Winfat Enterprises (HK) Co Ltd v. Attorney General

Read the full judgment text of HCMP 982/1982 on BabelCite. This High Court CFI judgment was delivered on 29 April 1983.

1. The plaintiff in these proceedings is a limited company which, between 1974 and 1976, acquired the Block Crown lease of a number of parcels of land in the New Territories terminating 3 days prior to the expiry in 1997 of the lease by China to Great Britain of such Territories. The meaning of the expression "Block Crown lease" is explained in the Reasons for Judgment of the Hong Kong Court of Appeal in Attorney General v. Melhado Investment Ltd . given on 13th March 1983. It was hoped, if not

Case No.HCMP 982/1982
Court
High Court CFI
Date29 Apr 1983
Judge
Case Document
100%Judiciary

HCMP000982/1982

M.P. No. 982 of 1982

Convention of Peking 1898 - Constitutional law - Proclamations - New Territories Ordinance, Cap.97 - Crown Lands Resumption Ordinance, Cap.124 - Supreme Court - whether or in what circumstances jurisdiction to construe a treaty between sovereign states and to hold municipal legislation ultra vires as involving breaches of its provisions.

The plaintiffs issued an Originating Summons whereby they sought declarations as to the pre-Convention rights of their predecessors in-title and to the effect that the resumption by the Crown of part of their land in the New Territories was ultra vires insofar as the legislature had purported to enact ordinances wholly or partially repugnant to the terms of a treaty incorporated into municipal law by royal proclamation or in excess of the powers conferred by the Order in Council dated the 20th October 1898, by the Letters Patent 1888 and by the Royal Instructions. Alternatively the plaintiffs sought declarations to the effect that the Crown had acted ultra vices in purporting, by the terms of a Block Crown lease, to restrict the plaintiffs' user of their land.

Held:

1. The plaintiffs were entitled to declarations only that their predecessors-in-title had held the land on the basis of "common tenure" prior to 9th June 1898 and that, nuisance apart, they might have used the land for any purpose other than building development prior to resumption.
2. That the two proclamations made by the Governor in Chinese during 1899 and relied upon by the plaintiffs had no effect in law.
3. That the ordinances impugned were unambiguous and had not contained provisions ultra vires of the legislature.
4. That the words "for the peace, order and good government of the Colony" found in Article IX of the Letters Patent involved no ambiguity and entitled the legislature to expropriate landholders in the New Territories. Chan Kwai chui Amor v. Wing shing (The Shell Case)* not followed
5. That assent to ordinances given by the Governor in breach of Royal Instructions did not invalidate such legislation having regard to the terms of section 4 of the Colonial Laws Validity Act 1865.
6. Alternatively that the ordinances impugned had retrospectively been validated by subsequent "non-disallowance" by the Crown. *9 Commonwealth Int Law Cases 298. Hong Kong Daily press 30th June 1900
7. That the Court was not entitled directly to entertain allegations of breach of treaty or of public international law and that it was therefore undesirable to rule on such allegations arising indirectly once it was apparent that the terms of the relevant treaty had not been incorporated into the municipal law of the Colony; that the legislative powers conferred by Order in Council or otherwise had not been exceeded and that the issue was academic.

