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11. Still more reprehensible is the system by which individuals or organiza- tions levy commission in return for introduction to employment, or exact blackmail in the guise of "fees for protection against competition

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12. Conceivably the various systems by which the proceeds of every piece of work tend to filter through to the largest possible number of individuals might be regarded as an elementary form of practical socialism, without which the even more serious problem of complete unemployment of a large part of the population would have to be faced. We believe that there is no escape from one problem or the other so long as an enormous reservoir of population exists at our door, unless it is a remedy which presents very serious difficulties, namely, restriction of immigration.

13. For these reasons we do not believe that any measures which can reason- ably be taken can, in the immediate future, have any noticeable effect on the problem of overcrowding, the problem which we were primarily appointed to consider. We consider, however, that some action is possible which, even it will not altogether put a stop to overcrowding may eventually reduce its propertions and at least would improve the hygienic conditions of premises, even though they be over- crowded.

14. Our investigations have led us to certain conclusions regarding the causes of overcrowding and the conditions which are essential, if overcrowding is to be alleviated, and improved housing accommodation provided for the mases.

Our con- clusions are:--

(i). Overcrowding arises almost entirely from poverty which in Hong Kong is so dire that many families cannot afford any rent at all, and that, of the remainder, the majority can afford so little rent that a normal interest rate on capital outlay for housing cannot be obtained. Poverty itself is the result of an economic system over which Government has little or no control. Any attempt to alleviate over- crowding and improve housing must abide by the conditions imposed by that system. (Paragraphs 1, 3, 19-23, 28-70).

(ii). For a great number of the population the rents which can be afforded vary from nothing to a maximum of about $7.50 per month per family. (Paragraphis 19-23).

(iii). For those whe can afford between $4.00 and $7.50 per month, it appears feasible under reasonably favourable conditions to provide improved housing without loss. (Paragraphs 64-73).

(iv). The existing standard types of tenement houses, which have been evolved from the use of the China fir pole, are now uneconomical in design and in many details of construction, and the plan is not adapted for family life under existing conditions of poverty. In consequence overcrowding, primarily due to poverty, is accentuated by the system of subletting which arises from accommodation not properly adapted to the needs and circumstances of the population. (Paragraphs 4, 18, 24-29).

(v). Under present circumstances it is not practicable to enforce the law against overcrowding. (Paragraplis 28, 70).

(vi). To reduce overcrowding and perinit the law to be enforced it is essential (a) to provide more and better designed houses until sufficient accommodation is available. (b) to decentralize the population, (c) to reduce building density. (Para- graphs 12, 42-61, 64-73).

(vii). Decentralization cannot be achieved unless means of livelihood are provided. within easy reach of new housing areas. (Paragraphs 79, 80).

(viii). The bulk of Chinese industries are of the "home" variety. Factories however are being established in increasing numbers, but at present the majority of the concerns are small and cannot afford to build their factories in undeveloped areas. They are therefore competing with householders and housebuilders for premises and sites for their factories and tending to increase the prevailing con- gestion. (Paragraphs 13-16).

(ix). Before factories can be established outside the populated districts certain requirements must be fulfilled. They include the provision of public services such as water supply, light and power supply, drainage and sewage disposal, adequate