TNAG-1039-FCO40-1289-Future-of-Hong-Kong-1981 — Page 144

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Annex B

Letter from Woo, kwan, Lee & Lo.

Tin Shui Wai-

7th January 1980

Sub-section 1 of Section B and the remaining portion of Section B of Lot. No. 665 in DD No. 126

We act for a consortium comprising China Resources Company, Trafalgar Housing Ltd., Cheung Kong (Holdings) and certain other parties. Our clients have among themselves through various subsidiary and associate companies purchase or agreed to purchase a total of 591 out of 720 shares in Lun Tak Company, the trustees of which hold the captioned property on bare trust for the "shareholders" or members of Lun Tck Company. The aggregate percentage interest of our clients in Lun Tak Company is approximately 95.97%.

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It is the intention of our clients to effect a complete redevelopment of the property as a whole and our clients think it right that consultations should be initiated with Government at the very beginning so that due regard may be paid to Government policy affecting land use and the interest of the community at large as well as the business interest of our clients in the proposed redevelopment of the property. It is in this context that our clients have instructed us to write to you to outline their proposals regarding the property and to acquaint you with the practical steps which these proposals will involve as envisaged at this stage.

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The property is at present vested in the three trustees of Lun Tak Company who hold the property on their trust for the "shareholders" or members of the Lun Tak Company. As an essential step prior to the redevelopment of the property our clients will through proper legal process seek to free the property from the said trust so that the legal and beneficial interest in the property will be vested in one legal entity. In broad outline the method for which this could be achieved is for the property to be sold under the provisions of the Partition Ordinance (Chapter 352) and our clients will be taking action to put through the sale as aforesaid and to acquire the entire interest in the property as well as a clear title thereto on such sale.

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At the same time our clients feel that it would now be appropriate to apprise Government of their first proposals regarding the planning of the redevelopment so that due consideration can be given to Government's comments. As a

· matter of procedure our clients will seek to agree a master development plan for the entire property with Government and will develop the property in accordance with such plan. A possibility which our clients would be prepared to consider is the setting aside of a portion of the property for the purposes of Government home-ownership.or low cost housing scheme, and the undertaking of such home-ownership or low cost housing scheme by our clients jointly with Government.