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

6

offact the cost of reclamation.

|(1)

Survey for Marini

for Marine fishponds

that' fishponds laid out by

Com

I estimate

Dutch expert an

run on the lives of the best Gavanese practice with increase the supply of fist by 25 percent. The fire cactured, especially the Milkfish salmon herring, might be canned,

and comeder

certainly be kippired with great success.

I have ben waiting

M

1/12

Pn. Hickling saw it

file,

! (8) Research in

Juchines.

19888/17/2/47 for

for this despalet

which is not on this file

ystickling

25.11.47

23-12-47

2

3

4. Press Extrack from "Times"

See

the map!

I am sorry that owing to pressure of other work I have held this file up for so long. I have also held it up to get hold of other Hong Kong papers, notably those connected with the proposals for rehabilitation loan since I had heard that a considerable amount of expenditure proposed under that loan was of a developmental character. This proves in fact to be so,as a closer examination of the schedule at the back of the file indicates. If I recognise the manuscript notes on it correctly, the Treasury have picked out items to talling $2,000,000 which they feel should be more properly met from Hong Kong's Colonial Development and Welfare allocation than from the rehabilitation loan. I

do not think it is possible to examine the schedule in detail since it is a bare catalogue of items but the fact that some of the expenditure there proposed may ultimately become a charge against Hon Kong's C. D. & W. allocation should be borne in

nind.

The proposals in the despatch at (3) bear strongly the, mark of Dr.Herklots and reflect his interest co-operation. I understand that Dr. Herklots wishes to leave Hong Kong shortly, and I think it is for consideration whether we should endorse proposals depending so largely upon a practical and successful policy of co-operation, so long as there is doubt about who will be present in the Colony to carry them to their conclusion.

A number of the proposals put forward are of an economic nature and should/properly be financed by loan than by grant. I do not like the suggestion which is made here and there that because a project is to be run by Government it should not make ·A· profit. The profit motive is somewhat under a cloud in these times but the transfer of commercial concerns to Government ownership will mean decreasing revenue from taxation which must be replaced by profits from Government owned enterprises if revenue is to be found for Government social Services.

My comments on the individual items of the programme are as follows:-

(1) Roads. The construction of 24 miles of feeder roads at a cost of £100,000 in not very difficult country appears to me quite uneconomic and if the cost cannot be

reduced