ENG-1954 — Page 72

HONG KONG ANNUAL REPORT, 1954

these cases, and other leases will become due for renewal in rapidly increasing numbers as further categories fall due. A further statement in 1952, intimated that Government would be prepared to pay ex-gratia compensation for buildings lawfully erected on certain Kowloon inland lots, the leases of which could not be renewed owing to town planning require- ments, and provision is made for possession of such lots to be retained until the land is required by Government. During the last financial year the revenue from renewal of this type of lease was $361,284.

It is Government policy to sell leases to the highest bidder at public auction, but in certain instances land necessary for public utilities is sold by private treaty. It has also been the policy to sell land for schools, clinics and certain other charitable purposes by private treaty at preferential rates varying from a purely nominal figure up to market value.

The revenue obtained during the financial year 1953/54 from the sale of land by auction amounted to $2,733,000 while that arising from sale by private treaty, extensions of area and grants in exchange was $2,937,000.

In order to encourage home building, private treaty sales to individuals and to development companies were introduced for a short period but the results were disappointing and have now given way to various schemes for the grant of land at roughly half the market value for the erection of workers' flats. In addition a number of sites, totalling II acres, have been made available to the two Housing Societies and two sites totalling roughly 10 acres have been made available to

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