TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 71

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for operating port facilities in Hong Kong which might preclude many

Chinese companies from participating. They requested that consideration

should be given to granting a private treaty grant (PTG) to Chinese

companies for operating the proposed River Trade Terminal (RTT) at

Tuen Mun Area 38 as such river trade facilities would be essential to

them for handling river cargoes from the Pearl River Delta. The Hong

Kong delegation explained that the method of disposal for port facilities

had to be considered in the overall context of land policy and land

premium was determined by market forces. As regards the proposed

RTT at Tuen Mun Area 38, the Hong Kong Government had completed

the feasibility study and would shortly issue a prospectus to all interested

developers, including Chinese companies, to seek their general views on

how the RTT was to be developed.

The Guangdong representatives were informed that a Rail Development

Study was being carried out in Hong Kong which would look into, inter

alia, the feasibility of developing a freight rail link between Hong Kong

and China. They expressed much interest in the freight rail but suggested

that consultation with the Chinese authorities on the details of the

proposal, particularly in respect of the location of the interchange between

the proposed freight rail and the Chinese railway system, would be