CO129-285 - Acting Governor Major Gen Black - 1898 [9-10] — Page 356

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ENCLOSURE 3

Reat C NOV 36

Hong-Kong, 9th. August,I

1898.

We have the honour to acknowledge the receipt

of your letter No. 563 dated 5th. instant asking us to briefly

give you our views on the subject of the change decided upon

by the Secretary of State in regard to Crown Leases, viz., that

no leases in future be granted for a longer period than 75

years or at the outside 99 years.

We think that the immediate effect of the

change will be to cause an almost total stoppage of land sales

for valuable buildings as no one would sink money in expen-

sive buildings on so short a tenure. Another effect would be

that the existing leases for 999 years would become unduly

enhanced in value. In course of time no doubt land will be

applied for as urgent necessity for it arises but will not

we think realise anything like as much as formerly for the

reason that where possible people will prefer to buy existing

999 years leases even if they have to pay more. Possibly the

sale of land for Chinese houses may not ultimately be much

affected for the reason that the buildings likely to be erect- The Hon.R.D.Ormsby,

Director of Public Works.

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