GR5700
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FUTURE EGRET
DESKBY 15120OZ
FM HONG KONG 151005Z SEP 84
TO IMMEDIATE FCO
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17 SEP 1984
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TELEGRAM NUMBER 2857 OF 15 SEPTEMBER
INFO IMMEDIATE PEKING
PEKING TELNO 2356: FUTURE EGRET: PART 3 OF THE WHITE PAPER: LAND.
1. FOLLOWING IS REVISED DRAFT TO COVER ANNEX 111, INCORPORTATING SOME OF THE POINTS IN THE DRAFT IN PEKING TEL UNDER REF:
BEGINS:
ANNEX 3: LAND LEASES.
THIS ANNEX RECOGNISES THE IMPORTANT PART WHICH LAND PLAYS IN THE DEVELOPMENT AND ECONOMY OF HONG KONG. IT PROVIDES A SYSTEM TO ALLOW CONTINUITY BEYOND 1997.
2. IT CONSIDERS EXISTING LEASES UNDER TWO MAIN CATEGORIES: THOSE WHICH CONTINUE BEYOND 30 JUNE 1997 AND THOSE WHICH EXPIRE BEFORE THAT DATE. IN THE CASE OF THE FIRST CATEGORY (MAINLY 75 YEAR LEASES RENEWABLE FOR 75 YEARS, AND 999 YEAR LEASES) THE RIGHTS IN THE LEASES ARE RECOGNISED BY THE ANNEX AND WILL BE RECOGNISED AND PROTECTED UNDER THE LAW OF THE SAR AFTER 1997. THESE RIGHTS INCLUDE THE RIGHT OF RENEWAL IN THE CASE OF RENEWABLE LEASES, AS WELL AS THOSE GRANTED BY THE LEASHOLDER TO OTHER PERSONS, E.G. SUB- LEASES, MORTGAGES AND RIGHTS OF WAY.
3. LEASES WHICH EXPIRE BEFORE 30 JUNE 1997 (MAINLY NEW TERRITORIES LEASES AND 75 YEAR NON-RENEWABLE LEASES IN THE URBAN AREA) MAY BE EXTENDED WITHOUT PREMIUM UNTIL 2047. A RENT OF 3 PERCENT OF CURRENT RATEABLE VALUE WILL BE CHARGED FROM THE DATE OF EXTENSION, EXCEPT IN THE CASE OF VILLAGE LAND HELD BY INDIGENOUS VILLAGERS WHO WILL CONTINUE TO PAY A NOMINAL RENT.
4. NEW LEASES RUNNING UNTIL 2047 MAY BE ISSUED BY THE HONG KONG GOVERNMENT. THESE WILL CONTINUE TO BE ISSUED UNDER THE EXISTING SYSTEM OF LAND DISPOSAL (1.E. BY PUBLIC AUCTION, TENDER OR PRIVATE TREATY GRANT). A PREMIUM WILL BE PAYABLE AND A NOMINAL RENT WILL BE CHARGED UP TO 30 JUNE 1997. AFTER THAT DATE, NO ADDITIONAL PREMIUM WILL BE PAYABLE BUT THE RENT WILL INCREASE TO 3 PERCENT OF CURRENT RATEABLE VALUE.
5. THE CONCEPT OF CHARGING A RENT ON THE BASIS OF RATEABLE VALUES FOLLOWS THAT USED SINCE 1972 TO FIX RENTS ON THE RENEWAL OF LEASES. IT HAS, HOWEVER, BEEN AGREED THAT THE RENT WILL BE BASED ON CURRENT RATEABLE VALUES (1.E. A RENT WHICH WILL CHANGE AS RATEABLE VALUES CHANGE) RATHER THAN BASED, AS AT PRESENT, ON A FIXED REFERENCE POINT (1.E. A RENT WHICH IS BASED ON THE RATEABLE VALUE AT THE DATE OF RENEWAL AND WHICH REMAINS UNCHANGED FOR THE WHOLE TERM OF THE LEASE).
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