for the middle-income class. This was to encourage the middle class to stay
in Hong Kong and work, at the same time alleviating the housing shortage in
densely populated areas. The government provided a housing loan of 1 million
75
‘Report of the Director of Public Works for the Year 1920’, Hong Kong Administrative Reports, Hong
Kong, Noronha & Co., p.Q61.
76
‘Report on the Census of the Colony for 1921’, Hong Kong Sessional Papers, Hong Kong, Noronha &
Co., 1921, p.173.
77
‘Report on the Census of the Colony of Hong Kong, 1931’, Hong Kong Sessional Papers, Hong Kong,
Noronha & Co., 1931, p.104.
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Table 2.5 Development of Sham Shui Po District (1902–1926)
Year Type of Details Cost
construction (HK$)
1902 Road Construction of a road from Sham Shui Po to Lai Chi Kok 20,000
1903 Building Construction of the Harbour Master complex in Sham
Shui Po, the earliest government building
1903–1908 Land Land formation works
formation
1905 Building Construction of Sham Shui Po Police Station
1908 Building Sold formed land to the Chinese to construct housing
1909–1912 Reclama- Reclamation on private land lots (NKIL 26, 27, 39, 41,
tion 46–50) with a total area of 3.05 acres (1.23 hectares)
1911 Drainage Construction of drainage systems 4,374
1912 Road Construction of a temporary road from Tai Kok Tsui to
Sham Shui Po
1912–1914 Reclama- The government began reclamation works: 5.03 acres 77,396
tion (2 hectares) for phase 1 and 4.64 acres (1.9 hectares)
for phase 2
1914–1918 Road Construction of roads on newly reclaimed land
1914 Public Installation of street lamps
facilities
1916 Road construction of a road from Shanghai Street to Sham 12,500
Shui po, which was 20 feet wide, 2,400 feet long and
connected with major roads in Kowloon
1916–1918 Drainage construction of sewage outfalls in the new lots
1918 Road construction of a road from Sham Shui po to castle 16,888
peak, with the Sham Shui po–Lai chi Kok section being
1.48 miles long
1918–1920 Water- Water supply systems in Kowloon reached Sham Shui po 30,415
works District. In September 1919, fresh water supply became
available in the district. Water pipe laying works were
completed in December 1920
1918–1926 Reclama- Reclamation works involving an area of 65.24 acres 661,441
tion (26.4 hectares) commenced, of which 37.87 acres (15.3
hectares) were to be used for housing. the project was
completed in July 1926
1918 Drainage Expansion of the Nam cheong Street drainage system 3,713
from pei Ho Street to Yee Kuk Street
1918 Pier Addition of ferry services to Yau Ma tei
1919 Drainage Expansion of drains in Yen chow Street (from Yu chau 6,986
Street to Apliu Street), in Yu chau Street (from Yen
chau Street to Kweilin Street) and in Lai chi Kok Road
(from Yen chau Street to Kweilin Street)
1920 Public public latrines were constructed at the junction of Apliu 10,511
latrines Street and Kweilin Street and the junction of Yee Kuk
Street and pei Ho Street. construction was completed
in 1921
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Expansion of the territory (1898–1941) · 95
Table 2.5 (continued)
Year Type of Details Cost
construction (HK$)
1920 Levelling The hills in Fuk Tsun Heung, which stood between Tai 325,174
Tai Kok Kok Tsui and Sham Shui Po, were levelled. This yielded
Tsui Hill an area of 42.9 acres (17.4 hectares), and the rock
material obtained from the levelling of hills was used to
construct Tai Po Road
1921 Building Construction of the Sanitary Board’s temporary branch
at Pei Ho Street
1924 Building Reconstruction of Sham Shui Po Police Station
1925 Road Improvement of roads in Sham Shui Po District
1926 Building Completion of Sham Shui Po Theatre
Sources: ‘Report of the Director of Public Works for the Years 1899–1907’, Hong Kong Sessional Papers, Hong Kong, Noronha
& Co., 1900–1908; ‘Report of the Director of Public Works for the Years 1908–1925’, Hong Kong Administrative Reports,
Hong Kong, Noronha & Co., 1908–1925.
Hong Kong dollars to provide 11 bungalows and 29 flats on Hong Kong Island,
67 bungalows and 63 flats in Kowloon, and one bungalow in Fanling.78 Located
north of Boundary Street near Tsim Sha Tsui,79 Kowloon Tong was a pilot trial
of a comprehensive development model based on the British garden city.80
On 18 November 1920, Chief Secretary A.G.M. Fletcher estimated during a
Legislative Council meeting that the monthly rent would be around 25 Hong
Kong dollars in the Kowloon Tong residential area, which was tailored for the
middle class.81 On 14 November 1921, Chief Secretary Claud Severn reiter-
ated in a Legislative Council meeting that the houses in Kowloon Tong would
provide low-rental properties.82 In the Legislative Council meeting held on
30 August 1923, Chief Secretary A.G.M. Fletcher stated that some of the houses
would be reserved for Chinese and Portuguese senior clerks under the Kowloon
Tong Development Project.83
The Kowloon Tong Development Project was also known as the Garden
City Project, the concept of which originated from the book Tomorrow: A
Peaceful Path to Real Reform written by British national Ebenezer Howard in
1899.84 The concept was further developed in Garden Cities of Tomorrow in
1902 and attracted much attention. The Garden City Association was estab-
lished in 1899. In 1903, Garden City Co. Ltd established the first garden city.
78
Hong Kong Hansard, Hong Kong Government, 28 October 1920, p.51.
79
CO129/520/12, ‘Development of Kowloon Tong Estate’, 16 June 1930, p.10.
80
CO129/494, ‘Land Resumption in the New Territories’, 4 October 1926, p.56.
81
Hong Kong Hansard, Hong Kong Government, 18 November 1920, p.75.
82
Hong Kong Hansard, Hong Kong Government, 14 November 1921, p.174.
83
Hong Kong Hansard, Hong Kong Government, 30 August 1923, p.78.
84
Ebenezer Howard, Tomorrow: A Peaceful Path to Real Reform, London, Swan Sonnenschein, 1899.
