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166
End
Ser
24.
O
Umar's
In such an event it would be necessary to have recourse to restrictions in the use of water beyond any so far contemplated. There is further the fact that consumption per head of the population continues to increase as conditions of living of the local population improve. Further the growth of industry in Hong Kong is likely to cause a considerable increase in consumption. In short, the available reservoir capacity, already even in normal times inadequate, cannot be expected to cope with future requirements, with resultant inconvenience and a possible danger to the public health of the Colony.
4.
I have had under consideration possible measures to effect further economies in the use of water, but none has appeared which is likely to effect any substantial improvement in the position. Among the measures that I have considered is the use of seawater for fire-hydrants, street cleaning, flushing etc., but quite apart from the fact that only a relatively small percentage of mains water consumed is used for such purposes, the installation of new mains would be necessitated; furthermore, the bad effect of salt water on pipes, fittings, etc. would involve greatly increased maintenance costs. In any case, many streets are already congested with existing services. There is also the possibility that underground supplies of water might be located, but I am advised that the geological structure of the Colony is such as to make it improbable that any substantial resources will be located. The possibility of adding to the reservoir capacity on the Island itself has been examined, but I am advised that only one possible site is to be found and that it would entail a high expenditure in relation to the quantity of water which would be thus conserved. It would further necessitate the inundation of a large area of land already developed or capable of development.
5.
In these circumstances I have therefore come to the conclusion that the only adequate solution to the problem is to press on with the least possible delay the construction of the new reservoir which has been proposed in the Tai Lam Chung Valley. The principal problem here, of course, is a financial one. Implementation of the full scheme will involve expenditure estimated at approximately $96,000,000 while a modified scheme will cost about $64,000,000. I can see no prospect of financing this from revenue, and undoubtedly recourse to borrowing will be required. I do not propose to go into this question in detail in this despatch: Mr. Follows, who is in London at present, will be able to expound the financial issues involved. I would only mention here that any loan which may be raised for the purpose (the Colonial Development and Welfare Fund occurs to me as a possible source of assistance) could be repaid from water revenue well within the outstanding period of the New Territories lease. This may help to allay any fears as to the advisability of lending money to build a reservoir in territory of which our tenure is limited. In passing I would take the opportunity of pointing out that the construction of a further reservoir in leased territory need not be regarded as improvident: for already 40% of the Island's supply of water as well as the entire supply of Kowloon is drawn from leased territory; so that in the event of the return of the New Territories to China, some arrangement about water supply will in any case have to be made if the Colony is to survive.
6.
I should be grateful for an indication of your views, after the matter has been discussed with Mr. Follows.
I have the honour to be,
Sir,
Your most obedient, humble servant,
GOVERNOR.