1.04. The effects of this exceptional rainfall and the measures which were taken to effect repairs and restore essential services with the minimum of delay are recorded in greater detail in paragraph 4.02. Several illustrations are also included in this report.

1.05. The Resettlement Building Programme continued at a high level. Domestic accommodation to house 125,000 people was completed and buildings to house another 238,000 were under construction on 31st March, 1966. In the Government Low Cost Housing Programme completed accommodation at 5,000 individual units was disappointing but buildings to house 66,000 people were under construction.

1.06. The capital cost of completed building works in the private sector for the year was $963 million, a figure which represents a decrease of 10.9% compared with $1,078 million for 1965-66. The slowing down of development in the private sector is illustrated more clearly by a drop of 34.6% in the number of approval permits issued under the Buildings Ordinance.

1.07. In last year's Report reference was made to tenders which had been received for the supply and erection of a sea water distillation plant capable of producing either two or three million gallons of fresh water daily. After consideration of the tenders and taking into account the overall situation in regard to conventional supplies it was decided not to proceed with the scheme.

1.08. In the field of transport the consultants made good progress on their Feasibility Study on Mass Transport Systems and during the year the same consultants were appointed to undertake a Long Term Road Study. Another firm of consultants was commissioned to prepare a report on a new highway linking Tsuen Wan and Castle Peak. The Report on Sewerage and Sewage Disposal in the New Territories referred to in last year's report was completed.

1.09. Detailed planning of the cross harbour tunnel landfalls and other associated road works continued in association with the Tunnel Consultants. No firm decision to proceed with the tunnel had been taken by March 31st 1967.

1.10. Rainfall during the last 8 months of the year was very low and in view of the poor storage position it was necessary to introduce water restriction on 15th February when the supply was restricted to 16 hours daily. In November 1966 the People's Council of Kwangtung Province agreed to increase the water that could be drawn from the East River

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