(1) Where any land in a State is reserved for any federal

85. (1) Where any land in a State is reserved for any federal purposes, the Federal Government may require the State Government, and it shall then be the duty of that Government, to cause to be made to the Federation a grant of the land in perpetuity without restrictions as to the use of the land, but subject to the payment of a premium to be determined in accordance with Clause (2) and to the payment annually of an appropriate quit rent. (2) The premium referred to in Clause (1) shall be equal to the market value of the land reduced by— (a) the market value of any improvements made (otherwise than at the expense of the State) while the land was in use for federal purposes; and (b) the amount, if any, paid by the Federation, or paid before Merdeka Day by the Government of the Federation of Malaya, in respect of the cost of acquisition of any interest in the land by the State Government. (3) Without prejudice to Clause (1), where any land in a State is reserved for any federal purposes, the Federal Government may offer to release the land to the State on condition that the State pays to the Federation the market value and the amount mentioned in paragraphs (a) and (b) of Clause (2); and if the State Government accepts the offer the reservation shall cease. (4) Except as provided by this Article, land in a State which is reserved for federal purposes shall not cease to be so reserved, and all land so reserved shall be controlled and managed by or on behalf of the Federal Government, and the Federal Government may grant any right of occupation, control or management, or a tenancy or lease, of the whole or any part of such land, to any person— (a) for the use of the land by such person for any duration for the federal purpose for which it is reserved, or for any purpose ancillary or incidental thereto; or (b) where the Federal Government is unable for any reason to use the land for the time being for the federal purpose for which it is reserved, for its use by such person for any purpose other than a federal purpose, for such duration and on such terms and conditions as the Federal Government may determine. [Article 85] Federal Constitution 80 (5) In this Article the reference to land in a State reserved for federal purposes includes— (a) any land which was reserved before Merdeka Day in accordance with the provisions of any law then in force in the State for any purpose which has become a federal purpose after Merdeka Day; (b) any land reserved for any federal purpose after Merdeka Day in accordance with the provisions of any law for the time being in force in a State; (c) any State land referred to in the repealed Clause (4) of Article 166; and (d) any land in a State reserved for federal purposes by virtue of Clause (7) of Article 83. Disposition of land vested in the Federation