ENG-1956 — Page 348

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HONG KONG ANNUAL REPORT

the population had been reduced to about 600,000. Eighteen months later at least 1,000,000 people had returned, and the population was still rising. At the close of 1947, so far as it is possible to estimate, Hong Kong held about 1,800,000 people, with once again an acute housing problem and water shortage.

As, during 1948-9, the forces of the National Government of China began to retreat and disintegrate, a refugee influx surpassing all others took place, the refugees being in many cases well-to-do merchants and their families from Shanghai and other commercial centres. The highest point was reached in April 1950, when it was estimated that the Colony held about 2,360,000.

The Central People's Government was installed on Ist October, 1949, and during the latter part of 1950, with the promise of more settled conditions in China, and with the departure of many of the wealthier refugees to Taiwan, South America and other distant places of refuge, the Colony's population fell for the first time since the war until by the end of 1950 it was thought to be around 2,060,000. Since then, however, due partly to the arrival of more refugees from China, but principally to a high rate of natural increase, there has been another steady rise, bringing the population to the estimated figure of 2,535,000 at the end of 1956.

Intense and unprecedented development has accompanied these increases of population. Throughout the urban area and the New Territories there has been tremendous building activity. In Kowloon, and at Tsuen Wan in the New Terri- tories, industrialists have opened large factories, producing textiles, enamelware, rubber goods, vacuum flasks, torches,

etc.

As a result of the outbreak of war in Korea in June 1950, controls were progressively introduced over the export of strategic materials, beginning with petroleum and its deriva- tives in July of that year. As far as North Korea itself was concerned, a complete embargo on trade of any kind with

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