TC.103/50.
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong. Date 22nd
June 1951.
No. 712
Enclosure I. Enclosure II.
Enclosure III.
15
ļ
54347/140
REGISTRARS OFFICE
26 JUN 1951 GOLONIAL OFFICE
4.
I request your approval to the grant by private treaty of about 108,859 sq. ft. of land at King's Road, Hong Kong, to the Hong Kong Model Housing Society on the conditions set out in Enclosure I; and also to the form of licence under Special Conditions I (a) and (c) at Enclosure II.
2.
You will see from the enclosed copy of the Memorandum and Articles of Association of the Society that it is incorporated under the Companies Ordinance, 1932, and that I have granted it a licence under section 20 of the. same Ordinance to dispense with the word "limited". The Society proposes to build about 450 flats of a simple design which can be let at a modest rent to members of the public receiving relatively low wages or salaries: see clause 3 (a) of the Memorandum of Association and Special Condition 1 (a) of the Conditions of Grant. Govern- ment will retain a certain measure of control by virtue of Article 11 (3) of the Articles of Association which provides for the nomination by me of two members of the Board of Directors. Since the Society was incorporated I have appointed Ifr. W.W.C. Shewan, an Assistant Director of Public Works, to be a member of the Board in place of Mr. E.A. Boyce. Mr. R.R. Todd remains a Director.
3.
Although I have the authority contained in your Savingram No. 771 of the 3rd August, 1950 to make grants of land by private treaty for comprehensive workers' housing schemes, I seek
your specific approval in this case for three reasons:-
(1) No premium will be charged for land
valued at approximately $14 million.
(ii)
(iii)
Only a nominal Crown rent will be charged.
The form of licence to mortgage the land and buildings to the Hongkong & Shanghai Banking Corporation envisages the possi- bility that, in the event of the Bank having to foreclose, the assets of the Society may not be sufficient to meet its obligations to the Bank, and in that event the Bank will be free in exercise of its powers as mortgagee to deal with the land free from the restrictions referred to in Special Condition (1) so that a very valuable piece of land granted free by Government might then pass into the hands of others without any payment to Government.
The wording of the Conditions of Grant and the Licence have been the subject of protracted negotiations
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