2.
IN MAY 1979 A CONSORTIUM CALLED MIGHTYCITY CO. LTD. (MCL), IN WHICH A CONTROLLING INTEREST IS HELD BY THE CHINA RESOURCES
COMPANY (CRC), ACQUIRED APPROXIMATELY 488 HECTARES OF LAND AT 1 SHUI WAI, AN AREA COMPRISING MAINLY FISH PONDS IN THE NORTH-
WESTERN PART OF THE NEW TERRITORIES. MCL THEN SUBMITTED PROPOSALS FOR THE DEVELOPMENT OF A NEW TOWN OF OVER HALF A MILLION PEOPLE.
THIS DID NOT FIT HONG KONG GOVERNMENT'S INTENTIONS FOR THE DEVEL- OPMENT OF THAT REGION AND THE GOVERNMENT WAS NOT THEREFORE ABLE TO SUPPORT MCL'S PLANS. MCL AND CHINA RESOURCES THUS FOUND THEMSELVES IN A DIFFICULT POSITION AND STOOD TO LOSE A GOOD DEAL OF MONEY. IN THE EVENT AN AGREEMENT WAS REACHED BETWEEN HKG AND MCL IN JULY 1982 WHICH EFFECTIVELY BAILED THE LATTER OUT AND WHICH ON HKG'S SIDE MADE AVAILABLE WITHIN THE AREA LAND REQUIRED
FOR OUR PUBLIC HOUSING PROGRAMME.
3.
UNDER THE 1982 AGREEMENT MCL SURRENDERED THE ENTIRE LAND HOLDING AT TIN SHUI WAI TO HKG IN EXCHANGE FOR HK DOLLARS 1.458 BILLION AND HKG AGREED TO GRANT BACK TO MCL 38.8 HECTARES OF FORMED LAND FOR THEIR OWN DEVELOPMENT PURPOSES (1.E. HIGH DENSITY PRIVATE HOUSING IN SEVERAL ESTATES WITHIN A NEW TOWN).
4.
THE 1982 AGREEMENT (WHICH I BELIEVE IS WHERE YOUR FILE RECORDS STOP) ALSO CALLED FOR A FURTHER CONTRACT BETWEEN MCL AND HKG FOR THE PROVISION OF FILL FOR AND SITE RECLAMATION WORK ON THE LANDHOLDING. IT IS THIS FILL CONTRACT THAT CAUSES OUR PRESENT PROBLEM. 1982 WE EXPECTED MCL TO PROVIDE FILL FROM THE CHINESE SIDE OF THE BORDER IN THE PEARL RIVER ESTUARY. HOWEVER, IN 1983 THEY PROVED A CHEAP SOURCE OF FILL ON THE SEABED OF DEEP BAY. IT WAS NOT UNTIL ABOUT NINE MONTHS AGO THAT IT BECAME CLEAR THAT MCL WOULD DEMAND A PRICE FOR THE PROVISION OF THIS FILL THAT
INCLUDED A LARGE 'ROYALTY' PAYMENT. NEGOTIATIONS WITH MCL HAVE NOW ALL BUT BROKEN DOWN. THEY HAVE SAID THAT THEY HAVE AN AGREEMENT WITH CRC WHO HAVE AN AGREEMENT WITH SHENZHEN THAT A ROYALTY MUST BE PAID TO THE SHENZHEN AUTHORITIES FOR FILL EXCAVATED FROM ANYWHERE IN DEEP BAY. THEY HAVE ALSO SAID THAT THE SHENZHEN AUTHORITIES HAVE REDUCED THE ROYALTY RATE FROM THAT ORIGINALLY PROPOSED IN ORDER TO MAKE IT MORE ACCEPTABLE TO HKG. WE UNDERSTAND THAT CRC WOULD ALSO TAKE A PORTION OF THE ROYALTY''.