Sec. 13/736/47
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
t
Date
September, 1951
No.
992
二
2513
Encl
(12)
(s)
In ser queli
Ն
Your savingram 750 of 2nd August, 1951.
Refund to Anglo-Iranian Oil Company of premium for grant
of land and remission of Crown Rent.
The proposals for refunding to the Company 75% of the premium paid and remission of Crown Rent for the period from 1st January, 1950 were referred to Finance Comittee, the Unofficial Members of which were unanimously opposed to any refund.
2.
Members pointed out that the Company had made no attempt to carry out the terms of the agreement which was completed on 2nd April, 1949. As early as 29th March, 1950 the Company in their letter at Enclosure 2 to my savingram No.146 of 5th February, 1951, requested permission to terminate the contract, stating their reasons. Their request was confirmed in their letter of 3rd June, 1950,
a copy of which is attached.
such
3.
Although partial refund of premium has usually been granted when cancellation of conditions of sale is authorised, cancellations have been very rare and are only authorised when the purchaser is unable to fulfil the terms of his sale agreement for reasons which were unforeseeable and quite outside his control.
Zw 2 k ha2 The Unofficial Members did not confine these e casone se vanced
by the Company for termination fulfilled these requirements and were loath to depart from established precedent in the case of a large company when the rules are applied rigorously to small companies and to individuals.
4.
Some members were strengthened in their opposition to a refund by a feeling that the Company had displayed a lamentable lack of faith in the future of the Colony.
5.
In the circumstances I see no alternative but to refuse refund, but I am prepared to approach Finance Committee again on the subject of remission of Crown Rent with effect from 1st January, 1950.
REGISTRAR'S OFICE - 7 SEP 1951
COLONIAL OFFICE
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