XXX SECRET.
F
53514/58 10
GOVERNMENT HOUSE,
HONG KONG.
31st March, 1939.
D
to a.m.
19 mm 1937 file
tw
Sir,
I have the honour to refer to correspondence resting with Mr. N. L. Smith's secret despatch dated 13th September,
1937, on the subject of the terms of transfer of land for the
use of the Air Ministry.
2.
I have been made aware of certain points which have
been raised in a secret demi-official letter from the Air
1937 Ministry numbered 5.33302(F.5.) and dated 13th January, 1938,
and I hope that the following information will serve to clear
up these points.
3. In the first place the Air Ministry enquires as to the reason for paying Crown rent as well as the cost of
resumption which includes the market value of the land, from
which it would seem that the system of land tenure in this
Colony may not be fully understood. All land is leased from the Crown at an annual Crown rent, a cash premium being paid
by the lessee on acquiring the lease, and on the expiration of the lease the land reverts to the Crown. The market value of land may therefore be said to be the amount of premium which would be paid in the open market for a lease of the land, quite apart from any question of Crown rent. Further, land is divided into two main classes, agricultural and building, and the premium and Crown rent differ according to the use to
вору
cx/y H.K.
2.4/-/470
THE RIGHT HONOURABLE
MALCOLM MACDONALD, M.P.,
&C., &C., &C.
Page 10Page 11