only to provide a basis for that coöperation between the few modern farms but to instill into the minds of the village agriculturalists themselves the advantages to be gained from modern methods.
The New Territories Agricultural Association was founded in 1927 and has held an agricultural show each year including the year under review. At these shows such of the village farmers as have cared to avail themselves of the privilege have been able to see a demonstration of the possibilities latent in the soil they till. The Association now has permanent accommodation in the New Territories and has opened an Institute for the training of Chinese youths. Land leased from the Government is being worked on behalf of the Association by the Kernel Seed Co. of America. This company has carried out exhaustive experiments with different kinds of seed in order to find brands most suited to the soil and climate. These experiments have been eminently successful with rice seed, and a demand is growing among the farmers for a new seed, called No. 716, which was evolved by this Company.
The Association, which is supported by voluntary contributions and by an annual grant of $2,000 from the Government, has still a heavy task before it. The few modern farms are mostly connected with its organization and avail themselves of its assistance as and when they require. The peasant agriculturalist is not, however, so easily reached. The influence of the association is strong only around Fan Ling and Ping Shan, and it is probable that the annual show is hardly heard of in many other districts such as Sai Kung and Lan T'au. The general system, too, of individual and village agriculturalists, does not lend itself readily to change of any sort. Families and clans still hold land which they held when the New Territories were under Chinese rule, and their primitive methods and implements are clung to with the traditional conservatism of the farmer and the obstinacy of a simple people.
The association has, however, many practical achievements to its credit. Besides the increasing facilities, instruction and advice placed at the disposal of the farmer, it has done much to stimulate the growth, and improve the quality of vegetables in winter. The improved quality of this form of produce during the last two years has been striking, and there is no sign that the rate of increase is slowing down.
Shipbuilding.
The shipbuilding and ship repairing industry is the largest manufacturing industry in the Colony. The three main yards are, respectively, the property of the Hong Kong & Whampoa Dock Co., Ltd., the Taikoo Dockyard & Engineering Co., Ltd., and W. S. Bailey & Co., Ltd. These three firms together were responsible for a total tonnage of 12,426 completed during 1938 and for 26,013 gross tons under construction at the end of the year, as compared with a tonnage of 14,073 completed during 1937. Ships built included some special type vessels of considerable diversity of design, and the success of these local products shews that the industry is well served technically. Several large salvage and repair enterprises were undertaken during the year, including heavy repairs necessitated by the typhoon of September, 1937, and marine casualties which involved long tows to Hong Kong by local salvage tugs. Considerable progress was made in the building of diesel engines under licence at the Taikoo Dockyard and at the Hong Kong & Whampoa Docks. Further development in this branch of the industry is anticipated. The two largest ships ever to be built in the Colony, M. V. Breconshire and M. V. Glenorchy, each of 10,000 gross tons, are at present under construction at the Taikoo Dockyard.
A number of small craft, including lighters, motor-boats and yachts have been constructed in the native yards, but accurate statistics are not available. There are also many native yards with a considerable output of junks and sampans for the use of the shipping community.
Roughly 20% of the labour employed in the Colony's dockyards is on the monthly wage system and is directly recruited by the dock companies. The remainder is employed under the contract system by which work is hired out at standard rates to contractors who pay and are responsible for their own employees. Workers in