Central Kowloon, redevelopment of Kowloon City and To Kwa Wan old area,
and the development statements of the old airport surrounding area in East
Kowloon were only implemented two years after the handover. (See Figure 5.4
and Table 5.17.)
To solve the problem of land shortage, the Metroplan suggested carrying out
reclamation along both sides of Victoria Harbour, such as in Hung Hom, West
Kowloon, Central to Wan Chai, Green Island and Kennedy Town, to reduce the
development density in some districts and expand the central business district.
After the negotiation between China and Britain, the Hong Kong government
had to abide by the limitation of selling only 50 hectares of land per year during
the transitional period (1984–1997). In 1988, the government set up the Land
Development Corporation, which was responsible for conducting, promoting
and facilitating the sorting out by private developers of the private housing areas
that did not conform to modern land use for comprehensive redevelopment,
and assisting private developers to redevelop privately owned land.
In 1991, the Metroplan was endorsed to provide a framework for the
restructuring of the Metro Area. The government released the Metroplan: The
Selected Strategy: An Overview booklet. After public consultation, one of the
173
Nyaw Mee-kau and Li Si-ming, eds, The Other Hong Kong Report, Hong Kong, Chinese University Press,
1996, p.350.
174
Planning Department website, http://www.pland.gov.hk/pland_en/p_study/prog_s/landscape/
landscape_tech2/app_1.htm.
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Source: Hong Kong Planning Department, Territorial Development Strategy Review: Foundation Report, Hong Kong, Planning Department, 1993, Executive Summary, p.11.
Figure 5.4 Long-term development model of the port
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Table 5.17 Population growth estimates in 1993 and 1995
1993 estimate 1995 estimate Difference
2001 6,100,000 – –
2006 6,300,000 7,300,000 +1,000,000
2011 6,500,000 7,500,000/8,100,000 +1,000,000–1,600,000
Source: Hong Kong Government Planning, Environment and Lands Branch, Territorial Development Strategy Review 1996: A
Consultative Digest, Hong Kong, Government Printer, 1996, pp.15–16.
three ‘Metroplan patterns’ was selected, and the land use models were briefly
designed. The total population in the Metro Area was set to be 4.2 million. It was
suggested that guidelines should be drawn up according to different develop-
ment categories, forms and densities, including guidelines for the urban design
of the Metro Area (ridgeline protection), landscape strategies, and the open
space framework for recreation. The overall land use framework took the main
roads and railway as the network backbone to facilitate cargo and passenger
transport in the city. As the city was reformed, special attention would be paid
to providing new development opportunities in situ after the final relocation of
Kai Tak Airport.175
In 1993, the Planning Department released the Territorial Development
Strategy Review: Development Options to collect opinions from different organi-
sations and the public on the plausible development roadmap in the medium
term (to 2006) and long term (to 2011).176 A report was compiled upon collect-
ing public opinions, summarising the major issues of concerns and drawing up
items to be adjusted and ideas to be introduced in the post-evaluation period.
In 1995, the department prepared the Final Technical Report (divided into
three parts) and Integrated Technical Report. In 1998, the Planning Department
released the executive report of the Territorial Development Strategy Review,
listing the selected development outlines.177
The Territorial Development Strategy Review projected in 1996 that the popu-
lation would reach around 7.5 million by 2006; the basic developed areas and
planned strategic growth areas would possess enough potential for develop-
ment. When the population reached 8.1 million, the authority would explore
new development areas in the New Territories to cater to the demand; job
opportunities (especially those in tertiary industry) might still be concentrated
in the Metro Area, but the authority would have the chance and need to develop
commercial activity centres surrounding the high-capacity public transport
interchanges. (See Figure 5.5.)
175
Hong Kong Lands and Works Branch, Metroplan: The Selected Strategy: An Overview, Hong Kong,
Government Printer, 1991, p.2.
176
Hong Kong Planning Department, Territorial Development Strategy Review: Development Options, Hong
Kong, Planning Department, 1993.
177
Hong Kong Government Planning, Environment and Lands Branch, Territorial Development Strategy
Review 1996: A Consultative Digest, Hong Kong, Government Printer, 1996, p.3.
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Source: Hong Kong Planning, Environment and Lands Bureau, Territorial Development Strategy Review – A Response to Change and Challenges: Final Executive Report, Hong Kong, Planning, Environment and Lands Bureau,
Government of the Hong Kong Special Administrative Region, 1998, p.10.
Figure 5.5 ‘Scenario B’ adopted in the Territorial Development Strategy Review
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Table 5.18 Estimated population growth in Territorial Development Strategy Review 1996
Estimated
population
growth
‘Build-back’ through redevelopment and the reuse of vacated flats in the 290,000
public and private sectors, mainly in the Metro Area
Spare capacity in current development plans, mainly in the new towns in the 70,000
New Territories
West Kowloon Reclamation (intensification) 30,000
Kai Tak and Kowloon Bay, Phase 1 (land-based) and Phase 2 230,000
(reclamation-based)
Green Island Reclamation 40,000
Tsuen Wan Bay Reclamation 30,000
Central–Wanchai Reclamation (remainder) 15,000
Tsuen Kwan O Phase 3 (remainder) and intensification/extension 125,000
Tung Chung, Phases 2 (remainder), 3 and 4 115,000
Yuen Long South 20,000
Au Tau–Kam Tin 30,000
Whitehead 5,000
Source: Hong Kong Government Planning, Environment and Lands Branch, Territorial Development Strategy Review 1996: A
Consultative Digest, Hong Kong, Government Printer, 1996, pp.25, 66–68.
In the medium-term strategies developed on this basis, 60.5 per cent of the popu-
lation would be distributed in the Metro Area, whereas the population increase
in north-west, south-west and south-east New Territories would account for 39.5
per cent of the overall population. The working population in the Metro Area
would account for 58 per cent of the total working population in Hong Kong and
74 per cent of the total number of jobs in Hong Kong; the New Territories would
account for 42 per cent of the total population in Hong Kong, 13 per cent higher
than the 29 per cent of 1991; the number of jobs would increase from 17 per cent
in 1991 to 26 per cent; in 1991, the ratio of overall population to job was 3.59/1.00.
