TNAG-0857-FCO40-1067-Legislation-for-piers-and-harbours-in-Hong-Kong-1979 — Page 17

0.3. 84

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5

XCR(79)175

The principle of the system is that before granting new land to a public utility, Government ensures that its needs could not be met within the company's existing holdings, however acquired. But this system has never been used, nor is there any evidence that it was ever intended to be used, to control the use by the company of land which has been shown to be no longer needed for the public utility undertaking.

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IL No 4098 and the Aberdeen lot are examples of the working of the policy. As stated above, IL No 4098 is included in the list of lots which, although unrestricted as to use and as regards alienation, was included in the schedule of the undertaking given by the Hong Kong and China Gas Company Limited as a lot for which the company undertook to seek Government's authority prior to disposal. But it cannot be acceptably expanded to the required capacity, and gas holders are out of place in Kennedy Town. Moreover, the Hong Kong and China Gas Company has itself undertaken not to distribute the profits from its sale or redevelopment, but to put such funds back into the development of the utility undertaking.

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In the present case, the Gas Company itself originally suggested an exchange of land, but this was not pursued, as Govern- ment was having considerable difficulty in finding a suitable site in the Aberdeen area, and such an arrangement would have resulted in Government having to pay cash in respect of the difference between the value of the land surrendered and the new site, bearing in mind the relative values of the sites and the considerable formation expenses of the new site.

Recommendation

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For the reasons contained in the text of this memorandum, it is recommended that the site at Aberdeen delineated red on the plan at Annex B should be granted by private treaty to the Hong Kong and China Gas Company Limited on the basic terms outlined in para- graph 3 above.

Public Relations

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As recommended in paragraph 19 of memorandum XCR(79)113, it is proposed to give only low key publicity to this grant if approved. Positive efforts will also be made to reassure residents of Kennedy Town that there is no fire safety hazard attached to the continued existence of the gasholder there.

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