H.C.M.P. NO. 982 OF 1982

LIST OF CASES CITED BY COUNSEL

1 Calvin's Case (1608) 7 Co Rep. la

2 Case of Proclamations (1610) 12 Co. Rep. 74

3 Keyley v. Manning (1630) 79 E. 758

4 Campbell v. Hall (1774) 98 E.R. 1045

5 The "Rolla" (1807) 165 E.R. 963

6 Jephson v. Riera (1835) 12 E.R. 598

7 Cameron v. Kyte (1835) 12 E.R. 678

8 Inglis v. De Barnard (1841) 3 Moo P.C. 425

9 Buron v. Denman (1848) 154 E.R. 450

10 Secretary of State in Council of India v. Kamachee Boye Sahaba (1859) 7 Moo Ind. App. 476

11 Ex parte Chavasse (1865) 46 E.R. 1072

12 Phillips v. Eyre (1870) L.R. 6 Q.B. 1

13 Rustomjee v. The Queen (1876) 2 Q.B.D. 69

14 Bloxam v. Favre (1883) 8 P.D. 101

15 Bloxam v. Favre (1884) 9 P.D. 130

16 Riel v. Reg (1885) A.C. 675

17 MacLeod v. A.G. for N.S.W. (1891) A.C. 455

18 Cook v. Sprigg (1899) A.G. 572

19 Chau Kwai Chiu and Another v. Wong Shin ("The Shell Case") (1900) 9, Commonwealth International Law Cases, 298

20 D'Emden v. Pedder (1904) 1 C.L.R., 91

21 West Rand Central Gold Minning Co. Ltd. v. The King (1905) 2 K.B. 391

22 Salaman v. Secretary of State in Council for India (1906) 1 K.B. 613

23 The King v. The Earl of Crewe, ex arts Sekgome (1910) 2 K.B. 576

24 Secretary of State for India v. Bai Rajbai (1915) L.R. 42 I.A. 229

25 A.G. of Southern Nigeria v. Holt (1915) A.C. 599

26 Amodu Tijani v. Secretary, Southern Nigeria (1921) 2 A.C. 399

27 Vajesingji Joravarsingji and Others v. Secretary of the State for India in Council (1924) L.R., 51, I. A. 357

28 Pong Wai Ting v. A.G. (1925) H.K.L.R. 22

29 Nadan v. R.(1926) A.C. 482

30 Croft v. Dunphy (1933) A. C. 156

31 Sammut v. Strickland (1938) A.C. 678

32 Hoani Te Heuheu Tukino v. Aotea District Maori Land Board (1941) A.C. 308

33 Secretary of State for India v. Sarda Rustam Khan (1941) A.C. 356

34 Naim Molvan v. A.G. for Palestine (1948) A.C. 351

35 Republic of Italy v. Hambros Bank, Ltd. (1950) 1 Ch. 314

36 Nyali v. Attorney General (1956) 1 Q.B. 1

37 Oyekan v. Adele (1957) 2 All E.R. 785.

38 In re Wong Hon (1959) H.K.L.R. 601

39 Ibralebbe v. R. (1964) A.C. 900

40 Salomon v. Commissioners of Customs and Excise (1966) 2 All E.R. 871

41 In re. Tse Lai Chiu, Deceased (1969) H.K.L.R. 159

42 Rediffusion Hong Kong Ltd. v. A. G. (1970) H.K.L.R. 231

43 Black-Clawson International Ltd.   v. Papierwerke Waldhof-Aschaffenburg A.G. 1975A.C. 591

44 Watford Construction Co. Ltd. v. Secretary for New Territories (1978) H.K.L.R. 410

45 Lam Yuk ming v. A.G. (1980) H.K.L.R. 815

46 Melhado Investment Ltd. v. A.G.
(18.5.1982) unrep. H.C.M.P. No. 1532/1981
(13.3.1983) unrep C.A. No. 79/1982(CIVIL)

H.C.M.P. NO 982 OF 1982

LIST OF TEXTS AND LEARNED WORKS CITED BY COUNSEL

1. Halsbury's Laws, 4th Edition, Volume 6.

2. Halsbury's Laws, 3rd Edition, Volume 36.

3. Maxwell, Interpretation of Statutes, 12th Edition.

4. Craies, Statute law, 7th Edition.

5. Roberts-Wray, Commonwealth and Colonial Law.

6. Hood Philips, Constitutional and Administrative Law, 6th Edition

7. Wesley-Smith, Unequal Treaty.

8. Wade and Phillips, Constitutional Law.

9. Chitty, Law of the Prerogatives of the Crown.

10 Jennings, Constitutional Law of the Commonwealth, Volume 1.

11. Broom's Legal Maxmis, 10th Edition, ed. by R.B. Kersley.

12. Byrne's Law Dictionary.

13. Norton-Kyshe, History of the laws and Courts of Hong Kong, Volume 1.

14. Jenkyns, British Rule and Jurisdiction Beyond the Seas.

15. O'Connell, State Succession in Municipal Law and International Law Volume II.

16. Salmond, The Limitations of Colonial Legislative Power, (1917) 33 L.Q.R. 117.

17. Shorter Oxford English Dictionary.

Having regard to the likelihood of genuine public interest in the outcome of these proceedings, which were heard in Chambers, and with the full agreement of counsel, I am not only giving judgment in open Court but, in contrast with "the handing down" procedure sanctioned by o.42 r.5A, doing so in the traditional way. However, copies of the judgment will be made available to those interested in due course and I shall refer to rather than recite the contents of certain documents wholly or partially reproduced.

M.P. No. 982 of 1982

IN THE SUPREME COURT OF HONG KONG

HIGH COURT

MISCELLANLOUS PROCEEDINGS

BETWEEN

WINFAT ENTERPRISE(HK) CO. LTD Plaintiff

AND

ATTORNEY GENERAL Defendant

Coram: Hon. Kempster, J.

Date: 29 April 1983

______________

J U D G M E N T

______________

1. The plaintiff in these proceedings is a limited company which, between 1974 and 1976, acquired the Block Crown lease of a number of parcels of land in the New Territories terminating 3 days prior to the expiry in 1997 of the lease by China to Great Britain of such Territories. The meaning of the expression "Block Crown lease" is explained in the Reasons for Judgment of the Hong Kong Court of Appeal in Attorney General v. Melhado Investment Ltd. given on 13th March 1983. It was hoped, if not expected, that the prohibition on use for building purposes contained in the Block Crown lease might be waived on payment of a suitable premium. On the other hand the plaintiff knew, I would assume, of the compensation and other provisions of the Crown Lands Resumption Ordinance, Cap, 124 as amended.

2. On 30th November 1977 the plaintiff submitted to the appropriate District Officer detailed proposals for the potentially profitable development of the land for high-class housing which would appeal to persons employed in executive and managerial roles in Tuen Mun and Yuen Long New Towns. The project did not commend itself to Government and the application was refused; on the basis, the plaintiff claims, that the area was inadequately provided with basic services. The plaintiff sought re-assessment of its application. By letter dated the 18th December 1978 the Estate Surveyor for the District Officer again intimated a refusal. He stated that necessary support from other Government departments had not been forthcoming. Undeterred the plaintiff tried once more and once more, this time by letter to the plaintiff's surveyor dated the 21st July 1980, the Estate Surveyor refused. "There is no present planning proposal to permit urban development in the general area in which your client's land is situated" he wrote. "The appropriate use is still considered to be agricultural". He sent a further letter to like effect on the 28th January 1981.

3. Making the best of a bad job the plaintiff sub-let the greater part of its land for a period of 3 years with an option for renewal for a further 2 years to a firm called New Yick Fung Enterprises Co. which wanted space for the parking of vehicles. As was there thought necessary a short-term waiver was sought from and granted by the District Officer in consideration of the payment of "fees".

4. On the 7th October 1981 the following Notice No. 3080 appeared in the Government Gazette -

"Resumption of Land for Temporary Housing Area Yick Yuen, Yuen long, New Territories.

To the owners and every person interested or having. any right or easement in the following lots shown coloured orange on the plan numbered YLR 137 which is deposited in the District Office at Yuen Long in the New Territories and which is available for inspection there."

Then the lot numbers were given.

"Take notice that the Governor in Council having decided that the above-mentioned lots are required for a public purpose, the Governor has ordered that the above-mentioned lots shall be resumed and revert to the Crown on the expiration of three months from the date of the affixing of the notice to the said land.

7 October 1981

A.G. Eason

Secretary for Lands and Works"

The lots described embraced the greater part of the plaintiff's land and may properly be referred to as "the resumed land" the balance being the severed land". A letter to the plaintiff from the Secretary for the New Territories to similar effect and dated the 26th November 1981 followed. Paragraphs 2 and 3 of that letter, said -

"

2. Government is prepared to offer you for the land that is to be resumed cash compensation at $15,299,620 (or at a rate, which represents 50% of the prevailing cash compensation for agricultural land acquired by Government in an urban area of the New Territories, as at the date of execution of surrender).

3. This offer of cash compensation is subject to your surrendering your land to the Crown free of all encumbrances and accepting in writing the offer before the expiry of the period stipulated in the said Government Notice i.e. before 21st January 1982. If you with to accept the offer, you should call at the District Office, Yuen Long, as soon as possible bringing with you this letter, your Identity Card or Company Seal and the Title documents in respect of the land to be surrendered. The, surrender will be taken immediately or the District Officer, will make an appointment for you to return at a later date to take the surrender".

By reason of the sub-lease to which I have referred the plaintiff could not comply with the conditions imposed for cash compensation and, as the Crown had resumed pursuant to ordinance and not to the terms of the lease, was left with the recourse described in paragraph 5 which read -

"Under the provisions of the Crown Lands Resumption Ordinance you have the right to claim compensation as a result of your land being resumed by submitting a claim to the Lands Tribunal. If you are not sure of your rights you should inquire from the District Office, Yuen Long, or seek independent professional advice. The Tribunal on request, must, under sections 10, 11 and 12 of the said Crown Lands Resumption Ordinance, determine the compensation for your land strictly in accordance with the lease conditions. The Tribunal is precluded from awarding any compensation in respect of any expectancy or probability of the grant of land exchanges or licences and they must discount any evidence which shows that the land values have been enhanced by expectation of re-development or of a modification of lease conditions".

This meant that the plaintiff could not base a claim for compensation on the reason for which the land had been acquired namely that it had potential development value for housing purposes.

5. The attitude of the plaintiff is best expressed in paragraph 13 and in the first sentence of paragraph 14 of the affirmation made by the Chairman of its Board of Directors, Mr. Tan Eng Aik, on the 28th May 1982 -

"

13. The plaintiff is aggrieved by the resumption because it feels that Government had taken unfair advantage of the situation, in that Government had long known that the said lands, in the light of the development plans put forward by the plaintiff, had development potential but had kept back from allowing the plaintiff to develop the area on the ostensible grounds that there were insufficient facilities, such as electricity, water, drainage, access etc. Yet Government had decided to resume the area for temporary housing which required the same facilities but at a much higher level in view of the higher desities of population applicable to such use. Also, Government well knew that the plaintiff had a tenancy agreement at a substantial rent with New Yick Fung (which in turn had sub-let at a far higher rent) for the open storage of motor vehicles in the area, and indeed, had stood by when New Yick Fung had expended substantial sums in forming the area and such substantial sums, have been reflected by suitable diminution in the rent charged. It is unfair that with the knowledge as aforesaid set out Government had chosen to-take advantage of resuming the plaintiff's land when there is ample Crown land in the Tuen Mun Yuen Long Districts.

