# GENERAL
# INTRODUCTION
1.01. The Colony of Hong Kong has an area of approximately 3981 square miles with an estimated population (at the end of 1965) of 3,698,000. The bulk of this population is concentrated in a very intensively developed area of some 9 square miles covering the northern shore of Hong Kong island, the Kowloon peninsula and New Kowloon from Lei Yue Mun in the east to Lai Chi Kok in the west. Tsuen Wan, in the New Territories, a few miles north-west of Lai Chi Kok is developing rapidly and now has a population of about 235,000. The frontispiece map shows the extent of these built-up areas.
1.02. For years investment in private development has been increasing at a spectacular rate. This has been reflected in the revenue from land sales as well as in the value of completed buildings. In last year's report reference was made to the drop in revenue collected from land sales in 1964-65 and this trend continued in 1965-66. Revenue from land and the letting of Government buildings was a little over $85 million, a drop of some $54 million compared with 1964-65 and $119 million compared with 1963-64. Following the banking difficulties of February 1965 there has been a virtual cessation of interest in the acquisition of Crown land for residential development and this has been reflected in a significant drop in the submission of new plans for approval under the Buildings Ordinance.
1.03. However, with some exceptions, construction continued on building works which had already commenced and expenditure on private buildings completed in 1965-66 amounted to $1,078 million, compared with $827 million in the previous year and $668 million in the year before. This figure of $1,078 million represents the cost of private buildings completed in 1965-66 and does not represent actual expenditure during the year. The effect of the present recession in the private sector is likely to show itself in the value of buildings completed this year and the following year.
1.04. Public Works Department Non-Recurrent and Recurrent expenditure, excluding personal emoluments, totalled $660 million compared with $544 million in 1964-65. This figure represents actual expenditure