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Table 2.6 List of reserve prices and areas in public auctions of Sham Shui Po District (1906–1941)
Year Lot registry no. Area (sq. ft) Upset price Mean of the Average price per
(HK$) total value of sq. ft of the land
the average price sales (HK$)
per sq. ft of the
respective lots
(HK$)
1906 New Kowloon Inland (NKI) Lot Nos 26, 27 33,810 1,973 0.11 17.14
1914 Survey District 4 Lot No. 1025 1,300 39 0.03 33.33
1920 NKI Lot No. 311 7,887 3,944 0.50 2.00
1921 NKI Lot Nos 323, 333, 337–339, 340, 341, 350 30,026 3012.75 0.71 9.97
1922 NKI Lot Nos 366, 367, 391, 419 149,492 39,848 0.90 3.75
1923 NKI Lot Nos 465, 480 6,327 6,327 2.00 1.00
1924 NKI Lot Nos 570, 583, 636 12,634 12,907 3.08 0.98
1925 NKI Lot No. 991 1,725 5,175 3.00 0.33
1927 NKI Lot No. 1111 5,400 8,100 1.50 0.67
1928 NKI Lot Nos 1122–1123, 1133–1135, 1137–1138, 1143, 1148–1155, 137,561 7,345 1.39 18.73
1166–1168, 1170, 1184–1185, 1187, 1190, 1193, 1196–1197
1929 NKI Lot Nos 1199, 1202–1205, 1207, 1215, 1218, 1246–1248, 1254, 165,072 9,460 1.47 17.45
1262, 1268, 1273–1276, 1280–1281, 1284–1285, 1290–1291, 1297
1930 NKI Lot Nos 1299, 1304, 1317–1318, 1327–1328, 1340, 1374, 1387, 194,038 9,576 1.31 20.26
1395, 1398, 1403, 1406, 1408, 1409, 1412–1415, 1421–1423, 1425,
1428, 1434–1435, 1441–1442
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1931 NKI Lot Nos 1445, 1447, 1460–1461, 1477–1479, 1488–1489, 1492, 192,645 18,358 1.96 10.49
1500, 1518, 1545, 1556–1559, 1566, 1631, 1664
1932 NKI Lot Nos 1664, 1870, 1889, 1900, 1922–1923, 1927, 1941, 2001, 81,148 21,945 2.77 3.70
2013, 2014
1933 NKI Lot Nos 2032, 2092, 2175 18,772 16,075 2.67 1.17
1934 NKI Lot Nos 1974, 2263 3,718 5,298 2.75 0.70
1936 NKI Lot Nos 2503, 2506 86,100 26,933 1.33 3.20
1937 NKI Lot Nos 2593, 2601 9,555 10,750 1.69 0.89
1938 NKI Lot Nos 2625, 2627, 2630, 3631, 3632 19,755 9,759 0.49 2.02
1939 NKI Lot Nos 2667, 2680, 2715, 2729, 2749 30,795 10,875 1.95 2.83
1940 NKI Lot Nos 2770, 2774, 2785, 2790, 2791, 2793, 2798, 2803, 2810, 110,398 12,953 1.53 8.52
2820–2821, 2827, 2830
1941 NKI Lot No. 2850 14,870 22,305 1.50 0.67
Total area of land sold over the years 1,313,028
Total upset prices of land sales over the years 1,995,617
Sources: ‘Report of the Director of Public Works for the Years 1906–1907’, Hong Kong Sessional Papers, Hong Kong, Noronha & Co., 1907–1908; ‘Report of the Director of Public Works for the Years 1908–1941’, Hong
Kong Administration Reports, Hong Kong, Noronha & Co., 1908–1941.
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98 · MAKING HONG KONG
Aiming to preserve the concept of country life of the traditional Victorian era,
Howard turned Letchworth, with a total area of 3,822 acres (1,547.9 hectares)
and just 35 miles (56,327 metres) away from London’s industrial and com-
mercial development zone, into a town that catered for industries and provided
local job opportunities, as well as appropriate community life. The houses had
gardens, and there were sufficient open space and areas for community activi-
ties. It was also a medium-sized industrial and commercial town with green
belts. With convenient transport and a population capacity of 35,000 people,
the town was most effective in diverting population from the urban areas.
Howard’s concept combined a twentieth-century urban lifestyle that facili-
tated economic and societal development with a humanised country lifestyle.
The concept adopted by Letchworth was acclaimed in Europe and the United
States, with many countries striving to follow suit.85 The geographical condi-
tions of Kowloon Tong were similar to those of Letchworth and thus had much
potential for development.
In 1921, the government planned to invite the private sector to bid for the
development of Kowloon Tong. In 1922, Kowloon Tong and New Territories
Development Co. was invited by the Hong Kong government to develop a bun-
galow residential area near Kowloon Tong Railway Station. The residential area
was designed to have schools and sufficient open spaces to cater for the sala-
ried class. In 1923, the government resumed 137 pieces of land to develop the
area; compensation paid for land resumption amounted to 58,000 Hong Kong
dollars. In 1926, it allocated 9.11 acres (3.7 hectares) of land to the Kowloon
Tong Garden City Project. Combined with the earlier allocation, the project
was given a total of 54.43 acres (22 hectares) of land,86 which was 38.54 acres
(15.6 hectares) more than the original plan of 15.81 acres (6.4 hectares) in
1921.87
Owing to the comparatively high elevation of the area, one of the major
challenges of developing a comprehensive community in Kowloon Tong was
solving the issues of water supply and sewerage systems. As a result, drainage
works in Kowloon Tong involved a great deal of human and other resources.
Another technical problem to overcome was the excavation of soil from the hills
in Kowloon Tong to create land. In 1924, the quantity of soil excavated reached
430,000 cubic yards, with another 250,000 cubic yards excavated in 1925. Most
of the excavated soil was placed in low-lying areas88 for land formation purposes.
On the other hand, nullahs had to be constructed and sewerage pipes laid in
the eastern part of the area,89 while streams in the hilly area north of Kowloon
85
Ebenezer Howard, Garden Cities of Tomorrow, London, Faber and Faber, 1902, 1964 reprint, p.24.
