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The Tai Koo Sugar Refining Co. Ltd.
Re Water rights.
Opinion.
The Tai Koo Sugar Refining Co. Ltd. (hereinafter called
"the Company") is possessed of a reservoir connected with the
Company's works by a pipe line laid across Crown land. The
Company now claims the right to sell its water, & thereby
compete with the Hong Kong Government as a water supplier.
I am asked to advise the Government as to its rights
in the matter, it being desired, if possible, to restrain
the sale of water by the Company.
The circumstances under which the reservoir was construc-
ted & permission to lay the pipe line granted are fully set
out in my instructions, & it is unnecessary to repeat them.
From the Government's point of view it is most unfor-
tunate that the supplemental deed of 5th August, 1896, which
expressly grants water rights to the Company, contains no limitation as to the Company's right to dispose of water.
On the face of the deed itself the Company's power of dis-
position is absolute.
It is true that the letter of 12th May, 1893, from the
Director of Public Works, clearly states that the necessary
site for the construction of a reservoir will be put up for
public auction on condition that the water is for private
use only & not for sale. Furthermore, the letter from
Messrs. Butterfield & Swire dated 15th May, 1893, clearly
indicates that the water is for the Company's requirements
only.
But the fact remains that the land was put up for
public auction at a later date with no limitation as to the
1.