CONFIDENTIAL
47
布政司署
香港下亞
畢道
本署檔號 OUR REF.. SCR 3/1916/58 III
*** Your Ref.:
W E Quantrill Esq
Hong Kong & General Department, FO
Bill,
CHINESE INVESTMENT IN HONG KONG
GOVERNMENT SECRETARIAT
LOWER ALBERT ROAD
HONG KONG
29 April, 1978
A stagy as
IN Thompson o...
Акко
INO K
No
12.575
1 7 MAY 1978
OFFICER
PA
• R
diq. Teken
I have been trying to put together a comprehensive list of CPG investment projects in Hong Kong where the Hong Kong Government has been involved. Ideally, it would be useful to have a picture of all Chinese investment. Unfortunately this is impossible since much of the property owned by Chinese organisations is acquired through the private sector and it is usually not possible to distinguish between CPG-controlled investment and other local investors.
2.
So far there have been five major projects involving the CPG where the Government has provided land by Private Treaty Grant (i.e. without a public auction) since 1974. I am attaching a list of these. Making land available in this way is exceptional and each case has to go to the Executive Council for approval. - Generally CPG- controlled companies are treated like any other company and proposals which they make are judged in the light of such factors as policy on special industries and possible alternative uses for the land. Normally, no additional concessions are made on the premium nor on the standard conditions of such grants. When the land is in the New Territories (as in all the five cases in question), the lease is for the usual period of the "residue of 99 years (less the last three days thereof) commencing from 1 July 1898".
3.
Additional concessions were, however, made to China Resources for two oil storage projects (A & B of the list). The premiums were fixed at an especially low rate (HK$10 per square foot) and it was agreed that they could be paid by 20 annual instalments with 5% p.a. interest, rather than the normal 10 instalments with 10% interest. A number of standard clauses (e.g. on resumption, re-entry, non-assignment) were also omitted at Chinese request. (In the case of the Tsing Yi storage depot, a separate written assurance was given by China Resources that no reassignment would take place.) The reason for these
CONFIDENTIAL
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