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3.

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At the same time the representations made in

your despatch and the grounds on which those

representations are based have received the careful and

sympathetic consideration of my Executive Council.

4.

No premium has hitherto been claimed in respect of Crown Land transferred for the purposes now in question nor is it proposed that any should be claimed

in future cases.

5.

The nature and constituents of the resumption charges which have been incurred in all cases of sites required by the Air Ministry are covered by the provisions of sections 10(1), 11 and 11A(4) of the Crown Lands

Resumption Ordinance, No. 10 of 1900. In the recent case

of the acquisition of the Pat Heung site the land resumed was entirely agricultural and the resumption costs thereof comprised the market value of the land, crop compensation and compensation for buildings (principally village dwelling houses). In a few instances small ex gratia payments to which the local Air Ministry authorities agreed were made in respect of the removal of graves and shrines.

6.

To forego any part of its claim from the Air

Ministry for reimbursements of the costs of resumption, which represent no more than fair compensation to the expropriated owners, would in effect be to make a cash

contribution to Air Ministry funds, nor does it seem equitable

to single out for special treatment such part of that

fair compensation as might theoretically be held to be in

respect of premium originally paid by such owners.

7.

In this connection it is to be noted that in the

New Territories, in which all transfers of land to the

Air Ministry have hitherto occurred, much of the land was

in private ownership when the lease of the Territories

was acquired and that in such cases no premium or equivalent

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