Hong Kong Yearbook - Annual Report for the Year 1962

Hong Kong

1962

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LEUNG SHUEN WAN CHAU

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HIGH ISLAND_

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BASALT ISLAND

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GOLF CLUB

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SCALE OF MILES

MILES

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Heights in Feet REFERENCE

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Railways

TOI ISLAND

Roads, Footpaths

Villager

Built up Areas

Rivers & Streams, Reservoirs Ferry Services

200-1000

0-200

Crown Copyright Reserved

HONG KONG 1962

City Hall Library Hong Kong

Reference Library

HONG KONG GOVERNMENT PUBLICATIONS

are obtainable from

THE PRINTING DEPARTMENT

81-115, Java Road, North Point, and

THE GOVERNMENT PUBLICATIONS BUREAU

General Post Office, Hong Kong,

and from

THE CROWN AGENTS FOR OVERSEA GOVERNMENTS

AND ADMINISTRATIONS

4, Millbank, London, SW1

A list of current publications will be found at Appendix XIV of this Report

HONG KONG ANNUAL REPORTS

may also be obtained

from

HER MAJESTY'S STATIONERY OFFICE, LONDON

  Like any great port anywhere in the world, Hong Kong is a place of meetings and partings. As the great liner prepares to pull away from the wharf in Kowloon a little Chinese boy grasps the streamers that are his last link with those on board. Soon the streamers will break and is friends

will be gone, but he will long remember.

HONG

KONG

Hong Kong

Report for the Year

1962

HONG KONG

GOVERNMENT PRESS

1963

市政局公共圖書館 UCPL

3 3288 03706580 4

CROWN COPYRIGHT RESERVED

First published: February 1963

URBAN COUNCIL PUʻLIC LIBRARIES

Acc. No. 58282

Class.

HK 951.25

Author HoN

HKCr

Printed and Published by

THE GOVERNMENT PRINTER

at the Government Press, Java Road, North Point, Hong Kong

The Government of Hong Kong wishes to thank all those organizations and private individuals who have contributed textual matter or photographs to this Report. Particular acknowledgement is given to Professor S. G. Davis, PhD, MSc, FGS, of the University of Hong Kong for revising chapter 22, to Mr G. B. Endacott, MA, BLitt, DipE, of the University for revising chapter 24, and to Mr J. M. Braga for compiling the bibliography.

 All illustrations in this Report are the work of official photographers. Requests for permission to reproduce any illustrations should be addressed to the Director of Information Services, Hong Kong.

CONTENTS

Chapter

Page

PART I REVIEW

1

THE PORT OF HONG KONG

3

2

POPULATION

Urban Population

PART II

35

36

37

New Territories.

3

EMPLOYMENT

Occupations

40

Wages and Conditions of Employment

42

Labour Administration

44

Industrial Relations

46

Legislation.

49

Safety, Health and Welfare

New Territories.

49

51

4

PUBLIC FINANCES

54

Import and Excise Duties. Rates.

57

58

Internal Revenue

59

5

CURRENCY AND BANKING

Banking

6 INDUSTRY AND TRADE

Industry

Heavy Industry

Textile Industry

Cotton Advisory Board

Diversification

Trade.

International Trading Problems

vii

62

64

66

71

72

74

74

75

77

CONTENTS

Page

Chapter

6 INDUSTRY AND TRADE-Contd

Trade Promotion

Trade Control

Documentation of Origin

Preventive Service

Overseas Representation

Tourism

7

PRIMARY PRODUCTION

Agricultural Land in the New Territories

Land Utilization

Policy and Administration.

Agriculture

Animal Industries

Forestry

Fishing

88

91 92.

93

95

95

98

99

101

103

105

107

109

113

117

118

Marketing.

Co-operative Societies

Mining

8

EDUCATION

School Expansion Programme

120

Primary Education

121

Secondary Education.

122

Post-Secondary Education.

123

Further Education Overseas

126

Adult Education

127

Teachers and Teacher Training.

128

Examinations

130

Scholarships and Bursaries

131

Expenditure on Education.

132

Legislation.

132

Board of Education

133

School Administration

133

Voluntary Education and Welfare Work

135

Libraries

135

viii

Chapter

8 EDUCATION

Contd

CONTENTS

Page

Physical Education

136

Music, Drama and Art in the Schools

136

Education Conference and Exhibition

137

9 HEALTH

Public Health Administration

138

General Health .

139

Cholera

142

Other Communicable Diseases

144

Social Hygiene Service

148

Health Services .

151

Hospitals

155

Out-patient Clinics and Services

157

Specialist Services

157

Dental Services.

158

Training

160

Urban Services

162

Hygiene Section.

163

New Territories .

167

10

LAND AND HOUSING

Land

Housing

Resettlement

Rent Controls

11

SOCIAL WELFARE

12

LEGISLATION

169

178

182

188

190

196

13

LAW, ORDER AND RECORDS

The Courts of Justice

200

Police Force

202

Immigration

Prisons

Records

211

216

217

ix

Chapter

CONTENTS

Page

14 PUBLIC WORKS AND UTILITIES

Public Works

Public Utilities

Public Road Transport Services

225

234

239

15

COMMUNICATIONS

Marine

243

Civil Aviation

248

Kowloon-Canton Railway

251

Roads

252

Multi-Storey Car Parks

254

Post Office.

254

Telecommunications

257

Royal Observatory

259

The Year's Weather

261

Typhoon Wanda

262

16 PUBLICATIONS, BROADCASTING AND FILMS

Press.

267

Publishing.

268

Government Information Services

269

Public Enquiry Service

275

Broadcasting and Television

275

Radio Hong Kong

276

Commercial Radio

280

Rediffusion

282

Film Industry

284

17 LOCAL FORCES AND CIVIL DEFENCE SERVICES .

286

18 RESEARCH

University Government

19 RELIGION

291

294

297

X

CONTENTS

Chapter

20

THE ARTS

Government Collections

British Council

Page

304

307

308

21

SPORT AND RECREATION

310

Parks, Playgrounds and other amenities

313

PART III

22

22

GIOGRAPHY

Geographical setting.

319

Topography and Geology.

319

Vegetation.

321

Population.

321

Climate

322

2 23

23 NATURAL HISTORY

24

HISTORY

Antecedents

The Island Colony, 1841-60

324

333

337

Extensions to the Colony, 1860-99

339

Development of the Colony up to 1941

340

The Chinese Revolution and Two World Wars .

343

The Post-War Years.

344

25 CONSTITUTION AND ADMINISTRATION

Constitution

347

Judiciary

348

Administration

348

New Territories Administration .

352

2220

The Public Service

26 WHIGHTS AND MEASURES.

27

BIILIOGRAPHY

354

357

358

xi

Boy on the quay

CONTENTS

ILLUSTRATIONS

Page

Frontispiece

The Port

Typhoon Wanda

betweer 12-13

betweer 36-7

Illegal immigrants

between 84-5

The many faces of Hong Kong.

between

108 - 9

Education.

between 132 - 3

Health

Housing

between 156-7

between 180 - 1

Women police

Water and Kowloon tunnel

City Hall.

Silver Mine Bay holiday camp .

New airport terminal

Royal Hong Kong Defence Force

Hong Kong by night.

between 204 - 5

between 224 - 5

between 228 - 9

between 232-3

between 252-3

between 276 - 7

between 300 - 1

Flowers

between 324 - 5

DIAGRAMS

Imports and Exports

betwee

72-3

MAPS

Hong Kong and the New Territories.

front end-paper

Hong Kong in the Far East

back end-paper

Victoria and Kowloon

facing 392-3

xii

CONTENTS

APPENDICES

Appendix

I EMPLOYMENT

II

III

Industrial undertakings and persons employed in main industrial groups-In selected indus- tries in some main industrial groups-Monthly Retail Price Indices Industrial and occupa- tional accidents Factory registrations and inspections.

PUBLIC FINANCES

-

Revenue - Expenditure-Statement of Assets and Liabilities-Comparative Statement of Re- current and Capital Income and Expenditure- Public Debt-Revenue from Duties and Licence Fees Colonial Development and Welfare schemes Statement of Approved Projects- Balance Sheet as at 31st March 1962.

CURRENCY AND BANKING.

Currency in circulation and bank deposits- Banking Assets Authorized foreign exchange banks.

IV

TRADE

V

VI

Value of Merchandise Trade-Cargo Tonnages -Commodity pattern and sources of imports-- Commodity pattern and direction of exports and re-exports-Composition of trade by inter- national trade classifications.

PIIMARY PRODUCTION

Summary - Livestock population - Marketing Organization statistics-Production of minerals. -Co-operative Societies.

EDUCATION

Overseas examinations Awards by Govern- ments Students pursuing further studies in Britain Categories of schools-School enrol- ments-New schools built and number of class- rooms--Expenditure.

xiii

Page

393

397

410

413

426

430

Appendix

VII HEALTH

CONTENTS

... -

Students in training- Vital statistics Infec- tious diseases - - Tuberculosis Qualified per- sons registered-Hospital beds.

Page

434

VIII

HOUSING.

438

Sales of Crown land Housing provided Resettlement estates.

IX

LAW, ORDER AND RECORDS

440

Court cases-

       Serious crime-Traffic accidents -Registered vehicles-Population movements.

X

COMMUNICATIONS

444

Maor

Marine Railway- Vehicles Air traffic-

ww

Postal traffic Telecommunications

storms and typhoons.

XI

SOME LEADING NEWSPAPERS AND MAGAZINES .

448

XII

EXECUTIVE AND LEGISLATIVE COUNCILS .

449

XIII

URBAN COUNCIL

452

XIV OFFICIAL PUBLICATIONS

INDEX

453

457

xiv

Part I

1

Review

THE PORT OF HONG KONG

     THE need for a port where, in the words of Article III of the Treaty of Nanking, British subjects 'may careen and refit their ships, when required, and keep stores for that purpose' had become increasingly obvious in the years leading up to 1842. As early as 1793 Lord Macartney had attempted to secure either commercial concessions at Canton or an island where the British could reside and, though the Chinese had received him hospitably, he had failed to persuade them to agree to either of his requests. A second attempt by Lord Amherst in 1816 also ended in failure. Tension increased during the eighteen-twenties as the Chinese became progressively more alarmed about the financial and moral con- sequences of the opium trade, and it was their embargo against this trade in 1839 which led to hostilities and the Treaty of Nanking.

      For more than 18 months before the signing of the Treaty, how- ever, the British had established themselves on Hong Kong Island, having taken possession under the Convention of Chuenpi which was agreed between the British and Chinese plenipotentiaries, Captain Charles Elliot, RN, and Commissioner Keshen, in January 1841 but subsequently rejected by both governments. The impor- tance which Captain Elliot attached to the port, as opposed to the settlement, is indicated by the fact that he appointed the first harbour master and marine magistrate within five months of raising the British flag. He was Lieutenant William Pedder, RN, who had been the navigator of the 660-ton paddle steamer Nemesis, the first iron-built ship to round the Cape of Good Hope. His assistant, Mr A. Lena, has been described as 'an Italian gentle- man who had spent many years in the English merchant service'.

As far as can be learnt from sketches the first harbour office and marine court, probably a matshed, was sited on the waterfront

4

REVIEW

at the corner of Wyndham Street and Queen's Road, where other Government buildings were also erected. An early map of the Colony shows that the harbour master had a boatshed on the site of the present Holland House at the bottom of Battery Path. The first building for commercial purposes appears to have been a godown, or warehouse, constructed in 1841 for Messrs Lindsay and Company at Spring Gardens, Wan Chai. Messrs Jardine, Matheson and Company constructed their first godown about the same time and apparently used it to accommodate a cargo of cotton which Mr James Matheson had purchased from America. Another godown owner was Messrs Livingston and Company, who built an office combined with a godown in Wan Chai, but moved to another site in Aberdeen Street about two years later.

     Records indicate that marine legislation began in 1841 when Lieutenant Pedder issued Port Regulations to control vessels in the harbour. A copy of these regulations is not available, but later ordinances are strongly reminiscent of the times in which they were made. For instance Section 68(1)(c) of the Merchant Shipping Act, 1853, refers not only to bodies of dead animals floating in the harbour but also to dead seamen, as it was not unusual in Hong Kong's early days for masters of vessels to throw overboard the body of any crew member who died. Another regulation ordered masters to hoist the international code flag 'P', commonly called the Blue Peter, at least 24 hours before a ship was due to leave port. This was in order that merchants and others could go on board and collect any debts due to them from the ship's master or crew. Another ordinance put an end to the practice of leaving seamen ashore on the departure of their vessel.

Under Section 15 of Ordinance No 19, 20 boats, probably sam- pans, were permitted to ply in the harbour between 9 p.m. and midnight. The registrar general in 1854, Mr C. May, listed the small craft in the harbour of Victoria and the bays of Hong Kong as: 'Junks, trading boats, wood boats, passage boats, salt boats, lorchas, cargo boats, fishing boats, harbour and pull-away boats, cooking boats, water boats, sampans, stone boats and bum boats'. Most are still known in Hong Kong today, but the lorcha is not so familiar. It is, in fact, a craft with a western type hull fitted with Chinese rigging.

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5

      Because of the increasing number of ships calling at Hong Kong it was found essential to provide hospital facilities for European seamen, who in those days were very susceptible to local diseases. A hospital, built by public subscription, was established at Morrison Hill, Happy Valley, and received its first patient on 30th September 1844.

      The first report of a typhoon affecting the Colony was made in 1841, when Captain Elliot was blown ashore on an island in the Lin Ting group during a voyage from Macau to Hong Kong in his cutter Louisa. Elliot and his crew were subsequently rescued and returned to Macau, but only after paying fishermen a con- siderable sum for their passage.

The first chart of the harbour, published in 1843, was based on a survey carried out two years earlier by Captain Sir Edward Belcher on HMS Sulphur. Many buildings are shown and the shoreline ran where Queen's Road is today. Queen's Road was, in fact, the first public road in Hong Kong and was constructed before any reclamation schemes were begun.

Hong Kong has always been a free port and the first official declaration on this subject was made in March 1842 by Sir Henry Pottinger, who later became the first Governor. He said that it was open to all ships without discrimination. During the first two years of the Colony's occupation, however, there was little organized development of the port, the reason no doubt being that continued British occupation was uncertain. Later many British and Chinese merchants began building offices and godowns on the waterfront and some also carried out private reclamation projects.

      During the first few years of British tenure the naval forces were under the command of Admiral Parker, who took possession of a central location in the area now known as Victoria Barracks and used it for housing naval stores. Being of an independent turn of mind, the admiral refused to move his stores when Pottinger first attempted to lay out the town of Victoria in 1843, and this is doubtless the reason for the present location of the naval base and dockyard.

       Harbour masters' annual reports for the first decade of British administration are not available, but Captain T. V. Watkin, who

6

REVIEW

     was harbour master between 1854 and 1858, gave a summary of the ships calling at Hong Kong. In 1842, 381 vessels totalling 136,336 tons entered the harbour; of this number 336 were British, with a total tonnage of 124,357. By 1847 approximately 60 vessels with an average displacement of 330 tons were calling monthly at Hong Kong and by 1853 the number showed an increase of approximately 250 per cent over 1842.

The years between 1848 and 1861 witnessed great commercial development. The earlier mood of despondency had passed, the rising Chinese population gave a fillip to business and the growth of an entrepôt trade to supply Chinese communities abroad was beginning to show promise. During this period, also, Hong Kong's subsequent role as a centre for the supply of British goods to China began to emerge, linking the Colony's prosperity with the vast population of China. It is difficult to obtain a reliable account of trade for this period, but shipping statistics provide some evidence of substantial growth. In 1848, 700 ships of 229,465 tons entered the port; by 1859 these figures had increased to 2,179 ships of 1,164,640 tons. Tea exports in 1849 were given as 5,570 chests and 910 boxes to the United Kingdom, 1,668 chests to Australia, and 1,869 chests to San Francisco. In 1855 official estimates of the Colony's imports and exports ceased, because some of the statistics were found to be wrong. Local industry developed around shipping and this is illustrated by the fact that in 1853 there were 240 ship-chandlers, two rope manufactories and two cannon factories in the Colony; by 1865 there were 427 ship-chandlers, 93 boat builders, 20 rope works and one drydock.

*

*

Most of the vessels which called at Hong Kong during the first 13 years of its existence were naturally sailing ships, but the port also had its quota of steam vessels, mostly paddle steamers. The first shipping company to operate a regular steamer service to the port was the Peninsular and Oriental Steam Navigation Company, which was incorporated by Royal Charter in 1840 and originally ran a service between the United Kingdom and the Iberian

REVIEW

7

Peninsula. The first Peninsular and Oriental vessel to call regularly at Hong Kong was the Lady Mary Wood which arrived in 1845 on the company's so-called 'China extension'. During the same period the P&O established an office on the waterfront in the Western district of Victoria.

To take part in the commercial development of Hong Kong, the P&O sent out their 400-ton steamer Canton three years later to operate between Canton, Macau and Hong Kong, thus establish- ing a feeder service for their vessels on the United Kingdom run. The Canton proved very popular with merchant houses in the Colony since she was well-armed and could repel the pirates who infested the nearby islands. The P&O were also one of the pioneers on the China coast, establishing a regular run between Hong Kong and Shanghai in 1849 by the Lady Mary Wood. The service was unique in being undertaken without a Government mail contract, which in those days was normally an accepted pre-requisite for the opening of a new steamship service.

      Messrs Jardine, Matheson and Company, under the chairman- ship of Mr James Matheson, also pioneered many early shipping services between Hong Kong and India, using both sailing and steam vessels. Jardines' ships were noted for their speed and it was not unusual for them to reach Hong Kong before the mail ship, thereby permitting the company's taipans to get advance information on the world situation and the state of the markets. In order to obtain even speedier delivery of their despatches Jardines established a lookout station on a hill behind Causeway Bay and as soon as one of their vessels was sighted a fast whale- boat would be sent out to Kowloon Bay to intercept it. The hill is still known as Jardines Lookout.

      Compulsory registration of British ships dates from the Naviga- tion Acts of 1660, and in 1855 the Hong Kong Government pro- mulgated an ordinance establishing a proper system of registration for local vessels. The first vessel to be registered was the lorcha Rapid, of 66 tons, which was owned by a Mr Cheung Hoong of Victoria. To be registered under the ordinance the owner of a vessel had to comply with only one requirement, namely that he was the lessee of land in the Colony; he did not have to be a British subject or a body corporate under the laws of the Colony,

8

REVIEW

as has always been the case for vessels registered under the Merchant Shipping Acts.

It was the custom to print notices to mariners in official publica- tions and one seen frequently during the first 30 years or so of the Colony's history makes curious reading today-a notice calling for sealed tenders for passages from Hong Kong to Singapore for Chinese convicts. Another type of traveller, the Chinese emigrant, was causing the Hong Kong Government some concern and the appointment in 1854 of the first marine surveyor, Mr John Rickets, was mainly made to prevent contravention of the Passenger Act of 1852. This Act sought to improve conditions on vessels carrying emigrant passengers, which were well known to be deplorable. Ships leaving Hong Kong with Chinese emigrants were regular offenders, the captains regarding overcrowding and under-feeding as normal practice. The first returns for emigrants leaving the Colony were published in the Government Gazette on 5th July 1854, showing that 4,341 emigrants left for Australia and 10,496 for California.

**

By 1856 the P&O Company's vessels, on their United Kingdom mail service, were calling twice a month at Hong Kong, and in addition the company's coastal fleet was operating regularly to Shanghai. A large part of the cargo on these mail steamers con- sisted of opium and the Government Gazette stated that in 1852 ships of the P&O fleet brought into Hong Kong 15,747 chests of opium; by the following year the number had risen to 36,499 chests. One of the most dynamic shipping personalities in the early history of the port was Thomas (later Sir Thomas) Sutherland, of the P&O, who arrived in 1854 and remained until 1866. He not only furthered the P&O's shipping business with great energy, but was also the first chairman of the Hong Kong and Whampoa Dockyard Company in 1863 and was closely associated with the establishment of the Hongkong and Shanghai Banking Corporation. It was usual in those days for the P&O to publish notices in the Government Gazette showing departures of their mail steamers and the passage rates between Hong Kong and the United Kingdom, via the Egyptian overland route. In 1854 the fare to

REVIEW

9

     Southampton for a lady or gentleman travelling singly was 72 Spanish dollars.

      Efficient shipbuilding and ship-repairing facilities are essential to the development of any port and Hong Kong was well provided for in this respect by early entrepreneurs. The first vessel known to have been built in Hong Kong was the Celestial, of 80 tons, which Captain Lamont constructed on his patent slip at East Point in 1843. In 1857 Mr Lapraik, the founder of the Douglas Steam and Navigation Company, purchased a marine lot of 11 acres at Aberdeen and built a drydock called the Hope Dock, which was opened in 1867 by the Governor, Sir Richard Macdonnell.

One of the pioneer merchant houses in Hong Kong was Messrs Dent and Company and in 1859 this firm built the steamship Ly-ee-mun of 762 tons. The firm was also well known for the stand it took, in conjunction with Messrs Lindsay and Company, against Government's plan to build a continuous praya wall between Murray Road and Wilmer Street. Some sections of the reclamation were completed by 1862, but because of Dent and Lindsay's objections the project was not finished until 1879-80.

**

*

**

      There is no record of the precise limits of the port prior to the cession of the Kowloon peninsula to Britain in 1860, but after that date survey maps show that the eastern harbour limits were from a post at North Point to the boundary of the Colony at Kowloon City. On the west the limits were from Hong Kong Island to Green Island, thence to the western end of Stonecutters Island, thence along the northern shore of the island and across to Sham Shui Po at Boundary Street.

      The first Ben Line ship, belonging to William Thompson of Leith, is reported to have arrived in Hong Kong in 1861 with a cargo of patent fuel. It was the sailing ship William Mitchell of 611 tons, reputed to have had 'a most life-like figurehead depicting one of the original shareholders of the line'. With mail steamers and other ships entering the port in increasing numbers it was necessary in 1861 to establish a signal station on Victoria Peak, so that news of a vessel's arrival could be relayed to the post office, harbour office and the ship's agent without delay.

10

REVIEW

In 1861 Lieutenant Henry George Thomsett, RN, was appointed harbour master and marine magistrate, a post he was to hold for 27 years. In common with other civil servants of his day he had to obtain a bond of $2,000 as security for the discharge of his duties. He also held the titles of superintendent of the gunpowder depot and customs officer. In 1866 the harbour office moved from its original site near Wyndham Street to Morrison Street. No details are available about the new office, but apparently it was necessary to re-construct the building after only eight years.

The first important shipping legislation undertaken by Lieutenant Thomsett was the Harbour and Coast Ordinance No 2 of 1866, which provided for greater control over junks and harbour craft. Figures in the harbour master's annual report for 1867 show that there were 31,561 junks with 325,380 persons on board. One of the immediate effects of the introduction of the Harbour and Coast Ordinance was the disappearance of all junks from the harbour and the departure of about 2,000 other Chinese from the Colony. After this initial scare, however, the Chinese merchants were re- assured and applications for junk licences numbered over 2,000 in the next 12 months.

*

      Between 1862 and 1884 six severe typhoons affected Hong Kong, all causing much damage to shipping in the harbour. One of the worst of these typhoons, on 23rd September 1874, caused the death of 200 crew members of merchant ships. Thirty-seven vessels were driven ashore or seriously damaged, seven being a total loss. The floating population suffered badly, losing 640 harbour craft and at least 672 lives. A few years later a member of the Legislative Council estimated that between four and five thousand people in the Colony had lost their lives during the typhoon. In the harbour master's report of 14th October 1874, Lieutenant Thomsett stated that several ships were lost because their masters had not kept an eye on their barometers. Following the 1874 typhoon public opinion demanded that Government take action to safeguard the floating population and the Causeway Bay typhoon shelter, estimated to have cost £16,000, was opened in 1880.

It is axiomatic that no centre of shipping and trade can exist without banking facilities and in this field of activity two banks

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11

led the way the Chartered Bank of India, Australia and China (now the Chartered Bank), which opened a branch in 1863, and the Hongkong and Shanghai Banking Corporation, which was founded the following year. To importers and exporters the banks granted credit or loans against bills of lading, an ancient document of title invaluable to traders whose capital was invested in cargo. In a similar manner banking facilities were essential to the develop- ment of shipping companies. Using the British Shipping Registers maintained in the Colony a shipowner was able to offer his vessel as security for a loan from a bank or from any other mortgagee.

In 1866 Mr Alfred Holt founded the Ocean Steamship Company and dispatched a vessel to China via Hong Kong, thus forging the first link in the chain that still connects the well-known Blue Funnel Line with Hong Kong. With the expansion of trade between the United Kingdom and China which took place toward the end of the eighteen-sixties the Blue Funnel Line had five steamers on its Far Eastern service, and by 1872 these were joined by another seven. The freight rate charged by the Ocean Steamship Company in 1866 averaged £6 a ton. Passage rates between the United Kingdom and Hong Kong averaged £60.

Before 1870 there were three major shipping companies calling regularly at Hong Kong-the P&O, the Blue Funnel Line and Messageries Maritimes. In the early eighteen-seventies these firms were joined by the Glen Line and the Castle Line, and competition on the Far East route became extremely keen. To rationalize the situation the liner firms decided to enter into an agreement to equalize freight rates, and formed the Far East Conference under the chairmanship of Mr John Samuel Swire who had been closely connected with the China trade since 1866. Swire was the owner of a Liverpool merchant firm, Messrs John Swire and Sons, which had originally conducted business with America and Australia but which had been forced to seek other outlets due to the American Civil War. Seeing the potential trade in China, Swire decided to enter into partnership with Mr Richard Butterfield, a Bradford woollen merchant, and trading under the name Butterfield and Swire they opened offices in Shanghai in 1866 and in Hong Kong in 1870. The China Navigation Company, which still operates a large and very efficient fleet of steamers from Hong Kong, was

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formed in 1872 by John Swire and Sons of London, primarily to trade on the Yangtse River.

      In 1870 communications between Hong Kong and China were greatly improved when the Great Northern Telegraph Company started operations along the coast. The firm still has close con- nexions with Hong Kong and its cable-laying vessel, Store Nordiske, usually anchors off Wan Chai awaiting calls for her services.

Up to 1867 all imported gunpowder was stored in a privately owned junk moored outside the harbour. In that year a schooner was alongside the junk discharging gunpowder when an explosion occurred, causing serious loss of life. The Government decided to take over full responsibility for the control and storage of gun- powder and in the same year purchased a hulk and anchored it off Stonecutters Island. Imports of gunpowder began to increase immediately and it was necessary to use the old jail on Stonecutters Island as an additional store. A properly constructed powder magazine was finally built on Stonecutters Island in 1876, but some 13 years later the harbour master reported that the buildings were in a deplorable condition. Despite this warning it was not until 1906 that the present gunpowder depot was constructed on Green Island.

In Hong Kong's early days ice was imported from North China and stored for use in the summer. Later the Tudor Ice Company imported ice from North America and a sailing ship arrived annually with the Colony's supply, the blocks being stored in a depot in Ice House Street. This continued until 1874 when two Scotsmen, Kyle and Bain, started the first ice-making business, which Messrs Jardine, Matheson and Company took over in 1879. Sailing vessels brought kerosene from North America and the Asiatic Petroleum Company, later taken over by the Shell Company, was one of the pioneers of the trade with a bulk depot at Causeway Bay. The Standard Oil Company of New York, now known as the Mobil Petroleum Company Incorporated, started operations in Hong Kong in 1894 and built their present oil berth and tank farm at Lai Chi Kok in 1904.

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Since its earliest days Hong Kong has been a port of call for the big ships of the world. The water colour above, taken from the Ho Tung Collection, shows the harbour as it appeared about 1855. Below, the Oronsay, one of the biggest ships calling today, leaves harbour. Only the junks remain the same.

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Most passenger vessels tie up at the wharves in Kowloon (above) where a $2,200,000 temporary sea terminal was opened in December. However the journey across to Hong Kong Island is both quick and cheap. Star ferries like the one below carry more than 100,000 people a day across the

harbour for 20 cents first class or 10 cents second class. F

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Big increases in recent years in the numbers of passengers and vehicles crossing the harbour have made more ferries essential. The Man, Bong, being built by the Hong Kong and Whampoa Dock Company for the Hong Kong and Yaumati Ferry Company, will carry 40 vehicles and 530 first-class passengers. It is the second of two sister vessels.

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For 120 years Hong Kong has grown and prospered through its port. Once the almost landlocked anchorage was the centre of a vast entrepôt trade; today it plays a vital part in the Colony's industrial economy. Ships bring raw materials from all parts of the world and later carry the manufactured goods to more than 100 countries.

More than 6,000 ocean-going vessels now call at Hong Kong each year. Many of them drop anchor in the stream where they discharge cargo into, or receive cargo from, junks and lighters. Several hundred such craft are employed and play a big part in maintaining Hong Kong's reputation as the fastest turn-round port in the Far East.

From the tower of the Marine Department (above) an officer signals to a vessel in the harbour. Despite other methods of communication, visual signalling is still widely used and many thousands of messages are passed each year. At a school run by the Marine Department (below) coxswains study for the Local Master's Certificate of Competency.

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Eighty years ago a European traveller wrote that 'the Chinese junk is a sturdy craft; its timbers are the stoutest and in design it has changed little with the centuries.' Even the sturdiest junk needs overhauling from time to time, however, and at Shau Kei Wan a junk owner's wife and her friend work on the rudder of their craft.

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       In 1883 the first Government astronomer, Dr Doberck, was appointed and the observatory building was completed the follow- ing year. Storm warning signals were displayed for the benefit of shipping using the port and in 1884 a typhoon warning gun was installed at Tsim Sha Tsui police station. In 1902 a time ball tower was built on Blackhead Hill and this red brick building still stands as a Marine Department signal station.

The Hong Kong and Kowloon Wharf and Godown Company was incorporated in 1886 and acquired the P&O's property at West Point, Jardines' Kowloon property and the Kowloon Pier and Godown Company. At that time, as now, the Hong Kong and Kowloon Wharf and Godown Company provided a large per- centage of the lighters and tugs needed by ships discharging or loading cargo at anchor in the harbour.

The first report of a reclamation scheme undertaken in Kowloon was in 1867, when an area north of the present Star Ferry piers was developed to provide about 500 feet of sea wall. In 1885 a boat basin of rather less than half an acre was constructed on a site between the reclamation and the present Holt's Wharf for the water police, whose headquarters had been built the previous year on the site of the Tsim Sha Tsui police station. A land com- mission recommended in 1886 that the Government and not private individuals should carry out all future reclamations in the harbour area, and in the same year 22 acres were reclaimed at Kennedy Town providing 3,690 feet of praya wall. Three years later a further reclamation was completed in front of the west praya.

       Between 1867 and 1886 Hong Kong was subject to a Chinese customs blockade which undoubtedly interfered considerably with the junk trade. The Chinese customs authorities, in order to make the blockade effective, established nine marine and land customs stations around the island and searched every junk arriving in or leaving British waters. The reason for the blockade was the Chinese contention that they were losing revenue from the junks carrying opium. They also alleged that Chinese merchants in Hong Kong were circumventing the Treaty Ports Agreement. The merchants counter-claimed that as Hong Kong was a free port the Chinese should suppress any illicit trade at their own boundaries, and all

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duties should properly be collected at the Chinese port of entry. One of the results of this dispute was the increased use of steam- ships by local Chinese merchants, one of whom is reported to have purchased 13. The blockade ended in 1886 when an agreement was made with the Chinese under which no opium was to be landed in Hong Kong, moved, transhipped, stored or exported without the harbour master's permission.

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As the number of ships entering Hong Kong continued to in- crease Lieutenant Thomsett took the view that lighthouses should be established at both the eastern and western approaches to the harbour. In 1867 he arranged for Commander Reed, a naval sur- veyor attached to HMS Rifleman, to submit recommendations on the best sites and the number of lighthouses needed. The sites recommended by Commander Reed were at Waglan, Green Island and Gap Rock. Two of these sites-Waglan and Gap Rock-were in Chinese territory and the Chinese Government refused to approve them. Finally Cape D'Aguilar, Green Island and Cape Collinson were selected and the first lighthouse in the Colony was put into operation on 16th April 1875, at Cape D'Aguilar. It was closely followed by the Green Island light, but as the Crown Agents mistakenly sent the equipment for Cape Collinson to the Cape of Good Hope the third light did not begin to operate for two years. To defray the capital cost of £1,045 14s 2d, and to meet the expense of maintaining the lighthouses, light dues were levied for the first time in 1875. The lighthouse at Gap Rock was not completed until 1892, although agreement in principle on this project had been reached with the Chinese authorities in 1886. A year later the centre of a severe typhoon passed over the rock causing extensive damage to the lighthouse and extinguishing the light for several days. With the building of the lighthouses at Cape D'Aguilar and Gap Rock, and the laying of cables to Victoria, signal stations were established and reports given of all passing ships.

      The lighthouse at Waglan Island was built by the Chinese Maritime Customs in 1893 and the Hong Kong Harbour Depart- ment took it over on 1st January 1901, following the leasing of

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the New Territories. The Chinese reported that on 29th July 1896, waves dashed over the lighthouse buildings, flooding the fresh water tanks and completely carrying away the derrick used for landing stores, while spray reached the lantern 225 feet above high water mark, pitting the panes with sand and gravel.

      Further increases in the amount of shipping using the port led to the appointment of two boarding officers in 1870, and this was the start of the boarding office, or port control office as it is known today. No information is available on their qualifications, but it is likely they were ex-policemen or soldiers, in keeping with the normal recruitment practice at that time.

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      Emigration of Chinese continued throughout the eighteen- seventies, with an average of 35,000 emigrants leaving Hong Kong annually; strangely, approximately the same number returned. Despite the ordinances designed to stop abuses, difficulties still existed in controlling emigrant ships. This is borne out by the harbour master in his annual report of 1867, in which he says that vessels were sailing with only 20 passengers on board but surreptitiously embarking large numbers of Chinese beyond Green Island. Lieutenant Thomsett went on to say that he intended stopping this practice immediately, but apparently he was not particularly successful, for he was later charged by the Governor, Sir John Pope Hennessy, with being remiss in the examination of emigrant ships.

       The silting up of the harbour appears to have been mentioned for the first time in 1875, when it was pointed out that the small pier projecting from the naval yard was practically high and dry at low tide and stores being landed there often had to be dragged over the mud. The surveyor general, Mr J. M. Price, proposed a reclamation scheme in front of the naval and military areas, but it was never carried out because the Admiralty and the War Office refused to contribute toward the cost.

      With the building of the Suez Canal and the opening of telegraph links between Hong Kong and other parts of the world it was no longer necessary for importers to keep large stocks of goods in the Colony. Consequently the large godowns at East Point and Wan

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     Chai were no longer required and godown workers moved to Kennedy Town in search of employment.

      Communications between ship and shore, and between Hong Kong and Kowloon, began to improve with the introduction of steam launches. By 1876 there were nine of these craft operating in the harbour. The first regular cross-harbour ferry service was started by Mr Dorabjee Nowrojee in 1880, using steam launches, and within 10 years he owned four vessels-Morning Star, Evening Star, Rising Star and Guiding Star. They could carry about 100 persons each and made an average of 147 crossings a day. In 1898 the 'Star' Ferry Company was incorporated and took over Mr Nowrojee's assets.

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      In 1885 Lieutenant Thomsett was appointed to the Legislative Council, the first harbour master to be so honoured. No doubt Thomsett was also pleased to hear the Governor, Sir George Ferguson Bowen, describe Hong Kong as the greatest port of the Empire next to London and Liverpool. In his report for 1887 Thomsett remarked that it was becoming common to see three or four vessels of between three and four thousand tons in port at the same time. It would be interesting to hear his comments today when some 80 ships, half of them between four thousand and 14,000 tons, are frequently moored or berthed in Hong Kong at the same time.

In 1887 Mr Paul Chater, a wealthy merchant and member of the Legislative Council, proposed a reclamation of 57 acres along the waterfront between Murray Road and Western Street. The scheme received approval and was completed in 1894.

      Until the naval dock was built the majority of naval vessels docked in the Hope and Lamont Docks at Aberdeen, although the depth of water at the Hope Dock caused some difficulty when attempting to dock HMS Audacious. To overcome the inadequacy of the Aberdeen dock facilities, and in view of the Admiralty's intention to station a larger type of warship in the Far East, the Hong Kong and Whampoa Dock Company built the present No 1 dock at their Hung Hom Bay yard in 1888. This drydock cost

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over $1 million, of which the British Government provided £25,000 in return for priority of use during the dock's first 20 years. Because of the tense situation in the Far East the Admiralty decided in 1896 to extend the naval dockyard, to construct a graving dock, and to acquire as a military area the reclamation and some privately owned land dividing the naval and military areas on the north side of Queen's Road. At the same time it was decided to extend the naval area on the western side of the Kowloon peninsula.

      In 1898 11,058 ships of 13,252,733 tons entered and cleared the port and in 1901 an estimated 3,480,987 tons of cargo was exported from Hong Kong. Shipping had always been the basis of local industry, as it had of commerce, and after his arrival in the Colony in 1891 the Governor, Sir William Robinson, set out to encourage local manufacturers to diversify their products. Between the years 1891 and 1897 factories producing metal goods, soap, briquettes, rattan articles and cotton were established, and at the same time extensions to the docks, sugar refineries and cement works were begun.

Shipping legislation promulgated during the last decade of the nineteenth century and the first decade of the twentieth included the Sunday Cargo Working Ordinance of 1891 and the Pilots Ordinance of 1904. The first of these ordinances was enacted to discourage merchant ships from working cargo on Sundays, thereby permitting seamen more leisure time. Revenue collected under this ordinance during the first year of its operation amounted to $2,150. The Pilots Ordinance was introduced for the purpose of examining and licensing harbour pilots. The harbour master's report for 1905 shows that 20 candidates, including six Europeans, were examined, but only 11 passed.

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       Another severe typhoon affected the Colony on 10th November 1900. HMS Sandpiper, 10 launches and over 110 junks were sunk, and more than 200 lives lost in little more than three hours. Yet another severe typhoon passed near Hong Kong the following year with heavy loss of life, and on 18th September 1906, a very severe typhoon caused the loss of 2,413 Chinese-type craft and 141 European-type vessels. The death roll was over 10,000 and included

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15 Europeans, among them the Anglican Bishop, Dr Hoare, who apparently lost his life while attempting to save some trainees on board his mission vessel.

      During the first 60 years of the port's existence-from 1841 to 1901-the number of foreign-going ships excluding junks which entered the harbour rose from 381 to 5,403 annually; the average size of vessel increased from 350 tons to 1,350 tons. And while in 1842 the percentage of British tonnage to total tonnage was 87 per cent, this figure had decreased to 57 per cent by 1901.

      At a meeting of the Legislative Council in 1901 Commander Robert Murray Rumsey, who had been appointed harbour master in 1888, raised the question of a bridge across the harbour. The following year Rumsey elaborated on his proposal in his annual report and expressed the opinion that a bridge should not cause any inconvenience to shipping using the harbour. The proposed bridge was to be built with either a swinging or lifting central span, the average height between high water and the underside of the bridge being approximately 40 feet. The island end of the bridge was to be sited at Pottinger Street and the mainland end at Robertson Road, later renamed Nathan Road. To justify con- struction of the bridge Rumsey mentioned that six million persons crossed the harbour each year. The proposal was not, however, pursued.

      From the early nineteenth century mariners had occasionally visited the Colony to water their ships and the first firm to supply fresh water to ships in the harbour were Messrs Lane, Crawford Limited, who sold this part of their business to the Union Waterboat Company Limited in 1905. Union Waterboat are still operating and supply most of the fresh water bought by ships. calling at Hong Kong.

The managers of the Blue Funnel Line, Messrs Alfred Holt and Company, decided in 1905 to purchase the land below Signal Hill, Kowloon, in order to build piers, wharves and godowns to secure their position in the China trade. The first wharf they built was on the eastern side of Holt's property and was of steel pile con- struction with a length of 470 feet; vessels of the Blue Funnel Line are still using it today. At the end of the First World War

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the company completed a second ocean-going berth and built two reinforced concrete godowns nearby.

Although Junk Bay is now seldom used by ocean-going ships, at the turn of the century many vessels regularly anchored there at the flour mills better known as Rennie's flour mills-where they discharged about 6,000 tons of wheat a month and loaded substantial cargoes of flour and bran for China, Japan, Indo-China, the Straits Settlements, Burma and India. It is recorded that the godowns at the mills could hold 26,000 tons of wheat, 250,000 bags of flour and 10,000 bags of bran. The site formerly occupied by the mills was recently purchased by a shipbreaking company, thus marking new use of a site that played an important part in Hong Kong's early commerce.

The business of the China Navigation Company became so large at the turn of the century that Messrs Butterfield and Swire decided to establish a dockyard in Hong Kong, and purchased land at Quarry Bay for this purpose from the Government. By 1908 the Taikoo Dockyard was in full operation, although a severe typhoon in July of that year did a considerable amount of damage to some of the main workshops and caused a postponement of shipbuilding activities. The first vessel to be docked at Taikoo was the China Navigation Company's ship ss Sungkiang on 3rd October 1908, and the first vessel to be slipped on patent slip No 1 was the steamship Newchwang, on the last day of the year. The first vessel to be built at the dockyard was ss Shasi, of 1,327 tons, which was constructed for the China Navigation Company in 1910. Seven years later Taikoo launched for the Ocean Steam Ship Company the ss Autolycus, stated to be the largest ship built in any British overseas territory up to that time. One of the best Chinese repair yards in the early days of the Colony was Kwong Hip Lung and Company Limited, whose engineering work in 1908 compared favourably with that of European companies. The firm is still in existence today under the name of Kwong Yue Loong and has its workshops in Jordan Road, Kowloon.

The physical development of a port depends on the constructing of seawalls, piers, wharves and warehouses, and cement is an essential ingredient. For many harbour projects this was, and still is, supplied by the Green Island Cement Company who built their first works at Green Island, near Macau, in 1890. Nine years later

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they built a larger factory at To Kwa Wan and it was reported in 1908 that Admiralty engineers regarded concrete made from the firm's cement as unsurpassed in fineness and tensile strength, and used the cement exclusively when building the naval dockyard at Victoria.

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With the imposition of a levy on imported liquors in 1909 Hong Kong ceased to be a completely free port and in accordance with the provisions of Ordinance No 27 of 1909 a preventive service was inaugurated as a branch of the harbour office to control the import and export of spirits, opium and sugar. The staff consisted of three European officers and 20 Chinese searchers, under the command of the assistant harbour master, and from this small beginning has grown the present preventive service of the Commerce and Industry Department.

      Following the disastrous typhoons of 1906, 1908 and 1909 it was considered essential to build another typhoon refuge on the western side of the Kowloon peninsula at Mong Kok Tsui, now known as the Yau Ma Tei typhoon shelter. Building began in 1911 and the shelter was completed in August 1915 when the Governor, Sir Francis Henry May, laid a commemoration stone.

     Imports and exports of all commodities declined during the First World War. Shipping figures for 1913 show that 21,867 ships of 22,939,134 tons entered and cleared the port; by 1918 the figures had dropped to 19,997 ships of 13,982,966 tons. At the beginning of the war the Supreme Court of Hong Kong was declared a Prize Court so that any captured enemy vessel could be disposed of in the Colony without delay. To ensure that moorings in the harbour were maintained in reasonable condition the Government pur- chased 25 private moorings from their owners in 1915. The follow- ing year a further 20 buoys were laid in various parts of the harbour, including seven in the coal anchorage off Wan Chai and 12 in the rice anchorage off West Point. The daily hire rates for the buoys ranged from $4 to $8 a day, depending on the size of the vessel.

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Up to 1918 cross-harbour transport, other than the Star Ferry service, was operated by 16 companies each owning one single- deck boat. Fares were five cents for a rattan chair on the vessel's

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foredeck and two cents for a seat on a bench. Boatmen touted for passengers almost to the point of forcibly dragging them on board and fights were frequent. Finally the Government intervened and called for public tenders to operate a ferry service between Hong Kong Island, Yau Ma Tei, Mong Kok Tsui and Sham Shui Po. Between 1918 and 1923 the tender was awarded to the Four Districts Kaifong Company, formed by some of the original 16 boat owners. The routes were from Wilmer Street on Hong Kong Island to Mong Kok Tsui and Sham Shui Po, and from Wing Wo Street (near the present site of the Sincere store) to Public Square Street, Yau Ma Tei. Services operated between 5 a.m. and 10 p.m. daily, at 15-minute or half-hourly intervals. In 1923 the Hongkong and Yaumati Ferry Company Limited was incor- porated and obtained the tender for running the ferry services after the Kaifong Company's franchise had expired. The company began operations with 11 small wooden vessels propelled by steam, the smallest being the Man Foo carrying 60 passengers. By com- parison the present Man Foo can accommodate 800 passengers in addition to 30 vehicles. A few weeks after the service began pirates seized one of the company's ferries off Stonecutters Island; subsequently it was intercepted in Chinese waters, near Macau, by the Macau Marine Police. As a precautionary measure for some time after this incident the ferry company stationed a picket boat off Stonecutters Island after nightfall.

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The post-war years brought both social and economic problems. There was dislocation of world trade, depletion of shipping and shortage of commodities; scarcity of rice caused an almost four-fold increase in its price and the Government had to take over its pur- chase and distribution to check looting of rice stores. Labour unrest produced a series of strikes continuing until 1922, when a seamen's strike paralysed the harbour and spread to other branches of labour including domestic servants. The long-term effects of the war were profound but not immediately discernible. Few then realized that the Versailles Treaty had ushered in a changing world and that a new chapter in the Colony's history had opened. Hong Kong had been born in the early Victorian era as a military, com- mercial and administrative centre of expanding British trade with China; it provided conditions which China herself was unable to

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offer, conditions in which commerce could prosper. It was the era of Victorian economic laissez-faire in which every man expected to fend for himself within the framework of the rule of law. Hong Kong was an open port in which all were free to come and go. These conditions suited the merchant classes, foreign and Chinese alike, who asked for no more than to be left alone. But it was slowly being accepted in many quarters that Government would have to exercise more central control if Hong Kong was success- fully to meet the challenge of the post-war years.

      Following this new trend of thought the shipping and ship- building sub-committee of the Economic Resources Committee proposed in 1920 that some form of port authority be established in Hong Kong and that extensive dredging be undertaken off Kowloon Point. The sub-committee expressed the opinion that the harbour problem was of the utmost importance to the Colony and should be dealt with not piecemeal but as a whole. Government arranged for a firm of consulting engineers to inspect and report on the development of the harbour. The firm's representative, Sir Maurice Fitzmaurice, arrived in the Colony in 1920 and submitted his report two years later. In the event, the Fitzmaurice Report was never implemented, the port retaining the characteristics of a buoy and lighter harbour with cargo handling facilities remaining in the hands of private enterprise.

As a corollary to the Fitzmaurice Report, Mr John Duncan, the Colony's port engineer, analysed the trade statistics of the port for 1923 and the following figures, showing the relative importance of the types of vessels calling at the port, are of interest:

Imports handled by coastal steamers Imports handled by ocean-going steamers Exports handled by coastal steamers

Exports handled by ocean-going steamers

: 65 per cent of total value; : 35 per cent of total value;

: 84 per cent of total value; : 16 per cent of total value.

      Commodities listed included rice, coal and raw sugar im- ported from French Indo-China, Siam, Japan, Korea, Formosa and the Netherland East Indies; in turn, large quantities of rice and coal were re-exported to South China.

      In 1924 16 buoys were overhauled and converted to special typhoon moorings, thereby enabling ships to remain at their berths

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in comparative safety throughout a typhoon. Today 32 typhoon moorings are available to large ocean-going vessels, or to ships under repair. In the years between the wars further navigational aids were established in and around the waters of the Colony. These included lights at Tung Kwu, Channel Rock and Tathong Point in 1921, two pillar lighthouses at Lei Yue Mun Pass, and an automatic fog bell at Lam Tong Island in 1924. An outstanding coastal feature at the eastern approaches to Hong Kong is the lime-washed cliff face at Tathong Point. This dates from 1924 and shipmasters frequently describe it as particularly helpful during poor visibility. The cliff face at Kap Shui Mun is coloured in a similar manner.

      During the nineteen-twenties incidents of piracy involving ocean- going vessels increased considerably and there were at least 25 cases during the decade. Among them was the piracy of the river boat Sui On in 1924, which resulted in the ship's officers being found guilty of negligence by a marine court of inquiry. Another piracy which attracted much attention was that of the ss Tai Lee in which the master, Captain Willox, was murdered. Two of the China Navigation Company's vessels, ss Sunning and ss Anking, were attacked by pirates in 1926 and 1928, while in 1927 piracy occurred actually within the harbour on board the launch Wo Fat.

As commercial air services began to develop throughout the world a landing area for flying boats was provided in the harbour and the harbour master, Commander G. F. Hole, became director of air services in February 1929, with the task of organizing civil aviation services in the Colony. The first flight from Hong Kong to Canton took place in December 1930, and six years later. Imperial Airways, forerunner of British Overseas Airways Corporation, inaugurated a regular Hong Kong - Penang service. Part of the original Kai Tak airfield was reclaimed land, as is much of the present runway and parking apron.

A typhoon which swept down on Hong Kong with winds of 167 miles an hour on 2nd September 1937, has been described as the worst in the Colony's history. Twenty-eight sea-going ships went ashore, 1,361 junks and cargo boats were sunk, 600 junks were badly damaged, and the loss of life on vessels alone was reported to exceed 2,500. The airport suffered extensive damage.

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       On 13th October 1938, the Governor, Sir Geoffry Northcote, told the Legislative Council that he intended to ask the Secretary of State's assistance in selecting one or more experts to submit recommendations on the future organization of the port of Hong Kong. As a result Sir David J. Owen, of the Port of London Authority, and Mr Duncan Kennedy arrived in the Colony in January 1941. In essence their report recommended a public trust to control, but not to operate, the port. The war intervened and a Port Administration Inquiry Committee appointed in 1946 by the Governor, Sir Mark Young, rejected a public trust on the grounds of expense. Instead it was recommended that a Port Committee should be formed to advise Government on all matters relating to the welfare, control, administration and development of the port, including reclamation schemes. This committee was appointed in 1947 and has since met approximately four times a year. A second committee, the Port Executive Committee, was formed to keep under constant review the day-to-day problems of the port. It meets every month under the chairmanship of the Director of Marine.

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Hong Kong's pre-war shipbuilding industry produced one vessel, in particular, which achieved notable distinction. This was the celebrated Breconshire, which was completed by the Taikoo Dockyard for the Glen Line in 1939. Commissioned as a Naval auxiliary, her high speed of 19 knots enabled the Breconshire to complete eight vital trips to Malta at the height of the enemy blockade. Captain R. W. Roskill, RN, the naval historian, has stated that she thereby did more than any single ship of any type to break the siege. The Breconshire was finally disabled by enemy aircraft within sight of Malta's Grand Harbour, in March 1942, and was sunk in the open roadstead south of the island. Many of her original crew, especially among the engineers and electricians, remained on the Breconshire throughout her service under the White Ensign. Both they and those who designed and built the ship are entitled to a share in the credit for her splendid achievements.

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So far as is known the Japanese made no attempt to develop the port during their occupation of the Colony from 1941 to 1945;

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indeed, there appears to have been no attempt to carry out any maintenance whatever of essential port facilities such as naviga- tional aids, wharves, godowns and dockyards. At the end of the war the harbour was in chaos, with 13 major and 95 minor wrecks sunk in various places. No navigational lights were functioning and of the 48 Government mooring buoys in use in the harbour in 1941, only two remained. During attacks on the Colony and its subsequent occupation 35 cross-harbour ferries were lost, sunk or seriously damaged, and only five remained on skeleton services at the time of the Japanese surrender. The Hongkong and Yaumati Ferry Company's passenger and vehicle ferries were found in Macau, Canton and areas of the West River, 300 miles from Hong Kong. All were in various stages of damage and dis- repair, some with their engines dismantled or their hulls partly submerged. Salvage craft were hired from the Royal Navy, together with salvage experts and crews, and work began immediately on clearing the dockyards, wharves and fairways of wrecks. By April 1946 several major wrecks had been shifted to sites in the harbour where they no longer caused obstruction.

        To re-establish the Government's marine services in the waters of the Colony 162 vessels of various types were made available by the British Ministry of Transport and were allocated to the Hong Kong Police, fire brigade, port health and sanitary departments, and the harbour office. Several vessels of the pre-war Government fleet were found at Canton and were returned to the Colony, where they were repaired and returned to service by the staff of the Government slipway at Yau Ma Tei.

The lighthouse section of the harbour office also quickly re- habilitated itself and all navigational lights, with the exception of Gap Rock and Lantau, were operating again by April 1946. As most of the lighthouse equipment had been destroyed or badly damaged during the occupation, complete new light installations had to be fitted at most lighthouses. In addition the lighthouse tower and staff quarters at Waglan had to be partly rebuilt as they had been badly damaged by Allied air action during the war.

The port control office obtained buoys and other mooring com- ponents during the last months of 1945 and by April of the follow- ing year 75 per cent of the original number had been relaid and were in use by ships calling at the port. The various dockyard

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and wharf companies were also engaged in rehabilitating their premises and the Taikoo Dockyard docked their first ship, HMS Adamant, on 8th February 1946. Reconversion work on merchant ships released from war service kept both the Hong Kong and Whampoa and the Taikoo dockyards fully engaged for the next two years, for such facilities were at a premium throughout the world.

In 1948 the post of harbour master became that of Director of Marine, while the harbour office was renamed the Marine Department and re-organized into two sections-port control and ship surveys. By the end of that year the harbour had returned to normal and its future development was again under considera- tion. The eastern quarantine anchorage was established in Kowloon Bay and a light sited on top of the Marine Department signal tower so that it could be more easily distinguished at night against the background of bright lights and neon signs which were begin- ning to appear. In 1949 the P&O resumed their monthly passenger service to Europe.

      As salvage operations continued in the harbour many firms entered the shipbreaking business and subsequently began manu- facturing steel reinforcing rods for the building industry. Later the shipbreaking industry developed to a stage where it regularly purchased old ships from all over the world; it became a thriving industry, although affected at periods by the low price of scrap metal.

Following the establishment of the People's Republic of China in 1949 large numbers of vessels of all types and sizes came to Hong Kong from Chinese ports and were laid up in the harbour. These vessels caused so much congestion that it was necessary early in 1950 to introduce a new port levy, called an anchorage due, to discourage the laying up of further vessels and to encour- age the owners to move them to less crowded parts of the port.

*

*

Before the Pacific War, Hong Kong's economy had gradually become more diverse and less dependent on China; post-war events encouraged this process. To the older industries, such as ship- building and repairing, cement and rope-making and the tobacco industry, was added a fast-growing textile industry. By 1954 it

REVIEW

27

had become the largest employer in the Colony with nearly 32,000 workers, or approximately one-third of the existing labour force. Expansion in other industries was also evident. In 1940 there had been about 800 registered factories with some 30,000 workers; by 1954 there were 3,204 registered factories with 144,581 workers. The chief developments were in light industries-rubber footwear, flash-light cases, enamelware, plastics and electrical industries. The new industrialization had to be grafted on to the existing com- mercial pattern since raw materials had to be imported and manu- factured products exported, and in turn this meant that Hong Kong's banking, shipping and port facilities were all turned to new channels. In 1956 approximately five million tons of cargo were imported and two million tons exported.

Reclamation of land for commercial, industrial and residential, purposes during the second 60 years of the Colony's existence pro- ceeded at approximately three times the pace of the first six decades. Between the two World Wars reclamations in Kowloon at Tai Kok Tsui (1920-8), in the Lai Chi Kok area (1922-7), at Cheung Sha Wan (1919-44) and in the northern part of Kowloon Bay (1923-7) followed a steady and unhurried pace. Similarly, on the southern side of the harbour, the 1921-7 reclamation at Wan Chai was marked by no particular urgency. After the Pacific War, however, a rapid increase in population and the beginnings of industrial development on a big scale gave rise to an urgent need for land that only speedy reclamation and redevelopment of un- economic buildings could satisfy. At Kwun Tong, a dump for urban refuse for nearly 10 years, spoil from surrounding hills was used to reclaim part of the east shore of Kowloon Bay and it is on land formed in this way that the new industrial town now stands. Similar but slower developments have been carried out on both the eastern and western sides of Cheung Sha Wan since 1951. At the same time the still uncompleted reclamation at Hung Hom, first started in 1909, has been continued. Since 1953 urban re- fuse has been dumped between the Texaco peninsula and Pillar Island near Tsuen Wan, where it will contribute toward the recla- mation of land as part of a long-term project. As part of the overall development of the Kwai Chung and Tsuen Wan areas consider- ation is being given to the construction of a typhoon anchorage- which may in the future become a cargo lighter basin-in Rambler

ĵ

28

REVIEW

Channel next to the Texaco peninsula. The estimated area of this shelter is 45 acres. With the construction of quays and access roads it could eventually provide safe berths for harbour craft unloading raw materials for the factories of the future, or loading their prod- ucts for export. Immediately to the north of the Texaco peninsula is the new industrial town of Tsuen Wan, where factories and workers' flats continue to be built almost as quickly as the land on which they stand can be reclaimed. Both Tsuen Wan and Kwai Chung are at present outside the boundary of the harbour, but to provide additional mooring buoys and safe anchorage space for ocean-going ships there is a proposal to extend the western limits of the harbour. These two areas, and the eastern and northern coasts of Tsing Yi Island, will then be within the harbour

proper.

It was decided in 1951 to carry out a reclamation scheme border- ing Connaught Road, between the Royal Naval Dockyard and Morrison Street. This project, called the Central Reclamation Scheme, has been divided into four stages. The first consisted of reclaiming a section of the harbour from Murray Road to a point midway between Wardley and Ice House Streets, and included the erection of a new Queen's Pier and twin piers for the Star ferries. The reclamation work was completed in 1953, but the public and ferry piers were not finished until four years later.

Stage three began in 1956 and involved the reclamation of the seabed between Rumsey Street and Morrison Street. The seawall and bordering land provided a much needed passenger terminal for the Macau steamers. Work has now started on the other two stages of the scheme. Stage two involves reclamation between the Star Ferry piers and Queen Victoria Street, and includes the con- struction of an inverted L-shaped public pier forming a basin that will be reserved for private launches. Stage four involves reclama- tion between Rumsey Street and the present vehicle ferry berth at Jubilee Street. Projecting from the new seawall will be two piers for passenger ferry services and one for Government vessels. A site has been reserved on the reclamation for a number of Govern- ment departments, including a new Marine Department head- quarters.

      Immediately after the Pacific War it became clear that Kai Tak airport was inadequate for the bigger and faster aircraft coming

REVIEW

29

into use, and in 1954 reclamation of another kind was chosen as a solution a runway 8,340 feet long built on a finger of land reaching into Kowloon Bay. The runway now divides the bay into two halves, the eastern part being used by shipyards, boat-builders and ship-breakers, while the western side provides space for six typhoon mooring buoys mostly used by ships under repair.

*

**

*

In 1960, at the request of the Port Committee, an economist of Hong Kong University investigated daily occupancy figures of harbour buoys. After 1956, when some 300 ships a month were entering the port, an upward trend had begun to establish itself and a projection of this trend indicated that by December 1962, 500 ships a month could be expected. This figure was, in fact, reached in March 1962. It had also become apparent that the traditional China coaster of small length and tonnage was finding less employment and that larger vessels were using the port in in- creasing numbers. As a result a 10 per cent increase in the number of large ship buoys was recommended by the Port Committee for the years 1962-5. At the end of the year the Port Committee was also considering proposals to increase the harbour area to the west- ward by approximately two square miles, and to re-align and re-site mooring buoys in the western section of the harbour to take advantage of deep water south-west of Stonecutters Island.

In June 1960 typhoon Mary passed near the Colony, causing widespread damage. Fishing craft at Aberdeen and cargo-working vessels in the Yau Ma Tei typhoon shelter were severely damaged and more than 800 local craft were sunk, seriously damaged or washed ashore. The cross-harbour telephone cables were damaged by an ocean-going ship dragging its anchor. In 1962 similar, and even more severe, damage was caused to the seabed telephone cables during typhoon Wanda (further details of damage and loss of life caused by typhoon Wanda are given in chapter 15).

Following the stranding and total loss of a ship near the eastern approaches to the harbour in 1961 a Marine Court of Inquiry recommended improvements to navigational aids at the entrances to the port. Accordingly, in July 1961, the Director of Marine appointed a working party to investigate all navigational aids in the waters of the Colony. It was considered particularly important

309

REVIEW

to improve aids close to the entrances to the port, or within the harbour area, since it was apparent that commercial sky signs and vivid street lamps were affecting the visibility of navigation beacons. As immediate means of improving navigational aids in the approaches to the port, projects are now in hand at Cape Collinson, Tai Long Pai, Green Island lighthouse, Laan Pai and Ha Pang, Ngai Ying Pai, Tathong lighthouse, and Blackhead lighthouse and signal station.

*

*

*

      In recent years tourism has assumed importance in Hong Kong and the liner companies whose vessels regularly call at the Colony are understandably anxious that their passengers should enjoy facilities equal to those provided for air travellers. Private enter- prise, aided by Government, is to provide the most spectacular amenity the port has ever known-an ocean terminal adjoining the Star Ferry concourse in Tsim Sha Tsui. The large capital expenditure is being met by the Hong Kong and Kowloon Wharf and Godown Company, with Government providing a direct grant of 10 per cent up to a maximum of $4,500,000. Government will also provide a loan of 40 per cent of the capital cost up to a maximum of $18 million, on which interest of six per cent a year will be paid. The terminal is estimated to cost $46 million; of this about $25 million will be needed to construct the pier, while the balance will be used for the superstructure. The new terminal pier will be situated near the existing No 1 pier and will be 1,250 feet long and 250 feet wide. The ground floor of the superstructure will be used as a cargo transit shed, while the first and second floors will have facilities for dealing with passengers and their baggage.

