(a)
Resume
(I) CHAMBER OF COMMERCE SPECIAL
Historical survey,
20
12.
COMMITTEE REPORT.
1. Leases in the Colony were originally granted for 75 years but in his despatch No. 766 of 4th December1848 Earl Grey authorized the Governor to grant these leases for a term of 999 years. An option was accordingly given to all tenants of such leases to obtain a free extension of their lease for a further 942 years. In 1851 Earl Grey further expressed his view that biddings for Crown Land should not be in the form of an advance of rent but that such property should be offered for lease at a rent determined by the Crown Solicitor and competition be reserved to the amount to be paid for premium. (SS.8-9).
2. In the 1880's the issue of 999 year leases ceased and about the same time the 75 year leases without option of renewal which form the subject of the present representations were introduced. ($10).
3. In 1898 a standard lease for a period of 75 years, renewable for another 75 years, without payment of premium, was introduced, Crown rent for the second period to be fixed by the Director of Public Works at the fair and reasonable rental value of the ground at that date. These leases have become the normal leases for the Colony.( SS.10-11).
4. The same upset price was asked for lands put up for public auction on leases of 75 + 75 years as had been asked for those on leases of 75 years. No agitation arose on the part of the 75 year leaseholders for an equivalent concession. The reasons for this were probably (a) the question of renewal would not arise in the lifetime of the great majority of the holders concerned: (b) that it was generally believed that the terms of Mr. Joseph Chamberlain's despatch No.132 of 23rd May 1898 (see quotation on p. 4 of Report enclosed in 6) implied the conversion of their leases into leases of 75 years + 75 years: (c) the widespread ignorance in Hong Kong of the English law of leasehold. "In fact, a general understanding grew up that at the end of the 75 year leases, Crown rents would be increased to the rates then prevailing in the locality but that no other expense would be incurred".
(SS.17-19).
5. The view that the public never expected the Government to insist on its "pound of flesh" is confirmed by certain passages in the Report of the Land Commission, 1886- 87, which was presented to the Legislative Council by the Governor and to that extent received official approval (SS. 21-23).
6. The point of view expressed in the Land Commission's Report was also supported by Mr. Joseph Chamberlain's despaton No. 132 of 23rd May 1898 which stated that in future leases are to contain "suitable provisions to meet the objections raised by the Land Commission of 1886-87 viz. that the Crown should not at the expiration of leases confiscate the whole value of the tenants improvements". In saying this the Secretary of State abrogated the application of normal leasehold procedure on behalf of future leaseholders and so morally committed himself to extending the same concession to the then existing 75 year leaseholders. (5.24-26).
(b)
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