ENG-1952 — Page 158

HONG KONG ANNUAL REPORT, 1952

a feature of the more modern Crown Leases, was not included. At the present time, except in New Kowloon and the New Territories, the normal lease term is 75 years but with the option for renewal for a further 75. In New Kowloon and the New Territories, however, being those portions of the Colony which are held under lease from China for 99 years from the 1st July, 1898, the lease term cannot of course extend beyond that period, and the practice is therefore, to express the lease term as being for the residue of the period of 75 years commencing from 1st July, 1898, with the right of renewal for a further period of 24 years, less the last three days.

After the War it became necessary to consider the position in relation to the continuation of the tenancies of a large number of properties held under Crown Leases about to expire, (being the first of the non-renewable Crown Leases granted during the last century for terms of 75 years without provision for renewal) and a public statement of Government policy in regard to the terms. upon which new Crown Leases of these properties would be granted was made in 1949. In this announcement the public was advised that the premium payable for the renewal of these leases would be confined to the full value of the land only, according to the rates prevailing in the particular locality at the time of application for renewal of the lease, and exclusive of the value of any buildings on the land. A further announcement, made in May, 1952, intimated that Government would be prepared to pay ex gratia compensation for buildings lawfully erected on certain Kowloon lots, the leases of which could not be renewed because of town planning requirements, and that owners would be permitted wherever possible to remain in possession of such lots until possession of the land was actually required by Government.

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