``The government should explain its policy to the public more clearly,'' Raymond Wong, a lawyer at Johnson Stokes & Master, said.

The Lands Department caused dismay at Wharf in October by refusing to renew the lease of the permanent pier, which forms a major wing of Harbour City, the SAR's largest shopping mall.

The lease ``will be disposed of by open competition in due course,'' the government said in a letter to Wharf, but refused to explain its reasons for the decision.

The site by the Star Ferry pier could easily fetch HK$5 billion at auction, according to surveyors' estimate.

Last month Wharf Realty sought a judicial review of the decision by the Director of Lands by the High Court.

Wharf Realty says the government's desire to dispose of the land by open competition does not by itself meet the government's stated policy of refusing to renew leases only where it is ``in the public interest.''

Wharf is not the only one expressing concern.

``In the past, the renewal of land leases has been nothing more than a procedural process,'' Wong said.

In an article posted on the Johnson Stokes & Master's Web site entitled ``Government Lease - Renew or Not? A Call for Higher Transparency,'' he strongly criticized the government's failure to explain itself.

``The Ocean Terminal case has raised concern in the business environment and among property developers as to what will happen to land leases on their private development upon expiry,'' he said.

He also pointed to the government's stated policy that it will only refuse to renew leases where ``circumstances require in the public interest.''

The policy was stated by the former secretary for planning, environment and lands Bowen Leung two weeks after the 1997 handover.

``It will be up to the court to decide which part of the 1997 policy statement applies to the Ocean Terminal lease and whether the decision not to renew is in the public interest,'' Wong said.

``However, confusion and uncertainty will remain until the government has made its position clearer.''

The Department of Lands has refused to comment publicly, but according to Wong ``a senior government official'' said the Ocean Terminal is a unique case because there is only one cruise terminal in Hong Kong.

Property analysts speculate the government is seeking a solution to the lack of space for cruise ships in Victoria Harbor.

Ships can only make limited use of Ocean Terminal since its berths are small and the water is not very deep.

Centaline's Victor Lai said that apart from the multibillion-dollar land premium, the government is interested in providing a modern cruise-ship terminal.

``It is hoped that the Ocean Terminal case is an exceptional and isolated one,'' Wong said.

``The Ocean Terminal case highlights the importance of transparency in the government's decisions. Long-term planning by developers will be difficult without such transparency.''

Wharf opened the 650,000-square-foot Ocean Terminal 39 years ago.

Lai said Wharf would lose a stable income source in Ocean Terminal, but the amount would not be huge.