CO129-005 - Sir Henry Pottinger - 1844 — Page 195

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that a building cent per annum, costing $75,000 will stand. The owner in the annual interest of $7,500 in addition to the quit rent payable for the ground; and by the proposed form of lease would have to be added the annual depreciation of a property to be given up without compensation of any sort at the end of 75 years, forming altogether a very heavy annual burden, such as is without a parallel in any British or other Colony.

We trust therefore that your Excellency will see the expediency of modifying the terms of the lease, so far as to make it perpetual, Government still retaining the power of increasing the ground rent at fixed periods, say of 75 years, according to what may be the value of land in the Colony.

We have the conviction that this would tend greatly to the prosperity of the settlement. Indeed rather than expend money on building under the proposed tenure, most foreigners will prefer resorting to Macao, Canton, and the other Chinese ports where buildings can be rented on more moderate terms.

We may be allowed to point out to your Excellency that an adherence on the part of Government to the proposed terms of Lease would thus eventually be placing those who first commenced improving their property at Hongkong, and who from the sums already expended cannot withdraw from the occupation of their buildings without ruinous loss, on most unfavorable terms compared with others who have not yet done so.