14. In the beginning of 1982, if the plaintiff were able to continue to collect rent from New Yick Fung or any other organisation for open storage of motor vehicles, it would be able to collect rent by the end of 1997, in the total sum of slightly over $23 million even assuming there is no increment in the interim.

The Crown has taken the view that these matters are irrelevant to the issues which the Court has to determine and has filed no explanatory or contradictory evidence. This view is correct in law for which. reason, together with the absence of Crown evidence, I express no opinion one way or the other.

6. When submitting claims for compensation on the 5th March 1982 the plaintiff's solicitors wrote -

"In submitting these claims, our client would like to make it clear that they do not wish to be taken as having admitted that they are bound by the terms of the Crown lands Resumption Ordinance, and reserve the right to take such proceedings or advance such arguments as they may be advised. Such proceedings or arguments may involve (but are not necessarily limited to ) the validity of the Crown Lands Resumption Ordinance and/or the basis of valuation of the property concerned."

7. On the 1st June 1982 the plaintiff issued an Originating Summons against the Crown, by the Attorney General. The first six paragraphs, in their amended form, claimed -

"

(1) A declaration that the resumed land and the severed land (hereinafter collectively referred to as" the said lands") were prior to the Convention dated the 9th day of June 1898 between Her Majesty and His Imperial Majesty the Emperor of China, held by the plaintiff's predecessors-in-title in perpetuity and without restriction as to user there of.   (Such rights in property shall hereinafter be referred to as "the said pre-Treaty rights").

(2) A declaration that section 15 of the Land Court (New Territories) Ordinance 1900, section 14 of the New Territories Regulation Ordinance 1910 and section 8 of the New Territories Ordinance, Chapter 97, Laws of Hong Kong are void as being repugnant to and/or ultra vires of Her Majesty's Order-in-Council providing for the administration of the New Territories dated the 20th October 1898 and/or the Letters Patent and/or the Royal Instructions, insofar as such Ordinances purported to vest the said pre-Treaty rights in the Crown in perpetuity or at all.

(3) Accordingly, a declaration that the plaintiff is vested with the said pre-Treaty rights and is entitled to the possession of the said lands.

(4) Further, a declaration that the purported Lease granted by the Crown to the plaintiff's predecessors in the on 24th January 1905 is void save and except and only to the extent, that such Lease evidences the ownership of the said lands by the plaintiff's predecessors in title on or before 24th. January 1905.

(5) Further, a declaration-

(a) That the Crown Lands Resumption Ordinance, Chapter 124, Laws of Hong Kong, has no application to the said lands.

(b) That Government Notice No. 3080 dated 7th October 1981 and the decision of the Governor in Council referred to therein purporting to resume the said lands, are void and of no effect.

(c) That the occupation of the said lands by the Crown and/or its agents, licencees or tenants, is unlawful.

(6) "Further and in the alternative to (1) to (5) above, section 12(B) and 12(C) of the Crown Lands Resumption Ordinance Chapter 124, Laws of Hong Kong are void as being repugnant to and/or ultra vires of Her Majesty's Order-in-Council providing for the administration of the New Territories dated 20th October 1898 and/or the Letters Patent and/or the Royal Instructions.

The plaintiff thereby raised issues of profound importance to Government and to landholders in the New Territories alike. Mr. Widdicombe, who appeared for the plaintiff, was at pains to demonstrate, as will appear, that these issues, which affect the validity of colonial laws in the Courts of Hong Kong rather than their recognition elsewhere, have been canvassed at other times and in other places. No plea based on laches, abandonment or acquiescence has been advanced on behalf of the Crown.

8. I necessarily turn to the relevant history of the New Territories starting with the system of land tenure prevailing in the summer of 1898. In this regard I have the advantage of an affidavit, the contents of which are not contested, sworn by Mr. Antony Dicks, a barrister practising in this territory who is conversant with Chinese land law. Paragraphs 7 to 11 of his affidavit read as follows -

"

7.     Most land (other than land used for public purposes) was in late nineteenth century China held on what is called "common tenure". Other forms of tenure such as feudal and quasi-feudal tenure existed but were very rare and there was also military service tenure and 'furnace land'

8.     Land under the common tenure or land of the ordinary people' was an interest in perpetuity held by a proprietor on two principal conditions, namely, payment of the land taxes and performance of labour services. Over the years the labour service fell into disuse particularly in South China and was commuted into additional land tax in lieu of labour were collected as a single annual amount.

9.     Land held under common tenure could be acquired in three ways, viz. by inheritance, by purchase and by the cultivation of unoccupied or waste land. I need not dwell on the first of these. As to the second, the tenure was transferred to the purchaser. Outright sales were not always made, it being possible in many parts of China to dispose of land by creating limited interests of various kinds which were themselves subject to possible alienation.

10.     The cultivation of unoccupied or waste land was encouraged by the authorities and a valid title to such lands could be acquired by following a statutory procedure for registration. Land tax did not become payable for some years. Once land was required in this way it was subject to common tenure and was as freely alienable as such land in general.

11.     With a very few specific exceptions mentioned below there appeared to have been no limitations on the use of land held under common tenure. The character of tenure and the tax payable on such land did not change after the erection of buildings on it.  It should be remembered that in China at the end of the nineteenth century the great bulk of the land was in agricultural use and could be expected to continue in that use. The heed for any comprehensive form of restriction does not appear to have been felt."

In the Gazette for 25th November 1899 the Objects and Reasons given by the Acting Attorney General for the introduction of "A Bill entitled The New Territories Land Court Ordinance" were set out -

"It is proposed by this Bill to substitute a certificate of title for a Crown lease because it has been ascertained that the ordinary holding of land in the New Territories is a tenancy in  perpetuity and this Government could not, under the terms of the Convention with China, grant a lease for more than 99 years from the date of the Convention."

Having considered the terms of the Block Crown lease I am satisfied on the balance of probabilities that the land comprised therein was held by the plaintiff's predecessors in, title on the basis of "common tenure" and that the plaintiff is entitled to the first of the declarations sought provided that the words "subject to payment of land taxes." are added.

9. On the 9th June 1898 a Convention, subsequently ratified, was concluded between Great Britain and China in Peking. The material parts of that Convention recited -

"Whereas it has for many years past been recognised that an extension of Hong Kong territory is necessary for the proper defence and protection of the Colony, it has now been agreed between the Governments of Great Britain and China that the limits of British territory shall be enlarged under lease to the extent indicated generally on the annexed map.  The exact boundaries shall be hereafter fixed when proper surveys have been made by officials appointed by the two Governments. The term of this lease shall be 99 years. It is further understood that there will be no expropriation or expulsion of the inhabitants of the district included within the extension and that if land is required for public purposes it shall be bought at a fair price."

The Convention came into force on the lst July following. It is on the last sentence quoted together with the terms of two proclamations made by the Governor in Chinese that Mr. Widdicombe founds his submissions in support of the second to sixth declarations sought.

10. On the 20th October 1898, by Order in Council made at Balmoral, a prerogative act which it is not suggested that this Court can question, Her Majesty Queen Victoria made provision for the Government of the New Territories during the currency of the lease as follows -

"(i) The territories within the limits and for the term described in the said Convention shall be and the same are hereby declared to be part and parcel of Her Majesty's Colony of Hong Kong in like manner and for all intents and purposes as if they had originally formed part of the said Colony.

