Sessional_Paper_1934 — Page 8

unlimited expansion, provided that the laan themselves are given room to expand, particularly on the Kowloon side of the harbour.

17. Mr. Wong Kit-wan confirmed the evidence already before the Committee, showing that New Territory vegetable produce is coming in to Hong Kong and Kow- loon by lorry in steadily increasing quantities, and in his opinion the existing 'laan' facilities in Yaumati are decidedly insufficient. In his case he hires lorries which are sent out with his own fokies to Tsun Wan, Taí Po, Kam Tin and Yuen Long. He hires lorries sufficient to cope with the supplies of the season. He knows what to expect and the producers tell him the quantities they will have available the following day. He has never refused any produce offered him for sale in the above-named New Territory centres. He keeps no written contracts as between the 'laan' and the pro- ducers, nor are there any written regulations. The accounts are kept in an account book by the 'laan' and are accepted by the producer.

18. The District Officer, North supplied several statements taken from veget- able growers in his district. which are attached as Appendix C.* The statements of Lau Pak Ngam and Li Lin-on are particularly instructive, and bear witness to the effectiveness of lorry transport from the new Territory to Hong Kong and Kowloon. We also attach a Table prepared by the Head of the Sanitary Department giving certain relevant details of the existing vegetable "laan' organisation-Appendix D.*

19. At our third meeting, held on December the 12th, Messrs. Fung Kei-cheuk and C. Tetzel attended by invitation. Welearned that the attempt made by the Agricultural Association to lend money to farmers at a comparatively low rate of interest had met with no success. From the beginning until now only $60 has been lent, and this has been paid back. The reason for this disinclination to borrow from the Association seems to be that the Association demands not only a registered mortgage but also an independent guarantor in addition. The result is that the farmer prefers to borrow direct from the potential guarantor who would probably be one of the New Territory elders, in the manner to which he is accustomed, and will not go to the Association at all.

20. With regard to the marketing of vegetables, the Association is considering a scheme to establish a depot at Yuen Long market for collection of produce which their own lorries would bring in to a laan in Hong Kong or Kowloon. Apparently their intention is to become a sort of 'kai-ye' and sell to the laan on the usual 6.4% laan commission, but to abstain from making a 5% 'kai-ye' charge to the producer. They would be prepared to lend to their clients sums not exceeding $50.00 in any one case at 10% per annum interest, but without security. They admit that no difficulty at all is being experienced in bringing New Territory produce in to markets in Kow- loon or Hong Kong but they think that they will be able to secure for the producer a bigger profit than he now obtains, inasmuch as they hope to dispense with the usual charges of a 'kai-ye'. It is not clear how the Association proposes to reimburse itself for the expenses of the depot and conveyance into Kowloon or Hong Kong. Their proposals have not yet reached a final form; but even if they are successful, they do not themselves claim that they will add to the marketing facilities.

21. We took advantage of the presence of Messrs. Fung Kei-cheuk and Tetzel' to ask whether the Agricultural Association had any plans to stimulate production in the New Territory, apart from the question of marketing with which we are directly concerned. They replied that they have engaged a peripatetic lecturer who goes round the villages lecturing and distributing pamphlets on superior methods of grow- ing vegetables and rearing poultry, pigs and cattle.

22. Through Mr. Braga the Committee had secured copies of a pamphlet by Mr. J. A. S. Alves, entitled "Practical Hints on Poultry Keeping in Hong Kong and the New Territories". This pamphlet was brought by the Committee to the attention of the Agricultural Association, and a copy is appended to this Report-Appendix E *

Conclusions.

23. That concluded the Committee's personal examination of witnesses. With the evidence thus obtained and the instructive statements secured for us by the Dis-

*Not printed.