CO129-572-10 Rent Commission 14-3-1938 - 7-6-1938 — Page 89

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No.32/1680/31c.

Enclosure No. 3.

Colonial Secretary's Office,

Hong Kong.

8th November, 1937.

102

END

Sir,

I am directed to acknowledge the receipt of the

letter of the 19th October sent by yourself and the Chinese

members of Legislative Council on the subject of the alleged

profiteering in rents.

2.

A

s suggested in pars raph 7 of your letter the rentals

in the list enclosed with it have been compared with the

assessment valuation in 1935.

The examination discloses that

are still in the majority of

the increased rents now demand

cases less than those charged in 1933; and where comparison with

1933 is not possible the Assessor is of the opinion that the

rents now demanded are in most cases not unreasonable having

regard to the rents charged for similar properties.

As will

be observed, the cases in which the increases appear to be

abnormal are few and it is not unlikely that further investiga-

tion would disclose circumstances justifying the increases.

3.

It is felt that Government control of rents or prices,

with all the interference with ordinary business which it

involves, is a step to be avoided unless the situation becomes

really serious, principally because the enforcement of any

restriction of rents would be very difficult especially in the

case of rents charged by principal tenants to their sub-tenants.

Government has given full consideration to the adoption of such

a course of action and it is its considered opinion that

existing circumstances do not justify such intervention.

The Honourable

Mr. R.H.Kotewall, C.M.C.,LL.D.,

Hong Kong.

I am, Sir,

Your obedient servant,

(Signed) A. G. CLARKE.

p. Colonial Secretary.