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industries, and providing work for large numbers of employees. There still remain a thousand and one things in the way of goods and services which are considered necessary to civilization and these are supplied, largely, by the "home" industries. To meet the demand, the factory system has now made its appearance in Hong Kong, but at present the majority of such concerns are small. The more obvious factory sites have already been taken up by the major industries, and the newer concerns must seek sites in areas already used for housing and the home industries. It is questionable whether the establishment of a new factory in a built-up area will provide work for the unemployed in that area or attract additional population. Where there is no room for the existing population to spread out, the replacement of existing houses by factories is bound to increase overcrowding.

16. Unfortunately these new industrial concerns are too small to build factories away from the populated areas. They cannot afford to lay-out capital to provide housing for their workpeople, and, even if they could, where can they go? Before they can build they require not only good cheap building land, with room for ex- pansion and for housing. but adequate communications and public services such as water, light and power, drainage, and sewage disposal. If these new industries are not to be permitted to add to existing congestion it is essential that they should be encouraged to establish themselves elsewhere, and the necessary provision be made for them. The cost of providing for them may be prohibitive for one small firm but not for a group of firms. The cost, too, must not be weighed against the immediate advantages, which may appear negligible, but against the ultimate objec- tive, which, on achievement, may make the initial outlay itself appear negligible. Once the nucleus of a new community is established it will attract further popula- tion. In such case the home industries character of local industries will be favourable to decentralization. There will be no big works to move and no expensive machinery to be transferred. All they want is a market for their wares. It is certain that, if further congestion is to be avoided, the obvious policy is to facilitate the erection of factories in less densely developed areas and not to wait until they have established themselves in Victoria and Kowloon, whence their removal will be both difficult and expensive.

17. The type of house in Hong Kong occupied by the masses has been briefly mentioned. It is however necessary to consider it in detail, to find out its defects and their bearing on the housing question generally. Does it provide accommoda- tion suited to the needs and circumstances of those for whom it is built? If it does. not, in what way is it defective? Is it too costly or merely badly planned or both? What are the needs and circumstances of the majority of the population? An answer to the last question is a necessary preliminary to the consideration of the

others.

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18. Throughout the world it has always been recognized, and still is, that the. family is the social unit. In some countries, particularly China, family ties are so. strong that the term "family" includes all blood relations. The " family' is: almost synonymous with the clan". For practical purposes however the clan is too loose a term, and too variable a quantity, to be of much use, and the term family is applied only to parents and their direct offspring. As soon as one. of the children marries a new family is created. To provide houses suitable for family life it is necessary to know the normal size of families.

On this point, unfortunately, no figures are available. In England, statistics show that about 75%. of families consist of between two and five people. Families exceeding six are- less than 10% of the total. The general impression amongst Europeans is that Chinese families are large. Although the birth rate is undoubtedly high the infantile death rate is also high and, in consequence, the actual number of living children- is probably very little greater per family than in England. Allowing for the fact that, throughout the world, the poorer classes tend to have larger families than the wealthier classes, it does not seem unreasonable to presume that the average. Chinese family is five or six, (See also Paragraph 42).

19. The next point for consideration is the normal earnings of the Chinese.. family and how much of those earnings can be allocated for rent. In Appendix III are given the normal rates of wages for different classes of workers.

The wages for skilled workers vary between $30 and $70 per month and, for unskilled workers, between $15 and $24 per month. Family factory workers earn from.