9/26/50 DCB:ER
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date 20th September, 1951.
No.
2
3.
Hitherto, Clubs have occupied their grounds for
a nominal fee and without any security of tenure in accord- ance with the allocations made in the Table to the 2nd Schedule of the Pleasure Grounds and Bathing Places Regulation Ordinance No.29 of 1936. This Ordinance now requires considerable revision which will be undertaken in the near future.
4.
I have given serious consideration to the question whether these clubs should be charged a premium, and what Crown rent should be imposed. Most of the clubs concerned have occupied their grounds for a number of years under the Ordinance referred to above, on payment of 1 per year. Ilone of them is profit-making and their net proceeds are all devoted to improving the facilities provided for members and, in some cases, for the public attending football or other matches. The Armed Services will, in accordance with the Committee's report, obtain a 10 year lease of three of the major football grounds in the Colony which they will occupy without payment of premium or Crown rent, as is usual when Crown land is made available to the Services. I have had the financial position of the five Civil Service clubs examined, and it is evident that they cannot afford to pay
This Crown rent, even at a flat rate of $1,000 per acre. figure was suggested as roughly balancing the anticipated deficit on maintaining "Pool" grounds, referred to in Chapter VI of the Committee's Report. It is obviously impracticable to differentiate in the matter of premia and Crown rents between grounds allotted to the Armed and Civil Services on the one hand, and to private clubs on the other. In these circumstances, and in view of the restrictive con- ditions which will be imposed, I consider that the payment of a premium can justifiably be waived, and that an annual Crown rent of only $100 per acre, should be charged to the clubs listed in the first paragraph, the deficit on the "Pool" grounds scheme being met from general revenues.
5.
I should explain that certain clubs contribute substantially to the revenue of the Colony through payment of Entertainments Tax on tickets for games for which an admission charge is made, and all clubs buildings are, of course, assessed to Rates and Property Tax.
6.
I would be grateful for an early indication of your approval of these proposals. Executive Council has been consulted and agrees.
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No. 254 (6/4716/48).