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APPENDIX 8.
REPORT ON SUPPLIES MISSION TO OKINAWA.
1. The Hong Kong Government Mission to Okinawa consisted of Mr. A, H. Hutchison, Mr. A. V. Skvorzov and Lt. Col. J. Forbes. The Mission left Kai Tak Airport at 08.00 hours on Thursday, 7th February, by U.S. Army plane and arrived at Okinawa at 14.30 hours local time. The Mission was accompanied by Cdr. Langevin, U.S.N., and Capt. Nuzum, U.S.A., both of whom are attached to the F.L.C. (Foreign Liquidation Commission), Shanghai.
2. On arrival at Okinawa, the Mission was introduced to Capt. W. E. McCain, U.S.N., Officer in charge of the Naval Supplies Depot, and his Officer, and spent the next two days in inspecting the stores available for disposal, and in studying the lists of Surplus Property Board Forms available. It is understood that all S.P.B. returns for the whole of the Pacific area are to be completed by the end of February.
3. Attached is a list of abstracts made from these Formis. It is to be under- stood that these are abstracts only and are not by any means a complete list of stores available. It should also be noted that the prices on the lists are stated to be new cost prices in the U.S.A. and that to this is to be added 25% for packing and freight to the Pacific, plus a delivery charge, the amount not yet fixed, for freight to Hong Kong from Okinawa.
In the case of used materials a deduction based on an approved formula will be made, but it is the opinion of the Mission that prices generally are high. It is also worthy of note that the trucks available in Okinawa are all army type trucks and are not very suitable for civil purposes.
Parts of Lots can be purchased, but cases cannot be broken.
4. The Mission left Okinawa at 10.00 hours on 10th February, again by U.S. Army plane, and arrived at Kiangwan, Shanghai, at 12.30 hours local time, and proceeded to the residence of Mr. H. Kadoorie. Cdr. Langevin and Capt. Nuzum remained in Okinawa.
5. Ou the 11th of February at 14.45 hours a meeting was held with Brig. General Johnson, U.S.A., who is in charge of the F.L.C., Shanghai, at which Mr. H. Kadoorie was also present.
Brig. General Johnson made it clear that materials required (for example. lutting and craft) but not available in Okinawa are available elsewhere, and that we should prepare our lists of requirements at the earliest possible moment on the assumption that all kinds of materials will be available.
He also indicated that Dodge Commercial Trucks can be made available. He stated further that the question of freight to Hong Kong, which was stated at Okinawa to he U.S.$15 per measurement ton, can be reconsidered. It was suggested that Hong Kong might be able to supply the necessary shipping. He also stated his intention to visit Hong Kong in about five days' time.
6. Difficulty was experienced in fixing transportation back to Hong Kong as the U.S. Army could not supply a plane. Through the efforts of the British Consul and Mr. Kadoorie arrangements were made with the R.A.F. who would take the party back on Friday, the 15th.
7. The thanks of the Mission are due to all Officers of the U.S. Navy and Army contacted during the journey for the courtesy and help, and also to Mr. H. Kadoorie for his untiring efforts to help the Mission and for accommodating the party in his house during the stay in Shanghai. Thanks are also due to Mr. Kadoorie's staff for typing the various lists and memoranda for the Mission, work which involved a considerable amount of over- time.
8. In conclusion, it must be emphasized that it is essential that complete lists of Hong Kong's requirements should be prepared at the earliest possible moment, and that in the event of purchases being made a representative must be sent to Okinawa to supervise selection and shipping of materials.
APPENDIX 9.
HOUSING
FINANCE-"A".
1. It has been made abundantly clear from the detailed reports received from individual members of this Committee and during the course of our deliberations that there is a very serious shortage of dwelling accommodation and that, unless immediate steps are taken, this shortage will become acute on an increasingly rapid scale.
2. It is likewise clear that there are three alternatives if sufficient housing is to be
provided:
3.
(1) Government to go in for new construction.
(2) Government to undertake the repair of private property themselves.
(3) Government to give sufficient encouragement to property owners to provide
the necessary accommodation.
If the first alternative is adopted,
(a) It would appear that Government would have to go in for large housing schemes, development of new areas, and the construction of suitable houses for various sections of the community In England, Government expenditure of over £240,000,000 was envisaged for the construction of 165,000 temporary houses.
(b) As in England, it is probable that houses could only be produced at a substan- tially higher cost than would be justified by the rentals obtainable for the accommodation provided. This would mean a very low return on the capital outlay, or, alternatively, a capital loss by their sale at well below cost.
4. If the second, a partial solution of the problem might be found in the following suggestion which combines private ownership with Government control:—
Government to lease large blocks of damaged property, such as apartment buildings, terraces of houses, and tenements, for a period of say five years. Government would then repair this accommodation and sub-let the same; the repaired property to revert to the owners at the end of the period of the lease.
Que advantage of this scheme is that fiovernment, whilst not entering into competi- tion with property owners, retains control of letting and may give preference to that section of the community employed in the essential work of rehabilitation.
5.
If the third alternative is adopted,
(a) Money for reconstruction should be provided at a low rate of interest, say
2%.
(b) Government should purchase building materials in bulk both by importation and by utilising to the fullest extent local production potentia!. Such materials should be made available to property owners, conditional on their repairing their houses.
(c) Prices of building materials have risen steadily since 1938, thus discouraging construction. If reconstruction is to be encouraged, costs of materials must be subsidised at least to a level not exceeding pre-war prices.
(d) As an additional incentive, landlords who spend a minimum sum (to be fixed in relation to the size of their property) should be allowed to increase their rentals for such property by 50% over and above 1941 rentals.
(e) Crown leases due to expire within a short time should be renewed for a period
of several years at a nominal fee.
6. This memorandum is submitted for consideration with a view to formulating
Shanghai, 14th February, 1946.
NOTE:-Stores List not attached to Interim Report.
36 -
(Signed) J. FORBES,
Lt. Col. A. H. HUTCHISON. A. V. SKVORZOV.
policy.
(Signed) LAWRENCE KADOORIE.
Hong Kong, 11th February, 1946.
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