TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 200

CONFIDENTIAL

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would be irresponsible of us not to assess this thoroughly before large-scale work starts. We do not think that the JLG is the right forum in which to discuss it. The project is not a matter related to the implementation of the Joint Declaration or to the smooth transfer of Government in 1997. Discussion of this project already takes place in the Joint Shenzhen/Hong Kong Working Group set up for this purpose. That is the right forum for taking the project forward.

Boundary and land implications

12.

There will be a motion debate in LegCo on 17 November asking the Government to expedite flood control and prevention works in the New Territories. In addition to the issues relating to the project itself, it is likely that LegCo members will be concerned whether there would be any land swap (affecting private ownership) as a result of the river realignment and whether this would cause any further delay to the river project.

13.

The project was suspended in 1988 because of the disagreement between the two sides on the future land boundary for Hong Kong after the river realignment. In 1992, the Chinese side indicated its agreement in principle that the future boundary of administration for Hong Kong should follow the river after realignment. This provides the basis for the resumption of the preparatory works for the project in July

We therefore see no reason why the boundary issue

1992.

should further affect the project.

14.

It is worth noting that for Stage I of the river project, 9.4 ha of Hong Kong land will end up north of the realigned river (compared with 94 ha of Shenzhen land which will end up south of it). For stages II and III no land will change sides. The current intention is to resume the 9.4 ha