TNAG-1039-FCO40-1289-Future-of-Hong-Kong-1981 — Page 141

Na kukuat, igenne

XCC(80)67

(b)

(c)

機密

Fage 8

that this study must be expanded to include the Ha Tsuen and Lau Fau Shan areas;

that the Government is not at this stage committed to permit the company to proceed with the development, but will take a view in principle on the matter in the light of the first two stages of the development studies, Government's own analysis of borrow areas, the Government staff resources involved, the prevailing circumstances after the first and second stages of the studies have been completed, and the call on the construction industry elsewhere in the Territory..

Financial and Staff Resources

25

As stated above, an adequate response can be made to the first and second stages of the development studies with only limited additional staff. There is, moreover, no direct Government financial expenditure envisaged at this stage. The consequent staff and financial commitments of accepting the Company's proposals are, however, likely to be substantial, but probably not as great as those which would be required for developing another area of similar size elsewhere. Staff would almost certainly.be required to deal with existing development applications and other proposals which this major development would stimulate in the area..

Public Relations and Publicity

26

The Company's proposals and the China Resources Company's involvement in them are already well known both locally in Yuen Long and generally through announcements in media, Government's favourable response to them has generally been taken for granted, and it is unlikely to surprise anybody that Government is cooperating with the developers in the studies. There will, however, continue to be considerable local and public interest in the scheme. Local landowners will undoubtedly be stimulated into seeking similar cooperation from Government, and there is likely to be some speculation as to the political significance of the proposals.

4

27

There is no need for a formal announcement now, but Govern- ment should be willing to answer any questions put to it on this development, laying emphasis where necessary on the political aspects of the China Resources Company's involvement.

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