CAB129-35 — Page 97

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In 1921, at the peak of its prosperity, entrances and clear980fe3662 million g.r.t., and by Page of ZOGA recovered to 22 million g.r.t.

In addition there have been important recent developments in light manufacturing industries, the products of which are being exported in considerable quantities to the United Kingdom.

(vii)

Water Supplies

The Colony's water supply is derived 60% from reservoirs on the island and 40% from the New Territories by pipeline under the harbour. Kowloon is wholly supplied from the New Territories.

The present supply is insufficient for the increased population, and hours of supply have to be limited during the dry months. The possibility of increasing reservoir capacity on the island has been examined, but any soheme would be expensive and inadequate. A project in the New Territories to provide approximately 30,000,000 gallons per day at a cost of approximately £4,000,000, which is considered the only practicable scheme, is now under consideration. (see also paragraph 3(b) below.)

3.

Development projects

We have on hand certain major development projects, for which the continued retention of the New Territories is of particular importance. These include: -

4.

(a) The projected modern airport near Deep Bay in the

New Territories, for which His Majesty's Government has promised an interest-free loan up to £3,000,000;

(b) The proposed extension of the water supply catchment

areas in the New Territories to supplement existing supplies, already inadequate, for Hong Kong island and Kowloon;

(၁)

Projects for the development of agriculture and fishing at an approximate cost of £500,000 from the Colonial Development and Welfare Vote;

(a) The future replanning of the cities of Victoria on

Hong Kong island and of Kowloon on the basis of a report prepared by Sir Patrick Abercrombie with assistance from the Colonial Development and Welfare Vote;

(e)

The rehabilitation of the Hong Kong University is in progress. The Hong Kong Government are making a grant of £250,000 towards this and His Majesty's Goverment has promised a similar amount, The precise use to which these grants are to be put is still under discussion.

Attitude of Chinese Government towards Hong Kong

The population of China generally knows little of Hong Kong, but there is a strong irredentist sentiment among the educated and semi-educated with a handy rallying cry for rendition which has an obvious mob-appeal. No Chinese Government, therefore, can afford to be other than basically anti- British over Hong Kong, and there is no reason to suppose that a Communist Government of China will be less so than any other, and good reason to think that its particular ideology and inter- national affiliations may make it more so. We must expect sooner Page19&of 306creased rather than decre:Page 98ife366pressure for the rendition of Hong Kong.

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