86
‘Report of the Director of Public Works for the Year 1926’, Hong Kong Administrative Reports, Hong
Kong, Noronha & Co., 1927, Appendix Q, Q 105.
87
Hongkong Telegraph, 5 August 1921.
88
‘Report of the Director of Public Works for the Year 1926’, Hong Kong Administrative Reports, Hong
Kong, Noronha & Co., 1927, Appendix Q, Q 105.
89
‘Report of the Director of Public Works for the Year 1922’, Hong Kong Administrative Reports, Hong
Kong, Noronha & Co., 1923, Appendix Q, Q 200.
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Expansion of the territory (1898–1941) · 99
Table 2.7 Total investment of the Kowloon Tong Garden City Plan (1922–1930)
HK$
Excavation and fill 372,552
Sewers 120,149
Stormwater drains 158,764
Surfacing roads, etc. 102,271
Extension of roads at Kowloon Tsai 39,870
Connection of streams east side of estate to main nullah 16,000 (estimated)
Connection of stream north of hill area to main nullah 67,668
Sidewall and invert of nullah, east side 191,907
Total 1,069,181
Source: ‘Report of Director of Public Works’, Hong Kong Administrative Reports, Hong Kong, Noronha & Co., 1927–1930,
Appendix Q.
Tong had to be connected with the nullahs. Plans for the project also had to be
approved.
In 1921, the Public Works Department invited tenders for land formation
works,90 and the works were undertaken by Li Hing & Bros. Unfortunately, the
seamen’s strike in 1922 and the Canton–Hong Kong strike in 1925 resulted in
an economic downturn that adversely affected property prices. Although the
developer had actively marketed the project and asked for the government’s
approval to accept deposits in advance, land formation works were affected by
the strikes and could not be finished on time, thus delaying the project.91 On 4
November 1929, the government signed contract No. 62 of 1929 with Keng Tak
Cheong to enable the works to continue.92
It is evident from the detailed expenditure records of the Kowloon Tong
Garden City Project (see Table 2.7) that land formation and drainage facilities
accounted for a major portion of the costs.
The British garden city project hoped to maintain a country lifestyle in which
every household had an independent house and private garden. While other
cities were keen to develop the apartment model, the planning of garden cities
placed much emphasis on the quality of living. The geographical location and
environment of Kowloon Tong Garden City in Hong Kong seemingly met the
conditions set by Howard, so both the general public and the developer were
confident in the success of the project during its early stage of development,
believing that purchasing the properties at cost and reselling them later would
generate substantial profits.93 Unfortunately, the seamen’s strike of 1922 and
the 1925 Canton–Hong Kong strike led to an economic downturn in Hong
Kong, resulting in falling property prices and defaults by individual property
90
Hongkong Telegraph, 5 August 1921.
91
CO129/520/12, ‘Development Kowloon Tong Estate’, 11 December 1929 – 1 August 1930.
92
‘Report of the Director of Public Works for the Year 1929’, Hong Kong Administrative Reports, Hong
Kong, Noronha & Co., 1930, Appendix Q, Q 97.
93
China Mail, 24 May 1924.
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100 · MAKING HONG KONG
owners and hence the bankruptcy of the land developer.94 On 4 November
1926, Director of Public Works H.T. Creasy stated during a Legislative Council
meeting that the government was expected to earn 10,000 Hong Kong dollars
from Crown rents and 20,000 Hong Kong dollars from rates and other taxes
upon the completion of the Kowloon Tong Project. Unfortunately, the govern-
ment was unable to collect Crown rents as anticipated.95
Land prices rose after the strikes. As the completed Kowloon Tong residen-
tial area imitated the British garden city model, houses had gardens and were
larger than those in the urban areas. As a result, they were worth much more
than expected. In 1923, the typical monthly rent for a unit in a Wan Chai tene-
ment building with one bedroom and one living room was around 8 Hong Kong
dollars.96 In 1930, a bungalow in Kowloon Tong was worth over 10,000 Hong
Kong dollars. Using an annual interest rate of 4 per cent, the monthly rent for
a bungalow would be over 200 Hong Kong dollars, which was only affordable
to the upper-middle class. Moreover, the area did not offer suitable jobs for the
grassroots. The building of ancillary facilities in Kowloon Tong only began after
the mid-1920s, and included primary and secondary schools run by religious
bodies such as Diocesan Boys’ School, Maryknoll Convent School and La Salle
College, along with public open space such as Essex Crescent Rest Garden and
religious facilities such as St Teresa’s Church. Construction of facilities in the
area was yet to be finished when the houses were completed. The facilities were
unable to meet the daily needs of the new population. The houses were unsuit-
able for the ordinary middle class; they were even criticised by labour groups
when they were released.
The Kowloon Tong Garden City failed to realise Ebenezer Howard’s concept
of a comprehensive community. Besides being impacted by Hong Kong’s politi-
cal and economic environment at the time, high land prices meant that the
middle class in Hong Kong could only afford a much smaller living space rela-
tive to their counterparts in Britain. Nonetheless, the Garden City’s beautiful
environment attracted a considerable number of upper-middle-class residents
and immediately turned Kowloon Tong into an upmarket residential area,
making people forget Kowloon Tong’s location disadvantage as part of the New
Territories. Even to this day, most of the general public think that Kowloon
Tong is part of Kowloon’s urban areas, and few know that it originally belonged
to the remote New Territories.
Extending the lease of the New Territories
The New Territories, which began to develop in the early twentieth century
(and was then called New Kowloon), greatly boosted the overall development
of Hong Kong. By the 1920s, the area was no longer limited to investments
94
Hongkong Telegraph, 7 November 1930, p.10.
95
CO129/520/12, ‘Development of Kowloon Tong Estate’,16 June 1930, pp.11–12.
96
‘Report of the Housing Commission’, Hong Kong Sessional Papers, Hong Kong, Noronha & Co., 1923,
p.114.
