CO129-514-6 Question of legality of sale of water to Tai Koo Sugar Refining Co. Ltd.- from... 6-12-1928 - 23-12-1929 — Page 26

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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Company was to be in any way restricted as to user of the

water so impounded. This would, we should have thought,

have given the Government an opportunity of dealing witn

the matter by providing some restrictions as to the user

of the water. Unfortunately this was not done. On the

contrary the Government did not adopt the proposed amend-

ment, but on the 5th August 1896 entered into a supplemental

deed which was endorsed on the lease, which, so far from

restricting the user of the water, seems rather to nave

enlarged the rights of the Company in regard thereto.

This indenture recites that it was one of the terms of

sale of the Inland Lot No. 1550 that the Company should

be at liberty to construct a reservoir and impound therein

the natural flow of waters from the hillsides upon and

across the Lot and to make use of and divert the same, and

it also recites the fact that the lease contains no specific

mention of any right to impound, make use of, and divert

water and that the Company had applied for a grant for this

purpose, and the deed by its operative part granted to the

Company its successors and assigns the exclusive right to

impound the flow of water through, on, to or over Inland Lot

No. 1330 and to make use of and divert the same. Here again

we would point out that in the grant under this deed there

is nothing in any way to limit the right of the Company as

to their user of the water. The grant is to make use of'

and if it was intended to restrict the Company from selling

the water such a restriction should have been included in

this deed.

In the absence of any such limitation or

restriction in our opinion the words 'to make use of' are

sufficiently wide to enable the Company to sell and dispose

of the water at a profit to themselves. In our opinion if

the matter now came before the Courts the Courts could only

construe the lease and supplemental deed on the words found

therein, and we do not think that the letters of the 12th

3.

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