XN000022-1977-05-14 — Page 2

SATURDAY, MAY 14, 1977

SAU MAU PING LANDSLIDE COMPENSATION FUND APPROVED

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THE FINANCE COMMITTEE HAS APPROVED THE ESTABLISHMENT OF A $10 MILLION FUND TO MEET CLAIMS FOR EX-GRATIA COMPENSATION FROM VICTIMS OF THE 1976 AND 1972 LANDSLIDES AT SAU MAU PING.

IN ORDER TO EXPEDITE SETTLEMENT OF CLAIMS, THE ATTORNEY GENERAL WOULD CONTROL THE FUNDS.

SINCE THE GOVERNMENT DECIDED IN FEBRUARY TO ACCEPT AN OVERALL RESPONSIBILITY FOR THE LANDSLIDES AND TO PAY EX-GRATIA COMPENSATION TO THE VICTIMS, 206 CLAIMANTS HAVE BEEN REGISTERED WITH THE LEGAL AID DEPARTMENT WHICH IS ASSISTING THEM WITH THE PREPARATION OF THEIR CLAIMS.

A GOVERNMENT SPOKESMAN SAID THAT CLAIMS WERE ALREADY REACHING THE LEGAL DEPARTMENT FROM THE LEGAL AID DEPARTMENT, AND ONCE THE CLAIMS HAD BEEN ACCEPTED AND AGREED UPON BY THE LEGAL DEPARTMENT IT WOULD MAKE PAYMENT TO THE CLAIMANTS AS SOON AS POSSIBLE.

+UNTIL ALL CLAIMS HAVE BEEN RECEIVED AND EXAMINED, IT IS NOT POSSIBLE TO ESTIMATE WITH ANY ACCURACY THE EXPENDITURE WHICH WILL BE INVOLVED, HE SAID.

HOWEVER, ON THE BASIS OF THE CLASSIFICATION OF THE 206 CLAIMS SO FAR RECEIVED - 19 OF WHICH HAVE LATER BEEN WITHDRAWN,

IT WAS ESTIMATED THAT A SUM OF ABOUT $10 MILLION WOULD BE REQUIRED TO SETTLE THE CLAIMS, HE ADDED.

EXPLAINING THE PROCEDURE FOR DEALING WITH CLAIMS, THE SPOKESMAN SAID THAT THE LEGAL AID DEPARTMENT WAS RESPONSIBLE FOR ADVISING THE CLAIMANTS AS TO THE BONA FIDES OF THEIR CLAIMS AND FOR ENGAGING A SOLICITOR FOR THE PURPOSES OF PREPARING Á CLAIM FOR DAMAGES.

ON RECEIPT OF THE CLAIM, THE SPOKESMAN ADDED, THE LEGAL DEPARTMENT WOULD EXAMINE AND CONFIRM THAT THE CLAIMANT WAS THE PERSON ENTITLED TO RECEIVE THE EX-GRATIA COMPENSATION,

IF A SETTLEMENT WAS REACHED BETWEEN THE CLAIMANT'S SOLICITOR AND THE GOVERNMENT, THE LEGAL DEPARTMENT WOULD ARRANGE FOR THE COMPENSATION TO BE PAID. IF NO SETTLEMENT COULD BE REACHED, HOWEVER, THE CLAIM WOULD BE REFERRED TO AN INDEPENDENT BOARD OF ARBITRATION APPOINTED BY THE GOVERNOR.

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