(ii) It will be competent for the Governor of Hong Kong by and with the advice and consent of the Legislative Council of the said Colony to make laws for the peace, order and good Government of the said territories as part of the Colony.

(iii) From a date to be fixed by proclamation of the Governor of Hong Kong all laws and ordinances which shall at such date be in force in the Colony of Hong Kong shall take effect in the said territories and shall remain in force therein until the same shall have been altered or repealed by Her Majesty or by the Governor of Hong Kong by and with the advice or consent of the Legislative Council."

This document formally vested sovereignty in and dominion over the New Territories in Her Majesty and defined the limits of the authority of the Hong Kong legislature in relation thereto; prima facie giving the Governor in Council power to legislate in relation to and to expropriate land. Had the Foreign Jurisdiction Act 1890 been invoked different considerations would have arisen. The words in paragraph (ii) of the Order in Council followed the terms of Article IX of the Letters which had been made patent by Her Majesty on the 19th January 1888 making revised pro-vision for a Governor for the Colony of Hong Kong and at the same time defining the extent of his authority. Articles III, VII, VIII, IX, X, XI and XII of such Letters Patent read -

"III.     We do hereby authorise, empower and command Our said Governor - to do and execute all things that belong to his said office according to the tenor of these Our Letters Patent and of such Commission as may be issued to him under Our Sign Manual and Signet and according to such instructions as may from time to time be given to him under Our Sign Manual and Signet or by Our Order in Our Privy Council, or by Us through one of Our principal Secretaries of State, and to such laws as are now or shall hereafter be in force in the Colony.

VII.     The Executive Council of the Colony shall consist of such persons as We shall direct by any instructions under Our Sign Manual and Signet, and all such persons shall hold their places in the said Council during Our pleasure.

VIII.    The Legislative Council of the Colony shall consist of such persons as We shall direct by any instructions under Our Sign Manual and Signet, and such persons shall hold their places in the said Council during Our pleasure.

IX.    The Governor, by and with the advice and consent of the Legislative Council, may make laws for the peace order, and good Government of the Colony.

X.    We do hereby reserve to Ourselves, Our Heirs aris Successors, full power and authority to disallow, through one of Our Principal Secretaries of State, any such law as aforesaid. Every such disallowance shall take effect from the time when the same shall be pro-mulgated by the Governor in the Colony.

XI.    We do also reserve to Ourselves, Our Heirs and Successors, Our and Their undoubted right, with the advice of Our or Their Privy Council, to make all such laws as may appear necessary for the peace, order and good Government of the Colony.

XII.    The Governor, in Our name and on Our behalf, may make and execute, under the public seal of the Colony, grants and dispositions of any lands which may be lawfully granted or disposed of by Us. Provided that every such grant or disposition be made in confirmity either with, somelaw in force in the Colony or with some instructions addressed to the Governor under Our Sign Manual and Signet, or through one of Our principal Secretaries of State or with some regulations in force in the Colony."

Further guidance had been given to the Governor both on the same day and on the 7th July 1896 by Instructions from Her Majesty. Instruction XXII reads -

"The Governor shall not, except in the cases hereunder mentioned, assent in Our name to any Ordinance of any of the following classes -

-(7) Any Ordinance the provisions of which shall appear inconsistent with obligations imposed upon Us by Treaty - Unless such Ordinance shall contain a clause suspending the operation of such Ordinance until the signification of Our pleasure thereupon or unless the Governor shall have satisfied himself that an urgent necessity exists requiring that such Ordinance be brought into immediate operation in which case he is authorised to assent in Our name to such Ordinance unless the same shall be inconsistent with any obligations imposed on Us by Treaty."

It is the plaintiff's contention that, in relation to the ordinances impugned, successive Governors gave their assent in breach of such instructions and of Article XII of the Letters Patent. The plaintiff concedes that all but one of such ordinances were not subsequently disallowed. That one is the Land Court (New Territories) Ordinance No. 8 of 1900 but, having regard to the terms of a draft letter from the Secretary of State for the Colonies to the Governor dated 25th May of that year, I find, again on the balance of probabilities, that such ordinance was not subsequently disallowed either.

11. I now turn back to what could colloquially be called "the situation on the ground". On the 27th March 1899 the Magistrate of the San On District of the Kwong Tung Province of China, part of which had by then been incorporated in the Colony of Hong Kong issued a notice for general information declaring to the inhabitants of the "New Territories" that within the leased area as delimited all fields, land, houses, graves, local customs and usages would remain unchanged. On the 4th April the Viceroy of the two Kwong Tung Provinces and the Governor of the Kwong Tung Province issued a notice for general information which (in translation) read -

"Whereas Kowloon has been leased under the instructions of the Emperor and the boundary has been defined in accordance with the original map forwarded by the Tsung-Li Yamen, the following agreement has been come to with the foreign officials -

(i) The people are to be treated with exceptional kindness.

(ii) There can be no forced sale of houses and lands.

(iii) The graves in the leased territory are never to be removed.

(iv) Local customs and habits are to remain unchanged according to the wishes of the inhabitants."

The translations of both these declarations were laid before the Legislative Council of the Colony on the 4th October 1899.

12. Meanwhile on 8th April 1899 the Governor, expressly pursuant to the terms of the Order in Council of 20th October 1898, made a proclamation in English under the public seal of the Colony fixing the 17th April following as the day when all its laws and ordinances should take effect in the New Territories. From time to time he made other proclamations in English and under seal in relation to military stores and contagious diseases. "Like the proclamation made by Sir Edward Youde on 30th March 1983 in relation to the Coinage" they were expressed to be made, directly or indirectly, pursuant to the terms of ordinances Orders-in-Council and the legislative validity of such proclamations is not challenged.

13. At the time of the original occupation of the Island of Hong Kong on behalf of the Crown Captain Charles Elliot, R.N., who, pursuant to section V of "An Act to regulate the Trade to China and India" [3 & 4 William IV c 93] had been appointed Chief Superintendant of the Trade of Her Majesty's subjects within the dominions of the Emperor of China and, under the Great Seal, Her Majesty's Plenipotentiary in such dominions, had issued two proclamations. The first, made jointly with the Commander in Chief British Forces on 1st February 1841, both informed the native inhabitants that they were now the Queen's subjects and, torture excepted, would continue to be governed according to their own laws and exempted Chinese ships and merchants from liability to duty. The second, made on the following day from his ship then anchored in the habour, declared that he, Captain Elliot, was responsible for Government. As regards the legislative validity of these two documents which came into existence prior to the formal cession of the Island of Hong Kong to the Crown by the Treaty of Nanking on 29th August 1842. I adopt the opinion of Mills-Owens J. in Re Tse Lai-Chin deceased (1) at page 194 -

"The proclamations were not expressed to have legislative effect and, in any event, were merely interim measures."

The Island was not "erected" into a separate Colony until the Letters o 5th April 1843 were made Patent but certainly since the Kowloon Order in Council dated the 4th February 1861 the Crown has been deemed ultimate owner of all land on the island and in the Kowloon peninsula and Crown leases have been granted in relation to such land without reference to any particular date in the future.

