ENCLOSURE

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sir,

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2.

Pear C NOV 18

Hong-Kong, 12th. September, 1898.

In reply to your letter No.563 of the 5th,ul-

timo, regarding the subject of the Government granting a period

of not more than 75 or 99 years' lease on all Crown Land in

the Colony and asking me to express my views as to how it will

affect future land sales in Victoria, I have the honour to in-

form you that such a step will be viewed with great disfavour

by all the Chinese and will have a very injurious effect on

all land sales in future.

The reasons are as follows:-

1. Nearly all the Chinese have been under the

impression that after the expiration of the term of 999 years

or 75 years in all the existing leases granted for property

in Victoria or in outlying villages, as the case may he, that

they could always apply to the Government for more extension

of time without any difficulty or increase of Crown Rent what-

ever. They have never had any idea that the Government may con- fiscate a part or the whole of their property including te- nants' improvements at the expiration of the lease.

2. In China all Government lands are sold with

The Hor.R.D.Ormsby,

Director of Public Works.

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