TNAG-1139-FCO40-1419-Quarterly-progress-reports-on-Hong-Kong-1982 — Page 216

機

CONFIDENTIAL

Subject

10. Hong Kong

Tramways

(CR 5/5591/73)

Purpose

To consider the continued operation of HKT services until the opening of the MTR Island Line.

Progress Made & Present Position

Next Quarter Targets

(a) ExCo has agreed in principle proposals (a) Finalise legislative

for

(i) amending legislation;

(ii) an agreement for the operation of the tramway until end 1986;

(iii) a land exchange of the Sharp Street depot site for a site adjacent to KPP54.

(b) Because of complications over a

previous agreement between KG and Realty Development Corporation for development at Sharp Street,

negotiations with KWG cannot continue until they provide

(i) a form of indemnity;

and

(ii) unqualified advice of leading

counsel supporting the strength of KWG's right to develop the site.

The form of indemnity has been provided, but KWG has not provided the legal opinion, pending the outcome of a Court hearing between them and RDC.

proposals.

(b) Finalise a tramways

agreement.

:

(c) Obtain clarification of

KMG's position re

rights to develop the Sharp Street Site,

and seek ExCo advice on whether or not to proceed with the land exchange.

i

CONFIDENTIAL

機密