TNAG-0809-FCO40-1014-Legislation-for-Crown-lands-in-Hong-Kong-1978 — Page 202

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For discussion

Hkk 365/2

RECEIVED A REGISTRY/MO. 51. 10 JUL1978

on 11th July 1978

DESK

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XCC(78)59

Copy-No...3.3 of 80 Page 1

COUNCIL

MEMORANDUM FOR EXECUTIVE COUNCIL

AUCTION SALES OF CROWN LAND WITH PAYMENT OF PREMIA BY INSTALMENTS

Introduction

The minutes of the Executive Council meeting of

11th April 1978 read as follows:

[1 Sales of Crown Land

Mr Q. W. Lee said that the system whereby payment for Crown land could be made in ten annual instalments tended to encourage speculation in present circumstances and should be reconsidered. The Financial Secretary said that the question was under active consideration.

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2

This memorandum examines the instalment system for premium on valuable non-industrial sites and suggests how the system might be altered to discourage speculation.

The Present System

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The practice of permitting the payment of premium for valuable non-industrial sites by instalments over ten years was first introduced in 1969, after KIL 9172, the lot occupied by the Sheraton Hotel, was withdrawn from auction for lack of bids. In September 1970, this practice, with minor variations to the terms of payment, was made applicable to all sites in the Central area where the upset price was $10 million or more. On 24th December 1974, the Governor in Council ordered that, subject to various safeguards, the system of instalments slightly varied, should be applied to premia for sales, and to modifications of sites to be developed for residential or commercial/residential purposes, where the value of the sale or modification exceeded $10 million.

C.S. 166

CONFIDENTIAL

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