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Afforestation-(a) Planting of pines was again carried out in co-operation with the inhabitants, on chosen areas near main roads, with only partial success, owing to the extreme drought, in which a great many young trees after taking root were destroyed by insect pests.

(b) Hill-fires. It is impossible to estimate the damage from the unusually large number of hill-fires, which covered many acres of land in every part of the District during the annual grave-sacrifices. No single instance of intentional burning, however, was found.

(c) Village forestry lots.-In August, a departmental review of the areas leased as forestry lots was begun, and 390 of those were examined by the end of the year. Few areas were well covered with trees.

Communications.-The western portion of the frontier patrol-path was completed, and the rest is in hand. The small public works vote (Table E) was devoted almost entirely to improving local communications, and in particular a bridge was completed at Tai T'ong (Ping Shan district) to plans supplied by the P.W.D.-quite the largest undertaking of its kind for some time. This by no means represents all the work done on communications, for which a great deal of credit is due to unassisted local enterprise.

On the railway, Taipo Market station was improved by the addition of a loop-line and siding. The light railway from Fanling to Shataukok, so long a feature of the District, was dismantled early in the year. The area lately covered by the track will be used for widening the new motor road, which it adjoins.

The erection of petrol-filling stations for motors at Shataukok, Taipo, Fanling, Yuen Long and Castle Peak has commenced.

Agriculture. (a) Rice. The rice-crop though retarded by drought was on the whole better than last year's, and prices for unhulled rice were 60 cents to $1.10 per picul lower. The first crop was good throughout, and in most places the second averaged from 50% to 90% of a good year's, but at Ha Tsuen and places to the West of the Castle Peak road, it is reported that less than half the usual yield was obtained. It is noteworthy that in general crops were earliest in the flat open valleys of the West.

(b) Fruit Fruit-crops were not good, laichees being the most plentiful. An increase of about 15 acres under pine-apples is recorded.

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