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Preamble.

Colony of Hongkong.

Since 1841, when the Island and Peninsula were ceded to Great Britain, the Colony of Hongkong has become a thriving centre of industrial and commercial activity, its commercial importance being due to its unique geographical position and its almost unrivalled steamship communication with the rest of the world. Situated at the mouth of the Canton deltà into which flow the West, North and East Rivers navigable for a total of about 630 miles by small River Steamboats, and their numerous tributaries and small canals navigated by native craft wherever there is sufficient depth of water, the Colony has developed into a great entrepôt of trade and the principal European-Chinese financial centre for South-east Asia. The leading industries are shipbuilding, sugar refining, rope-making, the manufacture of cement and tiles, besides many native industries such as rattan work, machine knitting, the manufacture of sauces, the build- ing of native craft, furniture-making, canning, and putting the marketing touch on many of the products of the territories of South China.

The Colony, including leased territories, has an area of about 410 square miles and the population approximates one million, whilst Kwangtung, the neighbouring province of South China for which Hongkong is the distributing centre, has an area of about 100,000 square miles and said to have a population of 32 millions, the Customs Authorities' estimate of the population of Canton, the capital of the province, some 95 miles from Hongkong, being 24 millions.

Hongkong Harbour and need for Development.

In Hongkong we have a natural harbour of almost unrivalled excellence, the development of which has been left to private enterprise. Up to recent years the movement of commerce has been simple being attracted by natural advantages and little competition. It made little difference physically with the business of the Port whether quays or piers exist so long as there is deep water. Strategic water-fronts have been acquired and held by private enterprise but with the growth of business, increased cost of land and consequent increased cost for storage, increased cost of labour and the possibi- lity of deflection of trade, there has come an appreciation of the necessity for development on more modern lines.

Having come to the conclusion that it is highly desirable that Government should have the benefit of the advice of an expert Harbour Engineer on the question of the steps which ought to be taken to improve the Harbour, His Excellency, the Governor, addressed a despatch on the subject to the Secretary of State for the Colonies on the 5th of March, 1920. His Excellency considered that the prospects of linking up the Kowloon-Canton and the Canton-Hankow Railways appeared then to be favourable and that there was some hope that the following few years may see through communication established with the North of China; and that when this has been effected, Kowloon will become a very important railway terminus. The question of laying out of the necessary wharves and quays he considered to be one of importance in regard to which he considered it very desirable to have expert advice. Apart from this he referred to the probability of a considerable increase in size of the ocean-going steamers which will call at this port and decided that it is important that all possible steps should be taken to place the port of Hongkong in a position to deal satisfactorily with any new developments.

In their report dated May 1920, the Shipping and Ship-building Sub-Committee of the Economic Resources Committee, refer to the question of Harbour Improvements as a matter of the utmost importance to the Colony and state that the idea held by those most vitally concerned is, that the harbour is the Colony's only asset and that the Government should not play with improvements suggested by amateurs. They main-

The Illustrations may be seen on application to the Chief Clerk, Colonial Secretary's Office or to the Secretaries of the Hongkong General and Chinese Chambers of Commerce.

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