CONFIDENTIAL
ADVANCE
(a) pr
37013
(45
152154
MDADAN 4559
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2531
OF 20045OZ OCTOBER 92
INFO PRIORITY PEKING, UKREP JLG HONG KONG
M Marshall
CA
you read
up te filo
discuss?
OUR TELNOS 1999-2000 AND YOUR TELNO 1167: HKSARG LAND FUND.
1. IN ACCORDANCE WITH ESTABLISHED PROCEDURES, THE CHINESE SIDE OF THE LAND COMMISSION HAVE PASSED TO US THE AUDITED ACCOUNTS OF THE LAND FUND FOR 1991/92. COPY BEING FAXED TO BUNTEN (HKD), TOGETHER WITH A TABLE WHICH WE HAVE COMPILED IN-HOUSE ON THE PERFORMANCE OF THE FUND SINCE ESTABLISHMENT. YOU WILL NOTE THAT AS AT THE END OF MARCH 1992, THE SIZE OF THE LAND FUND STOOD AT HKD33.7 BILLION AND THE ESTIMATED RATE OF RETURN FOR THE YEAR WAS ABOUT 6.5
PERCENT.
2. AS FORESHADOWED IN OUR TELNO 1894, THE CHINESE HAVE CONFIRMED THEIR INTENTION TO PUBLISH THE AUDITED ACCOUNTS IN EARLY NOVEMBER, EXACT DATE TO BE DECIDED. PUBLICATION OF LAND FUND ACCOUNTS IS CLEARLY A MATTER FOR THE CHINESE, AND IT IS SOLELY FOR THEM TO ANSWER QUESTIONS ABOUT THE OPERATION AND PERFORMANCE OF THE LAND FUND. HOWEVER, WE BELIEVE THAT, AS IN THE DEBATE ARISING FROM THE HIT SHARE PURCHASE IN 1991, QUESTIONS MAY AGAIN BE PROMPTED FROM THE PUBLIC/LEGCO ON THE CONSISTENCY OF LAND FUND INVESTMENTS WITHIN THE JD. WE WILL NEED TO CONSIDER CAREFULLY HOW
TO RESPOND TO SUCH QUESTIONS.
Redacted Under FOI Exemption Sec 27(1)(a)(c)(d)
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