C
Copy.
South China.
From the
75
C.R.9650
Hongkong and Kowloon.
General Officer Commanding the Forces in China.
To the
Secretary, War Office, London, 8.. L.
Head Quarters, Hongkong.
24th April, 1923.
sir,
'
With reference to War Office letter Hongkong/8/345 (Q.M.G.1.) dated the 18th December 1922, I have the honour to note paragraphs 1 to 3.
2. Para 4. It is noted that a further communication on this point may be expected. The Schedule of values forwarded with Command letter of 18th May 1922 is considered to represent fair market values at the time it was compiled in 1921.
Since
then and principally in the last few months there has admittedly been a considerable rise in the prices fetched by land sold by auction in the open market. Whether these values will be maintained in the future it is difficult to foresee. They are due primarily to the disturbed conditions prevailing in China, causing a influx of wealthy Chinese into the Colony and an out- burst of speculation in real estate. Demand exceeds the avail- able supply with the inevitable result. Many of those most competent to judge anticipate a slump in the near future. Also, when even a portion of the military lands becomes available for building and thus relieving the present congestion, there may be a fall in values.
In view of these circumstances it is thought that the Colonial Government would agree to pay say 10% over the Schedule valuation in order to arrive at a settlement and avoid the delay and uncertainty of an independent valuation. In any case the Colonial Goverment objects to any valuer who is not thoroughly conversant with local conditions. If the Colonial Government is prepared to make such an offer it is considered that it would be sound policy to accept it.