TNAG-1372-FCO40-1818-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 46

CONFIDENTIAL

3.

on

The Sino-British Land Commission was established under

Annex III to

to the Joint Declaration to conduct consultations

implementation of that Annex. By the terms of the Annex all

existing leases running beyond 1997 are recognised by the

Chinese and

and all leases that expire before 30 June 1997 may be

extended to 2047 without payment of an additional premium,

although the holders will have to pay an annual rent equivalent to 3% of rateable value from 1 July 1997. By the

the terms of the

Ann ex between now and 1997 the Hong Kong Government may only

grant 50 hectares of n ew land a year. Any proposal to extend

this limit has to be decided upon by the Land Commission. ΑΠ

premium income from the sale of new land is to be divided, and

half to be set aside for the future SAR Government. If the

Hong Kong Government wishes to draw on this income it can put a

proposal to

to the Land Commission.

4.

up of

on

The British Side on the Land Commission is made

three Hong Kong Government officials led by Mr Todd, Hong Kong

Director of Lands. They have managed to establish a good rapport with the Chinese side and have made good progress

the detailed technical issues, including the format of lease

documentation. Agreement has also been reached on land

disposal programme for this year, which will exceed the 50

hectare limit.

5.

The first Government land sale since the entry into force

of the Joint Declaration took place on 24 September. The

prices reached confirm the steady strengthening of the market

since last year.

6.

So far the Chinese have made no attempts to use the

Commissi on to interfere in the day day administration of

land in Hong Kong. They are however clearly consulting outside

experts in the field in Hong Kong.

CONFIDENTIAL