BY BAG
SECRET
129
布政司署
香港下亞畢道
** OUR REF.:
TSX...1/78-.~
來函檔號 YOUur ReF.:
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R N Peirce Esq
PEKING
1
COPIED
GOVERNMENT SECRETARIAT
Ais
LOWER ALBERT ROAD
$11
Rey Sory to FED
2361 2 te llgnize 22
3
Mur list
4
Mr Searte
PA.
HONG KONG
27 October 1980
TIN SHUI WAI
Thank you for your letter of 16 October. The position is that no new lease is required upon change of ownership. However, a modification of the lease would be required if the purposes for which the land can be used is to be changed from agriculture to housing and industry. This would be a new document, but would contain the same provisions for the period of the lease as in the present document - unless a change were suggested. Modification would be necessary if the developers proposals are approved by the Executive Council. This is likely to come up in the next few months. We will let you know if details of timing become more precise. So far there have been no further suggestions from China Resources or any intermediary about the possibility of omitting the 1997 clause.
2.
I think the above covers the points in your para 2. As far as the queries in your para 3 are concerned, the HK$600 million payment was a commercial transaction and we do not know the details. The question of the land development premium has not yet been decided. This, again, will be a matter for the Executive Council.
3.
Like you (your para 4) we are interested in the political implications of the involvement by China Resources. We think it possible that these have been carefully considered on the Chinese side but unfortunately we have no information about the level at which this may have been done.
4.
We will, of course, report any significant new
developments.
:
cc P J Williamson Esq
HK&GD FCO
(I C Orr)
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