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hectares and from a practical point of view it has been easier

to discuss it as a whole. That does not mean that we have to

discuss a programme under 50 hectares.

26.

Mr Eason's assessment is that if more resources were

directed towards dealing with modifications and exchanges of land, where Chinese agreement is not required, and if 50 hectares of new land were not challenged, we could supply the

needs of the market to a reasonable extent for 2 years or so.

There is still a danger that the Chinese might denounce them, or some of them, on grounds that they have not been discussed in the Land Commission. However illogical, such denunciations

would probably have considerable effect on major prospective

grantees.

Legislative Programme

27.

Attached is a note (ANNEX D) of the effects that lack

of cooperation by the Chinese side would have on our legislative programme, The urgent issues relate mostly to constitutional development and to franchises (covered above).

office of The Political Adviser

2 December 1992

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