CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 7

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depends to a large extent upon the rights which they possessed under Chinese law and it is quite impossible on the information which we have to come to any conclusion upon it. I would only say that it does not strike me as a frivolous contention which can lightly be brushed aside, and that it does appear that the Government's views as to the rights of the holders of land under Chinese law have become less sympathetic as time progressed, and the Convention and the promises made under it receded into the past.

The other two points which are made are firstly that town extension works are not works for official purposes and secondly (and this really applies even if the former contention is not sound) that the compensation payable is not compensation at a fair price as contemplated by the Convention.

As regards the first point, I find great difficulty in agreeing with the Governor that the compulsory purchase of a man's land is not expropriation, or that town-planning, carried on in the way which is described, is an official purpose within the meaning of the Convention. The wording is very precise and it will be observed that"official purposes" is not used generally but with reference to public offices and fortifications.

The relevant clause in the Convention to my mind means this "there will be no expropriation or expulsion of the inhabitants of the district unless the land is required for public offices, fortifications or

Like

for official purposes of a light nature to public

offices and fortifications, in which case it shall be

bought

bought at a fair price"; and that brings me to the second point which is the adequacy of the compensa- tion. A fair price must mean a fair market price and a fair market price is the price which, having regard to its actual and potential value the land would fetch in the open market. This seems to me to be a very different thing from the artificial method adopted by the Government of ascertaining the value for compensation, Even assuming that the Government have got the right to grant or not to grant licences for turning agricultural land into building land, it cannot

be fair if there is a real chance that such licence will be granted, to eliminate that element

It would in computing the value of the land. not be eliminated if the land was sold in the openmarket and I don't see how it can be "fair" to eliminate it in granting compensation.

The Governor says that the amount of compensation which is granted is in accordance with Chinese law and custom. That may be, but it is surely not the point, which is, whether it is in accordance with the Convention.

the

I think that there is a great deal to be

said for the desirability of an independent

minda Bough enquiry into the whole position, but Convention did not exist I doubt if anyone could complain very seriously of the general procedure adopted by the Government for improving this part of the country. In view of the commitments which have been made, the Government might be

made

aeriously