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Expansion of the territory (1898–1941) · 101
by private enterprises. It was also home to important large-scale infrastruc-
ture such as Kai Tak Airport, the Shek Lei Pui Reservoir and the Shing Mun
Reservoir. Vibrant trading activities made Hong Kong an all-round economic
hub in the Asia-Pacific region, playing a vital role as Britain sought to estab-
lish its power in the Pacific.97 On the other hand, the political environment
in China had become increasingly unstable since the mid-1920s. In 1927,
the Kuomintang government carried out a purge; important officials of the
Kuomintang government (such as Hu Hanmin), key figures of the Communist
Party and subordinates of Zhang Xueliang became active in Hong Kong.
Meanwhile, border issues and disputes were frequent with the neighbouring
Xin’an County, which led to a request by the county and five commanders of
the Western region to redefine the borders of Shenzhen.98 In 1928, the British
Foreign Office expressed concerns about the future of Hong Kong follow-
ing the expiry of the lease of the New Territories in 1997, but it did not dare
to ask China for an extension of the lease in light of the then circumstances.
According to a confidential document of the British Colonial Office which
was declassified in 2006, the Foreign Office attempted to offer Weihaiwei in
exchange for the New Territories on 8 July 1929. However, Britain did not
dare to propose it, as China was firm in upholding territorial integrity, while
Britain feared that the request might bring up again the long-shelved issue of
sovereignty over Hong Kong.99
In the 1920s and 1930s, a number of Hong Kong governors had secretly
discussed the future of Hong Kong with the British Colonial Office. All of
them suggested that the British government should negotiate with China
for an extension of the lease of the New Territories, or even purchase it
with a large sum of money. Such views would still be considered avant-garde
nowadays. On 8 November 1928, Governor C. Clementi wrote to the British
Colonial Office to discuss the issues concerning the lease. He was the first
Hong Kong Governor to propose an extension of the lease, on the ground
that the private sector’s desire to invest in Hong Kong had been significantly
undermined by the lease period, which hindered the development pros-
pects of Hong Kong. He took the initiative to bring up the matter with the
Colonial Office and stated the pros and cons. Unfortunately, the Colonial
Office delayed meeting with him, claiming that the Colonial Secretary was
overseas. After repeated applications, Governor Clementi was finally able
to meet Colonial Secretary Victor Wellesley on 28 November 1928. The
closed-door meeting was held in Wellesley’s office to discuss extending the
lease of the New Territories. It was also attended by Gilbert Grindle, Walter
D. Ellis, Sydney Caine, John Pratt and Frank Ashton-Gwatkin. Clementi told
the attendees that the colony generally consisted of three parts: Hong Kong
Island, Old Kowloon and New Kowloon. New Kowloon was leased, while
Hong Kong Island in the south was almost fully developed. Although New
97
CO129/526/15, ‘Memorandum of Kowloon and the New Territories’, 12 November 1930, p.4.
98
Kung Ping Po (Fair Daily), 13 August 1928.
99
CO129/571/16, ‘New Territories’, 1938.
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102 · MAKING HONG KONG
Kowloon in the north had space for development, the expiry of the lease in
1997 had deterred private investors. The Governor hoped that Britain would
negotiate with China and propose an extension of the lease period. At the
meeting, Victor Wellesley and other British officials unanimously felt that it
was beyond Britain’s power to extend the lease of the New Territories, and
such a move might stir up China’s suspicion that Britain wanted to perma-
nently annex Hong Kong, which would lead to intervention by the League of
Nations. The people of China would then accuse Britain of invading Chinese
territory. All the attendees of the meeting suggested that the Governor lease
out land in New Kowloon on a short-term basis and state that the leases could
be renewed at the end of the lease period.100 Clementi’s suggestion was not
accepted, and his efforts were futile.
In 1930, Clementi’s successor, W. Peel, did not give up on solving the lease
issue of the New Territories. Peel was also aware that an extension of the lease
would involve China’s territorial sovereignty, and the matter was thus very
sensitive. To avoid erroneous speculations, Peel decided not to disclose the
matter to the League of Nations for the time being and only discussed it pri-
vately with Grindle of the Colonial Office. On 10 November 1930, Peel wrote
a private letter to Wellesley explaining the importance of the New Territories
to the overall development of Hong Kong. The Kowloon Peninsula was only
1,616 yards from Hong Kong Island and could be reached by a boat ride
of just a few minutes from Central. Visitors travelling between Hong Kong
Island and the Kowloon Peninsula reached 100,000 in the first half of 1930.
Kowloon developed rapidly following the Hong Kong government’s recent
investments.101
The functions of Kowloon and the New Territories could be divided into
four different aspects: civilian, military, maritime and air transport. The civil-
ian aspect covered housing, public services and commerce. Although most
Europeans lived on Victoria Peak, the area was saturated and had little suitable
land left for residential development. Outbreaks of tuberculosis in the core dis-
trict in recent times raised concerns about how easily bacteria could spread in
the overcrowded City of Victoria. Kowloon was not far away from Hong Kong
Island. As a suburb of the core district, it possessed the qualities to be devel-
oped into a residential area. There were a number of public services and facili-
ties in Kowloon, such as hotels, youth hostels, the Salvation Army, the Royal
Observatory and a prison. Moreover, the New Territories was an important
source of fresh water for Hong Kong Island and the Kowloon Peninsula, as
there were large reservoirs in the New Territories. As for commerce, Kowloon
was home to important foreign firms such as Hong Kong and Kowloon Wharf
and Godown Co. Ltd, the Standard Oil Co., Peninsular and Oriental Steam
Navigation Co. and C.P.R. Holt’s Co.
Militarywise, the Convention signed on 9 June 1898 stated that, as Kowloon
100
CO129/507/6, ‘China – Position of New Territories’, 8 November 1928.
101
CO129/580/6, ‘New Territories’, 26 January 1939, p.2.
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Expansion of the territory (1898–1941) · 103
had defence and military purposes, the New Territories, which bordered
China, served as an important buffer zone between Hong Kong’s urban areas
and China. The New Territories was therefore strategically important in the
protection and defence of the colony.102 For the maritime aspect, 23 acres
(9.3 hectares) of land was used by the navy for facilities such as warehouses,
barracks, shipyards, oil depots, coal depots and typhoon shelters. Hong Kong
Island alone was no longer able to provide sufficient land for the military.
