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HKC 182 1.2
Mr Ken Walker, Research Department
HONG KONG: DISCUSSIONS DURING THE NEGOTIATIONS OF THE JOINT DECLARATION OF THE SARG LAND FUND
I have had correspondence recently with Mr Fifoot on the SARG Land Fund, culminating in the attached. As you know the Fund is established in JD 213.
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2.
The Hong Kong Government have now publicly stated that they expect these funds to become part of the Reserves of the SARG. (You may have seen the reporting telegrams of the PADS expert talks and the speeches winding up the debate on the Governor's address.) As a result the Hong Kong Government do not see a pressing need to keep the current reserves at their current value (HK$72 billion) since in 1997 the SARG Land Fund will be worth at least that at 1990 prices. But what will the Chinese reaction be?
3.
It would be extremely useful to know what discussion, if any, there was during the negotiations of the Joint Declaration on the use of the Land Fund post 1997. I should be very grateful if you could do some research on this for
me.
SIPAML/sb
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M V Stone
Hong Kong Department WH 311
270 2651
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