As the population relocated to the non-central regions, the ratio would change
to 3.19/1.00 by 2006, in which the changes in north-west and north-east New
Territories would be more obvious.178 (See Table 5.18 and Figure 5.6.)
It was estimated that, by 2001, most of the newly opened up residential land
with existing layout and planning in urban areas would be developed, much of
which would be for public housing. It was also estimated that, between 2001
and 2006, the annual demand for public and private housing would be around
78,000 units. As estimated by the authority, the overall potential demand for
housing units would be around 390,000 units between 2001 and 2006, which
178
Hong Kong Government Planning, Environment and Lands Branch, Territorial Development Strategy
Review 1996: A Consultative Digest, Hong Kong, Government Printer, 1996, p.69.
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Source: Hong Kong Planning Department, Consolidated Technical Report on the Territorial Development Strategy Review’96, Hong Kong, Planning Department, 1996, p.72.
Figure 5.6 Distribution of potential new strategic growth areas
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would be equivalent to the demand generated by 1 million people. Among
these 1 million, 700,000 came from population growth, while the remaining
300,000 would be the people who used to live in apartments necessary for rede-
velopment, who were affected by demolition, moving out from substandard or
overcrowded housing. The authority would also need to make arrangements
for the increase of 410,000 jobs.179 Therefore, it was suggested that the Housing
Authority should develop a brand-new long-term housing strategy to provide
housing for squatter residents, redevelop substandard public housing estates
and provide more housing under the Home Ownership Scheme.
Expansion of the transport network
To meet the needs of the planned population in the future, the planning of road
networks, as large infrastructure projects, connecting urban areas to the New
Territories would be the key to development. Between 1996 and 1999, the Hung
Hom Bypass and Princess Margaret Road Link in response to traffic congestion
(1.16 billion Hong Kong dollars), the second Tsing Yi South Bridge constructed
between 1992 and 1998 (1.12 billion Hong Kong dollars) and the improvement
project at Lung Cheung Road and Ching Cheung Road (1.13 billion Hong Kong
dollars) were projects of over 1 billion Hong Kong dollars, but they were of a rela-
tively smaller scale compared to the Airport Core Programme. (See Table 5.19.)
By the mid-1980s, Hong Kong had overcome geographical obstacles to
build seven tunnels through the mountains and across the harbour that con-
nected Kowloon, Hong Kong Island and the New Territories. In total there
were 11 tunnels in Hong Kong, including the Lion Rock Tunnel, Hung Hom
Cross Harbour Tunnel, Aberdeen Tunnel and Kai Tak Airport Tunnel, which
were completed before 1986. Eastern Harbour Crossing and Western Harbour
Tunnel were built to strengthen the connection between Hong Kong Island and
the Kowloon Peninsula, while the remaining new tunnels were all located in the
New Territories: the Shing Mun Tunnel and Tate’s Cairn Tunnel in Sha Tin,
Tseung Kwan O Tunnel in New Territories east, and Cheung Tsing Tunnel and
Tai Lam Tunnel in New Territories west. Therefore, the transportation network
in Hong Kong had become more elaborate and efficient. An assessment of the size
of the project based on cost shows that Tai Lam Tunnel had involved the highest
funding (6.3 billion Hong Kong dollars), followed by Western Harbour Tunnel
(5.7 billion Hong Kong dollars); Eastern Harbour Crossing cost 3.4 billion Hong
Kong dollars and came in third place. Apart from a high project cost, Tai Lam
Tunnel provided more lanes. The scale of the project was much bigger than that
of other tunnel projects carried out between the 1960s and 1970s. In terms of
the length of the tunnels completed after the 1980s, Tate’s Cairn Tunnel was the
longest (3,900 metres), followed by Tai Lam Tunnel (3,800 metres) and Shing
Mun Tunnel (2,600 metres). (See Table 5.20.)
179
Hong Kong Government Planning, Environment and Lands Branch, Territorial Development Strategy
Review 1996: A Consultative Digest, Hong Kong, Government Printer, 1996, p.52.
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Table 5.19 Hong Kong major road projects in 1986–1998
Year Project Length of trunk Construction
route (km) cost (HK$100
million)
1991−1997 Lantau Link 3.5 118.6
1993−1998 Route 3 (Kwai Chung to Ting Kau section) 20.65 82.4
1992−1997 North Lantau Expressway 12.45 63.6
1993−1997 West Kowloon Expressway 4.20 26.6
1986−1990 Route 5 7.00 18.5
1987−1991 Kwun Tong Bypass 4.74 17.4
1996−1999 Hung Hom Bypass and Princess Margaret Road 2.50 11.6
Link
1994−1998 Lung Cheung Road and Ching Cheung Road Lung Cheung 11.3
improvements Road: 2.6; Ching
Cheung Road:
2.79
1977−1997 West Kowloon Corridor 5.00 8.4
Sources: William Kritzberg, Qing Yu ganxian (The Lantau Link), Hong Kong, Zheng fu zong bu gong wu ju xin ji chang gong cheng
tong chou shu, 1998, p.10; Hong Kong Government Information Services, Xiang Gang (Hong Kong), Hong Kong, Government
Printer, 1990, p.191, 1991, p.214; Hong Kong Government Information Services, Hong Kong: The Facts, Hong Kong, Hong
Kong Information Services Department, 1989, 1990, 1992, 2005; Highways Department internal data, Length of Trunk Routes;
Highways Department, Tsing Yi North Coastal Road, http://www.hyd.gov.hk/chi/major/majorworks/List_9/index.htm; Item for
Public Works Subcommittee of Finance Committee, Legislative Council, 22 July 1998, http://www.legco.gov.hk/yr98-99/chinese/fc/
pwsc/papers/pw220708.htm; Highways Department, Hung Hom Bypass and Princess Margaret Road Link, http://www.hyd.gov.hk/
chi/major/majorworks/List_15/index.htm; Highways Department, Hung Hom Bypass and Princess Margaret Road Link, pamphlet,
1999; Highways Department, Lung Cheung Road and Ching Cheung Road Improvements, http://www.hyd.gov.hk/chi/major/
majorworks/List_17/index.htm; Jichang hexin jihua (The Airport Core Programme), Hong Kong, Government Printer, 1999, pp.68,
80, 92; Airport Core Programme, http://www.info.gov.hk/napco/index.html. Accounts of Hong Kong . . . and Annual Report of the
Director of Accounting Services from 1970–71 to 1984–85, Hong Kong, Government Printer, 1971–1985; Hong Kong Treasury,
Annual Report of the Director of Accounting Services . . . and the Accounts of Hong Kong for the Year Ended 31 March, from
1986–87 to 1996–97, Hong Kong, Government Printer, 1987–1997; Hong Kong Treasury, Accounts of the Government for the
Year Ended 31 March, from 1997–98 to 2003–04, Hong Kong, Government Printer, 1998–2004.
