the nature of their holdings and said nothing about it to
the officials, although local custom usually required that
they should get permission from the village Elders, who in
some cases made a charge, in the nature of a fine or premium, for grant of such permission. The Canton Authorities have recently held an extensive investigation into the validity of title deeds, for the purpose of raising
funds, and it is reported that a very large number of such
deeds have been found to be not in order.
6.
For convenience of administration the titles
to land in the New Territories have been defined by Crown
leases which are coextensive with the lease of the
Territories and do not curtail the rights possessed by the
landowner under Chinese law and custom.
7.
It has been ordinarily the practice of recent years to allow conversion of an agricultural lot into a building lot without premium but subject to the payment of
such increased Crown rent as would secure to the Government
a proper share of any enhancement of the value of the land
which has resulted from the development or anticipated development of the district in which the lot is situated. In the case however of places where extensive development is taking place, premium is charged on conversion at a rate equivalent to the difference between the upset price of Crown building land in the neighbourhood and the value of agricultural land used as such.
8.
I am satisfied that the charging of a premiu in such cases is not an infringement of rights enjoyed by a landholder under Chinese law. There is little doubt that
the Chinese Authorities could withhold permission to build and could make their own terms for the grant of such permission. In a district where there is a sudden land boom and everybody wants to convert at once, it is obviously
impossible