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Crown Lands Resumption amendment Ordinance which wAS passed in 1922 is considered by the Government za justifying the resumption of agricultural land on payment of compensation based on what the agricultural use of the land is worth to an agriculturist.
6. When the petitioners contend that this in a breach of (a) the Convention and (b) the promises of the Government it does not seem to me to be a sufficient answer to say that neither the Lanchu rulers nor the Chinese Republic would have treated them better.
7. Ab the same time I do not forget that one is dealing more with land speculators who bought in anticipation of selling to the Government than with peasants deprived of their ancestral holdings: and I have not lost sight of the fact that the development of this area for residential and business purposes is of vital importance to the Colony, and that the consequences of a hasty decision may be to inflict irreparable damage on the whole community.
8. As you point out in paragraph 16 of your despatch under reply, any alteration in the present policy must imply an adrission of error, and involve the re-opening of all past transactions. I am therefore
not disposed to press my view which has hitherto been that compensation should be assessed not only on the actual but also on the potential value of the land, unless and until the whole question has been so fully
explored