:BB
No.32/1680/31c.
Enclosure No. 3.
Colonial Secretary's Office,
Hong Kong.
8th November, 1937.
102
END
Sir,
I am directed to acknowledge the receipt of the
letter of the 19th October sent by yourself and the Chinese
members of Legislative Council on the subject of the alleged
profiteering in rents.
2.
A
s suggested in pars raph 7 of your letter the rentals
in the list enclosed with it have been compared with the
assessment valuation in 1935.
The examination discloses that
are still in the majority of
the increased rents now demand
cases less than those charged in 1933; and where comparison with
1933 is not possible the Assessor is of the opinion that the
rents now demanded are in most cases not unreasonable having
regard to the rents charged for similar properties.
As will
be observed, the cases in which the increases appear to be
abnormal are few and it is not unlikely that further investiga-
tion would disclose circumstances justifying the increases.
3.
It is felt that Government control of rents or prices,
with all the interference with ordinary business which it
involves, is a step to be avoided unless the situation becomes
really serious, principally because the enforcement of any
restriction of rents would be very difficult especially in the
case of rents charged by principal tenants to their sub-tenants.
Government has given full consideration to the adoption of such
a course of action and it is its considered opinion that
existing circumstances do not justify such intervention.
The Honourable
Mr. R.H.Kotewall, C.M.C.,LL.D.,
Hong Kong.
I am, Sir,
Your obedient servant,
(Signed) A. G. CLARKE.
p. Colonial Secretary.