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There are four reasons why this area developed incense wood cultivation. Firstly, the area is extensively underlain by igneous rocks, the disintegration of which forms sands and silts: an ideal soil type for the growth of the incense tree. Secondly, the long history of cultivation of incense trees in Tung-kuan had enabled the cultivators to accumulate the necessary experience in the technique of incense tree cultivation. Moreover, the fact that most of the cultivators inherited their business from their fathers suggests that they were highly skilled in the cultivation of incense trees, and the tapering and cutting of incense wood.2 In addition to these physical and historical factors, the market for incense products was large. There was a high demand from the inland areas of Kuang-tung, Chiang-hsi and Che-chiang which consumed large quantities of incense wood annually. The Hong Kong area, being geographically accessible, collected incense wood logs in Tsim Sha Tsui (then called Tsim Sha T'ou or Hsiang Pu T'ou) from where it was shipped by small boats to Shek Pai Wan (near Aberdeen) and then reshipped by Chinese sea-going junks to Canton. From this place, incense wood was transported northward overland to Chiang-su and Che-chiang. Thus the cultivation of the incense trees also stimulated the development of the small local ports.
It has been suggested that the cultivation of and trade in incense trees gave rise to the name of Hong Kong (literally meaning "Incense Harbour", #),
香港
Little Hongkong, or Heung-kong-wai, is said to have been so-called on account of the quantity of Pak-mu-heung-shu then growing there, the wood of these white-wood fragrant trees is called “Nga-heung” (i.e. fragrant wood white as a tooth), is odoriferous when burnt, and although now the woodcutters have left but few trees there and at Wong-nei-chung, yet formerly it grew abundantly there. In the time of the Han Dynasty, this wood, it is said, was highly valued, and formed an article of tribute.
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It seems that before the mid-seventeenth century, the incense industry, though one of the three major industries of Hong Kong, was not engaged in the manufacture of joss sticks. For example, Fêng K'ê-pin of the Ming Dynasty has 22 prescriptions for the use of incense powder, but none refers to the manufacture of joss sticks.*