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 41

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The Tai Koo Sugar Refining Co. Ltd.

Re Water rights.

Opinion.

The Tai Koo Sugar Refining Co. Ltd. (hereinafter called

"the Company") is possessed of a reservoir connected with the

Company's works by a pipe line laid across Crown land. The

Company now claims the right to sell its water, & thereby

compete with the Hong Kong Government as a water supplier.

I am asked to advise the Government as to its rights

in the matter, it being desired, if possible, to restrain

the sale of water by the Company.

The circumstances under which the reservoir was construc-

ted & permission to lay the pipe line granted are fully set

out in my instructions, & it is unnecessary to repeat them.

From the Government's point of view it is most unfor-

tunate that the supplemental deed of 5th August, 1896, which

expressly grants water rights to the Company, contains no limitation as to the Company's right to dispose of water.

On the face of the deed itself the Company's power of dis-

position is absolute.

It is true that the letter of 12th May, 1893, from the

Director of Public Works, clearly states that the necessary

site for the construction of a reservoir will be put up for

public auction on condition that the water is for private

use only & not for sale. Furthermore, the letter from

Messrs. Butterfield & Swire dated 15th May, 1893, clearly

indicates that the water is for the Company's requirements

only.

But the fact remains that the land was put up for

public auction at a later date with no limitation as to the

1.