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?rent

from the fact that this would amount to an admission

that it is the duty of Colonial Governments to provide

land for military purposes free of charge for all the Services.

At 22 on the '37 file, the Air Ministry raised

several points in connection with the Hong Kong despatch

contentions

at 19 on that file. Their main conäations were:-

1. Since the cost of resumption of a site includes the

market value of the land, why should they pay Crown Land as well?

2. That the payment of 25 years consolidated Crown

rent is equivalent to the purchase of the land, involving

the right to dispose of the land to the best advantage

upon relinquishment.

The answer to the first of these two points,

as given in the present despatch, is that all and in

Hong Kong is leased from the Crown at the annual Crown

a

cash

Rent, ocassional premium (representing the market

value of the land) being charged on the acquisition of the lease

For this reason Hong Kong cannot accept the Air

Ministry's contention that payment of a consolidated

Crown rent is equivalent to the purchase of the land.

In fact, the only reason for introducing

into Air Ministry conditions the capitalisation of Crown

rent at 25 years purchase, was that it is an existing

for condition with transactions with the Military authorities.

The Hong Kong authorities are not particular about this

point, and would be quite prepared to substitute for it

the payment of annual Crown Rent in which case there

would naturally be no repayment of the proportion on

relinquishment.

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3. The Air Ministry also questiondthe fairness

of the new Clause proposed in paragraph 9 of 19 on the

'37 file. Their point is well met in paragraph 5 of the

present

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