XN000022-1993-07-12 — Page 3

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MONDAY, JULY 12, 1993

"THE ESTIMATED REVENUE FROM LEASE MODIFICATIONS AND EXCHANGES IS $9.8 BILLION WHICH IS ABOUT DOUBLE OF THAT LAST YEAR, DUE TO A NUMBER OF VERY LARGE LEASE MODIFICATIONS CURRENTLY BEING NEGOTIATED.

"IT WILL BE SEEN THAT REVENUE FROM BOTH SOURCES IS ESTIMATED TO BE AROUND $20 BILLION, HE SAID.

MR POPE SAID THE LEASES ALSO PROVIDED A USEFUL TOOL то ENABLE THE GOVERNMENT TO ADMINISTER LAND,

HAVE BEEN INCLUDED IN LEASES TO BE DESIRABLE AT THE

"OVER THE YEARS, COVENANTS RESTRICTING DEVELOPMENT TO THAT CONSIDERED TIME OF SALE.

"TIMES AND POLICIES CHANGE AND IN SOME AREAS IT IS NOW POSSIBLE TO PERMIT MORE INTENSIVE DEVELOPMENT THAN THAT STATED IN THE LEASE.

IN THESE CASES, THE GOVERNMENT VARIES THE RESTRICTED COVENANTS IN THE LEASE TO PERMIT DEVELOPMENT TO PRESENT-DAY STANDARDS.

A PREMIUM IS PAYABLE FOR THIS AND IS ASSESSED ON DIFFERENCE BETWEEN THE LAND VALUE UNDER THE RESTRICTED LEASE AND AFTER LEASE MODIFICATION, HE SAID.

THE THAT

LAND

OF THE

MR POPE NOTED THAT THE PRAGMATIC APPROACH OF THE COMMISSION HAD ENABLED HONG KONG TO PROSPER SINCE THE SIGNING JOINT DECLARATION IN 1985 AND HAD GIVEN LAND ADMINISTRATION A GOOD BASE TO ENTER THE YEAR 2,000.

"LAND DISPOSAL IN HONG KONG IS CONTROLLED UNDER ANNEX III OF THE JOINT DECLARATION TO 50 HECTARES PER YEAR, UNLESS OTHERWISE AGREED BY THE SINO-BRITISH LAND COMMISSION."

IN FACT, THE AVERAGE OVER THE PAST NINE YEARS HAS BEEN 104 HECTARES, DOUBLE THAT OF THE 50 HECTARES LIMIT.

THE LAND DISPOSAL PROGRAMME AGREED BY THE LAND COMMISSION THIS YEAR (93/94) IS 127.8 HECTARES, HE SAID.

MR POPE POINTED OUT THAT THE LEASEHOLD SYSTEM IN HONG KONG HAD MANY SIMILARITIES TO THE LAND TENURE SYSTEM USED IN CHINA.

IN

"LAND IN SHANGHAI, GUANGDONG AND SHENZHEN IS SOLD FOR LEASE TERMS OF 50-70 YEARS WITH SIMILAR CONDITIONS OF SALE AS THOSE USED HONG KONG.

"MANY PROFESSIONAL SURVEYORS IN HONG KONG ADVISE THE PEOPLE'S REPUBLIC OF CHINA ON LAND MATTERS AND MY DEPARTMENT OFTEN EXCHANGE VISITS AND INFORMATION WITH DIFFERENT LAND ADMINISTRATION OFFICIALS FROM PROVINCES IN CHINA, HE SAID.

BUREAU

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