CO129-587-8 Crown leases 18-4-1940 - 17-3-1941 — Page 13

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4.

The question, therefore, to be decided

is the form and extent of the consideration

in respect of the reversionary interest of the

Government on the grant of a fresh 75 year lease.

It is clear from the report of the Special Committee

of the General Committee of the Chamber of Commerce

that the greater part of the tenants concerned

would have the strongest objection to the payment

of a premium as such. I note, however, from Mr.

Butters memorandum, enclosed in Mr. Smith's despatch

under reference, that it is a matter of indifference

to the Government of Hong Kong whether it obtains that

consideration in the form of annual rent, or a lump

sum premium, or a combination of both. I note also

that the number of leases concerned totals 1,344;

and, although I am not aware of the total number of

Crown leases granted in the Colony, it seems clear

that these 75 year leases are but a small proportion

of the total number held in the Colony. In these

circumstances, I am doubtful whether it would be

wise for the Government of Hong Kong to become involved

in lengthy or exasperating controversy with an

important section of the unofficial community on

an issue of such comparatively small importance.

suggest

5.

I am of opinion, therefore, that no premium

should be required for the grant of fresh 75 year

leases of Crown land, but that such leases should be

granted on payment of a rent which need not be the

current rate of Crown rent for the locality, or even the fair and reasonable value of the holding, but might

should in addition to the latter figure include Some

Conson

payment in respect of the premium which would other-

wise have been required on the grant of a fresh lease.

suggest

I am also of opinion that this increase in the rent

should