      The desirability and feasibility of a cross-harbour road link have been topics of discussion ever since Commander Rumsey first raised the question 60, years ago. In 1959 the Victoria City Development Company obtained permission to make a detailed inquiry into the possibilities of such a crossing, and subsequently submitted plans for the construction of a road bridge and tunnel, as alternative projects. At the end of 1962 these proposals were still under consideration by Government.

REVIEW

31

      Whether as the centre of its entrepôt trade or, more recently, as an integral part of Hong Kong's developing industrial economy, the story of the port has been one of continued expansion and progress. The following figures show this progress during the past seven years:

Shipping Entered

1956 1957 1958 1959 1960 1961 1962

       Number of ocean-going vessels.. 3,832 4,191 4,458 4,980 5,396 5,515 5,970 Net tonnage (millions)

11.07 11.88 13.76 15.04 16.42 17.25 19.18

Trade

Exports (megatons)

Imports (megatons)

1.80 1.58 1.78 1.84 1.99 1.91

3.53 3.66 3.69 4.41 4.77 5.10

1.93

5.83

Internal Marine Traffic

Ferry passengers (millions) Vehicles carried (millions)

119 123 130 136 139 147 166 1.25 1.39 1.43 1.49 1.71 2.00 2.47

The port of Hong Kong is perhaps unique in the world. Every other port of comparable size is administered by a port authority, trust or commission operating all the harbour facilities as a self- financing body; in Hong Kong the terms of reference of the senior port advisory committee contain the significant directive:

'To see that adequate and proper facilities are available in the port for ships and their cargoes and to make and submit to Government all necessary plans on that behalf, but to allow approved private enterprises to provide these facilities as far as possible, and also to let private enterprise do its own operating.'

     The port grew up in a tradition of free enterprise. Now private enterprise and Government together continue to plan its future development. Perhaps Hong Kong and its port can be said to have achieved, through the experience of the past 120 years, that desirable balance between public control and private initiative best suited to its needs. In a period of improving living standards and rising costs, this balance enables the port to play its part in the Colony's economy. Hong Kong holds today a reputation as the fastest turn-round port for shipping in the Far East; and, equally important for the economic operation of modern ships, port charges are among the lowest in the world.

Part II

2

Population

THE total population of the Colony at the end of 1962 was estimated to be 3,526,500. Of this number, on the basis of language and place of origin, some 98 per cent were Chinese. This estimate is based on the census of population taken in February and March 1961, adjusted for births, deaths and migration. The actual population on census day (7th March 1961) after deducting 3,483 transients, was 3,129,648. Of these 1,607,779 were male and 1,521,869 female. Details of the census have been published in Report of the Census 1961.*

      The last census in 1931 found the total population to be 849,751. Another census should have been held in 1941, but the unsettled conditions which followed the Japanese invasion of China in 1937, the fluctuations in population after the attack on Canton in 1938, and later the Japanese invasion of the Colony, caused the plan to be abandoned. An unofficial count by air-raid wardens in 1941 before the Japanese attack put the population at about 1,600,000. This number was greatly reduced during the occupation and it is estimated that the total amounted to less than 600,000 when the Colony was liberated in August 1945. The population grew rapidly again with the end of hostilities, and by the end of 1946 it was believed that the pre-war level of 1,600,000 had been regained. An assessment of the population in September 1949 by the then Department of Statistics put the total at 1,857,000.

Estimates for subsequent years have been based mainly on the birth and death registration figures and on the arrival and depar- ture figures modified, where necessary, by any other information available at the time. The calculation is complicated by a signi- ficant quantity of unrecorded immigration, particularly since the number passing both ways across the frontier in any one year can

* The report consists of three volumes and costs $40. It can be obtained at the Government publications counter in the General Post Office, Hong Kong; overseas orders should be sent direct to the Government Printer, Java Road, Hong Kong and should include postage.

36

POPULATION

be equal to or greater than the total of the population. But as the series of calculations (ignoring this factor) made from 1949 to 1960 fall short of the census figures by only about 120,000, it seems that the error from this source is not on the average very large, though it may in some years reach or exceed 30,000.

      The population increased during 1962 by 300,100 to reach the estimated total of 3,526,500. Of this increase, 91,581 was due to the excess of registered births over registered deaths and 208,500 represented the estimated nett balance of migration. The year was one in which Hong Kong was subject to almost unprecedented pressure of immigration from China. This influx, mostly by clandestine channels, is referred to in more detail in Immigration, chapter 13.

       The actual number of registered births was 111,905 in 1962 compared with 108,726 in 1961; registered deaths numbered 20,324 compared with 18,738 in 1961. These figures yield for 1962 a crude birth rate of 32.8 per mille and a crude death rate of 5.9 per mille, on a mid-year population of 3,400,300.

URBAN POPULATION

The total number (except transients) claiming at the time of the census to originate from Commonwealth countries outside Hong Kong was 33,140, of whom 27,936 resided in the urban area. Those from non-Commonwealth countries, other than China, totalled 16,607 of whom 13,467 resided in the urban area. The census questions did not include nationality, but the figures pro- vided by the Aliens' Registration Office for non-Chinese alien residents (excluding visitors staying for periods less than three months and excluding children under 16 years old) at the end of 1962 totalled 8,159, of whom the largest groups were American (2,103), Portuguese (1,863), Japanese (652), Filipino (422), Dutch (386), Indonesian (329), French (323), Italian (302), German (300).

About half the urban population is now of Hong Kong birth. Most are the descendants of people who came from Kwangtung province and the greater part of the immigrant population also hail from that province. The districts of Kwangtung which have supplied the largest elements of Hong Kong's urban Chinese population are neighbouring Po On and Tung Kwun, Wai Yeung

On Saturday, September 1, Typhoon Wanda swept down on Hong Kong with devastating force, killing 130 people, injuring over 600 and making some 75,000 homeless. At Shau Kei Wan (above) over 200 small craft were wrecked. A 2,330-ton freighter keeled over at West Point (below left) and a fishing trawler foundered off Wan Chai (below right).

Twenty ships totalling over 100,000 tons were driven ashore by typhoon winds that rose in gusts to 140 knots. Two tugs went down with the loss of 39 lives. In Wan Chai (below) hawkers' stalls were reduced to match- wood, shop windows and glass balconies torn out, and streets littered by

debris that was sodden by rain.

CHILDREN I

14.

AP

* 1 *.

Win

This dramatic picture was taken in Queen's Road, in the heart of Victoria city, at the height of the typhoon. A neon sign, ripped from its supports, hung by a single wire as a boy dashed for safety. Seconds later the sign crashed to the street. As successive gusts of wind and rain swept along the street, plateglass windows caved in with riflelike explosions.

42

= v

DRAGON SEED

行子龍

As the wind mounted in intensity more and more streets were closed by fallen trees and debris. Scaffolding on a demolition site in Queen's Road, Central (above) crashed down at the height of the typhoon, putting a stop to the little traffic still about. Gloucester Road, Wan Chai (left) was one of the worst hit areas. Winds sweeping in from the harbour blew parked cars across the road, sending many through the plateglass windows of shops. The few pedestrians outdoors ran from point to point under covering balconies, dodging falling signs.

* A ĥ A 4 5 2 1.

P

DRAGON COLEMAN BUND I

Shu Tin Theatre

晚飲田沙

One of the hardest hit places was Sha Tin, in the New Territories, where a 10 ft. tidal wave swept ashore drowning more than 70 people and wrecking much of the town. Picture above shows Gurkha troops man- handling a fishing vessel that was washed ashore. Car owner (below) literally had to dig his vehicle out of wreckage.

司公

Throughout the Colony rescue and relief operations began immediately. Over 64,000 hot meals were supplied daily by the Social Welfare Depart- ment and in addition large quantities of foodstuffs were sent to the New Territories. Nearly $5 million was raised by public subscription and all of it was used to assist victims of the typhoon.

美 國 煙

發 財

-ull.

The aftermath of Typhoon Wanda found the streets of Sha Tin flooded, homes wrecked and families scattered. Despite the havoc, residents lost no time in trying to pick up the threads of their lives. Boats were used to ferry families and their possessions--while some of the youngsters took the opportunity to have a swim in the streets.

POPULATION

337

and Mui Yuen (principally Hakka), Chiuchow, Sze Yap or the so-called Four Districts (really five-Hoi Ping, Hok Shan, San Wui, Toi Shan and Yan Ping), Nam Hoi, Pun Yue, Shun Tak and Chung Shan. Other elements in the urban population include a Fukien community and numbers of overseas Chinese whose families originally came from Kwangtung or Fukien.

       Cantonese, by which is meant not any dialect of Kwangtung province but the dialect of Canton city and others sufficiently like it to be intelligible, is the lingua franca of the urban area and is the mother tongue of 806 out of every thousand inhabitants of Hong Kong, Kowloon and New Kowloon. Another 137 speak other languages of Kwangtung-Hoklo, Sze Yap and Hakka in that order-28 speak Shanghai, 13 English, 10 Kuoyu and six some other language. Among families originating in North China there is a tendency for the children to adopt Cantonese as their first language. Knowledge of English may be increasing, but locally Kuoyu seems to be on the ebb and its use is now almost confined to the academic world.

       Certain language groups are found clustered in particular parts of the Colony. On Hong Kong Island there is a concentration of Chiuchow speakers in Western District, of Fukien speakers (and a smaller number of Shanghai speakers) at North Point, and of Sze Yap speakers in Wan Chai. Across the harbour the Chiuchow concentration is at Wong Tai Sin opposite Kai Tak airport, the Sze Yap concentration in Mong Kok and Cheung Sha Wan, and the Shanghai concentration in Hung Hom. The only notable numbers of Kuoyu speakers are around Hong Kong University and Rennie's Mill, and the only districts where Portuguese speakers reach three figures are Tsim Sha Tsui (275) and North Point (116).

NEW TERRITORIES

       The indigenous population of the New Territories consists of four principal groups-the Cantonese and Hakka, who are tradi- tionally land dwellers, and the Tanka and Hoklo, who are tradi- tionally boat-dwellers. These groups show differences in physical appearance, dress, organization and customs. The Tanka and Hoklo are probably of non-Chinese origin, but all groups now regard themselves as Chinese. The usual village community con- sists of a single clan, but two and three-clan villages are common

38

POPULATION

and multi-clan villages also occur. By custom men are compelled to marry outside their own clan. It is believed that there is no intermarriage between land and sea-dwellers.

The Cantonese occupy the best part of the two principal plains in the north-west of the New Territories and own much of the most fertile land in other areas. They are also the majority com- munity on the principal islands. Their oldest villages, those of the Tang clan in Yuen Long district, have a history of continuous settlement since the late eleventh century. On Lantau Island there are Cantonese villages near Shek Pik and Mui Wo dating back to about the same time, while some in the Tung Chung Valley date back to the late thirteenth century.

       The Hakka began to enter the region at about the same time as the Cantonese, but the latter were the more successful settlers and where both groups live side by side the Hakka are always found upstream, usually on the poorer land. After a period of subservience to the powerful Cantonese families, the balance was restored by heavy immigration and the Hakka are now almost exclusive possessors of the Sha Tau Kok, Sai Kung and Hang Hau peninsulas, and of the foothills of Tai Mo Shan. They are the biggest community in Tai Po and Sha Tin, and on the islands of Tsing Yi and Ma Wan. There is a history of strife between Hakka and Cantonese, but their relations are now peaceful. Intermarriage is not uncommon and some villages are now shared between the two groups.

       The Tanka, who comprise a majority of the boat-dwellers, have been in the region since time unknown. They are the principal seafaring people of South China, owning large sea-going junks and engaging in deep-sea fishing. Usually their entire families live afloat, but at Tai O there is the rare instance of a fairly large group of Tanka living ashore, or rather half-ashore, in huts built on stakes over a mud creek. The Hoklo have also been in the region since time unknown. They are less numerous than the Tanka and are mostly found in the eastern waters of the Colony. However, in some places they have been settled ashore for several generations and there are influential Hoklo land communities on Cheung Chau and Peng Chau, and at Silver Mine Bay.

In the years since the Chinese revolution the influx of people into the New Territories from China has been so great that only

POPULATION

39

in the Sai Kung district is the truly indigenous population still in the majority. Most of these newcomers have been Cantonese, Hakka, Tanka or Hoklo, and they are now going through the process of absorption and integration. There are, however, some groups for which this process of assimilation has been much slower. These include immigrants from Shanghai and, in smaller numbers, from the East River area and the Swatow district. Almost the only group which has successfully resisted assimilation is the well- organized community of miners from northern China at the foot of Ma On Shan.

Besides the indigenous population and the more recent im- migrants, increasing numbers of people of all nationalities have moved out to the New Territories from the crowded city areas, either as a result of the rapid spread of industry, commerce and public services in the New Territories, or because they prefer a country life. The result of all these trends is reflected in the 1961 census figures for language, in which, out of each one thousand people in the New Territories, 664 gave Cantonese (including Tanka and Sze Yap) as their usual language, 234 Hakka, 46 Hoklo, 26 Shanghai, 13 English, nine Kuoyu and nine all other languages. On census day the total population of the New Territories, ex- cluding New Kowloon, was 456,404 including 46,459 boat-people. The principal centres of population were Tsuen Wan (61,106 plus 3,950 boat-dwellers), Yuen Long (33,421), Tai Po (16,957 plus 7,412 boat-dwellers), Cheung Chau (15,166 plus 4,105 boat- dwellers), Shek Wu Hui (14,286), Castle Peak (including Old Town, New Town and Sam Shing Hui, 10,745 plus 7,528 boat-dwellers), Luen Wo (8,372) and Tai O (5,516 plus 2,252 boat-dwellers).

3

Employment

OCCUPATIONS

THE 1961 census gave more comprehensive employment figures than those previously produced by the Labour Department, which computes its figures from quarterly reports of the majority of industrial employers. These figures give a reasonable picture of industrial employment, but they do not include out-workers or those employed in smaller industrial undertakings, in building and engineering construction, agriculture and fisheries and cottage in- dustries. In the past, estimates only were made for employment in these occupations, leading to figures of uncertain accuracy.

The census indicated that 1,211,999 people were economically active in a total population of 3,133,131. Of these 1,191,099 claimed to be employed. Nearly 51 per cent were workers in construction, manufacturing, mining, quarrying and utilities, while 22 per cent provided various types of services. Commerce employed 11 per cent, while agriculture, forestry, fisheries and hunting employed just over seven per cent, as did communications. Manu- facturing, with 475,520 persons or nearly 40 per cent of the work- ing population, was the largest single employer.

Workers formed 38 per cent of the total population, (849,572 males and 341,527 females). In-workers (those who work at their employers' place of business and cannot take their work away to complete) numbered 788,474 permanently employed, and 37,334 casual or seasonally employed persons. Other categories included 123,861 self-employed persons, 52,798 unpaid family workers, 11,172 apprentices, trainees and learners, 10,794 out-workers and 9,256 workers employed on commission. There were 57,400 employers.

The number of persons directly employed in industries registered with or recorded by the Labour Department increased throughout 1962 and reached a total of 297,897, an increase of 26,168 over 1961. Although the rise was steady, there were fluctuations within

EMPLOYMENT

41

individual industries. Restraints on the export of a number of textile items to the United States early in the year caused some disruption to production and the numbers employed in spinning, weaving and garment manufacturing were reduced sharply, though there was some improvement later. Persons engaged in weaving, spinning, knitting and the manufacture of garments reached a total of 71,088 and remained by far the largest section of the labour force in numbers, though the proportion of the industrial labour force employed in textiles dropped to 41 per cent from 47 per cent at the beginning of 1960. The plastics industry, in which a high percentage of known out-workers are employed, expanded and before the end of the year employed more workers than any other single industry other than the garments and shirt industry.

      Building construction for industry continued, but there remained an acute shortage of premises for the small manufacturer of limited means. However, the number of registered and recorded fac- tories increased by 946 to 7,305. Many were small concerns. Development of the industrial areas of Kwun Tong and Tsuen Wan continued but at a slower pace. San Po Kong in Kowloon also continued to develop and Government resettlement factories and a number of privately-owned factories were built there, as well as at Cheung Sha Wan, Quarry Bay and Aberdeen. Tables at Appendix I show development in the main industrial groups and selected industries.

Unemployment. Although the 1961 census reported some 16,000 persons as being unemployed the extent of unemployment or under- employment in Hong Kong remains indeterminate, as compre- hensive statistics on employment are not available. It is possible that some of those reported to be unemployed receive a fluctuating income from casual or indirect employment, since employers fre- quently report difficulty in recruiting labour despite better facilities and, in many cases, better wages. There were fluctuations in employment in various industries, but reduced employment in one sector tended to be offset by increased employment in another. Changes of this kind do not necessarily imply any lengthy period of unemployment for individual workers, since the majority of semi-skilled and unskilled workers are adaptable and can move from one industry to another similar industry.

42

EMPLOYMENT

Migration for employment. As many countries maintain strict control over the entry of Chinese the scope for employment of Hong Kong Chinese overseas is comparatively limited. The principal sources of overseas employment are North Borneo, Brunei and Sarawak, where skilled and semi-skilled workers are in great demand in the construction industry and the oil fields. The British Phosphate Commissioners continued to recruit Hong Kong workers for Nauru and Ocean Islands. More fishermen went to Singapore to work. Chinese restaurants in Britain and other countries provided employment for many waiters and cooks at attractive wages. Except for British subjects taking up employ- ment in Britain, all emigrant manual workers held contracts of service drawn up in accordance with international labour con- ventions and approved by the Labour Department. Before their departure, emigrant workers had the terms of their contracts explained to them by an officer of the department. During 1962 1,514 such contracts were approved, compared with 1,513

in 1961.

       Under the Commonwealth Immigrants Act, which came into force on 1st July 1962, a Hong Kong Chinese able to claim British nationality by reason of his birth in Hong Kong who wishes to go to Britain to work must, if he has not found a prospective employer there, apply to the Ministry of Labour in Britain for an employment voucher before entry. The Labour Department undertakes to forward these applications under arrangements with the issuing authorities in the United Kingdom. During the year 29 applications were received and 17 vouchers were issued. Most of the applicants were non-manual workers.

WAGES AND CONDITIONS OF EMPLOYMENT

       Wages. The wages of workers not engaged on piece rates are calculated on an hourly, daily, or monthly basis and are custom- arily paid at weekly or fortnightly intervals. Supervisors, techni- cians, employees of public utility companies, and all Government servants other than a few casual workers are normally paid on a monthly basis. Most semi-skilled and unskilled workers in manufacturing industries and in the printing trade are on daily rates of pay. There is no discrimination against women in rates of pay for piece work, but men engaged on a time basis are

EMPLOYMENT

43

generally more highly paid than their female counterparts. Apprentices receive progressively increasing rates of pay through- out a training period varying between two and five years, rising to a maximum which approximates that of an unskilled worker. The period under review has been one of industrial peace. Wages remained fairly stable throughout the year except in the building industry where, due to an unusual increase in con- struction, wages tended to rise. Unskilled workers' wages in this industry reached a level of about $10 a day. The crews of a number of motor boats (walla wallas) received wage increases of approximately 20 per cent, while workers engaged in certain branches of the rattan industry negotiated an increase in pay of about 22 per cent. Normal wages for daily-rated workers were: Skilled $8 to $21; semi-skilled $7 to $10; unskilled $3 to $8. Many employers provide their workers with free accommodation, sub- sidized meals or food allowances, good attendance bonuses, and paid rest-days. Many employees also receive a Chinese New Year bonus of one month's pay.

Working hours. There are no legal restrictions on the hours of work for men. Most of those in industry work 10 hours a day or less, while civil servants and those employed in concerns operating on Western lines work eight hours. Legislation made under the Factories and Industrial Undertakings Ordinance, 1955, provides for maximum daily hours, limited overtime, weekly rest-days and rest periods for women and young persons.

Young persons between the ages of 14 and 16 may work only eight hours, with a break of one hour after five hours' continuous work. Children under the age of 14 are prohibited from working in industry and no woman or young person is allowed to work at night or underground. Restrictions on the hours of work for women, introduced on 1st January 1959, have increasingly affected the working hours of men employed in the same concerns. By the end of 1962, 142 cotton spinning, cotton weaving, and silk spinning mills had introduced a system of three eight-hour daily shifts. It was estimated that by the end of 1962 27,279 men and 19,279 women were working eight hours a day. A rest period of one hour a day is customary throughout industry, but when working hours exceed eight a day the rest period may be

44

EMPLOYMENT

prolonged to as much as three hours. Except where continuous production demands a rotation of rest days, Sunday is the day most commonly given. Rest days are usually unpaid. Many male industrial workers do not have a rest day but it is customary to grant unpaid leave on request.

Retail Price Index. The Commerce and Industry Department compiles and publishes a monthly retail price index. It covers a wide range of items found in the normal budget of both industrial and white-collar workers, calculated on the basis of a survey carried out in 1948. A base of 100 for March 1947 is used. Although Government has abandoned the payment of variable cost of living allowances based on this index, except for lower paid grades, some employers still follow the scales of cost of living allowances published monthly by the Labour Department. The index remained fairly steady in 1962, varying only between 118 and 123. Variation was attributable generally to seasonal influence and in one case to typhoon Wanda which affected commodity prices. Despite this comparatively narrow range of fluctuation, complaints about the alleged inadequacy of the retail price index were made to the Labour Department in the early summer by workers' unions of various political affiliations. The complaints were particularly directed against the weight given to rent in the index. They stressed that rent in the index was related to controlled premises but that, due to the extensive reconstruction which has taken place in Hong Kong during recent years, only a few industrial workers enjoyed the benefit of being accommodated in pre-war premises, the rents of which are controlled. Reference was also made to increases in the rents of commercial premises and the inevitable transfer of this burden to consumers, including industrial workers, in the form of higher prices. In the autumn, Government announced its decision to carry out a budgetary survey of household expenditure with a view to preparing a consumer price index. The survey, which is to be made by a special unit in the Commerce and Industry Department, is expected to begin in April 1963.

LABOUR ADMINISTRATION

Labour Department. The rapid expansion of local industry since the war has been reflected in a corresponding growth of the Labour

EMPLOYMENT

45

Department from an establishment of 23 officers in 1947 to 176 in 1962. With the Registry of Trade Unions it is primarily respon- sible for executing Government's labour policy and the Commis- sioner of Labour is the principal adviser to Government on labour and industrial relations. He is ex officio chairman of the Labour Advisory Board, on which both labour and management are represented. The commissioner is also chairman of the Technical Education and Vocational Training Standing Committee, and a member of the Kwun Tong Advisory Committee concerned with the provision of industrial sites. Concurrently he is the Commis- sioner of Mines.

All labour legislation is initiated in the department, which is also responsible for ensuring that Hong Kong's obligations under international labour conventions are observed. The registration of industrial undertakings, coupled with regular inspection, ensures safe and healthy working conditions. The labour inspectorate con- tinued to seek improvement of conditions in older factories in particular, and special attention was paid to the lighting and ven- tilation of workrooms and the safeguarding of plant machinery and processes. The department conciliates in disputes between management and labour and offers advice on the establishment of appropriate machinery for joint consultation. Trade unions are guided in their formation and classes are organized to assist trade unionists in accountancy and administration. Largely through the investigations of its labour inspectors and health visitors, the department administers legislation governing workmen's compensa- tion and the working conditions of women and young persons employed in industry. The department also provides training in supervisory techniques. Special protection is given to emigrant labour, and help in seeking work is given to redundant workers from military and civil establishments.

Throughout the year posters on industrial safety were displayed in factories, and the press reported many aspects of the depart- ment's work. Talks on general safety in workplaces and on safe practices in specific processes were given by officers of the depart- ment to members of employers' associations, workers' unions, students of the Technical College and selected industrial personnel. A poster on legislation affecting industrial establishments was pro- duced in English and Chinese and sent to factories, Government

46

EMPLOYMENT

departments and interested organizations. The Labour Department took part in a safety first exhibition held at the Princess Alexandra Community Centre, Tsuen Wan. Photographs, posters and a selec- tion of safe industrial equipment were exhibited, together with some defective components which had caused accidents. Pamphlets dealing with safe practices were distributed and films on industrial safety were shown.

The Registry of Trade Unions administers the Trade Union Registration Ordinance, 1961, which came into force in January 1962. This ordinance repealed and largely replaced the law relating to trade unions contained in the Trade Unions and Trade Disputes Ordinance, which has been re-titled the Trade Disputes Ordinance. The registry deals with applications for registration by new trade unions. It also registers alterations to rules, changes of name, amalgamations or dissolutions of registered unions. The registrar also has the power to cancel the registration of a union in certain circumstances. Registered unions are required by law to keep accurate accounts, which must be audited by a person approved by the registrar, and to forward them to the registrar within three months of the end of the union's financial year. Unions must also give to the registrar before 1st April each year a return for the 12 months ended 31st December in the previous year, showing membership figures, the names and occupations of the principal officers and the name of the auditor.

The year ended with 315 unions on the register, compared with 312 in December 1961. Seven new organizations were registered during the year but four unions had their registrations cancelled at their own request. The 315 unions consisted of 240 workers' unions with a total declared membership of 165,068, 60 organiza- tions of merchants or employers with a declared membership of 7,613, and 15 mixed organizations with a total membership of 8,688.

INDUSTRIAL RELATIONS

      Trade Unions. With few exceptions trade unions are affiliated to, or associated with, one of two local federations which bear alle- giance to opposing political groups. Divided politically, and further splintered by language, the number of unions has grown beyond practical needs, and divergent loyalties have prevented those with

EMPLOYMENT

47

common interests from amalgamating into effective organizations. Ignorance of trade union movement principles makes it difficult to improve this structure.

The Hong Kong Federation of Trade Unions supports the Chinese People's Republic. Most of the members of its 63 affiliated unions are concentrated in shipyards, textile mills and public utilities, or are seafarers. A further 28 unions, nominally independ- ent, align themselves with the federation and take part in its activities. Comparatively little was heard from the federation during the year, and although it criticized the proposed restraints on textile trade with the United States and the retail price index, its principal activity was a campaign to raise $100,000 for an alternative site for its second clinic. As in previous years, no attempt was made to confine welfare benefits to members of affiliated unions and relief was offered without discrimination to the victims of typhoon Wanda.

The other union federation, the Hong Kong and Kowloon Trades Union Council, sympathizes with the policies of the Taiwan authorities. Most of the members of its 59 affiliated unions and of the 49 nominally independent unions, which generally support the TUC, are employed in the catering and building trades. Although the number of unions sympathetic to it far exceeds those adhering to the FTU, both the declared and estimated paid-up membership figures of the TUC unions are very much lower than those in the other group. The TUC is affiliated to the International Confederation of Free Trade Unions. Although it plays little part in this organization, representatives of the TUC attended the Sixth Asian Regional Conference in Japan. In conjunction with the Asian Regional Office of the International Confederation of Free Trade Unions (ICFTU-ARO), the TUC organized 10 courses in trade union education. A total of 238 officers from affiliated and sympa- thetic unions attended these courses.

The Textile Workers' Asian Regional Organization, of which the Cotton Industry Workers General Union, Hong Kong, is a member, held its first executive committee meeting in the Colony in April. Delegates from Pakistan, India and Hong Kong were present. There are 37 independent unions, with a small membership. Although several of these unions seem undecided about future

48

EMPLOYMENT

affiliations, a number have made encouraging improvements to their internal administration and in the services offered to their

members.

       A successful series of classes organized by the Labour Depart- ment for officers of the trade union movement was continued throughout 1962. Five courses on trade union administration were held and were attended by 155 representatives from 48 unions. Other activities included three courses on trade union accounting, a series of lectures on safety in industry, and a series of advanced classes on trade union accounting for officers who are directly concerned with the financial administration of trade unions. Four meetings were arranged to allow women officers of trade unions to discuss their mutual problems. A booklet, Trade Union Guide to the Preparation of Collective Agreements, was published.

       When the Trade Union Registration Ordinance, 1961, came into effect on 1st April 1962, all registered trade unions had to revise their rules to conform with the provisions of the ordinance and the Labour Department assisted 143 to do this.

Labour disputes. Despite some dislocation caused by the restric- tion on certain textile exports to the United States, which caused some mills to curtail operations and one to close down, the in- dustrial year was a quiet one. There were no serious strikes and the number of man-days lost in disputes was only 11,831 up to the end of the year. (This compared with 29,000 in 1961 and 54,062 in 1960). Of these, 7,000 were caused by a strike of casual workers employed by a leading utility company. During the year 226 large wage claims and 2,132 minor disputes were dealt with by the Labour Department. For the second successive year there were no disputes over payment of the customary gratuities at Chinese New Year.

      Up to 30th June 1962, a further 123 workers were discharged as redundant from Service establishments. As the phased run-down of these establishments reached its final stages the employment liaison office, a temporary organization originally set up in November 1957 to help redundant workers find other employment, ceased to register those discharged. However, the office continued to help those registered before July 1 who remained unemployed. Until they are working again registered redundant workers are given relief rations by the Social Welfare Department and an

EMPLOYMENT

49

attempt is made to find vacancies for their children in Government schools. A number of workers found to be too ill or too old for further employment were given grants by the Brewin Trust Fund Committee. Of a total of 6,551 redundant employees, only 290 remain registered as unemployed.

LEGISLATION

The Boilers and Pressure Receivers Ordinance, enacted in October with its subsidiary legislation, will replace the previous Steam Boilers Ordinance (Chapter 56) when it is brought into effect early in 1963. It is intended to promote the safe operation of boilers and other forms of pressure apparatus such as pressure receivers, pressure vessels, air receivers, steam containers, portable gas generators and kerosene burning pressure stoves.

       The Industrial Employment (Holidays with Pay and Sickness Allowance) Ordinance and the Trade Union Registration Ordin- ance, enacted during 1961, were brought into operation on 1st April. The Industrial Employment (Holidays with Pay and Sickness Allowance) Ordinance prescribes six statutory holidays a year for all industrial workers; these are with pay if the worker has served an employer for not less than 180 days in the preceding 12 months and on not less than 20 of the 28 days preceding each statutory holiday. Qualified workers are also entitled to 12 days sick leave on half pay each year. By the end of September 1962, the ordin- ance had been in operation for more than 180 days, and its pro-. visions were therefore fully effective. The Trade Union Registration Ordinance, a comprehensive revision of the existing law, is designed to facilitate the healthy development of local trade unionism. Draft legislation on the conditions of employment of women and young persons is being prepared. Further progress was made on amendments to the Workmen's Compensation Ordin- ance and the drafting of a Recruitment Bill was begun.

SAFETY, HEALTH AND WELFARE

       Industrial health. The protection of workers' health in work- places and the detection and prevention of occupational disease are the particular concern of the industrial health section of the Labour Department. Health control of working environments is

50

EMPLOYMENT

maintained by routine inspection of selected industrial under- takings, supported by field surveys and atmospheric monitoring where necessary. Special instruments are used to collect and measure atmospheric dust, fumes and gases, to record temperature, humidity and air velocities and to measure levels of radioactivity. The provision of adequate first-aid arrangements in factories is encouraged, and first-aid training classes for industrial workers are organized in conjunction with the St John Ambulance Association. The need for first-aid rooms or clinics is now recognized by local industry, and the larger concerns provide them. Under the Indus- trial Employment (Holidays with Pay and Sickness Allowance) Ordinance, 1961, applications from industrial undertakings for recognition of medical treatment schemes are considered and 27 schemes have been approved by the Director of Medical and Health Services.

Periodic physical examinations, blood tests and urine examina- tions were carried out on lead workers and workers handling radio- active substances or X-ray apparatus. X-ray examinations are given to those whose work involves a risk of silicosis. Compara- tively few types of occupational diseases are known to exist in Hong Kong. Notification is not compulsory and reliance has to be placed on cases being discovered by Government officials or re- ported by private doctors. Silicosis appears to be the major local occupational disease, partly because of a preponderance of granite rock which contains a high percentage of free silica.

An analysis of two surveys showed that an estimated 1,200,000 man-days were lost to local industry through sickness during 1960-1, which is about 85 per cent of the total man-days lost through industrial disputes, occupational accidents and sickness. The chief causes of sickness absenteeism in Hong Kong appear to be respiratory tract infections and gastro-intestinal upsets. Three health visitors do case work on persons injured by occupational accidents and liaise with hospitals, clinics, doctors, factory man- agers and other officers of the Labour Department who deal with workmen's compensation. Degrees of permanent incapacity for workmen's compensation cases are usually assessed at medical boards held weekly in the Queen Mary and Kowloon hospitals.

      Industrial welfare. Many industrial managements now realize the importance of welfare facilities for their employees, and provide

EMPLOYMENT

51

these beyond the minimum standards required by the Labour Department. First-aid equipment and drinking water must be pro- vided if a factory is to be registered and the department insists on the inclusion of dining and rest rooms in plans for new factories. Many of the larger concerns have clinics and free medical treatment is sometimes given to both employees and their families. Free or subsidized meals are commonly provided by managements and free or cheap accommodation is usually offered to workers in the larger factories. Some firms employ full-time welfare officers while others organize cinema and opera shows and provide facilities for football, basketball and swimming. Adult education is some- times arranged with free or subsidized tuition for employees' children. There are also voluntary organizations which provide hostels and playgrounds catering specifically for industrial workers. Workmen's Compensation. Workmen injured while working, and the dependants of those fatally injured, are entitled to compensa- tion under the Workmen's Compensation Ordinance, 1953, which stipulates the minimum rates of compensation. Assistance and advice are given by the Labour Department in all cases of work- men's compensation, and most claims are settled by amicable agreement approved by the department. Fatal cases are dealt with by the Courts. During the year $2,317,919 was paid to 7,816 injured workmen, and dependants in 100 fatal cases were awarded a total of $730,042.

Apprenticeship. Government employs apprentices in the work- shops of the Public Works Department, the Printing Department and the Kowloon-Canton Railway. Apprentices must sign inden- tures and attend technical classes. Several large firms also employ apprentices who are encouraged to attend technical classes. Tuition fees are often paid by the employers. Several of the larger spinning and weaving mills operate apprenticeship schemes for mechanics or junior engineers, and arrange classes on their own premises in both technical and general subjects.

NEW TERRITORIES

Farming and fishing are still the two principal occupations in the New Territories. Rice is the traditional crop and formerly was cultivated to the virtual exclusion of all others. In recent years, however, there has been a marked trend toward the production

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EMPLOYMENT

     of vegetables and other crops, while pigs and poultry are now reared on a large scale. Local seafaring employment is described in chapter 7.

Traditional village industries provide employment in many parts of the New Territories. Examples are the preparation of salt-fish, fish-paste, beancurd, soya sauce and preserved fruits; the burning of coral and sea-shells for lime; brick manufacture; boat building and repairing; and stone quarrying. On Peng Chau Island there is an old-established match factory for which villagers on neighbour- ing islands make match boxes by hand as a sideline occupation. There was little major industry in the New Territories before 1952, but development since then has been rapid. This is partic- ularly so at Tsuen Wan and Kwai Chung which now form one of the largest concentrations of modern industry in the Colony, engaging mainly in the manufacture of textiles, foodstuffs, metal ware and plastics. Industry is also growing up on nearby Tsing Yi Island, and includes a modern plywood factory. Further along the Castle Peak Road at Sham Tseng is the Colony's brewery and a large textile works. At Castle Peak itself there are textile, plastic and carpet factories. At Sha Tin there is a dyeing and finishing works, while carpets are manufactured at Tai Po. Junk Bay, on the south-east side of the New Territories, is now being developed as the permanent site of the Colony's ship-breaking industry, and also for associated industries such as steel rolling mills. Mining and prospecting provide employment in a number of places, and at Ma On Shan there is a large iron ore mine.

      The intensification of agriculture and the spread of industry have been factors in the rapid growth of the New Territories townships, where more and more people are now employed in trade and commerce, and in services such as Government and transport. Public and private building development has been taking place in the New Territories on a larger scale than ever, bringing with it an increased demand for labour.

Young men from the New Territories have for many generations sought their fortunes overseas, sending back money to their families and often returning later to their villages as men of substance- at least by local standards. The Second World War and the after- math of the Chinese revolution led to a temporary decline in overseas migration, but recently there has been a very marked

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53

increase and 1,747 New Territories people are known to have gone to work in Britain alone during 1962. At the present time there are believed to be about 1,300 Chinese restaurants in Britain employing more than 20,000 Hong Kong workers, the majority of whom are from the New Territories. Remittances from overseas are now an important factor in the economy of the New Territories. During 1962, for example, postal and money orders to the value of $16 million were cashed at New Territories post offices, compared with only $1,200,000 four years ago. Almost all these remittances were from Britain.

4

Public Finances

     ALTHOUGH the approval of the Secretary of State for the Colonies is still required before decisions are made on certain major matters including currency and banking, in other respects the Colony has complete autonomy in financial affairs and the ultimate financial authority is the Legislative Council.

      Hong Kong is financially self-supporting apart from the cost of its external defence (to which, however, a substantial contribution is made), and raises its revenue from local sources to meet the cost of all local works and services. The Colony's Legislative Council is the sole taxing and spending authority. Apart from the Housing Authority, which has a certain measure of autonomy, there are no-financially independent subordinate bodies similar to the local government authorities in the United Kingdom and other Commonwealth territories. The Colony's revenue and expenditure figures therefore represent all the public income and all the public expenditure of the Colony excluding 'below the line' operations covering various funds. Comparative figures for the past five years

are:

Financial Year

(1st April to 31st March)

Revenue $ million

1957-8

584.2

1958-9

629.3

Expenditure $ million

532.7

589.9

Surplus $ million

51.5 39.4

1959-60

1960-1

...

1961-2

Deficit

664.6

709.9

45.3

Surplus

859.2

845.3

13.9

1,030.4

953.2

77.2

There was a small deficit in the first financial year (1946-7) after the war, caused by the legacy of the world conflict, but in each of the next 12 years substantial surpluses were accumulated. Not until the financial year 1959-60 was a further deficit recorded and this has been followed by the further surpluses shown in the table above. The accumulation of these surpluses in the varying economic

PUBLIC FINANCES

55

conditions which the Colony has had to face since the war is a considerable achievement. Perhaps equally noteworthy is the fact that the surpluses have been achieved after charging annually against current revenue all capital expenditure other than a com- paratively small amount financed by borrowing. Some indication of how heavy this capital expenditure has been is shown by the figures for the past three years. In 1959-60 capital expenditure totalled $206 million; in 1960-1 $277 million and in 1961-2 $323 million.

       The principal reason for these results, which appear so favour- able, is that during the 1950's exceptionally rapid increases in population generated internal economic activity which raised the yield of taxation substantially without any significant increase in its rates. Thus revenue was able to expand from $291.7 million in 1950-1 to $664.6 million in 1959-60. The rate of increase was affected by variations in such factors as the economic situation and inflows of capital, but the upward trend was continuous. On the expenditure side there was inevitably a time-lag before Govern- ment could develop the public and social services necessary for the increased population. However, as these services were de- veloped and the rate of their development has gradually accel- erated the margin between recurrent expenditure and recurrent revenue tended to narrow. For example, in 1952-3 recurrent ex- penditure absorbed only 50 per cent of the recurrent revenue but by 1959-60 the figure had risen to 82 per cent and in the latter year the surplus of revenue over expenditure could no longer finance all the capital expenditure. An overall deficit of $45.3 million thus occurred and further and substantial deficits seemed likely. Measures were accordingly taken to control expenditure more closely and to achieve a modest expansion of revenue by increases in various duties and charges and by an additional tax on new private cars. The picture now available suggests, however, that the economic strength and resilience of the Colony was under- estimated, for while recurrent expenditure has continued to expand at approximately the rate expected recurrent revenue has expanded more rapidly. Thus the figure of 82 per cent mentioned above for 1959-60 fell in 1960-1 to 74 per cent (the estimate was 88 per cent) and to 69 per cent (against an estimated 80 per cent) in 1961-2. At the same time capital expenditure, though rising substantially,

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PUBLIC FINANCES

was rather lower than originally forecast, and capital revenue, mainly from land sales, has shown a marked increase.

A comparative statement of recurrent and capital income and expenditure for the years 1958-9 (actual) to 1962-3 (estimated) is included in Appendix II. It will be seen from the 1962-3 figures that it is estimated that revenue will no longer be able to finance all capital expenditure and that the estimated deficit of nearly $164 million arises solely from Government's very heavy pro- gramme for non-recurrent public works. This capital expenditure is mainly for more schools, medical facilities and housing as well as for water supplies, roads and land development schemes. The estimated deficit may prove to be pessimistic but, if not, it is possible that money will have to be raised by borrowing if develop- ment in these fields is not to be curbed in future.

       The Colony's statement of assets and liabilities at 31st March 1962, and analyses of the Colony's revenue and expenditure in the financial years 1960-1 and 1961-2, together with the estimates for 1962-3, are at Appendix II. In 1961-2 the revenue of $1,030 million was $117 million more than the original estimate. All recurrent heads shared in this excess but the largest amounts were in internal revenue ($48 million, including $25 million on earnings and profits tax), Post Office ($19 million), revenue from lands, interests, rents, etc ($12 million, including $8 million from interest). Expenditure for the year was $953 million against the estimate of $1,074 million, a saving of $121 million of which $72 million on public works non-recurrent arose from certain projects not being completed as early as expected.

The statement of assets and liabilities shows that at 31st March 1962 net available public assets were $631 million, of which $138 million was earmarked in a Revenue Equalization Fund as a reserve against future deficits on current account. There was, in addition, a Development Loan Fund of $276 million, used to finance social and economic development projects (see Appendix II) of a self-liquidating nature. The greater part has been used for low-cost housing schemes. At 31st March 1962 outstanding com- mitments from funds allocated exceeded liquid assets of $23 million by $134 million. According to normal Government practice the statement of assets and liabilities excludes the public debt of the Colony from the liabilities. The debt at 31st March 1962 was

PUBLIC FINANCES

57

equivalent to approximately $27 a head of population. Indebted- ness decreased by $3.8 million during the year due mainly to the repayment of $3.2 million of the United Kingdom's interest-free loan of £3 million for the development of Kai Tak Airport. This loan is repayable in 15 annual instalments; the first repayment was made on 1st October 1961. The Rehabilitation Loan, which was raised in 1947-8 to cover part of the cost of post-war reconstruc- tion, is repayable in 1973-8; there is provision for a sinking fund which stood at $18 million on 31st March 1962. Details of public debt, Colonial Development and Welfare schemes and grants are also given in Appendix II.

IMPORT AND EXCISE DUTIES

There is no general tariff and, with the exception of five groups of commodities, imported goods are free of any duty levied for purposes of protection or revenue. The five groups of commodities, either imported into or manufactured in the Colony for local con- sumption, upon which duties are levied under the Dutiable Com- modities Ordinance are alcoholic liquors, tobacco, hydrocarbon oils, table waters and methyl alcohol. Firms wishing to import or sell these commodities must be licensed.

A preferential rate of duty for liquor of Commonwealth origin is at present levied at between 66 per cent and 89 per cent of the rate for non-Commonwealth liquor. Locally-produced beer is allowed a further preferential margin over Commonwealth beer. Rates of duty on certain types of liquor were amended on 28th February 1962, with the result that duty on all types of liquor ranges from $1.60 a gallon on locally brewed beer to $73 a gallon for liqueurs and spirits of non-Commonwealth origin. The rate on Chinese-type wine and liquor is $6.50 a gallon (Common- wealth origin) or $7.50 a gallon (non-Commonwealth origin) plus 26 or 30 cents a gallon for every one per cent by which the alcoholic strength by weight exceeds 25 per cent.

       On 31st March 1962, the duty rate on Chinese prepared tobacco was reduced from $4.90 a pound to $2.50 a pound. As a result, the scale of duties on imported tobacco now ranges from $2.50 a pound for Chinese prepared tobacco to $9 a pound on non-Commonwealth cigars. Preferential rates are granted for

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PUBLIC FINANCES

unmanufactured tobacco of Commonwealth origin and to cigars, cigarettes and pipe tobacco of Commonwealth origin or manu- facture.

Duties on motor spirit and 'other light oils' are $1.50 and 10 cents a gallon respectively. Rates on heavy oils are 50 cents a gallon for diesel oil for public omnibuses, $1 a gallon for diesel oil for other road vehicles and 10 cents a gallon for other heavy oils not elsewhere specified. Hydrocarbon oils used for the bench testing of aircraft engines are exempted from duty. Table waters attract duty at 48 cents a gallon. The duty payable on methyl alcohol after the duty rate was increased on 28th February 1962, is $7.50 a gallon plus 30 cents a gallon for every one per cent by which the alcoholic strength by volume exceeds 25 per cent.

      Toilet preparations and proprietary medicines containing more than two per cent proof spirit are dutiable on the alcoholic content at the rate appropriate to alcoholic liquors. Certain other imports, notably paints, are dutiable by virtue of their hydrocarbon oil

content.

      No duties are levied on exports. Drawback is paid, in certain circumstances, on duty-paid commodities used locally in the manu- facture of goods exported from the Colony.

RATES

       Rates have been levied in the Colony since 1845 when an ordinance was passed to raise an assessed rate on lands, houses and premises 'for the upholding of the requisite Police Force'. The basis of rateable value is the annual letting value of a 'tene- ment', by which is meant any land or building (or part thereof) held or occupied as a distinct or separate tenancy or under licence from the Crown. The valuation list covers the rating areas of Hong Kong Island, Kowloon, New Kowloon and also a part of the New Territories adjacent to the main road from Lai Chi Kok to Castle Peak. In Hong Kong Island, Kowloon and New Kowloon rates are charged, with a few exceptions, at 17 per cent per annum of rateable value. In the New Territories (outside New Kowloon) the charge is 11 per cent. The valuation list is prepared by the Commissioner of Rating and Valuation and is frequently revised to bring it up-to-date. Rates are due quarterly in advance and demand notes are issued by the Accountant General and are

PUBLIC FINANCES

59

      payable at the Treasury. There is provision for a surcharge on any rates in arrears. Revenue from rates has more than doubled over the last five years and trebled over the last eight years. The estimate for 1962-3 is $128,550,000.

       There are few exemptions. Premises used for educational, chari- table and welfare purposes are rated, but most of the bodies run- ning these establishments receive back the amount of rates paid in the form either of direct subventions or contributions toward

rates.

INTERNAL REVENUE

       Tax on Earnings and Profits. Income was first subjected to direct taxation in Hong Kong in 1940 with the introduction of the War Revenue Ordinance. This act was a temporary measure 'for the purpose of raising funds by way of tax on income to assist His Majesty's Government in the prosecution of the war'. The stated object of the imposition disappeared in 1945 and no attempt was made to collect tax after the liberation of the Colony, although the ordinance was not repealed until 1947.

The calls upon the Colony's finances were such that in 1947 a new source of revenue was essential and it was decided to impose a direct tax on incomes as a permanent measure. The Inland Revenue Ordinance, 1947 followed the principle of the old War Revenue Ordinance in charging tax only on income or profits arising in or derived from the Colony. No tax is charged on income or profits arising outside the Colony whether remitted here or not. The ordinance aims at simplicity and to this end charges tax generally at source and at a flat rate rather than in the hands of the eventual recipient on a sliding scale. By so doing the necessity of ascertaining the total income of each individual is avoided.

Incomes and profits are grouped in four categories, each of which is subject to a separate tax, namely, Property Tax, Salaries Tax, Profits Tax and Interest Tax. A fifth and aggregate tax known as Personal Assessment is chargeable upon persons who so elect. The effect of election is that the individual's income otherwise chargeable to the four separate taxes is aggregated in a single sum which is reduced by personal allowances and charged on a sliding scale. The privilege of election is not available to non-residents.

       The standard rate of tax has remained unchanged at 12 per cent since 1950. Business profits, interest received from loans and the

60

PUBLIC FINANCES

interest element of purchased annuities are charged to tax at the full standard rate. However where the profits of a non-corporate business are below $7,000 for any year no tax is charged and tax chargeable on such businesses is restricted to one-half of the amount by which the profits exceed $7,000. Property Tax is charged on the net rateable value of any land or building in the Colony with the exception of those situated in the New Territories and those wholly occupied by the owner as his residence. Up to and including the financial year 1960-1 Property Tax was charged at half the standard rate. An amendment made at the end of March 1961 increased this charge to the full standard rate for properties where the rent is not controlled by reference to the 1941 rentals. Salaries Tax is charged on the total income from employment reduced by allowances which are at present: Allowance for tax- payer, $7,000; allowance for taxpayer's wife, $7,000; allowances for children, from $2,000 for each of the first two children down to $200 for the ninth child. Premiums paid for life insurance are allowed to an amount not exceeding one-sixth of the amount by which the income exceeds $7,000. Tax is charged on a scale which begins at one-fifth of the standard rate on the first $5,000 of the nett income and rises by one-fifth of the standard rate on each subsequent $5,000 until, at $45,000, the maximum of twice the standard rate is reached. The total Salaries Tax payable by any individual is restricted to an amount not exceeding the standard rate on his gross salary.

       It is estimated that the revenue from Earnings and Profits Tax during the financial year 1962-3 will be $205,500,000.

      Estate Duty. This was first introduced in 1931 and generally follows the lines of the tax having the same name in the United Kingdom. Duty is assessed only on that part of an estate which is in Hong Kong, no charge being made in respect of estates out- side the Colony. The rates of duty range from two per cent on estates valued between $50,000 and $100,000 to 40 per cent on estates over $15 million. Yield for the year ending on 30th March 1963 is estimated at $16 million.

Stamp Duty. This is modelled on Stamp Duty in the United Kingdom and fixed duties are charged on various documents. The lowest is 15 cents on bills of lading and receipts and the highest $20 on deeds. Ad valorem duty on various other documents ranges

PUBLIC FINANCES

61

from 15 cents on $500 to $2 on $100. A special duty at the rate of three per cent is payable on the first conveyance of any parcel of land after September 1948. The estimated yield from Stamp Duty during the current financial year is $54 million.

       Entertainments, Dance Halls & Bets and Sweeps Taxes. Sub- stantial revenue accrues from these taxes and it is estimated they will yield $37,700,000 during the current year. Entertainments Tax is charged on the price of admission to places of entertainment. The rate of charge varies with the amount charged for admission and averages approximately 22 per cent. Certain types of entertain- ment given for philanthropic, charitable or educational purposes are taxed at a lower rate or may be exempt. Public Dance Halls Tax is a levy of 10 per cent on all dance halls charges. Bets and Sweeps Tax imposes 7 per cent (five per cent to 31st March 1961) on totalizator receipts and 25 per cent on cash sweepstake receipts.

       Business Registration. Registration of businesses on payment of a fee was first introduced in 1952 by the Business Regulation Ordinance, which was replaced by the Business Registration Ordin- ance in 1959. Every business carried on in the Colony is required to register. There are exemptions from fees for small businesses and certain non-commercial undertakings, but all others pay a fee which is at present $25 per annum. The yield from this source is estimated at $2 million.

5

Currency and Banking

WHEN Hong Kong was founded in 1841 China's currency was based on uncoined silver. The normal unit for foreign trade throughout the Far East was the Spanish or Mexican silver dollar, and by a proclamation of 1842 Mexican or 'other Republican dollars' were declared to be the Colony's legal tender. However the Government kept its accounts in sterling until 1862, and there were several unsuccessful attempts to change the basis of the Colony's money from silver to gold. A mint was set up in 1866 which produced a Hong Kong equivalent of the Mexican dollar, but the new coin was unpopular and the mint closed down two years later. The machinery was sold to establish the first modern mint in Japan.

       An Order of the Queen in Council dated 2nd February 1895 authorized a British trade dollar, equivalent to the Mexican dollar, to be minted in India, and in Hong Kong this gradually replaced the Mexican dollar, although the latter still remained both legal tender and the standard by which other dollars were judged. The sterling or gold value of the dollar varied with the price of silver. This gave Hong Kong a variable exchange relationship with London and the world at large, but a reasonably stable one with China.

         In 1845 the Oriental Bank issued the first banknotes in the Colony, and the Chartered Bank of India, Australia and China, the Chartered Mercantile Bank of India, and the Hongkong and Shanghai Banking Corporation followed suit. Although not legal tender, these notes became more and more the customary means of payment, because of the inconvenience of dealing with large amounts of silver, and by 1890 they had become established by convention as practically the sole medium of exchange apart from subsidiary coinage. An ordinance of 1895 restricted the issue of banknotes to specifically authorized banks-the Hongkong and Shanghai Banking Corporation and the Chartered Bank of India, Australia and China (now the Chartered Bank); by then the

CURRENCY AND BANKING

63

Oriental Bank had closed its doors and the Chartered Mercantile Bank of India had been re-organized. In 1911 this re-organized Mercantile Bank of India (now the Mercantile Bank) joined the list of authorized note-issuing banks.

       The rising price of silver from 1931 onwards forced China to abandon the silver standard in 1935. Hong Kong followed. The Currency Ordinance of that year, later renamed the Exchange Fund Ordinance, set up an exchange fund to which note-issuing banks were obliged to surrender all silver previously held by them against their note issues, in exchange for certificates of indebted- ness. The certificates, which are non-interest-bearing and are issued or redeemed at the discretion of the Financial Secretary, became the legal backing for the notes issued by the note-issuing banks, apart from their fiduciary issues. The silver surrendered by the banks was used to set up an exchange fund, which in practice keeps its assets in sterling and operates in a similar manner to traditional Colonial Currency Boards. The ordinance also made the banknotes legal tender.

        At the same time Government undertook to issue one-dollar currency notes to replace the silver dollars in circulation. In 1960 a dollar coin of cupro-nickel and about the same size as a United Kingdom florin was reintroduced. Stocks are sufficient to replace all the notes and banks have been asked to withdraw all notes received in the course of business, but many notes still remain in circulation. The dollar notes and coins are backed by a Note Security Fund which maintains its assets partly in sterling and partly in Hong Kong dollar bank accounts. The Government also issues subsidiary coins of the value of five cents, 10 cents and 50 cents and notes of the value of one cent. Since 1935 the value of the Hong Kong dollar has been maintained at approximately 1/3d sterling, although the banks may deal with the public at a few points on either side of this rate, both to allow for a profit margin and, to a slight extent, to meet fluctuations in demand and supply.

       The total currency in nominal circulation at 31st December 1962 was:

Bank note issue

Government $1 note issue

Government $1 coin issue

Subsidiary coins and notes

:

$1,044,987,875

$

23,079,487

$

23,198,980

$ 32,410,041

64

CURRENCY AND BANKING

      The Colony has been a part of the sterling area since August 1941. Exchange Control is administered under powers conferred by the Defence (Finance) Regulations, 1940. The system of control is based on that in force in the United Kingdom, with some modi- fications made necessary by the position of Hong Kong as an entrepôt.

BANKING

The Banking Ordinance provides that no institution may engage in banking without obtaining a licence from the Governor in Council and that each bank must publish an annual balance sheet. At the end of 1962, 92 licences had been approved, 46 banks being also authorized to deal in foreign exchange. A list of the latter is given in Appendix III. Many of these banks have branches or correspondents throughout the world and are thus able to offer comprehensive banking facilities. During the year the banks re- organized the clearing system to deal more effectively with the greatly increased volume of work. In this they were assisted by Mr R. F. Chatham, who for many years was the Chief Inspector of the London Clearing House. There are at present 16 full members of the Clearing House who also act as agents for 52 sub-members. Monthly clearings during the year averaged $2,346 million. Banking activities continued to expand. Four new banks were licensed during the year, including a second hire-purchase finance company, while some 20 additional branches of existing banks were opened. The table at Appendix III shows the rapid expansion of banking between December 1955 and December 1962. Although the expansion is exaggerated to a certain extent by the increase in the number of reporting banks, the bias due to this factor is not important as banks are only included in the statistics when their deposits reach a significant amount. During the year consolidated statistics compiled from the quarterly returns submitted by all banks were published in the statistical supplement to the Government Gazette for the first time. At Appendix III is reproduced the table in respect of 31st December 1962. Total deposits had then reached $4,311 million, at the same date loans. and advances to commerce and industry totalled $2,849 million.

The present Banking Ordinance, which was enacted in 1948, was not designed to provide for the supervision of banking operations. In view of the rapidity of the recent expansion, in particular of

CURRENCY AND BANKING

65

deposit accounts, and the relatively low level of liquidity main- tained by some banks with large investments in property and securities, some supervision of banks in the interest of their deposi- tors was recommended by the Banking Advisory Committee. This body, under the chairmanship of the Financial Secretary, is respon- sible to the Governor in Council for the licensing of banks and the general administration of the 1948 ordinance. As a result Mr H. J. Tomkins of the Bank of England was invited to visit the Colony to advise on legislation for the control of banking opera- tions in Hong Kong. His report on the Hong Kong banking system, published in April, contains a full discussion of the situation together with recommendations for a new banking ordinance. The comments of all interested parties on these recommendations were invited and were later considered by the Banking Advisory Com- mittee; drafting instructions have now been given to the Legal Department. One of the major recommendations of the Tomkins Report was the appointment of a Banking Commissioner and this recommendation is being pursued.

6

Industry and Trade

INDUSTRY

     SINCE 1949 the pattern of Hong Kong's economy has changed. Industry, which before the Second World War was of secondary importance to the entrepôt trade, has assumed a dominant role and over three-quarters of the Colony's total exports are now manufactured or processed locally. Hong Kong's first industries were services allied to the development of the port and the earliest was naturally ship-building and repairing. The first locally built vessel, the Celestial of 80 tons, was launched in 1843. Two sugar refineries were established in 1878 and 1882, not so much to satisfy the needs of the then small local population as to meet the requirements of ships' victualling officers. In 1885 a rope factory was started, again primarily to cater for the seafaring trade, and a cement factory was transferred to Hong Kong from Macau in 1899.

      From time to time there were efforts to set up new industries. Some were unsuccessful; spinning mill was started in 1899 but closed down a few years later. Some industries, however, obtained a firm foothold. In 1902 the manufacture of rattanware began and in 1910 the knitting of cotton singlets and vests became established. These, although flourishing, went more or less unnoticed amid the Colony's growing entrepôt activities. The First World War gave some impetus to the development of industry when the Colony was denied various manufactured goods from European sources, and the immediate post-war years also saw some expansion. A weaving factory, operating 30 hand looms, opened in 1922 and was followed five years later by the first flashlight factory.

The Ottawa Agreements of 1932, under which Hong Kong prod- ucts became entitled to Imperial (now Commonwealth) Preference, were the first real encouragement to local industry, enabling manu- facturers to seek wider markets for their goods and attracting new investment. The merchant houses played a substantial part in this

INDUSTRY AND TRADE

67

development. The first years of the Second World War provided an additional stimulus, when locally made military and civilian supplies again partially replaced imports from overseas, and it is estimated that by the end of 1940 there were some 800 factories in the Colony.

       Factory rehabilitation, after almost four years of enemy occupa- tion, was rapid, impelled by an acute shortage of consumer goods throughout war-scarred south-east Asia. The year 1949, when the influx of immigrants from China reached its peak, was a vital one for local industry. Most of the immigrants arrived destitute, but many brought capital and technical skills, both of which found ready employment in Hong Kong.

       The Korean War and the resultant embargo on trade in strategic commodities with China drastically reduced the volume of Hong Kong's commerce. Only industrial expansion could offset the dangers threatening economic stability and provide employment for the Colony's greatly swollen and still growing population. Local industrialists reacted quickly to the new situation and, despite difficulties in obtaining certain raw materials, an increasing volume and range of Hong Kong products from many new and re- invigorated industries began to flow out to world markets.

Today there are 7,305 registered and recorded factories employ- ing 297,897 persons (details are in Appendix I). At the census in 1961, 603,248 persons claimed to be employed in factory type operations, building construction and mining. Most industrialists are Chinese, although there are several important ventures owned and operated by non-Chinese or on a joint basis. Several overseas interests have also entered into licensing arrangements with local firms, authorizing the manufacture of products under internation- ally famous brand names.

Although no special benefits are available to industry by way of profits tax or protective tariffs, the general facility with which industry may be established and conducted in Hong Kong has proved attractive both to local and overseas investors. Apart from a very few revenue-producing duties, the Colony is a free port and Government regulation of trade is kept to a minimum.

The variety of goods produced by local industry is now con- siderable. In general, while the heavier industries such as ship- building and ship-breaking continue to be important, the Colony

68

INDUSTRY AND TRADE

has become best known for the price, quality and range of the products of its light industries. Of importance are cotton piece- goods, cotton yarn, towelling, ready-made garments of all kinds, cotton and woollen knitwear, enamelware, aluminiumware, torches, torch batteries and bulbs, transistor radios, vacuum flasks, plastic- ware including plastic flowers, paints and varnishes, rubber and leather footwear, and rattanware. Among traditional Chinese goods the best known are brocade piecegoods, embroideries and drawn- work, crocheted gloves, carved articles of wood, ivory and jade, and paper novelties.

      There are many factors favouring industrial development in the Colony. They include low taxation, plentiful productive labour, the advantages of a free port, excellent shipping and commercial facilities, and freedom from locally imposed trade restrictions. These, in general, more than compensate for important handicaps such as an absence of raw materials, a scarcity of water and a shortage of land suitable for industrial purposes. While the first cannot be remedied the last two are being vigorously tackled. Extensive action to alleviate the water problem has been, and is being, taken. The opening of a reservoir at Shek Pik on Lantau Island in 1963 will increase the total storage capacity of the Colony's reservoirs by 50 per cent (see chapter 14). To offset the shortage of flat land, Government continues to level hills and use the spoil to reclaim land from the sea. The largest and most advanced of these schemes is at Kwun Tong, an area fronting Kowloon Bay adjacent to urban Kowloon. Between 1955 and the end of 1962, 230 acres were reclaimed at Kwun Tong for industrial use and the full scheme involves the formation of some 514 acres of useful land. Of this, 275 acres will be for industrial use and 239 for commercial and residential purposes. At the end of the year there were over 130 factories operating in the area. Further sites of various sizes are being sold frequently, according to a pro- gramme of sales. The number of workers in the area exceeds 19,700 and represents roughly 6.7 per cent of the total working force in registered and recorded factories and industrial under- takings in the Colony. More than 150,000 persons already live in the growing township and the eventual population is expected to be over 300,000.

