TNAG-1208-FCO40-1511-Compulsory-acquisition-of-land-in-the-Kowloon-Walled-City-1982 — Page 32

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1.

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You should be aware of a proposal by the Hong Kong Government that they enact new legislation that would enable them to compulsorily acquire land in the Kowloon Walled City.

361122.

HKH 361

© 1981

Since December 1981, as a result of a land transaction in the Kowloon Walled City, the Hong Kong Government have been considering whether they need new legislation to allow the compulsory acquisition of prescribed land (ie, land to which the inhabitants have rights not through legal title but as a result of having lived there for more than 60 years – the 'limitation' period under Cap. 347). In such cases, where land is required by the Government for public purposes, compensation cannot be paid under the Crown Land Resumption Ordinance.

3.

It is not clear to what extent the legislation is required elsewhere in Hong Kong. In the Walled City, however, it is necessary because the Hong Kong Government has never occupied the land nor granted leases there. Hong Kong have considered two possible approaches: to abolish the 'limitation period' of 60 years (which would mean paying no compensation to the occupants if the land was resumed), or to draft new legislation allowing for compulsory acquisition (with compensation) in such cases. In July, Hong Kong told us that they favoured the latter approach, which assumes that the Crown has full sovereignty over the land in question.

4.

Mr Burrows, when first consulted, was not happy with Hong Kong's proposed course of action. His preliminary advice was that Hong Kong were confusing domestic and international law, and he disputed the assertion that the Crown has 'full sovereignty' over the New Territories. Consequently, we let Hong Kong know that we wished to consider more carefully the legal issues involved, and asked them not to take any action in the meantime.

5.

On 8 September, Hong Kong confirmed that they had not yet drafted the proposed legislation, but said that they wished now to proceed, on the basis of drafting instructions that avoided specific reference to the Walled City. They also pointed out that, if the political climate was judged to be too sensitive, they could refrain from making any acquisition orders in respect of the Walled City.

CODE 18-77

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