CO129-535-8 Crown leases 17-6-1931 - 16-2-1932 — Page 15

No. 453.

Sir,

82845

R

315

GOVERNMENT HOUSE.

HONG KONG, 23rd October, 1931.

(2)

I have the honour to acknowledge the receipt of Lord Passfield's despatch No. 232 of the 21st of August, 1931, on the subject of the granting of new Crown Leases for sub- divided Town and suburban lots in Hong Kong, and in reply to state that the leases granted by the Crown in this Colony do not contain any restriction of assignment or sub-leasing by the Crown's lessees, but the registration of all dispositions is required.

2.

Sub-leasing by the Crown's lessees, except for short terms, is unusual and has hitherto given rise to no difficulty. The normal practice is for the Crown's lessee to assign for a capital sum the whole of his interest in the term granted by the Crown the assignee covenanting to pay a proportion of the Crown Rent apportioned in accordance with the area assigned. The Crown is not a party to such apportionments.

Portions so assigned are designated Sections and the portion of the lot remaining in the hands of the original lessee is designated the Remaining Portion.

3. It is customary to look to the holder of the Remaining Portion to collect their shares of the Crown Rent from the holders of Sections and Sub-Sections and to pay the

Aust &

THE RIGHT HONOURABLE

J. H. THOMAS, H.P.,

&c.,

&C.,

&c.

whole