XN000022-1972-05-10 — Page 4

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Wednesday, May 10, 1972

DR. HON. S.Y. CHUNG ON CROWN RENTS

Moral And Social Need For Reconsideration

Dr. the Hon. S.Y. Chung said today the renewable Crown lease issue

was a "delicate and cogent" problem and warned that if not properly handled

by Government, it could lead to confrontation between people and Government

to the detriment of the whole community.

"It is more than economical, it is moral and social, and above

all, the confidence of the people on Government," he said.

He was speaking in the Legislative Council in support of a motion

by the Hon. Oswald Cheung calling on Government to review its present policy

of assessing Crown rents on renewable Crown leases.

Dr. Chung said: "I do hope that Government will not under-estimate

the gravity and seriousness of this issue."

He said he was inclined to agree with some others that on Crown

rents, Government was acting "unilaterally and unsympathetically" and that

the present formula was "unreasonable, far too excessive, and contrary to

public understanding."

He cited two cases in which two similar lots of land at Kwun Tong

were bought in public auctions in 1963.

In one case the purchaser has to pay twenty instalments of $30,600

until 1982 and then retains the lot free of further payments until 1997. In

the second case the purchaser has to pay twenty instalments of $46,600 but

will have to pay a very much higher Crown rent upon renewal of the lease in

1983.

/At the