ENG-1963 — Page 21

6

REVIEW

some instances, the rate of annual rent at £20 a quarter acre at which inland town lots had been sold was too low, and in others, too high, further recommended that all lots, other than marine, that had hitherto been granted or occupied should be classified and rated according to a scale determined with reference to locality. This scale varied from £160 to 10/- an acre a year.

It would appear that the report gained acceptance since a few weeks later, on 22nd January 1844, the second series of auction sales took place comprising 101 lots aggregating 25 acres and fetching a total annual Crown rent of £2,562. The term of lease was 75 years from 26th June 1843 (the date of ratification of the Treaty of Nanking) and the sale included marine and inland lots situated north and south of Queen's Road between Pedder Street and Ice House Street and along Wellington Street, Pottinger Street and Hollywood Road. In his despatch of 31st January 1844 the Secretary of State adopted the period of 75 years and confirmed disposal by auction, bidding to turn on the amount of annual Crown rent.

So ended a period of uncertainty and dispute between the local interests and the Home Government. It is not surprising that the local interests at that time desired not only cheap access to land but also perpetual title without competition. There is also no doubt that it was greatly to the later advantage of the Colony that the Home Government maintained the principle of auction and leasehold tenure.

PRINCIPLES AND PRECEDENTS

The Island of Hong Kong and its Dependencies became the 'Colony of Hong Kong' by Royal Charter dated 5th April 1843, nearly two years after the first land sale, and the Governor received authority to make and execute grants of land subject to such Instructions as Her Majesty might address to him. Sir Henry Pottinger in an earlier notice dated 22nd March 1842 had advised Hong Kong residents that 'no purchases of ground from private persons . . . . will be recognized. . . . it being the basis of the footing on which the Island of Hong Kong has been taken posses- sion of.... that the proprietary of the soil is vested and appertains solely to the Crown'. Subsequently Her Majesty's Instructions,