No. 1209/1912

Colonial Secretary's Office, Hongkong, 28th February, 1914

74

Sir,

I am directed to inform you that His Excellency the Governor has had under consideration your letter of the 19th November relative to the terms imposed by this Government in respect of the lease of an area which it is desired to take up for the purposes of a Portuguese Reservation.

1. His Excellency is in sympathy with the objects of the Scheme, and he cannot agree with your contention that this Government has adopted a hostile attitude towards it. After full consideration of the points raised in your letter under reply, he is prepared to recommend the lease to the Secretary of State for the Colonies subject to the modifications shown in the revised draft regulations which are enclosed herewith. His Excellency hopes that you will be able to see your way to accept the terms now proposed.

1. With regard to the concluding paragraph of your letter, as it was hoped that a satisfactory arrangement might still be arrived at, the copies of documents and correspondence which have passed between this Government and yourself have not been forwarded to the Secretary of State pending this further reference to you.

I am, Sir,

Your obedient servant,

(Signed) Claud Severn

Colonial Secretary.

Additional Information

The Secretary of State has decided that with regard to compensation for tenants' improvements at the expiration of leases, the principle that the whole value of tenants' improvements will not be confiscated at the end of a lease shall apply to renewable Leases in the Colony.

(Signed) C.3.