INDUSTRY AND TRADE

69

       Several other schemes to provide much needed industrial land are either planned or underway. The largest of these involves the filling of Gin Drinker's Bay at Kwai Chung in the New Territories, where development will be carried out alongside the present in- dustrial centre of Tsuen Wan. The ship-breaking industry and its associated steel rolling plants will shortly be re-established in an area set aside for them in Junk Bay. Leases for five sites totalling over 1,700,000 square feet have already been sold by auction to local ship-breaking and steel rolling concerns.

Chamber of Commerce. The Hong Kong General Chamber of Commerce, founded in 1861, is the oldest chamber in the Colony. There are over 900 members representing all sections of trade and industry, and membership is open to persons of all nationalities with business connexions in Hong Kong. The chamber is a member of the International Chamber of Commerce and the Federation of Commonwealth and British Chambers of Commerce. It has taken an increasing interest in international developments affecting the Colony's trade, such as Britain's application to join the Common Market, and in these and other matters works in close co-operation with the Federation of Hong Kong Industries.

The Hong Kong Junior Chamber of Commerce organized the Seventeenth World Congress of the Junior Chamber International which took place in Hong Kong in November. Over 1,000 delegates and their wives came to the Colony. Other active chambers and associations include the Indian Chamber of Commerce and the Exporters' Association.

The Federation of Hong Kong Industries. Unlike the majority of local industrial associations, which cater mainly for individual trades, the Federation cuts across racial and sectional interests and its membership includes all trades, many nationalities, and enter- prises of all sizes. The possible repercussions for the Colony's industry of Britain joining the Common Market have figured largely in the deliberations of the Federation during the year. The chairman and deputy chairman travelled widely in Britain and Europe explaining Hong Kong's position, and the Federation has worked closely with the Hong Kong General Chamber of Commerce in promoting public relations overseas. It was largely the shadow of the Common Market which prompted the Federation to employ the Economist Intelligence Unit in 1961 to make a

70

INDUSTRY AND TRADE

survey of Hong Kong industry and to recommend lines of develop- ment in the best economic interests of the community. The report, presented in March 1962, is being studied with interest by local industrial and commercial organizations.

An important role of the Federation lies in co-ordinating action by local industry. Activities of this nature during the year included the formation of a freight joint committee to negotiate freight rates with the Shipping Conferences. Beginning in May this year the Federation issued Certificates of Hong Kong Origin to non-mem- bers; previously this service had been confined to members. An inspectorate has been recruited and trained to ensure that the certificates issued are acceptable by international standards. A samples and specifications registry has also been established. The registry seals and retains shipment samples for comparison in the event of a trade dispute, and this has advantages for both manu- facturers and buyers.

The Chinese Manufacturers' Association, established in 1934, has over 1,600 members. They own factories of all sizes in most branches of the Colony's industry, and are mainly Cantonese. The association holds an annual exhibition of Hong Kong products. In addition to those mentioned above, there are a number of other associations whose membership is confined to particular industries. Training for managers and supervisors. The expansion of Hong Kong industry has tended to create organizations quite different from the traditional pattern of a small family business, and this has produced a corresponding need to develop managerial skills at all levels. To meet this need in the upper levels of management the Hong Kong Management Association, which was formed in 1960 under the sponsorship of the Federation of Hong Kong Industries, provides training courses in management studies developed to suit the particular circumstances of Hong Kong. The courses cover general, office, personnel, financial, production and marketing management; they employ such methods of instruction as lecture-discussions, forums and case studies. During the year the association, which is a member of Comité International de l'Organization Scientifique (CIOS) and the Indo-Pacific Council of the Comité International de l'Organization Scientifique (IPCCIOS), invited experts from the Harvard Post-Graduate

INDUSTRY AND TRADE

71

School of Business Administration and from the Urwick Manage- ment Centre to conduct short courses for top level managers.

      The Hong Kong Technical College includes management studies in its full-time diploma courses in building and engineering, and also provides evening courses in management subjects and work study. The Technical College also offers short courses of three or four weeks each on productivity, dealing with such matters as plant layout, the handling of materials, production planning and control, quality control, work study and allied subjects. The courses are intended for persons at middle management level, particularly those engaged in actual production work. The super- visory training section of the Labour Department also offers train- ing in supervisory techniques free of charge to staff of industrial and commercial concerns and to civil servants. The four basic courses offered comprise the internationally recognized programme of training within industry. Firms are invited to nominate mem- bers of their staff for instruction as trainers at the supervisory training centre, and these then return to their own organizations to run courses themselves. The section also offers courses for supervisors of those organizations which do not wish to employ trainers of their own. The scheme is well supported and to date 3,500 persons have been trained in the four programmes either on the employers' premises or at the supervisory training centre of the Labour Department.

HEAVY INDUSTRY

      Shipbuilding and repairing is the oldest of Hong Kong's in- dustries. Following naturally from its development as a trading port, the Colony has become one of the finest ship building and repair centres in the East. Hong Kong shipyards can build ocean- going vessels of over 6,000 tons dead-weight and also construct and install their engines. At the other end of the scale, pleasure craft and utility vessels of all kinds including ocean-going yachts, vehicle and passenger ferries, sloops, cruisers, speed boats of wood and fibre glass, tugs, yawls and steel lighters are regularly produced for local use and for export. The traditional Chinese junk, slightly modified from the basic design in use for many centuries, has also found acceptance abroad as a comfortable and stable pleasure craft.

72

INDUSTRY AND TRADE

      Ship-breaking and steel rolling mills. The ship-breaking industry, though still of major economic importance was not as active as in previous years, having found it necessary to cut back its activi- ties because of a general depression in world metal markets. In spite of this contraction, Hong Kong still maintains its position as one of the leading ship-breaking centres of the world. Among the ships which entered Hong Kong breaking yards during the year were such well known vessels as the Strathnaver (22,270 gross tons), the Canton (16,003 gross tons) and the American aircraft carrier Puget Sound (24,560 gross tons).

       Much of the scrap obtained is used in local rolling mills, which produce an estimated 9,000 tons a month of mild steel reinforcing bars. This represents a large part of the requirements of the Colony's building industry and in addition a considerable quantity of rods and bars is shipped abroad, principally to south-east Asian territories. Several rolling mills produce stainless steel, brass and aluminium sheets and circles, most of which are used locally for the manufacture of consumer goods.

       Other heavy industries. Among other heavy industries in the Colony, one which is increasing in significance is the manufacture of machinery and parts. Built originally for local light industries, Hong Kong made machines are now exported to over 70 countries. Of particular importance are plastic blow moulding and injection moulding machines, presses, seaming and planing machines. Air- craft engineering is another important industry. One large establish- ment provides maintenance and repair facilities for most airlines using Kai Tak Airport as well as for several national air forces. Facilities are available for complete airframe and engine over- haul, and work is received from 38 countries as far afield as Australia and Canada. The Colony also meets much of its require- ments for cement through local manufacture, the raw materials being imported with the exception of some clay and iron ore.

THE TEXTILE INDUSTRY

       The textile and garment industry is the Colony's largest; it is also a dominant feature of Hong Kong's economy. About 123,670 workers, or 42 per cent of the total labour force in registered and recorded factories and industrial undertakings, were employed at the end of the year in the spinning of cotton, silk, rayon and

7,500

VALUE OF HONG KONG'S

IMPORTS AND EXPORTS

(IN MILLION DOLLARS)

7,000

Total Imports

Imports from China

6,500

Total Exports

6,000

5,500

5,000

4,500

4,000

3,500

3,000

the

Exports to China

共圖

2,500

2,000

C PUBLI

1,500

1,000

500

LABRARIE

0

1951 '52

'53

'54

'55

'56

'57

*58

*59

60

'61

'62

7,500

VOLUME OF HONG KONG'S

IMPORTS AND EXPORTS

(IN THOUSAND LONG TONS)

7,000

Total Imports

Imports from China

6,500

Total Exports

Exports to China

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

#

0

1951 '52

'53

'54

'55

'56

'57

'58

'59

'60

'61

'62

INDUSTRY AND TRADE

73

woollen yarns, weaving, knitting, dyeing, printing and finishing of piecegoods, and the manufacture of all types of garments and made-up goods. The industry's exports during the year represented 53 per cent of the Colony's exports of domestic products. In all sectors of the textile industry, the manufacture and processing of cotton goods predominates; wool, silk and artificial fibres take a secondary place.

The cotton spinning mills, operating over 625,000 spindles, are among the most up-to-date in the world and first-class amenities are generally provided for workers. Cotton yarn counts range from 10's to 60's carded and combed in single or multiple threads. Production of all counts in 1962 was estimated at approximately 250 million pounds, the greater part of which was consumed by local weaving establishments.

In the piecegoods weaving section-which increased its capacity during the year to about 19,900 looms-grey cotton drill, canvas, shirtings, striped poplins, ginghams and other bleached and dyed cloth and prints are the main items. Corduroy is also manufac- tured. Production of cotton piecegoods in 1962 was estimated at approximately 510 million square yards. Most of this was exported although, as the quality of locally woven and finished cloth im- proves, there is an increasing tendency for the Colony's garment manufacturers to use local materials. Other products of the Colony's weaving industry are silk and rayon brocade of traditional Chinese design, woollen piecegoods, tapes, military webbing, lace, mosquito netting, cotton open mesh, carpets and rugs.

Development in the dyeing, printing and finishing of cotton textiles continued during the year. Multi-colour screen and roller printing, pre-shrinking by several processes under licence and polymerizing for the production of 'drip-dry' fabrics were under- taken for the local garment industry and for export.

An almost unlimited range and variety of garments are manu- factured in Hong Kong, the most important being shirts. Embroid- ered blouses, underwear and nightwear, silk and brocade house and evening coats have a world-wide popularity in quality markets. Custom and mail order tailoring, principally of men's suits, has rapidly developed in recent years into an important branch of the industry. Suits of excellent cut and quality are exported all over the world. The Colony's knitting mills produce towels, tee-shirts,

74

INDUSTRY AND TRADE

singlets, underwear and nightwear, swimsuits, gloves, sweaters, socks and stockings in cotton, silk, wool, rayon and other fabrics.

COTTON ADVISORY BOARD

The Cotton Advisory Board was formed in July 1961 to advise Government on the problems facing the cotton textile industry and particularly those arising from requests by importing countries for restrictions on the export of cotton textiles from Hong Kong. The terms of office of members of the first board expired on 20th July and His Excellency the Governor appointed a new board for 12 months starting 21st July 1962. The board, under the ex officio chairmanship of the Director of Commerce and Industry, com- prises leading members of the spinning, weaving, dyeing and finishing, and made-up goods sections of the industry, as well as members of the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries and the Chinese Manufac- turers' Association. Members are appointed in their individual capacity and not as representatives of any association.

DIVERSIFICATION

The textile industry still dominates the local industrial scene, but there has been diversification within the industry over recent years. An industry which has shown exceptionally rapid growth in recent years is the manufacture of woollen knitwear. Backed by a wool and worsted spinning industry which now has an annual productive capacity of some 12 million pounds, the industry has seen a phenomenal growth of its exports in recent years. Exports of woollen knitwear in 1962 reached a value of approximately $181 million compared with $91.2 million in 1961, an increase of 98 per cent.

      Other well established industries have similarly undergone in- ternal diversification in product ranges and quality. A striking example is the manufacture of plastics, one of the Colony's largest sources of employment. From very simple beginnings this industry produces a wide range of products including plastic flowers, which have become world famous. The electronics industry, which was established only in the latter part of 1959 when one firm began assembling transistor radios from imported parts, has developed

INDUSTRY AND TRADE

75

equally rapidly during the last 12 months. The industry did not make any real headway until the second half of 1961 when about a dozen firms were operating; there are now 20. As an indication of the growth of this industry, exports of transistor radios in 1961 totalled over 263,000 sets valued at $12,700,000; in 1962 approxi- mately 1,047,000 sets valued at $37 million were exported. Of these, about 579,000 sets valued at $18 million went to the United States and 342,000 sets worth $13 million to Britain. Other industries which have been introduced and which have grown in recent years include the manufacture of air conditioners, plywood, carpets and other furnishings, stainless steel cutlery, electric fans, clocks, pleasure craft, cameras and binoculars.

TRADE

      The value of merchandise imported, exported and re-exported in 1962 amounted to $11,045 million, an increase of nearly 12 per cent over the total for 1961 and the highest annual total ever recorded. Imports and domestic exports rose considerably in value, while by comparison re-exports recorded a moderate increase. Cargo tonnages by all means of transport were 9.5 million tons, as against 8.4 million tons in 1961. The main features of the Colony's trade for the past two years, and a breakdown by countries and by commodities for the years 1960 to 1962, are given in Appendix IV.

Imports in 1962 were valued at $6,657 million, which was 12 per cent higher than the previous year. Although local supplies of agricultural produce and fish are substantial, most of the Colony's foodstuffs have to be imported. Food was thus the prin- cipal import, representing nearly 24 per cent of all imports and being worth $1,609 million, which was an increase of 14 per cent over 1961. The chief items of edible imports were rice, fruits and vegetables, live animals, dairy products, sugar and sugar prepara- tions, pond fish and fish preparations. Other imported consumer goods included medicinal and pharmaceutical products, watches, radios, gramophones, tape recorders, tobacco and alcoholic bever- ages. Of considerable importance were the imports of raw materials and semi-manufactured goods for use in the Colony's industries. Among the principal items were textile yarn and fabrics, raw cotton, base metal and plastic moulding materials. Capital goods

76

INDUSTRY AND TRADE

     such as machinery and transport equipment were also imported, together with mineral fuels and lubricants.

      The sources of imports are determined by proximity, prices, speed of delivery and by traditional trade channels. From China, which is the Colony's principal supplier, came 18 per cent by value of all imports and 36 per cent of all the Colony's food imports. Other imports from China included textile yarn and fabrics. The value of goods imported from China increased by 18 per cent compared with 1961. Imports from Japan, the second largest supplier, also showed a large increase in value compared with 1961. This was mainly the result of a rise in the value of imports of textile goods, which represented 44 per cent of all imports. Other imports from Japan included machinery, base metals, non-metallic mineral manufacturers and paper and paper manufactures. Among other major suppliers, imports from the United States recorded an increase, while those from the United Kingdom remained at about the level of 1961. The principal imports from the United States were raw cotton, machinery, plastic moulding materials, tobacco, fruits and vege- tables, and medicinal and pharmaceutical products. Imports from the United Kingdom consisted mainly of machinery, transport equipment, textiles and base metals. The chief continental area of supply was Asia, from which came 49 per cent of all imports by value.

      The value of the Colony's domestic exports reached the record total of $3,317 million in 1962. This was an increase of 13 per cent over the previous year and represented nearly 76 per cent of total exports by value. Domestic exports were concentrated heavily on the products of the textile and garment manufacturing industries, which accounted for 52 per cent by value in 1962. Exports of the Colony's second largest export industry, the manu- facture of plastic goods (artificial flowers, toys and dolls and buttons) made up a further 11 per cent. The balance included a wide range of light industrial products. The direction of the export trade is influenced by many factors, among the more im- portant being the advantages of Commonwealth Preference and the acceptability of 'low cost' imports in fully developed countries. The volume depends in many cases upon the extent to which trade promotion activities and negotiation can find new outlets and

INDUSTRY AND TRADE

77

overcome such barriers as exchange controls, quota restrictions and tariffs.

In 1962, the United States remained the largest market for the Colony's domestic products, taking 26 per cent by value. Pur- chases by the United States increased by nearly $200 million or 29 per cent; this was largely the result of a significant rise in the value of clothing sent to that market. Other important purchasers of Hong Kong goods were the United Kingdom, Malaya, Western Germany, Australia and Canada, but domestic exports were also sent to practically every country in the world. Commonwealth countries took 46 per cent of domestic exports by value, while America took 29 per cent.

An indication of the size of the entrepôt trade may be gained from the value of re-exports, which totalled $1,070 million. This represented an increase of eight per cent compared with 1961. Although re-exports to China remained considerable, being valued at $77 million, it was only the third largest purchaser of re- exports. The first and second were Malaya and Japan respectively. In recent years the entrepôt trade has been generally in the ex- change of products of Asian countries. The chief commodities entering the re-export trade were textiles, gems and jewellery, animal and vegetable crude materials, fruits and vegetables, medicinal and pharmaceutical products and machinery.

INTERNATIONAL TRADING PROBLEMS

      Hong Kong's domestic exports in 1962 achieved a higher rate of expansion than in the previous year. This success was the more remarkable because trade during the year, particularly in cotton textiles, was carried on in an atmosphere of tension. This was occasioned by the operation of the Short Term Cotton Textile Arrangement and its application by the United States of America to 30 of the 64 categories of textiles, and by Canada to four categories. Further uncertainty was felt over the Colony's future trade as Britain moved toward joining the European Common Market.

      The Hong Kong textile and garment industries have gained for themselves a reputation as being among the most efficient and

78

INDUSTRY AND TRADE

competitive in the world. For this reason, and because a very high proportion of their products are exported, they have figured largely in the various discussions held during the last two years on international trade in cotton textiles, despite the comparatively small size of the spinning and weaving sections.

      In January 1962 the Director of Commerce and Industry and the Director of the Hong Kong Government Office in London were members of the British delegation which attended a conference held in Geneva to consider the draft for a Long Term Arrange- ment covering international trade in cotton textiles. Three repre- sentatives of the cotton textile industry accompanied the Hong Kong delegates as advisers. The draft arrangement drawn up at the conference was directed to ensure the stability and orderly development of the cotton textile trade over the five-year period from 1st October 1962.

As with the Short Term Arrangement, on which it was based, the terms provided for the protection of the domestic textile in- dustries of importing countries which were threatened with dis- ruption. This protection was to be achieved by granting importing countries the right to call for restraint on exports from exporting countries at any time during the life of the Arrangement at the level obtaining in the first 12 of the 15 months preceding the month in which the request for restraint was made. Some provision for expansion of trade was, however, made by ensuring that, from the second year, an annual increase in imports of not less than five per cent above the level for the base year should be allowed if restraint remains in force for longer than 12 months. A special provision requires that countries still maintaining import restric- tions contrary to the GATT should allow textile imports on a more liberal basis.

A further meeting of the Cotton Textile Committee of the GATT was held in Geneva in September and gave formal approval to the final draft. The Director of Commerce and Industry repre- sented the Colony on the British delegation, advised by two mem- bers of the Cotton Advisory Board. At the request of the Hong Kong Government, Her Majesty's Government in the United Kingdom formally accepted the Long Term Cotton Textile Arrangement on behalf of the Colony, and it came into force on 1st October.

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      In America, at the beginning of the year, the United States Tariff Commission began its investigation into the advisability of imposing an equalization fee on the raw cotton content in all cotton textile imports to offset the subsidy granted to American growers to promote export sales of raw cotton. Hong Kong's interests were watched over by a prominent firm of attorneys in the United States briefed by the Hong Kong General Chamber of Commerce and the Federation of Hong Kong Industries to offer evidence on their behalf. The Deputy Director of Commerce and Industry, accompanied by a representative of the Hong Kong Cotton Spinners' Association and one from the Federation of Hong Kong Weavers, flew to Washington in February to attend the hear- ings and act as advisers to the attorneys. In the event, the Tariff Commission advised in September against the adoption of an equalization fee.

      Meanwhile fears lest the equalization fee might be imposed had caused United States buyers to speed up their import programme toward the end of 1961. They requested that deliveries of piece- goods and, to some extent, of garments should be brought for- ward and heavy shipments took place in the early months of the year. On 2nd March the United States Government, without notice and without providing detailed evidence of disruption, requested the Colony to restrain with immediate effect exports under eight of the categories of textiles listed in the Short Term Arrangement. Immediate suspension of exports would have created serious hardship and dislocation and to mitigate this the Hong Kong Government decided to permit shipments up to the end of March. The US Customs then banned the entry of goods in these categories for consumption in the United States, shipped after 2nd March. A further request for restraint on seven additional categories followed on 19th March. As this action seemed likely to result in widespread disruption of the local textile industry with financial loss and the redundancy of several thousand workers, and as it seemed from the Colony's viewpoint to be at variance with the Short Term Arrangement, the Director of Commerce and Industry, accompanied by an Assistant Director, flew to Washington for talks with the United States Government on 23rd March.

      The objects of this visit were to clarify the situation, to discuss the restraint levels requested and to try to find mutually acceptable

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     procedures for the control of textile exports from the Colony to the United States. While some progress was made, protracted negotiations on the details of the operation of the Short Term Arrangement continued until its expiry on 30th September. Addi- tional requests by the United States Government for restraint received after March resulted in exports under 30 categories listed in the Short Term Arrangement being under restraint by the time it expired.

      The original American request for restraint had followed a similar request from the Canadian Government in February in respect of three categories of garments. Hong Kong's representa- tives at the March discussions in Washington therefore went on to Ottawa for discussions on similar lines with the Canadian authorities. Since Canada's imports from the Colony in the three categories in question had already exceeded the level of restraint requested, exports were suspended. Canada made one more request for restraint before the end of the Short Term Arrangement.

     Hong Kong's experiences in the working of the Short Term Arrangement were the subject of a paper presented by the United Kingdom delegation to the International Cotton Textiles Committee at Geneva when it met in September to consider the final draft of the Long Term Arrangement. But the final text contained inade- quate safeguards against the possibility of serious disruption arising in exporting countries and it became clear that bilateral negotia- tions within the framework and spirit of the arrangement would be the only way of safeguarding the Colony's interests in this respect.

Informal and preliminary negotiations with the United States authorities were opened in September with a view to avoiding any further disorder in the Colony's textile trade and to reaching a bilateral understanding. These negotiations were somewhat pro- tracted but early in December agreement was finally achieved. The Cotton Advisory Board was consulted at various stages during these discussions. The agreement related only to the first year of the Long Term Arrangement and was solely in respect of the 30 cotton textile categories which had been restrained during the period of the Short Term Arrangement. For its part, Hong Kong undertook to restrain exports of these 30 categories at the agreed levels determined during the period of that arrangement. In return,

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the United States Government undertook to accept for consump- tion in the United States the importation of all products so ex- ported up to those same levels and not to any lower level.

      In addition, Hong Kong voluntarily and unilaterally undertook to space export shipments to the United States of these 30 categories during the period 1st October 1962 to 30th September 1963, i.e. the first year of the Long Term Arrangement. This understanding was outside the scope of the International Cotton Textile Arrangement and independent of the agreement on restraint levels referred to above.

      The voluntary undertaking regarding the spacing of export ship- ments was promulgated to the trade on 5th November. No spacing arrangements were applied to any of the 34 categories which had not been the subject of restraint requests during the period of the Short Term Arrangement. It was, however, agreed that regular information in regard to the actual and potential volume of exports of these 34 categories should be given to the American authorities.

      On 5th September 1962, the Norwegian Government made a formal request for restraint on the Colony's exports of ready-made cotton textile products and asked that negotiations should start as soon as possible. The request purported to be under the Geneva Short Term Arrangement, which was then about to expire, but it failed to specify the categories of textiles involved, or the level of restraint desired, nor did it offer any evidence of market dis- ruption. The Director of Commerce and Industry discussed the request with Norwegian representatives at a meeting of the GATT Cotton Textiles Committee in Geneva and again in London during September. On the latter occasion the Norwegians announced that with effect from 20th September their country had imposed restrictions on the import of cotton shirts and nightwear from Hong Kong, and was seeking a cut-back far beyond the minimum levels appropriate to either the Short or the Long Term Arrangement.

      It subsequently became clear that the request was based on the share of the Norwegian market which Hong Kong had achieved in these products, a concept which finds no place in the Arrange- ments. Her Majesty's Government lodged a protest on the Colony's

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behalf and on 8th October a Norwegian delegation arrived in Hong Kong for discussions. They made it clear that their concern was only with woven cotton shirts for work, sport and leisure, and woven cotton nightwear.

Protracted negotiations, during which the Cotton Advisory Board was consulted on several occasions, resulted in agreement in prin- ciple. Hong Kong recognized the exceptional circumstances arising from the fact that its share of the Norwegian market in shirts and nightwear had increased to 35 per cent and 48 per cent respectively in 1961. Accordingly the Hong Kong Government agreed to restrict exports of these two products during the period of the Long Term Arrangement in return for certain undertakings by Norway. The result of the discussions in Hong Kong was embodied in a draft memorandum of agreement which the British Embassy in Oslo handed to the Norwegian Government in December. At the end of the year it was not known whether the text was acceptable to the Norwegian authorities.

On 17th September, Dr Daniel, deputy head of the Department of Foreign Relations in the West German Ministry of Economics, visited Hong Kong, and called at the Commerce and Industry Department. He indicated that his Government sought the Colony's agreement to restrain exports of woven cotton shirts to West Germany at a level of 700,000 dozen. The West German Govern- ment had evidently contemplated the application of this level of restraint to the period of the Short Term Arrangement (which had by then barely a fortnight to run), or to the calendar year 1962 which would be appropriate neither to the Short nor the Long Term Arrangement. The department suggested to Dr Daniel that any request for restraint should relate to the first year of the Long Term Arrangement and should be supported by evidence of disruption.

Early in October some confusion and uncertainty arose among traders when it became known that the West German Government had introduced a system of import licensing for cotton 'underwear' of Hong Kong origin. It soon transpired that licences were being granted freely and that this was purely an internal measure to enable the German Government to watch the flow of trade. On

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      25th October the British Embassy in Bonn received a verbal note formally requesting restraint at a level of 700,000 dozen woven cotton shirts during the first year of the Long Term Arrangement, starting 1st October 1962. The figure was considerably higher than declared exports during the base period appropriate under the Arrangement and the Hong Kong Government, on the advice of the Cotton Advisory Board, agreed to restrict exports to the maximum requested by the West German Government, subject to certain conditions and reservations.

The local textile industry continued to show sympathy with Lancashire and to be prepared to limit cotton textile exports to the United Kingdom. On the advice of the Cotton Advisory Board, Government offered to limit shipments of cotton piecegoods and made-ups to the United Kingdom for a further period of three years beginning 1st January 1963 at the annual level of 185 million square yards in force for 1962. In addition, Hong Kong offered to restrict exports of cotton yarn to the quantity shipped in 1961, i.e. 6,300,000 pounds, and to introduce this limitation in 1962. Both offers were conditional on India and Pakistan agreeing to similar limitations. The United Kingdom Government accepted the offers in October. At the end of the year, efforts were being made to establish a formula for calculating supplementary quotas for cotton yarn on the basis of the existing formula for piecegoods. The latter did not, in the event, give rise to any supplementary quotas during 1962.

      During the year the Colony also experienced textile difficulties of a different kind as a result of a steep rise in the imports of worsted hosiery yarn from Japan. The rise followed a sharp drop in Japanese prices, and imports by the end of May had reached the figure of two million pounds as against the voluntary annual quota of 1,600,000 pounds agreed to by the Japanese industry in 1960. Local consumption had increased greatly since then, follow- ing the switch by Hong Kong manufacturers from knitting gloves to sweaters and other outerwear, which resulted in a rapid increase in imports. After discussions between the local spinners and the Japanese industry, Japan agreed to introduce an annual quota on worsted hosiery yarn of three million pounds from 1st September.

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      The successful development of one of the Colony's new in- dustries the part manufacture and assembly of transistor radios -led to some further difficulties in trade with Japan during the year. On 25th May the Japanese Government, without prior notification, imposed a ban on the export of transistors and diodes to Hong Kong. The reason for this action was stated to be that the rapid increase in the Colony's exports of transistor radios to the United States might lead the United States Government to take action to restrain imports so as to prevent possible disruption of the American market. This would affect Japanese radio exports to that country and nullify the effects of Japanese voluntary restraint. It was maintained in Hong Kong that there was no evidence that imports were affecting the American market as claimed and that the unilateral action taken by Japan was mainly due to increased competition from the Hong Kong industry.

      The Japanese Government was informed that a serious view was taken in Hong Kong of the lack of prior consultation on a matter which Japan knew must affect an important and developing local industry. The Japanese Government for its part made it clear that the ban would be lifted if similar restraint to that of Japan were exercised by Hong Kong, at a level to be agreed in bilateral dis- cussions. It was not possible to accede to this request.

      On 21st July, Japan announced that the ban was to be partially lifted on condition that the transistors exported would not be used in sets exported to North America. Meanwhile local manufacturers had been looking for, and finding, alternative sources of supply, principally in America and Britain. It appears that the modified ban proved unenforceable, and on 20th September the Japanese Government announced the substitution for the ban of a general quota of approximately 600,000 transistors a month for the re- mainder of 1962. This quantity proved sufficient for the Colony's needs during the period for exports of radios to all territories.

Britain's negotiations with members of the European Economic Community were closely followed throughout the year. It was generally expected in Hong Kong that Britain would be admitted to full membership of the Community and that this would have profound effects on the system of Commonwealth Preference and

Early in May, without warning, large numbers of people began entering Hong Kong from China. Most of them gathered on the Chinese side of the border fence (above) waiting for nightfall before attempting to cross. Some, however, thinking themselves unobserved, crossed in broad daylight (below). In the first 11 days of May, nearly 10,000 were apprehended.

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As the flood of immigrants continued all available police were moved to the border area to apprehend them and return them to China. In a policy speech later the Colonial Secretary was to state: 'Nothing could wreck both our plans and our achievements more rapidly or certainly than a further flood of immigrants.' Kindness was the keynote of the operation. Immigrants were taken first to a camp at Fanling (left) where they were given a meal (above). Later they were returned by train to the border at Lo Wu (below). There were many children among the immigrants.

   At the railway station at Lo Wu the immigrants awaited their turn to cross the bridge over the Shum Chun River back into China. By the middle of May, 25,000 had been apprehended and returned, and this number was to be more than doubled before the influx of immigrants finally petered

out toward the end of the month.

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thereby on an important section of Hong Kong's export trade which exceeds one-third of the whole.

      During the first phase of the negotiations in Brussels between Britain and the Six, which ended on 5th August, it became clear that the Six were not prepared to contemplate association for Hong Kong under the Treaty of Rome or to make other arrange- ments which would preserve duty free entry into the United Kingdom for Hong Kong products. So far as association was con- cerned, the Six maintained that the economic position in Hong Kong was quite different from that of the States for which associa- tion had been devised. They also made it clear in the negotiations generally that they attached importance to any arrangements to help Commonwealth countries in the field of industrial products being so designed that they included from the beginning some recognition of the common tariff as the essential feature of the Community Customs Union. No further formal negotiations con- cerning Hong Kong took place during this phase, but at the ministerial meeting which ended on 5th August it was agreed that member States should work out with HM Government before Britain's entry into the Community appropriate measures for Hong Kong in the field of trade relations. In September the Financial Secretary attended the Commonwealth Prime Ministers' Conference in London, at which the terms of Britain's accession to the Com- munity were the main subject under discussion.

       Early in October a delegation of six unofficial members from the Executive and Legislative Councils met in London to discuss Hong Kong's problems with the Secretary of State for the Colonies, Mr Duncan Sandys, and the Lord Privy Seal. The British Ministers took note of the points raised and gave an assurance that they would bear them in mind in the course of further negotiations in Brussels. Several members of the delegation subsequently held talks on the Continent with senior officials and leading industrialists of the Common Market countries.

In November the Financial Secretary attended further meetings in Brussels when the question of Hong Kong was again discussed. By the end of the year, however, the Six had not determined a negotiating position in respect of Hong Kong and it was not

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possible at that stage to say what detailed arrangements would be made.

Trade with the six Common Market countries during the year continued to reflect to some extent the levelling up or down of individual tariffs as they moved toward the Common External Tariff. France maintained its policy of refusing liberalization to Hong Kong products and, although quotas were increased, their total value was still too small to encourage development. Trade with countries in the European Free Trade Association was stable, recording only slight increases both in imports and exports.

Another matter of great importance to Hong Kong was the negotiations between the British and Japanese Governments to con- clude a treaty of commerce and navigation. It was plain from the outset that an important issue would be the disinvocation by the United Kingdom of Article XXXV of the GATT and the sub- sequent removal of restrictions on the entry of Japanese goods into Britain. The competition with which Hong Kong would in this event be faced could seriously damage the Colony's export trade to Britain at a time when Hong Kong's trade with that country might be in difficulties as a result of alterations in the structure of Commonwealth Preference. The importance of the issue to the Colony and the problems it presented were made plain to the British Government on various occasions, and early in August the Financial Secretary discussed Hong Kong's position with the British negotiators in Tokyo and the Japanese Ministry of Foreign Affairs. The treaty and protocols, which include some safeguards of value to Hong Kong, were signed in London on 14th November and ratification is expected to follow by the spring of 1963. The treaty does not automatically apply to Hong Kong although there is provision for extending it to cover the Colony, with or without modifications.

Negotiations were conducted with the Government of the Federation of Rhodesia and Nyasaland to secure compensation for discrimination against Hong Kong introduced when the Federal tariffs were constructed in 1955. At that time 13 items of manu- factured goods, representing 85 per cent of Hong Kong's exports to the Federation, were withdrawn from the list of goods entitled

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to preferential rates of duty if imported from dependent Common- wealth territories. The Federation obtained the necessary waiver, in a qualified form, of the rule against the creation of new pref- erences from the contracting parties to GATT in November 1960. This meant that preference could to some extent be restored to the Colony, but subsequent negotiations failed to produce agreement.

      A delegation comprising the Under Secretaries of the Federation's Ministries of Economic Affairs, Commerce and Industry and Agriculture, visited Hong Kong at the end of April for further discussions. Provisional agreement was reached on the main matters under dispute and as a first step the Federal Government announced in September an alteration to the definition of the country content required for piecegoods claiming preference. Instead of a single country content varying between 30 per cent and 50 per cent, a Government certificate of origin confirming that the material had been spun, woven and finished in Hong Kong would enable piecegoods of less than 100 per cent cotton to enter the Federation at preferential rates. Before preference could be restored on the other items in question, a further approach to the GATT was considered necessary, and this was made at the session of the contracting parties in October. A number of countries which considered themselves affected by the proposal asked the Rhodesian Government for consultations and these had not been completed by the end of the year.

      The year saw the completion of the Dillon round of negotiations in the GATT for tariff changes and the Colony was represented at the session of the contracting parties at Geneva in October. However, restrictions on trade resulting from higher tariff walls erected by overseas countries to protect domestic industries again exceeded measures for liberalization.

      The South African Government increased import duties on plastic household articles, electrical apparatus, umbrellas, imitation jewellery and fabrics of man-made fibres and, toward the end of the year, was investigating applications for higher protective duties on cotton threads, toys and brassieres. The Federation of Nigeria raised its tariffs on a very wide range of the Colony's

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principal exports, while in Australia temporary additional duties were imposed on handkerchiefs, towels and towelling, and at the end of the year tariff investigations were pending on knitted outer- wear, cotton sheetings, pillowcases, electric lamps and bulbs. Ceylon increased its import duties on a number of items, and increased the number of items subject to individual import licences. In June, Canada announced additional surcharges on the import of a wide range of commodities, several of which affect Hong Kong's trade. The rates of surcharge, varying between 15 per cent, 10 per cent and five per cent ad valorem, are determined by an assessment of luxury value and availability from domestic industry.

On the positive side, the United States implemented bilateral agreements made in March with contracting parties to the GATT, to reduce tariffs on a wide range of consumer goods. Items of interest to Hong Kong include rattan furniture, hair pins, padlocks, lanterns, enamelware, torch bulbs, glassware, sauces, preserved ginger, knitted cotton underwear, terry-woven towels, floor-cover- ings, hats of synthetic fibres, beaded handbags, plastic flowers, jewellery and handkerchiefs. In a phased reduction of the tariffs, the first stage became effective on 1st July, when import duties on most of these items fell by one per cent to two per cent ad valorem. On 18th October, Australia removed most of her remain- ing import licensing controls, leaving only a few commodities subject to quantitative restriction.

      Delegations from the Colony attended the ECAFE intra-regional trade promotion talks, the fifth session of the Committee on Trade in January and the plenary session of the commission in March.

TRADE PROMOTION

      The Trade and Industry Advisory Board, the members of which are representative of the Colony's various industrial and com- mercial interests, advises the Director of Commerce and Industry on matters concerning trade. With the board's advice, Government has adopted a policy of concentrating trade promotion in areas where the Colony's trading relationships are relatively undeveloped. Thus by opening up new markets it is hoped to lessen the present dependence of Hong Kong on its export trade with the United

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     Kingdom and the United States which at present between them take over 40 per cent of the Colony's domestic exports. With this in mind Government undertook promotional activities in West Africa and the Middle East during the year and made plans for promotion in, among other areas, East and Central Africa in 1963.

       The Nigerian International Trade Fair, held in Lagos from 27th October to 18th November, offered an opportunity to exhibit Hong Kong products in West Africa for the first time. The Colony's stand of 2,000 square feet displayed a wide selection of goods carefully selected for the West African market and proved to be one of the most popular features of the fair. A delegation of 14 led by Mr Cha Chi-ming, a member of the Trade and Industry Advisory Board, recorded 1,078 inquiries covering a wide variety of Hong Kong manufactures. Two months before Hong Kong's participation in this fair, Government acted on the advice of the British Embassy in Lomé, the capital of Togo, and sent an officer of the Commerce and Industry Department to investigate the opportunities for developing a market there for Hong Kong products.

Following an exploratory visit by an officer of the Commerce and Industry Department toward the end of 1961, Government organized the despatch of a trade mission to tour 11 Middle Eastern countries during January 1963. In order to cover the area effectively the mission, consisting of two officials and five business- men, was organized in two groups with different itineraries. Both groups left Hong Kong on 27th December.

Trade promotion at home received attention during the year in the form of a permanent display centre of Hong Kong products which His Excellency the Governor opened on 24th October. Situated on the second floor of the High Block of the City Hall, the centre provides facilities for the display of some 2,500 items of local manufacture, and is in effect a 'shop window' designed to stimulate the interest of business and tourist visitors in the growing variety of Hong Kong merchandise. By changing part of the display monthly it is possible to afford all sections of industry the chance to show their products.

       The trade development branch of the Commerce and Industry Department is responsible for organizing the Colony's official

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trade promotion activities, answering trade inquiries and arranging for the reception of overseas trade missions and business visitors. During the year Government-sponsored trade missions from Afghanistan, Belgium, Finland, Italy, the Republic of Korea, Sudan and Tanganyika visited the Colony, in addition to several un- official missions and a large number of individual businessmen and foreign Government officials.

The branch also publishes and distributes the annual Commerce, Industry and Finance Directory, and the monthly Trade Bulletin. The Directory is a comprehensive guide to Hong Kong business in its economic and administrative setting; the 1962 edition was published in July. The Trade Bulletin is a general guide to Hong Kong's products in magazine form and each month features different aspects of the commercial and industrial scene. Both these publications are illustrated in colour and are distributed free to overseas businessmen.

      The need has been increasingly felt in the Colony for more widespread commercial public relations overseas, of a kind which could best be carried out by commercial and industrial associations. To meet this need Government agreed to a subvention of $1,600,000 a year for two years to the Hong Kong General Chamber of Com- merce and the Federation of Hong Kong Industries. This sub- vention was double the sum expected to be derived from an increase in the stamp duty on export and import declarations. At the same time a committee to co-ordinate commercial public relations for the Colony was established, with members from Government and interested associations.

Statistics. Every month the statistical branch of the Commerce and Industry Department publishes 'commodity by country' statis- tics of the quantity and value of all goods imported, exported and re-exported. These are classified in accordance with the Hong Kong imports and exports classification list, which is based on the United Nations standard international trade classification. 'Country by commodity' statistics are also tabulated and are available in the department, but are not published. The trade statistics are compiled on punched card machinery from declarations which importers and exporters are required by law to file with the department.

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The year was the first in which the Commerce and Industry Department programme for compiling quarterly statistics of in- dustrial production was in continuous operation. Experience gained from this and an earlier pilot survey of the textile industry has resulted in several modifications of the scheme in order to increase the percentage response which, while reasonable having regard to its voluntary nature, is not yet high enough in some sections to allow for projections to cover the whole of the Colony's industry. Nevertheless, the information so far obtained has already proved of value in international discussions.

In October, Government announced two major projects in the field of economic statistics. Mr E. R. Chang, who arrived in Hong Kong from the West Indies on a Government fellowship at the University of Hong Kong, started work on a national income survey of the Colony which will take two years to complete; the statistical branch of the Commerce and Industry Department began a house- hold budgetary survey.

TRADE CONTROL

Import and export licensing formalities are kept to a minimum and there were no significant changes in the few existing regula- tions during the year. Licences are required only for materials of a strategic nature and for a few items on which it is necessary to retain control for health, foreign exchange and other such reasons. The majority of export licences are required for exchange control purposes. The Commerce and Industry Department takes pride in the speed with which applications for import and export licences are handled, a licence normally being ready for collection a few hours after application has been made.

The Hong Kong Government is responsible for the legal and administrative arrangements required to implement the undertaking to limit exports of a wide range of cotton textiles to Britain and ensures, by means of a system of export licensing, that exports do not exceed the agreed quantities. Quotas allocated to individual firms are kept under constant review in order to ensure full utiliza- tion of the permitted yardage. Arrangements were made toward the end of the year to allocate quotas under the new undertaking which is effective for a period of three years from 1st January 1963.

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The Short Term Arrangement for trade in cotton textiles sponsored by the GATT, which came into force on 1st October 1961, gave rise to requests from Canada and America for restraint on the Colony's exports of certain categories of goods to these countries in February and March 1962. After accepting these requests the Commerce and Industry Department enforced the controls necessary by means of export licences and, where advis- able, the allocation of quotas. Similar arrangements were in hand at the end of the year to control exports of certain cotton textiles to these countries and also to West Germany and Norway under the Long Term Arrangement which came into effect on 1st October 1962 (details of the requests made under the Short and Long Term Arrangements are given earlier in this chapter).

The Cotton Advisory Board advised Government on the content and application of the undertaking to Britain, and on the imple- mentation of the Short and Long Term Arrangements.

DOCUMENTATION OF ORIGIN

      With the growth in the export of Hong Kong products, the certification of origin of locally manufactured goods has become increasingly important. The Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Indian Chamber of Commerce, the Chinese Manufacturers' Association and the Chinese General Chamber of Commerce issue certificates of Hong Kong origin which are acceptable in varying degrees to overseas authorities. Some of these associations also issue certifi- cates of other than Hong Kong origin in respect of goods entering the entrepôt trade.

      Many overseas authorities, however, continue to require im- ports of Hong Kong products to be covered by certificates of origin issued by the Commerce and Industry Department. Since Hong Kong has practically no raw materials, the origin of goods manu- factured by local factories is established by the work carried out in processing imported materials or transforming them into entirely new products. During 1962 the Commerce and Industry Depart- ment, by a system of factory registration and inspection, continued to ensure that the goods certified were in fact entitled to claim Hong Kong origin.

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      The department also issued Commonwealth Preference certifi- cates and forms E120 to enable Hong Kong products to claim preferential rates of duty on entry into the United Kingdom and those Commonwealth territories which grant preference to Hong Kong. Commonwealth Preference certificates indicate the Common- wealth content in the goods covered and are issued against cost or stock statements prepared by public accountants approved for the purpose. For exports to the United Kingdom claiming pref- erence, approved public accountants prepare forms E120 based on cost or stock statements submitted direct to HM Customs and Excise, London. The forms must be presented to the department for countersigning before they become acceptable to the United Kingdom Customs authorities.

      The co-operation and liaison established with overseas customs authorities continued during 1962 and proved to be beneficial to both the promotion and control of exports under certificates of origin of all types. During the year exports of goods certified by the Commerce and Industry Department to be of Hong Kong origin were valued at $2,225.3 million. Exports to Commonwealth territories, including Britain, covered by Commonwealth Preference certificates were valued at $882.87 million.

      The Foreign Assets Control Regulations of the United States Treasury Department prohibit the importation from Hong Kong of a wide range of goods which are presumed by American law to originate in the Chinese People's Republic or in North Korea, unless evidence is produced to the contrary. The department in- troduced a number of new or amended procedures to produce this evidence in 1962. During the year, presumptive goods valued at $498.13 million were exported to the United States and its depend- encies under comprehensive certificates of origin issued solely for this purpose.

THE PREVENTIVE SERVICE

      The preventive service is the uniformed and disciplined branch of the Commerce and Industry Department, with powers similar to those normally exercised by a customs and excise service for the protection of revenue from dutiable commodities. There are five dutiable commodities in Hong Kong (see chapter 4). The

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     service is also responsible for enforcing trade controls and inspect- ing factories and goods in connexion with the export of Hong Kong products under certificates of origin and Commonwealth Preference certificates. The chief preventive officer, responsible to the Director of Commerce and Industry, commands a force of three gazetted officers, 208 inspectors and 335 rank and file.

The general organization of the preventive service remained un- changed during the year, the duties being divided between eight sections training, excise, industry, marine, land, New Territories, special (anti-narcotics) and headquarters. Each section is under the charge of a senior revenue inspector.

      The service operates a fleet of nine launches, of which two are deep sea vessels capable of patrolling outside the sheltered waters of the Colony in rough weather. Three new fast inter- mediate patrol vessels were delivered during the year to replace older and slower craft. In September, six launches together with crews were detached for anti-illegal immigration patrols under overall police control. At the end of the year the vessels were still engaged on these activities (see Immigration, chapter 13).

      Officers of the service searched 1,153 ocean-going vessels and 16,324 small craft inside and outside harbour limits. The nine launches patrolled for a total of 12,633 hours during the year. A total of 610 aircraft were inspected and 17,866 freight packages examined, of which 1,209 were detained for payment of duty. Land patrol vehicles linked to headquarters by radio telephone increased their activities during the year and more seizures of smuggled tobacco and illicit stills were made.

The service also plays an important part in the suppression of drug trafficking. A guard of preventive service officers goes aboard each vessel arriving at the immigration anchorage from ports from which drugs are suspected to be smuggled. The guard remains on board while the vessel is in Colony waters, to prevent drugs being smuggled ashore. Officers frequently search these ships and it was as a result of such a search that the largest single seizure of 1962 (35 pounds of morphine and 268 pounds of opium) was made in a rope locker. Another large seizure of 44 pounds of morphine was discovered concealed in a cargo of incense powder. A total of 618 ships were guarded throughout their stay

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in harbour and 56 seizures of narcotics were made during the year. The preventive service took action in 136 cases of infringement of the Merchandise Marks Ordinance. Articles seized included rubber slippers, health salts, shirts, woollen cardigans and gripe water. In all cases the articles concerned were confiscated by the

courts.

OVERSEAS REPRESENTATION

      There is a Hong Kong Government Office in London which moved during the year to larger premises at 54 Pall Mall, SW1. The Hong Kong Government Trade Representative in Australia has his office at Kembla Building, Margaret Street, Sydney.

      Among Commonwealth countries, India is represented in Hong Kong by a Commissioner, and Britain, Australia, Canada, New Zealand and Pakistan by Trade Commissioners. Consulates- General are maintained by Argentina, Belgium, Brazil, Cambodia, Cuba, the Dominican Republic, France, Germany, Indonesia, Italy, Japan, Korea, the Netherlands, Norway, Panama, the Philippines, Portugal, Switzerland, Thailand, the United Arab Republic and the United States. Consulates are maintained by Laos, Sweden, Uraguay, Venezuela and Vietnam. The consular representatives of Finland, Mexico, Poland, Spain and Turkey are resident in London and have jurisdiction extending to Hong Kong. Austria, Bolivia, Burma, Costa Rica, Denmark, El Salvador, Finland, Greece, Guatemala, Honduras, the Irish Republic, Israel, Nicaragua, Peru and Spain have honorary consular representation in Hong Kong. In addition, Austria, France, Italy, South Africa and Thailand have resident Trade Commissioners.

TOURISM

      Tourism, actively promoted since 1958 by the Hong Kong Tourist Association, had another favourable year. By the end of October the number of visitors to Hong Kong had reached 204,419, or 13 per cent more than in the corresponding period of 1961. The remaining two months of the year were part of the normally busy tourist season and brought the total number of visitors up to 253,016, a new record. The first 10 months of 1962 followed the pattern of previous years. Slightly more than 35 per cent of visitors were Americans and about 35 per cent were from

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INDUSTRY AND TRADE

Britain and other Commonwealth countries. Of the remainder, most came from the countries of south-east Asia.

      To meet the needs of tourists, Hong Kong and foreign business- men have invested in new hotels, air-conditioned sight-seeing cars and buses, guide services and many other facilities. In hotel con- struction, particularly, Hong Kong has established a record prob- ably unequalled by any other place in the world. In 1959 the Colony had only 2,300 hotel rooms suitable for tourists. Today there are 3,336 and by the end of 1963 the number will have risen to over 6,000. This represents an increase of 200 per cent in four

years.

      Two additions made during the year to the travel facilities of Hong Kong were a new terminal at Kai Tak Airport and a sea terminal at Navy Street, Kowloon. Facilities available at the City Hall opened in March, plus the new hotels, have raised the possibility of Hong Kong serving as a venue for large-scale inter- national meetings and conventions. In January the eleventh annual conference of the Pacific Area Travel Association was held, attended by 500 delegates and wives. Later in the year the Seven- teenth World Congress of the Junior Chamber of Commerce International was held, attended by over 1,200 delegates from all parts of the world.

      The Hong Kong Tourist Association was founded by Govern- ment ordinance in 1957 and began work in 1958 following the arrival of its Executive Director, Major H. F. Stanley. In 1962 the Association's membership grew by 25 per cent and overseas callers at headquarters increased by 29 per cent. Under the chairmanship of Mr W. C. G. Knowles, the Association is governed by a Board of Management composed of 11 members appointed by the Governor. It annually receives a subvention from Government which, for the financial year 1962-3, amounts to $2,649,000.

      The Association produces a large number of posters, folders, pamphlets and other publicity material for distribution abroad. It also issues a monthly bulletin, Hong Kong Travel Bulletin, which now has a circulation of 11,000 mailed overseas. It also produces a news-sheet, News-Views, for its own members. Member- ship of the Association is in two categories-full members, who are air and steamship lines, hotels and travel and tourist agencies; and associate members, who are shops engaged in the tourist trade.

INDUSTRY AND TRADE

97

     Membership of both categories now totals 333. In addition to distribution offices in New York, Chicago and San Francisco the Association established an office in Sydney in 1962 to distribute tourist information in Australia and New Zealand.

7

Primary Production

AGRICULTURAL LAND IN THE NEW TERRITORIES

A LAND COURT was set up, shortly after the New Territories became part of the Colony, to hear the inhabitants' claims to tenure of land. The holdings so established were confirmed by Government and recorded in Block Crown Leases, and are known as Old Schedule Lots. The Land Court completed its work in 1905. All other land was deemed to be unleased Crown land, leases of which could be sold at public auction, as in Hong Kong and Kowloon. New Territories' lands acquired in this way are known as New Grant Lots. It has always been recognized, however, that most villages have certain prescriptive rights over the land around them, where they graze their cattle, cut grass, and bury their dead; and no Crown land in the New Territories is put up for auction without giving the nearest villagers a chance to object. An objection, whether economic or geomantic, is usually accepted if reasonable.

      Most of the leased land in the New Territories, usually known as 'private land', is classified as either agricultural land or building land. Minor buildings, watchmen's sheds, pigsties, or other build- ings associated with farming, may normally be erected on agricultural land. When a villager who owns land in agricultural status wishes to erect a small house for his own family he is usually given a building licence and allowed to do so, provided that the lot is suitable and the building will not interfere with any rural development or town planning. No premium is payable for such licences if the houses are small.

New Territories' land policy follows the general lines laid down for the urban area, particularly in the towns and in areas required for industrial development. In the more rural parts the New Territories Administration is chiefly concerned with balancing the needs of agricultural production on the one hand and of urban development on the other.

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99

Much of the best land is owned by clans established for hundreds of years. By tradition a proportion of the rent raised from clan land is set aside by the clans themselves for the upkeep of ancestral halls, religious observances, clan welfare and the maintenance of schools. Such land may not be disposed of without the consent of the clan members (sometimes numbering many hundreds) and the permission of the district officer.

Rents and values of agricultural land in the New Territories are customarily reckoned in paddy; if crops other than rice are grown, the rents are convertible into money at the market rate of a specified crop. Crown rents, however, are collected in cash at a rate fixed when the lease was granted. Most Crown rents have thus progressively declined in relation to the customary value of agricultural land, and in some cases are now hardly worth the trouble of collection.

An average annual rent for two-crop rice land would be about 1,600 pounds of paddy an acre, or about 40 per cent of the total annual yield from two crops. Though much of the land is owned by clans, individual holdings are all small, averaging under two acres. There are very few farmers who cultivate more than five acres. Where land is rented it is usually on annual tenancy, and often the arrangement between landlord and tenant is oral.

LAND UTILIZATION

The Agriculture and Forestry Department began a land utiliza- tion survey in 1953. The compilation of preliminary data was completed in 1955 and maps were prepared on scales of 16 inches to one mile and 32 inches to one mile. In 1954 Dr T. R. Tregear, senior lecturer in Geography at the University of Hong Kong, made an independent reconnaissance study of land utilization in the Colony. Dr Tregear had full access to the work of the Agriculture and Forestry Department and produced a report from this data, Land Use in Hong Kong and the New Territories, published by the University in 1958.

      The total land area of the Colony and its component parts was recomputed in 1959. Although the areas for the various classes of land had not changed appreciably, some slight modification of the original figures resulted. Using the same classification of land use, the following data was accepted for 1962:

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PRIMARY PRODUCTION

Approximate

Percentage

Class

area

Remarks

of whole

(square miles)

(i) Built-up (urban areas)

22.5

5.5

Includes roads and railways

(ii) Steep country

111.0

28.0

Rocky, precipitous hillsides incapable of plant estab- lishment

(iii) Woodlands

22.5

5.7

Natural and established woodlands

(iv) Grass & scrub lands

162.0

40.7

Natural grass and scrub

(v) Eroded lands

20.0

5.0

(vi) Swamp & mangrove

lands

5.5

1.4

Stripped of cover. Granite country. Capable of re- generation

Capable of reclamation

(vii) Fish ponds

2.0

0.5

Fresh and brackish water fish farming

(viii) Arable

52.5

13.2

Includes orchards and mar- ket gardens

Natural topography largely decides the use which can be made of land in Hong Kong. From a farmer's viewpoint, all the readily cultivable land is already being exploited and what is left, apart from land alienated to industrial and urban use, is marginal. Pressure comes on the land from two directions--the continued and steady demand for land for industry and housing, and the need to meet the growing needs of the rural community. It is important to remember that 80.8 per cent of the total area of the territory is marginal land, in differing degrees of sub-grade character. The arable land and fish ponds already exploited com- prise only 13.7 per cent of the total area, and the expanding urban areas (the remaining 5.5 per cent) tend to encroach more directly on arable rather than on marginal land. It is necessary to preserve a proper balance between these conflicting needs and, where possible, land is reclaimed from the sea for industry, as at Tsuen Wan. On the other hand market towns such as Yuen Long, Tai Po and Sha Tin must expand and it is unavoidable that fields will be lost to agriculture, or at least that agriculture in such areas will be confined to market gardens. This trend is, however, being offset by more intensive production and by development of marginal land.

In 1937 it was estimated that the total forest cover was 22 square miles. There were a further 81 square miles of private forest lots, largely kept by villagers for grazing and grass cutting. During the Japanese occupation much of this timber was stripped

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101

     from the hillsides and catchment areas. The afforestation policy is to replace these lost woodlands, not only to safeguard water catchments and ensure soil conservation, but also to take advantage of the opportunities it affords to make best use of the land. There are many limiting factors to the extension of arable land, but they can be overcome in some areas and much more attention is now paid to the principles of multiple land use in order to exploit underdeveloped areas. The establishment of pure forests tends to be restricted to areas incapable of more intensive development.

      The compilation of information and data for the further ex- ploitation of available land resources for agricultural production is a continuing process. The Agriculture and Forestry Department is primarily concerned and has the changing pattern of land use constantly under review. The department also undertakes investiga- tional and advisory work for the benefit of farmers. A report on the soils of Hong Kong has recently been published and is a valu- able addition to the information available for the improved utiliza- tion of land resources. This report, by Dr C. J. Grant, formerly of the Agriculture and Forestry Department and now at the University, is the result of three years work carried out in associa- tion with the soil survey pool attached to the Colonial Office.

PRIMARY PRODUCTION: POLICY AND ADMINISTRATION

      The policy of Government is to stimulate the production of food where this is compatible with the best utilization of the resources of land and sea. To achieve this, three departments of Government are concerned with serving farmers and fishermen. The Agriculture and Forestry Department concerns itself chiefly with optimum land utilization and gives technical, extension and advisory services to farmers. The Co-operative Development and Fisheries Department deals mainly with the fishermen on the waters of the territory and the administrative organization of co-operative societies of all types. The New Territories Administration is also concerned.

      The Agriculture and Forestry Department aims to increase the production and improve the economic status of individual farmers. It assists in stabilizing the farming industry by encouraging diver- sified production which helps mitigate the effects of seasonal market 'gluts' and trade recessions. While stimulating greater production by the use of scientific techniques, the department seeks

102

PRIMARY PRODUCTION

to achieve its aims without impairing soil fertility, and the conser- vation of soil and water, through afforestation of bare, eroded hillsides and catchment areas, plays an important part. Afforesta- tion is largely undertaken directly by Government, and private afforestation is still relatively unimportant.

Loans are available to farmers through the Kadoorie Agricultural Aid Loan Fund, started in 1955 by Government and Messrs Lawrence and Horace Kadoorie. The fund is administered by the Agriculture and Forestry Department, whose director is the chair- man and trustee. Loans are also available through the J. E. Joseph Trust Fund and through the Vegetable Marketing Organization Loan Fund. The Kadoorie Agricultural Aid Association, a philan- thropic organization also founded by the Kadoorie brothers, gives free grants to members of the farming community who cannot find enough capital on their own. The general policy of the association is to help those who are prepared to help themselves, and although it is not a Government sponsored organization it co-operates closely with Government through the Agriculture and Forestry Depart- ment which offers technical assistance and advice. Similar advice and assistance is also given to all welfare organizations concerned with the rural community, and especially to those engaged in the rehabilitation of immigrants as farmers.

      In the field of rural education greater emphasis is being placed on lectures followed by informal discussion rather than on formal training courses. During the year some 2,000 farmers attended such lectures given by professional and technical experts from the Agriculture and Forestry Department. A restricted programme of formal training courses was also carried out and more than 50 farmers and farmers' sons received vocational training in a wide variety of subjects. More than 70 progressive farmers were selected to attend organized farm visits to Government experimental stations and farming projects.

Within the last decade there has been a marked change in the farming pattern in Hong Kong. Formerly paddy cultivation was the most important aspect of agriculture in the New Territories. With the increased demand for food such as vegetables, fruit, eggs and poultry meat, and with industrial expansion and immigrant farmers exerting pressure on the land, there has been a steady move toward market gardening and pig and poultry production.

PRIMARY PRODUCTION

103

It is Government's policy to encourage diversification in farming practice and it is estimated that now more than 35 per cent of the two-crop paddy land is used for winter season catch crops of vegetables. Most of this land formerly remained fallow. There has also been more use of artificial fertilizers. A striking aspect of market gardening in Hong Kong is the widespread use of small knapsack sprayers and the most modern insecticides. The steady expansion of primary production over the past three years is shown in Appendix V.

AGRICULTURE

Since 1954 the area of land under two-crop paddy has fallen from 20,191 to 16,545 acres, the balance being used for permanent vegetable and field crop production. A total of 2,709 acres are also used for one-crop paddy in brackish water and 127 acres for one-crop upland paddy. Due to drought there was a fall in paddy production in 1962 and, taking the average milling percentage to be 68, the estimated crop was 16,463 metric tons of rice. At an average wholesale price of $60 a picul the crop was valued at $16,333,000. In a normal year the average yield of paddy from an acre of two-crop land is about 1.2 metric tons, but with seed of approved varieties, good irrigation and the use of fertilizers, production may reach 1.8 metric tons on average land, and over two metric tons on better soils.

The most important disease of paddy is blast, caused by the fungus Piricularia Oryzae, and farmers are making more use of blast-resistant varieties recommended by the Agriculture and Forestry Department. The department also selects seed within varieties, but only a limited amount of such improved seed is available. Traditionally the manurial treatment of rice consists of adding only very small dressings of dry animal manure, but the use of balanced artificial fertilizers is becoming increasingly im- portant.

The area of land under permanent vegetable cultivation has steadily increased from 2,254 acres in 1954 to 6,484 acres in 1962. This increase comes mainly from the transition of 3,700 acres of rice land to vegetable production, and the development of 530 acres of marginal land. In addition some 1,200 acres of two-crop paddy land (that is, land which can be irrigated during the driest weather and has good access to markets) is also used for cultivating

104

PRIMARY PRODUCTION

winter vegetables after the harvest of the second rice crop. Six to eight crops of vegetables are harvested annually from intensively cultivated land. The main crops are white cabbage, flowering cabbage, turnip, leaf mustard, Chinese kale, Chinese lettuce, tomato, water spinach, string bean, watercress and cucumber. Cauliflower, cabbage, lettuce and tomato are produced in great quantity during the cooler months and quality is excellent. This intensive production of vegetables takes place on both fertile and comparatively infertile land and is made possible by heavy dres- sings of manure. Nightsoil is used on about half of the area, but is being replaced or supplemented by pig and poultry manure, peanut cake, duck feathers, bone meal and compost. The use of artificial fertilizers is increasing, usually in addition to organic manures. Plant diseases are less important than insect pests and insecticides are very popular. The Agriculture and Forestry Depart- ment is paying increased attention to seed selection of local vege- tables, as well as to trials with winter vegetables grown from imported seed.

Sweet potatoes are grown both for human consumption (the tubers), and for pigfeed (the vines). Some 2,500 acres are double cropped on drier lands, chiefly for tubers; and a catch crop of sweet potatoes is also grown on 3,360 acres following the second paddy harvest. With an average yield of 4.3 tons an acre for each crop, and an average market price of $298 a ton, this represents an annual value of $10,713,000. About 2,129 acres of other field crops are cultivated such as peanuts, millets, soybeans and sugar- cane. They are grown mainly for local rural consumption. Fruit production is not yet substantial but is expanding and includes wampei (wong pei), lung ngan, lemon, orange, tangerine, Japanese apricot, guava, papaya, lychee and pineapple. Accurate statistics are not available, but approximately 35,000 piculs of assorted fruits, valued at over $3 million, were harvested during the year.

