CO129-389 - Governor Sir Lugard Acting Governor Claud Severn - 1912 [3-4] — Page 135

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Hon. Colonial Secretary,

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(.98)

.1.4.9

.min od ber 19191

I agree with His Excellency that in any course which may hereafter be adopted, whether by legislation or otherwise, it is necessary that it "should be limited to certain specified areas which "are contiguous to or command any battery or other defensible works, *together with certain specified foreshore" as may be under lease by Ordinance 15 of 1901.

Baras. 2 and 5 (a).

As regards the future sale of private land within the defined area there may be inserted a covenant in the Crown Lease that the land shall not be sold, sublet or mortgaged or works or buildings constructed withtout the consent of the Governor, who would on such application consult the Naval and Military Commanders. So as regards future sales legislation would not be necessary. Such a cove- -nant may and I think probably would seriously affect the value of the land and depreciate its value as a security.

As regards land already alienated the Local Defence Committee admit (para. 7) that it is probably impracticable to impose any restriction in the nature of legislation, and I agree that

such legislation would only be justified by very exceptional circumstanc- -es and would necessarily provide for compensation based on the usual arbitration methods. Otherwise a serious damage would be inflicted on

owners or mortgagees who have purchased or invested on what was regarde

-ed as safe and unassailable security. It seems that the more feasible way of acquiring possession in such cases would be for the Governor-in-

-Council to resume the land required under the Crown Lands Resumption

Ordinance 1900 (10 of 1900). That Ordinance provides for compensation

by a Board of Arbitrators.

Para. 5 (b).

I regard the sugestion that the Crown Lease

re the alienation of land should contain a condition "that no shares *in the Company could be held by anyone except a Brittish subject" as impracticable in a cosmopoliten community like Hongkong, and of very

far reaching effect, and I would observe it is in advance of any pro-