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they would have to be let at an uneconomic rent. The present proposal therefore is for a grant of £13,500 to cover the cost of site formation for a pilot scheme consisting of the erection of 370 flats; the contribution of the Hong Kong Government to this pilot scheme will be a loan of about £125,000 to the Hong Kong Housing Society to cover the cost of erection of the flats.
8. It has been mentioned above that the present scheme is only a pilot scheme designed to enable experience to be gained before undertaking
It is in the large scale housing development programme which is needed. fact intended to be one section of the first part, consisting of 2500 flats providing housing for 12,500 people, of the full-scale housing programme. In implementing this first part of the programme the Governor estimates that Colonial Development and Welfare assistance amounting to almost £250,000 will be required; the Hong Kong Government's contribution will be loans to the Hong Kong Housing Society and the Improvement Trust, from the recently established Development Fund, totalling almost £1,000,000.
9. All necessary raw materials and labour for the pilot scheme are available locally. The expenditure of Colonial Development and Welfare money would be in the hands of the Public Works Department who would employ skilled local contractors supervised by the Department on the task of site formation. The actual construction of the flats in the pilot scheme would be for the Hong Kong Housing Society to arrange; ample qualified architects and contractors are available locally.
10.
The usual financial summary is attached.
Colonial Office,
5th May, 1951.