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AUGUSTINE S. K. CHUNG ROOM 1115, HANG LUNG CENTRE, 11th FLOOR, PATERSON STREET, HONG KONG. TEL: 5-771862-3
(vii)
Government considers that there is no basis for making additional allowance, To obtain compensation, each former owner is required to submit a claim in respect of his interest in the resumed property in accordance with Section 21 of the M.T.R. (L.R. & R.P.) Ordinance so that negotiations can be commenced with Government. However, if these negotiations do not result in agreement, either Government or the former owner has the right to refer the matter to the Lands Tribunal for arbitration."
However, when the reversion date is reached, the unfair situation as described in paragraph 2 above will occur. Therefore, by the time the said letter was received by the Sai Lau Kok people, there was also a lapse of more than four and a half months after the reversion day. By then, the value of equivalent flats or shops in the open market generally was far above that of Sai Lau Kok which latter value was only assessed as that on the reversion date. No interest at the permitted rate (only about 10% at that time) was sufficient to compensate that loss of capital increase in land value. Further negotiation became more and more difficult as the land value in the market continued to grow because the situation made it impossible for the owners to purchase any flats or shops (even subject to existing tenancies) with the compensation payable to them. Some of the absentee owners were financially more capable and were also smarter than the others. They painstakingly accepted the compensation as offerred by the Authorities concerned and purchased flats or shops elsewhere. They told the others that they had suffered loss which were true facts.
to be Cont'd/P.11