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Colonial Office Ref. No: ✈ 12318/17/50.
Secretariat Ref. No: 31/736/49.
NO.
14
Sir,
GOVERNMENT HOUSE,
HONG KONG.
10th
38
February, 1951.
L
12818/17/50
54466/1/51
16 FER 1951
I have the honour to refer to my telegram No. 1393 of the 23rd December, 1950, in which I undertook to inform you of my proposals with regard to subsidised housing and the utilisation of part of Hong Kong's Colonial Development & Welfare allocation for this purpose, and to your despatch No. 352 of the 28th December, 1950. The proposals which I now put forward were formulated prior to the receipt of your despatch No. 352, but I do not think that they conflict with your advice. Indeed, we seem to have arrived at broadly similar conclusions. I wish however to make an early start with the Pilot Scheme, which is the subject of an application in the accompanying memorandum for an immediate grant from Colonial Development & Welfare funds. It is important politically and psychologically to produce results as soon as possible, and it will also be advantageous to have the experience gained by a Pilot Scheme before embarking on developments on a larger scale. While this Pilot Scheme, is in progress, urgent consideration will be given to the formation of an Improvement Trust and to your suggestion that this should combine the functions of a town planning and a housing authority.
2.
The influx of refugees from China has resulted in a considerable overcrowding in the urban areas, and although there is reason to hope that, when the situation in China settles down, a large number of these refugees will return to their homes, the need for more and better accommodation than is at present available will remain.
3.
In my despatch No. 8 of 27th January, 1951 I have recommended the setting up of a Development Fund and, subject to your approval, I propose that, say 15 million of this fund should be set aside for financing housing over the next two years. It is anticipated that this sum would be sufficient to rehouse approximately 12,500 persons (or about 2,500 families) as a first stage, exclusive of the cost of site formation, access, etc., to which I refer in paragraphs 6 and 7 below.
4.
My intention is that the position would be reviewed when this first objective had been reached. I propose that a Housing Authority or Improvement Trust should be set up which would have considerable unofficial representation although being subject to strict financial control and supervision by Government. The experience gained by the Singapore Improvement Trust should provide many useful lessons and I propose to consult the authorities there at an early date.
5.
The availability of land for housing of this type has been examined and I am satisfied that, having regard to the class of persons whom it is desired to rehouse, their mode of employment, and the wage levels which they can attain, it is essential that they should live within easy reach of the main industrial and commercial areas. The intense development of Victoria and Kowloon which has already taken place, and the naturally steep and rocky configuration of the greater part of the Colony including the present urban areas and their fringes, make it extremely difficult to provide the necessarily large