4.61
ALL THE LAND-EXCHANGE ENTITLEMENTS HELD BY OWNERS SHOULD BE SETTLED BEFORE 1997. TO ENSURE THAT THE
GOVERNMENT HONOURS COMMITMENTS IN THIS RESPECT, THE UTILITY OF THESE ENTITLEMENT SHOULD BE EXPANDED BY ALLOWING HOLDERS TO USE THEM TO EXCHANGE FOR LAND IN
THE URBAN AREAS IN ADDITION TO THE NEW TERRITORIES.
THE ANNUAL RESTRICTION OF THE TOTAL AMOUNT OF NEW LAND TO BE GRANTED TO 50 HECTARES A YEAR WAS CRITICIZED. DESPITE DESPITE ASSURANCES FROM GOVERNMENT THAT THE QUOTA WOULD BE ADEQUATE TO MEET HONG KONG'S FUTURE NEEDS, THE IMPOSITION OF
A CEILING ON THE AMOUNT OF LAND THAT COULD BE SOLD WAS CONSID- ERED AS ARBITRARY AND NOT PAYING SUFFICIENT REGARD TO MARKET
CONDITIONS. THIS MIGHT ALSO LEAD TO AN INCREASE IN THE PRICE OF
LAND.
4.62 AS THE ANNEX STATED THAT ONLY LAND GRANTED TO THE HONG
KONG HOUSING AUTHORITY FOR PUBLIC RENTAL HOUSING WOULD BE
EXCLUDED FROM THE QUOTA, SO AS NOT TO INHIBIT THE DEVELOPMENT OF PUBLIC PROJECTS, IT WAS SUGGESTED THAT NEW LAND FOR SOCIAL SERVICE, EDUCATION, HOME OWNERSHIP SCHEMES, CONTAINER TERMINALS, HOUSING SOCIETY PROJECTS, INDUSTRIAL ESTATES AND MAJOR PUBLIC WORKS PROJECTS SHOULD ALSO BE EXCLUDED FROM THE CALCULATION OF THE 50 HECTARES LIMIT. IT WAS ALSO SUGGESTED
THAT THIS NEW LAND GRANT LIMIT SHOULD BE ADMINISTERED WITH
FLEXIBILITY AND THAT THE LIMIT SHOULD ONLY BE INTERPRETED AS
AS AN AVERAGE FIGURE FOR THE YEARS UP TO 1997 IN ORDER TO
ALLOW ROOM FOR ADJUSTING SUPPLY TO DEMAND.
4.63
AS REGARDS SHARING THE PREMIUM INCOME DERIVED FROM
THE SALE OF LAND BEFORE 1997 EQUALLY BETWEEN THE BRITISH
HONG KONG GOVERNMENT AND THE FUTURE HK SAR GOVERNMENT, IT WAS
CONSIDERED THAT THIS MIGHT AFFECT THE ECONOMIC VIABILITY OF
THE HONG KONG GOVERNMENT IN THE TRANSITIONAL PERIOD. THE
TAKING AWAY OF A PORTION OF THE REVENUE MIGHT LEAD TO
CONSIDERABLE TAX INCREASES IN ORDER TO MEET PUBLIC EXPENDIT-
URE. IT WAS SUGGESTED THAT THE PREMIUM REVENUE PAYABLE TO THE
HK SAR GOVERNMENT WOULD SERVE THE PUBLIC BETTER IF IT WERE TO
BE SPENT ON THE BUILDING UP OF HONG KONG IN THE YEARS BEFORE
1997.
4.64
AS REGARDS THE LAND COMMISSION, IT WAS SUGGESTED
THAT HONG KONG GOVERNMENT OFFICIALS AND EXPERTS IN LAND MATTERS
SHOULD BE INVITED TO PARTICIPATE IN ITS WORK: THAT SOME OF THE
MOST URGENT PROBLEMS SHOULD BE ADDRESSED: THAT MORE FLEXIBILITY
IN THE ADMINISTRATION OF THE LAND GRANT QUOTA SHOULD BE
ALLOWED: AND THAT EVERY EFFORT SHOULD BE MADE TO PRESERVE THE
PRINCIPLES OF A FREE ECONOMY SO AS TO FORESTALL ANY MOVE
TOWARDS A CONTROLLED ECONOMY!".
PART 4
EXCHANGE OF MEMORANDA ON NATIONALITY
SECRET-45
14.65.