CO129-503-2 Tenure of new territories in view of Chinese situation 19-1-1927 - 8-8-1928 — Page 18

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5.

On the second question I am advised

that from a strictly legal point of view, it

would not be proper to grant leases which would

purport to Enure for a term longer than the title

of the lessor. If therefore the question be

approached from this aspect, the deduction is

that the Hong Kong Govt. should confine itself

to granting leases the term of which would not

exceed the unexpired period of the lease from China.

On the other hand, I appreciate that if this

course were followed the result might be that

lessees would be denied that security of tenure

which is essential if development is to be encouraged.

would

Furthermore, it must be expected that it will become

generally known that it was the policy of the Hong

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Kong Govt. to differentiate

between leases in Hong

Kong and leases in the New Territories. The inference

might then be drawn that H.M. G. proposed eventually

to restore the New Territories to China, and if

this should be the case, an atmosphere of uncertainty

and dismay might be created, which would effectively

check development in the leased area, and would

also prove a source of embarrassment to the Colony

itself