RECEIVED
2219
14 JAN 1938 C. O. REGY
AIR MINISTRY,
ADASTRAL HOUSE,
KINGSWAY, W.C,2.
5.53302 (F.5)
1315
January 1938.
SECRET
copy
Anad (4)
to N.L. Smith (3)
11
Dear Gent,
20
oly HK.
@4-/47.
Will you please refer to Colonial Office letter 314/37 of the 16th November, 1967, enclosing a copy of the Hong Kong Government's letter of the 15th September, 1987, with regard to the quest on of the terms of acquisition and relinquishment of land at Hong Kong required for Royal Air Force purposes.
•
We are pleased to note that the local Government are prepared, on relinquishment, to reimburse the whole cost of resuming e were not aware, however, that the cost of resuming inc uded the market value of the land and are not clear in these circumstances way we are expected to pay Crown rent as well; and we should also have liked the local Government to comment on the point es to capitalised Crown rent maue in para. of your Letter to them of the 5th March, 1957. As you know, it seems to us that payment of this on the basis of 20 years' purchase is equivalent to buying the lanu and giving us a right, on elinquisning, to be
elinquisning, to be reimbursed or alternatively, to dispose to the best advantage of the interest we acquire; accordingly, we do not feel able at present to ask the Treasury to authorise payment of the considerable sums of capitalised Crown rent already demanded in respect of land occupied & Kai Tak and Pat Heun, and for which a liapility will arise in acquiring further lend. There may, of course, be satisfactory explanations of the local Government's attitude and I shall be grateful if you can alford us any enlightenment ?
L
The question of payments of p.emia inside payments of cost of resumption appears to we of little practical significance and we are not disposed, for our part, to pursue the point. We are not, hoever, altogether nappy about the phrase in the revised relinquishment
G.4.J.dent, Esq., D.S.0.,0.B.E.,M.C.,
Colonial Office,
S.1.
/clause
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