CO129-587-8 Crown leases 18-4-1940 - 17-3-1941 — Page 36

HONG KONG GENERAL CHAMBER OF COMMERCE.

Ene Conure Mo 36

Report by the Special Committee appointed by the General Committee of the Hong Kong General Chamber of Commerce to con- siler renewal terms of the Seventy-five Year Crown Leases which are without a provision for an extension for a second terr.

We have now completed consideration of this question end submit

our report as follows:

1. Our appointment dates from the 25th August, 1938, when the Hon. Mr. S.H.Dodwell and the Hon. Mr. J. J. Paterson informed the Genera Committee of the Chamber that the Government had asked them to obtain an expression of the Chamber's views as to renewal terms of the 75 year leases.

It is understood that the Government proposes to sub- mit the whole question to the Secretary of State for the Colonies and to ask for a ruling as to the policy to be pursued.

2. We suggest that, if our report is adopted by the General Committee, the Government be asked to forward a copy to the fecretary

of State.

It is our desire to present

with as little bias as

possible

3.

the point of view of leaseholders in this matter.

To the Colonial Office it may appear at first sight that the question at issue is a simple one to be settled by the answers to two questions: First, "What are the terms of the lease?" and, second, "What is the customary method of Atoining a renewal?"

•

4.

The answer to the first question is that the land is granted under a covenant to erect and maintain a building of not less than a stipulated value and the lessee pays a cash sum and an annual ground

At the end of the lease the land and the buildings revert to

the Crown.

rent.

5.

The answer to the second question is that it is to be assumed -- unless the land in particular cases is required for a public pur- pose the Crown has no desire to turn a large number of ratepayers out of house and home and will be ready to grant a renewal cf the lease, cn terms. How these terms are usually calculated is set forth in Chapter VIII of Curtis's "The Valuation of Land and Houses (Sixth Edition, 1924), where it is stated.