TNAG-0857-FCO40-1067-Legislation-for-piers-and-harbours-in-Hong-Kong-1979 — Page 16

G.S. 84

XCR(79)175

RESTRICTED

4

A subsequent decision by the then Governor resulted in the lots being granted by private treaty but without restrictions at a premium at full market value which reflected its unrestricted status. The terms were therefore virtually identical to auction conditions, as they contained no restriction on user or alienation and the lease, unlike most grants by private treaty, is renewable.

6

In 1950, when Crown leases were issued, the form of Crown lease reflected the conditions of the original sale, and there was nothing to indicate that the lot was originally granted by private treaty. Indeed, this was not appreciated until a more detailed research, prior to sub- mission of memorandum XCR(79)113, revealed the nature of the original sale.

7

2

As stated in memorandum XCR(79)113, an in situ exchange involving surrender of 110 m2 (1, 184 sq ft) fronting Smithfield was com- pleted by the company. (As stated above the Government did not appreciate at the time the nature of the original grant). The new user condition in effect restricts the redevelopment of the lot to non-industrial uses in accordance with the town plan. No premium was assessed in the view of the absence of any effective restriction in the former Crown lease.

8

In December 1961, the company included IL No 4098 in a list of the lots for the sale or disposal of which it would seek Government's prior agreement. It has not yet formally asked for approval to dispose of the lot, but in the context of the recent exchange it was clearly under- stood that it might wish to do so. It will be noted that the company has accepted that it must show that the proceeds of the sale are to be used for the more efficient running or expansion of the company.

Public Utilities Land Policy

9

During discussion of memorandum XCR(79)113, Members queried the following points:

(a)

Why did not Government offer the Aberdeen lot in some form of exchange for IL No 4098?

(b)

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Was IL No 4098 covered by the undertaking normally given by public utility undertakings as a condition precedent to the grant of land by private treaty?

The main control on the use of land by public utility companies lies in the combination of inalienable private treaty grants and the undertaking given by public utility companies not to dispose of all lands, whether acquired by private treaty or purchased in the private market, without the consent of Government.

RESTRICTED