TNAG-1332-FCO40-1762-Future-of-Hong-Kong-White-Paper-on-the-Joint-Declaration-1984 — Page 43

SECRET

4. NEW LEASES RUNNING UNTIL 2047 MAY BE GRANTED BY THE HONG

YONG GOVERNMENT, AS AT PRESENT A PREMIUM WILL BE CHARGED FOR THESE

LEASES, IN ADDITION TO AN ANNUAL RENT WHICH WILL BE SUBJECT

AFTER 1997 TO THE SAME PROVISIONS.

5. THE AMOUNT OF NEW LAND WHICH THE HONG KONG GOVERNMENT MAY

GRANT EACH YEAR WILL BE LIMITED TO 50 HECTARES. THIS LIMIT DOES

NOT INCLUDE LAND MADE AVAILABLE TO THE HONG KONG HOUSING AUTHORITY

FOR PUBLIC RENTAL HOUSING. THE ANNEX ALSO DESCRIBES HOW PREMIUM

INCOME FROM GOVERNMENT LAND TRANSACTIONS IS TO BE DIVIDED BETWEEN

THE HONG KONG GOVERNMENT AND THE FUTURE SPECIAL ADMINISTRATIVE REGION GOVERNMENT, AND HOW THAT INCOME IS TO BE USED.

6. THE ANNEX ALSO PROVIDES FOR THE ESTABLISHMENT OF A LAND

COMMISSION TO BE COMPOSED OF AN EQUAL NUMBER OF OFFICIALS DESIGNATED

BY THE BRITISH AND CHINESE GOVERNMENTS. ITS MAIN FUNCTIONS WILL BE THE MONITORING OF HOW MUCH NEW LAND IS BEING GRANTED, THE APPROVAL OF INCREASES IN THE LIMITS AGREED AND THE EXAMINATION

OF PROPOSALS PUT FORWARD BY THE HONG KONG GOVERNMENT FOR

DRAWING ON THE SPECIAL ADMINISTRATIVE REGION GOVERNMENT'S SHARE OF PREMIUM FOR THE FINANCING OF PUBLIC WORKS IN HONG KONG.

ENDS

EVANS

LIMITED

HD/HKD HD/FED MR BOYD

g

SECRET

COPIES TO:

SIR P CRADOCK (2)

MR BICKFORD,

MR FITFOOT,

LEGAL ADVISERS

SIR E YOUDE, K195A