XN000022-1972-08-05 — Page 1

P.R.H. 7 (ARVISED) 4000001

HONG KONG GOVERNMENT INFORMATION

DAILY

INFORMATION

SERVICES BULLETIN

Saturday, August 5, 1972

GOVERNMENT REPLIES TO C.M.A. ON CROWN RENT POLICY

The Colonial Secretary has written to the Chinese Manufacturers'

Association of Hong Kong and other public organisations reiterating the

Government's stand on the reassessment of rents for the renewal of Crown leases.

In December last year, the Chinese Manufacturers' Association, together with 26 other organisations, sent a joint petition to the Government calling for reconsideration of its renewal rent policy.

In the Legislative Council on May 24, 1972, the Colonial Secretary announced a number of modifications to the renewal policy which would be of benefit to the holders of renewable leases.

Replying on behalf of the Governor, the Colonial Secretary said in

his letter that the various modifications to the policy proposed by the Government would cause a loss to the community from renewal rents amounting to some $430 million during the five-year period 1973-77.

He said the lease conditions of renewable leases contained a provision, on expiry, for renewal at a re-assessed rent. "This provision states quite clearly and unequivocally that the Director of Public Works shall fix this rent fairly and impartially as the fair and reasonable rental value of the ground at the date

of renewal."

!

The letter