schemes which might be put forward in this connection; he

emphasised, however, that the available C.D. and W. money should not

be looked upon simply as money available to build so many houses but

rather as money available to set in motion some much larger develop-

ment more consonant with the very great needs of the Colony.

2. The Governor has now replied to the Secretary of State's

despatch No. 352 and in his despatch No. 14 of 10th February, 1951, has

agreed in general terms with the proposals made for tackling Hong Kong's

housing problem. Broadly these proposals look to the eventual establish-

ment of an Improvement Trust having considerable unofficial representa-

tion on it, although financially under Government control, which would

be responsible for housing projects in the Colony; this Trust would aim

at making its projects self-supporting over a period of years and it

would raise money to meet its initial outlay by loan. This follows the

which were

lines/adopted and have developed over a period of years with such success

in Singapore where the Singapore Improvement Trust has been responsible

for a very considerable increase in the standards of accommodation en-

joyed by many of Singapore's citizens.

3. It is, however, clearly not possible for a major step like

the establishment of an Improvement Trust to be undertaken all at once.

For this reason it was suggested to the Governor of Hong Kong that in

order to gain experience a pilot scheme on a comparatively small scale

should be undertaken. In his despatch No. 14 of 10th February the

Governor has given details of a pilot scheme involving the erection of

eight

370 small flats in ▼ blocks on two sites conveniently situated for the

large industrial areas of Shamshuipo and Lai Chi Kok which they are

intended to serve; 180 of the flats will be on one site and 190 on

the other. The intention is to construct two groups of four blocks

of five-storeyed flats containing varying numbers of tenements

according to their size. These flats, which will be built for the lower-

income groups, will not only provide improved living conditions for the

actual tenants, but will indirectly benefit others by relieving con-

gestion elsewhere and may be expected to encourage employers to

embark on similar schemes for their employees.

/4. The

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