Multi-node development
The rapid growth of the population after the war had exceeded the capacity of the
core urban districts. The first generation new towns planned in the 1960s were a
great success. In the late 1970s, the Hong Kong government further developed
the New Territories to plan for the second generation new towns, including Yuen
Long, Fanling/Sheung Shui and Tai Po, to expand the scope of the city to the
New Territories north. The government conducted large-scale reclamation or
land development near the rural settlements of the New Territories inhabitants
to build public housing and ancillary facilities, to carry out railway modernisation
projects and to build Tolo Highway, shortening the distance between the New
Territories and the central urban areas. With a well-connected transportation
system throughout Hong Kong, the new towns could not only provide public
housing for the ever growing population, but also develop themselves as self-suf-
ficient integrated communities, alleviating the burden of the core urban districts.
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Table 5.20 An overview of vehicular tunnels constructed in 1986−1998
Name of tunnel Construction Length × width No. of Construction
years (m) lanes cost (HK$100
million)
Eastern Harbour Crossing 1986−1989 1,860 × 6.75 2×2 34
Shing Mun Tunnel 1986−1990 2,600 × 6.75 2×2 7.95
Tseung Kwan O Tunnel 1986−1990 900 × 7.42 2×2 3.6
Tate’s Cairn Tunnel 1988−1991 3,900 × 7.75 2×2 21.5
Western Harbour Crossing 1993−1997 2,000 × 11 3×2 57
Cheung Tsing Tunnel 1993−1997 1,650 × 11 3×2 8.6
Tai Lam Tunnel 1996−1998 3,800 × 11 3×2 63
Sources: A.J. Shephard, Hong Kong Departmental Report by the Commissioner for Transport for the Period 1st December
1968 to 31st March 1970, Hong Kong, Transport Department, 1970, p16; Highways Department internal data; Wen Wei Po,
28 April 1998; Hong Kong Economic Times, 6 April 2000; Ming Pao, 19 January 1978, 7 November 1990; Wah Kiu Yat Po, 3
August 1972; Hong Kong, Hong Kong, Government Printer, 1978, p.130; New Hong Kong Tunnel Co. Ltd webpage, Eastern
Harbour Tunnel Annual Report 2004, http://www.easternharbourtunnel.com.hk/nhktc/chi/c-annual-report-2004.pdf; Tate’s
Cairn Tunnel Co. Ltd webpage: http://www.tctc.com.hk/chi/tunnel_facts.html; Highways Department webpage: http://www.
hyd.gov.hk/chi/major/airport/mw_b.htm.
Yuen Long
As early as the 1960s, the government had begun to resume land from Yuen
Long villagers for building public housing estates. The oldest public housing
estate in the district was Yuen Long Estate, whose first intake took place in 1967
with 5,967 residents. Between 2012 and 2015, there were two public housing
estates in Yuen Long (excluding Tin Shui Wai), with a total of 19,300–26,000
residents. The planning of Yuen Long was based on the blueprint of the first gen-
eration new towns. The design of public housing estates emphasised environ-
mental protection and the provision of public space. The public housing estates
in the district offered plentiful recreational facilities, open space, sports facilities
and covered pedestrian walkways, as a result of which the residents found their
everyday life convenient. Yuen Long used to be connected to the urban areas by
the Castle Peak Road only. Since the gradual opening of Tuen Mun Highway in
1978, the traffic was improved. After over 30 years of development, the number
of major main roads in Yuen Long has increased. In 1988, the Light Rail started
to operate between Yuen Long and Tuen Mun; in 2003, the West Rail Line was
opened, connecting the urban areas and Yuen Long.
Tai Po
Since 1976, the government had carried out several large-scale reclamation
works, forming over 300 hectares of land for more comprehensive new town
planning. The public housing estates in Tai Po were basically built on the
reclaimed land. The oldest public housing estate is located around the Tai Po
Old Market and along the Tolo Harbour. Given the plentiful space, the adja-
cency to the sea and the proximity to nature compared with the urban areas,
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Approaching the handover (1979–1997) · 277
urban residents were more willing to move to Tai Po. Tai Yuen Estate was the
first public housing estate in Tai Po. The intake started in 1981 with 8,479 resi-
dents. Between 2012 and 2015, there were six public housing estates altogether
in Tai Po, with a total of 47,600 residents. Public housing takes up a large area,
with an emphasis on green space. There are complexes and community facili-
ties neighbouring the housing estates. Apart from opening up a vast area of the
industrial estate to promote industrial development, there are also education
and medical facilities, and recreational facilities like the Waterfront Park and
cycling tracks. The environment of the community is graceful.
Sheung Shui/Fanling
Located in the north-east of the New Territories, the North District is divided into
four: Sheung Shui, Fanling, Sha Tau Kok and Ta Kwu Ling, collectively known
as ‘Sheung Fan Sha Ta’. The public housing estates are mainly clustered around
areas close to Sheung Shui and Fanling stations, which are relatively distant from
Shek Wu Hui in Sheung Shui and Luen Wo Hui in Fanling, where the indigenous
inhabitants live. As a second generation new town, the North District was more
systematically planned than the first generation new towns. The concept of ‘bal-
anced development’ was introduced to allocate public and private housing, and
home ownership and rental in ratios. Since Sheung Shui and Fanling were remote
from the urban areas, attention had been paid to the development of the transpor-
tation network. The electrification of the railway and the opening up of highways
were conducive to solving the cross-district traffic problems. Choi Yuen Estate
was the first public housing estate in Sheung Shui, whose first intake took place
in 1982 with 14,036 residents. Between 2012 and 2015, there were ten public
housing estates altogether in Sheung Shui/Fanling, with a total of 65,100 resi-
dents. The housing estates are self-sufficient, and do not rely on external travel for
everyday life. There are wet markets, shopping centres and shops in the housing
estates; residents can address their basic daily needs within the district.
