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We know much less than I would wish about the reasons behind the involvement of China Resources in this land deal. They must have invested at least HK$500 million (about E50 million) to buy their shares, although there could be a deferred payment arrangement since they bought most from those who would like to be thought of as 'friends' of China. Such evidence as we have tends to suggest that China Resources are in it purely to make money. They may not even have considered the political implications. These are considerable. Even if permission is granted to develop the area, it will take several years to create building land out of the existing ponds and marsh. Nothing much could show above the surface until the mid-1980s.
By then, if they have thought things through, they should realise that buyers will take a close look at how long they can expect to enjoy their new property before spending large sums of money on it.
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All this could have helpful implications. It could also, of course, produce problems. An official Chinese organistation owning and trying to develop a large tract of land in the New Territories is a novel concept to put it mildly. It is likely to mean political pressure on what would normally be ordinary planning decisions. It may also create problems of control. We are now looking closely at all these aspects.
bett but within,
leves
CC
K
(D C Wilson)
RJT McLaren Esq
Far Eastern Department
TJ B George Esq Peking
PJ Weston Esq
Washington
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