As for air transport, Kai Tak Airport was developed in the 1920s and served
as an important window for transport with the outside world. Kowloon City
was chosen as the site for Kai Tak Airport, an area north of Boundary Street
that was also part of the New Territories. Available for both military and civil-
ian use,103 the airport was vital for enhancing the economic development and
international status of Hong Kong. The New Territories was the hinterland of
the core district, providing land and food resources. Peel felt that, if Kowloon
and the New Territories were to be returned to China, Britain might as well
completely give up on Hong Kong. It would disappoint many people who
trusted Britain after the government had invested so much in the early twen-
tieth century. Peel thus strongly advocated extending the lease of the New
Territories.104
Clementi’s and Peel’s proposals showed that since the 1920s the Hong Kong
government had been highly concerned with the future of Hong Kong after
1997. Both believed that Britain would not be able to control the future of Hong
Kong if the New Territories were to be returned to China in 1997, seriously
affecting its status in the Asia-Pacific region. As the Sino-Japanese War broke
out in 1937, Britain felt it needed to wait and see how the war between the
Kuomintang government and Japan turned out before making a decision.
On 26 January 1939, Governor G. Northcote wrote another confiden-
tial letter to the British Colonial Office and brought up again what Governor
Clementi discussed in 1928: the extension of the lease of the New Territories.
On 13 April 1938, Governor Northcote suggested that money be used to solve
the concerns about the need to return the New Territories to China in 1997, as
the New Territories was critical to the economic development and defence of
Hong Kong. Northcote suggested purchasing the New Territories from China,
which desperately needed foreign financial aid in the midst of the war, so as
not to miss the opportunity of negotiation in the future.105 As the end of the
lease period, 1997, drew closer, China would take an increasingly tough atti-
tude towards lease extension, and Britain would have to pay China a higher
price for the purchase of the New Territories.106 After discussing an appropriate
price with experts, the Hong Kong government suggested spending 20 million
pounds sterling to acquire the New Territories from China. If China was unwill-
102
CO129/526/15, ‘Memorandum of Kowloon and the New Territories’, 12 November 1930, p.3.
103
CO129/571/16, ‘New Territories’, 26 April 1938, pp.3–4.
104
CO129/580/6, ‘New Territories’, 26 January 1939, p.2.
105
CO129/571/16, ‘New Territories’, 26 April 1938, p.4.
106
CO129/580/6, ‘New Territories’, 6 January 1939, pp.2–3.
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104 · MAKING HONG KONG
ing to sell it, then the Hong Kong government could ask China to consider
extending the lease by 100 years.107
In 1939, the British government decided against purchasing the New
Territories from China. It felt that it was not yet an appropriate time to negoti-
ate extending the lease of the New Territories unless the situation in the Far
East changed.108 There were three main reasons why Britain gave up its inten-
tion to acquire the New Territories from China. First, the purchase price of
20 million pounds sterling was too expensive. As the political situation was
still uncertain, no one knew if China would lose the war and whether the new
regime in China would recognise the treaties that the Kuomintang govern-
ment signed with other countries. Second, the purchase of the New Territories
resulted in the provision of financial aid to China, which might antagonise
Japan and cause a political crisis. Should Japan succeed in establishing a puppet
regime in southern China, Britain, which held the sovereignty over the New
Territories, would have to declare war on Japan, and victory could not be
assured. In the midst of the war, Britain might not be able to keep Hong Kong
even though it had sovereignty over it. Third, China’s slogan during the Sino-
Japanese War was to safeguard its territorial integrity and stand against inva-
sion by foreign countries. If Britain proposed negotiating the purchase of the
New Territories, it might be accused of taking advantage of Japan’s invasion of
China and attract adverse public opinion, especially from the United States.109
Britain’s 20 million pounds sterling investment might ultimately fail to achieve
its purpose. In the end, Britain decided to give up on negotiating for the pur-
chase of the New Territories.
The importance of the New Territories to the overall development of Hong
Kong was evident from the attempts by several governors to extend its lease.
The development in Hong Kong, which was then only made up of the Kowloon
Peninsula and Hong Kong Island, had reached its limit. What the British people
needed was no longer just a small trading place for a temporary stay but an infor-
mation and commercial centre in the Asia-Pacific region.
Infrastructure
In the first half of the twentieth century, important infrastructure such as large
piers, the railway terminus and the airport districts was located in districts on the
Kowloon Peninsula such as Tsim Sha Tsui and Kowloon City, while Chinese
traders were active in the area around Yau Ma Tei.
Kowloon–Canton Railway terminus
The idea of constructing the Kowloon–Canton Railway first came about in
1864 as British engineer Rowland MacDonald Stephenson and M.A. MacLeod,
107
CO129/571/16, ‘New Territories’, 4 August 1938, p.2.
108
CO129/580/6, ‘New Territories’, 26 January 1939, p.2.
109
CO129/571/16, ‘New Territories’, 4 August 1938, pp.1–2.
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Expansion of the territory (1898–1941) · 105
a partner of Jardine, Matheson & Co., attempted to construct a railway network
in China, with part of it running from Guangzhou to Kowloon. The proposal
was openly discussed in the Hong Kong General Chamber of Commerce on
7 March 1864. Companies in Hong Kong hesitated over the immense scale
of the project, and the proposal was shelved as a result. In the 1890s, Western
powers were vying for interests in China, and the proposal of building the
Kowloon–Canton Railway was put on the agenda again. On 28 March 1899,
China and Britain signed an agreement on the construction of the railway. In
1899, P.T. Somerville Large drafted the first survey report for the railway and
proposed that the terminus be located at Blackhead’s Point in Tsim Sha Tsui,
Kowloon. In the summer of 1904, a consensus was reached between China
and Britain, with the Hong Kong government responsible for the building,
funding and operation of the Shenzhen–Kowloon section of the Kowloon–
Canton Railway.
In 1905, the Viceroy of Hubei and Hunan signed a loan agreement of
1.1 million pounds sterling with Britain in Wuchang to redeem the rights to
operate the Canton–Hankow Railway. The Wuchang government agreed to
repay the loan over ten years at an interest rate of 4.5 per cent per annum.
