TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 155

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76

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

CONFIDENTIAL

布政司署 BY BAG 香港下亞璽畢道

1

來函檔號 YOUR REF.:

173

HKK !!

2 1 JUL 1978

*** OUR REF: SCR 3/1916/58 III

ROENTE

Criginal at: /kk 173/1.

This Copy for:

Information only / Action on Para(s)

TAV

INDEX

OFFICER

PA

HOT ST

RE

་་་་

11 July 1978

W E. QUANTRILL ESQ

HONG KONG & GENERAL DEPARTMENT O

FCO

Dear Bill,

INDEX

2 1 JUL 1978

OFSICH

H:

RY

CHINESE INVESTMENT IN THE MASS TRANSIT RATLWAY

22077.

ทํา.

Sae (→

You will already have seen press accounts of the agreement between the Mass Transit Railway and a local consortium, including the C P G-owned Kiu Kwong Investments Limited, for the development of a residential and commercial site above the new depot at Tsuen Wan. The agreement was signed on 7 June and useful background to the project is given in the South China Morning Post story of 10 June (copy attached).

2.

You may be interested in the following details of the extent of Chinese involvement in the project given to David Wilson in commercial confidence (please respect) by Dr Ridley of the M T R:

(i) the Sun Company, which is developing the

site, has a guarantee signed on behalf of the Bank of China. The commercial arrangement is for a sum of HK$135 million to be handed over now to the M T R and a similar sum to be paid in regular instalments over the next five years;

(ii) the guarantee was given by the solicitors, Wu and Wu, acting on behalf of the Bank of China by virtue of a power of attorney witnessed in the British Embassy in Peking in 1974; ·

(iii) the housing to be developed over the Tsuen Wan

depot site will be for sale. The sales should be made in about 1983. If the sales go well, there will then be no residual responsibility left for the bank;

CONFIDENTIAL

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