2.
13
(3) The Crown leases are silent on the question of whether
compensation should be paid when the land reverts to
50 44706/14.
the Crown on the expiration of the term, but it is clear that no claim for compensation could be upheld. But though on the final expiration of a leasehold term the
title of the tenant to demand renewal is not admitted, it is recognized that the principle of auctioning the
lands, with the buildings erected by the tenant, is not applicable, and in practice a further term is granted to the former tenant at a re-assessed Crown rent on
payment of a reasonable premium, which takes into
consideration the present day value of the land. In
this connection please see Mr. (afterwards Viscount)
Harcourt's despatch No.12 of 14th January, 1915. It
is not considered necessary or desirable to add to the
Crown leases any stipulation that on the expiration of
the term the land shall revert to the Crown without
compensation. It does so revert without express
stipulation and, if such a stipulation were now inserted,
it might create an impression that there was at least
some doubt as to the position under leases in which no
such stipulation occurred.
2. As Mr. Ruttonjee made his application several
months ago, I should be glad if I might have your approval of
the issue of the lease to him by telegraph.
I have the honour to be,
Sir,
Your most obedient, humble servant,
Live
Govemor, &c.