TNAG-0856-FCO40-1066-Construction-of-underground-railway-system-in-Hong-Kong-1979 — Page 29

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AUGUSTINE S. K. CHUNG ROOM 1115, HANG LUNG CENTRE, 11th FLOOR, PATERSON STREET, HONG KONG. TEL: 5-771862-3

number of such owners, I must say that

Mr M. Philips and his colleagues have gone through a number of impossible missions. NOW, I do not know how they can achieve further with the remaining 45 units with the background described above, especially when the law has not made provision for a fair compensation

relating to the most extraordinary land boom generally in Tsuen Wan as well as other parts of the Colony. The interest rate, though risen to 15.5%, is now evidently inadequate in the

circumstances. The longer the delay, the worse

is the deadlock as has been explained in

paragraph 2 above. I understand that some of

them were eventually convinced into accepting public housing for fear of being thrown into

the streets. Some are still considering and

some have become more inclined after the

bloodshed incident of 2nd September, 1979:

Nevertheless, the fact remains that whatever

compensation they can now receive under the

law is absolutely insufficient for them to

purchase flats or shops of equivalent value in Tsuen Wan or other nearby districts in the New Territories:

5. It has been suggested that the owners do not have to

put the monetary compensation back to real estate but in other form of investment such as fixed deposit in banks or finance companies whereby they may receive an annual income of 15.5%. It appears that such interest is currently better than any rental receivable from

investment in real estate. However, deposit in banks

does not yield capital increase but interest. When

money value has at all time been going down, rapid or gradual, it is wise to invest in real estate which has a

to be Cont'd/P.15