in Storing Gardens

Hongkong

Regrets listhe

2. Lord Grenve, is

unable to accept the

view that the

capitalized value of the Crown rent should

be credited to the War

Dept. The lease was purchased by that Dept and presumably the price asked by

the vendor

was

affected by

the fact

that

the land was liable

to a

annual charge of

(for not

£150 a year is the

War Dept paid less

for

it

than if

the

vendor had not had to

pay the rent. Similarly

when the land is sold

by the War Dept, the purchaser will have to pay the rent and will therefore offer

less for the lease than he would otherwise be willing

to pay.

There does not

therefore appear to be

any reason

why

the Colonial

Office

in

addition to

losing the net Surplus

during

the occupation of the land by the War Dept, should be debited with the capitalized value

of

the rent when the

land is

again

sold.

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