CO129-507-6 China- position of Hong Kong New Territories 8-9-1928 - 17-11-1928 — Page 11

Draft.

MEMORANDUM.

Land Leases in the New Territories of Hong Kong.

A conference was held in Sir V. Wellesley's room

at the Foreign Office on wednesday, November 7th, to

discuss the question of land leases in the New Territories

of Hong Kong. The following were present: Sir Cecil

Clementi, Sir G. Grindle, Mr. Ellis, Mr. Caine; Sir V.

Wellesley, Mr. Pratt, Mr. Ashton-Gwatkin.

Sir Cecil Clementi explained that although the

Hong Kong territories were divided into three parts,

viz. the Colony of Hong Kong, old Kowloon and new Kowloon (i.e. the leased territory) yet for practical purposes they constituted a single entity that of Hong Kong Harbour. The Southern side of the harbour (i.e. the colony) was

almost if not quite fully developed; the Northern side (1.e. the leased territory) was beginning to develop and

would develop rapidly if security of tenure were assured.

Persons and firms interested would take up land for large

undertakings only if granted leases beyond the period for

which the territory had been leased by the Chinese Govern-

ment to His Majesty's Government, i.e. 99 years from 1898.

It was pointed out that the lease from Government to

Government was not merely a land lease, but a lease of all

sovereign rights; this would include the right to dispose

of land and allot leases even beyond the term of the head

lease. Sir C. Clementi therefore urged that, in the best

interests of the colony and of the new territories them-

selves, he should proceed to grant leases for periods be- yond the balance of the 99 years.

Sir V. Wellesley pointed out the danger of seeming to

dispose....