XN000022-1972-05-10 — Page 11

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Wednesday, May 10, 1972

GOVERNMENT URGED TO RECONSIDER CROWN RENT POLICY

Fair And Reasonable Method Of Computation

The Hon. P.C. Woo today strongly urged Government to reconsider

its policy and to adopt a fair and reasonable method of computation of

Grown rent for the holders of renewable Crown leases.

He was speaking in the Legislative Council in support of a

motion by the Hon. Oswald Cheung that Government make a thorough review

of its existing Crown rents policy.

Referring to the case of Chang Lan Sheng Appellant and the

Attorney General

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Respondent, Mr. Woo said the judgment of the Privy

Council in that case had only limited connection with the "problem

under consideration by this Council today."

The problem was what would be a fair and reasonable manner in

which to reassess Crom rent on those Crown leasea which are due to

expire within the next few years and which provide for renewal in the

hands of the existing losace.

At the trial, the appellant had claimed that the use of the

words "fair and reasonable rental" in a proviso to the lease had indicated

an intention that the standard should be something other than the full

market value and, since the proviso had been evidently intended to

confer a benefit on the lessee, that it should be lower than the full

market value, he said.

/Although