CO129-617-6 Development- recommendations of Hong Kong Colonial Development and Welfare Committee 18-7-1947 - 23-12-1947 — Page 15

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of the Colony's financial position. The Colony's revenue is fully committed, there are no reserve funds and even the loan now contemplated will not suffice to complete next year's rehabilitation programme. Furthermore no decision has yet been taken whereby I can be assured that a Treasury rehabilitation grant will not be offset by claims against the Colony in respect of war-time liabilities. Hence the Colony has no forseeable eventon den: 11/12/11/4s means of supplementing Colonial Development Fund grants. [!!) (a) and 2 (a)

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4.

I now proceed to a detailed examination of the proposals contained in the report.

Roads

5.

Recommendation No.1.

I agree with the Chairman's view that the construction of roads is a necessary preliminary to successful development, and I have little to add to his remarks on the subject.

6.

Recommendation No. 2.

Pièrs

Fertilion

Factory

Ivigation

A large part of the New Territories is composed of broken country, lacking in roads and with a deeply indented coast line. In such country water is the natural element of communication, and much can be done to bring farming and other rural communities closer to the markets by the construction of piers at focal points to accommodate junks, motor launches and ferries. I am inclined to the view that the relatively modest sum which it is proposed to spend on the construction of piers will bear a good dividend in the benefit which it will bring to outlying villages. This also appears to be an item the cost of which would appropriately fall upon the Colonial Development and Welfare Fund. The subsequent maintenance of the new piers would be a charge on Government funds, but it is not considered that any very substantial sum would be involved. Furthermore it is proposed that ferry services using the piers should pay pier dues which could be set off to some extent against the costs of maintenance.

7.

Recommendation No. 3•

The projected Fertiliser Factory, which is dealt with in this proposal, is, I think, adequately described in the report and there is no need for me to add further explanation. I had it in mind that this might be the type of project which would commend itself to the Colonial Development Corporation, but I have finally come to the conclusion that it would be more appropriately run on the lines proposed in the report under a Colonial Development and Welfare allocation. The significance to the Colony's economy of an ample and particularly of a cheap supply of fertiliser cannot be over-emphasised, and I am of the opinion that the price to the farmer is likely to be lower if the factory is run on a non-profit making basis as is proposed. I need only add that since the scheme is designed to cover its own costs no increment to the Colony's recurrent annu al expenditure is involved.

8.

Recommendation No. 4.

I entirely approve of the proposal to reconstruct and extend the irrigation system in the hills and upper parts of valleys. The area of flat cultivable land in the Colony is limited and any expedient for the extension of cultivation higher up the valleys and into the hills merits consideration. In the present case, the primary object is to return to cultivation areas

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