THE HONG KONG GOVERNMENT GAZETTE, SEPTEMBER 6, 1929. 459
secure this Lease for you, I will make sworn affidavit under the Agreement, and do so for you.'
Will His Excellency the Governor kindly direct that the text of the documentary evidence" referred to above be laid on the table of this Council?
17. Will the Government appoint a Commission of Enquiry to investigate
into and report on the Kowloon Tong Scheme?
The Colonial Secretary replied as follows:-
1. Only the 1st payment of one-fourth of the Premium, viz., $106,119.78 under clause 5, sub-section (a) of the agreement has been made. This payment was made on the 16th January, 1925.
Under clause (5) of Clause 5 it is provided that one-fourth of the total amount due on the Kowloon Tong property shall be paid on the date of the notification in writing from the Director of Public Works to the Company. Notification was duly made by the Director of Public Works to the Company in a letter dated 11th April, 1928, to the effect that the entire area of the Kowloon Tong property had been formed to the approved levels in accordance with Clause 4 of the Agreement and the Company was called upon to pay into the Colonial Treasury a sum of $106,149.78 being one-quarter of the premium due on the property.
The Treasurer repeated this demand for payment on the 10th May and received a reply from the Company to the effect "that this Company is not at present in a position to pay the premium demanded".
The Treasurer sent reminders but payment has not yet been made. 2. When the whole scheme has been completed Government will under sub- clauses (b) and (c) of Clause 5 of the Agreement be entitled to receive in all a sum of $315,827.22.
3. This explanation can only be given by the Company.
4. On 18th June last the Government was informed by the Kowloon Tong and New Territories Development Company, Ltd., that it proposed to issue a circular of which a copy was enclosed.
In this draft circular the sum mentioned is $3,210,218.49 and this circular may possibly correspond to the circular mentioned by the honourable member.
This communication by the Company was taken by the Government for notification and merely acknowledged.
5. The Government has no official information on this subject.
6. The Government has no information as to changes of management of
this Company. The Government looks to the Company for the fulfil- ment of the Agreement.
7. Government was cognisant of the formation of this Company but has no
information as to the amount of its paid-up capital.
S. In financing this scheme the amount of paid-up capital was relatively unimportant. The important point was for the Company to obtain the confidence and support of a requisite number of subscribers and thereby justify the very costly preparation of a large tract of land for building. 9. It is not clear to what obligations of the Company towards Government the honourable member refers. A reply will be given when this ques- tion is put in more definite form.
10. The Government is not concerned in this matter and has no information 11. The answer to this question is not within the knowledge of the Govern-
ment.
12. The Agreement with Government provides that any balance of premium must be paid before Crown Leases are issued. A Crown Lease of each lot will not be issued until the premium in respect of it has been paid.