55. Leases which expire before 30 June 1997 (mainly New Territories leases and 75 year non-renewable leases in the urban area) may be extended without premium until 2047. A rent of 3 per cent of current rateable value will be charged from the date of extension, except in the case of village land held by indigenous villagers who will continue to pay a nominal rent.
56. New leases running until 2047 may be issued by the Hong Kong Govelament in the period up to 30 June 1997. These will continue to be issued under the existing system of land disposal (i.e. by public auction, tender or private treaty grant). A premium will be payable and a nominal rent will be charged up to 30 June 1997. After that date, no additional premium will be payable but the rent will increase to 3 per cent of current rateable value.
57. The concept of charging a rent on the basis of rateable values follows that used since 1973 to fix rents on the renewal of leases. It has, however, been agreed that the rent will be based on current rateable values (i.e. a rent which will change as rateable values change) rather than based, as at present, on a fixed reference point (i.e. a rent which is based on the rateable value at the date of renewal and which remains unchanged for the whole term of the lease).
58. The amount of new land which may be granted by the Hong Kong Government will be limited to 50 hectares a year. The limit does not include land granted to the Housing Authority for the construction of public rental housing.
59. Modifications of lease conditions will continue to be dealt with by the Hong Kong Government in accordance with existing practice.
60. In recognition of the fact that leases which extend beyond June 1997 derive part of their value from the post-June 1997 portion of their term, the Annex provides for net premium income to be shared between the Hong Kong Government and the future SAR Government.
61. A Land Commission, consisting of an equal number of officials appointed by Her Majesty's Government and the Chinese Government, will be set up. This Commission will monitor the implementation of the pro- visions in this Annex and will consider proposals for increasing the limit on the amount of new land which may be granted and for drawing on the SAR Government's share of premium income. It will not, however, consider individual land cases, nor will it be involved in deciding who should be issued with new leases. The Commission will be dissolved on 30 June 1997.
Associated Exchange of Memoranda
62. The status after 30 June 1997 of persons who are now British Dependent Territories citizens, and related issues, are covered in two Memoranda to be formally exchanged between the British and Chinese Governments on the same day as the signature of the Joint Declaration. These Memoranda set out the respective positions of the two Governments.
63. Since Hong Kong will no longer be a British Dependent Territory after 30 June 1997, it will not be appropriate for those who are British Dependent Territories citizens by virtue of a connection with Hong Kong to
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