XN000022-1972-05-10 — Page 14

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Wednesday, May 10, 1972

"I cannot believe that the intention of the Crown is to place the two categories of purchaser in the same position," he said.

So far as a sitting lessee was concerned, he should be able

to renew his lease not at a scarcity value but at such a fair and

reasonable rent as would apply if, for example, there had been an unlimited supply of land available for purchase, or at any rate a supply reasonably in balance with the demands.

"Phis would be quite a different value from the scarcity value in the present market in Hong Kong. Such a market is not a true open market but is more like a black market such as exists in food in times

of crisis or wer, " he added.

Examples

Examples had been furnished to UMELCO of cases where the revised Crown rents will exceed the amount received by the landlord from protected tenants whose rental payments are controlled. If such a case were taken

to the Privy Council, could their Lordships be expected to rule that the Crown rent is fair and reasonable?

"I would be surprised indeed if the Attorney General or any member of the legal profession were to advise under such circumstances that the revised Crown rent computed on the present basis is fair and reasonable" Mr. Woo said.

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