CO129-513-4 Land leases in the new territories 8-11-1928 - 29-7-1929 — Page 4

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

practice of granting leases running over the end

4

of our own lease were continued, the position

might arise in which the Hong Kong Government

had granted a lease of which the greater part was in what we may call the Chinese period in return for a large premium and no rent or very little rent.

The Chinese could then argue that the Hong Kong

Government was selling rights it did not properly

& hocheting the proceeds

possess, and even if we reply that the money was being spent on the development of the territory,

they might complain that we were squandering its

resources.

I am inclined to think, therefore, that

it will be useless to press the Governor's proposal.

His objections to the solution agreed upon with the

Foreign Office are not very clearly stated, but they

appear to hinge on the undesirability of stating or implying in any published document that there is

any

possibility of the termination of British control

of the New Territories. He says that it is

undesirable that the Government should admit that

the future of the New Territories is an open

question. I should have thought that it was very

desirable that the Government should make it clear

that this is an open question. If it is closed it

seems to me it must be regarded as closed against

us, not in our favour. The legal position is

perfectly clear, that at the end of the 99 years

the New Territories are pledged to revert to the

complete sovereignty of China. When that time

comes there is no doubt that we shall have to

insist for practical reasons their close connect ion with Hong Kong etc.)on some other solution of

their future, but it would be impossible for H.M.G.

to

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