TNAG-0806-FCO40-1011-Policy-of-Government-of-Hong-Kong-on-land-in-the-New-Territo-1979 — Page 79

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exchange system, and could be justified, albeit in

somewhat indefinite terms, from a number of points of

view. The Working Group recognised, however, that the

acceptability of any unit rate between these limits

would depend on the system by which it was to be updated

and the nature of the package, including the exchange

offer, in which it was offered.

THE EXCHANGE OPTION, THE PROPO SED PACKAGE OFFER AND THEIR IMPLICATIONS

5.1

As has been stated above, the difficulties

presently being experienced derive chiefly from the

unattractiveness of the cash compensation alternative

and the Government's failure to provide new building land

for exchanges within a reasonable time of the creation

of exchange entitlements. With its present backlog, the

Government would prefer to do away with the exchange

option altogether but, as mentioned in paragraph 3.1.6

above, this would be unacceptable to those affected.

Working Group considered, however, that, in the context

of a higher cash offer, a modified exchange entitlement

would probably be generally acceptable. Various

approaches and rates were considered and discussed, and

the final formula for the recommended package, which

was agreed by the whole Working Group, is as follows :

The

/5.1.1