LAND AND HOUSING
119
restrictions have served their purpose well, but the demands of an increasing population now require more intensive development. It has therefore become the practice for these conditions to be modified in accordance with standard zoning schedules which preserve the amenities of each district while allowing more intensive development. Modifications of this sort are subject to the payment of a premium.
In recent years groups of 75-year Crown leases granted in the Colony's early days, chiefly in Kowloon, have been expiring. Terms and conditions for new leases have already been agreed in a large number of cases. Premiums for the new leases may, subject to certain conditions, be paid either in a lump sum or by instalments over an agreed number of years, most lessees preferring the latter method. Terms announced in 1960 provide for a maximum of 21 annual instalments and interest of 10 per cent. On re-grant, the boundaries of these lots are adjusted to conform with street im- provement lines, etc, and where land is needed for major replanning schemes the leases will not be re-granted. In these latter cases the government has announced its intention to pay ex gratia com- pensation for buildings. For churches and temples already on non- renewable leases, new leases may be granted free of premium.
An increasing number of 75-year renewable leases are also_falling due for renewal. In these cases, under terms announced in 1963, the Crown lessee of an under-developed lot has two alternatives. He may renew either at a Crown rent based on the full rental value of the land without added lease covenants, or if he is prepared to accept a covenant limiting the development on the lot to that existing at the time of renewal at a lower Crown rent.
With the increasing need to seek sites for major schemes in the New Territories, outline development plans have been prepared or are under preparation for building new towns and expanding existing market towns in those areas best suited to industry and high-density housing. These are Tsuen Wan, Kwai Chung, Castle Peak, Sha Tin, Yuen Long, Tai Po, Shek Wu Hui, and Junk Bay. However, most of these development areas contain a high proportion of leased agricultural land and there is not enough Crown land to serve public purposes. As development proceeds, Crown lessees are invited to surrender agricultural and village or rural building land in exchange for a re-grant of building land, with boundaries con- forming to the development layout. Within layout areas these