Between the 1980s and 1990s, the third generation new towns such as Tung
Chung, Tseung Kwan O and Tin Shui Wai emerged. The opening up of Tung
Chung was to tie in with the development of the new airport. A large amount
of public housing was built in Tseung Kwan O and Tin Shui Wai to solve the
housing problems of the grassroots. Since the development time of the third
generation new towns was relatively short, their planning and facilities were not
as good as those in the first and second generation new towns. Hospitals and
community facilities have yet to be developed in these districts.
Tseung Kwan O
Tseung Kwan O is located in Sai Kung. In the first phase of the reclamation
project in the early 1980s, Po Lam, Tsui Lam and King Lam Estates were built;
in the early 1990s, the second phase of development in Hang Hau and Tseung
Kwan O town centre had started; the third and current phase of the Tiu King
Ling cottage area demolition, which started in the late 1990s, is still under
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development. The initial intake of the oldest public housing estates in Tseung
Kwan O, which are Po Lam and Tsui Lam Estates, took place in 1989 with
23,216 residents. By 2015, there were nine public housing estates altogether,
with a total of 85,500 residents. Given the relatively long distance from the
urban areas, the government had to construct the transport facilities to connect
the district to the urban areas. Tseung Kwan O Tunnel and the MTR Tseung
Kwan O line were completed respectively. To cater for the problem of an ageing
population, public housing for the care of the elderly was introduced for the first
time; more individual small units were set up, and barrier-free facilities were
introduced for the convenience of the disabled. (See Figure 5.7.)
Tung Chung
Located on the northern coast of Lantau Island, Tung Chung is also a new town
built on an outlying island. Developing a new town on northern Lantau was part
of the Airport Core Programme project in the 1990s. The opening of the airport
provided tens of thousands of job opportunities, while the Tung Chung new
town had also provided a large labour force to the airport. A number of public and
private housing estates have been completed in Tung Chung in the last 20 years.
To coordinate with the planning of the Chek Lap Kok International Airport, the
oldest public housing estate in the area is Fu Tung Estate. There were only 5,000
residents in its first intake in 1997. By 2015, there were two public housing estates
in Tung Chung, with a total of 46,700 residents. Built with the extensive use
of prefabricated components, the harmony block housing estates paid consider-
able attention to the spatial layout of the living environment and environmental
protection. There is a lot of greenery in the housing estates that is managed pro-
fessionally, with a view to improving the residents’ quality of life. Other public
facilities such as a swimming pool, library and sports ground have been built in
the neighbourhood of the housing estates in the past few years. (See Figure 5.8.)
Tin Shui Wai
Tin Shui Wai is located between Tuen Mun and Yuen Long adjacent to Ping
Shan in the north-western New Territories. In 1992, the total population in
Yuen Long town, Long Ping and the rural areas was around 230,000. The area
of the entire Tin Shui Wai development plan was about 448 hectares (5 km2),
and the plan was carried out in two phases. Phase 1 focused on the 220 hec-
tares of land in the south, which included three public housing estates, two
home ownership schemes and one region for private housing, with a planned
population of 140,000 people; 260 hectares of land were developed in Phase 2,
which was reserved for the expansion plan. The oldest public housing estate in
Tin Shui Wai new town is Tin Yiu Estate, with 14,000 residents upon its first
intake in 1992. By 2015, there were 13 public housing estates altogether in Tin
Shui Wai, with a total of 174,000 residents. The buildings are harmony blocks,
allowing the residents of different wings to enjoy different scenes and sunshine.
As for community facilities, apart from basketball courts, small football courts
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Approaching the handover (1979–1997) · 279
Source: Hong Kong Planning, Environment and Lands Bureau, Territorial Development Strategy Review – A Response to Change and
Challenges: Final Executive Report, Hong Kong, Planning, Environment and Lands Bureau, Government of the Hong Kong Special
Administrative Region, 1998, p.58.
Figure 5.7 Outline concepts for acceleration of housing development at Tseung Kwan
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Source: Hong Kong Planning, Environment and Lands Bureau, Territorial Development Strategy Review – A Response to Change and Challenges: Final Executive Report, Hong Kong, Planning, Environment and Lands Bureau,
Government of the Hong Kong Special Administrative Region, 1998, p.59.
Figure 5.8 Outline concepts for acceleration of housing development at Tung Chung and Tai Ho, North Lantau
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Approaching the handover (1979–1997) · 281
and children’s playgrounds, there are community centres, car parks, shopping
centres, recreational parks and gardens. The transportation in Tin Shui Wai is
rail-based, relying on the MTR system – the Light Rail and the West Rail Line.
Disputes on the use of land in the New Territories
According to the Qing Code, inherited land (yongyetian) owned by indigenous
inhabitants in the New Territories may be passed on to their offspring by way
of succession. No designation for agricultural, residential or indeed any particu-
lar use was made for such land.180 On 9 June 1898, China and Britain signed the
Convention for the Extension of Hong Kong Territory, which said: ‘It is further under-
stood that there will be no expropriation or expulsion of the inhabitants of the
district included within the extension, and that if land is required for public offices,
fortifications, or the like official purposes, it shall be bought at a fair price.’181 After
the Hong Kong government took over the New Territories in 1898, Governor
Blake issued a proclamation in 1900: the indigenous residents’ commercial and
landed interests would be safeguarded, and their usage and good customs would
not in any way be interfered with.182 From 1899 to 1903, the colonial government
measured and registered land in the New Territories. In 1905, Block Crown Leases
were issued in exchange for the ‘red deeds’ and ‘white deeds’ previously issued by
the Qing government to inhabitants of the New Territories. In these Block Crown
Leases, inhabitants were required to register the use of the land, for example for
residential use or agricultural use. Subsequently, the government would restrict
the landowner’s use of the land on this basis. In order to build houses on agri-
cultural land, one would have to apply to the government183 and pay a premium
for the difference in value of the land. This was very different from the inherited
land known to indigenous inhabitants. Before the return of sovereignty to China in
1997, indigenous inhabitants were very dissatisfied with the colonial government’s
policy for handling land in the New Territories, and looked forward to a renewed
affirmation of their rights in land by the HKSAR government. After the handover,
while the HKSAR government refused to accept the previous unequal treaties, the
government also found it hard to dismiss the past land policy entirely. This is why,
to this day, issues like the change of use of agricultural land in the New Territories,
and compensation for the resumption of New Territories land by the government
for public purposes, remain the most challenging facing development of the area.
