2.

96

represented by the unnumbered blocks ranged beneath the

walls.

2.

The reason why the "owners" of these houses

received only short-term leases instead of the long-term

lease co-terminous with our lease of the New Territories

which was granted to other owners of property in the leased territory, lies in the fact that Kowloon City was occupied

by force of arms in circumstances which were held to be

"inconsistent with the military requirements for the

defence of Hong Kong" and therefore to justify the rescission effected by Her late Majesty's Order in Council of 27th December, 1899, of the provision for the continuance of

Chinese jurisdiction in the "city" contained in the Order in Council of 9th June, 1898, and the Convention between

Great Britain and China of the same date.

3.

The distinction in tenure thus made may in a sense be technical, if not arbitrary, so far as the non- official buildings are concerned, although their owners at the time of the capture of the "city" probably included officials or families of officials whose jurisdiction it was considered necessary to terminate. Be that as it may, steps had to be taken sooner or later to remove these insani tary dwellings and their adjuncts, and it was considered convenient to take them in connection with the expiration of the current five year term on 31st December, 1933, a year's grace being given in which to make arrangements for the change.

4.

The Government's original proposals were - (a) To form a site for a new Chinese village at the point marked "A" on the smaller scale plan.

(b)

To grant suitable blocks of land on this site to the "owners" of houses in the "city".

(c) To pay cash compensation to the "owners" equal

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