TNAG-0669-FCO40-818-Policy-on-housing-and-resettlement-in-Hong-Kong-1977 — Page 99

C.S. 166

CONFIDENTIAL

機密

- 3

XCC(76)85

with the aim of giving the Authority a sound capital base founded on a permanent capital stock rather than largely on interest-bearing debt.

7

If this proposal is accepted the Government's investment in

the Authority would consist of the following:

8

(a)

(b)

(c)

the value of the borrowings from the Development Loan Fund up to 31st March 1973, amounting to about $250 million;

the value of the borrowings from the Development Loan Fund between 1st April 1973 and 31st March ... 1976, amounting to about $50 million; and

the value of the resettlement and Government low- cost housing estates (including land) vested in the Authority on 1st April 1973 and of the new estates financed through the Public Works Programme and vested in the Authority since 1st April 1973.

An exact valuation in respect of paragraph 7(c) above will be agreed upon with the Authority and will be submitted to the Finance Committee of the Legislative Council for approval. But it is envisaged, as regards building costs, that:

(a)

(b)

(c)

the Marks I-III domestic resettlement blocks will be given a nil value, as plans in any case exist for their eventual replacement by the Authority;

the remaining resettlement blocks and the Government low-cost housing estates will be taken at their de- preciated value at 1st April 1973;

the new estates financed through the Public Works Programme and vested in the Authority since 1st April 1973 will be taken at actual cost.

As regards land, it is envisaged that land occupied by the resettlement estates will be arbitrarily valued at $1.5 million per hectare (roughly $14 a square foot) and that land occupied by the Government low-cost housing estates will be valued on the basis of the actual land charge included in the rent calculations at the time of their construction. As for the new estates built by the Public Works Department and financed through the Public Works Programme, there are various alternative methods of putting a value on the land and these are being examined.

i

CONFIDENTIAL

機密