NEW TERRITORIES

(Contd.)

The total amount paid by him was about thirty dollars. As soon as his claim was confirmed he sold it to a local company for fifty thousand dollars, as the bay, a portion of which is included in the claim, is suitable for the construction of a dock.

I hope that the labours of the land court may be concluded by the end of the year, when Mr. Gompertz will revert to his substantive appointment as assistant Colonial Secretary.

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The first portion of a historic despatch by the Governor (Sir Henry Blake) on the administration of the New Territories after they were leased to Britain, was given yesterday. It covered the period up to the close of the year 1902. The concluding part of the report follows:

The revenue collected from the Territory during the year (1902) was $45,331.03. I request whether the revenue to be derived from Crown rent at the rate fixed at present will exceed $60,000 so far as the New Territory is concerned, outside the portion between the Kowloon range of hills and the harbour; but for this portion I look forward to a steady development as soon as the claims to the land have been settled. It will be seen in reference to appendix No. 4 p. 19 of the report forwarded with my despatch No. 61 of 19th February 1900, the right to alter the amount of Crown rent there laid down for the three classes of cultivable land was reserved, but having regard to the density of the population and their condition, I question whether any general increase will be found advisable.

The area of the New Territory is about 370 square miles, of which the cultivated area is about 45,000 acres or 61 square miles. The estimated population is 100,000. Therefore although the population shows but 270 persons per square mile of the total area, the population per square mile of cultivated area is 1,639, and while to the produce of the land must be added the result of the fishing in which a considerable number of the inhabitants are engaged for a portion of the year, it is evident that having regard to density of the population, there can be little taxable margin in the absence of other than agricultural industries.

Although up to the present the hills have not been utilised for pastoral purposes, I am not without hope that by the introduction of more succulent grasses the 200 square miles of now barren hills may be made to support cattle sufficient to supply the demands of Hong Kong, now dependent upon the import of cattle from the North and West River sources that recent action of the Government of Kwongsi in prohibiting export has shown to be somewhat precarious.

The Botanical Department is at present examining into this question.

For the improvement of agriculture, sugar canes have been imported from the Straits Settlements and Honolulu, and over eleven thousand plants distributed among the Chinese and improved sugar mills have been introduced, while a wealthy and enterprising Chinese gentleman has established an experimental farm in the conduct of which the Botanical Department is giving him assistance and advice.

The expenditure was for the year 1901, $326,668.73 of which $163,741.11 was chargeable to the land court and public works extraordinary charges that will soon cease. It may therefore be roughly taken that the normal expenditure of the Territory will be about $162,000. With the certain development of New Kowloon and the probable improvement of the pastoral capabilities of the hills, I am of opinion that within seven or eight years the revenue

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