The problem of building houses on agricultural land
The colonial government required the New Territories land title owners to use
their land according to the use declared on the Block Crown Lease. In 1950, if
180
Xinjie xiangyiju baogao (Report of the New Territories Heung Yee Kuk), Hong Kong, p.193.
181
The Convention Between Great Britain and China Respecting an Extension of Hong Kong Territory, London,
Harrison and Sons, 1898.
182
Xinjie xiangyiju baogao (Report of the New Territories Heung Yee Kuk), Hong Kong, p.193.
183
Land Registry Order/Copy Separator, Doc. No. SD3L, Block Crown Lease, 1905, pp.2–3.
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the New Territories inhabitants built houses on their agricultural land, they had
to submit to the government a plan drawn by a surveyor. As required by the gov-
ernment, the area of village houses should not be larger than 700 square feet and
taller than 25 feet. Indigenous inhabitants had to pay a land premium if they built
houses on agricultural land. In 1955, the District Offices of the New Territories
announced that 20–30 cents were to be paid per square foot as the premium for
concrete-built houses. Between 1954 and 1957, the ratio for exchanging agricul-
tural land to residential land was 3 square feet to 1 square foot; no land premium
was required if the land exchanger did not build concrete houses. Between 1957
and 1959, the agricultural land to residential land exchange ratio was increased
to 5 square feet to 1 square foot, while no land premium was required. Between
1959 and 1963, the ratio was changed to 5 square feet to 2 square feet, but land
exchangers had to pay 27.5 Hong Kong dollars per square foot to the govern-
ment. In 1964, the exchange ratio was still at 5:2, but the premium per square
foot was raised to 60–100 Hong Kong dollars,184 while the government only
paid land title owners a dollar and a few tens of cents if the land in the New
Territories was resumed for public purposes.
In 1964, the government announced a relaxation of the limit of the area of
village houses to 1,000 square feet, while the land premium per square foot
remained unchanged; the requirement for surveyor-drawn plans was removed.
It was permitted to build two-storey concrete houses in the New Territories,
with one-third of the upper floor of these houses left unroofed. In the late 1960s,
the New Territories Heung Yee Kuk requested the government to amend
the Crown Lands Resumption Ordinance promulgated in 1900 to relax the use
requirements for land in the New Territories, reduce the compensation for land
exchange, allow payment of the land premium by instalments and allow inhabit-
ants to exchange the resumed land for commercial, residential or industrial land
use.185
On 22 April 1971, the Heung Yee Kuk organised the New Territories Heung
Yee Kuk Special Committee on Striving for Reasonable Rights and Interests for
Residents, which reasoned with the New Territories District Magistrate Denis
Campbell Bray. The indigenous inhabitants protested that the land resumption
policy did not take into account the potential value of the land, which was differ-
ent from how land was handled in Britain and was unfair to the New Territories
indigenous inhabitants. They requested the government to consider not only
the potential value but also the benefits that could be generated at the time
of land resumption. In April 1972, the New Territories inhabitants protested;
apart from the request for relaxation of restrictions on building village houses,
and compensation for land resumption and exchange, the Heung Yee Kuk
184
Xue Fengxuan and Kuang Zhiwen, comps and eds, Xinjie xiangyiju shi: You zujidi dao yiguoliangzhi
(History of the New Territories Heung Yee Kuk: From Leased Territory to One Country, Two Systems),
Hong Kong, Joint Publishing (HK) Co.; Advanced Institute for Contemporary China Studies of the Hong
Kong Baptist University, 2011, pp.201–202.
185
Liu Chong, ed., Xinjiae zhuanbian de niandai (An Era of Change in the New Territories), Hong Kong,
Xinjie zhanwang she, 1972, p.40.
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requested the government to allow landowners to change the land use from that
in the blueprint.186 The government made concessions based on the requests
and implemented the New Territories Small House [known as male house]
Policy on 1 December 1972, stipulating that male indigenous inhabitants in the
New Territories would be allowed to build a Small House with roofed-over area
no bigger than 700 square feet and no taller than 29 feet, and no land premium
should be paid to the government.187
Compensation issues on land resumed by the government
Indigenous inhabitants wished to decide the direction of land development
themselves, and thus requested the government to allow them to change the
use of the land. However, the government had to resume a large amount of
land in the New Territories for public purposes as a result of new town develop-
ment. Both parties thus wished to take the leading role in land development. In
the 1960s, the disputes between both parties turned tense, as the government
wanted to develop new towns in the New Territories. Before 1960, the gov-
ernment would provide cash compensation to landowners if private land was
resumed for public purposes.188 In the mid-1960s, to reduce the expenditure on
land resumption in New Territories, the government replaced cash compensa-
tion with the issue of land exchange entitlements between 1960 and 1983 as the
authority resumed land in the New Territories: there were two types of land
exchange entitlements, Letter A and Letter B, issued to the landowners whose
land was resumed in the New Territories.189 Letter A holders were entitled to
exchange 1 square foot of residential land for 1 square foot of building land,
while Letter B holders were entitled to exchange 5 square feet of agricultural
land for 2 square feet of building land. The value of the land resumed would be
credited with reference to the market value at the time of land resumption.190
Between the 1970s and 1980s, property developers in Hong Kong spotted
the rising trend in land prices in the New Territories, and thus hired real estate
brokers with good interpersonal networks in the New Territories to actively
purchase the land exchange entitlements. In the mid-1970s, there were about
36 million square feet of the land exchange entitlements yet to be redeemed,
which were mainly owned by the leading property developers such as Sun Hung
Kai Properties, Henderson Land Development, Nam Fung Development, and
Chinachem Group in Hong Kong. Since the comprehensive planning of new
towns required a lot of public land, the amount of land exchange entitlements
redeemable for private development was thus reduced; the amount of land in
186
South China Morning Post, Hong Kong, 3 March 1972.
