Sessional_Paper_1907 — Page 251

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The depreciation in the value of land and buildings evidenced by the fall in the shares of the land companies was attributed by some to the manner in which the provisions of the Public Health and Buildings Ordinance of 1903 were being enforced by the officials of the Sanitary and Public Works Departments. Complaints in the local newspapers and at the meetings of the Sanitary Board that the Ordinance was not being properly or reasonably administered were so numerous in the early part of the year that it appeared to the Govern- ment advisable to institute an enquiry into them and also into certain suggestions as to corruption that had made themselves heard. A committee consisting of the unofficial mem- bers of the Sanitary Board were appointed on the 28th April to carry out this enquiry under the Chairmanship of the Honourable Mr. H. E. POLLOCK, K.C. As however it presently seemed necessary that there should be power to enforce the attendance of witnesses, compel the production of documents, etc., the Committee was converted into a Commission on the 10th May. Mr. POLLOCK's resignation of the Chairmanship shortly afterwards required au amended Commission dated the 26th May appointing the Honourable Mr. E. A. HEwETT to the post. The Commission were directed to enquire into and report:-

(1.) Whether the administration of the Sanitary and Building Regulations enacted by the Public Health and Buildings Ordinance, 1903, as now carried out is satisfactory, and, if not, what improvements can be made.

(2.) Whether any irregularity or corruption exists or has existed among the officials

charged with the administration of the aforesaid regulations.

The Commission had not reported by the end of the year but had brought to the notice of the Government several cases of corrupt practices which were dealt with by the Executive Council of the Colony.

In the early part of the year also numerous petitions were presented by elders in the New Territories through the Registrar General on the subject of Crown Rent for agricultural lands and buildings. These resulted in the Government after full consideration declining to reduce but promising not to increase for the 75 years term of lease the rents in question and in their making several minor concessions. This result appears to have given satisfaction and the former difficulties in collecting rent have nearly disappeared.

In other respects the Territories were quiet and apparently prosperous during the year. Crops were good except for the typhoon damage to which reference has already been made.

Mining operations there remained in the prospecting stage, but the discovery of iron ore, which competent engineers report to be present in large quantities, led the promoters to apply for the mining lease of a square mile of territory in the Sha Tin District. This was granted by the Government to Sir PAUL CHATER. Kt., C.M.G., on the 21st January, 1907. Analysis shows that the ore is composed of Magnetite Iron ranging from 33% to 60% metal, entirely free from phosphorus or sulphur, and therefore the very best ore for the manufacture of steel. Japanese buyers are in treaty for the purchase of the ore but the Company recently formed by Sir PAUL CHATER desire if possible to establish smelting works in the Colony, and are now negotiating with English Iron Masters on the subject.

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Railway matters continued to be of special interest and made some progress in 1906.

The attempts of H.B.M. Consul at Canton and Minister at Peking and of the Hong- kong Government to get the Chinese authorities to open negotiations for the conclusion of a Final Loan Agreement for the Chinese section of the Canton-Kowloon Railway and of an agreement for the joint working of that with the British section resulted in four meetings being held at Canton in March and April between representatives of the Viceroy there and of the British and Chinese Corporation, in the Viceroy recognizing the Preliminary Agreement made by the Corporation with the Chinese Government on the 28th March, 1899, and in his proposing arrangements which, though they differed materially from those of the prelimin- ary loan agreement and included none for joint working, were accepted as the basis for the further negotiations. Thess, after many delays, were carried on at Peking between T'ANG SHAO-YI, the Chinese Director General of Railways, two representatives of the Canton Viceroy and Mr. J. O. P. BLAND representing the Corporation. Ten meetings were held between the 23rd August and the 7th November and on the 10th of the latter month a Final Loan Agreement was signed by T'ANG SHAO-YI and Mr. BLAND. It provides for the Corporation issuing a 5 per cent. loan of £1,500,000 for the construction and equipment of the Chinese action of the railway. A first mortgage on the railway is to be the security of the loan