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pre-war level, property owners should be given the opportunity to carry out repairs with materials and labour at pre-war prices. A condition of such help might be that the property owner should transfer his claim for war damage to Government.
It is my considered opinion that, unless materials and labour are subsidised, a re- building loan, even without interest, would be insufficient to tempt landlords to repair their properties at the present time. They would be borrowing money with which they could only re-condition their premises at very high cost, and would be faced with the necessity of eventually paying back the money when building materials became relatively cheap. With the return to normal prices, new houses and flats would be erected at low cost in competition with the old type premises.
An attempt is being made to obtain an estimate of the total cost of materials required for rehabilitation. This estimate will be based on the quantities shown in tabular form in the Interim Report. Though of necessity the figures cannot be exact, it is hoped that they will be sufficient to enable the Hong Kong Government to initiate arrangements for obtaining the necessary credits from the Home Government.
Hong Kong, 12th March, 1946.
(Signed) LAWRENCE KADOORIE.