TNAG-1332-FCO40-1762-Future-of-Hong-Kong-White-Paper-on-the-Joint-Declaration-1984 — Page 27

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6. THE AMOUNT OF NEW LAND WHICH MAY BE SOLD OR GRANTED BY THE HONG

KONG GOVERNMENT WILL BE LIMITED TO 50 HECTARES A YEAR, WHICH SHOULD

MEET NORMAL REQUREMENTS. THERE IS PROVISION FOR THE LIMIT TO BE

INCREASED TO MEET MARKET DEMAND. THE LIMIT DOES NOT INCLUDE LAND

USED BY THE HONG KONG GOVERNMENT FOR PUBLIC PURPOSES (E.G. ROADS, GOVERNMENT BUILDINGS, PUBLIC PARKS, ETC.): NOR DOES IT INCLUDE LAND ALLOCATED OR GRANTED TO THE HOUSING AUTHORITY FOR THE

CONSTRUCTION OF PUBLIC RENTAL HOUSING.

7. MODIFICATIONS OF LEASE CONDITIONS WILL CONTINUE TO BE DEALT

WITH BY THE HONG KONG GOVERNMENT IN ACCORDANCE WITH EXISTING

PRACTICE.

8. 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 FUTURE SAR

GOVERNMENT. BOTH SHARES WILL BE USED EXCLUSIVELY FOR LAND DEVEL-

OPMENT AND PUBLIC WORKS IN HONG KONG.

9. A LAND COMMISSION, CONSISTING OF AN EQUAL NUMBER OF OFFICIALS

APPOINTED BY THE BRITISH AND CHINESE GOVERNMENTS, WILL BE SET UP.

THIS COMMISSION WILL MONITOR THE IMPLEMENTATION OF THE PROVISIONS

IN THIS ANNEX AND WILL CONSIDER PROPOSALS FOR INCREASING THE LIMIT

ON LAND SALES AND FOR DRAWING ON THE SAR GOVERNMENT 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.

ENDS.

YOUDE

LIMITED

HD/HKD HD/FED MR BOYD

9

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COPIES TO:

SIR P CRADOCK (2)

MR BICKFORD,

MR FITFOOT,

LEGAL ADVISERS

SIR E YOUDE, K195A