TNAG-0806-FCO40-1011-Policy-of-Government-of-Hong-Kong-on-land-in-the-New-Territo-1979 — Page 96

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i

that in future the acquisition of land should rely on

statutory resumption procedure, but that the Crown Lands

Resumption Ordinance should be so amended that non-contractual

expectations would not be discounted in assessing the

open market value of land for compensation purposes. This proposal has considerable superficial attractions, but, without any expectations of exchanges, the open

market value of private agricultural land would be limited

to its existing user. If a system of exchanges were run

in parallel, a market value based on these expectations

would be established, but its level would still be

largely dependent on Government's performance in making

land available for development and in the nature of the

exchange system. The Working Group agreed that such a

system would at least for some time produce uncertainties

of value, which might well act as a deterrent to the

early surrender of private lands required. It therefore

recommends against adoption of the Institution's proposals in the short term; in the long term they may be worth e reconsidering, when the effect of the new terms proposed by the Working Group (if adopted) has become apparent in

the land market.

18.