ENG-1962 — Page 212

LAND AND HOUSING

171

instalments over an agreed number of years. The majority of lessees avail themselves of the latter method of payment. For this reason the revenue in any one year is relatively small, but since payments continue for upwards of 80 years, the total revenue involved is considerable. The 1960 terms provide for a maximum of 20 annual instalments and interest of 10 per cent. On re-grant, the boundaries of these lots are adjusted to conform with street improvement lines, etc, and where land is needed for major re- planning schemes the leases will not be re-granted. In these latter cases the Government has announced its intention to pay ex gratia compensation for buildings.

There is a shortage of unleased Crown land in the New Territories suitable for sale by public auction for concentrated development. Consequently there is much interest among developers in securing permission for the exchange of agricultural land for building land, on payment of a premium. The amount of building land that can be obtained in this way depends upon the location of the site selected. In normal circumstances exchanges for in- dustrial or high density residential purposes are only permitted where the agricultural land is within areas for which layout plans have been approved, and it is necessary for Crown lessees to surrender approximately five feet of agricultural land for every two feet of building land to be re-granted. In each case the premium payable is equivalent to the difference in total value of the land surrendered and the land re-granted.

Following the publication in, 1960 of a statement of Govern- ment's land policy in the New' Territories, the Heung Yee Kuk submitted a petition in February 1961, asking for extensive changes in this policy. In August the District Commissioner, New Territories, replied at length to the Kuk, explaining in detail why Government could not accept this petition. The Heung Yee Kuk has never accepted Government's explanation and continues to campaign for the modification of the policy.

Government Land Transactions. The system of selling Crown land in the urban area in accordance with programmes announced in advance continued during 1962. During the latter part of the year auction sales took place weekly, with a maximum number of 11 lots being sold on the same day. The demand for industrial