The Sun.
London, England, 1845-11-05 00:00:00

THE

blishment in making immediate public declaration of my purpose to
move her Majesty's Government either to pass the lands in fee
simple for one or two years' purchase at the late rates, or to charge
them in future with no more than a nominal quit-rent, if that
tenure continues to obtain.
" My own object respecting the disposal of land- pending the
pleasure of her Majesty's Government was to secure to firms and all
other persona (British or foreigners) having permanent interests in
the country, sufficient space for their necessities, at oderate rates,
with as little competition as might enable parties to accommodate
themselves according to their respective wants ; I feel assured, upon
attentive reflection, that steady adherence to this rule will be found
mliit conducive to the well understood interests of the establish-
mOilt, and to the fair claims of persons upon the spot; parties
falling within the description I have specified, not yet supplied
wig). lots, will sown be in a situation to accommodate themselves.
g' May I request you, gentlemen, to circulate this letter ?
" I have the honour to be,
" Your most obedient humble servant,
"CHARLES ELLIOT,
" Chief Superintendent,charged with the Government
of Hong-Kong.
" To Messrs. Jardine, Matheson, and Co.,
and Dent and Co."

"To MESSRS. JARDINE, MATHESON, ♦ND CO., DENT AND CO.,
MACYICAR AND CO., &c.
" Colonial-office, Victoria, Hong-Kong, Aug. 25.
" Gentlemen,—l am directed by his Exeellency the Governor
to acknowledge the receipt, on the 23d inst., of your letter dated
the 13th, inclosing a memorial to Lord Stanley, and to inform you
that the said memorial shall be duly forwarded to his Lordship, ac-
cording to your wish.
" In the perusal of this paper several obser►ations have occurred
to the Governor and Council, which they consider the present a
convenient occasion slightly to notice.
" His Excellency's predecessor, Sir Henry Pottinger, in con-
sequence of complaints against the high land rents, similar to
those urged In the present address to Lord Stanley, appointed a
board of officers to value the lots disposed of at the early sales,
with the provision, that should any individual deem his lot over.
valued by the board, he should be at liberty to hold it at the ave-
rage rate at which similarly situated lots might be disposed of at
the approaching public sale. This sale took place not long after-
wards. The minimum price affixed to the lots was the same as
that placed on similar lots previously granted; and the result was,
that while the upset price of the lands amounted to 1,3001., they
were sold by auction for a rental of 2,0001., proving that the
former rates had not been unfair.
" The lots disposed of at the latest sales, with the full know-
ledge of the terms of existing leases, have continued to average as
high as at the preceding ones. Lord Stanley remarks in a recent
dispatch, that 'it would be difficult, as Sir Henry Pottinger has
observed, to apply any better test of value than sale in a fair and
open market.'
" With all the alleged discouragements and disadvantages, the
building of substantial private houses has continued uninterrupted
until the present year deprived Macao of its remaining English
merchants. If rents are now reduced to nothing at that place,
this must arise chiefly from its desertion, as at Canton the rents
and prices at that principal seat of the Chinese trade are noto-
riously exorbitant, and it is impossible to conjecture what they
would have been, but for the outlet and the advantages afforded to
the merchants of warehousing their goods in a British colony.
"The memorial states, that in a place nominally declared to be
a free port, every description of commerce or trade is a subject of
taxation or source of revenue.' The answer to this is the well-
known fact, that not a single customs duty is levied on the im-
port or export of a single article of commerce or consumption—
ne package is inspected by a Government officer in either landing
or shipping—no custom-house whatever is in existence; and,
although advised by her Majesty's Gevernment to levy a small
tonnage duty to pay the harbour expenses, his Excellency the
Governor has disobeyed his instructions rather than interfere with
the freedom of the port by imposing even 6d. a ton, when the
harbour dues at the five ports and at Macao are about 35.
" No Import duty whatever has yet been levied on even wines
or spirits—a productive source of revenue in other colonies. It
would be difficult to show that any direct tax whatever (unless
land rent be so termed) has been paid by the English portion of the
community. While an income-tax of 3 per cent, is paid by the
civil, military, and naval officers of the Government, in common
with their fellow-subjects in England, nothing of the kind is known
to the richest colonist of Hong Kong. It seems unfair and par-
tial, after the resources of the mother country have been profusely
expended in protecting the persons, and extending the markets,
of its mercantile subjects in China, that the greater part of the
future civil expenses of this colony should fall on the British pub.