Britain signed the loan agreement with the Wuchang government in the name
of the Hong Kong government, which in turn received over 110,000 pounds
sterling from the Wuchang government’s repayment each year. The British
government allowed the Hong Kong government to defer handing over the
sums. Loan repayments by the Chinese side for the Canton–Hankow Railway
were thus used by the Hong Kong government to build the Hong Kong section
of the Kowloon–Canton railway.110 In 1905, the Hong Kong government
assigned J.C. Bruce of the Public Works Department to lead the survey team
and complete the preliminary survey. Designed to cross five tunnels and 48
bridges, the 22.25-mile-long railway had a construction cost of 5 million Hong
Kong dollars.111 The sum included the construction of a railway terminus on
reclaimed land in Kowloon’s Tsim Sha Tsui, as proposed by William Chatham,
Director of Public Works. The Kowloon–Canton Railway was completed in
1910 and formally opened in October. The total costs for the construction of
the railway were around 12.3 million Hong Kong dollars (equivalent to 75,000
pounds sterling per mile), representing an overrun of 146 per cent over the
original estimates.112
Even though the railway had opened, the government’s plan to build the
Kowloon terminus in Tsim Sha Tsui was still only in an early stage. Several
issues were involved in the construction of the Kowloon–Canton terminus in
Tsim Sha Tsui:
110
Robert J. Philips, Kowloon–Canton Railway (British Section), Hong Kong, Urban Council, 1990,
pp.15–23.
111
Robert J. Philips, Kowloon–Canton Railway (British Section), Hong Kong, Urban Council, 1990,
pp.27–28.
112
Robert J. Philips, Kowloon–Canton Railway (British Section), Hong Kong, Urban Council, 1990, p.31.
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106 · MAKING HONG KONG
1. Taking into account cargo and passenger flows, it would be better for the
railway terminus to be located at the waterfront. Most of the marine lots
around Tsim Sha Tsui, on the southern tip of the Kowloon Peninsula,
were already privately owned. The government had to reach agreement
with the owners of the original marine lots and offer appropriate com-
pensation to those affected by construction works, such as through land
exchange or monetary compensation.
2. The government had to carry out reclamation to increase the area of land
on the waterfront.
3. The risks associated with the construction were quite high, as the concept
of the terminus was based on the situation after reclamation, which was
pure speculation.113
It was determined at the end of 1909 that reclamation works in Hung Hom
would require 5 million cubic feet of fill. The government planned to construct
the Tsim Sha Tsui terminus on Marine Lot Nos 618 and 1140. It proposed a
land swap with what was then known as ‘match factory lots’, part of the newly
reclaimed land located next to lots owned by the China Light & Power Co., so
that the compensation would be limited to buildings only.114 Reclamation works
were undertaken by contractors in September 1910, but the motion to construct
the railway terminus in Tsim Sha Tsui was not formally passed until 1912. A
warehouse near the Tsim Sha Tsui Marine Police Headquarters that used to
belong to Hong Kong and Kowloon Wharf and Godown Co. Ltd was leased
and converted into a temporary station.115 Located at Hung Hom Bay, Tsim Sha
Tsui, the completed railway terminus had an area of around 41 acres (16.6 hec-
tares), with Holt’s Wharf and Blackhead’s Point to the east, the harbour to the
south, Star Ferry Pier and Hong Kong and Kowloon Wharf and Godown Co.
Ltd to the west, and Salisbury Road to the north. Apart from railway transport,
the land obtained from reclamation could be used for other purposes, detailed
planning of which was undertaken by the Public Works Department.116 The
Tsim Sha Tsui railway station (i.e. Kowloon Station) was demolished in 1975
and only its clock tower remains today.
Kai Tak Airport
Built in 1930, Kai Tak Airport was located in Kowloon City and named after two
Chinese nationals, Ho Kai and Au Tak, which led many to mistakenly believe
that the airport was founded by these two persons.117 In fact, both of them had
113
CO129/339, ‘Reclamation for Railway Terminus, Kowloon’, 21 March 1907.
114
‘Kowloon–Canton Railway Annual Report for 1909’, Hong Kong Administrative Reports, Hong Kong,
Noronha & Co., 1910, Appendix Q, Q 1.
115
Robert J. Philips, Kowloon–Canton Railway (British Section), Hong Kong, Urban Council, 1990, p.51.
116
‘Kowloon–Canton Railway Annual Report for 1910’, Hong Kong Administrative Reports, Hong Kong,
Noronha & Co., 1911, Appendix R, R1–3.
117
Liu Shuyong and Xiao Guojian, Xianggang lishi tushuo (Illustrated History of Hong Kong), Hong Kong,
Qilin shuye youxian gongsi, 1998; Chen Xin and Guo Zhikun, eds, Xianggang quan jilu (Illustrated Chronicle
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Expansion of the territory (1898–1941) · 107
passed away more than ten years before the concept of the airport emerged; Ho
died in 1914 and Au in 1920. The airport was given this name because the area
had been called Kai Tak since the 1920s. Two years before Ho passed away, i.e.
1912, he co-founded Kai Tak Land Investment Co. with Au, who was the father-
in-law of Ho’s eldest son, Ho Wing Ching. They intended to reclaim land along
the coast of Kowloon Bay to construct housing for the relatively well-off migrants
who moved from Guangdong to Hong Kong after the Xinhai Revolution. As the
government was planning to build a radio transmitting station in Kowloon Bay,
it rejected their proposal. Unfortunately for Ho, the project had yet to come to
fruition at the time of his death in 1914. On 20 November 1914, the proposal for
the Kowloon Bay reclamation was resubmitted to the government by Au Tak,
along with other partners such as Ts’o Seen Wan and Cheung Sum Woo. The
proposal was officially approved after receiving consent from the British govern-
ment on 30 December 1915.
Kai Tak Land Investment Co. reclaimed land along the coast of Kowloon Bay
from Kowloon City Ferry Pier to Tai Wan Glass Works, which was estimated
to provide 210 acres (85.1 hectares) of land. After deducting 4 acres (1.6 hec-
tares) of land reserved for public use and land required for nullahs, roads and
seawalls, 4.95 million square feet (113.6 acres or 46 hectares) of land could be
used for development. The developer was responsible for the cost of reclamation
and the construction of ancillary facilities in the area such as roads and nullahs.
