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4. NEW LEASES RUNNING UNTIL 2047 MAY BE GRANTED BY THE HONG
YONG GOVERNMENT, AS AT PRESENT A PREMIUM WILL BE CHARGED FOR THESE
LEASES, IN ADDITION TO AN ANNUAL RENT WHICH WILL BE SUBJECT
AFTER 1997 TO THE SAME PROVISIONS.
5. THE AMOUNT OF NEW LAND WHICH THE HONG KONG GOVERNMENT MAY
GRANT EACH YEAR WILL BE LIMITED TO 50 HECTARES. THIS LIMIT DOES
NOT INCLUDE LAND MADE AVAILABLE TO THE HONG KONG HOUSING AUTHORITY
FOR PUBLIC RENTAL HOUSING. THE ANNEX ALSO DESCRIBES HOW PREMIUM
INCOME FROM GOVERNMENT LAND TRANSACTIONS IS TO BE DIVIDED BETWEEN
THE HONG KONG GOVERNMENT AND THE FUTURE SPECIAL ADMINISTRATIVE REGION GOVERNMENT, AND HOW THAT INCOME IS TO BE USED.
6. THE ANNEX ALSO PROVIDES FOR THE ESTABLISHMENT OF A LAND
COMMISSION TO BE COMPOSED OF AN EQUAL NUMBER OF OFFICIALS DESIGNATED
BY THE BRITISH AND CHINESE GOVERNMENTS. ITS MAIN FUNCTIONS WILL BE THE MONITORING OF HOW MUCH NEW LAND IS BEING GRANTED, THE APPROVAL OF INCREASES IN THE LIMITS AGREED AND THE EXAMINATION
OF PROPOSALS PUT FORWARD BY THE HONG KONG GOVERNMENT FOR
DRAWING ON THE SPECIAL ADMINISTRATIVE REGION GOVERNMENT'S SHARE OF PREMIUM FOR THE FINANCING OF PUBLIC WORKS IN HONG KONG.
ENDS
EVANS
LIMITED
HD/HKD HD/FED MR BOYD
g
SECRET
COPIES TO:
SIR P CRADOCK (2)
MR BICKFORD,
MR FITFOOT,
LEGAL ADVISERS
SIR E YOUDE, K195A