187
Xinjie xiangyiju baogao (Report of the New Territories Heung Yee Kuk), Hong Kong, p.193.
188
Xinjie xiangyiju baogao (Report of the New Territories Heung Yee Kuk), Hong Kong, p.193.
189
Legco Panel on Planning, Lands and Works, ‘New Territories Land Exchange Entitlements
(Redemption) Bill’, 1996, http://www.legco.gov.hk/yr95-96/chinese/panels/plw/papers/pl2506-6.htm#1.
190
Legco Panel on Planning, Lands and Works, ‘New Territories Land Exchange Entitlements
(Redemption) Bill’, 1996, http://www.legco.gov.hk/yr95-96/chinese/panels/plw/papers/pl2506-6.htm#1.
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the New Territories for selling in open auction was even smaller. Property devel-
opers had the advantage because of their well-stocked land exchange entitle-
ments in hand.
Since the government formulated the policy on acquiring land through
land exchange entitlements, the New Territories District Office prioritised
the exchange for land of substantial area with land exchange entitlements.
Indigenous inhabitants who held a small amount of land exchange entitle-
ments had little chance of successful land exchange. They found their interests
neglected by the government, and thus opposed the government’s policy of
resuming land by land exchange entitlements.191 Land exchange entitlement
holders could decide the land use and time of exchange to stay close to the
market trend. The higher the land price, the more the profit yielded from land
exchange entitlements. Although some agricultural land might belong to the
‘Agriculture’ zone under the statutory outline zoning plan with no development
value, land exchange entitlement holders could apply for rezoning192 to change
the agricultural land to residential or other purposes. Land premiums were only
to be paid to the government for a change in land use. The successive increase
in land value in the New Territories made the government bear an increas-
ingly heavy burden on land supply. Therefore, the government stopped issuing
land exchange entitlements in March 1983. In the early 1980s, the government
allowed property developers to replace cash with land exchange entitlements
when bidding for Crown land under public offer, and for payment of the land
premium in deed amendment. In the Sino-British Joint Declaration of 1984,
the Chinese and British governments agreed to solve the problems of all unre-
deemed land exchange entitlements before June 1997; the Hong Kong govern-
ment had to repurchase the unredeemed land exchange entitlements as soon as
possible.
Indigenous inhabitants striving for interests in land
Indigenous inhabitants considered the compensation for land resumption
provided by the government to be too low, and the quantity of land exchange
entitlements held by individuals to be too small to compete with property
developers. The land premium for changing land use was very high, while the
indigenous inhabitants lacked capital for this purpose. Since 1971, the govern-
ment had reviewed the land premium to be paid in exchange for land exchange
entitlements twice a year. However, the land value declared upon the issue of
land exchange entitlements was not reviewed, and the government even refused
to make reference to the land prices of neighbouring districts.193 Indigenous
191
Liu Runhe, Xinjie jianshi (A Brief History of the New Territories), Hong Kong, Joint Publishing (HK)
Co., 1999, p.87.
192
Alice Poon, Land and the Ruling Class in Hong Kong, translated by Yan Shi-min, Hong Kong, Enrich
Professional Publishing; Hong Kong Economic Journal Co., 2010, p.83.
193
Xinjie xiangyiju gongbao (Bulletin of the New Territories Heung Yee Kuk), Volume 7, Hong Kong, New
Territories Heung Yee Kuk, September 1975, p.2.
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inhabitants even thought that the government was delaying the compensation
for land resumption.194
In February 1974, the Heung Yee Kuk appealed to Hong Kong Governor
MacLehose about the discontent of indigenous inhabitants on the govern-
ment’s land policies, stating their position that land exchange entitlements could
not safeguard the interests of the inhabitants, and requesting cash compensa-
tion instead of land exchange entitlements. In September 1975, the govern-
ment agreed to replace land exchange entitlements with cash payments for land
resumption. Indigenous inhabitants requested that the government provide
more land for land exchange entitlement holders to exchange for so as to reduce
the waiting time. They also urged the government not to focus only on the
exchange of land of substantial area, but to provide more land of small areas for
small landowners to apply for, but the government did not change its method of
land resumption and compensation calculation.195
In March 1977, the Heung Yee Kuk spent 120,000 Hong Kong dollars to
hire a barrister to compose the Common Submission, pointing out the reasons
why the land policies of the New Territories were unfair, and describing to the
British Secretary of State for Foreign and Commonwealth Affairs, Labour Party
members and others the constraints inhabitants had in using land in the New
Territories.196
Indigenous inhabitants pointed out in the Common Submission how unfairly
the government was handling the New Territories land policies. The colonial
government forbade any landowners who had acquired their land before the
signing of the Convention for the Extension of Hong Kong Territory to enjoy their
entitled rights, although inherited landowners should be able to use their land
freely; the government even required indigenous inhabitants to pay a huge
amount of land premium when they changed the restricted terms. In 1900, when
Hong Kong Governor Blake issued the Advance Notice, he promised to allow
villagers to freely use their land. The government-issued Block Crown Lease
lacked sufficient legal basis: the deed was expressed in the form of a Crown lease
with the government as the approver, but the grantee column on the Crown
lease was never signed.197 The government authority concerned had not for-
mulated and passed any legislation to make the terms concerned valid, while
Article 17 of the New Territories (Land Court) Ordinance did not state that the
194
Xinjie xiangyiju, Xinjie xiangyiju nianjian, dishijiujie, 1970–1972 (Yearbook of the New Territories
Heung Yee Kuk, 19th Term, 1970–1972), Hong Kong, Xinjie xiangyiju, 1972, pp.6–7.
195
Xue Fengxuan and Kuang Zhiwen, comps and eds, Xinjie xiangyiju shi: You zujidi dao yiguoliangzhi
(History of the New Territories Heung Yee Kuk: From Leased Territory to One Country, Two Systems),
Hong Kong, Joint Publishing (HK) Co.; Advanced Institute for Contemporary China Studies of the Hong
Kong Baptist University, 2011, p.206.