Furthermore, it was required to pay a land premium of 75,000 Hong Kong
dollars to the government upon completion of the project, as well as an annual
Crown rent of 200 Hong Kong dollars per acre for the privately developed land.
The developer was also required to spend 500,000 Hong Kong dollars on devel-
oping that area within nine years upon completion of the project. The new land
had a lease period of 75 years starting from 1 July 1898. Upon its expiration, the
lease could be renewed for 23 years and 362 days, which meant that the renewed
lease would expire on 27 June 1997. The Public Works Department was respon-
sible for laying fresh water pipes and sewerage systems in the new area as well as
monitoring the design of the project and the quality of construction materials.
The Kowloon Bay reclamation works were completed in 1920, and the
reclaimed area was named Kai Tak – after the name of the developer. Owing
to poor sanitary conditions and an economic downturn, the idea of develop-
ing Kai Tak as a residential area could not be fully realised. In 1924, a piece of
vacant land in the east of the newly reclaimed area was used by the Hong Kong
Aero Club for aircraft take-offs and landings. In the same year, American Harry
Abbott leased 60 acres (24.3 hectares) of land from Kai Tak Land Investment
Co. to establish an aviation school and provide air cargo and passenger services
between China and Hong Kong. The Royal Air Force units on board the British
aircraft carrier HMS Hermes also used the vacant land in Kai Tak as a temporary
base for parking aircraft.
of Hong Kong), Hong Kong, Chunghwa Books (HK), 1997; Liang Tao, Jiulong jiedao mingming kaoyuan
(Origins of Kowloon Street Names), Hong Kong, Shizheng ju, 1993, p.734; Lu Yan, Xianggang zhanggu
(Hong Kong Anecdotes), Volume 2, Hong Kong, Guangjiao jing chubanshe, 1984.
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108 · MAKING HONG KONG
Table 2.8 Kai Tak Airport construction budget (1929)
HK$’000
Resumption 1,186
Forming of reclamation including completion of seawalls, nullahs, 738
surfacing and drainage
Covering of nullahs 275
Slipways, filling in camber area, extension of nullah in camber 275
area and contingent works
Road 55
Total 2,529
Less: Subsidy of £100,000 from the British government −990
(equivalent to HK$990,000)
Net expenditure 1,539
Source: CO129/508/8, ‘Kai Tak Aerodrome’, Appendix VI (A), 1929 Draft Estimates Aerodrome Site, 5 October 1928.
In 1927, the Royal Air Force suggested building an airport in the Kai Tak area in
view of the problems faced by domestic flight aircraft and amphibious military air-
craft during landings and take-offs. Apart from spending money to purchase the
land, the government also had to reclaim land to balance military and commer-
cial interests, catering for the needs of different stakeholders. On 29 September
1928, British expert J.A. Dawson visited Hong Kong to advise on the location
and scale of the airport. He proposed an area of 40 acres (16.2 hectares), 28 acres
(11.3 hectares) of which was to be allocated to the Royal Air Force and 12 acres
(4.9 hectares) for commercial use. The airport was to have two runways. The cost
of construction rose to 2.53 million Hong Kong dollars by 1928. With compensa-
tion of 626,000 Hong Kong dollars that Dawson recommended be paid to Kai
Tak Land Investment Co. for the purchase of its land, total costs would amount
to 3.156 million Hong Kong dollars. The British government would provide
a subsidy of 100,000 pounds sterling towards the construction (equivalent to
990,000 Hong Kong dollars at the then exchange rate).118 (See Table 2.8.)
Reclamation works for the airport laid the foundation for Hong Kong’s future
development of air transport, enabling the city to become an important player in
air transport services in the Asia-Pacific region from 1930.
Institutionalisation
Establishment of the Town Planning Committee
Prior to the 1920s, Hong Kong urban planning was often conducted by the
Governor in conjunction with the Executive Council, and there was no
118
CO129/508/8, ‘Kai Tak Aerodrome’, 2 November 1928.
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Expansion of the territory (1898–1941) · 109
designated department responsible for urban planning. The scale and approach
of urban development were thus determined by the thinking and preferences
of the management. Of the departments which had urban planning-related
responsibilities, the Land Survey Office had a relatively longer history. In 1909,
the Land Survey Office was established under the Public Works Department,
responsible for managing land development and land resumption among other
duties. The government also appointed experts to regulate various matters
related to land. The Principal Land Surveyor was responsible for supervising
land sales and applications for land leases, preparing permits for temporary
occupation of land and licences for temporary piers, and planning of quarries
and piers. Furthermore, eight land surveyors were hired to prevent illegal squat-
ting and encroachments upon Crown land.119 The Land Survey Branch was not
involved in the overall planning of the city.
In the 1920s, the government used public opinion to emphasise that Hong
Kong would play a key role in the Pacific region and was increasingly important
to Britain politically. The Hong Kong government then hired urban planning
experts to review the overall development of the city and allowed the Public
Works Department to allocate sufficient resources towards formulating long-
term plans for Hong Kong’s future development.120 In 1921, one year before
the establishment of the Town Planning Committee that was responsible for
urban planning matters, A.G. Stephen, the government’s non-official senior
consultant, thought that Hong Kong could be Britain’s most important port in
the world both politically and commercially, as well as an important base from
which Britain could monitor development in the Northern Pacific region. He
also noted that, as urban planning required specialised expertise, funds should
be allocated for the setting up of a department to plan for Hong Kong’s devel-
opment direction in the next 50 years. Such a responsibility should not fall on
works departments, which already had much work to do.121
In 1922, Governor Sir R.E. Stubbs established the Town Planning Committee,
responsible for matters pertaining to urban planning. It was tasked with formu-
lating a town planning scheme for the city’s development in the next 50 years.122
Members of the Committee included:123
1. T.L. Perkins (Chairman), Director of Public Works;
2. A.G.M. Fletcher, Colonial Secretary;
3. C.M. Messer, Colonial Treasurer;
119
Ho Pui-yin, The Administrative History of the Hong Kong Government Agencies 1841–2002, Hong Kong,
Hong Kong University Press, 2004, p.131.