14. On the 9th April 1899 the Governor made a proclamation in Chinese, the material parts of which, in translation, read -

"Whereas His Imperial Majesty the Emperor of China has leased to Her Majesty the Queen of Great Britain and Ireland as an extension of the Colony of Hong Kong certain territory situated in the district of San On and certain islands adjacent thereto, the boundaries of which are as hereunder stated - and whereas Her Majesty has been graciously pleased to appoint me as Governor of the said territory and whereas it is desirable that British and Chinese territory should be clearly defined so that friendly relations now existing between the two nations may be always maintained. Now, therefore, I have fixed the 17th April 1899 as the date on which the British flag shall be hoisted and the administration of the territory be taken over by duly authorised British officers - I would also impress upon you that this territory having been leased by His Imperial Majesty the Emperor of China to Her Britannic Majesty the Queen, as subjects of Her Majesty's empire, your commercial and landed interests will be safe-guarded and that your usages and good customs will not in any way be interfered with. It is the wish of Her Majesty the Queen that all her subjects in every part of the world shall be prosperous and happy and it will be my duty to assist you to improve your position by every means in my power.  The most respected of your elders will be chosen to assist in the management of your village affairs to secure peace and good order and the punishment of evil doers. I expect you to obey the laws that are made for your benefit and all persons who break the law will be punished severely. It will be necessary for you to register without delay your titles for the land occupied by you that the true owners may be known. Should any land be required for public purposes it will be paid for at its full value. Remember that as subjects of the Great British Empire your perfect freedom from oppression is assured. Should you have any complaint to make the Governor will always be willing to hear it and to award what is right. There will be no injustice allowed nor any laxity in the administration of justice. All must render implicit obedience."

Land speculation had already begun in the New Territories and, with varying degrees of intensity, has continued ever since.

15. On the 12th July 1899 the Governor made a further proclamation in Chinese, the material parts of which, in translation, read

"I, Sir Henry Arthur Blake, hereby inform you, the land owners in the New Territories, that an officer will visit the sub-district for the purpose of registering land owners on a date due notice of which will be given to you. All you who can show that you have had possession of landed property for some time must fill up a schedule in the following form."

The nature of the form was described.

"When these schedules are distributed to a village any person who claims land as his property must fill up a schedule and bring it in person to the Visiting Officer when he comes to the village in which such person resides and the Officer will make an entry in the register that such person is the owner and will add such other particulars as may be necessary. A list of those who have been registered as land owners in the village and of their holdings will be posted in the village for 7 days and afterwards an extract of the entry of each holding will be made to be handed to the owner. But before it is handed to the owner he must pay the amount of Crown rent fixed as due by him. If no rent is paid the land will be forfeited to the Government without fail. If there is any unsettled dispute about property the name of the person in actual possession will' be registered and he must pay the Crown rent, but an extract of an entry in the register will not be issued until the Squatters Board has ascertained that the person in possession is the legal owner and the Board's decision has been approved by me - should it be found at any time that any land owned by any person has not been reported it will be treated as Government land. A survey will shortly be made of the whole of the leased territory so that the boundaries of the various holdings may be clearly known and any cases of neglect to report on the part of owners of land will be easily discovered and will involve forfeiture of the property to Government. Do not say that I have not warned you The Crown rent including all charges fixed for the present is given below. You must all without exception obey. Do not be disobedient. A special proclamation."

And then are set out the provisions for Crown rent which the Governor had made in Council on the same day pursuant to section 3 of Ordinance No. 12 of 1899 being "An Ordinance to provide for the better regulation of the New Territories". That Ordinance had been assented-to by the Governor and taken effect on the 18th April.

16. I return to the proclamation -

"The above scale of Crown rent may be altered. When the survey has been completed permanent certificates of title will be issued. If anyone has been forcibly deprived of his land or been fraudulently induced to sell land at a low price he may present a petition to the District Officer if he lives north of the Kowloon range of hills or, if he lives south of it, to the Registrar General or the Visiting Officer to be forwarded to the Squatters Board for inquiry."

While the original Chinese versions of the two proclamations are not available they are not expressed, at least in translation, to be made under seal or pursuant to any Order in Council or Ordinance. Their legislative validity is challenged. In contrast with the publication in the Gazette on the 19th February 1900, by direction of the Governor, of the Royal Proclamation of the existence of a state of war as between the Crown and the South African Republic and the Orange Free State which had been made at Windsor on the 27th December 1899, these proclamations were the Governor's own and an occupier of land in the New Territories at the time might well have been entitled to call upon the Colonial Government to redeem the promises which they embodied. Attorney General v. Ng Yuen Shiu. (2)

17. On the 7th October 1899 a bill was introduced into the Legislature "to amend the Crown Lands Resumption Ordinance 1889."  That ordinance, introduced on account of the insanitary construction of dwelling houses in the City of Victoria, had empowered the Governor in Council, in the event of a breakdown of negotiations with the leaseholder, to resume lands leased from the Crown on payment both of the value of the land and buildings and of compensation for the severance of such land from adjacent land in the same occupation; the amounts to be fixed by a Board of Arbitrators. It was now proposed that the Governor in Council should be empowered to acquire land for public purposes wheresoever situated in the enlarged Colony since there was doubt as to whether or not land in the New Territories was vested in or leased from the Crown. The bill became law on the 24th of that month as Ordinance No. 30 of 1899. By section 15 of the Land Court (New Territories) Ordinance, No. 8 of 1900, to which I have already alluded and which took effect on the 28th March 1900 despite a protest by members of the Legislative Council that the bill violated the provisons of the Convention, any doubt should have been laid to rest. The section declared all land in the New Territories "to be the property of the Crown during the term specified in the Convention of the 9th day of June 1898". The ordinance as a whole provided for a Land Court to hear claims to title and, where a claim was allowed, for the Governor to grant an appropriate title on behalf of the Crown. On the 16th July 1900, following suggestions from the Secretary of State for the Colonies, this ordinance was repealed and replaced by Ordinance No. 18 of 1900 which contained a number of changes immaterial for present purposes. However, the New Territories Titles Ordinance No.47 of 1902 entitled customary land-holders to extracts from the Titles Register and to surrender their rights in exchange for Crown leases. Uncertainty as to the rights of the Crown in relation to land in the New Territories. Under Objects and Reasons for "A Bill entitled An Ordinance to  repeal the New Territories Titles Ordinance 1902" published in the Gazette for the 20th November 1903 the Attorney General wrote -

"The object is to repeal the New Territories Titles Ordinance because it has become apparent that the system of title by registration thereby established is unworkable and because it is found that the system, if it could be brought into operation, would clash with the Land Court Ordinance 1900 in a manner con- templated neither by its framer nor by the legislature when it passed the Ordinance. The conflict with the Land Court Ordinance arises from the interpretation given in the New Territories Titles Ordinance to the expression "customary land" and "customary landholder". The effect of that interpretation maybe to override section 14 of the Land Court Ordinance and to confer "title" in a manner never intended and impossible to permit. It was never intended and cannot be permitted that title to land in the New Territories should be acquired otherwise than by grant from the Crown as in the case of land in the other parts of the Colony, but it is open to question whether the effect of the interpretation clause of the New Territories Titles Ordinance is not to vest in the Land Court the power to confer title independently of grant from the Crown. It was never intended that the Land Court should have power to do more than investigate claims to land and report thereon to the Governor. It was always intended had that intention still prevails that the ultimate right to grant or to refuse titles should rest with the Governor - an intention which clearly appears in section 14 of the Land Court Ordinance 1900. No in convenience will thereby be caused to anyone because no land has yet been brought under the operation of the ordinance.

