TNAG-0072-FCO40-108-Annual-report-on-the-colony-s-affairs-for-1967-1968 — Page 33

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any serious restriction on credit. From the end of August deposits began to

return to the banks at a satisfactory rate. There had been no significant

adverse effects on public revenue.

Public transport, which has perhaps been the hardest hit by confrontation,

is now almost back to normal. When on the 7th of June voting took place for

five vacant seats on the Urban Council, the election passed off without

incident and indeed a record percentage (for Hong Kong) of the electorate

cast their votes.

Confrontation did not affect such annual events as the Cross

Harbour Swimming Race, the Dragon Boat races and the Cheung Chau Bun Festival

while in the autumn the racing and football season started on schedule.

determined attempt was made to wreck Hong Kong Week which was held between

29th October and 5th November to publicise Hong Kong products. But in spite

of a marked increase in explosive attacks the colourful festivities took place

as planned and met with an enthusiastic reception from the many visitors that

attended. The Chinese Manufacturers Association's Jubilee Exhibition in

December also attracted a record number of visitors.

For many people the main preoccupation during the summer has been not

so much confrontation as the water supply position. Hong Kong has no sizeable

rivers and it is dependent on rainfall which is collected in reservoirs. By

the current agreement with China, an additional 15,000 million gallons of

water (which is paid for at the rate of $1.06 for a thousand gallons) is

provided from her more ample resources each year, to be drawn during the period

from October to June. By the end of 1966 the storage position was causing

some anxiety and by an ad hoc agreement a further 1,8000 million gallons was

made available from China. In February, as a precaution, the daily supply

period in Hong Kong was reduced from 24 hours to 16 hours.

Rainfall during May and June was below average. The full ration from

China, including the agreed additions, was drawn by 25th June and at the end

of June the supply period had to be reduced to four hours every other day. On

the 11th July the total storage in the reservoirs stood at 4,277 million gallons,

that is about 50 days supply. A request for an additional supply from China

went unanswered and the situation was serious. On the 15th July the supply

period was further reduced to four hours every fourth day. Hospitals and other

essential users continued to be given a full supply while squatter areas and

industrics received a daily four hour supply and the Resettlement Estates a

four hour supply every other day. As in the previous severe drought of 1963,

CONFIDENTIAL

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