8
Following an exhaustive search, the only formed site which has been identified as being suitable for construction of an oil storage depot is that shown edged black on the plan at Annex A. This site is presently let on short term tenancy as part of a Mass Transit Railway Corporation contractor's casting yard and works area. The tenancy will expire in March 1980 and the site will then become available for allocation. It is zoned for industrial use on the adopted Chai Wan Outline Development Plan No LH 20/11D. The site is not ideal in terms of location but no other suitable site is available in the short term.
Site Disposal
9
(a)
(b)
(c)
(d)
(e)
(f)
The issue is having regard to :-
the Government's policy on the disposal of sites for oil storage depots; that is to say, to sell them, with use appropriately restricted, by auction or public tender;
the assurance given to the multi-national oil companies in Hong Kong that oil companies from China would be treated no differently to them;
the uncertainties lately surrounding supplies from the Middle East and likely to continue;
the fact that China provides an alternative source which should be encouraged;
China's apparently commercial attitude to sales of oil products in Hong Kong; and
the fact that at least one other oil company, Esso, has complained of being inconvenienced by a lack of storage facilities on Hong Kong Island, following the banning of Category 5 dangerous goods from the Cross Harbour Tunnel;
is there a case for :-
(g)
or
(h)
granting the site for an oil storage depot to CRC on special terms that include a premium below what the Government would normally charge?
granting the site to CRC by private treaty but with
no concession as regards premium?
CONFIDENTIAL