XN000022-1973-04-25 — Page 5

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Wednesday, April 25, 1973

Mr. Wong pointed out that "a lower Crown rent would set Government

up as a good example of a landlord and help in stabilising the extraordinarily

inflated price of land."

The Hon. James Wu, said a compromise solution should and must be

found, if Hong Kong were to forge ahead in greater harmony and prosperity.

He said for many years, people in Hong Kong had been led to believe,

by a proviso in the renewable Crown leases, that upon expiry, renewal would

be granted with a new Crown rent similar to the prevailing Zone Crown Rent

but "without payment of any fine or premium" as was clearly printed in the

Crown leases.

Contravention

"The belated 'Consolidated Statement by the Government in 1969

requiring the payment of a lump sum or decapitalised premium in the form of

greatly increased Crown rents," he added, "was considered to be in direct

contravention of this proviso and there appeared to be a credibility gap on the

part of Government."

Mr. Wu said: "The New Kowloon area, where some 5,000 leases are due

for renewal soon, is a low-income residential and industrial area and contrary

to the remarks made by the Financial Secretary last May.'

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Referring to the concessions made by the Government in May last year

and also last month, he said they were "grossly inadequate" bearing in mind

the greatly inflated land prices in the last few years.

On the unchecked high land prices and high rental on Hong Kong's

industry and commerce, Mr. Wu said people in all walks of life were wondering

"if Hong Kong had not been allowed to price itself out of today's competitive

world markets and into self-destruction."

/He hoped