Inyungtienanddien,wehavetransfersofownershiprightswhichmayberegardedasspecialcasesoflandlease.Turningtothegeneralcase,bytheleaseoffarmlandismeant"theuseofanotherperson'sagriculturallandforthepurposeofcultivationbyoneselfbypayingarenttherefor"（Art.106）.Underthepre-reformlandlaw,thefollowingarticlesareworthnoting:
Art.108.Thelesseeshallnot,evenwiththeconsentofthelessor,subleasethewholeorpartoftheleasedfarmlandtoanotherperson.
Art.109.Anyfarmleasecontractforadefiniteperiodshall,unlessthelessortakesbackthelandforhisowncultivationontheexpirationofthecontractualperiod,bedeemedtohavebeenrenewedforanindefiniteperiod,ifthelesseecontinuestocultivatethesaidland.Art.114.Anyfarmleasecontractforanindefiniteperiodmaybeterminated……wherethelessortakesbackthefarmlandforhisowncultivation.
Art.117.Wherethefarmlandtakenbackbythelessorforhisowncultivationisagainofferedforlease,theoriginallesseeshallhavepreferentialrighttoacceptthelease.
Theabovearticlessetdownthreemainpoints.First,subleasingwasprohibited（Art.108）.Butthisdidnotpreventotherdisguisedformsofsubleasingsuchasjointtenancy.Second,thelessorcouldterminatetheleasecontractforhisowncultivation（Art.109and114）.Thisineffectimposednorestrictiononthelengthofleaseotherthanthecontractedlength,sincetheterm"ownercultivation"isvagueenoughtoallowthehiringoffarmhandstodothetilling.Itwastothisprovisionthat"insecure"tenurewasfrequentlyattributed,providingareasonforthelawtobecondemnedasoutofdate.Andthird,thoughpreferentialrighttoleasewasallowedtotheoriginallessee,thereexistednorestrictiononthelessor'srighttorevisetheoriginaltermsuponrenewalofthecontract.AprovisionforrentcontrolisseeninArt.110oftheprereformlandlaw,wherein"farmrentshallnotexceed8percentofthevalueoftheland."Accordingtothelawmaker,however,"duetocircumstancesthishadneverbeenenforced."[8]Thishasgivenrisetotheclaimthattenantsweretotallyunprotectedandexploitedbylandowners.
TransferabilityandDelineationofInvestmentRights
InvestmentsinlandandotherassetsattachedtolandownedbythelessorwereprotectedbytheChinesecivilcode:
CivilCode,Art.432.Thelesseeshallkeepandpreservethething[property]leasedwiththesolicitudeofagoodadministrator.Ifthethingleasedhasproductivity,heshallalsopreserveitsproductivity.
Ifthelesseeactscontrarytotheprovisionsoftheprecedingparagraphandtherebycauseslossordamagetothethingleased,heshallbeliabletopaypensationtherefor.Butheshallnotbeheldresponsibleforanydamageorchangecausedtothethingleasedthroughitsuse,orthroughtheenjoymentoftheineaccruingtherefrom,insuchwaysasareagreeduponorasareinconsonancewiththeinherentnatureofthethingitself.
CivilCode,Art.462.Whereagriculturalimplements,livestock,orotheraccessoriesareleasedtogetherwiththefarmland,aninventoryofthesameshowingtheirrespectivevaluesshallbemade……Ifanyaccessorymentionedintheinventorybedestroyedorlostowingtocircumstancesforwhichthelesseemustbeheldresponsible,heshallbeliabletomakeitgood.
CivilCode,Art.445.Forthesettlementofclaimsarisingoutoftheleasecontract,thelessorofanimmovablepropertyshallhavetherightofretentionoverthemovableswhichbelongtothelesseeandarefixedtothesaidimmovableproperty.Butthisprovisionshallnotapplytomovablesthatarenotsubjecttoattachment.
ThislastArticleisthusconditionaltoArt.118ofLaw:
ThelessorshallnotexercisetherightofretentionprovidedforinArt.445oftheCivilCodeoversuchfarmimplements,livestock,fertilizers,andfarmproductsofthelesseeasarenecessaryforcultivation.
InvestmentsinlandbythelesseewereprotectedbytwoArticlesinLaw,whichread:
Art.119.Byspecialimprovementsonfarmlandshallbemeantimprovementsresultingfromtheincreasedapplicationoflaborandcapitalwhich,besidespreservingtheoriginalqualitiesandutilityoftheland,increasesitsproductivityorfacilitatesitscultivation.
Thelesseemayfreelymakethespecialimprovementreferredtointheprecedingparagraph,butshallnotifythelessoroftheamountoftheoutlayincurredthereon.Art.120.Whenanyfarmlandisreturnedtothelessorontheterminationoftheleasecontract……thelesseemayclaimfromthelessorrepaymentoftheoutlayincurredonthespecialimprovementsreferredtoinparagraphtwooftheprecedingArticle,butsuchrepaymentshallbelimitedtothecostofthatpartofthespecialimprovementswhichhasnotlostitsutility.
Intheabovearticlestheownershipofproductiveentitiesotherthanlandwasclearlydelineated.Itshouldbenotedthat,accordingtoArt.120above,nocapitalgainwasexplicitlyallowedtothelesseeforthe"specialimprovements"madebythelessee.Hemightbepensated,ofcourse,byadjustingtherentaltermsintheleasecontract.
WemaynowbrieflysummarizetheattributesofprivatefarmlandownershipinTaiwanbeforethereform.Althoughmineralrightswhichmightbeattachedtolandweredeniedasprivate,therighttofarmwasdefinedasexclusive.Investmentsmightbemadebythelessororthelessee,andineithercasetheownershipofresourceswasclearlydelineated.Transferabilityoflandtenurerightswasprovidedintheformofoutrighttransfers,yungtien,dien,mortage,andlandlease.Underlandlease,pensatingpaymentsforfarminginvestmentsmadebyeitherpartywerenotrestricted.Wemay,therefore,designatethefarmingresources,affectedbythefirstphaseofTaiwanlandreform,asresourcesunderasystemofprivatepropertyrights.[9]