Crops and Fruits for export. A narrow range of fruits and crops is prepared for export to Chinese living overseas. Although the quantities exported are not large they make a useful source of income for the small farmer. The exports include water chestnuts, Japanese apricots, lemons, taro, bitter cucumbers, white cabbages, ginger, radishes, lychee, wampei, mushrooms, lotus roots, olives, turnips, yams and mustard. The area planted to these crops

PRIMARY PRODUCTION

105

in 1962 was about 900 acres and their value was over $2 million. The water chestnut crop, in particular, has greatly improved in quality in recent years and a larger proportion is now being ex- ported as 'first grade'. Crops exported to the United States and to certain other countries must be accompanied by a Comprehensive Certificate of Origin, which requires individual inspection of the crops in the field by staff of the Agriculture and Forestry Department.

      Pond Fish Production. The number of fish ponds in the New Territories continued to increase and the total area is now 1,082 acres, situated mostly along the Deep Bay coastline, near Yuen Long. Grey Mullet is the most important species of fish reared and requires water with a salinity above 0.05 per cent. Fry are found in local coastal waters in February and March and the supply in 1962 was very good, more than 10 million being collected. Fry of four other important species, silver carp, grass carp, big head and mud carp, are obtained from China between May and August. Adequate supplies amounting to about 14 million were imported during the year. Common carp and edible goldfish are bred locally and, respectively, some 1,800,000 and 100,000 fry were raised to meet trade requirements. Edible goldfish require fresh water (less than 0.4 per cent salinity). The common carp can tolerate one per cent salinity. Production for the year was 900 tons, valued at $3,900,000. This was a distinct improvement on previous years, and represented about 10 per cent of the total consumption of pond fish. Six million fry of various species were re-exported during the year.

ANIMAL INDUSTRIES

      As there is insufficient land for extensive grazing, pigs and poultry are the principal food animals reared in the Colony and cattle are mainly used for draught purposes. The pigs of Hong Kong are mostly the resultant crosses of local animals with exotic stock, and pure strains of the Chinese type are becoming less common. The Agriculture and Forestry Department maintains herds of pure exotic strains such as Berkshire, Mid-White and Large-White, and also herds of two Chinese strains. These animals are used for experimental purposes, and for commercial cross- breeding and distribution to improve the Colony's pig stock. Pigs

106

PRIMARY PRODUCTION

are often kept on traditional lines in the villages, but an overall improvement in management is taking place as a result of extension and advisory services. During the year the pig artificial insemina- tion service was further expanded and over 2,250 sows were in- seminated with a total conception rate of 92 per cent and a first service conception rate of 78 per cent. The artificial insemination services provided semen from boars of the Berkshire, Middle- White, Large-White and local breeds. In 1953 only 64,000 pigs of local origin were slaughtered in local abattoirs, compared with some 460,000 in 1962. The 1962 figure represented 30 per cent of the total number of pigs slaughtered in the Colony and the value of pig production during the year amounted to some $52 million.

Many of the larger poultry farmers are now producing their own hatching eggs and this is important in helping to stabilize the poultry industry within the territory. In wetter areas ducks and geese are raised for home consumption and for export. The rearing of ducks and geese for the local market has become increasingly important in recent years. Pigeon-keeping is now a thriving industry and prices in 1962 averaged $7 for a pair of squabs. The total value of squabs marketed during the year was estimated at $1,700,000. The most popular types of table birds are the white or blue king crossed with the homer.

Local brown cattle and buffaloes are kept for work purposes and surplus stock is sold for slaughter. The Chinese brown cattle are particularly well suited to the local environment and manage- ment. Some 3,400 surplus local cattle were marketed for slaughter at an estimated value of $1,612,000. The dairy cattle in Hong Kong are mainly Friesians and are kept in isolation on one large farm on Hong Kong Island and in smaller farm groups on the outskirts of Kowloon. All dairy animals are regularly tested and must pass the single intradermal (comparative) test for tuberculosis. During 1962 there was a slight increase in milk production and the estimated total production was about 13 million pounds of milk, valued at $1 a pound. During the autumn a resettlement scheme necessitated the removal of 14 small dairy farms containing 916 dairy cattle from the Diamond Hill area of New Kowloon. Of these cattle 398 of the less productive animals were slaughtered and the remainder accommodated in already-licensed dairies out- side the area while awaiting re-siting in the New Territories.

PRIMARY PRODUCTION

107

The Colony continued to be free from rabies and rinderpest. The incidence of foot and mouth disease was not serious, though there were some 280 outbreaks of a mild type in both cattle and pigs. Some 22,000 cattle and pigs were inoculated against foot and mouth disease types 'O' and 'A', and 2,000 against type 'Asia I'. Slightly less than 50,000 pigs were inoculated against swine fever and some 7,000 cattle were inoculated against rinderpest, with locally produced vaccine. In all 16,634,000 doses of Ranikhet vaccine and 2,484,000 doses of intranasal-drop vaccine were used for the prevention of Newcastle disease in poultry. Farmers are making more use of the livestock advisory services of the Agriculture and Forestry Department.

FORESTRY

The Agriculture and Forestry Department is responsible for forestry generally, and for the direct afforestation of water catch- ment areas, protection of vegetation on Crown lands, assistance to village forestry, and amenity planting in catchment areas. A thick vegetative cover is essential to prevent silting of reservoirs and erosion, and to help streams to flow more regularly by inducing as much water as possible to remain in the soil. Well-managed forests are an ideal way to achieve this. Elsewhere forestry can provide timber and fuel for local consumption and help improve rural economy.

      It is only in recent years that any serious attempt has been made to carry out afforestation on a large scale, and the landscape is now undergoing a noticeable change as plantations become established. Generally hills are predominantly grass covered, with a thicker cover of shrubs in some places and patches of scrub forest in remoter and less accessible areas. Thickly-wooded areas also occur where the vegetation has been protected against cutting and fire, as on Hong Kong Island and around villages. Villagers cut grass for fuel and this practice, combined with the prevalent hill fires of the dry season, has brought about the more or less complete destruction of vegetation, followed by soil erosion, in many parts of the Colony. Villagers often have forestry lots on the lower hill slopes, but the trees, mostly pine, are generally so scattered and badly lopped that they rarely alter the barren aspect of the land.

108

PRIMARY PRODUCTION

Government afforestation areas are mostly co-extensive with the water catchment areas, the main ones of Tai Po Kau, Jubilee Reservoir, Tai Lam Chung and Fu Shui extending contiguously across the mountains from Tai Po in the east to Castle Peak in the west. Other afforestation areas are the catchments of the Shek Li Pui and Kowloon reservoirs, the Shek Pik reservoir catchments on Lantau Island and almost the whole of the Shap Long peninsula. These areas, covering 25,000 acres, are divided for purposes of management into compartments of 200-300 acres, intersected by paths and fire barriers cleared of vegetation. So far over 11,000 acres have been planted. The main species used is pine (Pinus massoniana), followed by Brisbane box (Tristania conferta). Experimental plots have been laid out with a variety of other species, some of which are now being planted more widely. Eucalyptus and American Pinus species are among the most promising.

     In order to provide seedlings for afforestation the Agriculture and Forestry Department maintains nurseries in the New Terri- tories. Most seedlings are now raised in polythene tubes, instead of in open nursery beds, and constant efforts are being made to improve handling techniques. The early stages of seedling pro- duction are concentrated in the main nursery at Tai Lung, Fanling, and later tubed stock is moved out to temporary nurseries adjacent to the planting areas. In this way between 1 and two million seedlings can be handled annually.

     Planting usually starts in the cool, wet spring and continues until June or July. Although planting may be successful in the late summer, trees planted after July usually have too short a period to become well established before the onset of the drier weather in October. Because of very dry conditions in February and March, planting in 1962 did not start until April. Unusual drought during July and August caused many seedlings to die, but damage turned out to be less than had been feared. Just over 250 acres of new planting was completed, in addition to the replacement of failures from previous years in the catchments of the Jubilee, Tai Lam Chung and Shek Pik reservoirs.

During the dry season from October to March there is a constant threat of fire in the plantations and careful precautions have to be taken. Fire lookouts are placed strategically on hills

In Hong Kong's inshore waters two fishing craft come together at the end of the day. Looking almost like toys in the half-light, the craft are nevertheless both a sturdy home and a means of livelihood to those aboard-part of a great fleet of more than 10,000 fishing vessels that

daily sail the Colony's waters.

H

During the past few years Hong Kong has become one of the most photographed places in the world, appearing in colour or black and white in magazines and on television and cinema screens in every major country. Yet always it seems able to provide a new face for the camera-like this view looking from Causeway Bay towards the Peak.

Despite the ceaseless activity that typifies so much of Hong Kong with its population of more than 34 million, there are still quiet backwaters and it is there that many fisherfolk make their homes. For others trying to get away from the city, beaches such as Shek O (below) though often crowded provide a welcome outlet.

....

.

:

PRIMARY PRODUCTION

109

and are connected by field telephone to control points where men, equipment and transport stand by during particularly hazardous periods. During the winter of 1961-2 a total of 178 fires, affecting nearly 5,000 acres of hillside vegetation, were reported and dealt with. Several were in young plantations and the remainder on grassland in the vicinity of plantations. Carelessness by members of the public again caused many of the fires, and at least six were found to have been started deliberately.

      Assistance to village forestry continued and villagers were taught how to correctly plant and profitably manage their own forestry plantations. Government demonstration plantations show quite clearly the results that can be achieved and these plantations have proved most useful in arousing interest. Trees take a long time to grow and it is not always easy to convince villagers that forestry can be profitable. Interest is spreading steadily if some- what slowly and, while it will be some years before the work now being carried out can begin to produce noteworthy results, some of the older stands are now being thinned for the first time and this will be the beginning of steady returns for the owners. Educating the young in the value of afforestation is important and this year individual schools again organized their own tree- planting days and invited parents and local dignitaries to join in. Some 63 schools planted more than 11,200 trees, supplied by the Agriculture and Forestry Department.

FISHING

       Administration. Government's aim is to foster the orderly expansion and development of the fishing industry, to increase supplies of fish to meet the needs of an expanding population and to improve the economic status of those engaged in the industry. A fisheries division was established in 1952 under the administration of the Agriculture, Fisheries and Forestry Depart- ment and, in the same year, a fisheries research unit was formed by the University of Hong Kong. A fisheries advisory committee, on which both were represented, co-ordinated matters of common interest; the Co-operative Development Department, which was responsible for the supervision of fishermen's co-operative societies and the administration of the Fish Marketing Organization, also took part.

110

PRIMARY PRODUCTION

      This divided responsibility gave rise to many disadvantages and Government decided, with the agreement of the University, to set up a single authority to direct fisheries activities. In July 1960, the fisheries division was transferred to the renamed Co-operative Development and Fisheries Department and was joined one month later by the fisheries research unit, now known as the fisheries research station. As fresh water pond fisheries in Hong Kong are closely connected with land utilization, extension work on com- mercial fish ponds remained the responsibility of the Agriculture and Forestry Department, although the basic research work on pond fisheries is the responsibility of the new department.

Marine fisheries extension work includes investigations into and demonstrations of fishing methods, craft and fishing gear; the in- troduction of new fishing techniques; the promotion and sound development of a mechanization programme; the training of fisher- men for certificates of competency as masters and engineers; the instruction of local fishermen in navigation; the extension of oyster farming and the culture of pearls. A modified junk-type mechan- ized fishing vessel, the Yuen Ling, is used as a general purpose inshore demonstration vessel and a small steel trawler, the Alister Hardy, has been converted into a floating classroom to provide practical instruction and experience for fishermen studying navigation.

       Problems such as over-fishing and the conservation of fish re- sources receive constant attention. Legislation introduced during the year provides the necessary authority for comprehensive pro- tection measures, particularly against the use of explosives and toxic substances.

       Both the Yuen Ling and the Alister Hardy have been converted to enable them to be used to investigate the potential of single boat stern-otter trawling, as compared with the two boat trawling now practised by local boats. At the same time the trend toward the modification of a traditional junk design to meet modern re- quirements, particularly those of mechanization, is being encour- aged. Several large modified Kwong Sun type deep-sea trawlers are now operating and their design includes radical departures from the usual junk layout. Although originally intended for pair trawling, these boats are fitted with diesel engines of 240 bhp, and are designed so that they may readily be converted for single

PRIMARY PRODUCTION

111

boat stern-otter trawling at a later date. The first two were launched only a year ago, but already they have proved themselves successful fishing units. Great interest has been shown by other local trawler fishermen in this new design and it appears likely that more owners will copy it and incorporate further improvements. The fisheries extension division provides evening courses of instruction for workers in the junk building industry. Attention is directed mainly toward lofting-out (or laying-off) the correct lines of a boat, and a mould loft shed has been built to give the pupils practical experience.

The department administers the Fisheries Development Loan Fund, which is allotted specifically for the development of the Colony's middle and distant waters fleet and which had its capital increased during the year from $2 million to $5 million, and the Colonial Development and Welfare Scheme D 1967, which provides mechanization loans for fishermen. There is close co-operation with the Fish Marketing Organization, which administers two other fisheries loan funds and investigates applications for loans from all four funds. Together they provide capital of nearly $8,500,000 for the development of the industry. The department also takes part in the activities of the Indo-Pacific Fisheries Council of FAO and, during the year, two officers of the department attended the tenth session of the council in Korea.

       The fisheries research station has a position in Hong Kong com- parable with other national and regional institutes studying fisheries resources. Its activities now centre on a biological and oceano- graphical investigation of the continental shelf within a radius of approximately 500 miles of the Colony, extending from Formosa to the Gulf of Tong King. For this work the station operates the research trawler Cape St Mary of 240 tons, a gift from Her Majesty's Government. As the programme develops, the scope of research and exploration will be enlarged to include the whole of the South China Sea. Studies of the culture of Chinese carp and other pond fish, and of edible and pearl oysters, are also carried out by the research staff of the station.

Fisheries. Marine fish is one of Hong Kong's main primary products and the fishing fleet is the largest of any port in the Commonwealth. Nearly 10,000 fishing junks of various sizes and designs and 25 Japanese-type trawlers, 12 of which are

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British registered, are based in the Colony. There is a sea-going fishing population of about 80,000, chiefly Tanka people, and the main fishing centres are Aberdeen and Shau Kei Wan on Hong Kong Island, and Castle Peak, Tai Po and the Tolo Channel area, Sha Tau Kok, Sai Kung, Tai O and Cheung Chau in the New Territories. Junks are built locally from imported timber, China fir being the most popular material, but in recent years continued shortages of fir have led to the increased use of teak and yacal. About 95 per cent of the fleet is owner operated, while the rest are directed by fish dealers and fishing companies.

Purse seiners, gill netters, shrimp trawlers and other inshore vessels operate mainly to the south of the Colony inside the 20 fathom line. The larger junk-type trawlers and long liners have gradually extended their operations and now work mainly in 30 - 70 fathoms along the coast of Kwangtung. Many of these deep-sea vessels still depend on sail and their activities are severely cur- tailed during the typhoon season from June to October. The re- strictions imposed by the Chinese People's Government in 1958, requiring fishermen based on Hong Kong who sail in Chinese inshore waters to land a quota of their catch in China, were continued throughout the year. Quotas were varied from time to time and the restrictions were enforced with varying degrees of rigidity.

There was a substantial increase in the mechanized fleet during the year. Nine hundred and forty-five vessels, the majority newly built, joined the fleet which is now 5,199 strong.

      Landings by the local fishing fleet were generally good through- out 1962. Imports of both fresh marine fish and fresh water fish from China remained low, as did quantities of imported salt/dried fish. The quota system, under which landings in Hong Kong by foreign registered fishing vessels were restricted, was lifted on 1st February 1960, but there has been no significant increase in landings by such vessels.

Oyster farming. Edible oysters have been cultivated in the waters of the Colony for some 700 years. The principal area of cultivation is Deep Bay where 347.42 tons of fresh oyster meat, valued at approximately $1,273,224, were produced from 6,060 acres along the New Territories' shores of the Bay. Most of this was processed into dried meat or oyster juice and exported to markets overseas.

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After a poor yield in 1961, this year's production was adversely affected by typhoon damage to the beds.

Pearl Culture. Five commercial pearling companies are licensed and operating in the Colony on sites surveyed and licensed by the Co-operative Development and Fisheries Department. Four of the sites are in the Tolo Harbour and Channel area and there is one in Port Shelter. It is still too early to judge the success of their activity, but shortage of suitable sites threatens to restrict wider expansion. To assist research into the requirements of this infant industry a small pearl culture research station has been constructed at Kat O in Mirs Bay.

MARKETING

Fish Marketing Organization. The end of the Pacific War found the few fishermen remaining in the Colony in very poor circum- stances. Many were literally in rags and their vessels and fishing gear had fallen into a state of disrepair. Interest-free loans and grants were made to rehabilitate the fishing fleet and a fish market- ing scheme was introduced and controls imposed on the landing and wholesale marketing of marine fish, with the long-term object of developing the industry on a sound economic footing. From this beginning developed the Fish Marketing Organization, a non- Government trading organization controlled by a civil servant, now the Commissioner for Co-operative Development and Fisheries.

The organization is a non-profit-making concern which finds its revenue and pays its expenses from a six per cent commission on all the sales in its wholesale markets. Until this year it operated under emergency legislation, but the Marketing (Marine Fish) Ordinance, which was enacted in 1956, has now been brought into force together with the necessary subsidiary legislation, the drafting of which was completed during the year. The ordinance provides for the establishment of a Fish Marketing Advisory Board to assist the organization, and appointments to this board were made during the year.

The organization runs five wholesale fish markets, at Aberdeen and Shau Kei Wan on Hong Kong Island, Yau Ma Tei in Kowloon, and Tai Po and Sha Tau Kok in the New Territories. Six fish-collecting posts have been set up in other fishing centres and the organization provides sea and land transport from these to the wholesale markets. The posts also serve as liaison offices

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for the organization. The establishment of a further two wholesale fish markets, one in the urban area of Kowloon and one in the New Territories, is under active consideration. The reprovisioning at a new site of the existing market in Kowloon is also planned. It will be financed jointly by a grant from Colonial Development and Welfare Funds and from the resources of the organization.

      At the wholesale market, fish is sorted into species and sizes by the staff of the organization, weighed into lots and sold by public auction to licensed retailers. Fishermen may collect the proceeds from their sales directly after the sale has taken place or, if asked to do so, the organization will send the money back to the post which serves their areas. A further service is the trans- portation of fish to buyers' establishments in the urban areas.

      Fresh fish sales through the Marketing Organization increased by 11 per cent during the year, while sales of salt and dried fish decreased by 18 per cent. The average annual wholesale prices for fresh and salt or dried fish decreased by 12 per cent and 19 per cent respectively compared with prices in 1961. The embargo on the importation of salt and dried fish from the Colony imposed by the Chinese People's Government in 1950, remained in force throughout the year. Salt fish exporters seeking other outlets have met with little success in the face of increasing competition from other countries in the region. During the year 1,840 piculs of salt and dried fish were exported, mainly to the USA, Canada, Thailand and Singapore.

      The provision of cheap credit is one of the most important services offered by the Fish Marketing Organization to local fisher- men. The organization's revolving loan fund, established in 1946, has made 6,164 loans totalling $13,680,967. Of this, some $11,155,273 had been repaid at the end of the year. The fund's ceiling was increased to $3,300,000 during the year in order to meet increased demands. In 1957 the Co-operative for American Relief Everywhere (CARE) donated $31,000 to form a revolving loan fund for shrimp fishermen. This fund was increased to $92,453 by a further donation from CARE during the year. This fund is administered by the organization and loans totalling $133,040 have been made; repayments to this fund total $110,209. The organiza- tion also carries out investigations and acts as collecting agent for

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the two Government loan funds administered by the Co-operative Development and Fisheries Department.

A further important side to the organization's development programme is the provision of schooling facilities up to primary four standard for the children of fishermen. Classes have been extended to primary six in Shau Kei Wan, Tai O and Ap Chau, and adult education classes have been opened at Sha Tau Kok and Shau Kei Wan. Eleven schools have been established by the organization, all of which now come under the Education Depart- ment's subsidy code. At the close of the year, approximately 2,000 fishermen's children were receiving education at these schools and a further thousand were attending other schools on scholarships provided by the organization. All Fish Marketing Organization schools have advisory committees composed of leaders of the fishing communities served by the schools. In recognition of the importance of vocational training, a secondary modern school will be built at Aberdeen. It is intended that, at this school, fishermen's children will be able to continue their general education beyond the primary level and at the same time receive instruction in vocational subjects geared to the requirements of a modern fishing industry. With the co-operation of Radio Hong Kong a weekly radio programme directed toward the fishing community was con- tinued during the year. The programme, which is mainly educa- tional and informative, has been received enthusiastically by the fishermen.

The organization may one day be run by the fishermen them- selves as a co-operative enterprise, but lack of education is a problem that only time can solve. Wherever possible the fisheries extension division makes full use of the organization's close re- lationship with the fishing communities. The success of the organization has attracted world-wide interest and many overseas visitors and students come to study the operations of the organization.

Vegetable Marketing Organization. The advantages of the fish marketing scheme were obvious almost immediately and a similar scheme was introduced in 1946 for the Colony's other important primary producers, the vegetable farmers. From this developed the Vegetable Marketing Organization. The organization now operates under the Agricultural Products (Marketing) Ordinance, 1952,

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     which provides for the appointment of a Director of Marketing (the Commissioner for Co-operative Development and Fisheries), who is made a corporation sole with power to acquire and dispose of property and use the assets of the organization for the develop- ment and encouragement of vegetable farming. It provides also for a marketing advisory board with the director as chairman and four other persons, nominated by the Governor, who have experi- ence and understanding of the difficulties and needs of farmers. The controls imposed by the ordinance, however, apply only to the New Territories and Kowloon area, for there is little vegetable cultivation on Hong Kong Island. The ordinance was amended during the year in the light of experience gained during the last 10 years.

      The organization has established depots in the main vegetable cultivation areas of the New Territories. From these depots, the majority of which are now operated by vegetable marketing co- operative societies, vegetables are collected daily by the organiza- tion's transport fleet and vehicles hired for the purpose, and taken to a large central wholesale market at Yau Ma Tei in Kowloon where three sales are held every day. The sales and all money dealings involved are conducted by the organization. Reprovision- ing of the Kowloon wholesale vegetable market on a larger, re- claimed site in Cheung Sha Wan is now being planned. This also will be financed jointly by the Colonial Development and Welfare Fund and the organization. The organization works in many ways like its fish marketing counterpart. There are important differences, however, in the method of sale, which in the case of vegetables is by negotiation and not by auction, and in the measure of practical assistance given by the vegetable marketing co-operative societies which now handle over 75 per cent of local production. The reason for negotiating sales, instead of holding auctions, is that on a normal day some 20,000 separate lots may be sold to nearly 3,000 buyers. The number of lots rises to nearly 30,000 a day in the main season, making sales by auction impracticable.

      Production during the year was satisfactory. There was a decrease of 15 per cent in the average annual wholesale price. A small quantity of imported vegetables passed through the organization's market at Yau Ma Tei, at a slightly lower average annual wholesale price compared with 1961. Figures are given in Appendix V. The

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organization is self-supporting, the costs of the services provided being met from a 10 per cent commission charged on sales. Thirty per cent of this commission is refunded to the marketing co- operative societies in recognition of the marketing responsibilities they assume in respect of their own produce. The organization is non-profit-making and any financial surpluses are ploughed back into the industry in the form of improved services and other benefits. One example is the aid which the organization has given to farmers in overcoming their main problem of recent years- lack of a cheap fertilizer-through a scheme for the maturation and distribution of nightsoil at a low price.

       Cheap credit is a further important service of the organization. Farmers may obtain loans, through the Commissioner for Co- operative Development and Fisheries, from the Vegetable Market- ing Organization Loan Fund. Since the establishment of this fund farmers have received 705 loans totalling. $3,428,603. It is Government's declared policy that the organization should one day be run by the farmers themselves as a co-operative enterprise. As a move toward this end the salesmen of individual vegetable marketing co-operative societies have been authorized under the Agricultural Products (Marketing) Ordinance as market salesmen, and negotiations with the Federation of Vegetable Marketing Co- operative Societies were continued with a view to the Federation taking over that part of the sales floor occupied by its member societies.

CO-OPERATIVE SOCIETIES

A Registrar of Co-operative Societies was appointed in 1950, and the combined Co-operative and Marketing Department, now part of the Co-operative Development and Fisheries Department, came into being later in the same year. Since then, the co-operative movement has made rapid progress in Hong Kong and is being accepted by a growing number of people, particularly peasant farmers and fishermen, as a sound and democratic way of im- proving their lot. While the main effort was directed at first toward the physical formation of societies and toward ensuring that they were sound in organization and economy, existing societies and the general public are now more aware of what such unions afford, and the department is placing more emphasis on the moral and educational side of the movement. An important development

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during the past six years has been the growth in the number of co-operative building societies, which are at present formed ex- clusively of local pensionable officers of the Civil Service and have been established with funds loaned by Government. Another development of interest is the increasing appreciation by rural communities of the improvements they may make in their way of life by co-operation and the formation of better living societies. Several of these societies have successfully completed water supply and housing schemes for their members.

       A further source of credit to farmers who are members of co- operative societies is the J. E. Joseph Trust Fund. The fund is administered by the commissioner, as Registrar of Co-operative Societies, and since its establishment in 1954 9,019 loans totalling $12,350,034 have been issued. In addition a large number of societies operate their own revolving loan fund schemes which are steadily growing in size and effectiveness, and which it is hoped will reduce the dependence of members for short-term credit on official and outside sources. The best examples can be found in fishermen's co-operative societies, 56 of which operate revolving loan funds with a total capital exceeding $800,000 and a turnover of more than $750,000 a year.

Twenty-nine new co-operative societies were registered in 1962, bringing the total on the register at the end of December to 377. At present there are 14 different types of societies. A table showing the number of societies in being at 31st December 1962, with details of their membership, share capital, deposits and reserve funds will be found in Appendix V.

MINING

      Iron ore, wolframite and graphite are mined underground, and kaolin, feldspar and quartz by opencast methods. Iron ore is ex- ported to Japan, wolframite to the United States, graphite to the United Kingdom, United States, Japan and other countries, and kaolin to Japan, Taiwan and the Philippines. Ceramic and enamel- ware factories consume all locally produced feldspar and quartz, while about a fifth of the kaolin mined is used in local rubber factories.

      In 1962 iron ore mined at Ma On Shan was treated in a dressing plant near the waterfront with a daily capacity of 800 tons of

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crude ore. Concentrates were transported by barge to ocean-going ships. A second dressing plant, installed in 1960, treated low-grade ore formerly considered uneconomic. The recovered ore was then finally processed in the main dressing plant. Throughout the year work took place on the excavation of an access tunnel which will be almost 8,000 feet long. It is designed to connect the main dressing plant with future underground workings. There was little interest in wolframite as the market price remained low, and only the Needle Hill mine was in production during the year. Pros- pectors for iron ore, graphite, and kaolin made no discovery of economic importance.

       The ownership and control of all minerals is vested in the Crown under the Mining Ordinance, 1954. The Commissioner of Mines is empowered to issue prospecting and mining licences and the land officer to issue mining leases. Prospecting licences are valid for periods of six months, renewable up to a maximum of five years. Mining licences are valid for periods of six months, renewable up to a maximum of five years, but may be further extended with the Governor's consent. Mining leases are granted for periods up to a maximum of 21 years. Details of leases and licences in operation are published in the Government Gazette twice a year. At the end of 1962, there were two mining leases, 16 mining licences, and five prospecting licences valid for different areas throughout the territory. They were mainly controlled by individuals or small mining companies.

       The Superintendent of Mines grants mine blasting certificates and examines export licences for minerals mined locally. He is responsible for assessing royalties on mineral sales, at a rate of five per cent of value, and for issuing demand notes for royalties, rents, premia, and fees for licences and leases. The Mines Depart- ment also inspects mining areas and surveys land affected by applications for licences.

8

Education

     THERE are 750,000 students in Hong Kong. Three times a day thousands of neatly uniformed children enter or leave their schools and colleges; as fast as some finish the morning session, others arrive for afternoon classes. Many schools hold an early evening session, too, or are used for evening classes or as adult recreation and training centres. The number of pupils in every type of school continued to rise during 1962, particularly in primary schools where by the end of September the enrolment figure had reached 539,000. Altogether there were 750,700 pupils enrolled at all schools, colleges and education centres-92,000 more than in 1961. Detailed figures are given in Appendix VI.

SCHOOL EXPANSION PROGRAMME

The 1961 census indicated the success of the drive to provide primary education. In March 1961 the number of children of primary school age, six to 11 inclusive, was 488,900. By September 1962, it was estimated that the number of children of primary school age had risen to 530,000, this rise being in part the result of immigration during the period. However, the actual enrolment in primary schools for the autumn term of 1962 was 539,000, of whom 476,000 were accommodated in day schools and 63,000 in evening and special afternoon classes.

The expansion programme still faces several major problems. Many children repeat a class in a primary school and so take longer than the normal six years to complete the course; also, because of a general shortage of places in the past, a large number of children started primary school at seven, eight, nine or even 10 years of age. As a result there are 60,000 children aged over 13 years in primary schools, and less than three-quarters of the children within the primary school age range are in school. The position is also aggravated by a natural annual increase of 20,000 in the primary school age population. Although a great deal has

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been achieved there is still a clear need for many more primary school places. The development programme will continue and the needs of new centres of population will receive particular attention.

       In the first nine months of the year 40 new schools were built, some by Government and others by private organizations both with or without Government assistance. These schools, together with extensions to existing schools, provided 37,980 new primary places and 5,670 new secondary places. On 30th September 1962, 145 schools were being built. These are expected to provide another 130,000 primary, 47,000 secondary grammar and 3,000 secondary modern places.

PRIMARY EDUCATION

Primary education is of six years' duration. In Chinese schools it normally begins at the age of six, and in English schools at the age of five. The majority of primary schools are Chinese schools where the medium of instruction is Cantonese. English is studied as a second language beginning in the third year, although some schools start earlier. At the end of the primary course comes the secondary school entry examination, which was held for the first time in May 1962, taking the place of the joint primary six examination which was held for the last time in 1961. Five Government primary schools teach children whose normal language is English.

Kindergarten Schools. Kindergarten education is not included in the Government system of education, but there is an increasing demand for this type of school and many new kindergartens have been opened for children aged from four to six. These schools are registered with the Education Department, and are advised by the inspectorate (kindergarten section).

       Special Schools. Fourteen special schools cater for the blind, the deaf, the physically handicapped, and the mentally deficient. The special schools section of the inspectorate provides training courses for teachers. The recommendations of the Hilliard Report on mental deficiency have been accepted by Government as a basic guide in dealing with the problem of mental deficiency. Dr Frisina, Professor of Audiology at Gallaudet College, Washington, arrived in Hong Kong in October for a two month visit arranged

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by UNESCO to advise Government on planning a programme for the teaching of deaf children.

SECONDARY EDUCATION

Anglo-Chinese Grammar Schools. There are 125 Anglo-Chinese grammar schools, accommodating nearly 66,600 pupils. They offer a five-year course in the normal academic subjects leading to the Hong Kong English school certificate. Instruction is in English, and Chinese is taught as a second language. This type of secondary education is in demand because a good knowledge of spoken and written English is desirable, if not essential, for entry to higher education, the professions, Government service and commerce. Education continues in the sixth form (two years) for successful school certificate candidates, who enter for the matriculation examination of the University of Hong Kong or the general certi- ficate of education (University of London) at ordinary and advanced levels. Pupils who succeed in these examinations may go to the University, teacher training colleges, or other professional institutions. In addition there are 17,730 pupils attending tutorial or evening classes where instruction in secondary level subjects, mainly English language, is offered.

Chinese Middle Schools. The Colony's 102 Chinese middle schools accommodate nearly 37,500 pupils. They offer a six-year course in the normal academic subjects leading to the Hong Kong Chinese school certificate. Instruction is in Chinese, and English is taught as a second language. The course has been re-organized and most of the schools have embarked on a new five-year course which will enable their students to take the school certificate examination in five years. Such students will sit the examination for the first time in 1965. For those who pass in the Chinese school certificate examination further education is available at post- secondary colleges, teacher training colleges and at the special classes centre. In addition, 1,227 pupils are attending evening classes.

      Technical Schools. These give a five-year course in English with Chinese taught as a second language. Like the Anglo-Chinese grammar schools, they prepare their pupils for the English school certificate examination, and successful candidates usually con- tinue their studies at the Technical College. There are three

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      Government and four subsidized secondary technical schools with an enrolment of 2,330, and 17 private technical schools with an enrolment of 2,446 which mainly give trade training.

       Secondary Modern Schools. There are five secondary modern schools. The first two were started in 1960. Four are now operating fully with three forms, while one which began in 1961 recently added an extension providing wood and metal workshops, a science laboratory and other special rooms. The secondary modern schools provide a three-year course of secondary education with a practical bias leading either to direct entry to apprenticeships or employ- ment, or to further technical or vocational training. The total enrolment in these schools is 3,850.

Special Classes Centre. This provides instruction in English for pupils who have passed the Hong Kong Chinese school certificate and wish to enter the University of Hong Kong. Fifty-nine students are enrolled.

POST-SECONDARY EDUCATION

       The Technical College opened the 1962-3 session in September with record enrolment figures of 828 full-time students and 8,221 students in part-time and evening classes. This was an overall increase of 981 students. The college comprises departments of building, mechanical and production engineering, mathematics and science, commerce, textiles, electrical and telecommunications engineering, and navigation (with marine engineering). It provides full-time courses leading to its own diplomas and to the associate membership examinations of many British professional institutions such as the Institutions of Mechanical, Electrical and Structural Engineers, the Royal Institution of Chartered Surveyors, the Institute of Builders and the Textile Institute. Students are also prepared for the examinations of the Australian Society of Accountants and the City and Guilds of London Institute. The standard required for entry to full-time classes is the Hong Kong school certificate and applicants outnumber the places available by about five to one. Instruction is in English except in a few evening classes.

       Part-time day and evening courses leading to the college ordinary and higher certificate, and to the City and Guilds of London Institute qualifications, provide instruction in

in mechanical,

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production, structural electrical and telecommunications engineer- ing, naval architecture, management studies, housing management, building construction, builders' quantities, field surveying, plumb- ing, textiles spinning and weaving, industrial chemistry, laboratory technician's work, dental mechanics, refrigeration, accountancy, book-keeping and shorthand. A two-year part-time course for training technical teachers was started in 1961 and the certificate in management studies has been extended to a two-year course. A productivity centre forms part of the mechanical/production engineering department of the college, and provides short courses in such subjects as materials handling, plant layout, work study and quality control.

      A donation of US$250,000 (approximately HK$1,400,000) was received from the American Government to provide a new five- floor workshop block which will accommodate facilities for teaching carpentry and joinery, bricklaying, plastering, decorating, plumbing, welding, machine fitting and electrical installation and repair work. A number of students are found places each year as student apprentices or junior draughtsmen with firms in Britain, and a record of 24 were placed this year. A new development was the participation of Australian firms in this valuable form of training.

      Post-Secondary Colleges are post-war institutions, the impetus behind their establishment being the influx of students and teachers from universities and colleges in China during the years 1947-50. The present enrolment is 4,108. The Post-Secondary Colleges Ordinance (1960) provides for the registration and control of the colleges and for their exemption from the provisions of the Educa- tion Ordinance. The object is to give statutory recognition to those institutions whose status approaches, but does not attain, that of a university. In October the ordinance was amended to permit greater flexibility in the constitutions of the colleges without re- ducing the statutory powers of the Director of Education.

      The three grant colleges-Chung Chi, New Asia and United- which have been receiving Government grants since August 1959, invited Mr J. D. Pearson, Librarian of the School of Oriental and African Studies, University of London, to advise on the organiza- tion, administration and development of library facilities. Mr Pearson arrived in Hong Kong in January 1962, and submitted

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his report in May 1962. The Post-Secondary Colleges' Joint Establishment Board's recommendations of February 1962, on im- proved salaries have been implemented. The report of the special committee appointed to define more exactly acceptable minimum qualifications for the non-teaching staff of the three grant colleges and to recommend essential establishments for non-teaching staff, has also been accepted.

      A commission was appointed in May to advise on the establish- ment of a new university in which the medium of teaching would be mainly Chinese. The members of the commission were: Mr J. S. Fulton, MA, Vice-Chancellor of the University of Sussex (chairman); Professor Li Choh-ming, PhD, Professor of Business Administration and Director of the Centre for Chinese Studies, University of California; Mr J. V. Loach, BSc, PhD, FRIC, Registrar of the University of Leeds; Professor Thong Saw Pak, BSc, PhD, FInstP, Professor of Physics, University of Malaya, Kuala Lumpur; Professor F. G. Young, MA, DSc, PhD, FRS, FRIC, Professor of Biochemistry, University of Cambridge; and Mr I. C. M. Maxwell, MA, Secretary to the Inter-University Council for Higher Education Overseas (secretary). The commis- sion's interim report, submitted in August, recommended that, if its report was accepted, a federal university based upon the three grant colleges should be formed. The commission's final report is awaited.

      In June, the joint diploma examination of the three grant colleges was held; 267 candidates sat and 240 passed. In July, 1,189 sat and 515 passed the joint entry examination of the three grant colleges, in which two private colleges also participated. The British Council presented $96,000 worth of books and periodicals to the three grant colleges including a micro-film copy of the famous Tunhuang manuscripts now in the British Museum.

      The University of Hong Kong was begun with financial help from friends and benefactors and has since received substantial recur- rent and non-recurrent grants from Government. In 1961-2 Govern- ment made capital grants totalling $3,254,412, and recurrent grants of $9,368,027 toward a total recurrent expenditure of about $15,365,922. Grants of land have been made from time to time and the central university estate now covers an area of about 40 acres, while other estates cover almost 12 acres.

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There are four faculties: arts, science, medicine, and engineer- ing and architecture. Enrolments in each faculty, in October 1962, were 685, 256, 393 and 253 respectively. The Institute of Oriental Studies had 47 students, the education diploma and certificate courses 124, and the social study courses 23, giving a total of 1,781 undergraduate and post-graduate students. Of these 134 were part- time and 25 were external students. Four hundred and seventy- eight students (26.8 per cent) were women. Most of the under- graduates are Chinese, but several other nationalities are repre- sented, particularly from south-east Asia. With the increasing numbers qualifying for entrance from the schools, Government and the university have agreed on a programme of expansion which will raise the number of undergraduates to about 1,800 by 1966. The number of full-time teaching staff, including demons- trators, is 264. Over 65 of these are the university's own graduates. During 1962 the intermediate and final examinations for the university's degree in architecture were recognized by the Royal Institute of British Architects as conferring exemption from the corresponding examinations of the institute.

FURTHER EDUCATION OVERSEAS

      The Students' Branch of the Department of Technical Co- operation and the Hong Kong Students' Office in London are responsible for helping students find places in universities and other educational institutions in Britain. The Hong Kong Students' Office also arranges for students to be met and accommodated on arrival and helps with advice on educational or personal prob- lems. Students who have completed their studies are given advice on future employment in Hong Kong. Government has appointed a committee in London to interview applicants for posts in Government service. Formerly all such interviews took place in Hong Kong and this new procedure will enable applicants to know whether their applications have been successful before they return to Hong Kong. The British Council gives advice and help to students both before leaving Hong Kong and in Britain.

From 1st October 1961 to 30th September 1962, the Education Department dealt with 454 applications for educational courses and 206 applications for nursing courses in Britain. In the same period 479 students are known to have left Hong Kong for Britain

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and Ireland for further study and at the end of September 1962, Hong Kong students in Britain numbered 1,601. A table in Appendix VI shows the main categories of their courses. The numbers of Hong Kong students known to have left for Australia, Canada and the USA for further studies are 1,004, 210 and 766 respectively.

      Government maintains Hong Kong House in London as a residential and social centre for Hong Kong students. The house is controlled by a board of governors responsible to the Govern- ment and accommodates almost 80 students. Table tennis, billiards, a radiogram, television, a photographic dark room and a library are provided. The main lounge has ample room for dances, concerts and general social activities. The address is: Hong Kong House, 74, Lancaster Gate, London, W2. Telephone: AMBassador 3056.

ADULT EDUCATION

       Adult Education is provided by the Education Department in the Evening Institute (enrolment 17,501), the Technical College Evening Department (7,982), the Evening School of Higher Chinese Studies (445) and 12 Adult Education and Recreation Centres (34,451). The Evening Institute offers different types of courses designed to make up education deficiencies and improve employ- ment prospects. There are English classes ranging from primary five to lower form six standard; teachers' classes for art, music, handwork, woodwork, domestic science and the teaching of English; rural classes with emphasis on literacy and simple arithmetic; post- primary extension classes providing an additional three years' training with a practical bias for those who do not anticipate further education at the grammar school level; and secondary school classes leading to the two school certificate examinations. General background classes provide elementary school education with special reference to adult needs and interests and also enable students to study home-management, housecraft, baby-care, cook- ing, sewing and knitting. In the woodwork classes, students learn simple carpentry and furniture-making for household needs. In addition, there are special classes in basic English for officers of various Government departments. There are 634 classes in 74

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centres in the urban and rural areas. Other forms of adult educa- tion are provided by the Technical College Evening Department and by the Department of Extra-Mural Studies of the University of Hong Kong, private night schools and vocational organizations. The Evening School of Higher Chinese Studies offers advanced courses in Chinese studies to graduates of Chinese senior middle schools. The school provides a three-year course in general arts, leading to a diploma issued by the Education Department. Candi- dates for admission must have a Chinese school certificate or show evidence that they have reached an equivalent standard. Classes are held at the university for two hours each evening, five evenings a week. Subjects taught include Chinese literature, philosophy, sociology, philology, Chinese poetry, study of the Chinese novel and drama, English language and literature. Most of the students are teachers in the day time.

Education and recreation are combined at the 12 Adult Educa- tion and Recreation Centres. Apart from regular evening activities, music appreciation, choral singing, physical education, educational film-shows, and group discussions are organized once or twice a week. A social evening or concert is held once a month, when members provide the entertainment. Educational visits are arranged. Elementary art, photography, harmonica playing, paper-sculpture, Chinese boxing and dramatic groups, have been successful. Talks on baby-care, housecraft and general health are well attended, and a series on 'human relations at home and in the community' aroused enthusiastic discussion. Government departments give lec- tures and demonstrations at the centres to help people acquire a better understanding of their role and of the work of Govern- ment at large.

TEACHERS AND TEACHER TRAINING

Teachers. There are 24,619 full-time and part-time teachers employed in registered schools, of whom 5,640 are university graduates and 8,424 trained non-graduates. At the end of the 1962 school year the ratio of pupils to teachers in all types of schools was 27.9:1. School classes are planned to have a maximum of 45 pupils in primary classes and 40 in secondary classes. The required qualifications for teachers are a university degree, a certificate in a special subject, or a teaching certificate. Most teacher training is

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done by the Education Department's three training colleges- Northcote College, Grantham College and Sir Robert Black College. Northcote College moved into fine, new premises in the spring, and Sir Robert Black College occupied more spacious temporary premises in the new building of Kowloon Dock Memorial School.

       Grantham College and Sir Robert Black College offer a full-time one-year course for students from secondary schools. Instruction is in Chinese and the course qualifies successful students to teach in primary schools. Northcote College offers, in addition to the one-year course, a two-year course in which instruction is given either in Chinese or English according to the section selected. It also offers a special one-year course to graduates of post-secondary colleges designed to train teachers for Chinese middle schools. Successful students from these two courses are qualified to teach in upper primary and lower secondary classes. The two-year course is recognized by the Ministry of Education in Britain for employ- ment under the Burnham Scale. Students who have completed the teacher training courses are awarded a certificate after two years of satisfactory teaching. Students from the two-year course and special one-year course are given a teacher's certificate; students from the one-year course are given a primary teacher's certificate. Training colleges organize continuation classes for students during their period of probationary teaching.

       The colleges also organize in-service training courses for un- qualified teachers. These are part-time evening courses, either in Chinese or English, of two years' duration. Successful students are given a certificate granting qualified teacher status in either primary or secondary schools, depending on the particular course followed.

       Teacher training courses are free and in the full-time courses maintenance grants may be made in cases of need. During the year there were 171 students in the two-year course, 51 in the special one-year course, 801 in the one-year course, and 1,443 in the in-service training courses. The Evening Institute also organized an in-service training course similar to that of the train- ing colleges to enable unqualified teachers to obtain a qualification for primary teaching. The enrolment was 198. The department of education of the University of Hong Kong offers a one-year

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full-time post-graduate course which leads to a teaching qualifica- tion. This year 72 graduates were enrolled in the course. The department also offers part-time courses of two years' duration to enable graduates already employed in schools to obtain a profes- sional qualification. The present enrolment is 52 graduates.

EXAMINATIONS

The Local Examination System. There are four local school examinations, three conducted by the Education Department and one by the University of Hong Kong.

The Secondary School Entrance Examination is a competitive examination to select pupils for places in Government and aided secondary schools and for aided places in private secondary schools. It is conducted by the Education Department and an examination committee is appointed to advise the director on general policy. All primary schools are invited to participate. Entrance from each school is limited to 60 per cent of its primary six pupils, but this percentage may be increased up to 100 per cent where justified by previous examination results. Scholarships for a full secondary school course are awarded on the results of the examination.

The Hong Kong English School Certificate Examination is con- ducted by a syndicate of representatives of participating schools and the Education Department. Candidates enter the examination at the end of a five-year course in Anglo-Chinese schools. Entry is restricted to school candidates. The examination tests general scholastic attainment and a pass is awarded on satisfactory per- formance in certain groups of subjects, including some compulsory subjects. The number of candidates increases rapidly year by year as the certificate is the qualification for proceeding to higher examinations, for admission to teacher training colleges, and for certain types of local employment.

The Hong Kong Chinese School Certificate Examination is con- ducted by a similar syndicate. Candidates enter after completing a six-year course in a Chinese middle school. Only school can- didates may enter, and the pass requirements compare with

                                   those of the English school certificate. The number of candidates shows a small decrease each year. The status of this certificate is similar to the English school certificate. The re-organization of this

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examination based on a five-year course, instead of the present six-year course, was approved last year and syllabuses of the major subjects have been revised accordingly.

      Matriculation. The University of Hong Kong conducts this examination at ordinary and advanced levels. The standards are those of the general certificate of education. Passes at advanced and ordinary levels are necessary to secure admission to the univer- sity and this certificate may also be offered as an entrance qualifica- tion to the teacher training colleges. Candidates are entered for the examination at ordinary level after a one-year course in form six of an Anglo-Chinese grammar school, and for the advanced level after a two-year course. Admission to form six depends on the pupil's performance in the Hong Kong school certificate examination. Private candidates are also permitted to sit.

       Overseas Examinations. The Overseas General Certificate of Education examination is open to school children and private candidates. Nearly 3,600 entered in 1962. Only those who do well in the Hong Kong school certificate are allowed to sit. The Educa- tion Department provides a local secretary for various examining bodies in Britain and so makes many other overseas examinations available to students in Hong Kong. The standard required in these examinations is comparable with that of equivalent examinations held in Britain. Appendix VI shows the more important examina- tions and the number of candidates entering for them.

SCHOLARSHIPS AND BURSARIES

In addition to the 1,099 Government awards listed in Appendix VI, six scholarships for post-graduate studies and two bursaries for one-year teaching courses, tenable at British educational in- stitutions, were awarded by the British Government to candidates from Hong Kong. These were made under the Commonwealth Scholarship and Fellowship Plan formulated at the Education Conference held at Oxford in 1959. Three Canadian scholarships for post-graduate studies were awarded by the Canadian Govern- ment. Hong Kong is contributing toward this plan by awarding to graduates from other parts of the Commonwealth two scholar- ships a year, tenable at the University of Hong Kong. Fourteen departmental scholarships and two Government training scholar- ships were awarded to officers of the Education Department for

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training in Britain, and four British Council scholarships were awarded to enable graduates and post-graduates to study at British institutions. The Federation of British Industries granted five scholarships, two for two-year and three for one-year courses in practical training in engineering firms in Britain. Two officers of the Education Department were awarded scholarships for studies in Australia under the Australian International Award Scheme and the Australian Commonwealth Co-operation in Education Scheme respectively. One American Award for Colonial Teachers was granted to an officer of the Education Department.

EXPENDITURE ON EDUCATION

A brief summary of expenditure by the Education Department from August 1961 to July 1962, is given in the table on finance in Appendix VI. In Government and Government-aided primary schools, fees are kept as low as possible and 10 per cent of all places are reserved for the free education of poor children. In government and aided secondary schools between 30 per cent and 45 per cent of the places are free.

LEGISLATION

      All Government schools are directly controlled by the Director of Education. Other schools, with some exceptions, are subject to the provisions of the Education Ordinance. The exceptions include schools for the children of members of HM Forces, while the post-secondary colleges and the University of Hong Kong have their own separate ordinances. Under the Education Ordinance the Director of Education has general control over education in the Colony, and is required to keep registers of schools, managers of schools, and teachers, and to ensure that school buildings are adequately maintained and that the general administration, conduct and efficiency of schools and teachers are satisfactory.

Legislation to provide for the winding-up of the Grant Schools Building Depreciation Fund with effect from 1st April 1960, was enacted in October 1962. The fund was dissolved and all its assets were transferred to the general revenue of the Colony. The fund was established before the last war as a fund to assist grant schools with the provision of capital for new buildings when existing ones

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KONG PUBL

In Hong Kong nearly 750,000 children are at school, and a school of one kind or another is being opened every four days. In an increasing number of them the curriculum is being extended well beyond the 'three r's', and painting and other subjects designed to develop character and imagination always prove popular with young pupils.

F:

Many voluntary welfare agencies operate creches and kindergartens (top left and above) where working mothers can leave their children. In the resettlement estates the creches make no charge and give each child a meal a day. At Government and private schools alike, increasing emphasis is being placed on vocational training (bottom left and below). Any boy who learns a trade will have no difficulty finding a job, while any girl who excels at domestic science will-apart from other prospects-always make a good wife.

The demand for teachers to staff Hong Kong's new schools is insatiable and more than 2,500 young men and women are enrolled at the Colony's three teacher training colleges. The new Northcote Training College (above), costing $5 million, was opened during the year. Some of the 400 student teachers on one or two year courses at the college are shown below.

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     became dilapidated. The large-scale assistance now given by Government for the rebuilding of grant schools made it unneces- sary to continue such a fund.

Legislation was enacted in October 1962 to amend the Grant Schools Provident Fund Rules. The main amendments to the rules enable part-time teachers to contribute if they wish, and allow teachers to continue to contribute-so long as they are employed in grant schools--after reaching the age of 60. The legislation also validates a new rule providing for the transfer of contributors' accounts from the Grant Schools Provident Fund to the Subsidized Schools Provident Fund and vice versa where contributing teachers are transferred from one kind of school to another. As a result of this legislation transfers of teachers between the two kinds of schools may be made without any loss of benefits in cases where the total teaching service has been continuous.

BOARD OF EDUCATION

The Board of Education was established in 1920 to assist the Director of Education in developing and improving education in the Colony. Its function is now statutorily defined as 'to advise the Governor on educational matters'. Its chairman is the Director of Education. All other members are unofficial. The board meets regularly and Government normally consults it on all matters of educational importance. The board met three times during the year.

SCHOOL ADMINISTRATION

      Government Schools are built, equipped and operated from Government funds. There are 91 primary schools, 15 secondary schools (including three functioning in temporary premises), five secondary modern schools, three teacher training colleges, a tech- nical college and four evening institutions.

      Grant Schools. These 22 schools mainly give secondary educa- tion and work under the terms of the Grant Code, by which Government pays the difference between approved expenditure and approved income. Approved expenditure includes salaries, leave pay, passages for teachers who are so entitled, and other charges.

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Alternatively, a block grant may be made. Grants of up to 50 per cent may also be made to meet the cost of new building, equipment and major repairs. In addition to this aid, interest-free loans may be made for approved new building projects.

Subsidized Schools are mainly primary schools operating under the Subsidy Code. The subsidy, like that paid under the Grant Code, is a deficiency grant and enables schools to keep their fees low and to pay teachers the same salaries as Government and grant school teachers of the same grade. The schools are assisted when necessary by free grants of land and building subsidies, and are eligible for interest-free loans for new buildings if their sponsor- ing bodies are incorporated. Although an urban subsidized school is usually bigger than a rural one, more than half such primary schools are in the New Territories, serving small, scattered villages as well as the more thickly populated areas. When a rural school is needed (or an extension to an existing one) the villagers approach the district officer, who helps them to seek the Director of Educa- tion's approval for their plans. A building grant and recurrent subsidy are generally given. Usually capital grants are made up to a maximum of 50 per cent of the total cost of the school, but for many small village schools a larger percentage subsidy may be given. There are 151 subsidized schools in urban areas and 271 in the New Territories.

Private Schools range from kindergarten through primary and secondary to post-secondary. In most cases private technical and commercial schools aim at short, intensive courses. Fees are generally much higher than those in other schools. Two measures introduced in 1960 assist private, non-profit-making schools. The period of repayment of loans by schools of this kind was extended to 21 years, subject to interest being charged at 34 per cent per annum. Schools already in receipt of interest-free loans repayable over 11 years were given the choice of adopting these new terms for the outstanding balance of their loans. Direct Government assistance is also given by paying part of the salaries of qualified teachers in selected non-profit-making secondary schools. Students in such schools who have been selected for entry on the results of the secondary schools entrance examination have also been

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assisted by having their fees paid in whole or in part. The assist- ance payable is equal to the difference between the approved fee of the school and the fee that would be charged in a comparable Government school. About 3,540 students now receive awards of this nature. Assistance to certain non-profit-making secondary schools on the basis of the number of classrooms occupied has also been in operation since September 1961. There are 1,476 private schools.

VOLUNTARY EDUCATION AND WELFARE WORK

      Missions of various denominations and Kaifong welfare associa- tions organize grant-in-aid and subsidized schools. Both missions and Kaifongs sponsor boards of management for non-profit-making schools. Kaifongs also provide free education for poor children. The British Red Cross Society organizes hospital schools for crippled children. Schools for the deaf, for the blind and for lepers, orphanages, and homes for maladjusted children are also provided by various welfare associations while the Po Leung Kuk provides free schooling for homeless young women and children in its care.

       Other welfare agencies which help education include the YMCA, YWCA, the Tung Wah Group of Hospitals, and the Boys' and Girls' Clubs Association. The Children's Playground Association, the Boy Scouts and Girl Guides Associations, and the Rotary Clubs, also give assistance. The Education Department works closely with the Social Welfare Department and voluntary agencies on special schools, and is represented at the meetings of the Hong Kong Council of Social Service and the Mental Health Association of Hong Kong. The department associates closely with the Medical and Health Department in health education and with the Hong Kong Teachers' Association in the professional sphere.

LIBRARIES

      A public library was opened in the new City Hall in 1962. Other libraries are maintained by the British Council, the United States Information Service, the Chamber of Commerce, a number of Government departments including the Education Department, and the University of Hong Kong. Access to the university and some of the official libraries is restricted. Books, pamphlets,

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journals and visual-aid material are distributed by the Government Information Services Department, the British Council, various con- sular authorities and commercial agencies.

PHYSICAL EDUCATION

The value of outdoor pursuits as part of any programme for physical education is receiving increasing recognition in the Colony. The popularity of training courses designed to foster interest in outdoor activities has shown a steady increase. During August a total of 141 boys between the ages of 14 and 18 years attended a series of courses organized in connexion with the Duke of Edinburgh's Award Scheme. The programme of training included instruction in camping, canoeing and canoe building, mountaineer- ing and mountain rescue work, map reading, sailing, athletics and night hikes. Regular supervision of teachers and physical education in all grades of schools was carried out during the year, and courses for physical education teachers in the New Territories and for in-service teachers in training were held in the summer vacation.

MUSIC, DRAMA AND ART IN THE SCHOOLS

Music. The Schools' Music Association presented 12 concerts by local and visiting artists to its student members. Membership of the Association is 3,270. The 14th Annual Schools Music Festival was held in March and April and attracted 3,665 entries compared with 3,200 in 1961. Two distinguished music education- alists from Britain, Sir Thomas Armstrong and Dr Eric Thiman, attended as external adjudicators. In appreciation of the high standards achieved, Dr Thiman is composing a choral work to be dedicated to the students of Hong Kong. The syllabus for the 15th Schools Music Festival was published early in September. There was a record entry of 3,089 candidates for the practical examina- tions of the Associated Board of the Royal Schools of Music. Figures just published by the board, inclusive of theory candi- dates, indicate that Hong Kong's entry last year was again second only to New Zealand in the 30 Commonwealth countries in which the board examines. In the board's examinations in theory there was a total of 1,306 candidates. The first post-war practical examination of the Trinity College of Music was held in December by an external examiner from London. The annual conference

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for music teachers was held during the summer vacation and a summer music school was organized. It featured illustrated lectures by the pianist Gerd Kaemper.

      Drama is a popular extra-curricular activity and many plays in both English and Cantonese were performed during the year. Students also saw a variety of plays ranging from Osborne's Look Back in Anger performed by a local company, to performances of Shaw by visiting professionals.

      Art. An art exhibition was incorporated in an Education Con- ference held in July. Exhibits from primary school children were of high standard and aroused considerable interest. The influence of the teacher training colleges, which have produced contemporary ideas in art education for some years, is proving effective in the schools. The Education Department art section has a large library of framed reproductions which are circulated continually in govern- ment schools.

EDUCATION CONFERENCE AND EXHIBITION

A five-day education conference and exhibition was held in July. The conference gave teachers in all primary schools an insight into certain aspects of education outside their own immediate experience. A residential conference for teachers of English as a second language met under the chairmanship of Dr B. Hensman, MA, PhD (Chicago), DPhil (Oxon), at the Chung Chi College in August. The conference provided an opportunity for the ex- change of ideas and experience in the teaching of English as a second language in the senior middle schools of Hong Kong. Lectures were given by visiting and local specialists in English language and language-teaching techniques, followed by group and general discussion. Other features included group work in the language laboratory, in audio-visual aids, in classroom projects, films, and a book display. A report on the conference has been issued.

Demonstrations were given in September by the Education Department, in co-operation with the Director of Broadcasting, of a television unit supplied by an English company. The unit was a complete television studio made especially for schools and colleges and the demonstrations were well attended by teachers from all over the Colony.

9

Health

PUBLIC HEALTH ADMINISTRATION

STATUTORY responsibility for administering the services which safeguard public health in Hong Kong rests with the Director of Medical and Health Services, the Urban Council, the Director of Urban Services, the Commissioner of Labour and the District Commissioner, New Territories. The Medical and Health Depart- ment provides hospital and clinic facilities throughout both urban and rural areas, maintains maternal and child health, school health and port health services and is responsible for measures to control epidemic and endemic disease. In addition, doctors are seconded to the Urban Services Department, the industrial health section of the Labour Department and the prisons medical service. In the New Territories the District Commissioner is responsible for the licensing of premises used for the preparation and sale of food for human consumption, of hawkers, private markets, slaughter- houses and offensive trades.

      The policy of Government is to provide, directly or indirectly, low cost or free medical and personal health services to a large section of the community which is unable to seek medical attention from other sources. To this end it maintains general, maternity, mental and infectious disease hospitals, and general and specialized out-patient clinics. In addition substantial grants-in-aid from public funds are given to certain voluntary associations and medical missionary bodies maintaining hospitals where treatment is given either free or at low cost, such grants normally being calculated to meet the excess of expenditure over income. In some cases, notably for the in-patient treatment of tuberculosis, the cost of maintenance of a fixed number of beds in hospitals run by such bodies is met by a subvention.

At most Government clinics there is a charge of $1 for each attendance, but free out-patient treatment is available for tuber- culosis, leprosy and venereal disease. Ophthalmic services are free

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to the blind and to children under 10 years of age, exclusive of the cost of spectacles. There is no charge for attendance at maternal and child health centres. Preventive inoculations against certain endemic diseases are similarly available free at Government hospitals, clinics and dispensaries, and BCG vaccine is provided without charge to doctors and midwives throughout the Colony. Fees are charged in Government hospitals for first class or single ward accommodation and for second class accommodation in wards of two to eight beds. In all cases, however, fees can be waived if necessary. No charge is made for treatment or accom- modation in the general and maternity wards, although when food is provided there is a nominal maintenance charge.

Finance. The estimated expenditure for the financial year 1962-3 was $72,176,900. To this should be added medical subventions totalling $27,792,900 made to the new Kwong Wah Hospital, the Tung Wah Group of Hospitals, the Alice Ho Miu Ling Nethersole Hospital, the Hong Kong Anti-Tuberculosis Association, the Grantham Hospital, the Mission to Lepers (Hong Kong Auxiliary), the Pok Oi Hospital, and other organizations. The combined estimated expenditure of the Medical and Health Department and these subventions represents 8.15 per cent of the Colony's total estimated expenditure of $1,226,436,110. Estimated capital expen- diture for the Medical and Health Department was $34,686,700. Professional Registers. There are five statutory bodies dealing with the registration of medical practitioners, dentists, pharmacists, nurses and midwives. The Hong Kong Medical Council is respon- sible for the registration of medical practitioners and has dis- ciplinary responsibilities under the Medical Registration Ordinance, 1957; it is not an examining body. The Dental Council, Pharmacy Board, Nurses Board and Midwives Board all maintain registers, regulate training, hold examinations leading to registration or en- rolment and have disciplinary powers.

GENERAL HEALTH

Generally speaking the health of the population continued to be good against a background of overcrowding, inadequate housing and restricted water supplies. The sudden influx of large numbers of immigrants from China, over a short period during the earlier months of the year, posed a potential danger to public health as

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did typhoon Wanda with its aftermath of many thousands of homeless crowded together in emergency reception centres. Fort- unately no epidemic of serious proportions occurred during the year although there was a recurrence of cholera not related to either the influx of immigrants or to the typhoon.

