CO129-285 - Acting Governor Major Gen Black - 1898 [9-10] — Page 366

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Sir,

359

20014

ENCLOSURE 7

Real C NOV DE

Hong-Kong, 29th. August, 1898.

I have the honour to acknowledge the receipt

of your letter No.563 dated the 5th. instant with reference to

the recent decision of the Right Honourable the Secretary of

State for the Colonies to reduce the period of land tenure

in future in the Colony from one of 999 years to 75 or at the

outside 99 years.

2. Complying with your request for my views on

the subject, I have the honour to state that this decision if

permanently enforced, would materially tend to keep away legi-

timate extension investors in landed property in the Colony.

The form of a virtual perpetual lease (1.e. that for 999 years)

beuficial has long ago been recognised as the only really purificiał

form of lease that would encourage investments in leasehold

property in the Colony to any very large extent.

3. Indeed, from the very earliest period of the

Colony's settlement purchasers of land although saguinely, ne-

vertheless honestly believed themselves entitled to receive

perpetual leases for the land they had originally bought.

The Hon. R. D. Ormsby,

A

4.

Director of Public Works.