Adding NSL Clauses Won't Hurt Land Sales, Says CE

Chief Executive John Lee on Tuesday dismissed suggestions that the addition of national security clauses to land sale documents is affecting investor confidence.

The Lands Department started including new provisions in land sale papers and short-term leases last year, stipulating that the government can disqualify bids or suspend leases for reasons related to national security.

Asked whether he thought a recent fall in property stock prices showed concerns over the inclusion of such clauses, Lee said the property sector understands and supports the need to uphold national security.

"Such a provision has been in place for quite a while, and there had been land sales since its introduction. This factor is a natural factor that I think has no relevance at all to any decision by any businesses who are interested in bidding for sales of land, who will basically consider it from their business angle,” Lee said.

The Development Bureau also said the additional terms should not deter law-abiding organisations from making bids for land, noting that the first land sale with such provisions was completed successfully last year, having attracted six bidders.

On enacting the city's own national security laws under Article 23 of the Basic Law, the CE said his goal is still to introduce the legislation within this year or by next year at the latest.

He made the comment after pro-Beijing heavyweight Lo Man-tuen suggested in a newspaper editorial that authorities should put the issue on the back burner and focus on economic development instead.