      Notifications of poliomyelitis showed the highest incidence since 1958 and there was a marked increase in the number of cases of measles. Owing to preoccupation with cholera inoculations the diphtheria immunization campaign was somewhat dislocated and there was not the continuing decline in the occurrence of cases that had been expected. The enteric diseases, notably typhoid and bacillary dysentery, showed little change in the pattern of appear- ance compared with previous years.

      The toll taken by accidents at work, on the streets and in the home which required treatment in casualty departments and admis- sion to hospital continued to rise. An analysis of occupational injuries showed that some 30 per cent were hand injuries. In the older age groups, as would be expected in any ageing population, the diseases of later life such as cancer, heart disease and cerebral accidents again showed a rise.

At the invitation of Government, Professor F. Heaf, CMG, the Secretary of State's Adviser in Tuberculosis, and Dr Wallace Fox, of the Medical Research Council, visited Hong Kong and carried out an assessment of the current status of tuberculosis as a com- munity health problem. A report making recommendations on future policy and research has been submitted and is under con- sideration by Government.

During March 1962 a survey of cases of tuberculosis newly diagnosed at Government chest clinics showed that 12 per cent of them had been in the Colony for six months or less. This number, when added to the total of new infections detected among permanent residents, poses a serious problem. Accordingly, following the sudden influx of immigrants in May and between the months of June and November, all applicants for identity card registration were X-rayed to assess the type and distribution of pulmonary disease that may be expected among people arriving from China.

      There was no easing of the pressure on clinic and hospital facilities. Without any significant increase in the number of hospital

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beds available, admissions during the year again increased by 15.4 per cent. This was achieved by using camp beds in wards. and on verandahs and by shortening as far as was possible the time spent in hospital. The building of the Queen Elizabeth Hospital, which will have 1,350 beds, is going ahead according to the time-table and this new institution will be opened during the third quarter of 1963. The re-development of the new Kwong Wah Hospital in Kowloon is also proceeding rapidly and it is anticipated that the 1,270 beds planned will be in use by the end of 1963.

The Anne Black Health Centre was opened in September and provides general out-patient, maternal and child health and mater- nity home services in the North Point district of Hong Kong Island. The clinic is named after Lady Black, the wife of His Excellency the Governor, as a tribute to the devoted service she has given to the people of Hong Kong. The building of the clinic was in- stigated by Dr Tang Shiu-kin and other Chinese benefactors, who subscribed half the capital cost, the remainder being met by Government.

At the Queen Elizabeth Hospital a specialist clinic donated and built by the Royal Hong Kong Jockey Club was also opened in September by Dr Douglas Laing, on behalf of the stewards of the Jockey Club. The clinic will be the centre in Kowloon to which patients can be referred for a consultant's opinion. Specialist out- patient clinics will be maintained by the clinical units in the Queen Elizabeth Hospital.

Vital Statistics. In 1962 the total of live births showed a slight increase on the figure for 1961. A total of 111,905 live births were registered as against 108,726 in 1961. The live birth rate dropped slightly from 34.2 to 32.8 per 1,000 of population. The crude death rate remained constant at 5.9 per 1,000 and there was a natural increase of 91,581 persons during the year. A table showing the principal statistics and rates over the 10-year period 1953 to 1962 is at Appendix VII.

      The infant mortality rate dropped to 36.9 per 1,000 live births, the neonatal mortality rate was 21.2 per 1,000 live births and the stillbirth rate was 13.7 per 1,000 total births. There were only 54 maternal deaths and the maternal mortality rate was 0.48 per 1,000

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total births. The perinatal rate, the deaths of infants under one week of age, was 24.9 per 1,000 total births.

CHOLERA

Following the outbreak of cholera in 1961, and the continuing incidence of cholera in nearby countries, special preventive measures were taken throughout the year. These consisted of routine bacteriological investigation for cholera of all specimens sent to the laboratory from cases of gastro-enteritis, and the routine sampling of nightsoil, sea water, well water and foodstuffs liable to be sources of transmission of cholera vibrios. In addition a mass immunization campaign against cholera was carried out in February, March and April, during which 53 per cent of the population received doses of standard vaccine of 8,000 million organisms per millilitre. Particular attention was paid to the boat-people, residents in the New Territories, waterfront communities and school children. In these population groups the percentage inoculated ranged between 85 per cent and 95 per cent. In all over 1,600,000 inocula- tions were given. Quarantine restrictions were maintained in respect of the Philippines and Kwangtung Province in South China, and were applied to Taiwan when it was declared infected.

      The first positive laboratory finding in Hong Kong during 1962 was from a case of suspected cholera admitted to the Lai Chi Kok Hospital on 22nd August. This was not an imported case and no contact with individuals coming recently from infected areas could be traced. The whole Colony was declared an infected local area on 23rd August, when the laboratory confirmation was received. Vibrio cholera El Tor was isolated, the strain being in all respects similar to those occurring in 1961. Between 23rd August and 20th September there were 10 cases of cholera, nine of which were confirmed bacteriologically. All cases were typical, the majority of the victims being severely ill. There was one death, the patient dying on admission to hospital after an illness lasting three days. All house contacts of the 10 clinical cases were isolated at the Chatham Road Quarantine Centre and among 126 contacts accommodated at the centre, only four contact carriers were detected. These were all contacts of the first case.

The usual environmental measures were applied, including in- creased chlorination of the public water supply, chlorination of all

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wells in the urban areas and vigorous inspection of public eating places, food premises, markets and hawkers. Particular attention was paid to the collection and disposal of nightsoil and to sam- pling of nightsoil for bacteriological examination. All inoculation centres were re-opened for cholera immunization and just over one million doses of vaccine were given during the outbreak.

It was possible to conduct a detailed epidemiological investiga- tion of each case that occurred and the results were consistently baffling. Specimens of foodstuffs in the infected premises were all cultured and were all negative for cholera. Positive swabs were, however, obtained from certain of the latrine buckets, from a chopping block used for the preparation of food in one instance and in several cases from water in kitchen drains and on floors. One roof tank used for flushing a water closet yielded vibrios but the well which supplied the tank was negative.

      On the night of 10th September the first specimen to give a positive culture from a tanker vehicle containing communal night- soil was obtained. This was in the course of routine random sampling and afterwards all tankers in use in the urban areas of Kowloon and Hong Kong Island were sampled nightly. Within the next 10 days positive cultures of cholera vibrios were obtained from tankers serving 12 collection routes in Kowloon and 10 districts on the Island. It was possible in three cases to trace the infection back through the hoppers serving the tankers to latrine buckets used in tenements. One bucket came from a communal latrine and further investigation was not possible. However, in the two other cases, one in a tenement and the other in a rooftop squatter community, rectal swabs were obtained from the residents. All these swabs proved negative.

On 8th October, no case having occurred since 20th September, the Colony was declared free of infection. Five days later another case of cholera was confirmed in a fishing village in the Yuen Long district in the New Territories. In view of the fact that vibrios had disappeared from communal nightsoil in the urban areas, and that this particular village community could be readily controlled from a quarantine point of view, only the district of Yuen Long was declared infected.

Epidemiological investigations again revealed a very interesting situation. The community, consisting of 410 people, were all

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rectally swabbed and 16 contact carriers were confirmed and placed in quarantine. Two of the carriers were members of the patient's family. Ten were children under the age of 10. Intensive sampling of the waters of the tidal river on which the village was situated, and of surrounding ponds used for rearing fresh water fish, pro- duced no cholera vibrios either agglutinable or non-agglutinable. All foodstuffs, particularly fish and fish fry, and other possible sources of infection were also consistently negative. The only com- mon source of infection appeared to be the child contact carriers who played together in the mud banks and swam in the river. The contact carriers were all treated with oral streptomycin and isolated until three successive negative specimens of stool had been obtained. No further clinical cases appeared and the district was declared free of infection on 29th October.

OTHER COMMUNICABLE DISEASES

      Notifications of other communicable diseases showed a sharp increase in the incidence of poliomyelitis, of chickenpox and of measles, but there were decreases in the numbers of cases of amoebiasis and diphtheria reported. Although mortality rates were lower for poliomyelitis and measles, the rate for diphtheria in- creased. Nevertheless, the over-all mortality rate was slightly lower than in 1961.

A table showing morbidity and mortality figures of communic- able diseases from 1958-62 is given at Appendix VII.

     Prophylactic inoculations. Facilities for free vaccination against smallpox, cholera, typhoid fever and diphtheria were available throughout the year at all Government hospitals, clinics, and centres. No specific campaigns against smallpox or enteric fever were organized as the extensive campaigns against cholera militated against such operations, as well as against the anti-diphtheria campaign. However, special attention was given to smallpox vaccination because of the smallpox situation in neighbouring countries and some 745,000 vaccinations were performed during the year.

     Tuberculosis. In spite of continuing satisfactory progress in the field of tuberculosis, the disease remained the principal community health problem in the Colony. Many thousands of unselected examinations carried out each year show that just under two per

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      cent of the adult population is in need of treatment for the disease, with a smaller percentage of active tuberculosis occurring below the age of 15. There is ample evidence that tuberculosis in infancy and early childhood is now relatively rare by 1951 standards, that the peak prevalence is in middle life and that most of the more intractable clinical problems occur above the age of 45.

       The mortality rate has fallen from 208 per 100,000 in 1951 to 55.3 in 1962, and there has been at the same time a remarkable change in the age distribution. In 1951 more than one-third of the deaths occurred below the age of five. Today the proportion has fallen to one-eighth, while above the age of 45 the proportion has risen from one-fifth to more than half, with a male preponder- ance of two to one. The mortality pattern today closely resembles that in the United Kingdom but is at a considerably higher level.

       In the field of prevention, improved economic conditions are having some effect but, while health education in the home, contact examinations, and X-ray surveys are proceeding, the principal specific measure aimed at tuberculosis prevention is the BCG vaccination campaign. The main emphasis of the campaign is directed to the vaccination of newborn babies.

       There are 1,748 beds available in the whole Colony for the treatment of tuberculosis, of which 1,490 are in Govern- ment assisted hospitals managed by the Hong Kong Anti-Tuber- culosis Association, the Junk Bay Medical Relief Council and the Tung Wah Hospitals Medical Committee. A total of 92,205 patients were admitted for treatment in hospital during the year. Among patients who accept admission for treatment the level of co-operation is excellent, there being only a very small proportion of discharges against medical advice. In addition, a rehabilitation scheme is now in operation. It was started by the Lutheran World Service as a pilot project; this scheme, in view of its success, is likely to become a permanent part of the overall treatment programme.

       During 1962, 81.6 per cent of babies born in the Colony received BCG vaccination within 48 hours of birth. The vaccine is issued free to all midwives, doctors and hospitals. Through the Govern- ment tuberculosis service all children under the age of three who are contacts of known adult cases are given prophylactic INAH for a period of 12 months if there is a tuberculin sensitivity reaction

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not known to have been due to BCG vaccination. Through the school health service, tuberculin testing and BCG vaccination where indicated is offered to all school children, and a house-to-house campaign has been conducted in an effort to reach children who are of school age but are not attending school. Toddlers attending the maternal and child health centres are also tuberculin tested and vaccinated when necessary.

      The tuberculosis control programme is a combined effort and the principal bodies participating are the Government tuberculosis service, which maintains Colony-wide facilities for diagnosis and ambulatory chemotherapy, the Hong Kong Anti-Tuberculosis Association, and the Junk Bay Medical Relief Council. Certain other hospital organizations, both charitable and private, also provide treatment facilities.

The Government tuberculosis service operates full-time and part- time clinics in all areas where the distribution of the population warrants such activities. All diagnosis and treatment is free. There are four full-time chest clinics equipped with radiological facilities and treatment is available at these and at 15 subsidiary centres. Treatment sessions are held in the evening at the four main centres for patients who cannot attend during the day.

Once a diagnosis of active tuberculosis has been made, a system of ambulatory chemotherapy is instituted. The standard treatment is intensive for the first six months, after which each case is reviewed. Those still infectious are admitted to hospital, while those responding satisfactorily are placed on a less intensive regime. In this way large numbers of active cases are rendered sputum negative and can live at home and remain at work without danger to others. All contacts in the family of such cases are investigated and action is taken as may be necessary. Cases in need of hospital treatment for pulmonary or bone and joint tuberculosis are assessed for priority of admission as beds become available. Almoners attached to the tuberculosis service maintain social histories and operate a tuberculosis assistance fund for those in need of financial or material aid while under treatment. There is a staff of tuberculosis workers who undertake home visiting, health education, clinic duties and contact tracing. They also investigate the circumstances of those defaulting from treatment.

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During the year a total of 29,904 patients received continuous anti-tuberculosis chemotherapy on an ambulatory basis at Govern- ment clinics and a total of 1,619,604 attendances were recorded. There has been a drop in the total attendances compared with last year, due to a re-arrangement of treatment schedules. Case finding by means of X-ray surveys is carried out by Government. There is an annual X-ray survey of all civil servants, while free surveys are carried out, on request, in schools and in industrial or commercial concerns. Certain conditions regarding sick leave and re-employment of proved cases are required of employers who wish to avail themselves of the survey facilities.

Hong Kong Anti-Tuberculosis Association. Most hospital treat- ment for cases referred from the Government tuberculosis service is undertaken in the non-profit-making Grantham Hospital. The hospital has 568 beds, 492 of which are maintained by Government on a daily fee paying basis. Beds are also available in the Govern- ment hospital at Lai Chi Kok for cases requiring medical treatment or special investigation. At the Ruttonjee Sanatorium and Freni Memorial Convalescent Home, where there is a total of 336 beds, patients are admitted direct and treatment is free. Many beds are maintained by organizations in Hong Kong and patients sponsored for these beds have a certain priority of admission. The hospital is staffed by the St Columban Order of Sisters and the consultant services are supplied by the professorial units of the University of Hong Kong. An annual recurrent subvention is made by Government.

The Anti-Tuberculosis Association also maintains at its head- quarters a BCG clinic, a follow-up clinic and a health education section. The policy of the association is formulated by a board, and the hospitals are managed by the Grantham Hospital and Ruttonjee Sanatorium Management Boards respectively. Both hospitals offer approved training courses leading to the British Tuberculosis Association certificate in tuberculosis nursing.

Haven of Hope Sanatorium. Managed by an executive committee of the Junk Bay Medical Relief Council, the Haven of Hope Sanatorium now has accommodation for 230 cases of tuberculosis. There are two units one for rehabilitation prior to resettlement and the other an observation centre for child contacts who have a positive tuberculin test. Government maintains 80 beds by means

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of an annual subvention for the treatment of tuberculosis among villagers in the New Territories. The remainder of the beds are sponsored by voluntary and missionary bodies, which pay annual maintenance costs or guarantee the daily cost of maintenance of the patients they sponsor.

      The Tung Wah Group of Hospitals maintains between 250 and 300 beds for the treatment of more chronic forms of tuberculosis. Other institutions receiving support from Government which admit cases of tuberculosis infection are the Alice Ho Miu Ling Nethersole Hospital, the Sandy Bay Crippled Children's Home and the Haven of Hope Leprosarium.

SOCIAL HYGIENE SERVICE

Venereal diseases. Free clinics are maintained in Hong Kong, Kowloon and the New Territories for the diagnosis, treatment, and surveillance of venereal disease. The notifications of primary syphilis were higher again this year, partly associated with a world- wide increase. The incidence of gonorrhoea remained at about the same level as in previous years, while chancroid and lympho- granuloma showed a reduction of approximately half. The con- tinued general improvement in the overall picture of venereal disease is attributable to expansion of epidemiological control measures. These consist of contact tracing, the follow-up of defaulters from treatment, and the surveillance of patients after completion of treatment. In addition blood tests are freely available to all pregnant women and, as a result, mortality from congenital syphilis has been almost completely eliminated.

       Leprosy. Sixteen out-patient sessions are held weekly throughout the Colony solely for the diagnosis and treatment of leprosy. In addition sessions are held at social hygiene centres in conjunction with dermatology and venereal disease clinics. New infectious cases and patients in reaction or in need of surgical rehabilitation are normally admitted to the Hei Ling Chau Leprosarium which is maintained by the Hong Kong Auxiliary of the Mission to Lepers. A small number of beds is available in Government hospitals for the orthopaedic treatment of deformities. Dapsone continued to be the drug of choice for routine treatment of the disease, while diphenyl thiourea is available for patients showing intolerance to dapsone.

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Epidemiological control is based on contact investigation, the follow-up of defaulters from treatment and the vaccination of child contacts with BCG. The main difficulty encountered is the un- willingness of many contacts to return for further examination after a year because they neither see nor feel any sign of the disease. A further problem is the resettlement of cured patients in suitable employment, and this is the subject of continuing effort. Dermatology. Treatment is given free at a number of out-patient sessions for the diagnosis and treatment of skin conditions. This has the valuable incidental advantage of assisting in the detection of leprotic and syphilitic lesions.

       Malaria. Malaria continues to be endemic but is largely restricted to certain parts of the uncontrolled rural areas. About 90 per cent of notified cases came from these uncontrolled areas, Sai Kung accounting for about two-thirds of the total. None of the few cases appearing in the urban areas during the year could be traced to infection contracted there. The important carriers of malaria are A. minimus found breeding in certain hill streams, seepages and irrigation ditches, and A. jeyporiensis var. candidiensis which breeds in rice cultivation, fallow rice fields, pools in rice stubble, and water flowing through grass. Other anopheline species found in the Colony play little or no part in malaria transmission.

Malaria control in the urban areas is based chiefly on anti- larval measures consisting of draining and clean-weeding streams, ditching and oiling. Anti-malaria oil continued to be employed as the main larvicide, although Gammexane Dispersible Powder and Diazinon are also used on a limited scale in areas where the application of oil is not suitable. These anti-larval operations against anopheline breeding afford protection to over 2,500,000 people living within the urban areas of Hong Kong, Kowloon and New Kowloon and in certain circumscribed zones in the New Territories. In the remainder of the New Territories control by anti-larval measures is not at present practicable.

Paludrine prophylaxis continues as the main line of defence against malaria for disciplined groups stationed in the New Territories. Malariometric surveys were carried out from time to time. These showed that spleen and parasite rates in children aged two and nine ranged from zero to 14.9 per cent and zero to 7.8 per cent respectively. Throughout the year blood smears were

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taken from all children found with febrile conditions at Govern- ment clinics in the New Territories and positive cases were followed up for treatment. Mosquito dissection was carried out for entomo- logical purposes. Of 1,082 A. minimus and A. jeyporiensis var. candidiensis and of 152 other possible vectors examined, none was found with sporozoites.

      Diphtheria. Due to the rapidly increasing number of young children and the poor response to the facilities for immunization, there has been little significant decline in the incidence of diphtheria during recent years. The main foci of the disease are in the densely populated tenement areas of Kowloon and New Kowloon. Over 75 per cent of the cases were in children under the age of 10, with more than 50 per cent under the age of five. The case fatality rate from diphtheria has shown a continuing decline during recent years, being 10 per cent during 1962 compared with 10.5 per cent in 1956.

      In previous years an intensive immunization campaign was held during the cooler months between September and February. In 1962, except for the period of the cholera outbreak, the campaign was continued throughout the year, with emphasis on inoculation facilities being made available as near as possible to the home. House-to-house visits were conducted for the greater part of the year in resettlement estates and other crowded areas, and teams of inoculators visited squatters both on hillsides and on rooftops. Continuous use was made of publicity media to stress the dangers of the disease and to inform parents of the facilities available for the protection of their children. Despite this there are still a great many children under 10 who have, as yet, no protection against the disease.

      Enteric Fever. The trend followed the pattern of the past, with the greatest incidence in the third quarter of the year. The highest monthly peak was in July. Although no mass anti-typhoid cam- paign was organized during the year free inoculation at all Govern- ment clinics and vaccination centres continued to be available to all on request. The usual control measures were enforced, including supervision of restaurants and eating houses and the education of the public in matters of personal hygiene and general sanitation. Special attention was paid to food handlers.

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      Poliomyelitis. Morbidity returns were the highest ever recorded, being some 101 higher than the previous maximum of 262 notified in 1958. Most of the cases occurred, as usual, in the summer. The case fatality rate was 14.3 per cent. A series of virus excreter surveys was made at intervals during the year, to obtain a picture of the enterovirus position at varying times. This in- formation, plotted in graph form, was used in planning an oral poliomyelitis mass vaccination campaign to be held early in 1963. The graph has indicated the optimal time for such a pro- gramme. In addition a small investigation was performed with the co-operation of other interested bodies into the results of feeding oral trivalent vaccine in a group of young children. Con- version rates were satisfactorily high and averaged 96 per cent.

      The Dysenteries. In recent years there has been a gradual in- crease, associated with the increasing numbers of the population at risk, in both amoebiasis and bacillary dysentery, but the mor- tality continues to remain low.

       Measles. This infection is most prevalent during the cooler months and analysis shows a tendency toward a regular interval of 16-18 months between peaks of incidence. The incidence re- mained low after the extensive epidemic early in 1961, until the last quarter of 1962 when an appreciable increase was observed. The number of deaths, mainly due to bronchopneumonia, remained high, reflecting the incomplete notification of this disease. Generally speaking, only complicated cases are notified and the majority of milder cases pass unnoticed or are treated by herbal medicines.

The fatality rate for cerebrospinal meningitis was 70 per cent although the total notifications were much as before. There was a slight increase in whooping cough, and in notifications of ophthalmia neonatonum. Two fatal cases of puerperal fever were recorded, these being associated with deliveries at home by unqualified midwives.

HEALTH SERVICES

       Port Health. The port health service is responsible for enforcing the provisions of the International Sanitary Regulations, as em- bodied in the Quarantine and Prevention of Diseases Ordinance. It is also responsible for the correlation and dissemination of epidemiological information on communicable notifiable diseases,

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and for the supervision of immunization campaigns against cholera, smallpox, enteric fever, and diphtheria. Four inoculation centres are maintained for the issue of international certificates of vaccina- tion to people travelling abroad. Advice on medical problems is transmitted by radio to ships at sea.

A regular exchange of epidemiological information is maintained with the World Health Organization and with ports and airports in other countries. Medical inspections of passengers arriving by land, sea and air are carried out as necessary at the respective quarantine stations at the points of entry, and quarantine measures are enforced against travellers from ports and airports infected with smallpox and cholera.

      Sanitary control of the port and airport is also the responsibility of the port health service. These areas were kept free from Aedes aegypti throughout the year. There is regular supervision of the purity of water supplied by dock hydrants and water boats, and of the airport catering service. Inspection of ships to determine the extent of rat infestation is carried out by members of the port health staff. International deratting certificates were issued to 90 ships after fumigation, while deratting exemption certificates were issued to 169 ships after inspection. The dock area and airport are included in the rodent control scheme for the Colony and returns of rats destroyed and of bacteriological examinations for plague are submitted weekly to the World Health Organization's international quarantine service.

      Maternal and Child Health. During the year, as in previous years, the vast majority of confinements took place in recognized institutions. The proportion is usually 95 per cent or more. Deliveries are distributed between the maternity wards of hospitals and maternity homes with a slight preponderance in favour of the latter. Less than five per cent of deliveries are undertaken by domiciliary midwives, either private or Government.

      The Government midwifery service was augmented by one maternity unit and there are now 26 district centres, of which six are domiciliary. There are in addition 160 registered midwives practising privately from 115 maternity and nursing homes. All registered maternity homes are inspected regularly by the super- visor of midwives and her staff to ensure that conditions of registration are followed and that there is a sufficiently high

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standard of midwifery practice by registered midwives not working under the direct supervision of a doctor.

        The maternal and child health service offers free maternal and child care at 29 centres, 10 of which are full-time. The staff of the service hold infant welfare and toddler clinics for children up to two years of age and from two years to five years respectively. Ante-natal and post-natal sessions are also held at these centres. Health visitors pay home visits when necessary to babies attending the clinics and also to the homes of new-born babies whose names appear in the monthly birth returns.

Health education forms a most important part of the maternal and child health work and consists of practical demonstrations, health talks illustrated by various types of visual aids, individual advice to mothers, and the distribution of booklets and pamphlets. The response is very encouraging and there is increasing public appreciation of the value of the expert advice and guidance offered. Vitamins, iron preparations, and UNICEF skimmed milk powder are distributed widely, and full-cream and half-cream milk powders are available for children who, in the opinion of medical officers or almoners, are in need of such dietary supplements.

Prophylactic immunization against smallpox, diphtheria, per- tussis and tetanus is offered in all centres, and over 93 per cent of children attending the infant welfare and toddler sessions re- ceived such protection. BCG is given to all children attending centres who have a negative tuberculin test, while INAH is given to children aged three years or under who have a positive tuber- culin test not due to BCG. Demonstrations of the techniques of handling and giving BCG are given to midwives in private practice.

School Health Service. The existing school health service is organized in two sections-a general health service for all schools, and a medical and dental treatment service for pupils and teachers participating in a fee-paying scheme. The general health service is concerned with the sanitary condition of school premises, the control of communicable disease, and the health education of children, teachers, and parents. All building plans are scrutinized before the registration of a school is recommended and there is regular inspection of the sanitary condition of school premises. Free prophylactic immunization against diphtheria, typhoid, tetanus, and smallpox is offered to all school children, and

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inoculating teams regularly visit all registered schools. Tuberculin testing is also carried out, negative reactors being vaccinated with BCG.

      Children participating in the medical treatment scheme undergo periodic medical inspections in addition to treatment that may be given for any intercurrent disease. Defects are either treated in school clinics or referred to eye, ear, nose and throat, dental, or other specialist clinics. Cases referred for hospital treatment are charged maintenance fees only, while appliances such as spectacles are provided either at cost, at a reduced charge or free, depending on an almoner's recommendation. The school dental service under- takes routine dental examinations and limited conservative treat- ment of those school children who participate in the scheme. Certain aspects of the school health service have been under review for some time and it is expected that recommendations will be made in the near future. Pending a decision, new entrants are being restricted and there has been a gradual lessening in numbers as older pupils leave school.

        Industrial Health. The work of the industrial health section of the Labour Department, which is staffed by members of the Medical and Health Department, is described in chapter 3.

Mental Health. The Castle Peak Hospital, which has 1,000 beds, includes one block of 120 beds for the treatment of drug addicts. This is designed to make treatment available to addicts who are prepared to surrender their freedom voluntarily for a period of up to six months. After medical and nursing care during the period of withdrawal from the addicting drug, there is a programme of rehabilitation designed to restore confidence and re-establish the individual in the community. By the end of the year a number of voluntary patients had been discharged and group psychotherapy was continuing through a club which had been established with the help of the staff of the treatment centre. A psychiatric clinic for the treatment of out-patients continued its work at the old Mental Hospital, which also provided some limited day hospital accommodation.

        Health Education. Health education covers a wide field and is an integral part of the activities of all branches of the Medical and Health Department. The maternal and child health service is particularly active in this sphere. The inter-departmental

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committee on health education, formed in 1959, continued to con- centrate its efforts on assisting the anti-diphtheria campaign men- tioned previously and on other subjects of public health importance. The health education select committee of the Urban Council organized publicity campaigns on many aspects of environmental hygiene throughout the urban areas, while the industrial health section of the Labour Department and the Social Welfare Depart- ment were also very active in their respective spheres. Kaifong associations co-operated with Government in immunization cam- paigns and in education on environmental hygiene. Many of these associations run their own health committees and take a lively and practical interest in the health problems of their respective districts.

HOSPITALS

       A total of 10,017 hospital beds (see Appendix VII) are available in Hong Kong for all purposes. This figure includes maternity and nursing homes but not institutions maintained by the Armed Forces. Of these beds, 3,680 are in Government hospitals and institutions and 4,473 in Government assisted hospitals, while the remaining 1,864 are provided by private agencies. Apart from beds assigned to the care of the mentally ill and the treatment of tuberculosis and infectious diseases, there are 6,229 beds available for all general purposes, including maternity. This gives a ratio of 1.8 beds per thousand of the population. The figures quoted are based on the normal bed-capacities of the various hospitals, but in many cases the actual occupancy is much higher as camp beds are used extensively whenever the need arises.

Government maintains two large general hospitals for casualties and emergency cases and for cases in need of specialized investiga- tion and treatment. These are the Queen Mary Hospital of 623 beds, on Hong Kong Island, and the Kowloon Hospital of 574 beds, situated in the centre of Kowloon. The former is also the teaching hospital for the medical faculty of the University of Hong Kong. Both hospitals are training schools for nurses. Other Govern- ment hospitals are maintained chiefly for specialized purposes. These include a mental hospital of 1,000 beds, two infectious disease hospitals (one of which also accommodates convalescent cases from Kowloon Hospital), a maternity hospital of 200 beds where the training of midwives and the teaching of medical

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students is carried out, and a small hospital for the treatment of skin and venereal diseases in women and children. Two smaller general hospitals are provided. These are the St John Hospital of 100 beds on Cheung Chau Island and one of 15 beds opened in 1960 in connexion with the Shek Pik water scheme on Lantau Island. In addition small hospitals are maintained in four of the Colony's prisons and maternity beds for normal midwifery are provided in many Government clinics and dispensaries, mainly in the New Territories.

      The Tung Wah Hospital Board is an entirely Chinese charitable organization. Founded some 90 years ago it operates a group of four hospitals-the Tung Wah Hospital, the Tung Wah Eastern Hospital and the Sandy Bay Infirmary on Hong Kong Island, and the Kwong Wah Hospital in Kowloon. The board of directors also undertakes responsibility for educational and relief services to the poor and needy of Hong Kong. These hospitals, which receive a large Government subvention, make a valuable contribution to the Colony's medical facilities and are gradually being modernized. The board of directors is at present carrying out a plan to replace in five stages the existing Kwong Wah Hospital by a modern general hospital of 1,270 beds. Work has begun on the fourth stage which includes the construction of medical officers' quarters and completion of the nurses quarters. Planning for the fifth stage is well advanced. Near Yuen Long in the New Territories a long- established Chinese charitable organization operates the Pok Oi Hospital of 118 beds with the assistance of a Government sub- vention. Hospitals maintained by the Hong Kong Anti-Tuber- culosis Association are the Ruttonjee Sanatorium, the Freni Memorial Convalescent Home, and the Grantham Hospital. The latter is a non-profit-making institution which provides accom- modation for fee-paying patients.

      A number of general hospitals, varying in size from 70 to 300 beds, are maintained by missionary and other charitable organiza- tions. In addition, the Hei Ling Chau Leprosarium maintained by the Mission to Lepers (Hong Kong Auxiliary) provides accom- modation for 540 leprosy patients. The Haven of Hope Sanatorium is maintained by the Junk Bay Medical Relief Council and has accommodation for 230 tuberculosis patients. Several of these in- stitutions receive substantial financial assistance from Government

The Anne Black Health Centre, opened in September, serves the residents of North Point. It has an outpatients' department, maternity ward and child health clinic (left).

was

Also opened in September the Queen Elizabeth Hospital Specialist Clinic (below). Its outpatient con- sultant facilities include med- icine and orthopaedics.

Cholera made a re-appear- ance in the Colony in August and production of vaccine was immediately stepped up (above). Nearly 1,200,000 people were inoculated.

People living in even the remotest villages were given their anti-cholera 'jabs,' often by a nurse accompanying the flying doctor (right). The disease was contained.

15

Young polio victims (above) are watched by their mothers as they splash around in a warm water tank at a Government polyclinic before beginning exercises designed to restore movement to their limbs. A small number of chronically sick adults can be cared for at Hong Kong's Cheshire Home (below), situated in a former Army camp near Stanley.

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while others are supported in varying degrees by fees, voluntary donations and grants from mission funds. In a number of instances, where a proportion of low cost or free beds is maintained, and where any excess of income over expenditure is put toward hospital development, land is granted without premium and the rates are refunded through a Government subvention.

OUT-PATIENT CLINICS AND SERVICES

The growth of population and the increasing demand for treat- ment by western medicine has called for a rapid expansion of out-patient facilities, both by Government and by private agencies. Attendances at Government out-patient centres alone have in- creased by 79 per cent during the last five years. Government main- tains 48 out-patient clinics and dispensaries of varying size and scope. In addition out-patient specialist sessions are held at a number of centres in the urban areas, while in the New Territories the larger clinics are visited by specialist teams from Hong Kong and Kowloon. The remoter areas of the New Territories are served by two mobile dispensaries and two floating clinics. The latter are launches, donated by the Royal Hong Kong Jockey Club, which visit isolated centres on the eastern and western coasts. To meet the need for medical aid in the remoter inland villages there is a fortnightly service by helicopter. This service is very popular and was extended during the year.

A road ambulance service is maintained throughout the Colony by the Hong Kong Fire Services Department. Evacuation of cases. of serious illness from regions not readily accessible by road is carried out by helicopter, by fast police launch and by floating clinic. In addition to the Government out-patient services many charitable and missionary organizations take an active interest in medical and health problems. Kaifong, district and clansmen's associations support a total of 36 clinics giving treatment free or at nominal cost. A number of industrial and commercial concerns also operate clinics for their employees and many trade unions provide similar services for their members.

SPECIALIST SERVICES

In Government hospitals there are clinical specialists in anaesthe- tics; chest surgery; dentistry, ear, nose and throat diseases; eye

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diseases; general medicine; general surgery; neuro-surgery; obste- trics and gynaecology; orthopaedic surgery; psychiatry; pathology; radiodiagnosis and radiotherapy. There are also specialist clinics for tuberculosis and social hygiene, the latter including dermato- logy, leprosy, and venereal disease. The malaria bureau, the Government chemist's laboratory, and the forensic pathology laboratory also provide specialist services.

       The Government Institute of Pathology maintains clinical pathology and public health laboratory services. Autopsies at the public mortuaries are carried out by forensic pathologists. There are blood banks at the Queen Mary and Kowloon Hospitals and the Hong Kong branch of the British Red Cross Society operates two blood collecting centres for the voluntary donation of blood. The Institute of Pathology carries out laboratory work for the blood banks. The Government Chemist is responsible for the work of an analytical laboratory which undertakes a wide range of investigations concerned with food, water supplies, narcotics, medico-legal work and dutiable commodities. A considerable amount of investigation into the standard of commodities supplied to Government under contract is also performed.

DENTAL SERVICES

The Government Dental Service operates in two divisions-a school and a general dental service. The school dental service carries out examinations and treatment for children who participate in the school health scheme. The primary school population alone numbered nearly 600,000 children and the adequate dental treat- ment of this large number would require more dentists than there are in the Colony as a whole. The accent was therefore placed on dental health education and the training received by dental nurses in this type of work has proved invaluable.

The general dental service undertakes complete dental care for all monthly-paid Government officers and their families and a limited treatment programme for in-patients of Government hos- pitals, prisoners, and inmates of training centres. The division also provides a limited emergency service for the general public at certain clinics. There are 25 Government dental clinics, including one at Tai O on Lantau Island which is visited by a dental team

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      for one month every half year. A mobile dental unit serves the New Territories.

Voluntary Agencies. Three years ago the Church World Service was the first of the welfare organizations to put a mobile dental clinic on the roads of the New Territories. The clinic now serves the Salvation Army Girls Home at Kwai Chung, St Christopher's Home, the Haven of Hope Sanatorium, and the areas of Tsuen Wan, San Hui, Yuen Long, Sheung Shui, Tai Po, and Sha Tin. During the past year an average of over 800 patients a month have received treatment. A small fee is charged to help cover part of the costs. A new mobile unit is now being planned.

       The Lutheran World Service also operates a mobile dental clinic which visits eight resettlement estates. There is also a dental clinic at the Lutheran World Service Hospital in Fanling, the staff being in attendance on two mornings each week. The Hong Kong Dental Society operates free clinics and provides a part-time dental service in Hong Kong and Kowloon as well as volunteer dental surgeons for the Ruttonjee Anti-Tuberculosis Sanatorium and St John Ambulance Brigade teams visiting the outlying islands.

       The St John Ambulance Brigade maintains a dental clinic at its headquarters, where two dentists provide free treatment for blind and crippled children and for children from orphanages and in- stitutions. Other voluntary bodies and welfare organizations main- tain free or low cost dental clinics and many dentists give their services free of charge. At the end of the year more than 400 dentists were registered for practice in the Colony.

Fluoridation of the Colony's urban water supplies began in 1961. The first post-fluoridation dental survey was carried out in 1962 and similar surveys are planned to take place every two years. It is expected that the enrichment of the Colony's water by 0.7 parts per million of fluoride in the summer months and by 0.9 parts per million during the winter months will bring about a marked reduction in the incidence of dental caries.

Dental health education plays a large part in the preventive measures which have been adopted to combat the very high in- cidence of dental disease in Hong Kong. A dental health exhibit was included at the agricultural show at Sai Kung featuring the mobile dental clinics operated by Government, the Church World

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      Service and the Lutheran World Service. During Chinese New Year a second exhibit was arranged as part of the fisheries exhibi- tion in Aberdeen. Dental officers and auxiliaries gave instruction in dental health and oral hygiene to over 23,000 people, mostly fisher-folk, who passed through the dental health stall. In July the Kaifong associations staged a health exhibition where again the opportunity was taken to present the facts of dental health and the principles of oral hygiene to an estimated 150,000 people. In September the Hong Kong Dental Society sponsored the second dental health week to be held in the Colony. The rules of oral hygiene were stressed in the schools and prizes were offered to children who recognized 'Mr Golden Toothbrush' in the streets and were able to answer questions on the rules for dental health.

TRAINING

Doctors. Undergraduate training is carried out at the University of Hong Kong, which confers the degrees of MB, BS; these degrees have been recognized by the General Medical Council of the United Kingdom since 1911. Post-graduate clinical training is available in the Colony for higher qualifications awarded by most of the examining bodies in Great Britain. The Panel on Post-graduate Medical Education, consisting of university and Government staff members, supervises this training and advises on both general and individual aspects of the programme. It is mainly due to this pro- gramme that 59 per cent of the specialist appointments in the Medical and Health Department are now held by locally recruited staff and that there is a progressive increase in the number of medical officers who have been able to obtain higher qualifications in various branches of medical science.

Dentistry. Hong Kong has no local facilities for training in dentistry and although the proposal to establish a faculty of dental science at the university has been approved in principle it has not yet been possible to give this project a high priority. In the meantime a Government dental scholarship scheme each year enables a number of students from Hong Kong to study dentistry overseas and ultimately to qualify as dental surgeons.

       Nurses. There are two Government schools of nursing. These are the School of Nursing in the grounds of the Queen Elizabeth

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Hospital in Kowloon, and the School of Psychiatric Nursing at Castle Peak Hospital. In addition to these two schools, where training is carried out in English, there are approved schools of nursing at the Tung Wah Hospitals, the Alice Ho Miu Ling Nethersole Hospital and the Hong Kong Sanatorium and Hospital, in all of which the medium of instruction is Cantonese. The examinations are held by the Hong Kong Nursing Board. There is full reciprocity of registration between the Nursing Board in Hong Kong and the General Nursing Council of England and Wales, and each year a number of qualified general nurses go overseas to gain further experience in different aspects of their profession.

      Midwives. The great majority of female nurses on completion of their general nursing training take a midwifery course of one year, which qualifies them for entry to the examinations held by the Hong Kong Midwives Board. The course is conducted in English at Government hospitals, and in Cantonese at the other approved schools. For student midwives who are not registered nurses a two-year course of training at the Tsan Yuk Maternity Hospital is accepted by the Midwives Board for entry to the examinations. Training is in Cantonese. Due to the limited scope of domiciliary midwifery, adequate practical training in this aspect cannot be given. Full reciprocity of registration with the Central Midwives Board of England and Wales is therefore not possible in present circumstances.

      Health Visitors and Health Inspectors. The examination board in Hong Kong of the Royal Society for the Promotion of Health conducts examinations for the health visitor's certificate, the public health inspector's certificate, and the tropical hygiene certificate. A course for the health visitor's certificate is conducted by the Medical and Health Department, while training for the public health inspector's certificate and the tropical hygiene certificate is carried out within the Urban Services Department. Examinations for the meat and other foods certificate and the advanced sanitation certificate of the society are not held in Hong Kong and candidates for these additional qualifications normally undergo training in the United Kingdom.

Radiographers are trained by the radiological service of the Medical and Health Department for the examinations leading to

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membership of the Society of Radiographers, which are also held locally.

Other Training. Departmental training leading to study leave abroad for recognized qualifications is given to physicists and medical laboratory technologists. In-service training for depart- mental examinations is available for dispensers and laboratory technicians. A qualified physiotherapy tutor supervises a training centre in physiotherapy based on the curriculum of the Chartered Society of Physiotherapists. There is also provision for a limited number of pharmacy scholarships tenable in Australia, under which students are sent to study for the degree of B Pharm. A scheme for training surgical appliance technicians was started during the year.

URBAN SERVICES

The Urban Council has statutory obligations in the urban areas of the Colony for environmental sanitation and hygiene; the public health control of food; the enactment, subject to the approval of the Legislative Council, of by-laws relating to public health and hygiene, and for their enforcement; the maintenance of certain places of public recreation, principally parks, playgrounds and bathing beaches; and the operation of multi-storey car parks and the City Hall.

The Council derives its main powers from the Public Health and Urban Services Ordinance, 1960, and by-laws enacted thereunder. It is responsible, through the Urban Services Department, for the enforcement of this legislation within the urban areas of the Colony. The department has a staff of 9,880 and is organized for adminis- trative purposes into three main divisions. One deals with clean- sing, conservancy, cemeteries and crematoria, one with food and general hygiene, and the other with hawkers, markets, slaughter- houses and public amenities. Most of these divisional responsibili- ties have been extended to the New Territories and, for the purpose of co-ordinating activities, a separate division has been set up under the control of an Assistant Superintendent of Urban Services. On the establishment of the department there are 326 adminis- trative, professional, executive and clerical officer posts, excluding the health inspectorate which consists of 348 officers, of whom 275

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have passed the examination of the Royal Society for the Promo- tion of Health. In addition, there is a disciplined Hawker Control Force, under a gazetted officer seconded from the police, which has an approved complement of 337 including inspectors, non- commissioned officers and constables.

HYGIENE SECTION

      District Health Work. The hygiene division is responsible, through the district health staff, for maintaining proper standards of environmental hygiene in the urban areas, both in domestic premises and in premises licensed by the Urban Council. The division is also responsible for environmental health measures for the control of infectious diseases in co-operation with the Medical and Health Department.

For administrative purposes, the urban districts of Hong Kong and Kowloon are divided into 12 health areas, each consisting of six to nine health districts made up of two or three health units of about 600 floors each. The district health organization is under the general supervision of a Superintendent and Assistant Superin- tendent (Hygiene). They are assisted in the field by four chief health inspectors, each in charge of three health areas, senior health inspectors in charge of each health area, and district health inspectors who are responsible for individual health districts. Pressure upon district health inspectors necessitated a sub-division of some health units in north Kowloon during the year.

Another important task of the district health staff is the hygienic control of food premises. Restaurants, cooked food stalls, food factories and other places where food is handled are inspected weekly to make sure that they are kept clean and operated hygieni- cally. Night inspections of restaurants are also carried out to ensure that hygienic practices are maintained during this important period. In addition to this, senior officers carry out weekly surprise checks on all premises licensed by the Council. Five health officers, seconded by the Medical and Health Department, act as profes- sional advisers on matters of environmental hygiene and in in- fectious disease control. The district health inspectors assist them in this, their work including investigation of cases of infectious

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disease, tracing of the source of infection and of contacts, hospi- talization of patients, disinfection of infected premises and advice on precautionary measures.

Seven food inspectors carried out food sampling and other food hygiene duties in Hong Kong and Kowloon. Particular attention was paid to all food factories, especially ice cream and milk factories from which samples were taken regularly, and to the sale of diseased meat. Several large seizures were made during the year. Samples of imported fruit and vegetables from China, Taiwan and the Philippines were examined for cholera organisms. Samples of water from public swimming pools were taken monthly for bacteriological examination.

All district health staff were called upon to assist in controlling an outbreak of cholera in late August. Raids were carried out day and night on sellers of prohibited and dangerous foods, anti- fly measures were intensified, and hygienic control of restaurants, food factories and cooked food stalls were tightened up. Sales of cut fruit and other prohibited foods decreased rapidly after public warnings were given.

       The health education programme for the year again emphasized the need for improved health consciousness, and publicity was co- ordinated with a positive programme of health measures over a wide area, including the New Territories. The 'Miss Ping On' competition took place for the fourth time with the object of raising the standard of hygiene and cleanliness in the Colony's resettlement estates, which by the end of the year had a population of well over 400,000. More than 60,000 tenants participated and prizes awarded to winners amounted to over $5,000.

Slaughterhouses. Food animals slaughtered at the two Govern- ment slaughterhouses, one on Hong Kong Island and the other in Kowloon, totalled 101,553 cattle, 1,319,169 pigs, and 9,880 sheep/ goats. The bulk of the cattle came from Thailand and Cambodia, while China was again the major pig supplier. The sketch plans for the new abattoirs at Kennedy Town and Cheung Sha Wan were approved and working drawings were put in hand.

       Facilities in the by-products plant, which hygienically deals with all diseased meat and unfit foodstuffs from the two slaughterhouses and other sources, were taxed to capacity throughout the year. A comparatively small amount was salvaged by manufacture into

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      meat and bone meal for animal feed and inedible grease for industrial use, but the bulk of the unsafe raw materials had to be disposed of either by rendering down to harmless wastes for dumping, or by costly and time-consuming incineration.

Hawkers and Markets. Progress was made on reconstructing markets to meet the growing demands caused by an increasing population. Toward the end of the year the new Tang Lung Chau market was completed and sketch plans for the new North Point market drawn up. It was decided in planning new markets to include a working passage behind stalls and to provide space inside the building for hawkers.

There was an appreciable increase in the number of pedlar hawkers, and Kaifong associations assisted the gradual spread of control over hawkers by allowing their premises to be used for weekly talks. Proposals were made during the year for the erection of roofs over hawker bazaars in all existing and future resettlement estates. Without these roofs, hawkers tend to protect themselves and their goods from sun and rain by putting up ramshackle awnings and shades which gradually assume an unacceptable degree of permanency.

        Hawker Control. The Hawker Control Force reached its full strength of 337 all ranks, comprising a commandant, one senior inspector, four police inspectors on secondment, four sub-inspec- tors, one senior sergeant, 20 sergeants and 306 constables. Control operations were extended to the Western District of Hong Kong and the Yau Ma Tei and Mong Kok districts of Kowloon. As more transport, office accommodation and men become available, the aim of the Force is to move into other areas of Kowloon and Hong Kong, and though this extension will cover most of Hong Kong Island it will still leave much of the mainland untouched. The supervisory staff of the Force still consists, in the main, of seconded police officers, but during the year four sub-inspectors were recruited directly into the Hawker Control Force.

       Public Latrines and Bathhouses. Two combined public latrines and bathhouses were built during the year in congested parts of Kowloon. In all there are 138 public latrines and 31 bathhouses in the urban areas. Hot and cold water is provided free of charge at the bathhouses, which were used by 740,217 people during the year, a daily average of 2,028.

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Cleansing and Conservancy. Approximately 4,000 workers were employed in the daily collection and disposal of refuse and street cleansing, using 94 refuse collection vehicles and eight refuse barges. The amount of refuse collected was, by the end of the year, about 1,200 tons a day. Household refuse is collected twice daily in congested areas, elsewhere once daily. All refuse collected in Kowloon is transported by road to a reclamation area at Gin Drinker's Bay for disposal by controlled tipping at the foreshore. Refuse collected on Hong Kong Island is transported by barge to the same dump. Dumping added approximately 78,000 square feet to the reclamation during the year. Streets are swept daily from two to four times depending on locality and congestion. Sixteen street-washing vehicles were employed to wash roads, scavenging lanes, gutters, foot-paths, markets and hawker areas. A conservancy service collected and disposed of nightsoil from 35,000 floors with dry latrines, approximately 1,100 workers, mostly female, with 46 tanker vehicles and three tanker barges being employed. The service is free.

Cemeteries and Crematoria. There are three main public ceme- teries under the direct control and management of the Urban Council, together with a number of private cemeteries. There is also a Government crematorium at Diamond Hill in Kowloon. During the year the construction of a modern crematorium at Cape Collin- son, at the eastern end of Hong Kong Island, was completed and the building brought into service. Private Chinese, Roman Catholic and Muslim cemeteries are being developed in the same area. The Director of Urban Services acts as local agent for the Commonwealth War Graves Commission, on whose behalf he is responsible for the Sai Wan War Cemetery and the Stanley Military Cemetery. The outgoing director of the eastern region of the Com- mission paid a farewell visit in March and his successor visited the Colony in June.

       Pest Control. Much of the routine work of the pest control sec- tion of the Urban Services Department consists of control measures against rats, mice, fleas, cockroaches, bed-bugs and biting midges. The section also carries out regular fly control surveys, with in- secticide treatment as necessary, at the Colony's main refuse dump at Gin Drinker's Bay. The work of rodent control is particularly important because examination of fleas found on rats enables a

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watch to be kept on the possible introduction of plague by infected fleas. During the year 319,934 rodents (including those placed by the public in rat-bins) were collected. Fleas from rats are regularly collected and identified in order to keep a check on the species known to be capable of transmitting plague.

NEW TERRITORIES

The Director of Urban Services is responsible in the New Territories for public cleansing, markets and hawker areas, public latrines and bathhouses, and also for cemeteries, burials, public parks, playgrounds and beaches. The District Commissioner is the licensing authority for premises used for the processing and sale of food for human consumption, for hawkers, private markets, slaughterhouses and offensive trades, though in practice he exercises his function on the advice of the Director of Urban Services.

The Principal Medical Officer of Health, New Territories, is responsible to the Director of Medical and Health Services for most hospital, clinic and other medical facilities in the New Territories. He also advises the Director of Urban Services on New Territories health matters, and exercises day-to-day super- vision over certain staff of the Urban Services Department. In the remoter areas of the New Territories, where the Urban Services Department cannot effectively operate, the Principal Medical Officer of Health has executive responsibility for sanitation and hygiene, as well as for the development of health services. Here the emphasis is on health education,

                health education, advising villagers on elementary sanitation, and ensuring that village houses are built to certain minimum health standards.

The Urban Services Department carries out regular street- sweeping and refuse collections in the New Territories townships, and during the year these were again extended to cover more of the rural areas served by road. Steady progress is being made with the construction of public flush latrines and bathhouses in the New Territories townships, and by the end of the year five combined latrine/bathhouses and six latrines were in operation. Hot and cold water is supplied free of charge in the bathhouses. Modern market buildings and hawker bazaars are also being planned for several townships.

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      In rural areas where there is no mains water supply the New Territories Administration builds public aqua privies under its local public works scheme. Twenty-five of these are now in opera- tion, of which 18 have been built as part of the rural sanitation scheme administered by the Principal Medical Officer of Health, New Territories.

10

Land and Housing

LAND

     Land Tenure. All land in Hong Kong is owned by the Crown. In the early days of the Colony, Crown leases were granted for 75, 99 or 999 years. Nowadays, except in the New Territories, they are granted for 75 years, renewable for a further 75 years at a re-assessed Crown rent. Crown leases for New Territories lands are now normally granted for a period of 99 years, less three days, from 1st July 1898, and therefore terminate three days before the expiry of the period of the lease from China.

      Land administration in Hong Kong and Kowloon is the respon- sibility of the Director of Public Works, who is both Building Authority and Chairman of the Town Planning Board. The director also deals with that part of the New Territories between Boundary Street and the Kowloon hills which is called New Kowloon. The District Commissioner is responsible for land administration throughout the rest of the New Territories. All Crown Land grants and all private land transactions are recorded for Hong Kong and Kowloon in the Registrar General's Department, and for the New Territories (with the exception of certain inland lots) in the district offices. The inland lots in the New Territories cover the majority of the built-up parts of New Kowloon, and deeds relating to them are recorded with the Registrar General. The principal laws on the development and use of land are contained in the Buildings Ordin- ance, the Town Planning Ordinance and the New Territories. Ordinance.

       Land Policy. The Government's basic policy is to sell leases to the highest bidder at public auction; all land available to the general public for commercial and industrial purposes and for residential sites is sold in this way. Land for special housing proj- ects (described later in this chapter), for public utilities, schools, clinics and approved charitable purposes is usually granted by private treaty. The premium charged in such cases varies from

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     nothing for non-profit-making schools, etc, up to the full market value for public utilities.

This policy has been determined by the scarcity of all types of land. To ensure that land is put to the best possible use, all sales or grants are subject to a covenant in which the lessee undertakes to develop up to a certain rateable value within a specified period; the amount he must spend depends on the location and the type of development allowed. In addition to this covenant, new leases contain clauses controlling the use to which land may be put, to accord with town planning. They also provide for the annual payment of Crown rent.

      The policy of sale by public auction ensures, by and large, that the person best able to develop the land in accordance with the terms of the lease obtains the right to do so, and that the com- munity receives the maximum return in cash. As the rent reserved in the lease is low, this policy does not, generally speaking, enable Government to obtain direct financial gain from any increase in the value of the land after it has been sold. For this reason the very large increases in land value in recent years have resulted in relatively little increase in recurrent revenue from land, since most of the Colony's more valuable land is held on long leases.

      In the earlier part of this century the leases of lots lying in the better residential districts of Hong Kong Island and Kowloon often included restrictions on the type and height of buildings. These restrictions have served their purpose well, but the demands of an increasing population now require more intensive development. It has therefore become the practice for these conditions to be modified in accordance with standard zoning schedules which preserve the amenities of the district while allowing more intensive development. Modifications of this sort are subject to the payment of a premium.

      In recent years certain groups of 75-year Crown leases granted in the Colony's early days, chiefly in Kowloon, have reached their expiry dates. Government made public statements of its policy on these groups of Crown leases in 1946, 1949 and 1960. Terms and conditions for new leases have already been agreed in a large number of cases, and other leases will become due for re-grant in rapidly increasing numbers. Premia for the new leases may, subject to certain conditions, be paid either in a lump sum or by

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instalments over an agreed number of years. The majority of lessees avail themselves of the latter method of payment. For this reason the revenue in any one year is relatively small, but since payments continue for upwards of 80 years, the total revenue involved is considerable. The 1960 terms provide for a maximum of 20 annual instalments and interest of 10 per cent. On re-grant, the boundaries of these lots are adjusted to conform with street improvement lines, etc, and where land is needed for major re- planning schemes the leases will not be re-granted. In these latter cases the Government has announced its intention to pay ex gratia compensation for buildings.

There is a shortage of unleased Crown land in the New Territories suitable for sale by public auction for concentrated development. Consequently there is much interest among developers in securing permission for the exchange of agricultural land for building land, on payment of a premium. The amount of building land that can be obtained in this way depends upon the location of the site selected. In normal circumstances exchanges for in- dustrial or high density residential purposes are only permitted where the agricultural land is within areas for which layout plans have been approved, and it is necessary for Crown lessees to surrender approximately five feet of agricultural land for every two feet of building land to be re-granted. In each case the premium payable is equivalent to the difference in total value of the land surrendered and the land re-granted.

       Following the publication in 1960 of a statement of Govern- ment's land policy in the New Territories, the Heung Yee Kuk submitted a petition in February 1961, asking for extensive changes in this policy. In August the District Commissioner, New Territories, replied at length to the Kuk, explaining in detail why Government could not accept this petition. The Heung Yee Kuk has never accepted Government's explanation and continues to campaign for the modification of the policy.

Government Land Transactions. The system of selling Crown land in the urban area in accordance with programmes announced in advance continued during 1962. During the latter part of the year auction sales took place weekly, with a maximum number of 11 lots being sold on the same day. The demand for industrial

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land continued unabated and was mainly met by sales of factory sites at Kwun Tong and San Po Kong. A fall in the realized prices in the early part of the year was followed towards the middle of the year by a recovery, particularly in respect of water- front land at Kwun Tong that could also be used for godown purposes. Prices were maintained and at the end of the year land was selling at an average level of $40 a square foot.

Increased sales of land for housing took place at higher prices and was made available for development at all densities. In the low density bracket, sales were begun in a new area at Chung Hom Kok between Repulse Bay and Stanley, while other rural sales included a 4 acre site at Stubbs Road, the Peak, which was sold for $8 million. Sales of land for medium density develop- ment took place in the vicinity of Waterloo Road, Kowloon, where site formation and provision of roads and drainage were carried out by Government. The price realized by the first sale exceeded the development costs for the scheme as a whole, thus repeating the example of the Tin Hau Temple Road development at North Point two years ago.

       Various sites for mixed commercial and residential use were sold throughout the urban area, including most of the remaining sites in the specially planned commercial centres at Kwun Tong and San Po Kong. There was considerable competition for these sites and prices in excess of $100 a square foot were realized in both areas. A general upward trend of prices continued and a site in Hung Hom was sold for $425 a square foot.

To provide for the ship-building and repairing industry, 14 sites restricted to the industry were sold. Eleven of these were at Cheung Sha Wan and three at Yau Tong Bay. The price realized was generally more than twice the upset, reaching $35 a square foot at Cheung Sha Wan. Some five acres of land at San Po Kong for use as an amusement park was put out to tender. This aroused considerable interest and the tender accepted was for an annual premium of $1,050,000. The grant of a lease for the erection of an ocean terminal of international standard on the western side of the Kowloon peninsula was approved. In addition to shipping facilities and offices, the terminal will include shops and a

restaurant.

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Agreement was completed with the War Department for the phased surrender of Whitfield Barracks in return for reprovisioning the military establishments in more outlying districts. Whitfield Barracks lies in the heart of the business and commercial centre of the Kowloon peninsula and will release valuable land for sale. Together with land made available by re-positioning the Kowloon railway terminal, and that reclaimed at Hung Hom east of Chatham Road, the surrendered land will enable the replanning of the Tsim Sha Tsui district to go ahead.

      The acreage of land disposed of by private treaty for low-cost housing schemes, non-profit-making schools and other institutional purposes was similar to that granted in previous years. A number of new sites were reserved or allocated for resettlement estates and other Government projects. In addition to the expanded sale programme there was a further increase in the modification of existing leases to allow more intensive development and the re-grant of expired non-renewable 75-year leases continued at a greater rate.

       In the New Territories, demand for land remained high. Due, however, to the shortage of suitable and accessible Crown land, development continued to proceed more by way of the surrender of privately held agricultural land in exchange for land in building status rather than by public auction. Land values in the New Territories are generally lower than those in the urban areas but show a tendency to increase. This is particularly true of low density residential sites for which there is a good demand.

       Revenue from land transactions in Hong Kong, Kowloon and New Kowloon during the financial year 1961-2 came to $73,388,600 for sales by public auctions; $15,239,000 for private treaty sales; $11,328,600 for modifications of lease conditions, extensions and exchanges; and $2,844,300 for re-grants of expired 75-year leases. Where it is not possible to dispose of land immediately because public utilities and other services are not yet available or the site has been set aside for some future purpose, the land is rarely left vacant but may be occupied on a temporary annual permit. The 1961-2 revenue from these permits was $7,800,274 in the urban area and $710,425 in the New Territories. As permanent develop- ment has expanded, it has become necessary to cancel some of these permits and the number of permits in the urban area and in

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the more developed parts of the New Territories is likely to decrease year by year. During the same period, land transactions in the New Territories brought in premia of $983,807 for sales by public auction and private treaty; $4,498,087 for land exchanges, and $486,524 for modifications of lease conditions. (Details of premia received on sales of Crown land between 1851 and 1960-1 are given in Appendix VIII).

     Surveys. All surveys in Hong Kong are plotted on the Colony grid, which is a Cassini plane rectangular one with its origin on Victoria Peak. The grid meridian does not coincide with the true meridian at this point. The main triangulation, which is of a secondary standard, was observed in the 1920's and was adjusted by the War Office in 1928-30. Minor triangulation stations have been established over the years during the course of surveys in specific areas, and the horizontal control further extended by traversing. The urban area of Hong Kong Island, Kowloon and New Kowloon is surveyed at the large scale of 1/600 (50 feet to one inch). This is necessary because of the congested and crowded conditions in the built-up areas of the Colony. One hundred and fifty-two sheets of Hong Kong Island and 86 of Kowloon and New Kowloon are available in this series.

The New Territories remain largely rural, but the pressures of a rising population and an expanding economy have resulted in a striking growth of industry and housing. To meet this activity and to pinpoint individual land holdings a wide coverage of up- to-date survey sheets to a large scale is of first importance. To date, 331 sheets have been completed to a scale of 100 feet to an inch. These surveys form the basis for further scale plans required for planning, land records, and other purposes, and which are re-drawn from photographic reductions. In addition to supply- ing survey sheets of the Colony showing the plan position of buildings, the survey division of the Crown Lands and Survey Office is also responsible for establishing differences of level.

The first recorded levelling in the Colony was carried out in 1866 by HM surveying vessel Rifleman. For the purpose a datum was established roughly at the then mean sea level. To provide a permanent record, a copper bolt was driven into the wall of a storehouse in the Royal Naval Dockyard and its height above the assumed datum measured. Since then this sounding datum,

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later known as ordnance datum, has been taken as 17.833 feet below the level of Rifleman's bolt and is now known as principal datum. As the storehouse is to be demolished the bolt has been removed and re-erected at the new Naval Barracks. All levelling in the Colony is based on this principal datum, which is approxi- mately 3.9 feet below mean sea level.

Town Planning. Town Planning in Hong Kong includes the planned development of new industrial townships, the redevelop- ment of out-of-date urban localities and the gradual expansion of the urban areas. The basic aim of the planning, therefore, is to provide a framework within which public and private develop- ment may progress together; to ensure that adequate provision is made for open spaces, public buildings, communications and other necessary services; and to control the use and to stimulate the development of land. Development densities in the present urban centres are as high as anywhere in the world and, with a possible increase in population from 34 to 44 million in the next 10 years, considerable new expansion must take place if these densities are not to rise still higher.

Planning activities are co-ordinated in the planning division of the Crown Lands and Survey Office and are concerned mainly with the preparation of outline development plans. Plans for the New Territories are prepared at the request of the District Com- missioner, who consults responsible local opinion in areas affected before individual plans are approved. Since 1953 plans have been prepared for 33 planning districts in the urban areas. In addition many large scale layout plans have been drawn up covering small portions of the urban areas and the New Territories. These plans are used as a guide in the sale of Crown land and the redevelop- ment of private land, but have no statutory effect except where approved in accordance with the Town Planning Ordinance.

