TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 94

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than HK$20 million.

Purchase of land in Shenzhen by Trafalgar Housing

5.

According to a press report, Trafalgar Housing Ltd has purchased a

40,000 sq. ft. site in Shenzhen for about HK$20 million. The purchase

represents a departure from normal practice in that Trafalgar has been able

to acquire the land for itself alone, without the partnership of the

Chinese authorities. The press report indicated that the land will be used to construct a commercial/residential complex and was sold on the

basis of a 30-year lease in the first instance, renewable for a further

20 years.

6.

Although Trafalgar's land deal seems to have broken former political

limits regarding the lease of land to overseas individuals, Guangdong's

population has been firmly warned against the spread of private land

exchanges. A provincial radio report on 10 March said that the

authorities in Guangzhou had had to put out a circular reiterating the

31-year-old law prohibiting such transactions. The circular reminded

people that it is illegal for any individual or group "to privately occupy, transfer, change, rent, sell in disguise or seize land". The

radio broadcast said that various organisations such as mines, factories,

financial and economic enterprises had illegally conducted land deals

with rural communes and brigades. The radio did not say how many deals

had been made or how much land had changed hands.

Guangdong-Macau electricity supplies agreement

7.

Negotiations which began in April 1980 for the supply of electricity to Macau were concluded in an agreement reached on 13 March. The agreement is expected to be signed shortly with supplies to Macau starting as early as July 1982. The negotiations turned on the question of Macau's demand for electricity and the difficulty of the Chinese in producing sufficient power. The solution apparently entails the Macau Government lending to Guangdong some HK$200 million, interest free, to build a new power station in Zhuhai, The initial capacity of this plant will be 42 megawatts -

almost double that of the existing power station on Coloane Island.

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