te lease; or
a)
b) surrender and requent of de lease.
/
fitter course would require the leaseholder's paying a premium
to reflect the increased value of the land. The important
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point
There