The Town Planning Board consists of six official and three unofficial members and operates under the Town Planning Ordinance. The board has, to date, published outline development and layout plans for 14 districts; 12 have been approved by the Governor in Council, one refused and one is awaiting considera- tion. The board has been instructed to prepare plans in respect of Tsim Sha Tsui and Aberdeen, but these have not yet been published. Approved plans cover the following areas: North

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Point, Chai Wan, Yau Ma Tei, Hung Hom, Ma Tau Kok, Kwun Tong Tsai Wan, Ngau Tau Kok, Cha Kwo Ling, North-east Kowloon, Sha Tin and the Central District of Victoria.

      The approved plan for the Central District of Victoria provides for expansion of the business and cultural centre of the Colony, and is designed so that vehicle and pedestrian traffic will be able to move easily and safely. Elevated pedestrian ways and traffic crossings are proposed with shops at first floor level, the ground and mezzanine floors being used mainly for service deliveries and car parking. This scheme is an ambitious one, in keeping with the times, and is likely to arouse considerable interest among overseas real estate investment companies and developers.

       Surveys of housing density and industrial employment intensity were carried out during 1962 and these helped to provide a firmer basis for planning than had previously existed. Research on this and other aspects of development will be stepped up following recruitment of staff for the preparation of the Colony Outline Plan, approval for which was given at the end of the year.

      Buildings. Expenditure on private building reached a new peak in 1962, totalling $330 million. This was an increase of 22 per cent over last year's figure. The year followed the usual pattern and most new buildings were for residential use; 76 per cent of the new buildings completed and occupied were domestic. Consider- able progress in the field of low-cost housing was made by the various bodies engaged in this type of work. The Ma Tau Chung scheme in Kowloon was completed at a cost of over $9 million and work continued on several other large housing projects. Local Government officers' housing societies continued to make sub- stantial contributions in the field of better class domestic accom- modation. In the sphere of industrial building, steady progress continued at Kwun Tong and Tsuen Wan, while the development of the new industrial area at San Po Kong (formerly part of the old airport) was in hand.

      The rate of development is shown by the following figures: plans for 3,569 new buildings were submitted to the Building Authority during 1962 and of these 3,276 were for buildings primarily intended for domestic occupation. In addition several thousand other plans dealing with works other than new buildings were submitted for approval. These mainly comprised alterations

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and additions to existing buildings, site formation schemes, private streets and access roads, drainage works, demolitions and amend- ments to proposals already approved. During the year 597 permits were issued for occupation of new buildings, 395 being for residential purposes. Among the non-domestic buildings completed and occupied were 22 schools, 46 factories and workshops, 15 office blocks, four churches and chapels and three cinemas. Legislation. Several amendments were made during the year to the Building Regulations, the main points being the introduction of the Building (Demolition Works) Regulations, 1962, and the revision of certain of the Building (Planning) Regulations, 1956. The intensity of development created problems of all kinds and despite the fact there is a scarcity of suitable building land in the urban areas, it is clear that such densities are undesirable. Under the Building (Planning) Regulations, 1956, the intensity of development was controlled by means of the volume of a building calculated on street width and permissible wall heights. But under the provisions of the Building (Planning) (Amendment) (No 2) Regulations, 1962, the intensity of development is controlled by the use of 'plot ratio' and 'site coverage'. Provision is made for a sliding scale whereby the plot ratio increases as the building height increases, but at the same time the area of the site that can be covered by a building is reduced.

      These regulations bring Hong Kong into line with the methods of high density control used in other large modern cities with a similar problem. Other provisions of the new regulations provide for an increase in the open space required around buildings, freer pedestrian circulation at ground level, and the raising of minimum standards of lighting and ventilation for offices and kitchens.

      New Territories' Buildings. The revised Buildings Ordinance, 1955, which now applies to the New Territories, made special provision for the exemption from the need to submit to the Building Authority plans of small village buildings. Plans for these buildings continued to be handled by district officers.

      Modern shops and tenement buildings in Tsuen Wan, Tai Po, Yuen Long, Shek Wu Hui and other market towns differ little from those in Hong Kong and Kowloon. Well-designed houses and bungalows are appearing in increasing numbers along the main roads to Fanling, Castle Peak and Clear Water Bay, as well

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     as on Cheung Chau Island and at Silver Mine Bay on Lantau. Large-scale industrial development is concentrated at Tsuen Wan and Kwai Chung.

      Squatter clearances in the built-up areas of the Colony, together with the growth of industry and the spread of intensive vegetable cultivation, have led to a considerable increase in the number of wooden houses on both Crown and private land in the New Territories. In those places where temporary structures are unlikely to hinder planned development for some time to come, the occupiers are encouraged to apply for temporary structure permits.

HOUSING

There was severe overcrowding in the Colony's tenement build- ings even before the Pacific War, because construction was unable to match increases in the population brought about by immigra- tion from China. The war and the Japanese occupation of the Colony resulted in considerable damage to residential property and although this was quickly repaired, overcrowding was soon apparent again. It intensified greatly in 1949 and 1950 following a fresh influx of immigrants from China and despite the intense building activity which has taken place, new housing has been unable to keep pace with the population growth during the past 10 years.

      Hong Kong's vigorous building programme continued unabated throughout 1962, and Government intensified its efforts by starting a new housing programme. This is designed to provide low-cost housing for 20,000 people annually who earn less than $400 a month and who are living in insanitary or overcrowded conditions. It is additional to the resettlement programme which has already provided accommodation for 508,166 people. Apart from Government's contribution, private enterprise has provided accom- modation for about 85,000 people during the past seven years and many more new buildings are being constructed every year. At the end of 1962 rated domestic accommodation in the urban areas (excluding resettlement estates) comprised 110,877 tenement floors, 23,727 small flats, 16,827 low-cost housing units, 10,062 large flats and 777 houses. Domestic accommodation predominates in all new building projects.

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       Since 1950 land has been made available by Government at one-third of its estimated value to encourage non-profit-making housing projects. These may be run by voluntary societies, pro- viding housing for the lower income groups, or by employers for their staff. A summary of all new housing completed during 1962 is given at Appendix VIII.

Voluntary Organizations. A number of voluntary organizations have built housing for lower and middle income groups during recent years. Prominent among these is the Hong Kong Housing Society, which is a non-profit-making organization formed in 1948 by a group of public spirited men and women of the Hong Kong Council of Social Service. The society has now housed over 40,000 people in 6,600 flats on eight estates in different parts of the Colony. The rents of these flats are $37 a month for a small room with communal facilities, and an average of $80 a month for a larger room with adjoining kitchen, toilet and balcony. The estates are well laid out and have playgrounds and gardens. Some also have welfare facilities such as boys' and girls' clubs, day nurseries, clinics and vocational classes.

During 1962 the society completed 1,839 flats housing 10,556 people on its estates at Wong Tai Sin, Shau Kei Wan and Aberdeen. At the end of the year the society had almost completed another 732 flats at Aberdeen and Shau Kei Wan which will accommodate over 4,500 people. It also had work in hand which will provide accommodation for some 16,000 people in 2,734 flats at Shau Kei Wan, Aberdeen and Healthy Village, North Point. Plans are well advanced on six other estates for nearly 10,000 flats which will house over 50,000 people. Funds for the society's schemes are normally provided by Government at low interest rates. The society also operates a loan scheme under which firms lend money to cover the cost of constructing flats, and in return are given a lease of accommodation for nominated employees. These loans are interest free and repayable over 20 years. To date 660 flats have been financed in this way.

      Other voluntary organizations providing accommodation include the Hong Kong Settlers Housing Corporation. The corporation manages a number of cottages and, with a Government loan, is erecting eight blocks of multi-storey buildings with 1,800 flats to accommodate 8,000 people at Tai Hang. Many employers also

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help to alleviate the housing shortage in the Colony by providing accommodation for their staff. Large industrial concerns have built dormitory-type accommodation for their workers and a number of public utility companies and commercial firms have built flats for employees and their families.

      Government Housing. The Government has helped its junior local staff by reserving for them 15 per cent of all domestic accommodation in low-cost housing estates built by the Public Works Department between 1961 and 1965. Rent and other con- ditions of tenancy are the same as for other members of the public. Government has also helped its staff for a number of years by encouraging the formation of co-operative building societies among local civil servants on the pensionable establishment and giving them loans to buy land and build flats. However, owing to the large number of applications under consideration this scheme was suspended in May 1962. Applications received before this are still being considered and by the end of 1962, 207 societies had been formed with 4,089 members; 364 flats were completed in 1962. Government provides accommodation for its overseas staff and also for many of its local staff, including police and fire service officers, nurses and resident staff on Government installations.

      The Hong Kong Housing Authority. The Hong Kong Housing Authority is a statutory body created by Ordinance No 18 of 1954, and consists of all members of the Urban Council, ex officio, and certain other members appointed by the Governor. The ordinance gives the Authority wide powers in relation to housing. Its aim is to provide as much accommodation as possible for residents of the Colony living in overcrowded and unsatisfactory conditions. It plans, constructs and manages its own estates, which are designed for those with family incomes ranging from $400 to $900

month. Under this programme the Authority has housed approximately 61,000 people in 9,908 flats in six wholly or partially completed estates and is constructing another 10,998 flats to house a further 65,348 people.

      In 1962 the Authority adopted a new 10-year programme de- signed to provide accommodation for approximately 153,000 people in 24,500 flats between 1964 and 1973. In addition it also undertook, at Government's request, to manage all the properties

Probably no place of comparable size anywhere in the world can equal Hong Kong's housing programme. By the end of September 1962, more than 400,000 people were living in resettlement estates such as that shown in the foreground above. Over 60,000 people were living in Housing Authority estates, one of which is in the background.

Many tenants in Housing Authority estates pay less rent than they did for their squatter accommodation. For them, the move opens up a whole new way of life.

The Choi Hung Estate, being built by the Housing Authority in Clear Water Bay Road, Kowloon, at a cost of over $50 million, will house more than 40,000 people when completed in 1963. The estate will include a secondary school for boys, a secondary modern school and three primary schools.

For the first time they are able to buy decent furniture and little luxuries such as a radio without having to fear that rain will come through the roof to ruin them.

Choi Hung Estate consists of eight 'slab' blocks of 20 storeys and a number of seven-storey blocks. The first flats were occupied in mid-1962 and the tradi- tionally hung laundry immediately made its appear- ance. Each of the tall blocks has 40 flats on each floor. Rents range from $50 to $130 a month.

Many of Hong Kong's vast public works projects involve moving millions of cubic yards of spoil to reclaim land from the sea. The industrial sector of the new town of Kwun Tong, where nearly a hundred factories are now in production, stands on land made in this way. The 'stalagmite' in the foreground shows where the level of the hills used to be.

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built under the Government low-cost housing programme started in 1961. Under this programme Government intends to provide housing for families living in overcrowded conditions who have incomes of less than $400 a month. At the end of 1962 one estate containing 1,285 flats was partly completed and under manage- ment, and three other estates were under construction. The programme is designed to accommodate approximately 20,000 people a year. The low-cost estates will consist of multi-storey blocks of flats each containing a living-room, private balcony and cooking place with a water point. There will be communal toilet facilities. The general standard of accommodation and finish is somewhat inferior to that of the Authority's estates, but is a great improvement on the accommodation and amenities of resettlement estates. Rents, which are fixed by Government, vary from $35 to $45 a month according to size of rooms. Management of these properties is carried out on a non-profit basis, the costs being paid by Government and the rents credited to Government funds.

Housing built by the Authority consists of multi-storey blocks of self-contained flats in large estates with provision for shops, clinics, schools and kindergartens. Playgrounds and other amenities are provided and a high standard of planning and construction is maintained. Rents for the Authority's flats, excluding the first two schemes, range from $48 a month for a four-person flat to $130 a month for a 12-person flat. The Authority is financed by the Government through a revolving fund which now amounts to $180 million. It pays interest on the first $45 million at 34 per cent per annum and at five per cent per annum on the remainder. By the end of 1962 it had spent over $129 million and its rent roll had reached $12 million a year. Sites are provided by Government at one-third the estimated market value, and rents are calculated on the basis of amortization of capital expenditure on buildings and land at five per cent over 40 years. On this basis the Authority is required to balance its budget. Selection of tenants is carried out on the basis of housing need, a points system being operated.

Maintenance and management on the Authority's estates and the Government low-cost housing estates is of a high standard and includes rent collection and supervision by trained housing

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managers, maintenance officers, and assistants. The planning, con- struction, administration, management and maintenance of the estates is carried out by the housing division of the Urban Services Department, under the direction of the Commissioner for Housing.

RESETTLEMENT

      Hong Kong's resettlement estates have attracted world-wide attention. Few visitors leave the Colony unimpressed by the fact that hundreds of thousands of people are being provided with housing by a low-cost building programme which, for speed and imagination, has few if any parallels. By the end of 1962 the Government of Hong Kong had become, through this programme, the direct landlord of about 508,166 people. This figure repre- sents about one-seventh of the population and there are plans to resettle a further 500,000 people during the five-year period 1962-7. New blocks, each capable of accommodating over 2,200 people, are being built at the rate of one every 10 days.

      The rapid increase in population following the war led to the saturation of conventional housing. This meant that for many the only means of obtaining shelter was to put up a hut, of any materials that could be had cheaply, on any piece of vacant land. These squatter huts rapidly spread over the urban areas of Hong Kong and Kowloon. In many places there were colonies of squatters, some of 50,000 or more, living together in a closely- packed mass, with their own shops and schools, and even factories and workshops. Sanitation was primitive or non-existent, there were frequent fires and a constant threat of epidemic disease. Moreover, the presence of the squatters on the land made it impossible to solve the very problems to which their presence had given rise. The houses, schools and hospitals needed for this swollen population could not be put in hand because the land required for their construction was occupied by squatters.

       As early as 1948 squatters had been moved from central districts to 'tolerated areas' on the outskirts of the city, where they were allowed to rebuild their huts. Later 'approved resettle- ment areas' were established where dwellings were required to be built of stone or other fireproof materials to an approved pattern. These tolerated areas had the disadvantage that they

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reproduced many of the unsatisfactory features of the squatter areas, while the majority of squatters were too poor to be able to build or purchase the type of cottage required. This difficulty was partly overcome by the construction of cottages by welfare organizations which rented them to approved settlers, either direct or through Government, or accepted payment for them by instal- ments. But the fundamental objection remained that this form of resettlement was uneconomic in both land and money and could not be used on a scale which would make real impact on the squatter problem as a whole.

In 1954, after a disastrous squatter fire at Shek Kip Mei in which 53,000 people lost their homes, there was a drastic change in policy. A Resettlement Department was set up, under the general control of the Urban Council, to co-ordinate the duties of squatter control and clearance which had previously been under- taken by several different departments. Government funds were then provided to build multi-storey accommodation blocks into which squatters could be resettled. These blocks, designed and built by the Public Works Department, were kept as simple as possible so that they could be put up quickly and then let at rents which the squatters could afford.

Basically each new building was in the form of an 'H' with communal washing and latrine facilities on each of the seven floors. Individual rooms varied in size from just under 100 square feet to just over 300 square feet with the majority of 120 square feet designed to house a family of four or five adults. Twenty- four square feet for an adult was taken as the absolute minimum for health and comfort. With only minor modifications, this design had been perpetuated in more than 200 multi-storey blocks by the end of 1962.

Rooms were allocated according to the size of the family rather than the rent they could afford. Rents were fixed at the lowest possible level to cover reimbursement of the capital cost of the building over 40 years (at 34 per cent per annum compound interest) plus an element for management and land costs. The rent of a standard 120 square feet room was fixed at $14 a month. No charge was made for the communal water supply but electricity, if it was installed at a tenant's request, was at his own expense; communal lighting was provided by Government.

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From 1954 to the end of 1962 multi-storey resettlement accom- modation of this type was built to house about 435,408 persons in 12 estates at a total capital cost of $232 million.

It soon became necessary to provide for other community needs in these estates, which were virtually small townships. The ground floor rooms of new blocks were therefore set aside for non- domestic use. Most are now let to settlers as shops or workshops. Some are set aside for private welfare organizations and are used as schools, clinics or nurseries. With effect from February 1962 a new system of rents for ground floor shops was introduced which was more in keeping with the market rental valuation of the shops. Shops of 240 square feet which previously all paid a rent of $100, were divided into four grades and now pay either $200, $150, $115 or a reduced rent of $80 a month according to locality. The new rents include rates. There was some opposition from shop- keepers required to pay these higher rents and appeals boards composed of members of the Urban Council and Government departments were formed to hear requests from shopkeepers for reductions on the grounds of individual hardship. As a result, approval was given for rents to be paid at a lower rate in a number of cases for varying periods. The rooftops of resettlement blocks are not left idle, but are allocated to established voluntary agencies who operate schools or children's clubs on them under the guidance of the Education or Social Welfare departments.

      Early operations to clear thousands of squatters revealed that although most of those concerned were occupying flimsy structures of very poor quality, there were among them some families who, though technically squatters, were living in structures of a much higher standard than the average. To provide them with better accommodation, separate blocks similar to one wing of a normal H-block were constructed to provide a number of small self- contained flats with private balconies, kitchens, lavatories and showers. The rent of this better type of accommodation was fixed at $45 a month for a flat of 240 square feet and $65 a month for one of 360 square feet. More recently the new H-blocks have been modified to provide larger rooms on the ends of each floor with private balconies and their own water supply. These rooms are let at a rent of $45 a month to families cleared from better than average structures.

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Flatted factories. Mention has been made of the small factories which operate in squatter areas. As clearance operations advanced they revealed more and more of these 'squatter factories' and, to permit those being resettled to continue this form of livelihood, it was decided to construct several multi-storey factory blocks. These have industrial working space in units of 198 square feet in the old blocks and 256 square feet in the new, and are allocated to owners of squatter factories under a certain size who cannot afford to re-establish themselves elsewhere. Rents are calculated to provide a return on capital within 21 years at five per cent per annum compound interest. They vary from $75 a month for a ground floor unit to $45 a month for one on a top floor, inclusive of rates. These rents are below market levels and in most areas the accommodation has proved attractive to small manu- facturers.

Cottage resettlement areas. Fourteen cottage resettlement areas still remain in existence, but the number of occupants varies little from year to year since it is uneconomic, at least in the urban areas, to increase their size. In certain districts the sites are being cleared for other development, and their occupants resettled in multi-storey accommodation. A total of 1,440 structures in three of the larger cottage areas were demolished to provide land for more intensive development or for road widening, and the 12,970 occupants were resettled. Approximately 60 acres of land were freed in this way. In the Chai Wan cottage area the Methodist Church built 165 stone cottages to replace old and dilapidated wooden huts. Several of the remaining cottage areas still contain many small factories, shops and workshops, together with schools, clinics and welfare centres of various types; these are largely provided by voluntary agencies who continue to add generously to such facilities year by year.

Rennie's Mill Village. In 1950 a new community came into existence in Junk Bay on the eastern shores of the Kowloon peninsula when a number of ex-Nationalist soldiers, previously accommodated on Hong Kong Island, were moved to a camp under the supervision of the then Social Welfare Office. With the passage of time many of the original soldiers moved away. Other immigrants and their families took their place and the camp developed into a permanent settlement of some 8,000 inhabitants

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     living in stone cottages, many of which were constructed with the assistance of welfare organizations. The Resettlement Depart- ment took over the administration of the village as an additional cottage area in 1961. Following a survey of the area and its population a number of improvements have been introduced or are under consideration. A full-time staff of labourers recruited in the village is employed on the cleansing of the area, incinerators and public lavatories have been constructed in different parts of the village, and work on the provision of a piped water supply has started. In addition, a considerable amount of work has been done to improve paths, bridges and drainage, and chlorination of all wells and streams is carried out regularly.

      Squatter clearances. During the year 65,234 persons were cleared from land required for development. All genuine occupants were resettled, mostly in the 28 new multi-storey blocks completed and handed over by the Public Works Department in 1962. A small number went into new cottages. In all the 1962 clearances 772.08 acres of land were cleared. Owing to the scarcity of land within the urban area it is becoming increasingly necessary to clear areas further afield for new resettlement estates. Such extensive schemes included areas in Yau Tong, So Mo Ping, Tsz Wan Shan and Tai Wo Hau, Tsuen Wan. The Tung Tau Resettle- ment Estate is also being extended. Owing to the extremely overcrowded conditions in the squatters huts to be cleared for this estate, 19,000 people are being resettled mainly from one or two-storey buildings on the 17 acre site in order to provide accommodation for only 13,000.

Reclamation schemes are reducing the number of sheltered anchorages and it has become necessary to start resettling about 5,000 boat squatters, on condition that they demolish their boats. In all 9,130 boat squatters in seriously congested typhoon anchorages were also resettled during the year subject to the same condition. This is the beginning of a programme for moving all squatter boats from typhoon shelters. Apart from occupying space in the anchorages and possibly excluding fishing and other working boats in times of typhoon, these boats constitute a serious health risk. Cultivators who lose their land and livelihood through clearance for development are given financial compensation and

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     during the year $1,709,326 was paid to farmers in respect of 57 acres of cultivation.

      For squatters awaiting resettlement there were the usual hazards of rainstorm and fire. Extensive damage to squatter areas occurred when typhoon Wanda passed over the Colony in September (further details can be found in chapter 15). Thirty-three small scale natural disasters occurred in urban squatter areas during the year, of which 24 were fires and nine landslides and floods. In the two comparatively large fires that occurred at Kowloon Chai in January and February this year, a total of 211 huts were destroyed, making 1,419 persons homeless. The total number made homeless by all natural disasters during 1962 was 11,989 and, in accordance with current policy, they were permitted to rebuild their huts either on the old sites or on new ones as close as possible to them. To resettle these persons immediately would have seriously disrupted the general programme of clearance and development.

      Each year in October a fresh survey of urban squatter areas is carried out. Huts built before 1954 (or 1956 in the case of roof- tops) continue to be tolerated. New huts are forbidden. No control is kept at present over the number of occupants of tolerated huts and it is the purpose of the survey to determine how many occupants there are. The 1962 return indicated a total of 488,737 squatters in the urban areas surveyed, including 69,504 on roof- tops. Squatters in unsurveyed areas are thought to number some 70,000. New unauthorized huts and unauthorized extensions to existing huts are demolished; during 1962 9,095 such demolitions took place. One thousand two hundred and forty rooftop squatters and pavement hut squatters were resited when the tenements on or by which they were located were demolished for redevelopment during 1962.

       The New Territories Administration is responsible for the control of squatters in the New Territories, with the exception of the Tsuen Wan district where control has been transferred to the Resettlement Department. The more accessible parts of the New Territories are regularly patrolled and are divided into prohibited and non-prohibited areas. In the former, such as the margins of roads, layout and development areas, and land exposed to flooding, it is necessary to prevent more squatters from building huts. In

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the latter, temporary structures may be built with a permit from the district officer. When existing structures in the New Terri- tories have to be cleared from areas required for development, the occupants are normally given assistance to rebuild their huts on tolerated sites elsewhere. An exception is Tsuen Wan, where 10,381 persons who had to be cleared during 1962 from areas required for development were resettled direct into standard re- settlement blocks in the new Tai Wo Hau Estate.

      The squatter population is continually augmented by natural increase as well as by infiltration of new families into tolerated huts. Many come from demolished tenements and the influx of immigrants in 1962 made its impact. A newly-designed resettlement block to replace the H-type will shortly be under construction. Known as the Mark III block, the design is different from the earlier versions in that it is served by a central corridor, thus making it possible to provide a private balcony for each room. In other respects the facilities provided are similar to those in the original blocks. The block will be of eight or eight and a half floors according to terrain. Consideration is being given in suitable areas to the construction of higher blocks served by lifts. This is a great advancement and will greatly assist in accelerating the rate of resettlement. It will also resolve, in part, the difficulties in finding suitable sites in the closely developed urban area.

RENT CONTROLS

      In 1947 the Landlord and Tenant Ordinance replaced certain temporary proclamations made shortly after the end of the Pacific War. Its object was to protect tenants of pre-war premises and it limited increases in rents to 30 per cent for domestic premises and 45 per cent for business premises over the standard 1941 rents. Essentially the same controls exist today, although increases of up to 55 per cent of standard rent for domestic premises and 150 per cent for business premises were allowed in 1954, after an increase for business premises of up to 100 per cent in 1949. It is now possible for a landlord who wishes to redevelop controlled property to get permission to do so through a tenancy tribunal on conditions which include the payment of compensation to tenants for the loss of their tenancies.

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Since 1953 two tenancy inquiry bureaux have been set up within the framework of the Secretariat for Chinese Affairs to help the machinery of the Landlord and Tenant Ordinance work smoothly. The principal statutory duties placed on these bureaux are to provide tenancy tribunals with factual information whenever an application is made by a landlord for exclusion from control, or by a tenant for the reduction of rent. During 1962 the bureaux forwarded to the tribunals 4,965 sketch plans with measure- ments and particulars. In connexion with exclusion cases the staff of the bureaux interviewed 19,481 tenants personally.

Reports of rent increases prompted Government to enact the Tenancy (Notice of Termination) Ordinance, which came into force on 14th April 1962, with a view to introducing a 'rent pause'. It provides, inter alia, that to terminate a tenancy in uncontrolled premises a landlord should normally give six months' written notice. Landlords and tenants may, however, make agreements providing for the termination of tenancies by the giving of notice of shorter duration, and such agreements may be forwarded to the Secretary for Chinese Affairs for ratification. A total of 178 such agreements was ratified. On 12th October 1962, an amend- ment to this ordinance was enacted which, in effect, extended the 'rent pause' period to 30th June 1963.

As a direct result of their contact with landlords, principal tenants and sub-tenants, the officers of these bureaux find them- selves mediating in a large number of minor but varied tenancy disputes and also answering numerous letters and inquiries from the public. This service has been of great value, for the parties are usually reluctant to go to court and still more reluctant to testify in public against their closest neighbours. The staff of the bureaux handled 748 of these disputes during 1962.

11

Social Welfare

      ATTENTION has been drawn in previous years to a growing aware- ness of the need for properly qualified staff in the field of social welfare. It has long been recognized that the building and main- tenance of institutions and vocational training and community centres, and the financing of casework services and relief measures, can be justified only if sufficient qualified staff can be provided to ensure that they are used constructively and to full advantage. The inevitable conclusion was that a comprehensive programme for training social workers was required and it is gratifying to be able to report that during the year this programme began.

The appointment of three consultants to advise and assist in the development of a training programme was recommended by Dr Eileen Younghusband in her 1960 Report on Social Work Training in Hong Kong. By January 1962, the first had arrived, and by May, the remaining two. Hong Kong was fortunate in securing from North America Professor A. F. Klein (Professor of Social Group Work at the University of Pittsburgh), Mrs J. D. Chaisson (formerly Assistant Professor of Social Work at the University of Toronto and recently a consultant with various welfare agencies in Canada) and Miss M. Moscrop (from Canada, recently con- sultant on in-service training in Malaya). Their assignments were sponsored respectively by the United States Government, the Asia Foundation and the Canadian Technical Assistance Programme, whose generosity is gratefully acknowledged.

       Miss Moscrop was able to embark immediately upon an assess- ment of in-service training needs and the formulation of plans to meet them. Using a grant from UNICEF, a social work training unit consisting of a principal training officer and two training officers was established under her professional supervision. By the autumn this unit was providing a variety of in-service training courses for 152 social or welfare workers from voluntary agencies and Government departments. Professor Klein and Mrs Chaisson

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are primarily concerned with formal or academic social work training and despite the little time between their arrival and the start of the academic year in October they were able to submit interim proposals for revising and improving social study courses at the University of Hong Kong. The proposals were accepted by the University and are being implemented with the assistance of a grant of $51,000 from the Social Work Training Fund. Pre- liminary steps were also taken to strengthen the social study courses at one of the post-secondary colleges.

       Numerous other measures designed to increase both the number and the competence of social workers were undertaken during the year. The value of Government bursaries awarded for social studies at the University of Hong Kong was increased to the record figure of $76,750, while 13 officers from the department were sent abroad for specialized training and seminars. In co-operation with volun- tary agencies the department conducted two training courses on basic aspects of social work and provided expanded facilities for practical training for university and post-secondary college students. At the same time 32 officers enrolled in extra-mural courses at Hong Kong University. Despite these encouraging moves the pro- vision of an adequate number of trained social workers will for some time remain one of the main problems facing those respon- sible for improving and expanding social welfare services in the Colony. The community centre programme, the steadily mounting number of applications for adoption of children, the increasing number of offenders entrusted by magistrates to the supervision of probation officers, and the pressing need for social investiga- tions, surveys and practical research all add to the demand for more social workers.

The need for social work research, also referred to in Dr Younghusband's report, has been recognized by Government and a study was made during the year to determine how such research should be carried out and how it could be financed. The Social Welfare Advisory Committee was re-organized to advise Govern- ment on matters of social welfare policy and such matters as may be referred to it by the Director of Social Welfare, including applications from voluntary agencies for subventions. The com- mittee consists of nine unofficials who have experience of social

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work and who in many cases occupy leading positions in voluntary agencies. The Director of Social Welfare is chairman.

      The capacity of non-profit-making day nurseries, creches and play centres increased by almost 1,500 to nearly 4,000 during the year, but this is still far short of the actual need. Additional impetus was given by a substantial grant from UNICEF for equip- ment for day nurseries, and a donation of over $750,000 from the American Government made possible the planning of a Children's Reception Centre in Kowloon. When completed next year the centre will have accommodation for 100 children and will act as a clearing-house where children can be placed while a well- considered plan is made for their future. The steady increase in the number of adoptions by Order of Court and the decrease in the number of children abandoned and in institutions were encouraging signs. Nearly all children abandoned were adopted into families. in Hong Kong or abroad and partly due to the activities of inter- national agencies in this field applications for adoption could not be met in full.

      A few voluntary agencies operate primarily to support poor children in their own homes by providing them with money, clothes, school fees, etc., so that families need not disintegrate under economic stress and strain. Well over 7,000 children were assisted in this way during the year and there were indications that this most useful form of assistance was increasing. Children's libraries are always popular and 1962 saw five more opened-two at Kwun Tong resettlement estate and one each at Ngau Tau Kok resettlement area, Shau Kei Wan and Tai Po. A grant by UNICEF enabled the department to replace the mobile library which had served the New Territories for seven years, and the extra-mural courses in librarianship at the University of Hong Kong provided useful training for those in the department and in voluntary agencies responsible for maintaining library services.

       The formation of the Federation of Youth Groups was an important development in work with teenagers as it provides an organization for co-ordinating activities for this key section of the population. Another important development was the appointment of an operating authority for the Duke of Edinburgh's Award Scheme in Hong Kong. The scheme was initiated by the Duke as a challenge to endeavour and achievement for boys and girls.

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      between the ages of 14 and 19 through a balanced programme of leisure time activities. A voluntary organization in Britain spon- sored a gold award winner to come to Hong Kong to assist in the initial running of the scheme and by the close of the year four boys were working toward the gold badge and 64 toward the silver badge. No schemes for girls operate in Hong Kong at present, but plans are in hand to introduce them.

       Projects aimed at the rehabilitation of juvenile delinquents also moved ahead, further increasing the demand for trained staff. A new probation remand home at Begonia Road, Kowloon, with a capacity of 170, was nearing completion at the end of the year and will relieve the heavy pressure being placed on correctional insti- tutions by the Courts. Plans were also made for a second approved school for juvenile offenders to supplement the existing one at Castle Peak, which was itself extended to permit an intake of 30 additional boys. A new boys' centre was built in Kowloon to replace the existing children's centre at Shanghai Street and was due to open early in the new year. It will have accommodation for 140 boys. The increasing use of the probation service as a positive and constructive method of treatment for young offenders was a source of both encouragement and trial for the probation section. In spite of the recruitment of six new probation officers the individual caseloads of the staff continued to be heavy. Another important development was a working party report into various aspects of the care and treatment of children in Hong Kong. This is now being studied by the Government.

       The number of handicapped persons coming forward for registra- tion continued to mount. By the close of the year the figure had risen to 9,082, compared with 6,335 at the end of 1961. Con- sequently there was an increase in activities aimed at rehabilitating and restoring disabled persons as far as possible to social and economic usefulness. At Kwun Tong in September the Hong Kong Society for Rehabilitation opened a medical rehabilitation centre for the vocational assessment of handicapped persons. Its object is to restore them in as short a time as possible to gainful employ- ment through a concentrated programme of treatment. The Hong Kong Society for the Blind's new factory in Kowloon was nearing completion at the end of the year and when open will provide employment for 200 blind people. The Ebenezer School and Home

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for the Blind expanded its facilities so that there is now a school place available for every blind child. The opening of the Princess Alexandra Red Cross Children's Home at Kwun Tong made special educational treatment available for crippled children, while the Victoria Park School for the Deaf opened four more classes for deaf children.

      The rapid pace of social change in Hong Kong has made some breakdown in family life inevitable. While the concept of family care for the aged is still predominant within the community, in- creased provision has now to be made for the institutional care of those who are left without support or whose infirmity places. an intolerable burden on their families. During the year the Little Sisters of the Poor opened another home for the aged, the Sin Tin Toa Home expanded its facilities and the Chinese Christian Churches Union made progress in building a new home for the aged.

      In a seaport such as Hong Kong the commercialization of sex is to some extent inevitable and takes the usual forms ranging from prostitution to indecent publications and exhibitions. Efforts were made by the Social Welfare and other departments to prevent the spread of vice, particularly in respect of undesirable advertise- ments and publications, while at the same time every assistance was given to prostitutes, dance hostesses, unmarried mothers and others who wished to change their way of life.

      Typhoon Wanda, which struck the Colony on September 1, stretched the emergency relief resources of the department to their limit and disrupted normal work for more than a month afterwards (details can be found in The Year's Weather, chapter 15). A total of 56 other disasters left a further toll of 65 dead, 46 injured and 9,471 homeless, making 1962 one of the worst disaster years on record.

At Hung Hom in November His Excellency the Officer Admin- istering the Government opened the first kitchen built by the Children's Meals Committee with generous assistance from the Church World Service, the Dutch Reform Church and the British Council of Churches. This committee, which is under the chairman- ship of the Right Reverend R. O. Hall, Bishop of Hong Kong, was formed to provide meals, either free or for a nominal charge, to undernourished children in primary schools. In recent years

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the expansion of the school building programme has enabled more and more children to go to school and the undernourishment observed in many of them posed a problem, for many were unable to cope with a full session's study.

      The programme to provide community and social centres made further progress. Early in the year the department established a social centre on the ground floor of a resettlement block at the Kwun Tong resettlement estate, where a new community centre will be completed next year. Meanwhile the first two community centres at Wong Tai Sin and Tsuen Wan continued to show that they were stimulating the development of a community spirit through the host of welfare services and group activities which they provide.

       Social work generally has begun to take on a more mature look and the fact that the basic problem of adequate training is now being tackled augurs well for the future, for without a compre- hensive training programme there can be no sound basis for the rapid and effective advance so essential to meet the social needs of Hong Kong.

12

Legislation

DURING the year 48 ordinances and a considerable volume of subsidiary legislation were enacted. The majority of this legislation amended existing laws; short notes on some of the more important items appear below.

Protection of Tenancies. The Tenancy (Notice of Termination) Ordinance imposed a measure of security of tenure for certain classes of tenants by requiring a landlord to give not less than six months notice of his intention to end a tenancy. The ordinance came into operation on 14th April 1962. The Tenancy (Notice of Termination) (Amendment) Ordinance amended the principal ordinance by providing that no notice of termination would take effect before 30th June 1963. The ordinance provides that any owner who seeks possession for his own occupation, or for pur- poses of redevelopment, may obtain an order for possession on satisfying a District Court of his intentions.

        District Courts. A series of ordinances, based on the recom- mendations of the District Court Committee appointed by the Chief Justice in 1958, was enacted to revise the practice, procedure and powers of District Courts. The District Court (Amendment) Ordinance removes from the 1953 ordinance those provisions which relate exclusively to the courts' civil jurisdiction. It also makes provision for the appointment of a solicitor as a District Judge and of temporary and temporary additional judges, and deals in more detail with the right of audience of lawyers before District Courts.

       The District Court (Civil Jurisdiction and Procedure) Ordinance deals with the civil jurisdiction and procedure of the District Court. Its provisions are mainly derived from the County Court Act, 1959, the District Court Ordinance, 1953, and the Supreme Court (Summary Jurisdiction) Ordinance, Chapter 5. The District Court (Amendment) (No 2) Ordinance introduces a right of appeal, at the suit of the Attorney General, on questions of law from deci- sions of a District Court in criminal matters.

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       Legal Aid. The Legal Aid in Criminal Cases Rules, made under the Criminal Procedure Ordinance (Chapter 221), enable legal aid to be granted upon application in criminal trials in the Supreme Court, and in criminal appeals to the Full Court, if the committing magistrate or a judge of the Supreme Court or the Full Court is satisfied that the applicant has insufficient means to obtain such aid for himself and the case is one involving a capital charge, or if he considers that in the interests of justice the prisoner ought to have legal assistance.

        Government Lotteries. The Government Lotteries Ordinance was enacted to enable the Government to run lotteries, which are managed by a standing committee. Sixty per cent of the proceeds is returned as prizes and the balance, after deduction of expenses, is to be applied to social welfare work. Information must be published annually in the Gazette to show the relationship between the proceeds of the lotteries and the development of the social welfare services. Rules have been made under this ordinance to regulate the conduct of the lotteries.

Community Relief Trust Fund. Sums of money had been con- tributed by members of the public to various funds established to meet special problems or emergencies in the past. In some cases, balances remained unexpended and in other instances the funds had been intermixed with other funds and applied to charitable purposes similar to those for which the funds were originally donated. The Community Relief Fund Ordinance establishes a single fund to take over such balances and to accept other sums that may be donated in the future. The Director of Social Welfare Incorporated is trustee of the fund, which will be applied to assist victims of natural disasters such as fires, floods or typhoons. A committee of three official and two unofficial members is appointed to advise the trustee in the administration of the fund.

        Boilers and Pressure Receivers. The extensive use now made in industry in Hong Kong of pressure equipment made it desirable to introduce new and comprehensive methods of inspection and control on internationally accepted lines. The Boilers and Pressure Receivers Ordinance, based in the main on provisions of the Factories Act, 1961, deals with the construction, maintenance, examination and use of steam boilers, steam receivers, steam containers, air receivers and portable gas generators. The ordinance

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also applies to many types of kerosene pressure stoves, though not to those used solely for domestic purposes nor to small pressure vessels of a maximum capacity not exceeding one gallon.

      The ordinance provides for the appointment of a registrar of boilers and pressure receivers who will maintain a register of such equipment in operation in the Colony. Surveyors are empowered to inspect all boilers and pressure receivers and prohibit the use of those which are not in safe working order. Among other provisions is a requirement that boilers and steam receivers should be operated under the direct supervision of competent persons and that the fuel burning installations attached to boilers should be examined periodically.

      Housing Authority. The Housing Ordinance, 1954, established the Hong Kong Housing Authority, the task of which was to provide housing accommodation for people living in overcrowded and unsatisfactory conditions. The Housing (Amendment) Ordin- ance widens the powers of the Hong Kong Housing Authority so that it may manage housing estates which it does not own. The principal purpose behind this amendment was to enable the Housing Authority to select tenants for, and manage, the new type of low-cost housing being built by Government.

Telecommunications. The Telecommunications Ordinance was repealed and replaced by a new ordinance. This was the first major revision of the ordinance since it was enacted in 1936 and the revision brought up to date much of the technical wording. It also provided for improved methods of control, and for the licensing of certain forms of telecommunication which had come into use since the ordinance was originally enacted.

      Legal Practitioners. New arrangements were introduced, by an amendment to the Legal Practitioners Ordinance, for persons qualifying as solicitors. These arrangements were the outcome of a working party set up by the Incorporated Law Society in con- junction with the Chief Justice and the Legal Department and reflected changes introduced earlier in the year in England. The scheme lays down the terms of articles to be entered into by clerks and the length of such terms. Additionally, it prescribes rules for the various parts of the qualifying examination.

Fisheries Protection. The Fisheries Protection Ordinance was enacted during the year to promote the protection and conservation

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of fish within the waters of the Colony. The main purpose of this legislation is to provide powers, by regulation, to prohibit and control such wasteful and destructive methods of fishing as the use of explosives and certain poisonous substances, and in general to prevent activities likely to be detrimental to the fishing industry as a whole. The use of explosives has been wide-spread in Colony waters, and powers have previously been lacking to deal effectively with the situation. Although poisons are not commonly used here, their use is current in neighbouring territories, and effective control is required to prevent introduction of this practice to Hong Kong.

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THE COURTS OF JUSTICE

THE Courts in Hong Kong are the Full Court, the Supreme Court, the District Court, the Magistrates' Court, the Tenancy Tribunal and the Marine Court. The Full Court hears appeals from the Supreme Court and the District Court, and has jurisdiction cor- responding roughly to that of the Court of Appeal and the Court of Criminal Appeal in England. Final appeals from Hong Kong go to the Judicial Committee of the Privy Council in London.

The Supreme Court tries criminal cases with a jury and has civil jurisdiction similar to that of the King's Bench and Chancery Divisions of the English High Court. It also exercises jurisdiction in probate, divorce, admiralty, lunacy, bankruptcy and company winding-up matters. It has an appellate jurisdiction in which it hears appeals from the Magistrates' Court and the Marine Court. The District Court has a criminal jurisdiction limited to the im- position of up to five years imprisonment, and civil jurisdiction in cases where the subject matter involved does not exceed $5,000. It also has an appellate jurisdiction in stamp appeals, rating appeals and appeals from the Tenancy Tribunal. Trial in both criminal and civil proceedings in the District Court is by judge alone. The Magistrates' Courts exercise a criminal jurisdiction similar to that of magistrates in England. They also have a limited jurisdiction in domestic matters.

      Since the war many changes in the social and economic structure of the Colony, including the growth of new and heavily populated industrial centres and a greatly increased population generally, have necessitated the creation of a number of additional courts. The Chief Justice is head of the judiciary, and he and four puisne judges deal with all business in the Full Court, and in the Supreme Court in all its various jurisdictions. In the District Court there are six district judges. Normally three magistrates sit at the Central

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      Magistracy, three at Causeway Bay, three at South Kowloon, four at North Kowloon and one in the New Territories.

The existence of these Magistrates' Courts has made possible a better distribution of the total volume of court work, and it can now be said that a Magistrates' Court is in most cases reason- ably near to the homes of defendants, witnesses and others concerned.

On Hong Kong Island, apart from the regular Magistrates' Courts, there is a Justice of the Peace Court, composed of two justices of the peace sitting together four afternoons a week. One of the justices is usually a solicitor.

Figures for criminal cases before the Courts showed some re- duction during the year, largely due to a decrease in minor sum- monses for hawking offences in Kowloon. A very substantial amount of the criminal business of the Courts continued to be taken up by the trial of cases of possession and trafficking in dangerous drugs, offences which remain prevalent in the Colony. The overall figures for serious crime are contained in Appendix IX. When the District Court was established in 1953 it took over the summary jurisdiction previously exercised by the Supreme Court, giving to the public a simpler and shorter method of bring- ing to trial civil disputes in which the value of the subject matter was under $5,000. The volume of work undertaken by the Court has steadily increased since its inception, reflecting the Colony's industrial growth and the expansion of its population. In 1953, the year of its establishment, the number of civil actions tried in the District Court was 2,259. In the last three years the figures have been:

1960

1961

1962

5,253

6,921

8,870

The Tenancy Tribunal deals with matters arising under the Landlord and Tenant Ordinance, which provides for a measure of control over domestic and business premises erected before 17th August 1945. The tribunal is responsible for inquiring into, and making recommendations on, applications for exemption from the provisions of the ordinance where it is considered desirable that land should be developed after appropriate compensation to exist- ing tenants. In recent years the tribunal's recommendations have

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generally been accepted and this has cleared the way for the considerable amount of new building which Hong Kong has wit- nessed since 1945. The number of exemption cases which came before the Tenancy Tribunal in 1959 was 106. The corresponding figure in 1960 was 226, in 1961, 561 and in 1962, 592.

      The Legal Profession. Legal practitioners in Hong Kong are admitted and enrolled under the provisions of the Legal Practi- tioners Ordinance either as barristers or as solicitors. Consequently the profession is separated as in England. A barrister has a general right of audience before all courts in the Colony, but a solicitor has no right of audience before the Full Court and his right of audience before the Supreme Court is confined to appeals from magistrates and bankruptcy petitions heard before a single judge. Control over members of both branches of the profession is exer- cised by the Supreme Court. Each branch of the profession is separately organized into a Bar Association and a Law Society, and there are now 27 barristers and 134 solicitors practising in Hong Kong.

The Crown is represented in the profession by the law officers, namely the Attorney General and the Solicitor General (who must be barristers), Crown Counsel, a Crown Solicitor and legal officers who may be barristers or solicitors and who have a statutory right of audience on behalf of the Crown before any court or tribunal in the Colony. The Attorney General and the Solicitor General are entitled in the courts of the Colony to the same rights as are enjoyed by the Attorney General and the Solicitor General in England. The Attorney General is the titular head of the local Bar.

THE HONG KONG POLICE FORCE

      The policeman on his beat is a universal symbol of society. In every country he is the visible agent through which the law is maintained. The more complex the society, the more specialized the police force has to be. Hong Kong exemplifies this. Since the end of the Second World War the problems created by Hong Kong's over-population, its economic development and geographi- cal position have entailed expansion of, and specialization in, those branches of the police force responsible for crime, narcotics, anti-corruption, security and traffic. But under-pinning all these specialist activities are the men of the uniformed branch. Between

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      1949 and the end of 1962 the establishment of the Hong Kong Police rose from 3,852 to 8,593; during this period the uniformed branch comprised about two-thirds of the total.

In general terms the uniformed branch is responsible for main- taining law and order throughout the territory of the Colony. To achieve this the territory is divided into three police districts: Hong Kong Island, Kowloon and the New Territories. The New Territories District also has responsibility for policing territorial waters and all islands lying within them. Three assistant commis- sioners in charge of these districts exercise their command through police divisions, which are themselves divided into sub-divisions and post areas.

       Beat patrols are an essential feature of the duties of the uniformed branch within the 12 divisional organizations compris- ing the territorial commands of the force, for the presence of a constable on patrol is a proven deterrent to would-be criminals. The situations which confront the constable are many and various and to some extent depend on the neighbourhood. Many beats are rural by nature; some are among squatter huts; others are in very crowded tenement or resettlement areas; others again are in the business districts. Each has its peculiar police problems. The officer on a rural beat has to be self-reliant because many situa- tions occur where immediate assistance is not available; in the city centre he has to deal with the problems of a concentrated commercial community; in the resettlement estate the nature of his work ranges from child welfare to the frustrating of petty crime and violence. Wherever he is, a uniformed branch officer on beat duty is required to take immediate action to deal with traffic acci- dents, serious crime or any other situation. As soon as possible he hands over to officers of the appropriate branch, but until help arrives the uniformed man must know how to handle the problem. In addition to the varied nature of beat duties, his work has other aspects. The officer on beat duty is also a channel through which 'intelligence' of interest to the police force as a whole is passed back to his division. From there the information is passed to district headquarters or to the appropriate branch.

      To support the man on beat duty each district operates mobile patrols known as emergency units. These units are part of the uniformed branch and each consists of some 175 men operating

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a number of special radio-equipped patrol cars controlled from district headquarters, which also runs the '999' system. The cars are directed to accidents or disturbances as an immediate force 'to aid or secure'. In the urban areas these mobile patrols provide the same police presence as the officer on foot. Officers of the uniformed branch also man report rooms at sub-divisional stations where members of the public normally bring, or telephone, their complaints. At present 40 report rooms are in operation and all the day-to-day policing of a sub-divisional area is conducted from them--the receiving and recording of reports and information from the public, the maintenance of detailed records of all police activi- ties, which may later be required in Court or elsewhere, the plan- ning and conducting of raids against opium or heroin divans and other centres of vice, and the charging and initial custody of offenders.

Apart from day-to-day duties the uniformed branch constable has a further, equally important, function. Because of Hong Kong's special circumstances it is essential that its conventional police force should be capable of being transformed at short notice into an aggressive internal security force, able to quell rioters and other groups intent on subverting the security of the Colony. Since the riots in 1956 particular attention has been given to riot training and the special role of the police force in an emergency. In normal circumstances the police officer must act with restraint and avoid the use of force; in times of emergency he may be required to act with force for the benefit of the community. It is one of the main objects of police training in Hong Kong that all ranks thoroughly understand both these roles.

The uniformed branch also mans police posts at the frontier, patrols outlying villages, deals with the special crowd-control pro- blems which occur at race meetings and football matches, controls and inspects licensed premises, supports the hawker control force, and gives advice and assistance generally to all citizens and visitors to Hong Kong. Thus the uniformed branch is the foundation of the force. At the same time it is the branch where officers gain initial practical experience before being sent to other sections. Officers who in the course of their careers transfer to other branches often return to the uniformed branch to fill more senior posts and this provides them with a general view of their profession

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I

8577

The establishment of the Women Police in Hong Kong is only 340 in a force of more than 8,600, but they have an unrivalled reputation for smartness and reliability. Policewomen, who must be between 19 and 25, perform many duties for which male constables are unsuitable--such as taking an abandoned baby to the orphanage (above).

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Recruits must be at least five feet tall, weigh at least 92 pounds and have perfect eyesight. After being kitted out (above) they do a six-month training course that includes court procedure and judo (right). Comfor- table accommodation is provided (below).

With nearly 60,000 vehicles on the roads, traffic control is an important aspect of police work and recruits are given lectures with models (above). Side by side with male constables, policewomen parade for weekly inspec- tion (below). The first time policewomen trained with constables, a policewoman was judged the best recruit.

TOTY OUTR

1

Like their counterparts everywhere, Hong Kong's policewomen are taught to be helpful whenever possible. Policewomen are on duty at all main police stations to help women who have problems (above) and when on patrol (below) they make many contacts with women on their beat. They often play an important part in settling domestic problems.

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which may be lost if too long a period is spent away from day- to-day police work. It also ensures that at the most mature and valuable stage of an officer's career he obtains all-round experience and is aware of the interdependence of all branches of the force. The uniformed branch of the force also includes two main specialist departments-the Criminal Investigation Department and Special Branch--and a number of specialist and technical branches such as the traffic office, the women police, communications and transport branch and the police auxiliaries. All these branches and units are controlled by Police Headquarters, which is the Com- missioner's administrative and operational headquarters.

       Establishment. The establishment of the force is 98 gazetted officers, 730 junior officers and 7,765 non-commissioned officers and police constables. These figures include the women police, consisting of one gazetted officer, 12 junior officers and 330 non- commissioned officers and constables. At the end of the year the strength of the force was 94 gazetted officers, 686 junior officers and 6,957 non-commissioned officers and constables.

       The difference between the strength and the establishment for the rank and file, a deficit at the end of the year of 808, reflects a difficulty which was examined by a working party set up by the Governor in March. To counter a serious wastage of personnel from the rank and file-a trend which started in early 1961-and a lack of young men coming forward to join the force, the working party submitted a number of recommendations on the conditions of service of the rank and file and these were accepted by Govern- ment on 12th September 1962. The main recommendation accepted was an increase in pay for members of the rank and file, who benefited by amounts ranging from $85 to $110 monthly. At the top of their respective scales a police constable now receives $490 monthly instead of $400, a corporal $540 instead of $430, and a sergeant $640 instead of $530. The new rates of pay were intro- duced with effect from 1st August 1962. Other recommendations made by the working party on matters of welfare, uniform and messing were still under detailed examination at the end of the

year.

      During the year considerable progress was made with the plan- ning of quarters for junior officers. New married quarters for 196 officers and single quarters for 100 officers have been included

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in the public works programme. This new accommodation and other improvements form part of a scheme eventually to house all junior officers of the force. At the end of November a new block providing 80 new flats for married NCO's and constables was opened at Tin Kwong Road, Kowloon. It is the first block in this group of married quarters, which will house 716 officers and their families when completed. Including this latest block, 2,170 married NCO's and constables are housed in police quarters.

Recruitment and Training. Overseas probationary inspectors are recruited in the United Kingdom and the Commonwealth; other probationary inspectors and constables are recruited locally. On enlistment all ranks are given a six-month course of training in the Police Training School at Aberdeen. The curriculum includes lectures on public relations, civics, the principles of law and legal procedures, court procedure, police and Government regulations, drill, musketry, physical training, riot drill, life saving and first aid. The course is designed not only to train the men in police duties but also to broaden their general outlook and fit them for responsibility. Overseas officers are taught the first stages of Cantonese and locally recruited men and women are taught English. Recruits for the marine division undergo additional training in seamanship, signals and port regulations.

      At the end of their six months' initial training all ranks are posted to units where they carry out duties under supervision. For the remainder of their probationary service inspectors attend the Police Training School one day a month for lectures, while constables attend small district training centres two days a month for the same purpose. Inspectors and constables return to the Police Training School for continuation training courses for two weeks in their second and third years of service, and refresher courses are held for those in the sixth to tenth years of service. The fifth annual study course on the social and psychological background of crime was held at the University of Hong Kong in December. The theme of the course was The Place of the Police in Modern Society. The students included senior police, army and prison officers and a number of social welfare workers. Several stimulating and profitable discussions took place during the course.

Each year a number of officers go to the United Kingdom for courses at the police colleges at Bramshill and Tulliallan Castle,

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at the Metropolitan Training School, Hendon, or at other training centres. In 1962, 13 overseas officers and nine local officers attended one or other of these courses. Special courses of various kinds are organized locally from time to time and this year these included a police staff course and two courses for riot company commanders. The Special Branch is responsible for preventing and detecting subversive activities in the Colony and for supplying the intel- ligence necessary to maintain internal security. At the beginning of the year the registration of approved societies was transferred from Special Branch to the licensing section of Police Headquarters. The headquarters of the Criminal Investigation Department is accommodated in the Police Headquarters building. There are sub- ordinate offices in each of the three police districts and these control the work of CID personnel working in the divisions. In January some decentralization of control was introduced on a trial basis. The object was to give more responsibility for CID work to divisional superintendents and to integrate the resources of the uniformed branch and divisional CID personnel so that both work together in the investigation of crime.

      Specialized units dealing with triad activities, criminal records, forensic science, ballistics, identification and the prevention of crime remain under the direct control of CID headquarters and their services are available to districts as required. The anti- corruption branch, narcotics bureau and commercial crime section are also controlled by the Director of Criminal Investigation.

      Crime. The rate of crime in Hong Kong during the year re- mained low and there was an encouraging increase in the detection rate. While certain types of larceny increased, notably larceny from vehicles, others-including larceny from the person and miscel- laneous larceny-decreased. Details of all classes of crime are given at Appendix IX.

      Narcotics. The drive against narcotics continued. The price of narcotics in Hong Kong remained high during the year, and this is normally a sign that preventive measures are effective. The work of the narcotics bureau and other sections of the force whose efforts are specially directed against drug traffic and addiction are only one aspect of Government's campaign. Other specialist ser- vices to combat drug traffic, to apprehend offenders, to cure addicts and to arouse the public conscience against the evils associated

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with drug addiction are provided by the Secretariat for Chinese Affairs, the Medical and Health Department, the Prisons Depart- ment, the Information Services Department and the Preventive Service. Their activities are co-ordinated by the Standing Narcotics Advisory Committee, which is composed of all the Chinese Un- official Members of the Executive and Legislative Councils and two non-Chinese Unofficial Members of the Executive Council, with the Secretary of Chinese Affairs as chairman.

      In addition to medical rehabilitation services for drug addicts at Tai Lam Chung Prison and Castle Peak Hospital, the Voluntary Society for the Aid and Rehabilitation of Drug Addicts has acquired from Government the island of Shek Kwu Chau, where a rehabilitation centre will be established. It will be opened early in 1963 and will eventually take 240 patients.

Juvenile Crime showed a substantial increase, particularly in cases of robberies and breakings committed by young persons between the ages of 16 and 21 years. But compared with 1961 fewer juvenile offenders were prosecuted for serious crime. Action against members of triad societies continued. Their activities are generally confined to extortion and vice. They still pose a threat, particularly in their ability to encourage and prolong any large scale disorder. The public again ably assisted the police in its efforts against crime and 58 letters of appreciation and monetary awards were presented to members of the public who helped the police to apprehend criminals, often at considerable personal risk.

Traffic. The number of motor vehicles registered and in use in the Colony increased by 7,230 to a total of 63,056 on the 31st December 1962. Private cars comprised the highest proportion of new vehicle registrations. The Motor Vehicle First Registration Tax, introduced on 1st March 1961, did not succeed in reducing the number of new cars, motor cycles and dual purpose vehicles being registered. The number of licensed drivers increased by 10,094 to 130,512; 20,848 provisional licences were issued during the year, and 75,404 driving tests were conducted. At the end of the year 17,200 persons were awaiting test.

Road Safety. Efforts to educate motorists and pedestrians in road safety continued. Particular emphasis was placed on the care

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needed by all concerned to protect children from road accidents. Kaifong welfare advancement associations greatly assisted by organizing local road safety campaigns designed especially to attract children. The campaigns included visits to schools, film shows, lectures, quizzes and practical demonstrations. Kaifong associations in Kowloon and Hong Kong sponsored two traffic safety campaigns at playgrounds in their areas and demonstrations were given by the Civil Aid Services, the Fire Services Department, St John Ambulance Brigade and military personnel. An important part was played in the campaigns by a traffic safety demonstration team from the Royal Military Police who gave realistic displays on the use of the roads by motorists and pedestrians.

       In November a special schools' road safety campaign started. Talks were given by police officers at selected schools in Hong Kong and Kowloon and at the same time a similar campaign was conducted by the military authorities in military schools. Other activities included the distribution of road safety literature to public transport organizations and schools.

Traffic flow and parking. Further efforts were made to alleviate and control the parking problem in the business areas of Hong Kong by installing more meters. A third multi-storey car park able to accommodate over 700 vehicles is in the final stages of construction in the city centre of Hong Kong, and work also started on the provision of paid parking spaces in Kowloon.

       The Communications and Transport Branch is responsible for the planning, installation and maintenance of the force telephone, teleprinter and radio systems. It also controls police transport and the training of drivers. The force radio networks are planned on a district and divisional basis, and include communications with mobile land units, marine craft, foot patrols and helicopters. Each district has its own telephone exchanges and a teleprinter network provides all-station broadcast facilities. Radio equipment is main- tained and serviced in the police radio workshops.

       The police transport fleet now has more than 400 vehicles rang- ing from motor scooters to buses. Driving instruction is carried out at the Police Driving School in the New Territories. On com- pletion of training, force drivers are qualified to drive all types of light, medium and heavy vehicles.

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Women Police are employed in all divisions to deal with women and children requiring police assistance. They work in close co- operation with the Social Welfare Department and the staff of the Juvenile Courts. They are also employed on special guard and patrol duties and assist in report rooms. Women constables are attached to the traffic office as a special unit to control metered parking spaces in the city and for traffic control duty at busy junctions and thoroughfares at peak periods.

Visitors. During the year the police took part in the arrange- ments for a number of distinguished visitors to the Colony. Among these were the Crown Prince and Princess of Japan, the President of Indonesia and Madame Sukarno, the President of Mexico, the Attorney General of the United States of America, Mr Robert Kennedy, Prince Souvanna Phouma and the Prime Minister of Singapore, Mr Lee Kwan-yew. Three Vietnamese police officers visited the Hong Kong Police during the year to study dog-handling and airport control. One Hong Kong Police officer visited Japan to study handwriting identification technique.

The Hong Kong Auxiliary Police Force supports and reinforces the regular police in emergencies of all kinds. Its establishment of 1,976 men is made up of 35 gazetted officers, 124 inspectorate officers and 1,817 non-commissioned officers and police constables. It is commanded by the Commissioner of Police, assisted by the Commandant, who is an auxiliary assistant commissioner. It was created in 1957 by a merger of the Hong Kong Police Reserve and the Special Constabulary. In August 1961 compulsory service was abandoned in Hong Kong, but recruitment since then has been sufficient to maintain the strength of the unit at just over 1,400.

When mobilized the auxiliaries are completely integrated with the regular force and each of the eight auxiliary land divisions operates as part of its parent regular division. Auxiliary emergency units operate on Hong Kong Island and Kowloon Districts in sup- port of their regular colleagues, and marine auxiliaries help to man craft of the regular marine division. The duties of the force are varied. The helicopter observer squadron, a sub-unit of marine division, has no regular counterpart and the duties and training of this unit are carried out by Auxiliary Police personnel with the assistance of the Hong Kong Auxiliary Air Force. The auxiliaries

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     also supply additional staff officers and communications personnel at Colony, district and divisional headquarters in any emergency.

IMMIGRATION

The year was the first full year of operation for the Immigration Department, which came into being on 4th August 1961. The immigration service now functions as a completely independent organization, under the control of the Director of Immigration. The degree of specialization thus achieved resulted in improve- ments in the speed of immigration work in the harbour, at the airport, and at the various offices on shore. As the staff gained experience so business was conducted more smoothly, and it is confidently expected that this trend will continue. The need for a separate service has been amply demonstrated.

      By the end of the year, nearly all the staff of the new department had been recruited and had, on the whole, settled down well. A comprehensive training programme was started for uniformed staff, and lectures on a variety of subjects connected with immigra- tion work were regularly given by senior officers. The training pro- gramme, which will be extended as time goes on, is intended to give the staff a wider knowledge of the work of the department to enable them to function more efficiently, and to prepare them for promotion in due course. By the end of March all police officers previously on secondment to the department had returned to the police force.

