The work of the Group has been taken forward not only at the regular

plenary meetings but also by smaller groups of experts meeting on an

ad hoc basis to discuss specific issues. The Group's achievements to

date have been widely welcomed and appreciated in Hong Kong. The

friendly and cooperative atmosphere in which all contacts in and under the Group have taken place is most encouraging and augurs well

for the continued close cooperation that Will be needed between

Britain and China as 1997 approaches.

(c)

Land Commission

12.

:

The Sino-British Land Commission has continued to make good

progress, reaching agreement on the accounting arrangements for the

sharing of income from land sales and on the form and content of a

number of important legal documents for use in land transactions in

Hong Kong. Under the Joint Declaration, premium income from land

transactions, after deductions for the average cost of land

production, is shared equally between

shared equally between the Hong Kong Government and

the future Special Administrative Region Government. To date поге

than HK$1.6 billion has been credited to the future Special

Administrative Region Government's account. The Chinese side of the

Land Commission

manages this income in trust, through a Hong Kong

Special Administrative Region Government Land Fund and an Investment

Committee, both of which vere set up in August 1986. The Fund is

expected to continue to grow SO that a very substantial sum will be

available to the future Special Administrative Region Government in

1997. The Commission also reached agreement on the land disposal

programme for the period 1 April 1986 to 31 March 1987.

programme agreed was 57.58 hectares. As with the previous year,

this was above the annual limit of 50 hectares specified in Annex

III to the Joint Declaration. Thus for the second successive year

the Land Commission has made sensible use of the provision in Annex

III which permits flexibility in the application of the annual liai

of new land to be granted.

Joint

-

The

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