120
Hong Kong Legislative Council, ‘Report on Meeting on 14th November 1921’, Hong Kong Hansard,
Hong Kong Government, 14 November 1921, p.167.
121
Hong Kong Hansard, Hong Kong Government, 14 November 1921, p.167.
122
Hong Kong Legislative Council, ‘Report on Meeting on 12th October 1922’, Hong Kong Hansard,
Hong Kong Government, 12 October 1922, p.110.
123
‘Report of Director of Public Works’, Hong Kong Administrative Reports, Hong Kong, Noronha & Co.,
1922, Appendix Q, p.108.
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110 · MAKING HONG KONG
4. E.D.C. Wolfe, Captain Superintendent of Police (with P.P.J. Wodehouse,
Acting Superintendent of Police, acting);
5. C.W. Davy, Chief Engineer, China Command;
6. Chou Shou-son, Unofficial Member of the Legislative Council and Member
of the Sanitary Board;
7. A.F.B. Silva-Netto (of Portuguese nationality), Unofficial Member of the
Legislative Council;
8. W.L. Leask, Authorised Architect and Member of the Licensing Committee;
9. A.G.W. Tickle (Secretary), Engineer.
The work of the Town Planning Committee included revising, integrating
and coordinating various development schemes planned in the past124 and
discussing the future development direction for Hong Kong Island and the
Kowloon Peninsula.125 It was also responsible for coming up with solutions to
the difficulties encountered in the development of Hong Kong Island,126 includ-
ing the planning of roads, railways, piers, warehouses, sewerage systems, public
slaughterhouses, markets and governmental buildings, along with the distribu-
tion of offensive trades in various districts, residential areas, forest development
areas, coal development areas and recreation areas.127 There was a particular
focus on the future development of railways, such as reserving land for railway
extensions.128
In 1922, when the Town Planning Committee had just been established,
it convened several meetings to discuss the planning of Kowloon.129 The
Committee drew up a large number of town planning schemes for Kowloon’s
development,130 built models and even conducted site visits. In 1923, the gov-
ernment formulated a long-term development blueprint for New Kowloon,
with Cheung Sha Wan, Kowloon Bay and Kowloon City included in the areas
to be developed. Each area had its own chosen centre of development and
road planning. In 1926, the results of the discussions were turned into town
planning schemes (see Figure 2.4), where a detailed description was given on
the planning for Kowloon City, Cheung Sha Wan, Lai Chi Kok, Kowloon Tsai
and Kowloon Bay and other areas. The production of the schemes was based
on consolidating the data collected from photos taken at five sites, all of which
were located along Boundary Street (the boundary of Kowloon’s urban area).
124
‘Report of Director of Public Works’, Hong Kong Administrative Reports, Hong Kong, Noronha & Co.,
1922, p.28.
125
‘Report of Public Works’, Hong Kong Administrative Reports, Hong Kong, Noronha & Co., 1922,
pp.108–109.
126
‘Report of Director of Public Works’, Hong Kong Administrative Reports, Hong Kong, Noronha & Co.,
1922, Appendix Q, p.109.
127
Hong Kong Legislative Council, ‘Report on Meeting on 12th October 1922’, Hong Kong Hansard,
Hong Kong Government, 12 October 1922, p.110.
128
‘Report of Director of Public Works’, Hong Kong Administrative Reports, Hong Kong, Noronha & Co.,
1922, p.30.
129
‘Report of Director of Public Works’, Hong Kong Administrative Reports, Hong Kong, Noronha & Co.,
1922, Appendix Q, p.109.
130
CO129/494, ‘Land Resumption in the North New Territories’, 1926.
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M4593-HO_9781788117944_t.indd 111
Source: CO129/494, ‘Land resumption in the New Territories’, 1 September 1926, pp.2–57.
Figure 2.4 Town planning schemes for Kowloon and New Kowloon (1926)
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112 · MAKING HONG KONG
These sites were: 1) the intersection of Ma Tau Chung Road and Prince Edward
Road; 2) the intersection of Fuk Wing Street and Pratas Street in Cheung Sha
Wan; 3) the intersection of Castle Peak Road and Hing Wah Street in Lai Chi
Kok; 4) Chester Road in Kowloon Tong; and 5) the intersection of Nathan
Road and Sai Yeung Choi Street North in Mong Kok. Cheung Sha Wan and
Kowloon Bay were the focus of planning.
The town planning schemes clearly marked the suggested reclamation
areas and important traffic arteries. Large-scale reclamation works were to be
conducted along the coast of Lai Chi Kok, with Sham Shui Po continuing its
seaward expansion. The idea of constructing Tung Chau Street and Tai Kok
Tsui Road to connect Tai Kwok Tsui with Sham Shui Po emerged. Also, plans
were afoot to carry out large-scale reclamation in Kowloon Bay. Apart from des-
ignating areas for reclamation, there was a clear description of how the principal
traffic arteries were distributed, which included Nathan Road, Prince Edward
Road and Waterloo Road. A railway that ran across the Kowloon Peninsula
from the coast of Lai Chi Kok to Kowloon City was proposed. Designated green
belts included King’s Park, Kowloon Tong’s rest gardens and Ma Tau Chung’s
sitting-out areas.131 The locations of various facilities such as post offices, public
hygiene facilities, schools, open spaces, markets and piers were also clearly
stated. It was evident from the formulation of town planning schemes that the
focus of urban planning was to select sites for future development and to plan
for the distribution of ancillary facilities such as roads and community facilities.
This would facilitate the comprehension of overall planning when development
was carried out later on. In 1930, the Crown Lands Office and the Survey Office
merged and became the Crown Lands, Surveys and Valuation, and Resumption
Office. There was now an established mechanism for land development and
management, directly under the control of a dedicated department that catered
for the needs of overall development.
Promulgation of the Town Planning Ordinance
On 23 June 1939, the government promulgated the Town Planning Ordinance
for the purpose of systematically preparing and approving the layout design
of existing and to-be-developed land in urban areas and plans for the types of
buildings suitable for those areas, and devising general welfare programmes for
community health, safety and comfort. The ordinance, for the first time, author-
ised the Town Planning Board to prepare town planning layout plans.132 When