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With two governments claiming jurisdiction over it, the Walled City fell between two stools, as one undertook minimal administrative responsibility to avoid diplomatic embarrassment, the other none at all. The result was a near vacuum of administrative function and authority.
After Chinese officials departed in 1899, the City's population was much depleted. Some of the original inhabitants stayed on. Their landownership was terminated by the Hong Kong government, which, in turn, granted them 5-year leases. The leases were necessarily short because of the awkward political circumstances. The government was in fact reluctant to grant land leases for any but public purposes and the Protestant Church became a major beneficiary of the situation, receiving several short-term leases to operate schools and charities in the City. In 1906, the Anglican Holy Trinity Church converted the former San-sheng (Three Saints) Temple into a chapel, the T'ien-kuo chiu-tao t'ang (Heavenly Kingdom Chapel). Sermons given every Wednesday and Sunday evening seem to have attracted many women and children from the neighbourhood, who might have attended as much for reasons of faith as for the entertainment.
The Church also obtained the lease of an official building to operate an old people's home, called the Kuang-yin yuan, and an alms house. Later, these were turned over to the Chinese Christian Churches Union which also ran a home for widows and orphans, known as Eyre's Refuge, in the large compound. In 1908, the Holy Trinity Church converted the former hsun-chien's office into a primary school, the T'ien-kuo A (Heavenly Kingdom) School, operating it until 1936. For some time around 1931, the Church's youth groups also held their activities there.
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The former Lung-chin Communal School was also put to good use. Between 1900 and 1905, it was the Land Court's office. Then the Secretary for Chinese Affairs took it over to run a free secondary school for over 300 students with funds from the Hou-wang Temple nearby. At one time, a public dispensary shared the premises. In this way, the schools and other charities, besides meeting the spiritual and material needs of the City's inhabitants,