XN000022-1984-07-11 — Page 9

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WEDNESDAY, JULY 11, 1984

LAND LEASE POLICY DETAILS CALLED FOR

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SUFFICIENT DETAILS ON FUTURE POLICY ON LAND LEASES SHOULD BE INCLUDED IN THE SINO-BRITISH AGREEMENT, THE HON F.K. HU SAID TODAY.

SPEAKING IN THE ADJOURNMENT DEBATE, HE SAID, IF SUFFICIENT DETAILS ON LEASES OF LAND ARE SPELLED OUT IN THE AGREEMENT WITH POLICY AND PROCEDURE FULLY CLAR IF IED, DEVELOPERS WILL BE AT EASE TO INVEST IN REAL ESTATE BUSINESS AND THE USERS, INCLUDING MANUFACTURERS. WILL HAVE NO HESITATION IN BUYING OR RENTING LAND PROPERTIES AND THERE WILL BE NO DOUBT FOR HONG KONG TO ACHE IVE STABILITY AND PROSPERITY BOTH BEFORE 1997 AND AFTER 1997.+

+AS PROSPERITY OF THE PROPERTY MARKET PLAYS AN IMPORTANT PART IN THE PROSPERITY OF THE ECONOMY OF HONG KONG, AND THE PROSPERITY OF HONG KONG AS A WHOLE IS THE POST-1997 YEARS RELIES ON OUR EFFORTS TO MAINTAIN PROSPERITY FOR THE NEXT 13 YEARS WHICH AGAIN DEPENDS ON HOW MUCH ASSURANCE WE CAN GET OUT OF THE AGREEMENT WHICH IS TO BE ANNOUNCED, I SUBMIT THAT IT IS OF UTMOST IMPORTANCE THAT THE AGREEMENT SHOULD CONTAIN SUFFICIENT DETAILS ON HOW THE FUTURE POLICY OF LAND AND LEASES WILL BE IMPLEMENTED, + HE SAID.

MR HU SAID DEVELOPERS WERE HESITANT ABOUT PUTTING THE IR MONEY INTO REAL ESTATE BECAUSE OF MARKET UNCERTAINTY.

SLUGGISHNESS OF THE PROPERTY MARKET WOULD EVENTUALLY AFFECT HONG KONG'S POSITION AS AN INTERNATIONAL FINANCIAL, TRADE AND INDUSTRIAL CENTRE.

THESE WERE ALL IMPORTANT FACTORS IN ENSURING THE PROSPERITY OF HONG KONG, HE SAID.

ON THE FUTURE POLICY ON THE LAND LEASES, MR HU PROPOSED THAT:

* FOR HONG KONG ISLAND AND KOWLOON SOUTH OF BOUNDARY STREET

INCLUDING LAND SOLD BY THE GOVERNMENT AFTER THE CONCLUSION OF THE SINO-BRITISH AGREEMENT, IF THE LEASE IS VALID BEYOND 50 YEARS AFTER 1997, THE OWNER SHOULD CONTINUE TO ENJOY THE USE OF THE LAND AND PROPERTY UNTIL THE END OF THE LEASE.

* FOR HONG KONG ISLAND AND KOWLOON SOUTH OF BOUNDARY STREET, IF THE LEASE EXPIRES BEFORE 50 YEARS AFTER 1997, AND FOR THE NEW TERRITORIES NORTH OF BOUNDARY STREET, WHERE LEASES EXPIRE IN 1997, THEY SHOULD ALL BE EXTENDED UP TO 2047 UPON EXPIRY OF LEASES ON PAYMENT OF A NOMINAL LAND TAX SIMILAR TO THE PROVISIONS OF THE CROWN LEASES ORDINANCE 1973 WHICH REQUIRED PAYMENT OF THREE PER CENT PER ANNUM OF THE RATEABLE VALUE OF THE PREMISES AT THE DATE OF RENEWAL.

*FOR ANY LAND IN NEW TERRITORIES SOLD BY THE GOVERNMENT

AFTER THE CONCLUSION OF THE SINO-BRITISH AGREEMENT, THE LEASE SHOULD BE UP TO 2047.

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