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HOUSING AND RELATED MATTERS
Resettlement Problems
1. There are no outstanding disputes about the resettlement of shops
and workshops from Crown land. However, the Chuk Yuen representatives
may again complain about provisions for relocation and compensation.
We have stated that they have been treated fairly and legally, and that
we see no grounds for HMG to intervene.
Rent Controls
2. The Hong Kong Government has recommended to ExCo that the measures
introduced in 1980 to control domestic rents should be extended for
2 years from December 1981. However, the administration is still
opposed to controls on commercial rents. Recent studies show an
increase in the supply of commercial accommodation which may cause rents
to stabilise over the next two years. However, the Independent Business
and Professional Association is continuing to campaign for rent controls
and the question may be raised.
Mr Stanley's Visit
3. The Minister for Housing and Construction will be in Hong Kong from
24-28 May, as a follow-up to Donald Liao's earlier visit. Details are
in the attached telegrams (FCO Telegram No 380 and Hong Kong Telegram
No Misc 161).
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