16. A. W. Looker
I do not think it is necessary for G.D. to be represented at the interview, but we should
6 hear what is settled. Walden. wishe
9.1
? Jaunay 13
Mr.Looker called yesterday and
discussed this question with Mr.Gent, Mr.Duncan
and myself.
For the most part he recapitulated the arguments in the Chamber of Commerce Special Committee of Report, supporting from his own experience their allegations that it had been for years generally accepted in Hong Kong that these 75 year leases would be renewed on their expiry without any demand for a premium. He definitely asserted that this did not arise from any ignorance on the part of the professional classes in Hong Kong of the English law of Leasehold as asserted by Mr.Butters. On the contrary, from his own practice in Hong Kong he knew that solicitors and assessors were well aware of this English law, but that they took it as their normal rule of procedure that its provisions will not be applied in the Colony, and it was not until what Mr.Looker referred to as a new generation in Government
that any
question of so applying leasehold procedure in respect of these leases arose. Mr.Looker admitted that his researches into amortization had shown one case where the Government assessor had made allowance for amortization in assessing the value of the estate on the Peak.
sand
It was clear from what Mr. Looker sats that there would be the strongest opposition among the leaseholders to the exaction of a premium as such. They recognised, however, that they would have to pay an increased Crown rent, and Mr.Looker though he asked that he should not be quoted as saying so, seemed to think that they would be ready to accept an increase even above "the fair and reasonable" value of the lease which would take into account the Government reversionary interest, while at the same time making allowance for the development of the lease by the holding tenant. The Government of Hong Kong has said that it does not care if it gets its reversionary interest in the form of a premium or an increased ground rent, and since the leaseholders seem to attach importance to the form, I think the Government will be well satisfied with the substance by taking an increased rent on the lines mentioned above. The number of leaseholders concerned is clearly very small, though we do not know what proportion it forms to total leases.
It was decided to leave taking up the question with Hong Kong until Sir Geoffry Northcote had returned to the Colony, but in anticipation of that I have tried my hand at
a