7. In September, 1952, another solution was tried when a non-profit making organization was formed to build cottages in resettlement areas. This Hong Kong Settlers Housing Cor- poration the board of which consisted of public-spirited business and professional men, was partly financed by Government and partly from funds subscribed by the public. It eventually built over 1,500 cottages which will become the property of their occupants after monthly hire-purchase payments have been made for seven years.
8. By December, 1953 a total of 45,000 persons had been resettled by these methods when the disastrous Shek Kip Mei squatter fire occurred on Christmas night and over 53,000 persons were made homeless within a few hours. This was a serious crisis and immediate steps were taken by Government to meet it. Not only were the usual emergency relief measures put in hand at once, but it was decided that public funds must be used to build temporary two-storey buildings on the fire site as a matter of urgency. The use of public funds for resettle- ment buildings was a major policy decision of the first importance.
9. Meanwhile the Urban Council had appointed an Emergency Sub-Committee which came to the conclusion not only that the existing measures were not producing quick enough results but that they would never solve the squatter problem because there was not enough land available to house the remaining squatters in one-storey buildings. The solution proposed was the construction of six or seven-storey buildings by Government, a possibility to which consideration was already being given in the Public Works Department. A second important recommendation was that a new department should be created which would be responsible for all matters connected with the clearance of squatters and their resettlement, a respon- sibility which had previously been divided between three separate departments.
10. These recommendations were accepted by Government and Mr. D. R. Holmes, a Cadet Officer, was appointed Commis- sioner for Resettlement in April, 1954. Later that month the Resettlement Division of the Urban Services Department was
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