TNAG-1400-FCO40-1872-Future-of-Hong-Kong-Ministry-of-Defence-(MOD)-property-1985 — Page 42

- 2 -

2.

The Secretary of State shall not later than the thirty-

first day of January in each year pay to the Hong Kong Government the sum of Ten Hong Kong dollars as an acknowledgement of the appropriation

of the said land.

3(a).

The Secretary of State shall not part with the possession of the said land or any portion thereof, but this shall not preclude the Secretary of State from granting licences in a form approved by the Hong Kong Government to such persons as he shall see fit or from granting temporary encroachments within the perimeter of the said "land for the proper management thereof or for providing services and amenities necessary for the comfort and welfare of the persons occupying the said land for the said purposes.

3(b).

Where the Secretary of State desires that a tenancy shall be granted to any person for the said purposes or for any purpose mentioned in the foregoing sub-clause (a) the Hong Kong Government shall, if it agrees, grant a tenancy to that person upon such terms as it shall see fit PROVIDED that the Secretary of State shall receive 25% of the rent

collected under the tenancy.

4.

The development and use of the said land for the said purposes by the Secretary of State shall be subject to the Special Conditions set out in the Schedule hereto which shall be binding upon him except in so far as, in the interests of the security or defence of : Hong Kong, the Hong Kong Government may hereafter agree that compliance

therewith may be suspended.