TNAG-1617-FCO40-2225-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 316

For information (18.11.86)

CONFIDENTIAL

NOTE FOR EXECUTIVE COUNCIL

ANNEX B

XCCI (86)55 Copy No...

QUEEN'S GARDENS/TREGUNTER

DISPUTE WITH HONG KONG LAND

On 29 July 1986 Members considered Information

Note

XCCI (86) 35 (a copy of which is annexed) which gave a situation report on the dispute with Hong Kong Land. The purpose of this paper is

to bring Members up to date, and to report on recent approaches from Hong Kong Land suggesting a settlement.

Legal proceedings

2

The appeal to

the Privy Council is set down for

hearing on 24 November 1986.

Approaches by HK Land

3

In the last three months HK Land has twice approached the Government suggesting a possible settlement of the case, as follows:

(a)

(b)

Following a meeting with the Secretary for Lands and Works on 19 August, Hong kong Land wrote saying that in its view the Queen's Gardens site was worth about $207 million, and this was equivalent to the value of some 52 of the Tregunter flats now occupied by the Government. Hong Kong Land suggested that it would be prepared to offer rather more than 52 flats in the interests of reaching an amicable settlement. This tentative offer was So far below the Government's valuation of the Queen's Gardens site ($310 million) that it was rejected as a basis for further discussions towards a possible settlement,

Following a further approach from Hong Kong Land, the Secretary for Lands and Works again met with representatives of the Company. He explained that the terms of

of an settlement would need to be

offer for

CONFIDENTIAL