TENS of billions of dollars from the sale of military sites in Hongkong might go to the People's Liberation Army (PLA), depending on the outcome of a dispute between China and Britain over how to dispose of unused defence land after 1997.
The Sino-British Joint Liaison Group (JLG) is understood to have discussed an arrangement requiring the PLA to hand over unwanted land to the Special Administrative Region (SAR) Government.
The British side wants to make sure the present policy of handing over such sites to civilian use continues beyond the changeover.
Without such an assurance from the Chinese side before 1997, it is feared that proceeds from selling military land for redevelopment may be channelled into the PLA instead of the public coffers.
The two sides cannot agree on the subject, making it another sticking point at the diplomatic body's negotiations over the future use of military sites.
Beijing is adamant that military sites currently occupied by British forces in the urban areas should be handed over to the PLA, despite repeated requests by Britain to release them before 1997 for non-military developments.