SUYAKA (2)

available for certain special purposes where title to the land was

not required. Such land grants included the Commonwealth War Graves

Commission Cemeteries at Stanley and Sai Wan and three other private cemeteries, a temple, and two memorials. If the Chinese side agree,

we shall have on record in the form of an agreed minute of the Land

Commission agreement that the present land grant by way of Deeds of

Appropriation in respect of the Commonwealth War Graves Commission Cemeteries will remain undisturbed and valid up to and beyond 1 July

1997.

In the unlikely event that the Chinese insist that existing land

grants by Deeds of Appropriation should be replaced by leases

expiring in 2047, we should accept the point, but argue that such leases should be treated as if they had been granted before the

entry into force of the Joint Declaration. Land so granted would

thus not fall within the provisions of paras 3 and 4 of Annex III of

the Joint Declaration (ie they would not be subject to an annual

rent of 3% of rateable value, and they would not count towards the

50 hectare limit on land grants).

MANAGEMENT ARRANGEMENTS

At present, there is a certain degree of conflict in the role of

the Director of Urban Services in respect of the CWGC. On the one

hand, he acts as the agent in the care and maintenance of the CWGC's

cemeteries and protects their interests in the cemeteries. On the

other hand, under the relevant provisions in Cap 132 (details

attached), he has wide powers in relation to the general management

and control of cemeteries, including the CWGC.

The CWGC may therefore wish to consider whether to appoint,

before 1997, an agent to look after their interests in place of the

Director of Urban Services, who will have no official role in the

Commonwealth after 1997.

The maintenance cost of one of the Cemeteries (Stanley) is shared

between the CWGC and Hong Kong Government the CWGC paying 2/3 and Hong Kong Government 1/3. This arrangement is based on clause 8 of

the Deed of Appropriation in respect of this cemetery. The ratio is

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