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thousand names if unregistered transfere once become the fashion.

It is necessary to insist strongly on

the principle that the Hongkong system is not a cheap system and not in any way adapted to the conditions of a country where the poverty is extrade,

I understand that in Hongkong the

Treisurer finds the collection as Crown Rent of aums below $3.00 to be unramunerative. But in the New Territory the Crowa Rant of an average holding varies between 10 cents and 20 cents per annum. Surely this seems to indicate that the conditions are essentially different and that it is necessary to look for a cheaper and simpler scheme of administration than we have in the Jolony.

The system I propose for the New Territory has not been evolved from my own inner conciousness, but fallons very closely the provisions of the Malacca bands Ordinance (No. IX of 1983) and the Malacca Oustomary Lands Transfer Ordi- nance (No. VII of 1901). In the ancient settlement of the 'Town and Fort of Malacca' conditions are not unlike those of the New Territory. Ther is little trade or commerce and the staple pursuits are padi planting ank market gardening. The tenure of the land: its cultivation: and transcission by inheritance are still governed by peculiar local customs. It has been found advisable to take special cognizance of these customs and hence we find that although the law of the Straits Settlements which is not widely different from thut of Hongkong is in force in Malacca get all Customary Land, that is to say land the suc- cession to which is governed by local Malay Ouston, is specially exempted from the general provisions of the Colonial Ordinances dealing with these matters ank is subject solely to the two Orliganoes I have mentioned above.

Here then is to be found an instance of two systems each applicable to a different set of conditions working side by side without inconvenience or confusion. The planter British or Chinese who takes up land for tapioca or rubber in Malacoa has nothing to do with the Ordinances govern- ing "Customary Land" but is given a Statutory Grant which cor- responds in the Straits Settlements to our Crown Lease in Hong- Kong.

Similarly in the Nen Territory every person taking up land who wants a Crown Lease may get one and come under the Hongkong Law. Again it is provided in Section 21 of my Ordinance that any Customary Land-holder who prefers the Hongkong system may surrender his "Extract" and obtain a Orowo Lease.

37th. August, 1902.

(Sa.) 8. B. J. 3. „

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