Mr Stone, HKD
CONFIDENTIAL
From:
Paul Fifoot
Legal Advisers
Date:
31 October 1990
CC
Mr Burns
Mr Paul, HKD
Ms Major, HKD Mr Furness, HKD
PADS: RUN DOWN OF THE RESERVES: SARG LAND FUND: YOUR MINUTE OF 31 OCTOBER
1.
...
Apart from JD 211, "Premium income
shall .. be shared equally between the British Hong Kong Government and the future Hong Kong Special Administration Region Government", there is no specific indication as to the use of the SARG proportion after 1997. As you correctly point out, JD 213 and 222 appear to be directed to the possible use of the Fund before 30 June 1997. I do not think one can draw any conclusion from JD 213 that, after 1997, the SARG share will only be devoted to land development and public works.
2. Nor do I think that it can be assumed that the SARG'S share would simply become part of its general reserves. I suspect that the Chinese would argue from JD 222 and generally from their constituent power in relation to the SARG, that they would have a right to decide in what way the share should be used for the benefit of the SARG. Whether they would actually wish to take such a decision, or whether they would consider that the post-1997 LegCo should determine the question, is another matter. There may well have been discussion during the negotiations as to the ultimate destination of the fund. We should look at the records.
of
Paul Fifoot
5PFAAU
CONFIDENTIAL
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