The New Territories Titles Ordinance 1902 was repealed on the 9th December 1903. To occupier's whose titles had scrupulously been examined and approved by the Land Court, applying Chinese law and custom, the grant of Block Crown leases for a term of 75 years from the 1st July 1898 renewable for a further 24 years less 3 days became standard. Section 14 of the New Territories Regulation Ordinance No. 34 of 1910 read -

"All land in the New Territories is hereby declared to be and to have been from the commencement of the New Territories (Land Court) Ordinance 1900 the property of the Crown had all persons in occupation of any such land after the commencement of this ordinance shall lie deemed to be trespassers as against the Crown unless such occupation is authorized by grant from the Crown or by other title allowed under this ordinance or by licence from the Governor or from some Government Officer having authority to grant such licence.''

18. The Crown Lands Resumption and Resumption (Amendment) Ordinances of 1889 and 1899 were repealed and replaced by the Crown Lands Resumption Ordinance 1900 which re-enacted the earlier provisions for compensation. But section 2(c) of the Crown Lands Resumption Ordinance 1921 provided that no compensation should be given in respect of any use of the land which was not in accordance with the terms of the Crown lease under which the land was held. Section 2(c) of the Crown Lands Resumption Amendment Ordinance 1922 added a further restriction on the amount of compensation which might be awarded on resumption. It read -

"No compensation shall be given in respect of any expectancy or probability of the grant or renewal or continuance by the Crown or by any person of any licence, permission, lease or permit whatsoever provided that this paragraph shall not apply to any case in which the grant or renewal or continuance of any licence, permission, lease or permit could have been enforcedas of right if the land in question had not been resumed."

19. On the 29th April 1925 a petition was sent to the Secretary of State for the Colonies, Mr. L.S. Amery, by landholders in the New Territories making virtually the same complaints as those presently advanced by the plaintiff. In his draft letter to the Governor acknowledging receipt of the petition the Secretary of State wrote -

"The main allegation made by the petitioners is that the effect of the legislation to which they refer and the policy adopted thereunder amounts in itself to expropriation in breach of the Convention of 1898 for the lease of the New Territories. This is a very big question depending to a great extent upon the right which holders of land possessed under Chinese law and it is quite impossible on the information before me to come to any conclusion upon it.  I would only say that the contention of the petitioners does not seem to me to be a frivolous one and that it does appear that the view of the Hong Kong Government as to the rights of the holders of land under Chinese law have become less sympathetic as time progressed and the Convention and the promises made under it receded into the past."

20. His opinion had no apparent effect on the land legislation of the Colony.

21. I turn to legislation current at the time of issue of the Originating Summons.  The relevant sections of the New Territories Ordinance, Cap. 97 read-

"8. All land in the New Territories is hereby declared to be and to have been from the 23rd day of July 1900 the property of the Crown and all persons in occupation of any such land shall be  deemed to be trespassers as against the Crown unless such occupation is authorised by grant from the Crown or by other title allowed under this ordinance or by licence from the Governor or from some Government Officer having authority to grant such licence.

13. In any proceedings in the Supreme Court or the District Court in relation to land in  the New Territories, the court shall have power to recognise and enforce any Chinese custom or customary right affecting such land."

22. The relevant sections of the Crown Lands Resumption Ordinance, Cap. 124, read -

"12(b)

No compensation shall be given in respect of any the of the land which is not in accordance with the terms of the Crown lease under which the land is held.

(c)

No compensation shall be given in respect of any expectancy or probability of the grant or renewal or continuance by the Crown or by any person of any licence, permission, lease or permit whatsoever: provided that this paragraph shall not apply to any case in which the grant or renewal or continuance of any licence, permission, lease or permit could have been enforced as   of right if the land in question had not been resumed.

(d)

Subject to the provisions of section 11 and to the provisions of paragraphs (a), (b) and (c) of this section, the value of the land resumed shall be taken to be the amount which the land if sold in the open market might be expected to realize.

23. Upon the effect of this fasciculus of ordinances, orders in Council, letters patent, royal instructions, proclamations, and practice the argument turns.

24. It is common ground between the parties that international obligations such as those imposed by the 1898 Convention have no effect in municipal law as such albeit "sacred and inviolable according to that true intent and meaning" per Lord Mansfield in Campbell v. Hall (3) at page 208. It is not competent for this Court to enquire into an allegation of the breach of or to construe the terms of a treaty concluded between Sovereign States, Oyekan v. Adele (4) at page 788, where the opinion of the Judicial Committee was expressed by Lord Denning as follows –

"Their Lordships desire to point out that the Treaty of Cession was an Act of State by which the British Crown acquired full rights of sovereignty over Lagos. In these circumstances, the courts of law will not take it on themselves to construe the treaty. The effect of the Act of State is to give to the British Crown sovereign power to make laws and to enforce them, and, therefore, the power to recognise existing rights or extinguish them, or to create new ones. In order to ascertain what rights pass to the Crown or are retained by the inhabitants, the courts of law look, not to the treaty, but to the conduct of the British Crown. It has been laid down by their Lordships' Board that -

'Any inhabitant of the territory can make good in the municipal courts established by the new sovereign only such rights as that sovereign has, through his officers, recognised. Such rights as he had under the rule of his predecessors avail him nothing.'

See Vajesingji Joravarsingji v. The Secretary of State for India at page 360 per Lord Dunedin - In inquiring, however, what rights are recognised, there is one guiding principle. It is this: The courts will assume that the British Crown intends that the rights of property of the inhabitants are to be fully respected. Whilst, therefore, the British Crown, as Sovereign, can make laws enabling it compulsorily to acquire land for public purposes, it will see that proper compensation is awarded to every one of the inhabitants who has by native law an interest in it; and the courts will declare the inhabitants entitled to compensation according to their interests, even though those interests are of a kind unknown to English law."

The plaintiff, accepting the burden of showing what land rights have been recognised by the Crown, relies upon this assumption and contends that it is properly made as regards the inhabitants of the New Territories having regard to the terms of the two "Chinese" proclamations made by the Governor in 1899; of the Order in Council dated the 20th October 1898 and of the Letters Patent and the Royal Instructions. It is submitted that the proclamations had the force of law and, therefore, imported into the municipal law of the Colony overriding provisions that there should be no expropriation of the inhabitants of the New Territories and that any land required for public purposes should be bought at a fair, meaning full market, price. Alternatively it is submitted that the words "it shall be competent for the Governor of Hong Kong, by and with the advice and consent of the Legislative Council of the said Colony, to make laws for the peace, order and good Government of the said territories as part of the Colony" found in Article II of the Order in Council of June 9th 1898 did not give the Colonial Legislature power to pass laws in breach of the Convention or of public international law and that legislation having such effect is ultra vires. Thus the Court is invited indirectly to inquire into allegations of the breach of a treaty.

25. Ordinances purporting to vest the land of the New Territories in the Crown and to provide for payment of compensation at less than open market value as well as the grant of a leasehold interest less by 3 days than that claimed by the Crown and prohibiting building development into the bargain will, it is further submitted, constitute expropriation.

