N CONFIDENTIAL ·
sir,
1747
13
¡REC
Reat 12 WNE
GOVERNMENT HOUSE.
HONGKONG. 1st December, 1914.
I have the honour to address you with reference to the subject of leases granted by Crown lessees before the outbreak of war to persons who now are enemy subjects. The question is of importance chiefly with reference to leases of offices to German firms, many of which have from two to seven years still to run, but there are also some cases of leases of private houses. The question is of importance as very large sums are involved. The rents of business offices in occupation of German firms vary from 8400 to 82,000 a month and for these offices alone I am informed that a sum of $140,000 per annum represents the total rental.
2.
The expulsion and detention of enemy subjects, and the appointment under the Alien Enemies (Winding up) Ordinance, 1914, of liquidators to wind up their affairs, rendered it necessary to enquire into the legal position with regard to such leases and to consider whether, in fairness to both or either of the parties con- cerned, that position should not be altered by legislation.
3.
I have been advised that, as a general rule, leases to enemy subjects made before the outbreak of war have not been determined either by the outbreak of war, or by their expulsion and detention, or by any subsequent local legislation, and also that rent probably accrues on such leases during the war.
4.
I enclose extracts from two minutes by the Attorney General on the subject, which show the view taken and some points to
be considered in discussing the policy to be adopted.
RIGHT HONOURABLE
LEWIS HARCOURT, M.P.,
&C.
&C.. &c.