581692-1940-Compensation-Defence-Regulations-1940 — Page 9

THE HONG KONG GOVERNMENT GAZETTE, MAY 10, 1940.

(2) Any compensation under paragraph (1) shall not-

(a) in a case where the owner of the goods immediately before the requisition or acquisition, was a person who had produced the goods with a view to the sale thereof, exceed the aggregate of→

(i) the cost reasonably incurred by that person in pro- ducing the goods, and

(i) the profit which he might reasonably have been expected to make on a sale of the goods effected by him immediately before the requisition or acquisition, or

(b) in a case where the owner of the goods, immediately before the requisition or acquisition, was some person other than the producer of the goods, and the goods had been bought by that person with a view to the sale thereof, exceed the aggregate of—

(i) the price which it was reasonable for him to pay for the goods when they were so bought by him, and

(ii) the profit which he might reasonably have been expected to make on a sale of the goods effected by him immediately before the requisition or acquisition;

and, in assessing such compensation in any other case, no account shall be taken of any profit which might be expected to be made on a sale of the goods:

Provided that if, at the time when any goods are requisi- tioned or acquired on behalf of the Governor in the exercise of emergency powers, the price or maximum price at which such goods may be sold is fixed by law, this paragraph shall not be taken to authorize the assessment,

by way

of compen- sation under paragraph (1) in respect of the requisition or acquisition, of a sum exceeding that price or maximum price, as the case may be.

In the preceding provisions of this paragraph the refer- ence to a person who had produced the goods with a view to the sale thereof, and the reference to the producer of the goods, shall be construed as including a reference to his personal representative or any person carrying on business in succession to him by virtue of any assignment or transmission by operation of law.

(5) The compensation payable under these regulations in respect of the requisition or acquisition of any goods shall include a sum equal to the amount of any expenses reason- ably incurred, otherwise than on behalf of the Governor, for the purpose of compliance with any directions given on behalf of the Governor in connexion with the requisition or acquisition.

(4) Any compensation under paragraph (1) shall accrue due at the time of the requisition or acquisition of the goods. and shall, subject to the following provisions of these regula- tions, be paid to the person who is then the owner of the goods.

(5) Any compensation under paragraph (3) shall accrue due at the time when the expenses in respect of which the compensation is payable are incurred and shall be paid to the person by whom or on whose behalf those expenses were incurred.

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