196
New Territories Heung Yee Kuk, Xianggang zhimingdi zhengzhi xia de Xinjie shehui (The Society of the
New Territories under Hong Kong’s Colonial Political System), Hong Kong, New Territories Heung Yee
Kuk, 1977, p.8.
197
Xue Fengxuan and Kuang Zhiwen, comps and eds, Xinjie xiangyiju shi: You zujidi dao yiguoliangzhi
(History of the New Territories Heung Yee Kuk: From Leased Territory to One Country, Two Systems),
Hong Kong, Joint Publishing (HK) Co.; Advanced Institute for Contemporary China Studies of the Hong
Kong Baptist University, 2011, p.210.
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286 · MAKING HONG KONG
government-issued Crown lease was bounded by the deed unilaterally devel-
oped by the government.198
The Common Submission pointed out that the land use stated on the Block
Crown Lease was only a description of the land use at that time, but not a record
of what the land on the lease was used for. Villagers filled out the forms to
provide information for facilitating the government survey without realising that
the declared information would determine the use of the land they owned. The
fourth column on the Crown lease was titled ‘Description of Lot’ and did not
mention post-lease land use.199 The public purposes stated in the Convention for
the Extension of Hong Kong Territory referred to ‘public offices, fortifications or
the like official purposes’, and both parties had no plan to carry out industrial or
new town development when they signed the Convention. Therefore, the ‘public
offices, fortifications or the like official purposes’ were just general governmen-
tal or defence purposes.200 The government forcibly resumed land from indig-
enous inhabitants for purposes not stated in the Convention for the Extension of
Hong Kong Territory. The government did not offer reasonable compensation
as opposed to the ‘fair price’ stated in the Convention for the Extension of Hong
Kong Territory. The government violated the stipulation of buying land ‘at a
fair price’ in the Convention for the Extension of Hong Kong Territory. In Clause
C of Article 12 of the Crown Lands Resumption Ordinance formulated in 1900,
the potential value of land was excluded, but it was stated in Clause D that land
would be resumed at market price; these two statements were contradictory and
a violation of principles. The government only considered the land resumed as
agricultural land and calculated the rent as the basis of compensation without
taking into account the geographical location of the land and the value of non-
agricultural land.201
The government did not respond to the accusations in the Common
Submission, but reiterated the provisions in section 8 of the New Territories
Ordinance: ‘All land in the New Territories is hereby declared to be the property
of the Crown from 23 July 1900. Therefore, the value of land shall be the value
obtained in official assessment and must depend on official standards.’ In 1972,
the government reiterated that the estimated value of the resumed land would
not be based only on the market price, and also would not be based on the
198
Xue Fengxuan and Kuang Zhiwen, comps and eds, Xinjie xiangyiju shi: You zujidi dao yiguoliangzhi
(History of the New Territories Heung Yee Kuk: From Leased Territory to One Country, Two Systems),
Hong Kong, Joint Publishing (HK) Co.; Advanced Institute for Contemporary China Studies of the Hong
Kong Baptist University, 2011, p.210.
199
New Territories Heung Yee Kuk, Xianggang zhimingdi zhengzhi xia de Xinjie shehui (The Society of the
New Territories under Hong Kong’s Colonial Political System), Hong Kong, New Territories Heung Yee
Kuk, 1977, p.9.
200
New Territories Heung Yee Kuk, Xianggang zhimingdi zhengzhi xia de Xinjie shehui (The Society of the
New Territories under Hong Kong’s Colonial Political System), Hong Kong, New Territories Heung Yee
Kuk, 1977, pp.10–11.
201
New Territories Heung Yee Kuk, Xianggang zhimingdi zhengzhi xia de Xinjie shehui (The Society of the
New Territories under Hong Kong’s Colonial Political System), Hong Kong, New Territories Heung Yee
Kuk, 1977, p.12.
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‘potential benefits of land’.202 The resumed land price determined by the gov-
ernment was based on three principles: transaction cases in neighbouring areas
recorded by the District Office, Crown rent in terms of grains, and information
on public land auctions.
In September 1977, District Magistrate of the New Territories David Akers-
Jones believed that the Convention for the Extension of Hong Kong Territory,
Block Crown Leases and the promises the government had made to indigenous
inhabitants since 1898 hindered the government in resuming a large amount
of private land in the New Territories for the new town development plan. It
would also be difficult for the government to realise the land exchange promise
agreed on the land exchange entitlements in the short term. Even if the govern-
ment could interpret the validity of the Crown Lands Resumption Ordinance in
a way that could comply with its authority, the government and Heung Yee
Kuk would still argue over how to determine land prices. To placate indigenous
inhabitants, it was suggested the Executive Council give up the land exchange
entitlement policy. In order to solve the problem of land exchange entitlements
and compensation for land resumption, it was suggested that the government
should set up a seven-member committee formed by a president, two govern-
ment officials, two unofficial members of the Legislative Council and two rep-
resentatives from the New Territories, one of whom should be from the Heung
Yee Kuk, to discuss the issues of land exchange entitlements.203
The suggestions were passed in the Executive Council. In November 1977,
a senior unofficial member of the Legislative Council and Chairman of Bank of
East Asia Kan Yuet-keung was appointed to lead the Working Group on New
Territories Urban Land Acquisition to study land issues in the New Territories.
On 20 April 1978, the Working Group submitted a report to the government,
stating that there would not be enough land at present and in the future to fulfil
all demands in both Letter A and Letter B within a reasonable time.204 Since the
current land exchange entitlement policy could not meet practical needs, the
government should review its land compensation policy.205
The suggestions, which included compensation of 27 Hong Kong dollars per
square foot and an ex gratia payment of 55 Hong Kong dollars per square foot,
were implemented in April 1978; the compensation amount was to be adjusted
every half-year. Half land compensation and half land exchange entitlement
would also be accepted.206 The government then decided to review the compen-
sation amount for the first time on 1 October 1978, raising the compensation
for agricultural land to 39 Hong Kong dollars per square foot, and the ex gratia
202
Liu Runhe, Xinjie jianshi (A Brief History of the New Territories), Hong Kong, Joint Publishing (HK)
Co., 1999, p.97.
203
FCO40/1011, ‘The “Land Problem” in the New Territories’, 24 August 1977, p.3.
204
Report of the Working Group on New Territories Urban Land Acquisitions, Hong Kong, Government
Printer, 1978.
