Enclosure 1

Supreme Court House, Hongkong, 17th March, 1909.

C.O. £4727

ALGR 24 JUL CS

437

I have the honour to acknowledge your letter No. 3072/08 dated the 15th March in which you inform me that standing instructions of the Secretary of State for the Colonies preclude the Hongkong Government from giving their consent to the renewal of the Lease of Rural Building Lot No. 1 on the terms which I suggest but that there is no objection to the granting of new Leases for the various portions into which the lot is now divided in place of the existing lease, such new leases to terminate at the date of the termination of the existing Lease.

In answer, I would respectfully point out that I do not ask the Government to renew the Lease of Rural Building Lot No. 1 but am anxious to know whether the Government is prepared to accept a surrender of the old Lease and to grant new Leases to the present owners of the property, such new Leases to be for 75 years from date and to contain a clause entitling them to a renewal for a further term of 75 years at an increased Crown Rent.

I should be obliged if the Government would submit my application to the Secretary of State for the Colonies and ascertain from him upon what conditions he would authorise the Colonial Government to accept a surrender of the present Lease and grant new Leases to the present owners of the property upon the same terms upon which land in the Colony is now leased by the Government.

I have etc.,

(Sd.) H. L. Dannys.

Hon. Mr. P. H. May, C.M.G., Colonial Secretary.

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