26. In the further alternative it is argued that successive Governors had no power to assent to and thereby to validate bills when such assents involved breaches of treaty by the Crown and therefore unlawful grants or dispositions within the meaning of Article XII of the 1888 Letters Patent as well as breaches by the Governor of Instruction XXII (7) of   the Royal Instructions. At first blush the Court would seem precluded from entertaining the last of these submissions the legislative process being complete, by the terms of the 1898 Order in Council and of section 4 of the Colonial Laws Validity Act 1865 which were referred to in Rediffusion (HK) Ltd. v. Attorney General (6) at page 249-

"No Colonial Law passed with Concurrence of or assented to by the Governor of any Colony -shall be deemed to have been void or inoperative by reason only of any Instructions with reference to such Law or the Subject thereof which may have been given to such Governor by or on behalf of Her Majesty by any Instrument other than the Letters Patent or Instrument authorising such Governor to concur in passing or to assent to Laws for the Peace Order and good Government of such Colony even though such Instructions may be referred to in such Letters Patent or last mentioned Instrument."

But it is said, if I understand Mr. Widdicombe correctly, that section 4 only validates an ordinance assented to in breach of an Instruction specifically referring to the antecedent bill. I cannot accept such a construction and the submission based on Article XII of the Letters Patent and Instruction XXII (7) fails. It is, however, true that section 4 will not of itself save the ordinances in question if they are otherwise ultra wires.

27. With regard to the two "Chinese" proclamations it is contended on behalf of the plaintiff that the Crown was thereby exercising a prerogative not available in the United Kingdom [Case of Proclamations (7)] where, in any event, the document was required to be made under the Great Seal and published [Keyley v. Manning (8)] to legislate by proclamation for or conquered territory. This prerogative right the Crown had not forfeited or disabled itself from exercising by the grant or solemn promise of subordinate legislative powers to a Governor and Assembly as had occurred in the North American Colonies, Malta and Granada. I think I am entitled to take judicial notice of the fact that the assemblies in those colonies were elected or, alternatively, to accept the authority of a distinguished constitutional historian to that effect. Campbell v. Hall (3) at page 212; Sammut v. Strickland (9); "British Rule and Jurisdiction beyond the Seas" by Sir Henry Jenkyns, Clarendon Press, 1902, page 7. In Sammut v. Strickland the Judicial Committee may well have used the words "representative institutions" with the definition of "Representative Legislature" in section l of the 1865 Act in mind. The Hong Kong legislature is neither elective nor fully sovereign as was explained by Lord Diplock when giving the advice of the Judicial Committee in Rediffusion (HK) Ltd. v. Attorney General (6) at pp 242 to 244.

28. The Crown contends that the nature of the American and Caribbean assemblies referred to by Lord Mansfield in his judgment in Campbell v. Hall, although well-known to him, was not the significant factor in his decision and that, by the grant of an appointed assembly, the Crown had effectively forfeited the right to legislate for the Colony of its own  motion. The point of "self-limitation" did not arise in Lam Yuk Ming v. Attorney General. (10)  I an therefore free to find, as I do, that in the absence of the grant of an elected assembly and therewith of significant attributes of sovereignty which, I believe, was the basis of Lord Mansfield's decision, the Crown had not fettered its ancient but apparently dormant powers to legislate for the Colony of Hong Kong by proclamation under the Great Seal; implying the advice of a known responsible minister. Jephson v. Riera. (11) In any event Article XI of the Letters Patent had expressly reserved to the Crown a concurrent right to legislate, whether by proclamation or otherwise, with the advice of the Privy Council.

29. But did the Sovereign, with or without the advice of the Privy Council or under the Great Seal or howsoever purport so to do? The Governor, not being a Viceroy and having no relevant delegated powers under the Order in Council or Letters Patent, could not legislate of his own motion and was certainly not in possession of the Great Seal. In my view he did not even profess vicariously to exercise the royal prerogative to legislate by the two "Chinese" proclamations nor, apparently, did he apply the seal of the Colony. There is no reason to presume that he did so. It is only necessary to look at the terminology of these pro-clamations to observe that, in contrast with the sealed proclamations made in English pursuant to ordinance or Order in Council their tenor, like those made by Captain Elliot or described in Ex-parte Chavasse (12) at pp 662 and 663, was rather promissory, informative and minatory than legislative. "To suppose that by such general statements in a proclamation the Government renounced their right to acknowledge what they thought right and conferred on a municipal court the right to adjudicate as upon rights which existed before cession is - to misapprehend the law -"per Lord Dunedin in Vajestingji Joravarsingji v. Secretary of State for India at page 367.

30. I have been shown no admittedly legislative act pertaining to Hong Kong expressed in the Chinese language. The "Chinese" proclamations were no exception. Her Majesty Queen Victoria did not thereloy exercise her residual on reserved  powers to legislate for Hong Kong by proclamation under the Great Seal of her own motion or with the advice of the Privy Council.

31. The formula "for the peace, order and good government" of a Colony is, in theory at least, subject to the examination of the court which may hold an ordinance to be beyond the powers so entrusted to the subordinate legislature and void but "such a power has been held 'to authorise the utmost discretion of enactment for the attainment of the objects pointed to' and  a court will not inquire whether any particular enactment of this character does in fact promote the peace, order or good government of the Colony." Chenard & Co. v. Arissol. (13)   Less drastically the court will, in the event of ambiguity, seek so to construe an ordinance as to render its provisions consistent with the comity of nations and the established rules of public international law. Bloxam v. Favre (14) at p 107; Macleod v. Attorney General for New South Wales  (15) at p 457; Salomon v. Commissioners of Customs and Excise (16) at pp 874 to 875. Further "a mere change in sovereignty is not to be presumed as meant to disturb rights of private owners and the general terms of a cession are to be construed accordingly. The introduction of the system of Crown Grants which was made subsequently must be regarded as having been brought about mainly, if not exclusively, for conveyancing purposes and not with a view to altering substantive titles already existing - the original native right was a communal right and it must be presumed to have continued to exist unless the contrary is established by the context or circumstances" per Lord Haldane in Amodu Tijani v. Secretary, Southern Nigeria (17)  at pp 407 to 410. In my view the contrary is clearly established in the Colony of Hong Kong by the unambiguous terms of the ordinances already referred to.

32. It is further submitted that, by parity of reasoning, the words "for the peace, order and good government" of the Colony appearing in the Order in Council, being of uncertain extent, must so be construed as to render legislation in breach of treaty ultra vires. These words "connote, in British constitutional language, the widest law making powers appropriate to a sovereign" per Lord Radcliffe in Ibralebbe v. The Queen (18) at p 923 though, in Hong Kong, such powers are subject to the provisions for disallowance expressly reserved to the Crown. In my opinion the words in question, hallowed as they are by long and widespread usage, are clear and unambiguous and must be given effect whether or not they carry out treaty obligations. It has never been held, though it has been suggested, that the laws of a Colonial Legislature in breach of   international law are void.

