determine the pattern of travel within Hong Kong and was undertaken by departmental staff under the direction of an officer seconded from the U.K. Road Research Laboratory. The aim of the latter report, which was prepared by Consultants, was to investigate various methods of mass transport and to recommend a system to meet Hong Kong's long term transport needs. The report recommended the construction of an underground railway system comprising a line running from Kennedy Town to Chai Wan on Hong Kong Island, with a cross-harbour link from Victoria to Tsim Sha Tsui and three separate but inter-connected lines serving Tsuen Wan, Sha Tin and Kwun Tong.

1.15. A third report, which will attempt to set out Hong Kong's long term highway requirements, is nearing completion and read in conjunction with the two reports referred to in the preceding paragraph should provide a useful starting point for the Department's transportation planning in the future.

1.16. Activity in the property market continued to be depressed and as a consequence there were few sales of Crown land. Additionally some purchasers of land in earlier years, paying their premia by instalments, experienced difficulty in maintaining them and concessions made previously in respect of fulfilment of Building Covenants were continued. The publication of the Tsim Sha Tsui Outline Zoning Plan which covers a major planning area, including the former Whitfield Barracks, aroused considerable public interest.

1.17. The capital cost of completed building works in the private sector for the year amounted to $550 million, a figure which represents a decrease of 42.5% compared with $963 million for 1966-67. The slowing down in the tempo of private building development is also illustrated by a drop of 35.6% in the number of approval permits issued under the Buildings Ordinance. Towards the end of the period under review, there were, however, indications of greater interest in new building projects and it is possible that the downward trend may now have reached its limit.

1.18. An event which has had far-reaching effects on the organization of the Department and the scope of its work occurred on 1st July, 1967, when it assumed responsibility for the construction and maintenance of buildings and installations required for the use of the British Armed Forces. The two sub-departments principally affected are the Architectural Office and the Electrical and Mechanical Office and reference to

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