CONFIDENTIAL

Issue

3

Objective/explanation

Present status/progress

China

interest*

UK

interest*

Secretary for Works (Cont'd)

Tin Shui Wai

Development

a

dispute between the

Hong Kong

Government and Tin Shui Wai

Development Ltd.

(TS WDL)/Mightycity Co. Ltd. (MCL) on the time-scale for the development

alleging delay by the Government. Government rejects any assertion that the land had to be delivered by a fixed date and also rejects the claim for damages. The firm of Johnson, Stokes & Master (JSM) has been instructed to represent the Government in the action and Mr. Derek Wood, Q.C., from London has been retained.

(ii)

liability for latent ground conditions which could cause additional expense for the private developer in construction of its buildings on the site, in particular the existence of marble caverns beneath the site.

Whether Government has any liability for KCRC not to extending the Yuen Long/Tuen Mun Light Rail

Transit System to Tin Shui Wai in time for the first population intake to the TSWDL Lots.

(iii) The extent to which

Government or the Regional Council must provide all planned Government, Institutional and

Community facilities in phase with the progress of the

development.

CONFIDENTIAL #2

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