33. I also find that the ordinances of which the plaintiff complains were ratified by non-disallowance amounting in law to express authorisation. Directions given by a Secretary of State pursuant to Article III of the Letters Patent may render unnecessary amendment of the Royal Instructions.  In Inglis v. De Barnard (19) There fell for consideration an Order in Council made on the 15th January 1829 relating to the Registry of Deeds and Instruments in the Island of St. Lucia: "It may be lawful for the Governor or officer administering the' Government of the said Island with the advice of the Council of Government thereof by ordinances to be by them for that purpose from time to time made, as occasion shall require, to make ordain and prescribe all necessary and proper rules and regulations for the manner of keeping the before mentioned registry - a11 such rules and regulations being nevertheless subject to be disallowed by His Majesty in whole or in part as to His Majesty shall seem meet." It was suggested that the ordinance enacted in purported pursuance of the Order in Council went further than the Order permitted and was in consequence inoperative and void quoad such excess. It was held, however, that the ordinance having been so passed and a copy transmitted to the Government at home without disapproval or alteration, such ordinance must be considered as duly authorized by the Order and, that the  two instruments taken together comprised the law of the land.  Burnn v. Denman (20) and the somewhat unattractive case of Phillips v. Eyre (21) at pp 23 and 24 are authorities to like effect as, in the present jurisdiction, persuasively at least, is Pong Wai Ting v. Attorney General of Hong Kong. (22) There is one qualification to this rule. Non-disallowance, by analogy with the royal consent to a Dominion or Commonwealth statute, cannot give validity to an enactment which is void by Imperial statute or because repugnant to a Constitution; D'Emden v. Pedder (23) at p 117; Nadan v.The King (24) p 493.

34. Seeking to turn this principal of law to advantage the plaintiff points out that translations of two "Chinese" proclamations were sent to the Secretary of State who did not demur. But the acquiescence of the Crown to documents not having prima facie legislative effect is not to be equated with its express authorisation. Cameron v. Kyte (25) at p 342.

35. The Governor in Council has and at all material times had an unfettered right to legislate in relation to and to expropriate land in the New Territories during the currency of the lease from China.

36. Since it is not necessary it is not desirable for the Court to seek to determine whether or not the matters complained of amounted to expropriation and, if so, whether or not the ordinances recited in the Originating Summons authorised breaches of 1899 Convention. An analogous task was undertaken by Carrington C. J. in Chau Kwai Chiu & Anor. v. Wong Shin (26) ("The Shell Case"), but, since the Full Court was exercising its original jurisdiction, the case does not bind me. It is in any event distinguishable as the proceedings did not involve the Crown as a party. I do not follow the decision of the Chief Justice that the Crown had no power to confer title expropriating existing rights in breach of the Convention.

37. The ordinances relating to land in the New Territories being valid the declarations sought in pass 2, 5 and 6 of the Originating Summons are refused. It necessarily follows that the declarations sought in pares 3 and 4 must also be refused.

38. The relief claimed in paragraphs. 7 to 10 inclusive of the Originating Summons is as follows -

"

7. Alternatively to (1) to (6) above, by a true and proper construction of sections 13 and 14 of the Land Court (New Territories) Ordinance 1900 (Ordinance No. 8 of 1900) and sections 13 and 14 of the New Territories Land Court Ordinance 1900 (Ordinance No. 18 of 1900) a declaration -

(a) That the Land Court, in allowing claims under section 13 of the aforesaid Ordinances had no power to impose restrictions as to user of the said lands.

(b) That the Crown in granting a title under section 14 of the aforesaid Ordinances had no power to impose restrictions as to user of the said lands.

(c) That accordingly, the Lease granted by the Crown to the plaintiff's predecessors-in-title on 24th January 1905 is void insofar as it purported to restrict user of the said lands.

8. Further and in the alternative to (7) above, a declaration that section 8 of the New Territories Ordinance, Cap. 97 Laws of Hong Kong, is valid only to the extent of 99 years from the 1st day of July 1898, and accordingly -

(a) The plaintiff is entitled to possession of the said lands on the expiry of 99 years from the 1st day of July 1898, and

(b) Section 5 of the Crown Lands Resumption Ordinance, Cap. 124, Laws of Hong Kong is of no effect insofar as it purports to extinguish the rights of the plaintiff beyond the period of 99 years from the 1st day of July 1898,

9. Alternatively to (1) to (8) above, a declaration that the said lands were not expressed to be demised as agricultural or garden ground by the said Lease on 24th June 1905.

10. Alternatively to (9) above, if' which is denied, the said lands were demised as agricultural or garden ground, the plaintiff may use the said lands for any use other than building purposes and in particular for the open storage of motor vehicles."

39. As regards the Seventh declaration sought I am satisfied that the Land Court did not itself do more than "allow" claims to title and that the Governor was acting intra vires in granting consequential leasehold titles shorter in time than the Crown's interest and subject to restriction, pursuant to valid ordinances. The lease acquired by the plaintiff was wholly valid. This declaration is refused.

40. As regards the Eighth declaration sought I am satisfied that, subject to any leases granted, section 8 of the New Territories Ordinance Cap. 97, following earlier legislation, was apt to vest all land in the Territories in the Crown until and only until the expiry at midnight on the 30th June 1997 of the lease by China to the Crown. Prior to that date land may, as occurred in the case of part of the plaintiff's land validly be resumed pursuant to section 3 of the Crown Lands Resumption Ordinance, Cap.124.  But whether or not the words in section 5 providing, in relation to resumed land, that "all the rights of the owner, his assigns or representatives and of any other person in or over the land or any part thereof shall absolutely cease" have effect after the 30th June 1997 is not a question upon which I have material or have heard argument warranting a ruling. I am not prepared to make any declaration in relation to land title in the New Territories on or after the 1st July 1997.

41. As regards the Ninth declaration sought the plaintiff, reserving rights elsewhere, does not suggest that this Court can grant such relief. Watford Construction Co. Ltd. v. Secretary for the New Territories (27) It is refused accordingly.

42. As regards the Tenth declaration sought I grant a modified formula, not opposed by the Crown here, as follows -

"The severed land may be and prior to resumption the resumed land might lawfully have been used for open storage of motor vehicles or any other purpose apart from building purposes inconsistent with the proper occupation of the said lands as agricultural or garden ground or from any noisy, noisome or offensive trade or business." Attorney-General v. Melhado Investment Ltd.

(M. Kempster)
Judge of the High Court

(1)    (1969) H.K.L.R. 1.59

(2)    Privy Council Appeal No. 16 of 1982

Advice delivered on 21st February 1983

(3)    (1774) 1 Cowp 204

(4)    (1457) 2 All E.R. 785

(5)    (1) (1924) L.R. 51 Ind. App. 357

(6)    (1970) H.K.L.R. 231

(7)    (1611) 12 Cc Rep 74

(8)    (1630) Cro Car 180

(9)    (1938) A. C. 678

(10)   (1980) H.K.L.R. 815

(11)   (1835) 111 Knapp 130

(12)   (1865) 4 De G, J-and S 655

(13)   1949 A. C. 127

(14)   (1883) 8 P D. 101

(15)   1891 A.C. 455

(16)   (1966) 3 All E. R. 871

(17)   1921 A. C. 399

(18)   1964 A. C. 900

(19)   (1841) 3 Moo P.C. 425

(20)   (1848) 2 Exchequer 167

(21)   (1870) L.R. 6 Q.B. 1

(22)   (1925) H.K.L.R. 22

(23)   (1904) 1 C.L.R. 91

(24)   1926 A.C. 482

(25)   (1835) III Knapp 332

(26)   9 Commonwealth Int. Law Cases 298

Hong Kong Daily Press 30th June 1900

(27)   (1978) H.K.L.R. 410

Representation:

David Widdicombe Q.C. and Anthony Neoh (Raymond Tang & Co.) for plaintiffs

John Griffiths Q.C., Attorney General, R.A. Osborne and Alfred Chow (Legal Dept.) for the Crown