lic, as an exception to most other colonies.
" The alleged absence of progress in the trade and population of
Hong-Kong can only be judged of by an appeal to facts. The bar-
bour-master'i official return shows that the European tonnage of
the half-year ending the 3lth of June last was 62,264, while in the
previous corresponding half-year it was only 49,371. It has been
admitted even by those opposed to the Government, that a growing
native trade in junks has commenced in spite of the 13th article
of the supplementaiy treaty. Mr. Gutzlaff reports that 120,000
pieces of cotton goods have been taken away by 13 junks in
this year.
" It is little more than a twelvemonth since life and property
were constantly endangered by the nocturnal attacks of banditti,
and 12,000 rupees of Government money carried off by force, the
soldiers who guarded it being murdered. A strong and effective
police, and the rigorous execution of the laws, have put an end to
this, and the consequences are seen in the increased numbers and
respectability of the Chinese population. The rapid rise of good
native shops in different parts of the town is visible to all, and at
the same time only one of the proofs which the Government pos-
sesses of an increase and improvement which mere allegations can-
not unsubstantiate.
" A rent of just 1,0001. per annum is at present paid for an in-
different house, which did not cost double that sum in building.
The daily and Increasing growth of dwellings on all sides, each sur-
passing the other in accommodation, must certainly tend to depre-
ciate such property as this. It is much better that it should, being
the natural result of that law by which supply increases with de-
mand, and price diminishes with supply, until all has reached a
more permanent level.
" With regard to the opium and the smaller licensed farms, which
(with the exception of Crown rents) form at present the chief
sources of revenue, these have been strictly adopted in their details
from Singapore—a place generally quoted as a model of free-trade
prosperity.
" His Excellency the Governor and the Legislative Council will
be happy to carry out any alteration which her Majesty's Govern-
ment may please to prescribe, as to the mode of levying the police-
rate. As the present ordinance was drawn up with the assistance
and advice of the colonial law.officers, itj may be presumed to be
sufficiently correct as a mere legal measure. In reply to the ob-
jection, that Government assessors are empowered arbitrarily to
value all household property, it must not be forgotten that there is
an appeal open to those who deem themselves over-rated. The
moderation of theassessment (whatever the mode may be) is best
proved by the deduction of 40 per cent. from the gross annual value,
in consideration of the exorbitant rents at present paid for houses.
The same is to be inferred from the total estimated collection of
not more than one.third of the actual expense of the police force—
a body whose efficiency has been generally admitted, and whose
protection few are unwilling to enjoy.
" It may be presumed, that if the colonial community were to
be charged with the management of the police, it would be re-
quired to provide for its entire outlay, and in this manner the Go-
vernment would have both less trouble and less expense.
" His Excellency the Governor and the Executive Council, for
the reasons above stated at length, and because the preparatory
measures have already taken much time, see objections to sus-
pending Ordinance No. 2,; and they therefore regret that in this
respect it is out of their power to meet the wishes of the sub-
scribers to the memorial.
" I have the honour to be, kc.,
" W. CAINE,
Officiating Colonial Secretary."

" THE HON. MAJOII W. CAINE, OFFICIATING COLONIAL &CHB.

TAR?.

" Sir,—We are directed by the parties who signed the memorial
forwarded through his Excellency the Governor on the 13th inst.,
to transmit the following reply to the remarks contained in your
letter of the 25th inst.
" The reasoning by which it is attempted to show that the high
rents in Hong-Kong have been voluntarily paid, we conceive to be
entirely fallacious. The facts connected with the early sales of
land have been already adverted to in the memorial. We may,
however, observe, in further explanation, that in June, 1841, when
the first sale was held, 100 lots having water frontage, and 100
suburban lots were advertised for sale; but, owing to the very
unfortunate selection of the site of the new town—a matter in
which the merchants had no voice—sufficient available ground
could be found to admit of only fifty lots being put up, and great
competition was the natural consequence. As no money was paid,
or penalty, beyond forfeiture of the land, incurred by nen.comple_
tion of the purchase, it is not a matter of surprise that when a
number of lets, insufficient for one-third of the intended buyers,
were brought is sale, the biddings should have been unsually high ;
but as her Majesty's Plenipotentiary found that these nominally
enormous rents were deterring patties from building, he considered
it expedient to give the assurance contained in hie letter annexed
to our memorial.