205
Report of the Working Group on New Territories Urban Land Acquisitions, Hong Kong, Government
Printer, 1978.
206
South China Morning Post, 15 July 1977.
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compensation for residential land to 79 Hong Kong dollars, an increase of over
40 per cent.207
In 1983, the Hong Kong government stopped issuing Letter A and Letter B
land exchange entitlements, as it was increasingly difficult to realise a promise
that was equal to 138 hectares of building land. From 1 April 1984, holders of
Letter A and Letter B could exchange them for cash based on the monetised
value table amended and published in the Government Gazette twice-yearly. The
mentioned monetised value was determined with reference to the changes in
property prices in the New Territories.208 In 1997, the government formulated
the New Territories Land Exchange Entitlements (Redemption) Ordinance, stating
that thereafter all the unredeemed land exchange entitlements could only be
redeemed for cash instead of land.209 Therefore, there were no transactions of
land exchange entitlements in the market any more.
Change of land use litigation
The Melhado Investment Ltd case In 1981, Melhado Investment Ltd under
Lau Wong-fat, chairman of the Heung Yee Kuk, rented land in So Kwun Wat
for storing construction materials on a two-year short-term contract. The
government stated that Melhado Investment Ltd had changed the land use
stipulated in the Block Crown Lease, triggering the company to level a charge
against the government in the High Court.
In July 1982, the High Court stated that the lot was described as ‘paddy
fields’, ‘wasteland’, ‘burial grounds’ and ‘upland fields’ in the Block Crown Lease
and that Melhado Investment Ltd did not violate any regulations by placing
construction materials on wasteland. The company also did not put any materi-
als on the burial grounds. As for Melhado Investment Ltd storing construction
materials on agricultural land, the judge believed that the company had only
signed a two-year contract and had no plan to build any houses there, while the
definition of changing land use involved a certain duration, thus deciding in
favour of the company.210
The government refused to accept the verdict and filed an appeal, stating that
the Block Crown Lease had implied regulations on land use. The appeal was
dismissed by the Court of Appeal in March 1983. The verdict from the Court of
207
South China Morning Post, 1 October 1978.
208
Legco Panel on Planning, Lands and Works, ‘New Territories Land Exchange Entitlements (Redemption)
Bill’, 1996, http://www.legco.gov.hk/yr95-96/chinese/panels/plw/papers/pl2506-6.htm#1.
209
‘New Territories Land Exchange Entitlements (Redemption) Bill’, http://www.legislation.gov.hk/
blis_pdf.nsf/CurAllChinDoc/1D7265CFBB65ADE8482575EF000F6F87/$FILE/CAP_495_c_b5.pdf.
210
HKRS597-1-42, ‘District Office Yuen Long Land Conference Notes’, 6 September 1979 – 7 July 1980;
HKRS597-1-43, ‘District Office Yuen Long Land Conference Notes’, 28 July 1980 – 28 April 1981; HKRS597-
1-44, ‘District Land Conference, Yuen Long’, 1 June 1981 – 4 March 1982; HKRS597-1-45, ‘District Land
Conference, Yuen Long’, 30 March 1982 – 8 December 1982; HKRS597-1-46, ‘District Land Conference,
Yuen Long’, 8 December 1982 –25 July 1983; HKRS597-1-47, ‘District Land Conference, Yuen Long’, 8
August 1983 – 26 March 1984; ‘Attorney General v. Melhado Investment Ltd.’, Hong Kong Law Reports 1983,
Hong Kong, Government Printer, 1983, p.327.
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Appeal was: the land use stated in the appendix of the Block Crown Lease served
only as a record of the land use at the moment instead of restricting the land use:
‘the land use stated in the Crown Lease was of descriptive nature but not the
implied deed category claimed in the dispute’. The court adjudicated that only
industries producing noise and odour, as well as the offensive trades, could not
be in operation on the land regulated by a Block Crown Lease, and that unper-
mitted buildings and structures should not be constructed on the land in ques-
tion. After the issue of the verdict, multiple unexploited areas of agricultural land
in the New Territories were changed to different land uses such as open storage,
vehicle abandonment, vehicle repair workshops, container depots and car parks
to meet market demand.211
The Winfat case From 1974 to 1976, Winfat Enterprises (Hong Kong) Limited
bought land in Tuen Mun. The lots were all stated as agricultural land in their
Block Crown Lease. Winfat Enterprises (Hong Kong) Limited planned to
develop the lots into a high-class residential area in 1977 and submitted plans to
the District Magistrate. The District Magistrate rejected the application, quoting
insufficient infrastructure in the area as the reason. The company made another
application in 1978 and was declined again on the grounds that other government
departments could not provide sufficient facilities. The company made a third
application and was rejected by the government for the third time in July 1980, the
reason being that ‘the government has no plan to build houses in the district and
that the government considers the land should be used for agricultural purposes’.
The company’s application in January 1981 was declined for the same reason.
After four failed applications, the company received a short-term waiver to
lease the land to another company for running a car park. That company started
operating there soon after land formation. The lease lasted for three years. In
October the same year, the government suddenly announced the resumption of
the lots for constructing temporary housing and that it would provide 15,299,620
Hong Kong dollars as an ex gratia payment on condition that the lots should
be empty land upon handover to the government. Winfat Enterprises (Hong
Kong) Limited thought that it was contradictory for the government to quote
insufficient infrastructure and facilities as the reason to deter the development
of low-density residential housing in the area while at the same time planning to
build a temporary housing area which could accommodate a large population.
The government also intentionally announced it would resume the land after
the company had leased out the lots, rendering the company unable to receive
the ex gratia payment. The company levelled a charge against the government,
claiming that the Crown Lands Resumption Ordinance was unfair to title owners
and requesting more compensation.212
211
Legislative Council Panel on Planning, Lands and Works, Planning for Open Storage and Port Back-up
Uses in the Rural New Territories, April 2007, p.1, http://www.legco.gov.hk/yr06-07/english/panels/plw/
papers/plw0424cb1-1410-5-e.pdf.
212
‘Winfat Enterprises (HK) Co. Ltd. v. Attorney General’, Hong Kong Law Reports 1983, Hong Kong,
Government Printer, pp.213–215.