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jeopardy as they presented an easy means of livelihood to unemployed and/or indigent persons. The immediate effect was a large increase in forestry offences. Additional labour was employed for protection purposes and at the same time, recommendations were forwarded to Government advising action along certain lines. By the end of the year the situation showed little improvement and still continued to make large demands upon the protection staff. It should be recorded that many of the officers concerned with this matter have worked day and night to maintain control of the situation.
5. The "forest lot" system of the New Territories received considerable investigation as a potential source of firewood supplies for the local market. These investigations revealed that with the cooperation of the villagers much leeway could be made up in this direction. Progress of this nature is largely dependent upon the institution of a more ambitious scheme, based on proper forestry practices, together with an extension of this department's activities in order to maintain better supervision and control of the areas involved. Recommendations to this effect were forwarded to Government in February of the current year.
6. The question of the creation of more forest reserves did not receive so much attention as it was hoped but some progress was made. It is increasingly evident, particularly on Hong Kong Island and in the areas adjacent to Kowloon that action of this nature must be taken. The forest areas generally are becoming more vulnerable as a result of progress in defence works and land development etc. and the necessity for excising areas as forest reserves is very necessary. Progress in this matter is likely to be slow on account of the surveys, etc. involved but early action is desirable.
7. As a preliminary to the afforestation of the Shing Mun Jubilee Reservoir area an experimental plantation of 18 acres, chiefly of local species, was planted up. The area was surveyed and a tentative planting programme drawn up. Estimates covering planting and upkeep are in course of preparation and when these have been approved the planting programme will be put into action.
8. Agriculture—Considerable investigations were carried out in respect to the possibilities of agricultural development in the New Territories. Development of the rice producing areas for vegetable production during the winter season is considered possible provided sufficient manurial supplies can be made available. In addition, the utilisation of some portion of the 300 square miles of hill slopes which go to make up the Colony's total area of 390 square miles was considered a practical proposition but, with the proviso, that the possibilities of the slopes for agricultural purposes must first be demonstrated to the local inhabitants. Investigation from economic and social view points was made also, an administrative officer being detailed for this purpose.
9. The limitation imposed upon the department in its agricultural activities has been referred to elsewhere (p. 9). Enquiries concerning local agricultural matters are constantly being received and these emphasise very clearly the need for a properly constituted agricultural section, able to proffer aid and advice backed up by practical experience and demonstrations in the field. The results of the general investigations mentioned above together with increased local interest in agricultural matters, nutrition problems, etc., would seem to provide a sufficiently strong case for the establishment of a section of this nature. Economic requirements, interrelation of interests, size of Colony, etc. indicate that any such establishment should be a section of this department. A certain amount of work is being carried on by private organisations e.g. the New Territories Agricultural Association, but it is evident that efforts such as these should be coordinated and be drawn into a general scheme for agriculture if the best value is to be obtained from them and the Colony is to benefit as a whole.
10. Horticulture—Progress in horticultural matters proceeded on general lines and considerable planting was carried out in some of the garden areas. The ban on the use of animal manure (for health reasons) in the urban district resulted in