9

2.

While I agree in principle

with the scheme outlined in your

despatch, which deserves high

commendation, the present situation

is unsettled and, in particular,

the danger of further depreciation

in the value of the Exchange fund's

securities cannot be excluded. In

these circumstances I will not object

to the proposal being ventilated in

the manner suggested in para. 9 of

your despatch, but it must definitely

be regarded as a proposal only which

cannot be initiated until the

..

position is more secure.

I have, etc..

(Sød.) MALCOLM MacDONALD

Pag

1

Pag

Copyto Treas 4.

MX SECRET(2).

Sir,

स्ट

53558/39

10

Y

GOVERNMENT HOUSE,

HỒNG KONG.

2nd February, 1939.

I have the honour to address you with regard to certain associated questions, to which I have from time to time referred individually, concerned with the future planning of the urban areas of the Colony, with reference, inter alia, to the improvement of housing conditions.

One of the basic difficulties of any

2.

improvement of housing conditions for the poorer classes of the Colony is the shortage of suitable building land in the central areas in which, for practical reasons, it is essential that such housing should be found. Considerable assistance, both direct and indirect, could be given to any big housing scheme by a comprehensive programme aimed at making available larger areas of suitable land, both through the removal from the central areas of activities which it is not essential to carry on there, and through the formation of new sites whether by reclamation, drainage or levelling: another means to the same end might be the encouragement of suburban developments for the more comfortably placed classes of people, whose removal from the central areas might

gradually reduce the pressure on space there.

3.

One such scheme, on which I am addressing you separately, aims at the removal of a considerable part of the military establishments now occupying valuable land in

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.,

&C., &C.

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