62
HONG KONG ANNUAL REPORT
be granted were made in 1946 and 1949. Terms and condi- tions for new leases have already been agreed in a large number of cases, and other leases will become due for renewal in rapidly increasing numbers as further categories fall due. During the financial year 1954-5 revenue from renewals of this type of lease was $1,239,070. A further statement in 1952 intimated that the Government would be prepared to pay ex-gratia compensation for buildings law- fully erected on certain Kowloon lots, the leases of which could not be renewed owing to town planning requirements, and provision is made for possession of such lots to be retained until the land is required by Government.
The Government's general policy is to sell leases to the highest bidder at public auction. In certain instances land required for public utilities is sold by private treaty. Land for schools, clinics and certain other charitable pur- poses is usually sold by private treaty at preferential rates, varying from a purely nominal figure up to the current market value.
Revenue obtained during the financial year 1954-5 from the sale of land by auction amounted to $6,156,000, while that arising from sale by private treaty, extensions of area, and grants in exchange was $4,537,000.
Since 1948, with the approval of the Secretary of State, certain grants of land have, as a special measure and under certain conditions, been made by private treaty at roughly half the market value for the provision of cheap housing and for factory workers' quarters. See also the Housing Chapter.
Policy concerning the sale or grant of Crown land is governed not so much by the availability as by the scarcity of all types of land. In order to ensure that available Crown land is put to the best possible use, all sales or grants are subject to a covenant wherein the lessee undertakes to develop the lot up to a certain rateable value within a specified period, the amount of expenditure depending on the location and type of development allowed. In addition to the covenant, leases contain clauses controlling the use to which land may be put, in accordance with town plan- ning. They also provide for the annual payment of Crown rent which is, however, relatively low compared with the annual economic value of the land. Until the lessee has