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11. DEFENCE LANDS IS PERHAPS THE MOST SENSITIVE ISSUE CURRENTLY ON
THE JLG AGENDA. PRESSING AHEAD WITH OUR PLANS WILL CONTINUE TO BE A MAJOR IRRITANT IN THE RELATIONSHIP, ALIENATING AN IMPORTANT CONSTITUENCY IN CHINA. NEVERTHELESS IF
NO UNILATERAL ACTION IS TAKEN THE RESULT WILL BE THAT MUCH OF THE EXISTING MILITARY ESTATE WILL FALL INTO THEIR HANDS IN 1997. NOT ONLY WOULD THIS BE A SERIOUS IMPEDIMENT TO DEVELOPMENT PLANS IN HONG KONG AND A MAJOR FINANCIAL LOSS BUT IT WOULD ALSO BE A MAJOR AND PUBLICLY RECOGNISED POLITICAL DEFEAT. IT WOULD GIVE THE CHINESE A NETWORK OF FACILITIES THROUGHOUT URBAN AS WELL AS RURAL HONG KONG FOR THEIR MILITARY FORCES. HONG KONG GOVERNMENT BELIEVE THAT THIS WOULD BE A SIGNIFICANT FACTOR IN UNDERMINING CONFIDENCE ABOUT CHINA'S WILLINGNESS TO ALLOW THE POLICE TO HANDLE PUBLIC ORDER QUESTIONS.
Redacted Under FOI Exemption Sec 27(1)
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