TNAG-0614-FCO40-762-Visit-by-delegation-from-Heung-Yee-Kuk-(Rural-Consultive-Cou-1977 — Page 156

CONFIDENTIAL

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KCK (1 623)

who probably now number only some 50,000. The new towns will be occupied by about 2 million people by the end of this decade. The interests of these new inhabitants and their representation must also be considered by the Hong Kong Government, partly because of the rapid increase in the value of land in the New Territories. Much of the land needed for development is owned by persons whom the Kuk consider they represent and this has given them a considerable economic incentive to play a more active part than hitherto. When land in the New Territories is acquired compulsorily the original owner may either be compensated directly presently at a rate of about £90,000 an acre or given the right to take

up land in the new towns. This latter course can be much more profitable (land values in the new towns may be as much as £500,000 an acre in the 1980s) but for various technical reasons it sometimes takes up to eight years before dispossessed owners can take up the replacement land. (During this time, of course, it will usually have gained immensely in value)

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The Chairman and two Vice Chairmen of the Kuk were to have met the Leader of the Opposition (Mrs Thatcher) during her visit to Hong Kong on 16-18 April. The Hong Kong Government have been asked for a report on their meeting.

5. Mr Robert Parry MP maintains a fairly close relationship with the Kuk. Mr Parry's visits to Hong Kong in 1973 and August- September last year were sponsored by the Kuk. Mr Parry has since championed the Kuk's interests in Parliament by tabling a large number of Parliamentary Questions on New Territories' matters. (The relevant extracts from Hansard are attached.) Mr Parry is also known to be trying to arrange for the Kuk's delegation to meet a number of Labour MPs interested in Hong Kong's affairs and for a group of such MPs to visit Hong Kong later this year at the invitation of the Kuk. Mr Parry has a large number of Hong Kong Chinese in his constituency (Liverpool, Scotland Exchange), a number of whom originate from the New Territories.

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CONFIDENTIAL