2

(v)

me know.

Brigadier's residence in New Kowloon.

There may

be other properties owned by HMG in this way, some of which have nothing to do with the MOD or defence purposes. Such properties will continue to be held under Crown lease which will be recognised under the Agreement. Perhaps these ought to be disposed of on the open market by HMG before 1997. Further thought and discussion on this whole question is required.

Movable property on MOD land is owned by HMG but as between HMG and HKG is subject to clause (8) of the Memorandum of Understanding and paras 16-19 of Annex 'e' thereto attached to the Defence Costs Agreement of 1981 between the two Governments. Again, this requires further consideration in the context of 1997.

If any further assistance is required please let

7

(Noel M. Gleeson) Registrar General

(Land Officer)

c.c. Mr R.P. Margolis (with encls)

Deputy Political Adviser

Secretary for Security (Attn: Mr M.J. Arnold) (with encls)

Encls

NMG/uo

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