ENG-1954 — Page 173

HONG KONG ANNUAL REPORT, 1954

$1 per month for water. Experience had shown, how- ever, that this was not an adequate return on the capital cost of the permanent buildings. Whilst it was generally accepted that removal of the squatter areas was urgently needed in the interests of the whole com- munity, it was nevertheless considered that there was no case for supplying the squatter with subsidized housing at the expense of the taxpayer. Some squatters were poor but many were quite well off. Some were old established residents of the Colony but many were recent arrivals who had no claim to any special privilege. The only feature common to all squatters was that they were all in illegal occupation of land. Whilst it was recognized that this was usually no fault of the squatter, it was widely felt that he should pay a fair rent for his new accommodation. These arguments were accepted by Government and at the end of the year preparations were being made to adjust the rents to an economic level worked out on a basis applicable to all low-cost housing schemes in Hong Kong. The economic rent is likely to be about $14 per room per month, a very low figure when compared with the rent of similar accommodation available on the open market.

Government's policy at the close of the year under review was to accelerate and expand the multi-storey resettlement programme as far as funds would permit with a view to removing all the worst squatter areas within about two years.

Thus resettlement operations in 1954 assumed a new direction and impetus. Formerly persons cleared from squatter areas had been required to re-establish themselves at their own expense in temporary structures in areas which were mainly far from the centres of

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