TNAG-1373-FCO40-1819-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 185

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remain responsible for the adminstration of Hong Kong until 30 June 1997, provides an opportunity to remedy the problem. As the area around the Walled City has been redeveloped the Government also feel the time is fast approaching when it will no longer be possible to argue that other clearance and resettlement problems have a higher priority A high level Hong Kong

Kong Government working group has concluded that only complete clearance and redevelopment will solve the Walled City's problems. The group proposes:

(a)

(b)

(c)

•

a fact-finding survey in consultation with the District Board and Resident's Association;

subject to the agreement of the residents, implementation of a pilot scheme to provide a proper metered water supply;

building on the improved relationship with the residents arising from the implementation of the water supply scheme, agreement with residents on a properly planned and phased clearance programme involving "decanting" the population into temporary housing areas, followed by permanent re-housing, not necessarily in the Walled City.

4.

The proposal to clear the Walled City will cause an outcry from local inhabitants supported by the criminal elements who profit

from the status quo: they will almost certainly try to enlist Chinese support against the redevelopment plans. With this in mind

we intend to try to enlist prior Chinese support. Hong Kong proposed that we should simply inform the Chinese of our intentions

in the margins of the next meeting of the Joint Liaison Group. We are concerned however that if we do this without the preparation the Chinese side will simply take note. We have therefore proposed to

Hong Kong that as a first step the Hong Kong Political Adviser

should talk to Qiao Zonghuai of the NCNA to seek to persuade the

Chinese to express their support publicly for Hong Kong's plans.

CONFIDENTIAL