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Confidential.
153
17th August, 1928.
I am of opinion that the most urgent and important
among the problems of domestic economy at present con- fronting the Colony of Hong Kong is how best to increase the water supply (a) in Hong Kong island (b) in Old
Kowloon and (c) in New Kowloon. I am also of opinion that
further considerable increase of the population in all
three of these localities is to be expected in the near future and that developments on a large scale all along the northern side of the harbour, i.e. on the mainland, are certain to come before long. I fully anticipate that eventually the chief centres of population will be in Old Kowloon and in New Kowloon rather than on the island.
The water supply problem cannot, however, be considered only from the point of view of the civil population. Hong Kong is a defended port and the require- ments of the Army and of the Navy must also be taken into account. The problem is further perplexed by the fact that the whole of New Kowloon falls within the area of the New Territories, our lease of which from China would under the existing Convention expire in 1998 - i.e. seventy
years hence.
Moreover, the whole area of the Shing Mun Waterworks Scheme lies outside the line which it is contemplated in the last resort to hold against enemy attack, in order to deny the use of Hong Kong Harbour as long as possible to an enemy fleet. Obviously, there- fore, it is undesirable (if it can be avoided) to make Hong Kong island or Old Kowloon, where on the military and naval defence of the Colony is based, dependent for all a large part of its water supply upon the Shing Mun
Waterworks Scheme.
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