TNAG-1373-FCO40-1819-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 265

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(a)

(b)

that on the clear understanding that there was no commitment on the part of Council, approval should be given to the Secretary for the New Territories to pursue the proposals with the San Tin Development and Management Company Limited, having regard to the Company's objectives and

that a further memorandum should be submitted to this Council once the details of the scheme, including an appraisal of the financial and resource implications, had been established and assessed.

Such a development will help the village landowners to realise, i.e. to make a profit on, some of the value of their land but because the development is not intensive i.e. is not going to be multi-storey development, obviously the profits will not be as much as they would be in a new town. However, a smaller premium will have to be paid, taking into account the fact that only low-rise development would be permitted and that a considerable proportion of the land will remain under agriculture. This illustrates why the resumption value of land in places like San Tin is far less than $59 per sq.ft. which land in new town layout areas is priced at when the Government resumes it.

However, if and when it is decided in future to develop San Tin more intensively, the landowners, including those who have shares in any development corporation, will be able to have a second opportunity to pay a higher premium to develop their agricultural land and make a further development profit.

6.

I emphasized that the Government would scrutinize closely the Constitution (2) of

程 the Company to ensure that in consolidating land

holdings and in such actions as arranging for the construction of housing estates and sale of housing would be conducted in a manner fair to all share holders. To this end the Registrar General (N.T.Section) (新界政務司法律顧問(註冊總署新思科) is going to U.K. later in March and he will study the Constitution of similar development agencies in order to guide him and the Company in the implementation of this scheme.

7.

meeting :-

Two further points were raised during the

(i)

the possibility of resumption on which I stated that if the Secretary for the New Territories sees that a strong majority of the landowners are in favour of redevelopment under the proposed plans and that the plans for developing San Tin are in the

.../ public interest

UL.