CO129-583-6 Air Ministry- land requirements and possible terms of lease 28-12-1939 - 2-5-1940 — Page 11

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refund in case of relinquishment and to take buildings and formation values separately.

I do not think that the Air Ministry has any real reason to fear that they might not get a fair price for their buildings on relinquishment.

There are,

broadly speaking, three possible eventualities:-

Government might take them over and use them: (2) Government might wish to remove them, selling

the material, and to put the land to other use: (3) Government might sell a lease of them.

In the case of (1) the provision for arbitration would

secure that the Air Ministry would get a fair price: in cases (2) and (3) the proceeds of sale could be paid

to the Ministry.

5.

As regards formation values, agreement may,

perhaps, be more easily reached if Kai Tak and Pat Heung are considered separately. I am prepared to agree, so

far as the former is concerned, to the refund of actual

formation costs in full in addition to the cost of

resumption: it is indubitable that the reclamation work.

done there would be useful for urban development if the

area ceased to be used as an aerodrome.

At Pat Heung the case is very different.

It

is improbable that the work done there would be of value

to Government and for the purpose of wet cultivation the

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