CO129-535-8 Crown leases 17-6-1931 - 16-2-1932 — Page 10

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I have discussed with Mr.

Roberts-Wray.

is clear from paragraphs 4 and 5 of (1) that,

It

in some cases, the Crown has already re-entered of on

lots owing to default in payment of rent and that

innocent Section holders have petitioned for the

grant of separate leases. It should, therefore,

now be clear to all Section holders in Tong Kong

that their position is insecure.

The strict legal position seems to be that

the whole lot reverts to the Crown owing to the

default in payment of rent and that the Section

holders have no rights against the Crown. But

any of the Section holders of a lot could always:-

(a). Prevent re-entry by paying up the Crown

Rent and arrears and: -

(b). Might possibly eventually acquire the

Section of which the holder had defaulted in paying

his proportionate share of the Crown Rent.

It is also conceivable that the Courts might refuse

to allow the Crown to re-enter upon the whole of

a lot without when of the 3ection holders were

10t,

some

^

willing to pay their proportionate share. We

might ask for the views of the Hong Kong Attorney-

General on these points.

I think the Crown should be ready to remove

the insecurity of the Section holders by granting

them Crown Leases and that there may be a case

for fixing their rentals under the new leases at

a figure equivalent to their proportionate share

of the original Crown Rent

ruther

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