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THE People's Liberation Army (PLA) will be banned from engaging in business activities on military sites it inherits from the British Garrison in 1997 under a draft Sino-British accord on defence land.

  According to the draft agreement, a prime site in Queensway, the twin-tower Queens Lines, will be handed over to Chinese troops in 1997 with the British side offering the PLA the right to redevelop the three-hectare site.

  But to ensure that the military estate, close to the Conrad Hotel and Island Shangri-La Hotel, will not be redeveloped for commercial or other uses, British negotiators are understood to have attached a stringent condition that any redevelopment be confined to military use.

  The draft accord also makes it clear that instead of Hong Kong taxpayers bearing the cost for any redevelopment project, the PLA would foot the bill.

  Based on the results of four days of tough negotiations late last month, the draft accord detailing the plan and other arrangements is now being considered by the PLA for final confirmation.

  Sino-British defence experts are understood to have planned to meet again towards the end of this month, hoping to put the finishing touches to the draft deal.

  Should the PLA raise no objection to the draft accord, it is expected that the two sides will put the deal to the next Sino-British Joint Liaison Group (JLG) plenum for formal approval.

  Sources said the two sides were discussing the date for the next plenary session, expected to be held next month at the earliest.

  Queens Lines is understood to have been one of the three key sticking points during the long-running defence talks at the JLG. The other stumbling blocks were the relocation of the HMS Tamar naval base to Stonecutters Island, and Britain's demand for China to make a declaration that it would return any unused military facilities to the Special Administrative Region government for development.

  Comprising two towers and housing more than 40 families of the British barracks, Queens Lines is currently the married quarters for senior British military officers.

  Property experts have put the value of the site at more than $6 billion at 1993 prices, given the lack of prime sites in the Central business district.

  Noting the value of the site, British negotiators are understood to have tried to persuade the Chinese side to release Queens Lines for redevelopment for either commercial or residential use but the Chinese side insisted on retaining at least part of theareas.

  One of the options considered by the two sides during the negotiations was for the British side to redevelop the site at a cost of about $400 million. The PLA would be entitled to ownership rights of part of the redevelopment.

  Anticipating the difficulty in seeking the Legislative Council Finance Committee's approval for funds, the British side is understood to have cast doubts on the option, which was eventually dropped.

  During the negotiations, the Chinese side indicated it wanted to keep Queens Lines for use as married quarters for PLA officers.

      Under the draft agreement, other military quarters to be handed over to the PLA include the scenic Stanley Fort.

  The largest defence estate to be left to the Chinese troops, Stanley Fort extends over 129 hectares of land with facilities including 12 officers' quarters, 327 other married quarters for officers, an officers' mess, squash courts, tennis courts, workshops, a nursery, a school and two swimming pools.

  The fort will be vacated in September with the withdrawal of the Black Watch regiment, comprising 600 soldiers.



Military use only for prime site