COPY
sir,
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ENCLOSURE 3
Reat C NOV 36
Hong-Kong, 9th. August,I
1898.
We have the honour to acknowledge the receipt
of your letter No. 563 dated 5th. instant asking us to briefly
give you our views on the subject of the change decided upon
by the Secretary of State in regard to Crown Leases, viz., that
no leases in future be granted for a longer period than 75
years or at the outside 99 years.
We think that the immediate effect of the
change will be to cause an almost total stoppage of land sales
for valuable buildings as no one would sink money in expen-
sive buildings on so short a tenure. Another effect would be
that the existing leases for 999 years would become unduly
enhanced in value. In course of time no doubt land will be
applied for as urgent necessity for it arises but will not
we think realise anything like as much as formerly for the
reason that where possible people will prefer to buy existing
999 years leases even if they have to pay more. Possibly the
sale of land for Chinese houses may not ultimately be much
affected for the reason that the buildings likely to be erect- The Hon.R.D.Ormsby,
Director of Public Works.
ed
800.
&C. 1
8cc - *