The year was marked by two notable events. The first of these was the unprecedented flood of persons who forced their way across the frontier during April and May. For a number of years the problems created by overcrowding in Hong Kong and the impossibility of absorbing immigrants in unlimited numbers had made it necessary to restrict the traditional movement of popula- tion between Hong Kong and China. As a result, pressure of entry by clandestine means had for some time posed a serious problem. But in the past this had been largely confined to entry by sea from Macau, and little or no difficulty had been experienced on the land frontier. Toward the end of April however, due, so far as can be judged, to relaxation of control beyond the border, there was a steady and disturbing increase in attempts, mainly by night, to evade police patrols and penetrate the frontier fence. Over 600

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persons were arrested in the border area in the last three days of April and although there was no difficulty in returning them at Lo Wu, observations showed very large numbers collecting or waiting an opportunity to gain entry.

      During the early part of May the numbers arrested mounted alarmingly. At first the police frontier division was able to deal with the situation, but as the numbers increased divisional re- sources in manpower, transport and equipment had to be rein- forced. Assistance came not only from additional police but also from a number of army units who at various times gave support to the police in controlling the border and patrolling behind it.

      During these operations, much understandable public sympathy for the immigrants was evident in Hong Kong and on several occasions trouble was narrowly avoided in villages near the border when crowds attempted to obstruct vehicles returning immigrants to Lo Wu, in order to give them food and clothing or an oppor- tunity to escape from custody. This danger was considerably re- duced when the use of road transport was abandoned and the immigrants were returned to Lo Wu by train.

      From 5th May onwards the numbers who succeeded in pene- trating the frontier were so great that a special transit centre was opened at the police training contingent camp at Fanling. There the immigrants were given a meal, interrogated, documented and allowed to rest before being returned across the frontier. On 22nd May a local emergency committee was established to co-ordinate operations on the border. The committee comprised the District Commissioner, New Territories, the Assistant Commissioner of Police, New Territories and Marine, and the Commander 48 Gurkha Infantry Brigade Group.

The influx reached its peak on 23rd May, when 5,620 immigrants were arrested in the frontier area and 5,112 returned to China. On that date it was announced that over 50,000 persons had crossed the border illegally since 1st May. On 26th May the Chinese authorities reinforced normal control measures and the influx ended as suddenly as it had begun. In the course of six weeks over 62,400 persons had been apprehended and returned to China.

As soon as the situation returned to normal British military personnel were withdrawn from active support, and the reception

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centre at Fanling was closed. Although a very large number of immigrants had been intercepted, it was known that many had managed to evade the cordons and check-points and make their way into the urban area. It is now estimated that nearly 60,000 persons succeeded in entering the Colony illegally during May.

       The situation on the border attracted world-wide publicity and although, on the whole, international comment was favourable -the patience and restraint of the police and military being especially commended--there was considerable public sympathy for the immigrants in western countries. Government's policy in returning them to China (and the reasons for it) were not always fully understood at the time and came in for criticism. In fact, the events of May were merely a rather more spectacular phase in the Colony's continuing struggle against uncontrolled immigra- tion-immigration motivated principally by economic and not poli- tical pressures.

Meanwhile, although illegal entry across the land frontier had virtually ceased by June, the number of persons entering cland- estinely by sea, both direct from China and via Macau, showed substantial increases, and in August the Governor authorized a special combined operation by units of the police and the revenue service, assisted by the armed services, under the command of an assistant commissioner of police. The unit has control of a large number of launches for continuous seaward patrols, and as a result of these and other measures the scale of illegal immigration has undoubtedly been checked significantly. Confidence in the cland- estine organizations dealing with the traffic from Macau was shaken by incidents in which illegal immigrants were landed on uninhabited islands, without food or water, under the impression that they had reached Hong Kong safely. Much public indignation was aroused in November when it became known that a large number of potential immigrants, being landed from a junk at Chai Wan, had been drowned when their craft capsized in rough seas. Thirty bodies were subsequently recovered. Government increased the penalties which can be imposed on aiders and abettors of illegal immigration to a maximum fine of $2,000 and imprisonment for three years. All vessels engaged in this traffic for which the courts make confiscation orders are destroyed to prevent their return to the trade.

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       The second major event of the year affecting the work of the Immigration Department was the enactment in Britain of the Commonwealth Immigrants Act, 1962, which came into force on 1st July. Persons born in Hong Kong and possessing British pass- ports who wish to visit Britain should now possess entry certificates endorsed in their passports if they wish to be certain of not being refused admission. A total of 957 certificates were issued during the year. The Act has also had some effect on the traditional migration to Britain of British subjects (principally residing in the New Territories) for the purpose of seeking work, usually in Chinese restaurants. They must now have employment vouchers before entry to Britain can be approved. The long-term effects of the new British immigration policy will not become clear for some time.

       There was a big increase of work in the Chinese section of the department due to illegal immigration, the growing desire of local residents to bring to the Colony their relatives in China, and various overseas migrant programmes which followed the influx of immigrants in April and May. Relaxation by the American Government of the requirements for the entry of Chinese into the United States resulted in a very large demand for travel docu- ments. These factors inevitably led to severe congestion, and much discomfort during the summer months, in Immigration Head- quarters. The heavy pressure of work imposed a considerable strain on the staff and permission was later given to increase the establish- ment to handle the extra work. It became quite commonplace, when checks were made, to find that well over 2,000 people a day were attending the Chinese section. The office accommoda- tion was quite inadequate for such a volume of traffic, but for- tunately some relief was obtained in May by opening a Kowloon sub-office where all types of immigration matters can now be handled. The office proved of great convenience to residents of Kowloon and the New Territories.

Three innovations introduced during the year were:

(a) Groups of tourists wishing to visit Hong Kong from Japan, Thailand, Indonesia, Taiwan, Singapore, Malaya, British North Borneo, Sarawak and Brunei may now do so with a single group visa under the sponsorship of well-known and reputable local travel agencies. The maximum period of

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stay allowed is 14 days. Parties must consist of not fewer than 10 people and not more than 100. The tourists must also travel as a group, i.e., enter and leave by one carrier. It is hoped this system will stimulate the tourist trade. (b) Immigration officers can now be sent by air at the expense of the shipping company concerned to Bangkok or Manila, in order to carry out immigration clearance of cruise ships (which often carry more than a thousand passengers) while en route to Hong Kong. This system not only enables a more thorough check of documents to be carried out, but also removes the need for ships to anchor in Kowloon Bay for clearance.

(c) Two revised forms of travel document, a re-entry permit and a certificate of identity, were introduced in November. Both are valid for three years initially, but are renewable for up to a further 12 years. There has been a heavy demand for these documents, which are in book form. Documents valid for a single journey are still available at a reduced fee the re-entry permit valid for three months and the cer- tificate of identity valid for a year.

        The usual concessions were made to enable school children and students attending schools and colleges in China and Macau to visit their families in Hong Kong during the Chinese New Year and school summer holidays. It became apparent during the year, however, that these concessions by which entry to the Colony was secured merely by production of a letter of introduction from the school authorities had been widely abused. Many entered who did not have parents here, and who were not bona fide students. Between 8th July and 30th August no fewer than 11,121 young people entered Hong Kong under these arrangements, and it is now obvious that of these more than 10,000 do not intend to return. Arrangements have now been made to tighten control on this traffic.

       The number of White Russians leaving China for settlement overseas, usually in South America, Australia, or Europe, greatly increased during 1962. A total of 1,611 Russians entered the Colony during the year under the sponsorship of the United Nations High Commissioner for Refugees. Their onward passage

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     is generally quickly arranged and there have been few problems from people in this category.

      The new airport terminal at Kai Tak, which came into operation on 12th November, provides facilities which are a great improve- ment over those in the old terminal. They have resulted not only in quicker clearance of passengers, but also in a much higher degree of comfort for both passengers and airport staff. Some difficulty was experienced during the year owing to an increase in sea traffic to and from Macau. The increase was coupled with revised ferry schedules which often meant that two or three vessels carrying a total of over 2,500 passengers arrived and left within two hours. Congestion was particularly acute at week-ends and on public holidays, and there was inevitably some delay in clearing incoming ferries. Various steps were taken to overcome this pro- blem, including the use of a queueing system. Passengers are now allowed to board the ferries up to 2 hours before departure.

The total recorded movement in and out of the Colony during 1962 was 2,708,303, an increase of 258,350 over the figure for 1961. Air passenger traffic involved a total of 604,290 movements for the year (excluding passengers in direct transit), showing an increase of 31.8 per cent over last year. The majority of tourists still come from America. Close contact is maintained with the Hong Kong Tourist Association for the accurate co-ordination of statistical information on tourist traffic and trends. Approval has now been given for a punched card system to provide a more efficient and speedier check on traffic. The main lines of movement are between Hong Kong and China, and Hong Kong and Macau. The setting up in 1961 of the Hong Kong Permit Office of the British Con- sulate, Macau, has enabled movement between Macau and Hong Kong to be more strictly controlled. Comparative figures for the past five years of movement in and out of the Colony, and the issue of visas, passports, certificates of identity and re-entry permits, may be seen in Appendix IX.

PRISONS

       There are eight institutions under the control of the Commis- sioner of Prisons. These are Stanley Prison, Victoria Prison, Lai Chi Kok Prison for women, Chi Ma Wan Prison, Tai Lam Prison for convicted drug addicts, Stanley Training Centre, Cape Collinson

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Training Centre and the Staff Training School. The first three are security prisons and the remainder open institutions.

During 1962 there was considerable progress in the building programme and a fine new mess hall, kitchen and recreation room were built for single warders at Stanley. New classrooms, work- shops, kitchen, dining hall and staff quarters were completed at Cape Collinson, while new married quarters for warders were occupied at Tai Lam. At Chi Ma Wan Prison staff quarters are being built entirely by prison labour for the first time and will be ready for occupation in the spring of 1963. The contract for water supply to the new prison at Tong Fuk, on Lantau Island, was let during the year. Tong Fuk will be the first prison to be built as such since Stanley Prison in 1937, as all other new institutions are in adapted buildings.

A site was chosen for the new Prisons Department Mental Hospital. Meanwhile staff are being trained at Castle Peak Mental Hospital and in the psychiatric observation unit in Victoria Prison. The rehabilitation programme for drug addicts at Tai Lam con- tinued to produce very encouraging results and the after-care service is being expanded, since much obviously depends upon the number of ex-prisoners who can be sympathetically supervised. The two training centres, with a joint average success rate of 71.62 per cent, are a source of pride to the department. The great majority of boys are found a job before leaving and the high success rate proves the value of the training system.

The staff of the Prisons Department includes 17 gazetted officers, 837 other ranks, and 190 executive officers, interpreter-translators, clerks, school-masters, social welfare officers, trade instructors, mechanics, storekeepers, telephone operators, messengers and labourers.

RECORDS

The Registrar General's Department comprises the Land Office, the Registries of Births and Deaths, Marriages, Companies, Trade Marks and Patents, the Offices of the Official Receiver in Bank- ruptcy and Companies Winding-up, the Official Trustee, the Judicial Trustee, and the Official Solicitor in Lunacy.

       Land Office. The Land Office is a public office for the registra- tion of deeds and other instruments affecting land. The system

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of registration is broadly similar to that in the Yorkshire Deeds Registries in England. The Land Registration Ordinance provides that all deeds and instruments registered under it shall have priority according to their respective dates of registration, and also that deeds and instruments not registered (other than bona fide leases at rack rents for any term not exceeding three years) shall be absolutely null and void as against any subsequent bona fide pur- chaser or mortgagee for valuable consideration. Registration is therefore essential to the protection of title, but does not guarantee it. Deeds affecting land in Hong Kong, Kowloon, portions of New Kowloon, and a few lots in the New Territories are registered in the Land Office, Victoria; deeds affecting land in the rest of New Kowloon and all other lots in the New Territories are registered at the district land offices of the New Territories Administration (land tenure is described in chapter 10). The Land Office, besides being a deeds registry, advises the Government on, and does the Government conveyancing in, all matters relating to land, including the sale, grant and exchange of Crown land, both in the urban areas and in the New Territories.

The building boom of recent years continued unabated. As mentioned in chapter 10 a great deal of new land was put on the market by the Government, in addition to which developers and brokers were very active in buying up old properties for redevelop- ment. In view of the extremely high price of land in all areas it has become necessary for economic reasons to build upwards, and in almost all parts of the urban areas large new blocks of flats were erected. Most of the schemes were undertaken by limited companies specially incorporated for the purpose there were no fewer than 417 land investment and development companies incorporated during the year. These companies sell off to individual purchasers the flats, shops, floors or other units in the building erected or being erected, each purchaser getting an undivided share in the land and building coupled with the right of exclusive posses- sion of a particular unit. There are often many hundreds of units in a block and in one case there were 920. A new feature noted during the year was the growing practice of splitting units up among several co-owners, who thus apparently become owners of cubicles in a flat. A working party set up by the Government in 1961 to study the problems of management and maintenance of

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sub-divided multi-storey buildings submitted its report and the recommendations were under consideration at the end of the year. In certain cases where the conditions under which the land was held gave the necessary power, measures were taken to con- trol the sale of flats in uncompleted buildings inter alia by requiring moneys paid in advance for units in the building to be used for that building only. These measures no doubt had a salutary effect in checking over-speculation. The adoption by some banks of a tighter lending policy had the same effect, but even so there is obviously still a great deal of money available to finance attractive projects.

Land Office statistics for the year reflect prevailing boom con- ditions. The number of instruments registered reached the record total of 28,089 as against last year's total of 26,735. The total of con- siderations recorded was $2,155,289,805, including $408,702,808 passing on sales of flats and $731,755,682 advanced on mortgages of land at an average rate of about 11 per cent per annum. At the end of the year the Land Office card index of property owners included the names of over 67,396 people, some owning several properties, others being merely co-owners of a small flat. A record number of 697 conditions of sale, extension, exchange, grant and re-grant of Crown land in the urban areas were put through during the year.

The Land Office maintains an elaborate card index showing the lot or section of a lot on which every building having a street number stands. The information contained in the index as at 31st March 1961 was published in the 27th edition of The Street Index which consists of two large volumes, one for Hong Kong and one for Kowloon and New Kowloon.

       Companies. The Companies Registry keeps records of all com- panies incorporated in Hong Kong and also of all foreign corpora- tions which have established a place of business in the Colony. Local companies are incorporated under the Companies Ordinance, which is based on the (now superseded) Companies Act, 1929, of Great Britain. On incorporation a company pays a registration fee of $100 plus $2 for every $1,000 of nominal capital. Whereas in the past joint enterprises by Chinese businessmen were under- taken mainly in the form of Chinese partnerships of the traditional type, Chinese businessmen have of recent years become 'company

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minded', and the numbers of registrations of companies owned by Chinese have been increasing greatly. Nowadays, most new enterprises of any magnitude are launched as limited companies. This is especially true of the building industry where it has become virtually the standard practice to form a new company for each new building venture. Because of the continued building boom and generally active business conditions there was for the fourth year running a sharp rise in the number of company registrations to the new record total of 1,070. The nominal capitals of the new companies registered during 1962 totalled $782,609,250, an increase of 20.8 per cent over the corresponding figure for 1961. Of the new companies, 28 had a nominal share capital of $5 million or over. At the end of the year there were 5,925 local companies on the register.

Companies incorporated outside the Colony are required to register certain documents with the Companies Registry within one month of establishing a place of business in Hong Kong. Only small filing fees are payable in such cases. During the year 53 foreign companies registered, and 17 ceased to operate. By the end of the year there were 477 foreign companies registered as compared with 441 in 1961. Usually, for tax reasons, many foreign companies incorporate subsidiaries in Hong Kong in pre- ference to operating a branch office.

A Companies Law Revision Committee was appointed by the Governor in April with the following terms of reference: "To consider and make recommendations as to the revision of the company legislation of Hong Kong, and in particular to recom- mend as soon as possible whether legislation for prevention of fraud in relation to investments is required and, if so, the form which it should take.' The committee has invited various bodies and members of the public to submit representations.

Local and foreign insurance companies which wish to transact life, fire and marine insurance business in Hong Kong must comply with the provisions of the Life Insurance and Fire and Marine Insurance Companies Ordinances. In addition to the filing of annual accounts, these ordinances require deposits to be made with the Registrar of Companies unless the company qualifies for exemption by complying with the Insurance Companies Act, 1958, in Great Britain, or in the case of fire and marine insurance-

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by maintaining similar deposits elsewhere in the Commonwealth. Arising out of the Colony's great commercial, shipping and in- dustrial interests, an immense amount of insurance business is transacted annually and altogether there are 195 companies engaged in it. The approval of the Governor in Council must be obtained for transacting motor vehicle third party insurance business.

      The Registrar of Companies keeps a list of all persons and firms authorized for appointment as auditors of locally incorporated companies. The list is in two parts: part one contains auditors authorized to audit accounts kept in English, and part two those authorized to audit accounts kept in Chinese. On 31st December 1962 there were 154 names (including 36 firms) in part one and 127 names (including 29 firms) in part two. The com- panies registry also deals with the incorporation of trustees under the Registered Trustees Incorporation Ordinance, 1958, and with the registration of limited partnerships, Chinese partnerships, and money-lenders.

      Trade Marks and Patents Registries. Trade marks are registered under the Trade Marks Ordinance, 1954, which is based on the Trade Marks Act, 1938, of the United Kingdom. The procedure is laid down in the Trade Marks Rules, 1954, and the prescribed forms may be obtained free of charge from the Registrar of Trade Marks, Registrar General's Department.

      During the year 1,916 applications for registration were received and 1,508 (including many made in previous years) were accepted and allowed to proceed to advertisement. A total of 1,558 marks were registered, the principal countries of origin being: Hong Kong 468, United States of America 349, United Kingdom 249, Japan 95, Germany 92, Switzerland 55, and France 35. The total number of marks on the register on 31st December 1962 was 19,003.

      Hong Kong law does not provide for the original grant of pat- ents, but patents registered in the United Kingdom are registrable under the Registration of United Kingdom Patents Ordinance (Chapter 42). This provides that the grantee of a United Kingdom patent may, within five years from the date of its issue, apply to have it registered in Hong Kong. Registration confers the same rights as though the patent had been issued in the United Kingdom

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with an extension to Hong Kong. One hundred and sixty-one patents were registered during the year as compared with 166 in 1961.

      Bankruptcies and Liquidations. During the year the court made six receiving orders and four orders for the compulsory winding up of companies. These cases, however, represent only a small fraction of the number of business failures because few Chinese businessmen care to submit debtors' petitions. At the same time creditors' petitions are kept down partly because creditors are disinclined to incur the high legal costs incidental to a petition, and partly because the court has power to dismiss a petition where it is not satisfied that the assets are sufficient to pay 15 per cent dividend to unsecured creditors. A company's business failure is usually followed by voluntary liquidation, or the company is simply left to be struck off the register. During 1962, 40 companies were dissolved by voluntary liquidation, and 81 by being struck off the register.

      Marriages. All marriages, except non-Christian customary marri- ages, are governed by the Marriage Ordinance. Under this, notice of an intended marriage must be given to the registrar at least 15 clear days before the date of the marriage. The registrar is empowered to reduce this period in special circumstances and the Governor may grant a special licence dispensing with notice altogether. Special licences are, however, granted only in the most exceptional circumstances. Marriages may take place either at places of public worship licensed for the celebration of marriages or at a marriage registry. Ninety-two places of public worship have been licensed for this purpose, and there are four full-time marri- age registries-three in the urban areas and one in the New Territories. In addition there are five sub-registries in outlying districts operating one day a week or one day a fortnight. All marriage records are maintained at the principal marriage registry, which, on 17th March, was moved from the Supreme Court Build- ing to specially designed accommodation on the first floor of the City Hall High Block. The new registry includes a spacious general office and a large, handsomely decorated and well furnished marriage room with seats for 36 people. During the year 10,241 marriages were performed in marriage registries and sub-registries, and 1,192 at licensed places of worship. The total was 822 less than in 1961.

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      The Marriage Ordinance does not apply to non-Christian customary marriages duly celebrated according to the personal law and religion of the parties, and such marriages do not require to be registered. Consequently no statistics of such marriages are available, but it is thought that despite the growing popularity of registry marriages there are still as many unregistered marriages as there are registered ones. The position regarding unregistered marriages is far from satisfactory. The great majority are of doubt- ful validity, since they are contracted not in accordance with the full traditional forms prescribed by Chinese custom but in sup- posed conformity with the pre-war civil code of China. This un- satisfactory situation and the best means of remedying it are under active consideration in the light of comments and representations made by various bodies and individuals following a report by the Attorney General and the Secretary for Chinese Affairs published during the preceding year.

       Births and Deaths. The registration of births and deaths is compulsory under the Births and Deaths Registration Ordinance. The General Register Office, at which all records of births and deaths are kept, is on the second floor of Li Po Chun Chambers, Connaught Road Central. Facilities for registration are also pro- vided at 17 district registries. Ten of these are on Hong Kong Island, four in Kowloon, and three in the New Territories. During the year two new full-time registries were opened at Yuen Long and Tai Po. In the outlying areas and islands, births are registered at the local rural committee offices by district registrars during regular visits, and deaths at local police stations.

      The ordinance provides for the post-registration of births which have not been registered within one year after the date of birth. Most of these post-registration cases concern adults and older children in the New Territories, where facilities for registration were not available until 1932. Since a birth certificate is essential for such purposes as school enrolment or obtaining a passport to go overseas for employment, thousands of applications for the post- registration of births are now being received, mostly from people in the New Territories. To deal with these, three mobile post- registration teams are operating in outlying villages.

      The Births and Deaths Registry compiles the Colony's vital statistics. These include birth and death rates and statistics of

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causes of death. For the latter the Hollerith system is used, 16 items of information about each death being recorded on a punched card.

During 1962, 111,905 births (57,852 male and 54,053 female) and 20,324 deaths (11,195 male, 9,126 female and three unknown sex) were registered as compared with 108,726 births and 18,738 deaths in 1961. The birth rate per mille was 32.8 and death rate per mille 5.9. Only 30 illegitimate children were registered without the name of the father in the birth entry. This small number is due to the fact that the ordinance provides that for its purposes every child of every Chinese male shall be deemed to be a legitimate child, and such Chinese male shall be deemed to be the father of such child. The births registered included those of 122 foundlings. Under the Adoption Ordinance, 1956, an adopted children register is maintained at the general register office. During the year 177 adoptions were registered as against 184 in 1961.

The ro

LAY

Since 1864 Hong Kong has been building reservoirs, but the demands of a rapidly increasing population have always kept ahead of the water supply. Now, at Shek Pik on Lantau Island, a reservoir that will add 5,400 million gallons is being built. The picture above shows workmen placing rein- forcing rods in a filtration tank at Silver Mine Bay.

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ཎརཱ ༤ ཏི

A mile-long motor tunnel is being driven through the Nine Dragons Hills to link the Kowloon peninsula with the New Territories. In addition to speeding communications the tunnel will also play an important part in the Colony's water distribution system, since mains will be laid below the roadway to carry water from a filtration plant in the New Territories.

14

Public Works and Utilities

PUBLIC WORKS

Waterworks. The history of the Hong Kong Waterworks has been marked by a succession of crises caused by demand outstripping supply. Water restrictions have been necessary in the dry months of almost every year and on one occasion the supply was reduced to 2 hours every other day. The increase in demand is illustrated by the fact that over a period of four years, on a 10-hour a day supply, consumption has risen by more than 62 per cent. This is a compound increase of 13 per cent a year and underlines the need for the large capital works now being carried out. This need was even more strongly stressed this year by an extremely dry winter and the continuation of drought conditions into the usually wet summer season. By 1st October each year no further heavy rains can normally be expected and all storage reservoirs must be substantially full if reasonable hours of supply are to be maintained throughout the dry season. The rainfall between 1st October 1961, and 1st October 1962, was nearly 19 inches below average and even after receiving 8,679 million gallons from the Chinese reservoir at Sham Chun the hours of supply were 31 per cent less than in the previous year.

Delivery of water from a 5,400 million gallon storage reservoir being built at Shek Pik on Lantau Island should begin toward the end of next year. The natural catchment of 1,917 acres at Shek Pik is being increased to 8,017 acres by catchwater channels which will carry water to the reservoir from distant valleys. In some places tunnels have been blasted through hill spurs and mountains to carry the water. The dam itself is almost at sea level and a valve tower will control the flow from various draw-off levels. Five and a half miles of supply tunnels will carry the water to a pumping unit at Pui O and thence to a treatment works overlooking Silver Mine Bay. Both the pumping unit and the treat- ment works will have a capacity of 35 million gallons a day.

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Eight miles of twin 30-inch submarine pipeline will carry the water from Silver Mine Bay to Hong Kong Island. Messrs Binnie and Partners are consulting engineers for all of the scheme between the reservoir intakes and the Hong Kong end of the submarine pipeline, while the catchwater channels and all works on Hong Kong Island are supervised by the Hong Kong Water Authority.

Some 20,000 feet of catchwater channels together with the impervious grout curtain under the main dam structure, the valve tower, the driving of supply tunnels to the pump house and treat- ment works, and the submarine pipeline to Hong Kong Island were completed. By the end of the year the main dam was 120 feet above the valley floor and both the pump house and treatment works were well advanced. On Hong Kong Island a pump house near the submarine pipeline terminal and a 30 million gallon reception reservoir on Mount Davis, together with a service reservoir overlooking Kennedy Town, and the trunk mains, were under construction.

      Concurrently with the Shek Pik scheme work started on stage one of the Plover Cove Scheme in which stream courses round the head of Tolo Harbour will be tapped. In some cases the streams will drop down shafts 300 feet deep to a main collecting tunnel which will carry the water to a balancing reservoir of 900 million gallons capacity being constructed below the Shing Mun Reservoir. From there the water will gravitate to the Sha Tin treatment works which will have a capacity of 80 million gallons a day. The treated water will then be pumped up to the tunnel now being driven through Lion Rock and mains under the roadway in the tunnel will carry it to service reservoirs above Kowloon. Stage one of the scheme will also provide an alternative route by which water received from the Chinese reservoir at Sham Chun can be brought in for treatment and delivery to Hong Kong's urban areas. A main collecting tunnel being built as part of stage one will have diameters of between 20 and 30 feet, and a length of approximately 12 miles. By the end of the year stage one was well under way with the construction of a pump house and intake at Tai Po Tau, a section of the main collecting tunnel and shafts, the Lower Shing Mun dam, the Sha Tin treatment works, the Lion Rock Tunnel, and service reservoirs on the southern slopes of the Kowloon Hills.

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      Ultimately, with the completion of stage two of the Plover Cove Scheme, the summer surplus yield of the streams round the head of Tolo Harbour will be stored at Plover Cove in a reservoir to be formed by damming an almost landlocked bay to form a fresh water lake. The main wall of this dam will be 14 miles long with a maximum height of 120 feet, of which 90 feet will be below sea level. The lake will have an area of 2,750 acres and a capacity of about 30,000 million gallons, which is nearly three times the present storage capacity of the Colony's reservoirs. Also in stage two the yield from the natural catchment of Plover Cove will be extended by tunnels and catchwater channels to bring in part of the yield from range of hills to the north. At the same time the capacity of the treatment works will be doubled. Messrs Binnie and Partners, together with Messrs Scott and Wilson, Kirkpatrick and Partners, have been appointed consulting engineers for the project. Construction work for stage two is expected to start in 1963. It will take several years to complete and will cost an estimated $335 million. Total cost of stages one and two is estimated to be $500 million, which makes it not only the most costly construction project ever carried out in Hong Kong but also one of the world's major engineering projects.

      The Tai Lam Chung Reservoir was opened on 7th May 1957, and since then the indirect catchment area has been extended by the construction of open concrete-lined channels and tunnels. With- out this extra yield the reservoir would not fill during an average wet season. In anticipation of the increased yields to be derived from the major schemes described above, and the ever- increasing demand due to expanding development, numerous works of a comparatively minor nature were completed in 1962 or were in hand. The year saw the completion of the Chung Hom Kok service reservoir and pumping station on the south side of Hong Kong Island, and the high level fresh water service reservoir and salt water flushing reservoir and pump house at Fung Wong in Kowloon. Work continued on service reservoirs at Magazine Gap and Conduit Road on Hong Kong Island, at Lion Rock and Ngau Tau Kok high level in Kowloon, and at Yuen Long. To this list has now been added Tsz Wan Shan reservoir. A total of 24,000 feet of trunk mains up to 48 inches in diameter were laid, while

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the Colony's network of distribution mains varying from two inches to 18 inches in diameter was extended to meet the demand created

by development.

Because of the heavy demand for potable water and the limited resources available, filtered water is made available for flushing in exceptional circumstances only. In the past the yield from wells was generally adequate to meet this requirement, but with much of the population now housed at densities exceeding 2,500 persons to the acre, the yield from wells is bound to be inadequate. For this reason increasing use is being made of sea water. This involves a completely separate system of pumps, reservoirs and distribution mains, while private builders must ensure when constructing new property that the inside services and the sanitary fittings can carry highly corrosive sea water. The close of 1962 saw the substantial completion of six sea water flushing schemes at Chai Wan and North Point on Hong Kong Island, and at Kwun Tong, Jordan Valley, Wong Tai Sin and Sham Shui Po on the mainland.

     To encourage economy in the use of water almost all fresh supplies are metered and consumers are charged $1 for 1,000 Imperial gallons. Overhaul and maintenance of meters forms a large part of the work of the waterworks workshops, and in addi- tion all castings made by local firms for the waterworks are tested and machined by the waterworks staff.

      During the year the Water Authority again improved and ex- tended the traditional irrigation systems on which New Territories farmers depend. A total of 21,000 feet of irrigation channels were lined with concrete and 28 diversion dams constructed. These works have reduced wastage and made possible more effective distribution of water from storage reservoirs built in previous years. Such reservoirs serve as insurance against delay in spring planting if the rains are late and can also be drawn upon by farmers during the dry weather to irrigate an additional crop of vegetables in fields which would otherwise have to be left fallow.

The year was one of drought and increased demand, with the result that supplies fell far short of expectation. However it was not entirely without compensation, for the dry weather enabled better progress to be made on new works with the result that the

汽车

TBICH

A new City Hall designed as a civic and cultural centre for the people of Hong Kong was opened in March. Built at a cost of $20 million, the Hall is a complex of five units-concert hall, theatre, memorial garden, 12-storey High Block, and central block containing ballroom and a banqueting hall used as a restaurant (below).

Performances of music and drama, and exhibitions of the arts connected with both Western and Chinese literature and painting, take place at the City Hall. The opera above tells the story of a Chinese queen who went to the moon.

The concert hall (right) has a seating capacity of 1,540 and an orchestral platform able to accommodate 90 musicians and a choir of 120. The theatre (below) is designed for more intimate productions and seats 470. It can also be used as a cinema.

V

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745

The High Block contains a library with a capacity of 250,000 English and Chinese-language books, divided into lending, reference (above) and children's sections. There are also lecture rooms, an exhibition hall (below), Vand photographic darkrooms and music rehearsal rooms that can be hired by the hour. On the top floors are a museum and art gallery.

ÒNG:

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229

additional resources of the Shek Pik Reservoir may become avail- able sooner than was originally expected.

      Buildings. The number of public buildings constructed during the year was again a record. Among the larger projects completed and occupied was the City Hall, which contains a large concert hall, a smaller theatre, a ballroom and banqueting hall, and a High Block housing a library, exhibition rooms, lecture rooms and other facilities. Education buildings included the new Northcote Training College at Pok Fu Lam, Kowloon Secondary Technical School, the Ho Tung Girls' Technical School, Tsuen Wan Secondary Modern School, Yuen Long Middle School, eight 30-classroom primary schools, and extensions to a number of existing schools. The Cape Collinson Crematorium and staff quarters were com- pleted. The crematorium is of special interest as it provides separate chapels or pavilions for Christian, Chinese and Hindu funeral rites, together with a garden of remembrance. A further stage was reached in the development of Kai Tak Airport when the new passenger terminal was put into operation in November. A stores and workshops block was constructed for use by airlines, and the airport police station was also completed.

The Anne Black Clinic at North Point and the Queen Elizabeth Hospital Specialist Clinic were completed and occupied. Other completed projects included the Cape Collinson Training Centre for young offenders; a fire station at Kwun Tong and 110 married quarters for Fire Services personnel at North Point; a number of urban amenities such as playgrounds, some with children's libraries, and eight public latrines and bathhouses in various localities; three small combined Government office buildings in the New Territories, and many smaller projects. The resettlement housing programme for squatter clearance included the completion of 26 domestic buildings with a total of 3,259,475 square feet of habitable floor area, including space for shops, schools and welfare facilities. The first low-cost housing estate was finished at Kwun Tong, providing accommodation for some 5,700 people in four buildings.

      New projects under construction at the end of the year included 30 blocks of resettlement housing and three resettlement flatted factories in estates at Chai Wan, Lo Fu Ngam, San Po Kong, Tung Tau, Tsz Wan Shan, Wang Tau Hom, Shek Kip Mei, and Tai Wo Hau. Site formation was in progress at further estates and

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     Resettlement Department staff quarters were also under construc- tion at a number of the estates. A total of 15 low-cost housing buildings were in course of construction at Kwun Tong, Wong Tai Sin, Shek Kip Mei and Valley Road.

      Building was in progress on the 1,320-bed Queen Elizabeth Hospital and on six clinics, and also on quarters adjacent to the hospital site. These, together with another project at Mount Nicholson on Hong Kong Island, will provide a total of 156 quarters for senior Government officers. Quarters were also in course of construction for junior Government personnel, including 1,450 married quarters for rank and file members of the police. Wong Tai Sin divisional police station, three police posts in the New Territories and a police training school on Hong Kong Island were also being built. Other buildings in course of construction included a welfare centre at Aberdeen, a multi-storey park for about 700 cars on the former Murray Parade Ground, a public park and swimming pool at Kowloon Tsai, the 20-storey Kowloon central post office with departmental Government offices on the upper floors, electrical and mechanical workshops in Kowloon, a number of schools and many smaller projects.

A large number of Government buildings were in various stages of design, including 10 schools, major extensions to the Queen Mary Hospital, 10 health centres and clinics for various districts, two large abattoirs, four public markets, a number of public play- grounds and rest gardens, three fire stations, three police stations and two operational bases for the marine police, a police training contingent depot and a number of police quarters, a short-term prison at Tong Fuk on Lantau Island, a community centre in Kowloon, the Chuk Yuen children's reception centre, a probation home in Kowloon, Cheung Sha Wan post office, a number of com- bined departmental office buildings in urban and outlying districts, various grades of quarters for Government servants, a multi-storey car park, an animal quarantine depot at Tai Lam and quarantine kennels in Kowloon. In addition to these and many smaller build- ings, plans were in various stages of progress for further large resettlement housing and low-cost housing estates. These neces- sitate careful planning in order to form the required sites and provide the necessary services for the annual resettlement of 100,000 squatters and 20,000 persons in the lower income groups.

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Drainage. Nearly all built-up areas, including the larger towns in the New Territories, have waterborne sewerage systems. How- ever, as large new blocks of flats take the place of older and much smaller buildings the flow to the sewers is steadily increasing. Many of the older sewers are becoming laden beyond their designed capacity and an accelerated programme to replace them with larger mains is vital. The nuisance from seawall sewer outfalls has grown and there are extensive plans to build intercepting sewers which will carry the sewage to selected sites where it will be treated and discharged into deep water through submarine outfalls. Of five schemes for the Kowloon peninsula the Yau Ma Tei scheme is in operation while the other four are in an advanced stage. Work on three of five schemes on Hong Kong Island was started during the year and one of these, the Wan Chai scheme, is in partial operation.

Surface water draining down from the hills through built-up areas was formerly led to the sea through large open channels, known as nullahs. These nullahs were frequently 10 feet wide or more and were normally located in the centre of the road. With the tremendous increase in both vehicle and foot traffic such obstructions had to be removed, and during the last 10 years many nullahs have been decked over. Extensive systems of culverts have also been constructed at several resettlement estates, and in new towns such as Tsuen Wan, Kwai Chung and Shek Wu Hui, to divert stream-courses and facilitate drainage.

Investigations into the cause of disastrous floods at Yuen Long in May, 1960, have resulted in a plan to reduce the risk of future flooding. It provides for the construction of new culverts and the realignment of existing stream-courses over a period of five years. Construction of the first stage was nearly complete at the end of the year and work had started on some of the other stages. Similar plans for flood control in other vulnerable areas of the New Territories, in particular the Indus River basin, were also being prepared. Improvements to the drainage and sewerage systems of such small outlying communities as Sai Kung, Peng Chau, Cheung Chau and Sha Tau Kok were also undertaken during the year.

Port Works. The most important work in progress during the year was the central reclamation scheme, which will eventually link the reclamation already carried out for the Star Ferry piers

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     with the completed section of reclamation at Rumsey Street. Near the Star Ferry pier, 500 feet of seawall and three berths for post office mail launches were practically completed. To assist private developers to obtain cooling water for air conditioning plant in new buildings, 11 pump houses were constructed within the seawall. To replace Blake Pier work started on a large new public pier which will be approximately 585 feet long and will have a pedestrian promenade on the roof. West of the present vehicle ferry pier, foundations for a new seawall were completed and construction started on a new pier for inside harbour ferry services to replace the present berths at Jubilee Street, which will be enclosed by the reclamation. Filling started on both sections of the reclamation. At North Point work began on the construction of a new passenger ferry pier which, when completed, will be used by services running to Kowloon City and Hung Hom. Work on new vehicle ferry piers at North Point and Ma Tau Kok continued.

      The first stage of a large development scheme for Aberdeen started in July when work began on a breakwater at the western end of Aberdeen harbour to provide protection against westerly gales, which have caused severe damage in recent years. After the breakwater has been completed a reclamation will be carried out to connect the mainland with Ap Lei Chau Island and so provide much needed land for development. Breakwaters are also planned for the southern channel into Aberdeen to form a further typhoon shelter on the eastern side of the town.

In Kowloon an additional 2,000 feet of seawall was constructed at Kwun Tong and a further 42 acres of reclamation completed, bringing the total to 225 acres. At To Kwa Wan work started on preparing foundations for 1,800 feet of seawall for a new reclama- tion of 17 acres. Rocky Island and its temple will be enclosed and preserved in a public recreation area. At Hung Hom work began on a further 2,800 feet of seawall which will complete the reclama- tion and increase its present size by a further 30 acres. The rec- lamation ultimately will be occupied by a new railway station and a marshalling yard to replace the present facilities at Tsim Sha Tsui, and new ferry piers will be constructed nearby.

      The construction of a new public pier was started at Yung Shue Wan on Lamma Island, while at Silver Mine Bay on Lantau Island work began on an additional 500 feet of seawall which will

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Each week groups of youngsters from poor families leave Hong Kong for Silver Mine Bay, on Lantau Island. There, at a holiday camp run by the Hong Kong Conference of Youth Organizations, they have the holiday of their lifetime, with a beautiful beach to play on, plenty of sea air-and community singing to end each day.

Even on holiday there are minor tasks to do but you can take it from me that when I've finished sewing I'm off to the beach with the other girls.

None of the 66 girls in the group below had ever had a holiday before. They loved Lantau and all want to go back another year. If they're lucky, they will.

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233

      provide better berthing facilities for ferries and other vessels. The seawall is designed so that it will also be possible to provide a vehicle ferry berth. A large number of minor works were also carried out during the year, including the construction on dangerous rocks of several automatic light beacons for the Marine Depart- ment. Some of these rocks are only accessible in exceptionally calm weather, which meant that it was only possible to work on a few days during the year.

The materials testing laboratory, which is operated by the port works office, carried out nearly 25,000 tests on building materials for Government departments and private firms. The figure was 18 per cent above that for the previous year. The biggest increase was in work for private firms and the fees for tests amounted to over $42,000. New apparatus is being installed to cope with the increasing demands for tests and to conform to revised British standards.

Land Development. The continuing demand for new building land in the Colony is being met both by large scale site formation and by reclamation schemes. Much of the land for two new towns is being provided by reclamation-Kwun Tong in New Kowloon and Tsuen Wan in the New Territories. Work at Kwun Tong started in 1955 and is planned for completion in 1968. So far two- thirds of the planned area of 588 acres has been formed, including 230 acres of reclaimed land. The average rate of production has risen to three acres a week. The population of the new town at the end of the year was 150,000 and 89 factories had been established. At Tsuen Wan many sites are being formed by private developers, while Government schemes produce about half an acre of building land a week. The main contract, which is to be let early in 1963, will provide 500 acres of new land in five years. Formation work, excluding services, will be carried out by con- sulting engineers and is expected to cost about $85 million.

Other major site formation schemes in hand include those for a military hospital, for low-cost housing at Valley Road and for high class housing at Ho Man Tin, totalling about 80 acres. In addition proposals have been submitted for the development, partly by private enterprise and partly by Government, of 183 acres of land opened up by the new Lung Cheung Road on the south side of

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the Kowloon Hills. The Government part of the site formation work is in hand.

Local Public Works in the New Territories. The New Territories Administration supplies building materials and encourages villagers to use their own labour on village works which are too small for the Government's public works programme. Where villages cannot supply or hire labour from their own resources, district officers may let contracts for the entire work. Larger works may be handled by the New Territories engineering unit, which is under the super- vision of an engineer seconded from the Public Works Department. This self-help scheme has grown considerably in recent years and $2 million was provided for it in the financial year 1962-3.

      During 1962 villagers completed many projects such as foot- paths, van tracks, drainage channels, bunds, dams, wells, bridges and playgrounds. One of the most popular schemes is the installa- tion of piped water to enable villages to obtain domestic supplies from unpolluted hill streams. During the past four years 121 miles of water piping have been supplied for this purpose. In addition, the New Territories engineering unit placed 12 contracts to a total value of $249,456 during 1962. Of these, five were for footpaths, five for aqua privy latrines, one for the repair of a seawall and one for construction of a water storage tank. Most of the works were for the benefit of remote communities.

PUBLIC UTILITIES

      Electricity. The generation of electricity for Hong Kong Island is carried out by the Hongkong Electric Co Ltd at their North Point 'A' and 'B' power stations. With the commissioning of a 315 klbs/hr boiler in November the total steam raising capacity is 2,296 klbs/hr while the total generating capacity is 170 MW. No new generating plant was commissioned during 1962. The primary and secondary transmission voltages are 22-kV, 11-kV and 6.6-kV, with 33-kV transmission to be established next year. Bulk supplies are given at 11-kV and 6.6-kV, with industrial and domestic supplies at 346 volts three phase four wire and 200 volts single phase respectively.

      The 1962 maximum demand on the generating plant increased by 14.8 per cent to 130.9 MW and the maximum units sent out by the stations in a single day increased by 11.68 per cent to

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235

2,077,350 kilowatt hours. New primary substations at Hospital Road West and Taikoo (Westlands Road) were completed during the year. The rebuilding of Zetland Street primary substation is nearing completion. Forty-two secondary substations were among the distribution projects completed in 1962.

The amount of electricity generated in 1962 was 596,315,185 kilowatt hours, an increase of 11.25 per cent over the previous year, and the number of consumers at the end of the year was 111,408, an increase of 4.93 per cent. The total sales of electricity for 1962 were:

Lighting

Public lighting Bulk power

Domestic and commercial power

138,714,958 kWh

4,574,094 92,018,526

""

99

282,227,699

33

517,535,277 kWh

       Charges for electricity range from 28 cents to 15.4 cents a unit for lighting and 12 cents to 11.4 cents a unit for power. These rates are subject to a variable fuel surcharge which, at the end of the year, was seven per cent. Special rates are quoted for bulk con- sumers of industrial power.

       Electricity for Kowloon and the New Territories, including Lantau Island and many other outlying islands, is supplied by the China Light and Power Co Ltd. The increased demand for electrical energy experienced in recent years continued unabated. The capacity of the generating station at Hok Yuen, facing Kowloon Bay, was increased to 302.5 MW during 1962 by the addition of two 60 MW turbo-alternator sets and associated boilers. Steam for the turbines is supplied at 900 pounds per square inch at 900°F and the output of each generator steps up from 11,800 volts to 33,000 volts for transmission to various bulk-supply sub- stations. The substations use automatic voltage controlled trans- formers to control the voltage at 11,000 or 6,600 volts to supply distribution and factory substations. Distribution to domestic and small industrial consumers is at 50 cycles AC, 200 volts single phase or 346 volts three phase.

       Two more 60 MW turbo-alternator sets, including boilers, are on order. Switchgear, transformers and oil-filled cables are also on order to inaugurate a 66,000 volt transmission system. The first

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     of these cables have already been installed and put into use on the 33,000 volt system. Progress continued during the year on the rural electrification scheme and 100 villages in the New Territories were provided with electricity on the same basis as urban dwellers. On 30th September 1962, the length of the company's system was: 66,000 volts (operating at half pressure), 27.8 miles; 33,000 volts, 209.4 miles; 11,000 and 6,600 volts, 313.6 miles. There were 442 substations and 1,050 transformers with a total capacity of 940,260 KVA.

      Supply was given to 204,639 consumers, an increase of 13.8 per cent, and 1,149,584,400 units of electricity were generated, an increase of 19.4 per cent over the previous year. In all, 980,940,670 units were sold, made up of 18.41 per cent lighting, 0.56 per cent public lighting, 36.35 per cent power and 44.68 per cent bulk supply. Charges per unit during the year were: Lighting, 29 cents; power, 14 cents; domestic cooking, 13 cents. These rates are subject to a variable fuel surcharge which at present is seven per cent. Discounts are granted for large consumption and special rates quoted for bulk industrial supply.

      Negotiations which had been proceeding with the two electricity companies since early in 1960, in an effort to devise some alter- native form of public control to the compulsory public acquisition recommended by the Electricity Supply Companies Commission, resulted in May in a provisional agreement between Government and the boards of the two companies. The provisional agreement covered merger of the companies and an arrangement for linking future increases in dividend with reductions in charges. It became apparent, however, in July that the merger terms would not secure the consent of an adequate proportion of the shareholders of the China Light and Power Co Ltd. Government then proposed that the merger terms should be the subject of an independent assess- ment, but, toward the end of the year, Hongkong Electric Co Ltd announced that it could not accept this and it became clear that it was unlikely to be possible to reconcile the interests of the two companies in terms of a voluntary merger. The problem of the future control of the companies therefore still remained to be solved after three years of negotiation.

      The only part of the New Territories to have an independent source of electricity is the island of Cheung Chau, where there has

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237

been a power station since 1913. Originally a community project, it was later sold to commercial interests and has since changed hands several times. The present owners, the Cheung Chau Electric Co Ltd, have their offices in Victoria. The basic rate was again reduced during the year and now stands at 65 cents a unit for lighting and 28 cents a unit for domestic and commercial power. Special reductions are given to large consumers.

      Gas. The Hong Kong and China Gas Co Ltd supplies gas to domestic, commercial and industrial consumers in the Colony. Gas production is centred at Ma Tau Kok in Kowloon, and Hong Kong Island is supplied by underwater mains crossing the harbour. Appliances and gas equipment can be obtained from or through the company by purchase, hire-purchase or rental. Technical advice on the commercial and industrial uses of gas is freely available. Gas is sold in units of 100 cubic feet and charges are of two kinds standing charges and regular charges. Standing charges include the cost of the first seven units of gas and are chargeable whether the units are consumed or not. They are as follows:

For meters having a rated capacity of less

than 1,000 cubic feet an hour

...

For meters having a rated capacity of more

than 1,000 cubic feet an hour

$11.10 a month

$24.60 a month

      Under regular charges gas consumed in excess of seven units a month is at the following rates:

8-

.

20 units @ $1.30 a unit 21- 100 units @ $1.28 a unit

101-

251-

250 units @ $1.25 a unit

$1.20 a unit

$1.15 a unit

500 units @

501-1,000 units @

1,001-2,000 units @ $1.10 a unit

Over 2,000 units @ $1.05 a unit

      The company is prepared to consider special bulk supply rates on an individual basis for consumers using over 5,000 units a month. The total quantity of gas sold in 1962 was 909,096,400 cubic feet compared with 845,227,300 cubic feet in 1961. The number of consumers rose from 15,446 to 16,448. The company now offers liquified petroleum gas (bottled gas) to consumers who are unable or do not wish to use gas supplied through the company's pipes. The charge for bottled gas ranges from 65 cents a pound for domestic consumers to 50 cents a pound for bulk supply.

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Ferries. The 'Star' Ferry Co Ltd runs a passenger ferry service across the narrowest part of the harbour between the commercial centre of Victoria city on Hong Kong Island and the southern tip of the Kowloon peninsula. There are eight vessels in operation and a ninth will go into service early in 1963. There is a daily service of 21 hours and during peak periods a ferry leaves from each side of the harbour every three minutes on the seven minute journey. The service continues until 3 a.m. During 1962 there were 162,213 crossings and nearly 47 million passengers were carried. The highest daily total was 182,561. The company's vessels steamed 129,770 miles.

The Hongkong and Yaumati Ferry Co Ltd operates a fleet of 57 diesel engined ferries on six cross-harbour services and seven services to outlying areas. The routes inside the harbour are between Wilmer Street, Jubilee Street, Stewart Road and Tonnochy Road on Hong Kong Island, and Sham Shui Po, Mong Kok, Jordan Road and Kowloon City on Kowloon peninsula. The com- pany also operates a combined vehicle and passenger service across the harbour between Jubilee Street and Jordan Road from 6.20 a.m. to 2 a.m. This service is supplemented by a temporary ferry service for vehicles only between Rumsey Street and Jordan Road.

During 1962 a record of 112,600,000 passengers and 2,470,000 vehicles were carried, an increase of 9.3 per cent and 23.6 per cent respectively over the previous year. The company's services to out- lying districts call at Castle Peak, Tung Chung and Tai O; Silver Mine Bay, Peng Chau and Cheung Chau; and Lamma Island. There is also a service from Tai Po Kau to Tap Mun in Tolo Harbour. The ferry service to Lamma Island started on 17th May and provides a regular link between Hong Kong Island and one of the nearest but comparatively least developed islands in the Colony. During the year the company ran a popular excursion trip round Hong Kong Island leaving twice weekly from Jubilee Street ferry pier. Tourists in particular were able to benefit from this service. The journey takes approximately three hours and the fare is only $2.50 (equivalent to 3s 2d sterling or 45 cents US).

Two new vessels were built for the company during the year. These were the Man Ting and the Man Bong. The vessels have a length of 120 feet and a breadth of 42 feet and each is capable of carrying 530 passengers and 25 lorries or 45 cars. They are

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239

equipped with Voith Schneider propulsion. A new steel hull was constructed for a single-ended ferry the Man Kwok, which can carry 450 passengers.

PUBLIC ROAD TRANSPORT SERVICES

Public bus services are operated by two private companies. One has an exclusive franchise for Hong Kong Island and the other an exclusive franchise for the mainland of Kowloon and the New Territories. Taxis operate on Hong Kong Island and in Kowloon, while New Territories taxis-most of which are nine-seater vans hired jointly by groups of people-operate between Kowloon and the New Territories. They also operate to a smaller extent between New Territories towns. Tourists make almost exclusive use of hire cars, which are available with or without drivers, or sightseeing services provided by hotels and travel agencies in public cars. There are ample goods vehicles of all sizes available for casual hire. Dual-purpose vehicles which have accommodation for pas- sengers as well as goods cater for those who wish to accompany small consignments of goods.

       During the year Government accepted a recommendation by the Advisory Committee on Public Transport that there should be a full survey of public transport services to ensure the optimum use of present resources, to establish standards for public transport services and to forecast future growth. There was much public criticism of the standards of service provided by the public trans- port undertakings and the committee advised that without such a survey it was impossible to say whether the complaints were justified and what standards of service should be adopted. A public transport unit was established in the Colonial Secretariat during September to serve the committee and prepare for the survey.

       Bus Services. On Hong Kong Island bus services are maintained by the China Motor Bus Co Ltd. During 1962 the company's fleet of 325 vehicles covered some 13,528,571 miles and carried over 134 million passengers. The introduction of double- decker buses was delayed by unforeseen circumstances but there were additions to the number of single-deckers in service. Fifty new buses were ordered at the middle of the year, including 30 double-deckers.

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      A new route was introduced between North Point and Happy Valley, and two additional services were operated to Repulse Bay and South Bay on Sundays and holidays during the summer months. Two feeder services on the Peak were withdrawn due to lack of support. The company operates a welfare centre and provides free medical treatment for its staff. Low-cost housing is also provided for some 250 employees and their families, and additional housing will shortly become available at a new depot which is nearing completion at North Point.

Bus services in Kowloon and the New Territories are maintained by the Kowloon Motor Bus Company (1933) Ltd. At the end of the year the company was operating 59 routes (34 in Kowloon, 24 in the New Territories and one on Lantau Island). This was an increase of four routes over the previous year. Improvements in frequencies, time tables and itineraries were made on 29 routes during the year. The company's fleet at the end of the year totalled 777 vehicles comprising 374 single-deck buses, 395 double-deck buses and eight tour coaches. Thirty AEC 124-passenger double- deck buses arrived in the Colony for completion in the company's workshop and in August 1962 an order was placed for 100 Albion single-deck buses. During 1962 482,500,000 passengers were carried compared with 436,500,000 in 1961. The total distance covered by the company's buses in 1962 was 38,750,000 miles compared with 35 million miles in 1961.

      Tramways. An electric tramway service is operated on Hong Kong Island by Hong Kong Tramways Ltd. The track, the gauge of which is 3 feet, is about 191⁄2 miles in length if single tracks are measured. It goes from Kennedy Town to Shau Kei Wan, with a branch line round the race course in Happy Valley. All routes pass through the city of Victoria. The tramcars are four- wheeled double-deckers, with single staircases, and are designed for single-ended working, the termini having turning circles. The operating current is 500 volts direct.

      The average daily service of cars run in 1962 was 146. This gave a car every two minutes in each direction on all routes. Through the city area, which is in the centre of the system, the minimum frequency of service was a car every 34 seconds in each direction. The number of passengers carried during the year was 189 million, and the total distance run was 7,700,000 miles.

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241

Fares are charged at a flat rate for any distance over any route and are 20 cents first class, and 10 cents second class; the maximum distance is 63 miles. The company also issues monthly tickets, and concession fares are given to children, students and Services per- sonnel. The company has taken a leading place in providing welfare facilities for its employees. These include free medical and dental services, entertainment, rest rooms, sport and low rent housing.

       The Peak Tram. The Peak Tramways Co Ltd runs a funicular railway service up the Peak, which rises steeply behind the central district of Victoria. The company was formed in 1888 to provide transportation for residents of the Old Peak Hotel, which no longer exists. The original haulage equipment was steam driven, but in 1925 the tramway was modernized and the machinery changed to a system of haulage of the mining type which, with modification, is still used.

Modern lightweight locally built aluminium cars, drawn along tracks by nearly two miles of steel cable, carry about 1,750,000 people up the mountain each year. The cars seat 72 passengers and two of them can carry 850 people up and down the Peak in an hour. The tramway takes passengers up to an altitude of 1,305 feet above sea level, and the steepest part of the track has a gradient of one in two. It is reputed to be the steepest funicular railway in the world using a steel wire rope as its sole means of haulage.

Taxis and Hire Cars. The Road Traffic (Taxis and Hire Cars) Regulations, 1960, provide for the registration and licensing of taxis for use specifically on Hong Kong Island, in Kowloon and in the New Territories. The conditions under which they may be used, and the fares charged, vary with each area. On Hong Kong Island taxis carry four or five and fares are $1.50 for the first mile and 20 cents for every one-fifth of a mile thereafter or 25 cents for every quarter mile thereafter, depending on the type of taximeter in use. A taxi service limited to journeys to and from the Peak on Hong Kong Island carries three passengers at a rate of $1 a mile and 20 cents for each quarter mile thereafter. The number of taxis on the Island increased to 631 during the year. In Kowloon there are small and large taxis for either three, four or five passengers respectively. The fare charged by all

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taxis in Kowloon is $1 for the first mile and 20 cents for every quarter mile thereafter. The number of taxis in Kowloon increased to 612 during the year. There are 524 taxis licensed to operate in the New Territories. They may operate anywhere in the New Territories and may transport passengers to any place in Kowloon. They may pick up passengers in Kowloon for destina- tions in the New Territories but only at taxi stands reserved for their use in Kowloon. They may not operate internally in Kowloon. Fares for New Territories taxis carrying up to four passengers are 80 cents for the first mile and 20 cents for every quarter mile thereafter. For taxis carrying five to nine passengers the fare is $1 for the first mile and 25 cents for every quarter mile thereafter.

      Hire cars are also licensed under the provisions of the Road Traffic (Taxis and Hire Cars) Regulations, 1960. These vehicles can be hired by members of the public for carriage of persons or goods. They may be driven by the hirer, provided he or she holds a valid driving licence to drive a private car, or the licensee may provide a properly qualified driver. No scale of fees is laid down by law for the hire of these cars and amounts charged vary in accordance with the type of car, period of hire and whether or not a driver is provided. At the end of the year 120 hire cars were licensed. They are used mainly by tourists. Public cars are operated in accordance with a franchise granted by the Governor and are used for transport services excluded from the monopolies of the major bus companies. At the end of the year there were 91 licensed public cars. They are used mainly by tourists on sightseeing tours, by hotel managements who provide transport for their guests, and for the carriage of passengers and employees between the airport and hotels, airline offices and ferry termini.

      In April the taxi companies were advised by the police traffic office that vehicles licensed to carry four passengers could have this capacity extended to five provided the gear lever and taxi- meter allowed sufficient room on the front seat for an additional passenger. The first of such vehicles were licensed in April, and by the end of the year there were 227 five-seater taxis operating in Hong Kong, 152 in Kowloon and 40 in the New Territories.

15

Communications

HONG KONG Owes its existence to its position on the China Coast, where it is a focus for most of the communications routes of eastern Asia. Since the Second World War the traditional entrepôt trade has been superseded by industry and the Colony is now more than ever dependent upon efficient communications services of all kinds.

MARINE

       The Port of Victoria is fine natural harbour, to which have been added all the facilities required by modern ship operators. Berths at Government buoys or at private wharves and piers allow a continual flow of ocean and coastal shipping to pass through the port without delay, while modern cargo handling equipment ensures the rapid turn-round vital to shipping economy. Chinese crews have an excellent reputation for hard work and ability, and may be engaged for an entire ship or for individual shipboard departments. All the ancillary services essential to the efficient day-to-day running of a ship can be provided at short notice by ship contractors, repairers and chandlers specializing in mainte- nance and painting, victualling, watering and refuelling.

       The Director of Marine, assisted by the staff of the Marine Department, is responsible for the administration of the port. The department co-operates closely with shipping and commercial interests through various port committees to ensure that port facilities and services keep pace with the ever-changing needs of Hong Kong and of the shipping companies.

A comprehensive system of navigational aids covers the harbour approaches and first contact with the port can be made by using the radio beacon or the 21 mile light which, together with a diaphone fog signal, is maintained by the Marine Department on Waglan Island. Closer approaches are well covered by lighthouses, beacons, fog signals and light buoys fitted with radar reflectors, which allow entry to the port by day or night in all weathers.

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     Vessels enter the harbour by Lei Yue Mun in the east, with depths up to 36 feet, by Sulphur Channel in the west, with depths of 28 feet, or south of Stonecutters Island, also with depths of 28 feet. Although pilotage is not compulsory, it is recommended owing to the density of traffic and the constant reclamation and harbour works.

      Quarantine and immigration formalities take place at the eastern or western quarantine anchorages. Port Health and Immigration Department launches are on duty from 7 a.m. to midnight in the eastern anchorage and from 7 a.m. to 6 p.m. in the western anchorage. Radio pratique may also be granted in certain cases and this arrangement, apart from reducing the number of move- ments within the busy part of the harbour, is popular with passengers and consignees as it means that disembarkation and cargo work can begin immediately a ship is berthed.

      First sighting reports of vessels in the eastern approaches are made from the signal station at Waglan Island and passed to port control, owners and agents. Three other signal stations, manned continuously, report all shipping movements to the port control office and maintain ship-shore communications in the harbour and approaches. Navigational warnings, distress and weather messages are passed through the marine radio system, while marine officers attached to the port control office are available at all times to deal with emergencies and queries.

Radio telephones on a common circuit are installed in the Marine Department signal tower, at Waglan and Green Island lighthouses, at the port control office and in marine and port health launches. Police, Immigration, and Commerce and Industry Depart- ment launches are fitted with radio telephones on their individual departmental circuits. Vessels at buoys and wharves may hire radio telephones commercially to link up with the public telephone services.

The Marine Division of the Hong Kong Police is responsible for internal security and its launches maintain constant patrols in the harbour and waters of the Colony. Fire is an ever present hazard to shipping and one of the largest and most up-to-date fire-floats in the world, the Alexander Grantham, is maintained in constant readiness by the Hong Kong Fire Services Department. Smaller fire-floats are stationed both inside the main harbour and

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in the smaller ports of the Colony. At key points around the harbour portable banks of carbon dioxide cylinders have been established, each bank being capable of smothering a fire in the largest hold of any ship visiting the port.

On December 8 the 3,000-ton freighter Forecariah caught fire off Stonecutters Island. The vessel, though gutted by flames, did not sink.

Port activity in 1962 again showed an increased movement of shipping, though the delayed effects of a seamen's strike in Japan caused the number of inward ships to fall during the first week of May. The subsequent settlement of this strike, which had tied up over 500 ships in Japanese ports, caused the heaviest influx of shipping in post-war years, but careful planning enabled the resulting difficulties to be satisfactorily resolved. Transhipment cargo accounts for an appreciable proportion of cargo handled in the port. Details of vessels entered and cleared during the year, together with figures of cargo loaded and discharged, are in Appendix X, which also shows the number of passengers, includ- ing emigrants, who landed and embarked during the year.

The Colony continues to develop its industries, and shipping companies bring in the raw materials and take away the finished products. Many well-known and old-established shipping com- panies maintain regular and frequent services to and from Hong Kong; some 20 companies provide regular sailings to Europe and an equal number to the North American continent. There are also regular services to Australia, New Zealand, South America, South Africa and Asian ports. Hong Kong continues to be a popular tourist centre and large luxury liners on round-the-world or trans- Pacific cruises call frequently. The provision of an ocean terminal for the largest passenger vessels likely to visit Hong Kong within the next decade is being planned for ships of draughts up to 36 feet, the convenience of tourists being a paramount consideration in the proposed three-tier building. It is expected that this new terminal will be ready in 1966 and in the meantime a temporary passenger terminal was completed during the year at Navy Street, Tsim Sha Tsui.

