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supported by consultants, against an impossible deadline. Propositions are often put forward in package form, eg the provision of a deepwater harbour in exchange for a certain acreage of freehold land. Such propositions can be a bad bargain since the real development value of the land may well be considerably larger than the cost of the facility offered.
General Background Considerations
4. In considering proposals put to them in the field of property development Governments will of course have regard first and foremost to the implications of such proposals in both the long and the short-term in relation to the objectives of their own development plans and policies as a whole; they will in particular wish to satisfy themselves that any concessions sought by developers are appropriate to the economic benefits likely to result from their proposals. Governments will also wish to consider whether those proposals are likely to bring consequences in their train, such as an influx of immigrants either for permanent settlement or for short-term employment, which might give rise in due course to political or social problems. Apart from these general considerations, however, experience to date has shown that some or all of the specific problems dealt with in the succeeding paragraphs are likely to arise whenever Governments enter into negotiations with property developers and other commercial organisations. Although those Governments who already have experience of such negotiations will be aware of the principles at stake, it may be helpful to those which have not yet encountered these problems to have the following general guidance on this complex matter.
Technical Assistance
5. Should territories consider that they need specialist advice in relation to the conduct of particular negotiations, for example on the merits or demerits of specific proposals or various types of development, the Ministry of Overseas Development in consultation with Foreign and Commonwealth Office will always be prepared to consider whether such advice can practicably be provided on technical assistance terms.
General
6. Government must retain its constitutional freedom of action; in other words Governmental powers, functions and responsibilities should not in general be surrendered to developers; if the latter undertake such functions they should do so as Government's agents. Further, although developers may reasonably expect to be exempted from certain detailed governmental controls (eg detailed planning application and building regulatory procedures), it is important that agreements with developers should be so drawn as to retain rights of intervention, in the last resort for Government.
7.
Government must also derive a fair financial share (either directly or indirectly) from the ultimate prosperity of the project and must reserve to itself the means for ensuring the fulfilment of the developers promises and for regulating the social and other consequences which can often not be foreseen at the outset.
8.
Much misunderstanding and difficulty will be avoided if governments give ample time to the preliminary consideration of the provisions they wish to see included in agreements before they give to commercial organisations sweeping promises from which they may subsequently find it difficult to disentangle themselves. Agreements should stipulate that any change in the ownership of the company
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