TNAG-2494-FCO40-3626-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1992 — Page 83

7.

1

C

===

Resources and priorities:

in resources

Lands

Under either scenario, where по new land ΟΙ only reduced quantities of new land could be processed, more staff

and the Buildings

Department and other departments

other departments involved could be directed towards dealing with modifications or/and

matter a

exchanges as

processing new land sales),

of

priority (instead

of

8.

Assessment:

It is extremely difficult to

to assess the extent to which demand for development land assuming this would continue unabated could be adequately met

through modifications and exchanges. This could only be done by means of a systematic study of cases in the pipeline and other possible opportunities.

To be realistic, however, it is debatable whether the demand for land would continue at normal levels in a

situation where either scenario applied for any more than, say, a few months. Investors, developers and agencies would probably adopt a very cautious and even negative view towards allocating funds for the planning of projects, for paying land premium and for construction and other related project costa, Clearly, however, the possibility of interest being sustained is much stronger under Scenario B than A. At the same time, given a flatter land market under Scenario B, demand might well be containable within 50

ha.

There is also the question of whether even if the market remain active steps might be taken to block efforts by HKG to sustain it under either scenario.

Planning, Environment & Lands Branch

Dated 1 December 1992

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