The New Territories were leased from China for 99 years from 1st July 1898. Then followed the New Territories Order in Council of 20th October 1898, by clause 1 of which those territories were declared to be
"part and parcel of the Colony of Hong Kong in like manner and for all intents and purposes as if they had originally formed part of the said Colony.
By Clause 3 of the same Order-in-Council it was ordered that, from a date to be fixed by the Proclamation of the Governor, all laws and Ordinances which should on that date be in force in the Colony should take effect also in the New Territories. The laws in force in the Colony of Hong Kong at that date were such of the laws of England as existed on the 5th April 1843,
"except so far as the said laws are inapplicable to the local circumstances of the Colony or of its inhabitants.
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and local Ordinances modifying the laws of England in force on 5th April 1843." The Secretary of State instructed the Governor in a despatch dated 6th January 1899-
"On the principle that the new territory shall be taken to be and so far as possible be treated as an integral part of the Colony, it is desirable that as many of the existing laws of Hongkong as are applicable to its circumstances should be at once applied, the administration of the laws being carried out with tact, discretion, and sympathy with native custom and prejudice
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A week before the British flag was hoisted at Taipo and the territories were taken over from the Chinese authorities the Governor, Sir Henry A. Blake, issued a Proclamation which included this passage:-
"I would also impress upon you that this territory having been leased by His Imperial Majesty the Emperor of China to Her Britannic Majesty the Queen, as subjects of Her Majesty's Empire, your commercial and landed interests will be safeguarded, and that your usages and good customs will not in any way be interfered with."