CO129-285 - Acting Governor Major Gen Black - 1898 [9-10] — Page 368

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CO P Y

Sir,

ENCLOSURE 8

0.0.

381

20014

Roof & NOV 38

The HKong Land Investment & Agency Co.Ltd.

Hong-Kong, 1st. September, 1898.

In reply to your letter enquiring my views on

the proposed reduction in the term for which leases are to be

granted by the Crown in this Colony.

I am of opinion that it will mean a large amount of money will cease to be invested in the Colony in

house property, not only by persons with drawing from such in-

vestment by not purchasing land, but money will not be invest-

ed nearly so freely on mortgage on account of the shortness

of the proposed term as against the present 999 years leases which are considered as good as freehold for valuation pur-

poses. The general effect will be to abnormally increase the

rents of not only the existing tenements but all new build- ings erected on the proposed short/Teases, in order that the Investor may protect himself against losing all the value of his rateable improvements which will revert to the Crown in

so short a time.

I may here mention I fail to see what reason

there can be for altering the present length of term in Crown Hon.R.D.Ormsby,

Director of Public Works.

Leases