CO129-617-3 New American Consulate building- proposed site 28-3-1947 - 4-10-1947 — Page 7

The question at issue is : what is

Capitalised

the present value of a lease having

to

(1)75 years,

(2) 150

years

and

run at a rental of $1,078 per arma with interest reckoned at 4%?

The answer to O, as shown in the tables in whitakers Almanack, is

23.68 years purchase, ie 23.68 x $1078

$25,521.04.

The answer to

منذ 2

25 years

7

purchase ie 25x $1078 = $26,950.00,

sunce 25

pnice

(100 years lease 49%

= 22+1/2 years purchase)

purchase years is

the figure for

leases in perpetuity @ 4%, and it is the practice to treat leases of 100 years

a ne

as in perpelisty. In the omnilar case which arose

in Fiji, the Treasury

world not

agree to commute the proposed rental as thinly's obligations under the Land /Lease Settement expire in 1951 and it is to Ithil's advantage that USA should be responsible for payments thereafter.

Hence

a rented basis world sint Mug best, but this is a mother for the Freasing & I think we can write as ins

draft opposite.

14 O. L. Williams (Jay)

نمد

W.D. freaney 19147.

4-9-47.