CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 26

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from the King's Surveyor.

It is clear that the object of these provisions was mere-

ly to give the Government power to charge a higher rental

for land used as building land;and that it was not intend-

ed to prevent the landholders from using their land as

building land, if they so desired; as they would have been

entitled to do under the New Territories Titles Ordinance,

or under Chinese jurisdiction; and it is submitted that

any Court of Equity would so construe the black Leases.

Nevertheless the Government of Hongkong take the view

that they are entitled arbitrarily to refuse to grant

licences to build; and that consequently the tenants are

only entitled to the use of the land as agricultural land;

and are therefore entitled to compensation, on resumption,

only on the basis of the value of the land as agricultural

land. To strengthen their position the Government have

passed the Crown Lands Resumption Amendment Ordinance 1922

by Section 2 of which it is provided, inter alia, that in

the determination of the compensation to be paid under

the principal Ordinance :-

(b) "No compensation shall be given in respect of any

"use of the land which is not in accordance with

"the terms of the Crown Lease under which the Land

"is held.*

(c) "No compensation shall be given in respect of any

"expectancy or any probability of the grant or

"renewal or continuance by the Crown or by any

"person of any licence permission lease or permit

"whatsoever,provided that this paragraph shall not

"apply to any case in which the grant or renewal

"or continuance of any licence permission lease or

6.

"permit