BACKGROUND
CONFIDENTIAL
3.
was established under
consultations on
The Sino-British Land Commission
Annex III to the Joint Declaration to conduct
implementation of that Annex. By the terms of the Annex all
existing leases running beyond 1997 are recognised by the Chinese and all leases that expire before 30 June 1997 may be
extended to 2047 without payment of an additional premium,
although the holders will have to pay an annual rent equivalent
to 3% of rateable value from 1 July 1997. By the terms of the
Annex between now and 1997 the Hong Kong Government may only
grant 50 hectares of n ew land a year. Any proposal to extend
this limit has to be decided upon by the Land Commission. All
premium income from the sale of new
new land is to be divided, and
half to be set aside for the future SAR Government. If the
Hong Kong Government wishes to draw on this income it can put a
proposal to the Land Commission.
4.
The British Side on the Land Commission is made up of
three Hong Kong Government officials led by Mr Todd, Hong Kong
Director of Lands. They have managed to establish a good rapport with the Chinese side and have made good progress
the detailed technical issues, including the format
Agreement has also been reached on land
year, which will exceed the 50
documentation.
disposal
programme
for this
on
of lease
hectare limit.
5.
The first Government land sale since the entry into force
of the Joint Declaration took place on 24 September. The
prices reached confirm
confirm the steady strengthening of the market
since last year.
6.
So far the Chinese have made no attempts to Use the
Commission to interfere in the day to day administration of land in Hong Kong. They are however clearly consulting outside experts in the field in Hong Kong.
CONFIDENTIAL