10
I have discussed with Mr.
Roberts-Wray.
is clear from paragraphs 4 and 5 of (1) that,
It
in some cases, the Crown has already re-entered of on
lots owing to default in payment of rent and that
innocent Section holders have petitioned for the
grant of separate leases. It should, therefore,
now be clear to all Section holders in Tong Kong
that their position is insecure.
The strict legal position seems to be that
the whole lot reverts to the Crown owing to the
default in payment of rent and that the Section
holders have no rights against the Crown. But
any of the Section holders of a lot could always:-
(a). Prevent re-entry by paying up the Crown
Rent and arrears and: -
(b). Might possibly eventually acquire the
Section of which the holder had defaulted in paying
his proportionate share of the Crown Rent.
It is also conceivable that the Courts might refuse
to allow the Crown to re-enter upon the whole of
a lot without when of the 3ection holders were
10t,
some
^
willing to pay their proportionate share. We
might ask for the views of the Hong Kong Attorney-
General on these points.
I think the Crown should be ready to remove
the insecurity of the Section holders by granting
them Crown Leases and that there may be a case
for fixing their rentals under the new leases at
a figure equivalent to their proportionate share
of the original Crown Rent
ruther
Page 10Page 11