TNAG-1642-FCO40-2289-Public-finance-in-Hong-Kong-Supplementary-Appropriation-(198-1987 — Page 228

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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Date:

Time:

Reporter:

28.11.86

8.30

PMS

12.30

the files on this, show that this was a very important factor at that particular time.

MR HO:

been said in the report.

SLW:

In other words, you agree with what has

I have read both the Audit Report and the

longer Report from which this is a summary and the Audit Report is,

I believe, very fair and accurate.

MR HO:

And perhaps the important thing is on the

12 particular period of time that you have to make such a decision, that

policy need not be followed because of that division.

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SLW:

I think I should say that throughout the

16 whole of its history, during its formation and ever since, this was

an extremely controversial policy. This is reflected in the Executive

Council paper from which is quoted in the Report. It shows that this

was considered, I mean, that, the policy when it was introduced

shows that at the time it was considered that this was a difficult

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policy. It introduced very difficult issues of possible inequities

to developers in terms of the demands which might be made by the

Government on them at the time, so it has been a very controversial

24 policy and it has been on many occasions in fact questioned by 25 developers because it imposes upon them obligations in the public

interest for which they are required to pay and from which they derive

no other benefit than the actual approval of the modification.

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It is

28 quite clear that the Secretary at the time considered that in the

circumstances of a very major development of this kind which this 30 policy was not really intended. I don't believe he was so justified 31 in the terms of the EXCO paper but it is quite clear that that was his 32 view.

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MR HO:

Mr Chairman, I am not trying to dispute the

35 policy itself here of course, but I think I must bring out that this 36 policy has been applied to other similar developments, large in size,

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