9.
In Hugh Norman-Walker's telegram of 5th December he mentioned references to a crash programme and I would like to emphasise that the six-year programme
is related to our ability to find sites close to the existing centres of population and places of work; new towns are planned at Shatin and Castle Peak, but there are formidable engineering problems to be overcome before any major expansion of population in either of these areas can be envisaged. But when major development of these townships does take place it is likely that the great majority of the population in them will be housed in Government-provided housing as indeed it is in the existing new towns of Kwun Tong and Kwai Chung where respectively 79% and 97% of the populations to date of 380,000 and 133,000 live in Government housing. Similarly it is not insignificant I feel that of public works non-recurrent expenditure on building works an average of 40% will be spent on public housing over the next five years.
I trust this letter has helped to shew that we are by no means inactive in housing matters, and that we keep the complex and difficult problems surrounding this important subject under adequate, but careful, review. The remaining problems are not, unfortunately, ones that can be solved by the mere provision of funds or the acceleration of physical construction. The building industry generally is pretty well stretched to the limit already by existing plans.
If I can elaborate further on any of the points in this letter I would, of course, be happy to do so.
Ynus ever David.