Sessional_Paper_1947 — Page 149

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STATEMENT ON THE RENEWAL OF PIER LEASES.

1. Government has recently given full consideration to the question of the renewal of pier leases which uniformly terminate on 31st December, 1949.

2. Sir David Owen, who visited Hong Kong in 1941 to report on the future administration and development of the port, advised that pier rents should not be revised until shortly before the expiry of the present leases. The leases then had about nine years to run and there was not at that time the extensive need for immediate expenditure which is now required for the rehabilitation of war damage or reconditioning after the unavoidable neglect during the war years.

3. Sir David Owen's recommendations were accordingly re-examined by Mr. T. M. Hazlerigg, C.B.E., M.C., and the Director of Public Works, in the light of a report from the Building Reconstruction Committee and their joint recommendations with certain amendments proposed by the Port Committee have now been adopted by Government.

4. The obvious defects in the forms of pier lease now in use will render necessary the adoption of a new form of lease and therefore the "renewal" of the old leases is out of the question. It is desired to proceed with the grant of new leases without delay so that lessees may not be hindered from rehabilitating existing piers and from proceeding with plans for the construction of new piers.

5.

.

The discretion to issue new leases or to enter into agreements for the grant of new leases will be exercised in favour of the lessee where the pier

(i) is deemed by Government to be needed for the operation of the port; (ii) is appropriately situated and properly constructed for the service for which it is to be used, and

(iii) has been kept in a reasonable state of repair, war damage and unavoid- able neglect during the war years being taken into consideration, and

6.

(iv) has been consistently put to a proper use.

No new leases will be granted or agreement for grant entered into where the position of the pier is such as to be likely to interfere with any scheme for port development which can now be foreseen. The whole circumstances and the bona fides of any application will be carefully investigated where the lessee is known to have sub-let or otherwise disposed of possession of the pier or any part of it.

7. Leases will be granted in the first instance for 15 years from 1st January, 1950, with an option for renewal for a further term of 15 years which shall sub- sequently be extended for yet another term of 15 years subject to mutual agreement between Government and the lessee. Rentals will be re-assessed at the end of each fifteen year period. No lease will continue beyond 31st December, 1994.

8.

Every lease will contain the following covenants :

(i) For due repair and maintenance including maintenance in a cleanly condition, and for handing over in a serviceable condition on the expiration of the

term.

(i) Not to assign, sub-let or otherwise dispose of or part with possession of the pier without the written consent of the Governor.

(iii) At all times to permit inpection by authorised officers of the Government. (iv) Not to use or permit the pier to be used for any purpose other than the lessee's business without the written consent of the Governor.

(v) Not to make any alteration or extension of the pier or to erect any structure thereon without the written consent of the Director of Public Works.