Legislative Councillor Andrew Wong Wang-fat has called on the Government to explain a deal in which the British army bought land rights to a plot for a nominal sum in the Sai Kung Country Park in 1972, only to sell it to Swire for $9.28 million days before the handover.
The proceeds from the sale of Wardhaven, a bungalow built as a recreation centre for senior officers, are believed to have been spent on army-related charities in Britain. None of the money appears to have been given to Hong Kong charities.
Wardhaven is now used as a recreational retreat by Swire executives.
The bungalow and its gardens were officially owned by the serving Commander British Forces. They changed hands at $10 when each new commander took up his post. Mr Wong, whose constituency covers the area, also wants the Ministry of Defence in London to account for the $9.28 million.
'Nobody can tell you what happened to the money,' said a ministry spokesman. 'The only person who knows is in the Falkland Islands.' Faxed questions about the deal sent to former governor Chris Patten have not been answered. Executive councillors serving in 1997 refuse to discuss the matter.
The transaction took place on June 23, 1997, when Hilton Holdings, jointly owned by John Swire and Sons (HK) and Vere Nominees, a Swire subsidiary, agreed to pay the money to outgoing Commander British Forces, Major-General Bryan Dutton. Hilton Holdings had been set up on May 16, 1997.