CO129-587-8 Crown leases 18-4-1940 - 17-3-1941 — Page 64

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Colonial Secretary's Office, H.K. 18th Jɛnuary, 1899.

Sir,

With reference to my letter No.1879 of the 10th October last, I am directed to inform you that, after due consideration of the views expressed by you on the subject, the Secretary of State for the Colonies adheres to his decision that Leases shall in future be reduced from 999 years to 75 years or at the longest 99 years.

Terms will be embodied in future leases that leases will be renewed to the original Lessee or the Assignee in possession at the tire of the expiry of the lease upon such an advance in Crown rent as is justified by the then value of land and without fine for a further period of 75 or 99 years, and that in the event of the land being resumed by the Government for public purposes compensation will be given. I have, etc.,

W

T. SERCOMBE SMITH, Acting Colonial Secretar

The Secretary, Chamber of Commerce.

Reference at Annual Meeting.

At the annual meeting of the Chamber held on the 5th April, 1899, the Chairman (Mr. R. M. Gray) made the following reference to the subject:-

"The idea of shortening the periods of leases of Crown lends, in order that the Government should reap the benefit cf some of the unearned increment, has been extended to Hong Kong by the Colonial Office, although the circumstances are different from those ruling in the United Kingdom. After a brief trial of the system of short leases when the Colony was first started, the Government granted leases for 999 years (practically equal tc freehold, except in the point of Crown Rent), and for about half a century land has been sold in this Colony for that term, which the Chinese rightly consider as being quite as good as freehold as regards tenure. This policy has now, withrut any previous notice, been reversed, and your Committee, considering that the short period would be likely to adversely affect sales, and cause an unfair appreciation of existing properties, with a tendency to crowd the did lots, addressed a strong protest to the Secretary of State, through this Government, on the subject. Chamberlain was, however, not to be moved, and adheres to his decision, though expressing a readiness to embody terms in the leases providing for their renewal for a similar period at such an advance in Crown rents as seems justified by the then value of the land. No provision is made for a reduction in the Crown rent in the event of de

Mr