Colonial Office No. 54392.
Secretariat File No. 6/2911/4SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date
12th August, 1947.
No.
462
15
Your Savingram No.530.
Site for United States Consulate Building.
Approval noted.
Practice here is to capitalize rents at 25 years purchase
representing interest rate of 4% if the land is held in perpetuity.
Lease in this case is for 75 years renewable for a further term
of 75 years at revised Crown rent. Suggest therefore that the 4%
rate should be applied to rentals for 75 years only, giving
capitalized value of $25,527.04. Capital value of the rental
over the full period of 150 years based on the assumption that
the rent would not be increased after 75 years is $26,950.00.
Amounts quoted are in Hong Kong dollars and not in
United States dollars.
4.
RECEIVED
21 AUG.947
C. O. REGY