" Neither under Captain Elliot's administration, nor under that
of his successor (Sir Henry Pottinger), were any rents at first
claimed, or leases published ; and it was only after the holders of
land had been induced, by a variety of promises and encourage-
ment to expend large sums of money in buildings, that it was
found the Government intended to adhere to the scale of rent first
paid, and to repudiate Captain Elliot's other engagements.
" In the later sales held in the time of Slr Henry Pottinger,
still more limited quantities of eligible land—we allude more par-
ticularly to water frontage, a situation almost indispensable for a
mercantile house—were brought forward ; and as at that time it
was well known the greater number of the British merchants had
made arrangements, rendering their removal to Hong-Kong una-
voidable, it is not surprising that the false standard originally esta-
blished should have continued to obtain.
" But, of the purchases made at that sale, you, Sir, must be
well aware that many of the lots remain unoccupied, and are
likely to continue so, as the Government have, we believe, no
security under which they can enforce the completion of the
agreements.
" When the memorialists stated, that the ground-rent alone in
Hong-Kong exceeds the house-tent, and all charges attendant on
the occupation of a residence in Macao or Canton, they did not
allude to the existing rates paid in Macao, which are unusually
low, but to what were generally paid three and four years ago,
prior to their removal to Hong-Kong.
" If the rent of houses in Canton, since the destruction of half
the foreign factories by fire, has temporarily been higher
than it was prior to that event, the circumstance is easily ex-
plained by the statement, that Sir Henry Pottinger, with the view,
it is presumed (indeed, it was at one time openly avowed), of
forcing the British merchants to Hong-Kong, studiously neglected
to provide by treaty for any extension of the ground allotted to the
foreign community in Canton, or indeed for adequate facilities
being afforded to build on the space they formerly occupied.
Many months were, indeed, allowed to elapse after the retirement
of Sir Henry Pottinger, before any steps were taken by his suc-
cessor to remedy this grave evil ; and even at this moment her
Majesty's Consul is residing in a hong merchant's warehouse in
Canton.
" There cannot be a stronger proof that the high rents and
generally unsatisfactory state of the colony deter others from set.
tling here, than the fact, that the Americans and all other
foreigners remain in Canton and Macao, notwithstanding all the
boasted advantages of Hong-Kong as a free pert.
" That a particular house was under very peculiar circumstances
rented for 1,0001. a year, may be very true, and that in a place
where for three years the strange anomaly appeared of a Govern-
ment offering every inducement to the merchants to commence
building, but delaying even the commencement of barracks for
their officers to an extent that rendered it at one time a question
whether they should not be billeted on the public, is equally the
fact ; but that when Government buildings sufficient to accommo-
date their establishment are finished, the rent of houses will be
sufficient to pay an interest on the money expended on them, Is an
expectation which the most sanguine proprietors cannot entertain,
while the present system continues in force.
" The substantial buildings to which your letter refers were
most or all of them commenced many months, and some even two
years since; but, although Hong-Kong has been nearly four years
in existence, the commencement of new houses of any magnitude
can nowhere be seen—a state of matters, we believe, without a
parallel in the history of the British colonies.
" While the place continues the seat of Government and the
bead-quarters of steam communication, many English mercantile
houses may find it necessary to keep up establishmeats here, and a
small Chinese population will remain with them ; but when the
present Government and other buildings, long since commenced,
are finished, a large proportion of the present inhabitants must emi-
grate from a place where, from the absence of trade, they can have
no occupation; while the continuance of oppressive taxation
will be but too certain to prevent an increase of property or popu-
lation of any kind.
" We are unable to admit the force of the remarks of his Ex-
cellency in Council, by which it Is endeavoured to justify the
opium and other, licensed Arms, • bmwse the lame system is in