CO129-560-2 Air Ministry- requirements of land at Kai Tak Aerodromes 8-1-1937 - 5-2-1938 — Page 26

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of premium was ever paid to the Hong Kong Government.

8. With regard to paragraph 5 of your despatch under reference I should explain that the terms offered to, and accepted by, the Air Ministry in respect of the Triangular Area and the Officers' Mess site at Kai Tak

provide for a proportionate repayment of consolidated Crown

rent to the Air Ministry if the land is surrendered to the Colonial Government before the expiry of twenty five years, but do not provide for any such repayment in respect of the costs of resumption and formation. The terms offered

in respect of the Pat Heung site and the proposed Ha Tsuen

site, however, provide in the event of surrender before the

expiry of twenty five years not only for a proportionate repayment of consolidated Crown rent but also for payment

to the Air Ministry of the then value of the land as

determined by the Land Officer, regard being had to the then

value of land of a like nature in the same district and the

period remaining of the term under which the New Territories

are leased to the Crown.

9.

I now submit for your consideration that the

above mentioned clause should be considered as withdrawn

from the offer of terms in respect of the Pat Heung and

Ha Tsuen sites, and that the following clause should be

added to the terms of transfer of the Triangular Area

and Officers' Mess site, Kai Tak, and the Pat Heung

and Ha Tsuen sites, and should be included in the terms

of any future transfer of land to the Air Ministry.

"On relinquishment of the area by the Air Ministry

at any time the Colonial Government shall refund

to the Air Ministry the whole of the costs of

resumption and such part of the costs of formation

and buildings as shall represent the value of these

works and buildings to the Colonial Government.