Fifty-two moorings for ocean-going vessels are maintained by the Marine Department. Of these, 25 are classified as suitable for the use of vessels up to 600 feet in length in typhoon conditions,

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and eight for vessels up to 300 feet in length. Commercial wharves are able to accommodate vessels up to 750 feet in length with a draught up to 32 feet. In addition to harbour moorings and wharfage considerable anchorage space, with adequate holding ground, is available both inside and beyond harbour limits. It is estimated that wharf and godown companies have total storage space of well over 1,000,000 tons, catering for the storage and transhipment of all types of refrigerated, dangerous and ordinary goods. During the year several new godowns were completed, in- cluding multi-storey types at Tsim Sha Tsui, West Point, Tsuen Wan and North Point. Another single storey godown, of pre- fabricated design, was completed on the Hung Hom reclamation.

Most cargo handled in Hong Kong is at some stage transported by lighter. There are now several hundred lighters and junks used for this purpose and more than 250 have engines. This mechanized fleet is expected to grow in the future as it is a form of transport particularly suited to the handling and delivery of the small parcels of cargo which make up a considerable proportion of the tonnage handled in the port. A new oil tanker terminal was completed this year at Tsuen Wan, bringing the number of terminals to four. First class bunkering services are provided, either at the oil depot wharves or by lighter. Fresh water is also available, although the supply may be limited in the dry season.

       Officers of the Mercantile Marine Office supervise the engage- ment and discharge of seamen serving in British ships and ships whose countries have no consular representation in Hong Kong. It is estimated that some 30,000 Hong Kong seamen are regularly engaged in a sea-going capacity in ships of many different national flags. A port welfare committee ministers to the needs of crews of visiting ships, working with religious and other organizations devoted to this work. The committee administers a recreational club in Kowloon which is very popular with ships' crews. During the year $185,950, provided partly by private donations and partly by a Government subvention, was made available for port welfare

purposes.

The current recession in shipping affected the two allied indus- tries of shipbuilding and ship-repairing this year and the level of activity fell below that of previous years. Hong Kong, however, remains a centre for the construction of small craft, yachts of

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superior quality and workmanship, and specialized vessels such as fire-floats, ferries, tankers, tugs, lighters and vessels for the Govern- ments of many countries. Ship repairs and conversions have con- tinued to provide a steady source of employment and the reputa- tion of the Colony's ship-repair firms enables them to obtain a fair share of this type of work in competition with similar ports in the Far East. Among the work carried out during the year was the reconstruction and air-conditioning of a large passenger vessel, the dry docking of the tanker Faith which was the largest ship ever to be docked in Hong Kong, and the re-fit of naval vessels and auxiliaries of several nations.

New construction, repair work, conversions and the thousand and one needs of vessels calling at the port during the year kept the Government marine surveyors and the surveyor representatives of Lloyds' Register of Shipping, Bureau Veritas and the American Bureau of Shipping fully employed. The ships surveys staff of the Marine Department was increasingly occupied during the year with tonnage computations and in checking standards of crew accom- modation for new tonnage and for ships whose owners were apply- ing for registration under the British flag. The Hong Kong Registry of Shipping lists over 480 vessels under the British flag, totalling some 700,000 gross register tons. Of these, more than 150 ships are of more than 500 tons gross. The figures show that there were fewer vessels registered in Hong Kong during the year, but the increase in tonnage indicates a trend toward larger vessels. The Colony still remains one of the chief centres for tramp-ship owning, in spite of the world-wide recession in shipping, and a good deal of chartering business finds its way to Hong Kong. Due to the shipping recession many shipowners have had to lay up ships and Hong Kong has proved a popular choice for this as anchorage dues are very reasonable. In July ships in ever-increasing numbers began to be laid up in the Colony and it was decided to allocate berths to them in outlying waters such as Tolo Harbour and north of Lantau Island.

The large number of small craft which operate in the harbour create a special problem in density of water-borne traffic. There are some 23,500 vessels in this category, of which over 5,200 are mechanized, and examinations are compulsory for local certificates

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     of competency as master or engineer of all mechanized fishing vessels, launches or any other powered craft. These examinations, the standard of which is being gradually raised, are an important factor in ensuring a continued high standard of handling and safety precautions in small vessels. As a result, there have been far fewer accidents than might be expected considering the number of craft moving in the harbour and surrounding waters. The two large typhoon shelters at Yau Ma Tei and Causeway Bay were used to good purpose during the year and during typhoon Wanda some 7,800 craft took refuge in them (for details of typhoon Wanda see The Year's Weather at the end of this chapter). Strict control of these craft was necessary to obtain full use of anchorage or mooring space while at the same time ensuring that the fairways were left clear.

      Locally moved cargoes are transported mainly by towed lighters or junks and a flourishing trade with Macau and adjacent Chinese ports exists. The principal imports from these ports consisted of building materials, vegetables and fruits, sea products and food- stuffs, while the chief exports were fertilizer and foodstuffs. Details of external trade cargo tonnage may be found in Appendix X. Internal trade in Colony waters takes place between the harbour area and outlying districts. Sand for building purposes is the chief commodity carried inwards, while outward bulk cargoes are mainly building materials, cotton bales, dangerous goods and foodstuffs.

      The shipbreaking industry in Hong Kong, while still a flourishing major industry, showed a decline during the year due to the falling market price of scrap metal. However 34 ships which had out- lived their usefulness were broken up during the year, totalling 180,187 gross tons.

CIVIL AVIATION

      The development of civil aviation in Hong Kong has kept pace with that elsewhere in the world and, by reducing the travelling time from Europe and the Americas to a matter of hours has made a significant contribution to the Colony's life and economy.

      The first flight by an aircraft in Hong Kong took place in 1911, but it was not until some 20 years later that aviation began to show the first real signs of the growth that was to follow. The small grass airfield on the north shore of Kowloon Bay, which

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      had been the scene of many earlier historic flights, was consider- ably extended by reclamation during the early 1930's, and in 1936 a weekly mail and passenger service between Hong Kong and Penang, connecting with the London-Singapore-Australia service, was inaugurated by Imperial Airways. Later that year services to Canton and Shanghai were introduced and in 1937 Pan American Airways opened up the trans-Pacific route to Manila and San Francisco. By the time the Pacific war broke out in 1941 five companies were operating regular scheduled flights to and from the Colony.

       After the war, civil air transport re-started at an increased tempo and it soon became apparent that the advent of bigger aircraft had made existing facilities quite inadequate. The mountainous nature of Hong Kong's terrain made a site for a new airport difficult to find and the decision was made to modernize and develop the existing site by very extensive reclamation. Work on this project started in 1956 and in a truly remarkable feat of engineering a promontory 7,800 feet long and 800 feet wide was reclaimed from the waters of Kowloon Bay. A gap in the surround- ing hills at Lei Yue Mun Pass makes possible direct approaches to the seaward end of the runway, while the extensive removal of hills has provided a safe, gently curving approach from the landward end.

       The new runway, 8,340 feet long and stressed. to take aircraft weighing up to 400,000 pounds, was opened in 1958. It is suitable for use by the most modern types of aircraft now flying or cur- rently envisaged. The latest navigational and approach aids have been installed and an instrument landing system, surveillance radar, and precision approach radar contribute greatly to the safety and regularity of air services to the Colony. Modern airport and approach lighting have made safe night operations possible in spite of the surrounding hills.

       A new terminal building, one of the most advanced in the Far East, came into use in November 1962. Operating on a 'two level' system, with arriving passengers being processed on the ground floor and departing passengers mainly on the first floor, the build- ing has been planned to eliminate those irritating delays to which air travellers are sometimes subjected. Modern shops, bars and a restaurant cater to the needs of passengers and visitors, and a

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spacious waving bay offers a clear view of arriving and departing aircraft. Immediately in front of the terminal is an extensive air- craft parking apron, with room for 11 large aircraft. It has a hydrant refuelling system controlled from a centralized fuel farm.

      Responsibility for the supervision of all aspects of civil aviation in the Colony and the co-ordination of plans for its development rests with the Director of Civil Aviation. Full operational services are provided, including air traffic control, telecommunications, air- sea rescue, airport fire service, aeronautical information service, aircraft registration and certification of airworthiness, personnel licensing and, in conjunction with the Royal Observatory, an aero- nautical meteorological service.

      Opportunities for private flying are somewhat restricted by the small size and geographical location of the Colony and by the obvious difficulties involved in carrying out initial training at a busy international airport. Light aircraft are, however, available at the Far East Flying Training School, which was established in 1934 and has done much to foster a spirit of air-mindedness in Hong Kong. The school also offers full-time courses of training in aeronautical engineering and electronics.

      The Hong Kong Aircraft Engineering Company Limited pro- vides maintenance, overhaul and repair facilities at the airport for a wide range of aircraft, including the latest jet airliners. A major development programme was recently completed and operations are now carried out from a new administrative and workshops building adjacent to two newly-constructed hangars which are capable of accommodating the largest aircraft likely to operate into Hong Kong within the next decade.

      Two locally based airlines operate aircraft registered in the Colony. Cathay Pacific Airways operate a wide network of routes extending to India, Japan, the Philippines and Indonesia, using Convair 880 and Lockheed Electra aircraft. Macau Air Transport Company Limited has flights by Piaggio P 136 amphibious air- craft to nearby Macau. Some 160 scheduled services arrive each week at Hong Kong airport, operated by 22 international airlines, in addition to numerous charter and other non-scheduled flights. Most scheduled services are now operated by the most modern types of jet aircraft including the Comet IV, Boeing 707, Douglas DC8 and Convair 880 and 990.

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       The volume of air traffic continued to increase steadily during the year and passenger, freight and mail figures showed increases of some 23.6 per cent, 27.1 per cent and 3.01 per cent, respectively, over the preceding year.

KOWLOON-CANTON RAILWAY

       The British section of the Kowloon-Canton Railway runs from the southern end of the Kowloon peninsula to the Chinese frontier at Sham Chun where it joins the Chinese railway system. The northern bank of the Sham Chun river forms part of the inter- national boundary. Since 1949 passengers travelling to and fro have had to change trains at the border between the Colony and China, and to walk the 300 yards between the two termini. Mail and goods traffic in wagon loads, however, travel through without transhipment.

There are 12 daily passenger trains each way on the British section at present, and also an average of about two goods trains. Passenger traffic is normally heavy at week-ends and on public holidays, especially in winter. Special trains are often run between Kowloon terminus and Sha Tin station which is a popular picnic resort. The running time, including stops, between the terminal station in Kowloon and the border station at Lo Wu is about an hour.

The greatest number of passengers carried in a single day during the year was 71,050. This was on 5th April (the Ching Ming Festival) when many passengers went to visit their ancestors' graves in Wo Hop Shek Cemetery at Fanling and Sandy Ridge at Lo Wu.

       The fares are very reasonable. Third class from Kowloon to Sha Tin, a distance of 7.14 miles, is only 50 cents; children under 12 pay half. Second class fare is 50 per cent more than the third, and first class is double. Quarterly and monthly tickets at cheap rates are available at all stations. For a quarterly ticket the fare is only the sum of 75 ordinary single fares; for a monthly ticket, 30 ordinary single fares. The holders may use their tickets on any train and as many times as they like on any day.

      Passengers carried within Hong Kong were 6,231,789 or 88.97 per cent of the total. Passengers to and from the frontier station of

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Lo Wu numbered 772,556 and the majority of these travelled between Hong Kong and China. In the British section there are eight diesel electric locomotives and one steam locomotive, one rail-bus, 65 passenger coaches and 210 wagons.

Typhoon Wanda caused extensive damage to the railway em- bankment and seawall between Sha Tin and Tai Po Market stations -a distance of some seven miles-and the track was closed for five days.

ROADS

The volume of traffic on the Colony's roads continued to in- crease, necessitating the construction of new roads and the im- provement and reconstruction of existing roads. Routine surfacing, improvement and reconstruction of existing roads cost $9 million, while a large number of major works were carried out at a cost of just over $17 million. Extensions to main roads serving in- dustrial and housing schemes continued, and work on feeder roads to link further agricultural areas in the New Territories also went ahead. The total length of all roads in the Colony maintained by Government reached 524 miles, an increase of eight miles over 1961. The total is made up of 192 miles of road on Hong Kong Island, 141 miles in Kowloon and 191 miles in the New Territories.

On Hong Kong Island many sub-standard secondary roads were reconstructed in concrete to meet anticipated traffic requirements. At the western end of Victoria city work started on a two-lane carriageway over a 1,400 yard stretch of Victoria Road. This is designed to remove the traffic hazards which exist on the present narrow and sinuous route. Work on a new road to join Wong Nei Chong Road with the Shouson Hill area also made good progress and it is anticipated that it will provide a useful link to the Aberdeen area.

In the New Territories improvements to Castle Peak Road between Kowloon and Tsuen Wan were continued. Two further sections were completed and work on widening the last section to a dual carriageway was started late in the year. Owing to the restricted nature of the site it is expected to take two years to complete this work, but when it is completed traffic conditions on this, the most important arterial road in the Colony, will be considerably improved.

A new airport terminal costing $16 million was opened at Kai Tak in November. The time exposure night picture (above) shows the terminal as seen across the rooftops of Kowloon, with the runway traced by the lights of a landing aircraft. Below, visitors to the terminal watch departing air- craft from part of the spacious waving gallery.

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The terminal is seven storeys high and works on a split-level principle. Passengers arriving in Hong Kong are dealt with mainly at ground level, while those leaving the Colony drive up a fly-over road to first floor level where the departure concourse (ft) is situated. The terminal can handle 550 passengers an hour and facilities

include shops, two buffets, a 220-seat restaurant with dance floor (right), a post office and a cable bureau.

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From the control tower on the roof of the terminal (above) contact is maintained with all aircraft arriving and departing. In a darkened room (below) is the radar, radar control and approach control equipment used to 'talk down' an aircraft through bad weather. It is this room which is the heart of air traffic control.

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      On the Mok Fu Ferry Road an old Bailey Bridge was replaced by a new reinforced concrete structure. During the course of this work a 200-year-old stone tablet commemorating a bridge con- structed on the site in 1748 was discovered and re-erected along- side the new bridge. Along the shores of Deep Bay between Pak Nai and Tsim Bei Tsui a feeder road 4 miles long was con- structed. This road, connected at Lau Fau Shan to the feeder road from Ping Shan, serves a large area previously inaccessible to motor transport. On the main road round the New Territories a number of minor improvements to bends were completed and two bridges were reconstructed to Ministry of Transport loading re- quirements. In Kowloon the reconstruction of Nathan Road was carried a step further with the completion of a section 2,500 feet long at the southern end. Despite the many difficulties encountered in co-ordinating the works of the various utility companies the work was completed well ahead of schedule. As on Hong Kong Island, many secondary roads which were failing under the steadily increasing volume of traffic were reconstructed. Work on improving the main road to Kwun Tong continued and at Kwun Tong itself a number of new roads were constructed. The inland road between Kwun Tong and the new industrial and shipbuilding area at Yau Tong was completed.

      The traffic engineering section of the roads office, in liaison with the police traffic branch, continued with its primary aim of providing for the safe and expeditious movement of pedestrian and vehicle traffic on the Colony's roads and streets. Many schemes for improvements were considered and implemented, with particular emphasis on road junctions. In the urban areas a com- prehensive programme of pedestrian crossings, guard-rails, im- proved carriageway markings and other safety devices was com- pleted. At unlighted bends on more than 20 miles of rural roads, self-wiping reflecting road studs were installed.

      The improvement and extension of public street lighting con- tinued with the installation of 955 new lamps (254 on the Island, 503 in Kowloon and 198 in the New Territories). A feature of the street lighting in the New Territories was the introduction of high efficiency 200 watt linear sodium lamps along a section of the main arterial route linking Kowloon with Tsuen Wan. To relieve congestion in the urban areas extensive one-way street

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systems were introduced. Following a comprehensive parking study it was found necessary to regulate kerbside parking by installing a further 1,700 parking meters, bringing the total installations to more than 2,000. Advance planning for a further 1,600 meters was in hand at the end of the year. The revenue from these meters will to some extent offset heavy expenditure on the construction of multi-storey car parks. The roads office operates two quarries producing high quality aggregate for concrete and road making materials, as well as bituminous mixes for road surfacing. A new machine for laying premix material was brought into full operation on Hong Kong Island and has speeded up work in addition to providing improved riding surfaces. The quarry section dealt with some 190 applications for dangerous goods (blasting) licences and gave advice in connexion with the removal of dangerous boulders.

MULTI-STOREY CAR PARKS

The Star Ferry and the City Hall multi-storey car parks, both situated in the central district of Victoria and under the manage- ment of the Urban Council, continued to meet an expanding demand. The parking floors were usually filled to capacity before 9 a.m. on weekdays. With the opening of the City Hall in March, the City Hall car park was opened for night as well as day parking. Both parks now operate on a 24-hour basis. There are 631 spaces available for parking and rates range from 50 cents for 24 hours parking to $5 for a 24-hour period. A monthly pass costs $40. An average of 28,641 cars used the two parks each month during 1962.

      Construction of a third multi-storey park at the former Murray Parade Ground neared completion. When brought into use in the summer of 1963 it will have parking space for over 750 cars. Plans were also well advanced for a multi-storey park able to accom- modate 800 cars in Middle Road, Kowloon.

POST OFFICE

Three new post offices were opened during 1962, bringing the number of offices in the Colony to 29. Of these 10 are on Hong Kong Island, nine in Kowloon and 10 in the New Territories and outlying islands. Almost all offices provide standard counter and

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      delivery services. Two offices opened in the early part of the year at Sha Tau Kok, and Tai O on Lantau Island, are of a uniform pattern designed for small rural communities, and are accom- modated in buildings shared with the Fire Service and Urban Services Departments. The office at Tai O serves a densely populated market town and fishing port. A new office was also opened at Kwun Tong, an industrial area which ultimately will have a population of 250,000.

Work started on the new Kowloon central post office, while new offices to replace existing buildings were opened at Yuen Long, Aberdeen and Hong Kong airport. A second mobile post office was also brought into service. No further mobile offices should be necessary, as the whole of the rural area is now included in the itinerary. As new permanent buildings are opened the mobile offices are being diverted to less densely populated areas. These mobile offices, together with the permanent post offices, have pro- vided a valuable link between people working overseas and their families in the rural areas. Postal orders valued at $29 million were encashed at New Territories post offices during the year. Many temporary post offices were set up for special events, in- cluding the arrival of world cruise liners, the Junior Chamber International World Conference and the Chinese Manufacturers' Exhibition.

       During typhoon Wanda in September the three buildings of the main Kowloon post office at Tsim Sha Tsui suffered considerable damage, but due to the commendable resource of staff members damage to mail was prevented. At Sha Tin the post office, which stands near the sea wall, was flooded to a depth of nine feet, but again due to the devotion to duty of the clerk in charge, mail and post office stock were preserved intact. The town's postal service was maintained from a mobile post office for two days and then part of the office was reoccupied until repairs to the damaged part could be completed. The railway line was out of action, which meant that mails to and from China had to be taken by road from Kowloon to a station near the border.

Two new postal systems were introduced-parcel delivery and night duties. Until this year parcels were delivered over the counter only, but in July a door-to-door parcel delivery service was started. It was part of a scheme in which the foot postmen serving the

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     south of Hong Kong Island were replaced by vans, and it produced useful experience for the introduction in October of parcel delivery. to private households throughout the Island. Insured parcels are not included in the scheme at this stage. Vans are on order for Kowloon and as soon as they become available parcel delivery will operate there also. Night duties at the two main sorting offices were introduced experimentally for two months in April. The ex- periment was successful and as soon as the additional staff is available the system will be introduced on a permanent basis.

Normal post office counter business such as the sale of stamps, handling of foreign parcels, registration of mail, sale of money orders, postal orders and wireless licences is done at most of the offices in the Colony. There are also a number of special postal services used mainly by business houses, such as business reply, cash on delivery, private boxes, private bags and prepaid postage services, including postage franking machines. Mail delivery is carried out twice a day (excluding Sundays) in all but the more remote rural areas. In the more isolated parts, including most of the islands, mail is distributed by an authorized agent who is paid. a monthly fee by the department.

Direct communication is maintained with as many foreign post offices as possible so that when there is sufficient correspondence direct overseas despatches can be made, thus excluding inter- mediate offices and speeding up the transmission of letters or parcels. The thousands of mail bags handled daily by the Post Office are conveyed to and from ships and across the harbour in launches provided and staffed by the Marine Department. Six Government craft are engaged on postal business. The train service between Kowloon and Lo Wu remains the main link for mails to and from the People's Republic of China. The number of bags carried is given in Appendix X. This was the second full year in which the public sent postal packets by the million to China. There was a slight reduction compared with 1961, but in districts such as Mong Kok and Sham Shui Po postings remained high. At each of the offices serving these areas there was a daily average of 3,500 packets, many containing food.

For stamp collectors this was an important year with two new issues and an exhibition. The first issue was to commemorate the centenary of the first Hong Kong postage stamp and included

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three stamps (10 cents, 20 cents and 50 cents). In October the new definitive multi-colour issue (five cents to $20) was placed on sale; this featured the Annigoni portrait of HM the Queen and was well received. The $20 stamp was singled out for inclusion in the souvenir sheet of Britain's National Stamp Exhibition to be held in March 1963. The exhibition at the City Hall in December was a further part of the centenary commemoration and was the first stamp exhibition ever held on this scale in Hong Kong. Stamps worth $500,000 were on display and the exhibition, opened by the Officer Administering the Government, was honoured by the loan of exhibits from the collection of HM the Queen.

TELECOMMUNICATIONS

      Owing to the increasingly important part played by the wireless division in the supervision of telecommunication activities in the Colony, the division was re-organized as the telecommunications division at the beginning of the 1962-3 financial year. Technical assistance and advice on the telecommunication requirements of other Government departments covered a wide field from tele- phones and sound reproduction to VHF radio and radar. Figures for all licences issued under the Telecommunications Ordinance continued to rise (see Appendix X). During 1962 there was also a general increase in the traffic handled by all the three principal telecommunication services of Cable and Wireless Limited-tele- graph, radiotelephone and telex.

      Telegraph. Twenty-seven direct international telegraph circuits were operated with various countries. More than three million telegrams were despatched, received and relayed.

      Radiotelephone. New services were established to Iceland, Faroe Islands, British Guiana, the Leeward and Windward Islands, and to three more principal cities in South Korea. A new reply service was also instituted between Jesselton and Norway via Hong Kong. Schedules were extended to meet increased demands in the Hong Kong/Saigon, Hong Kong/Australia and Hong Kong/India serv- ices. The local telephone exchange can now be connected through Cable and Wireless to 84 countries.

      Telex. This comparatively young service, still only in its fourth year, has expanded very rapidly and by the end of the year Hong Kong was linked to 53 countries. Any telex subscriber in Hong

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Kong can be connected to any of the nearly 100,000 subscribers in other parts of the world for direct and instantaneous exchange of typed messages.

Other Services. Cable and Wireless Limited also maintain various other telecommunication services such as radiotelegraph and radiotelephone services with ships at sea, phototelegraph service with certain countries, VHF harbourphone service with ships in Hong Kong harbour, meteorological and news broadcasts, and other ancillary services, such as deskfax, teleprinter and phonogram, and the internal telegraph service. They lease wireless circuits to airlines and other organizations for private use. They are responsible for the technical maintenance of the Government broadcasting, aeradio and meteorological radio services and the VHF communications of various Government departments. A $4,800,000 programme to improve Cable and Wireless telegraph and telephone contact with the rest of the world was begun in 1962. A new transmitting station under construction at Cape D'Aguilar will house 22 high frequency transmitters, while the Mount Butler receiving station is being enlarged for the installation of new receivers. Harbourphone facilities for ships in port have. been greatly improved. The total number of subscribers' units available for hire has been increased by 200 per cent and two additional exchanges have been set up.

Telephones. Telephone service in the Colony is provided by the Hong Kong Telephone Company, Limited, a public company operating under a franchise from Government. In addition to the internal service the company, in conjunction with Cable and Wireless, provides services to most countries and to ships in the harbour and at sea. The Telephone Company's system, which is fully automatic, comprises some 140,000 stations served from eight. major exchanges and a number of satellite exchanges. Rentals are charged on a flat rate basis of $300 and $225 a year for business and residential lines respectively. No charge is made for individual calls except to and from the New Territories.

       The cost of the service to subscribers is probably the lowest in the world and the demand for telephones continued. In order to meet it the Telephone Company have ordered, or are installing, some 92,000 lines of exchange equipment, together with large- scale duct and cabling schemes. Three new buildings to house

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     major exchange units were in various stages of construction at the end of the year.

ROYAL OBSERVATORY

      The Royal Observatory was established in 1883 to make meteorological and magnetic observations and to provide a time service for the Colony and for shipping.

      Meteorological services. The observatory is the sole source of meteorological information in the Colony and also forms part of a world-wide network of meteorological stations. The central fore- cast office provides weather forecasts and information for the public, Government departments, shipping, aviation and the armed forces. Routine surface observations of the meteorological elements are made throughout the 24 hours at the observatory, the airport, Waglan Island and at Cheung Chau. The last three stations are primarily concerned with the needs of aviation. During the year a new windfinding radar was installed at King's Park where upper air soundings of wind, pressure, temperature and humidity are carried out. Numerous raingauges are operated throughout the Colony by Government employees and private individuals on behalf of the observatory. Rainfall maps and observations from the observatory and King's Park are published, while results from other stations are recorded on punched cards to facilitate rapid analysis.

At the aviation forecast office, which moved into the new terminal building at Kai Tak in August, pilots of all aircraft leaving Hong Kong are briefed and issued with documents depict- ing meteorological conditions relevant to their flights. Information is also sent to other weather centres and to aircraft in flight either by direct radio communication or by special aviation broadcasts.

      Weather bulletins for shipping and local fishermen are broad- cast over Radio Hong Kong; there are also other broadcasts over special channels for shipping. Liaison officers visit merchant and Royal Navy ships in port to check their barometers and other meteorological instruments, to supply daily weather charts and to assist in other ways. The Hong Kong fleet of weather observing ships totals between 60 and 70 vessels, which is comparable in size with the fleets of large countries. Reports from these ships are particularly valuable to the observatory and are rebroadcast

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to other centres and also punched onto cards for climatological

purposes.

One of the most important functions of the central forecast office is to issue warnings of tropical cyclones. Whenever a tropical depression, tropical storm or typhoon is located within the region bounded by the latitudes 10° and 30° north and the longitudes 105° and 125° east, six-hourly or three-hourly bulletins are issued. These include information on the storm's intensity and expected development, the position and movement of its centre and the forecast position for 24 hours ahead. Reliable reports from ships and storm reconnaissance aircraft help to locate storms accurately. When the Colony itself is threatened, the local storm warning system is brought into use and warnings are widely distributed by means of visual signals, telephone, radio and Rediffusion. While gale signals are hoisted statements are issued and broadcast at 30-minute intervals.

      Time Service and Seismology. Time signals originating at the observatory are sent out over Radio Hong Kong for the public, and in special broadcasts for aviation and shipping. A visual time signal is flashed from the observatory's signal mast and various signals are provided for time marking seismograms and other pur- poses. The observatory operates six seismometers, three of which are on loan from the Lamont Geological Observatory. A weekly report giving arrival times of significant earthquake waves is sent to the United States Coast and Geodetic Survey and detailed analyses are later published and sent to other scientific institutions. The results are included in the International Seismological Sum- mary and in the bulletin of the International Union of Geology and Geophysics.

      The observatory also participates in the Pacific Tidal Warning Service by sending telegrams to Honolulu Magnetic Observatory whenever severe earthquakes are recorded in Hong Kong. An exceptional number of at least 10 minor earth tremors were felt by residents of Hong Kong during the year. The most severe occurred on 19th March, but no serious damage was reported. All the tremors originated from earthquakes centred in an area about 80 100 miles north-north-east of Hong Kong.

·

Radioactivity. The Royal Observatory monitors the general level of radioactivity in the Colony by making routine measurements of

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the beta-activity of fallout, airborne particles near the ground, rain- fall and ordinary tap water.

Other Activities. Astronomical tables for use in the Colony are issued each year in the form of a booklet. Details of research undertaken at the observatory are given in chapter 18.

THE YEAR'S WEATHER

      Hong Kong had the hottest summer recorded since observations were begun at the Royal Observatory in 1884 and there was a record of 2,395.4 hours of sunshine. At the same time, in spite of some very heavy rainfall during June, total rainfall for the year was well below normal.

      During January the weather was rather cool and dry but ex- ceptionally fine. The amount of sunshine recorded broke all pre- vious records for January and there was very little rain. February was warmer and sunnier than normal. There was a short spell between the 9th and 11th February when fog caused disruption of aircraft and shipping schedules, and there were strong winds on 13th February when the black ball was hoisted for 15 hours. Rainfall during March was negligible. There were a few patches of fog between the 19th and 21st, but it was the sunniest March since 1929. The first half of April was unsettled, wet and foggy, but during the second half of the month and most of May the weather became warmer and the maximum temperature on 9th May was the highest ever recorded in May. Rainfall during March, April and May was seriously below normal in spite of a torrential downpour which caused local flooding on 26th May.

June brought a marked change in the weather and nearly 20 inches of rain were recorded, mostly between the 6th and the 19th of the month. Temperatures were about normal and no tropical storms affected the Colony. There was a remarkably hot spell during July and August, and both months broke all previous records for highest mean temperatures. July broke all previous records for sunshine, which averaged more than nine hours a day. Although there were a few thunderstorms on the 21st and 22nd July, rainfall for the month was less than half the normal value. The number one local storm signal was hoisted twice during July -first at 10.45 p.m. on 10th July when a tropical depression was crossing the China Sea, and later at 10.45 a.m. on 20th July when

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tropical storm Kate was approaching from the east-south-east. Kate intensified into a typhoon, slowed down and remained almost stationary about 310 miles east-south-east of the Colony until the 22nd, when it began to move away toward Taiwan.

August was even hotter than July and numerous records were broken. The mean daily maximum temperature of 90.9°F, the mean temperature of 84.6°F and the mean daily minimum tem- perature of 80.2°F were all the highest ever recorded at the Royal Observatory, while the absolute maximum temperature of 95.9°F on 31st August was the highest recorded since 1900. The mean relative humidity of 78 per cent was the lowest ever recorded, and rainfall was less than a quarter of the normal amount. Although several typhoons formed in the Pacific there was no need to hoist local signals during August until the very end of the month when typhoon Wanda began to move toward the Colony. After the passage of typhoon Wanda (described in detail below) September was sunny and warm. On 26th September there were strong winds associated with the winter monsoon and the black ball was hoisted for 42 hours.

At the beginning of October typhoon Dinah developed in the Pacific about 980 miles east of Hong Kong and started moving westwards. Local storm signal number one was hoisted at 8 a.m. on 3rd October when the storm was centred about 300 miles east of Hong Kong and the number three signal 24 hours later. Winds became fresh in the harbour and strong at Cheung Chau during the afternoon. Typhoon Dinah crossed the South China coast about 90 miles east of Hong Kong and weakened rapidly. How- ever the rain associated with Dinah persisted until 7th October. The weather during November was somewhat cloudier than normal and there were the usual wide fluctuations in temperature. December was rather mild with plenty of sunshine and only a trace of rain.

TYPHOON WANDA

Typhoon Wanda first formed on 27th August as a tropical depression about 1,300 miles east-south-east of Hong Kong. Moving west-north-west at 12 knots it gradually intensified and reached typhoon strength on 29th August. The circulation covered an area about 1,000 miles across and the track showed practically no deviation as the storm moved directly toward Hong Kong. The

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number one local storm signal was hoisted at 7.45 p.m. on 30th August. The following day was extremely hot with only moderate northerly winds; the number three local storm signal was hoisted at 4.10 p.m. and the first rain occurred with freshening north- north-west winds during the early evening. The winds dropped slightly after the rain, but the number seven signal was hoisted at 10.50 p.m. Gales were first reported at Waglan Island at 2 a.m. on 1st September when Wanda was 105 miles away.

       At 4.15 a.m. the number nine local storm signal was hoisted to indicate that the gales were expected to increase. By this time winds over the harbour were averaging 30 knots from the north- north-west. The number 10 local storm signal was hoisted at 6.15 a.m. when Wanda was centred about 50 miles away and still moving directly toward the Colony. The closest approach was expected to coincide with high tide and a warning was issued at 6.30 a.m. stating that the water would rise six feet above normal high tide in the harbour and much higher in Tolo Harbour, with flooding over low lying land.

       The centre of typhoon Wanda passed about 10 miles south of the Royal Observatory at about 9.50 a.m., still moving west-north- west at about 11 knots. Tides in Tolo Harbour rose about nine feet six inches above the normal high tide-nearly 17 feet above chart datum-and at Tai Po Kau crests of wind-driven waves reached about 23 feet above chart datum. Altogether nearly 12 inches of rainfall were recorded at the Royal Observatory. The mean wind at the Royal Observatory reached typhoon force at about 9.20 a.m. and rose to a maximum of about 78 knots at about 9.30 a.m. It decreased slightly as the eye passed, and then increased again to about 74 knots at about 10 a.m. After making corrections for the reduced density of the air and the calibration of the anemometer, the maximum gust at the Royal Observatory was 145 knots (167 mph) and at Tate's Cairn 164 knots (189 mph). The minimum pressure of 953.2 mbs (28.15 inches) was the lowest ever recorded in Hong Kong. Appendix X gives further figures for typhoon Wanda and other storms.

Typhoon Wanda was the worst typhoon since 1937 and one of the worst ever to strike the Colony. It wreaked havoc through- out the urban and rural areas, leaving 138 dead, 34 missing pre- sumed dead, over 130 injured and many thousands homeless.

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      By 9 a.m. on 1st September city streets were deserted. Each fresh gust brought advertising signs, roofing iron and scaffolding on new buildings crashing down. Suburban roads were blocked by fallen trees and many homes in exposed positions badly dam- aged. The fire and ambulance services received well over 500 calls for assistance from the public and at one time calls were being received at the rate of 10 a minute. Two ambulances were blown off the road, injuring the crews, and three fire stations were flooded putting 11 appliances temporarily out of commission. At North Point a cyanide store on the waterfront was broached by an 8,000- ton ship out of control, releasing lethal gas. Teams of firemen wearing breathing apparatus worked for five hours to render dam- aged containers harmless and to remove those undamaged.

      In the New Territories damage to communications, property, public works, boats, homes and crops was considerable and wide- spread. At Sha Tin a tidal surge breached the seawall in two places, flooded the town and swept away many huts. A number of small boats were swept into the streets, causing severe damage. Most of the deaths which occurred in the New Territories were at this one town. Tai Po and Sha Tau Kok were also affected by the tidal surge, which swept over seawalls and causeways, but fortunately casualties were few as most people had already reached shelter on high ground. Losses to the fishing fleet were severe and a total of 484 fishing vessels were reported sunk or damaged beyond economic repair. A further 509 vessels were damaged.

Extensive damage was also caused to vegetable crops, though heavy rain minimized salt water damage to rice paddy. Where seawalls had been breached many fields remained subject to sea water flooding until the breaches were repaired. At Pak Ngai in Deep Bay parts of the oyster beds were damaged and a large number of oysters washed ashore. It will be some time before it is possible to estimate losses accurately.

Relief measures organized and co-ordinated by officers of the New Territories Administration were undertaken immediately. Rescue work was carried out by the police, auxiliaries, members of the Fire Services and the Civil Aid Services and volunteers. The army also gave considerable assistance, especially at Sha Tin and Tai Po where they helped to repair breaches in the seawall

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     and clear debris. The United States Navy also sent a small contingent.

      Some 72,000 people registered themselves with the Social Welfare Department as being homeless, but it must be assumed that in many cases their homes were capable of repair. The establish- ment in June of a Community Relief Trust Fund provided the machinery through which an appeal for funds was launched, the original idea being that the fund should provide money for the relief of victims of all disasters. Almost $5 million was raised and, in accordance with the wishes of the public, all of it was used to assist victims of typhoon Wanda. A number of Govern- ment departments distributed grants to those with destroyed or severely damaged squatter boats, squatter huts, stock houses, farm buildings, fishing boats and working boats. In addition money was made available for burial grants, maintenance grants for children whose parents had died, injury grants, loss of earning grants and ex gratia payments to families which had suffered death or injury. Money was also given for the repair of privately built bunds and to help farmers over the loss of crops and livestock. More than 64,000 meals were distributed daily.

      A total of 725 huts in urban squatter areas were completely destroyed, making 5,130 people homeless, while 3,038 huts were partly damaged, affecting 24,865 people. In Tsuen Wan district 136 huts were totally destroyed, making 1,055 people homeless, while 607 huts occupied by 3,264 people were damaged. Serious damage was also done to houseboats moored in various typhoon shelters and 2,231 people lost their homes.

      In the harbour many ships dragged their anchors or parted their mooring cables and eight vessels stranded. Of 14 laid-up ships berthed for safety north of Lantau Island, eight went aground after dragging their anchors; in Tolo Harbour seven out of eight ships went aground. Several collisions occurred between ships at the height of the storm and, had these vessels been berthed in the main harbour or surrounding anchorages, considerable damage would have been caused not only to ships in commission but possibly also to shore property. The Hong Kong and Whampoa Docks tug Dorothy came into collision with an ocean-going vessel during the storm and sank with all hands. The same company suffered a further tragic loss when the tug Kowloondocks foundered

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south of Swatow while towing a ship from Shanghai to Hong Kong. There was only one survivor. Considering the severity of the storm, and the fact that there were 80 ocean-going vessels in port in addition to laid-up vessels, vessels under demolition and British and American warships, damage to shipping was not as heavy as might have been expected. It is a matter of great sorrow, however, that from among Hong Kong seamen, dockyard workers and boat-people a total of 48 lives were lost at sea or in the harbour.

16

Publications, Broadcasting and Films

PRESS

     HONG KONG has a large and active press and by the end of 1962 a total of 196 periodicals and publications of all kinds were listed by the Registrar of Newspapers. Of these 42 appear daily and 20 once or twice a week. The remainder are mainly magazines in Chinese, catering for readers with special interests. There are three daily and four weekly English-language newspapers and these are listed, together with some of the other leading Chinese and English publications, at Appendix XI.

      Unofficial estimates put the total circulation of Chinese-language morning and afternoon papers at over 600,000 though there are no audited figures of circulations or certified net sales. Many papers undoubtedly have small circulations, but their influence should not be under-estimated on this account. They have a steady following among different sections of the community and become an invaluable forum for public opinion when occasion arises.

      The Newspaper Society of Hong Kong has 18 members and their journals may be regarded as the Colony's principal news- papers. Recognized leaders among the Chinese morning papers are the Wah Kiu Yat Po (Overseas Chinese Daily News), Sing Tao Jih Pao (Island Star) and Kung Sheung Yat Po (Industrial and Commercial Daily), all of which maintain a good balance between foreign and local news and are, generally speaking, non-partisan in politics. All three publish afternoon editions, while another popular non-political daily, the Sing Pao, has no afternoon edition.

Orthodox Chinese communist policies are voiced in the Ta Kung Pao, Wen Wei Pao and New Evening Post, while the Hong Kong Times speaks for the Nationalist régime in Taiwan. Other Chinese newspapers which are members of the Newspaper Society are the New Life Evening Post and Hung Look Daily News, and the bilingual Daily Commodity Quotations.

Only two morning newspapers are published in the English- language the South China Morning Post and the Hong Kong

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Tiger Standard (the latter is owned by Sing Poh Amalgamated Ltd, publishers of Sing Tao Jih Pao and Sing Tao Man Pao). The South China Morning Post, Ltd, also publishes the afternoon newspaper China Mail (the oldest daily newspaper in the Colony) and the weekly Sunday Post-Herald.

As with daily newspapers, Chinese publications are predominant in the magazine field. Despite educational developments and a steady increase in the number of Chinese who are completely literate in both English and Chinese, it seems that the majority of the people of Hong Kong prefer to read in their own language. A non-partisan weekly journal in English, the Asia Magazine, with editorial and administrative headquarters in Hong Kong, carries illustrated reports on cultural, economic and political pro- gress in Asia. It is distributed free as a Sunday supplement in 10 leading Asian newspapers, including the Hong Kong Tiger Standard, to over 430,000 families in 12 different countries. A fortnightly edition is on sale in India, Pakistan and Ceylon. Of other major magazines in the English language, only the weekly Far Eastern Economic Review and the bi-monthly Hong Kong and Far East Builder-both of which are specialist in their appeal and command circulations outside the Colony-have survived for any number of years.

Four international news agencies maintain full-scale bureaux in Hong Kong, and it is indicative of the attention which the local press pays to world news that the majority of leading newspapers subscribe to at least three, if not all four, of the services provided. The agencies are Agence France Presse, Associated Press of America, Reuter (in association with the Australian Associated Press) and United Press International. Hong Kong also houses the head office of the independent Pan-Asia Newspaper Alliance, and sub-offices of the New China News Agency (official agency of the Chinese People's Government), the Central News Agency of the Taiwan administration, the Antara News Agency of Indonesia, and the Japanese agencies, Jiji Press and Kyodo News Service.

PUBLISHING

Hong Kong has a large and flourishing printing industry capable not only of supplying local needs but also, to a considerable extent, those of south-east Asia.

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      All books printed in Hong Kong are required by law to be registered with the Secretariat for Chinese Affairs. One thousand and ten books were registered during the year. The vast majority of these books were in the Chinese language, the most notable exceptions being the English publications of the University of Hong Kong Press and a number of business guides, directories and textbooks. Of the Chinese books registered, one-third was general literature such as fiction and poetry; another third was textbooks for use in Hong Kong and south-east Asia; and the remainder dealt with scientific, religious, social and political subjects.

GOVERNMENT INFORMATION SERVICES

      Now, possibly more than ever before, it is essential that people both in Hong Kong and overseas be kept fully and accurately informed of Government's activities, and in order to disseminate this information the Information Services Department engages in a many-sided programme. The department's activities range from the preparation of radio news bulletins, news items for the domestic press and illustrated feature articles for overseas publication, to mass publicity campaigns about such subjects as public health and fire prevention. To meet these commitments the department is divided into two main working divisions-press and publicity. The press division is responsible for minute-to-minute dissemina- tion of news to newspapers and broadcasting organizations both in Hong Kong and overseas 24 hours a day. The publicity division handles the production of films, newsreels, magazine and news- paper features, photographs, books, leaflets, posters and cinema slides, and is responsible for the administration and placing of all Government advertising.

In addition to this day-to-day work, constant demands are made upon the advice and services of the department's senior personnel by visiting journalists, radio commentators and television person- alities who come to Hong Kong. During 1962, 144 such visitors called on the department. Among these were representatives of the BBC and ITV in Britain and CBS in the United States, who filmed special half-hour reports on Hong Kong. Besides being given briefings and escorted trips to different parts of the Colony, visiting pressmen were provided with factual written material, pictures, maps and illustrations. Cuttings subsequently received

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showed that the majority of those given such assistance had been favourably impressed by the way Hong Kong is tackling her problems and had reported on the Colony's achievements to readers and audiences totalling many millions.

      The department's activities reached a peak in April and May when, without warning, large numbers of Chinese began to cross the land frontier into Hong Kong. The local press was quick to give full coverage to this influx of illegal immigrants and, as it continued, newspapers the world over began giving it headlines on their front pages. Scores of questions were received daily in the department from local and overseas press representatives, all of them demanding detailed answers with the minimum delay (for details of the influx of illegal immigrants in April and May please see Immigration, chapter 13).

      Even in what may be classed as 'normal' times the pressure of work in the department is maintained at an unusually high level, since newspapers and other news media must by their very nature compete not only against each other but also against the clock. The press division, headed by a chief press officer who arrived in the Colony in January having formerly been assistant editor of a British national daily newspaper, has English and Chinese- speaking officers on duty call at any hour of the day or night-a service primarily designed to assist newspapermen who require information when the majority of other Government departments have closed.

      During the year the radio newsroom, a sub-section of the press division, again increased the number of its daily bulletins. In the English language there are now full 10-minute bulletins daily at 8 a.m., 1.15 p.m. and 7 p.m., with a shorter bulletin at 7.15 a.m. and headline summaries at 6 p.m., 7 p.m., 9 p.m. and midnight. Full 10-minute bulletins in Chinese are broadcast at 8 a.m., 12 noon, 1.15 p.m., 6 p.m. and 7.30 p.m., with a headline summary at midnight. Most bulletins are broadcast simultaneously by the Colony's three radio stations, though some are scheduled for in- dependent relay to fit in with other programmes. There is no doubt that the bulletins play a vital part in keeping many thousands of Hong Kong people informed, quickly and concisely, of events in the Colony and overseas.

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A teleprinter network, installed in 1960 to enable news to be transmitted immediately and simultaneously to major press and broadcasting outlets, continues to expand and now serves 18 subscribers. Its value has been demonstrated over and over again. On the night of the tragic Un Chau Street fire, messages containing the latest information on the situation and the number of casualties were transmitted continuously. The network also proved its value, in happier circumstances, at the drawings of the Government lotteries. A large number of pressmen attended the first drawing, but practically none came to the second. They had discovered that the winning numbers, flashed to the Government Information Services by teleprinter from the City Hall and immediately relayed to the newspapers, reached their offices more quickly and more accurately than they could telephone. During disastrous typhoon Wanda in September, the network transmitted weather and damage reports non-stop round-the-clock, presenting a much more concise and comprehensive picture of the situation than could have been given by any other means.

A service designed especially for the Chinese press was intro- duced during the year. This consists of feature articles about Government activities written in Chinese by Chinese assistant information officers; previously features were written in English and translated. The new service, which has covered such diverse subjects as the Lion Rock Tunnel, the Tenancy Tribunal and the police, has proved very popular, many Chinese newspapers giving a full-page spread to the articles.

The publicity division has both local and overseas commitments. In Hong Kong it is responsible for handling publicity campaigns for all Government departments and for the production of films, books, booklets, posters, leaflets and other visual aids designed to promote better understanding between the public and Government. For overseas distribution the division concentrates largely upon the production of newsreels, magazine and newspaper feature articles and photo-features.

The short film has proved an invaluable medium for reaching large sections of Hong Kong's population and an excellent vehicle for projecting Hong Kong overseas. Six one-minute colour 'filmlets' made by the department's film unit were joint winners of the Royal Society of Arts Commonwealth Film Award for 1962. The

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filmlets, entitled A Moment's Carelessness Can Cause Disaster, were made to show the dangers of fire caused through carelessness and were shown in Colony cinemas during the winter months of 1961-2. The award, which consists of a silver medal and a diploma, is made biennially for documentary films 'of a character calculated to promote progress in a declared social, economic or cultural field.' Hong Kong's entry was one of 19 films from 11 Common- wealth countries, the joint winner being from Jamaica.

The film unit again concentrated in 1962 on the production of newsreel shorts, most of which were accepted by six or more major distributors serving cinemas and television networks in all parts of the world. This wide acceptance of newsreel films by com- mercial agencies, coupled with full use in officially sponsored reels, meant that millions of people had the opportunity of regularly viewing film stories depicting aspects of life in Hong Kong and the Colony's problems and achievements. Among subjects dealt with were drought, the Chinese New Year, new homes for boat squatters, a special report on the influx of illegal immigrants in May, and the opening of the new airport terminal in November.

       In addition to newsreels a number of more ambitious 20-minute productions in full colour were also completed for world release. The first of these, Hong Kong Sea Festivals, showed the Colony's fisherfolk at work and at three of their festivals-Tin Hau, the Dragon Boat Races and the Cheung Chau Bun Festival. At the end of the year the film was accepted by MGM for general release in Britain. For purely local release the unit made two one-minute anti-polio films.

The other 'arm' of the overseas publicity campaign consists of distributing illustrated feature articles to magazines and newspapers in all major countries. The articles vary in length from 500 to 3,000 words and are usually accompanied by at least a dozen black and white photographs. Colour transparencies are also in- cluded whenever possible. The articles explain Hong Kong's problems and achievements in terms of everyday life in the Colony, touching upon facets not normally encountered in other forms of Government publicity, and are distributed by British government agencies and commercial agents. Because the articles must com- pete for space in the highly competitive magazine and newspaper feature fields, the emphasis at all times is on quality rather than

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quantity. The high circulations often involved-plus the fact that magazines, at least, have a reasonably long life-means, however, that such publicity is of great value. Through syndication, many articles appear numerous times in a single country, the 'record' being held by a story on Hong Kong's flying doctor service which was published 45 times in newspapers in West Germany alone. In addition to full-length features, picture sets are also distributed overseas on a regular basis. Each set deals with a different subject and normally contains between one and two dozen glossy prints. The pictures have comprehensive captions of between 100 and 200 words, enabling them to be used either singly or as a 'spread'. The sets are proving of value to overseas publications both for immediate use and for picture libraries for use with future stories about Hong Kong. Among the many hundreds of publications in all parts of the world which used feature or picture material supplied by the department during the year were The Times, the Financial Times, The Guardian, Time magazine, the Washington Post, Christian Science Monitor, Miami Herald, Sydney Morning Herald, Auckland Star, leading daily newspapers in all parts of Europe, Australian Pix, The Lady, Vogue, Nursing Times, Nursing Mirror and The Illustrated London News.

      In the sphere of books, booklets, pamphlets and publicity folders, the year was one of unprecedented expansion. In March a copiously illustrated hirers' handbook on high quality art paper was produced to commemorate the opening of the City Hall. A series of radio talks by Heads of departments was collected into a book entitled The Government and the People, and issued in two printings each of 5,000 copies in English and Chinese. A pamphlet explaining the advantages of VHF broadcasting was produced in two editions, 100,000 being printed in Chinese and 10,000 in English. A four-colour recruiting pamphlet was produced for the Hong Kong Regiment, resulting in 100 recruits being signed up within a few weeks. The story of Hong Kong's resettlement pro- gramme was told in a four-colour booklet intended for local and world-wide distribution, called Building Homes for Hong Kong's Millions. A pocket-size Businessman's Guide containing hundreds of facts likely to be of use to customers visiting the Colony was produced in collaboration with the Commerce and Industry Department. A first edition of 50,000 was printed. At very short

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     notice a four-colour folder with a print order of 75,000 was pro- duced for the Nigerian International Trade Fair, graphically and attractively showing many of the products Hong Kong has for export. A road safety booklet for primary school teachers proved very successful and was reprinted in English and Chinese, the editions having print orders of 5,000 and 25,000 respectively. Possibly the most ambitious project of all was carried out toward the end of the year and consisted of a full-colour, fully illustrated booklet on civil aviation in Hong Kong. Published to mark the opening of the new terminal building at Kai Tak Airport, the booklet dealt extensively with all facets of aviation in the Colony since the first balloon flight in 1891. As an extension of Hong Kong's publicity drive overseas the publications section co-operated in arranging a social welfare exhibition at Rio de Janeiro, Brazil, and also worked closely with the Central Office of Information, London, in the production of a full-colour wallsheet, of which 80,000 copies were printed for world-wide distribution.

      For purely local publicity purposes many new posters were designed and distributed throughout the Colony. The main cam- paigns of the year dealt with queueing and the dangers of spitting and narcotics. In the latter a new feature was a series of small personal advertisements in the Chinese press offering rewards for information, which brought very good results. Other subjects covered by posters included the menace of flies, diphtheria, cholera and polio. There were also special campaigns urging people to be vaccinated and to keep their beaches clean.

      The photographic section, one of the technical services shared by all units within the department, produced far more prints than in any previous year. Working under consistently high pressure, the section took hundreds of new pictures for use in all forms of publicity material and supplied more than 24,800 prints for all pur- poses. In addition the section produced 5,492 colour transparencies.

The information officer at the Hong Kong Government Office in London continued to work in close liaison with the department, distributing the full range of publicity media produced in the Colony. Distribution to the United Kingdom press of feature articles, photographs and press releases again met with notable

success.

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      Although in its everyday work the department is primarily con- cerned with publicizing the affairs of Hong Kong, everything possible is done to promote knowledge of the United Kingdom and Commonwealth, and maximum use is made of material supplied by the Central Office of Information, London, for this purpose. The department's film library for example, which is largely stocked by the Central Office of Information, issued 3,090 films during the year for exhibition by clubs, schools and other institutions, and a weekly news magazine was supplied to Rediffusion's Hong Kong television circuit.

PUBLIC ENQUIRY SERVICE

      The Public Enquiry Service, established on an experimental basis under the general guidance of the Secretary for Chinese Affairs in 1960, became an independent department in January. Its primary function is to assist members of the public in their dealings with Government and each month now it deals with more than 12,000 people at two enquiry centres in Hong Kong and Kowloon. In its work and organization the Public Enquiry Service is somewhat similar to citizens' advice bureaux in other parts of the world and the emphasis is placed on giving a sympathetic hearing coupled with helpful advice and practical assistance. There is a specially trained staff, each member of which speaks English, Cantonese and a number of other Chinese dialects. Results show that the service constitutes a valuable instrument for improving Government's relations with the public.

BROADCASTING AND TELEVISION

      There are three separate organizations providing public broad- casting services in Hong Kong. The Government station, Radio Hong Kong, is non-commercial and provides English and Chinese language services. Each is on the air 17 hours a day. Commercial Radio, which derives all its revenue from the sale of broadcasting time for advertising, also maintains two daily 17-hour programmes in English and Cantonese. Rediffusion (Hong Kong) Ltd operates a wired broadcasting service throughout the Colony and runs three programmes- -one in English and two in Chinese-for the same

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daily period as the other stations. Rediffusion also operates a wired television service.

The number of wireless receiving licences issued during the year was 142,546, an increase of 10,000. The number of receivers in use is believed to be higher than the number licensed, despite determined efforts by the wireless division of the post office to detect unlicensed sets. The majority of receivers now sold are transistors, and an estimate by radio dealers puts the total number of sets in use at about 300,000. If it is assumed that there are eight listeners to each set, which was the estimated figure reached during an audience research survey, this gives a total listening public of over two million.

A committee set up by Government in 1960 to study the future of television in the Colony made its report at the beginning of the year and further consideration is now being given to the matter.

RADIO HONG KONG

Radio Hong Kong is divided into four sections-English and Chinese-language services, and the administrative and engineering divisions. Each programme section is directed by a head of service, while administration is the responsibility of the secretary of the department and the broadcasting engineer is in charge of technical operations. The station's schedules are designed to encompass the fullest possible range of programmes, with news broadcasts receiv- ing high priority. Numerous bulletins are broadcast daily in both services, and there are regular relays of bulletins from the BBC. In this way Radio Hong Kong is able to bring listeners the latest information from many sources. News bulletins are supplemented by current affairs programmes and commentaries on political and economic developments both in Hong Kong and abroad. There are also frequent talks by leading members of the community on matters of current interest in Hong Kong. Outside broadcasts on public events and sport are regular features and very often there are two or three outside broadcast units operating simultaneously in various parts of the Colony. Religious services are broadcast from churches of various denominations in the Colony every Sunday, and from the studios during the week.

      The English Service. The English service of Radio Hong Kong broadcasts from 7 a.m. to midnight each day on 860 kc/s medium

OVF643

The main units of the Royal Hong Kong Defence Force are the Hong Kong Royal Naval Reserve, the Hong Kong Regiment and the Hong Kong Auxiliary Air Force. The latter is equipped with Auster aircraft (above) which are used for observation, reconnaissance and training, and also has two helicopters which are used extensively by Government.

The Auxiliary Air Force helicopters are used on weekly schedules to take doctors to remote villages (above) and play a vital part in helping to maintain health standards among people who would otherwise seldom receive professional treatment. A 3-inch mortar detach- ment of the Hong Kong Regiment goes into action (below).

During their annual camp in the New Territories a section of 3 Company, the Hong Kong Regiment (above) go in to the assault. Below is one of the medium machine gun detachments, which also have a mounted role with the light reconnaissance patrol.

G K

   The Hong Kong Royal Naval Reserve mans and operates two inshore minesweepers which are on loan from the Admiralty and are maintained by the Hong Kong Government. Aboard HMS Cardinham during mine- sweeping exercises (above) gear is prepared before being streamed astern. Wireless operator (below) tunes his set to make contact with other vessels.

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wave and 91 mc/s VHF/FM. In addition to the head of service there is staff of seven producers and five announcers. A consider- able number of residents also act as programme contributors. The service is intended to appeal not only to European listeners in the Colony but also to the many Chinese who turn to Radio Hong Kong for their news, information and entertainment. Music, both light and serious, forms 60 per cent of the programmes. The highlight of the year was undoubtedly the visit of the London Philharmonic Orchestra which gave five public concerts in the new City Hall, under Sir Malcolm Sargent. Radio Hong Kong broadcast all the concerts as well as special solo and chamber music recitals by leading members of the orchestra. Other out- standing serious music broadcasts during the year were by Orazio Frugoni, Beryl Kimber, Mildred Miller, the Stross Quartet and the NHK Symphony Orchestra. Apart from recorded classical music and visits by international artistes, Radio Hong Kong broad- cast a considerable number of recitals by local musicians. One evening each week the AM and FM services diverge and this permits broadcasts of full length operas on the FM service while more general programmes are maintained on the AM transmission.

The various tastes of the public in the vast field of light music are catered for by a great number of record programmes of all types-request programmes, light orchestral concerts, personal choice programmes, 'pop' music and jazz can all be heard regularly. There are also broadcasts by an ever increasing number of musicians and entertainers who visit Hong Kong from all parts of the world. Outstanding in the past year were broadcasts by Frank Sinatra, Bobby Rydell, Bobby Vee, the Blue Diamonds and Tito Puente.

A large number of talks on a great variety of subjects were broadcast during the year. Many were commissioned from local contributors and either formed part of a series or were incorporated into one or other of the many magazine programmes which Radio Hong Kong broadcasts each week. Behind the Headlines, in which Hong Kong-based news correspondents discuss important political developments throughout the world, continued to be lively and informative. The programme is a useful adjunct to the news bulletins and Radio Hong Kong is able to command the personal

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impressions of correspondents who by the nature of their work travel extensively throughout south-east Asia and the Far East.

A series of discussion programmes of interest was Meeting Point. In this, seven prominent personalities the editor of a leading English-language newspaper, the Dean of the Anglican Church, a Jesuit priest, the Vice-Chancellor of the University, a Far Eastern political commentator, the Secretary of the Hong Kong Council of Social Service and a leading businessman-were invited in turn to answer questions about themselves, their work and philosophies by a panel of four Chinese students. After a little practise the students became adept at conducting interviews 'in depth' and no one was allowed to get away with a half-hearted answer. The recruitment of a drama producer to the staff has had a marked effect on the standard and frequency of local productions. Patient auditions revealed a considerable amount of local radio talent and regular plays are now produced in the studios.

      The interests of sports enthusiasts are looked after by com- mentaries on local fixtures, and by relays of international sporting events in Britain, the United States and Australia. Full coverage was given to the visit of the 1962 Commonwealth Cricket XI and the commentators enjoyed, as much as the public did, the oppor- tunity to talk about such players as Graveney, Ramadhin and Benaud, against whom local cricketers put up strong resistance. One thrilling broadcast concerned a match which was decided by the last ball of the last over.

A programme which aroused considerable interest among listeners to the English service was Cantonese by Radio. The response was so encouraging that it was decided to repeat the series in the winter months of 1962-3 and a special booklet was prepared setting out details of the lessons in full. There is no doubt that there is also a great deal of interest in many other of Radio Hong Kong's more educational broadcasts. Too often listeners complain that they miss interesting talks given during the day at a time when they are at work and, while very often these broadcasts are repeats of an earlier evening transmission, it nevertheless demonstrates the difficulty of satisfying the wide variety of interests that exist in Hong Kong with only one English transmission.

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         The Chinese Service. The Chinese service broadcasts from 7 a.m. to midnight on 640 kc/s medium wave and 94 mc/s VHF/FM. The principal language is Cantonese, but there are also daily broadcasts in Kuoyu, Swatow and Hakka. In addition to the head of service there is a staff of 10 producers and seven announcers, while many hundreds of contributors are employed as producers, writers and artistes. Unlike the English service, which is able to turn to Britain and other countries to supplement local productions, the Chinese service has to rely almost exclusively on Hong Kong artistes and locally-manufactured gramophone records. Despite this the same wide variety of programme content can be found in the schedules, and audience research has revealed that the vast majority of listeners are satisfied with the fare they receive. News, talks, classical opera, modern music of East and West, sports and magazine programmes, drama and documentaries are all available. The Chinese service has the additional responsibility of catering to certain specialized listening groups and programmes for fisher- men, farmers and industrial workers are broadcast regularly.

       Considerable emphasis is placed on maintaining the high tradi- tions of Chinese culture, and broadcasts by local opera groups, the reading of Chinese verse, and serialization of classics in dramatized form take place regularly. Local events such as the Dragon Boat Festival and the Cheung Chau Bun Festival are given the fullest possible coverage. Special arrangements are made so that Radio Hong Kong contributes as much as possible to the festivities of Chinese New Year, and in 1962 Radio Hong Kong's Chinese service mounted the largest outside broadcasting operation to date. Seven sites were chosen in various parts of the Colony and public variety shows staged by the service's artistes. Equip- ment, engineers and performers were leap-frogged from one venue to the next to maintain a continuous broadcast throughout the evening and until 2 a.m. the next day to add to the excitement of the occasion.

In the field of lighter entertainment Beginners Please is a show which never fails to attract a large audience. The opening of the City Hall, where the Concert Hall alone seats 1,500 people, has made these programmes available to a wider 'live' as well as listening audience, and applications for tickets invariably exceed the seating capacity by four or five times. Many programmes are

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produced for women and children and the interest taken offers an opportunity to broadcast special talks on such subjects as Mother- hood Education Week and the Drive for Happy Homes.

      A domestic drama which achieved considerable popularity during the year is General Cook. The episodes, which are broad- cast three times a week, tell of the experiences of a family cook in his efforts to satisfy the gastronomic needs of his employers. Actuality recordings are made in various markets while the cook is buying his ingredients, and the family join him in the kitchen to learn his culinary secrets. A development of considerable interest during the year was the establishment of a local sound effects library. A total of 500 items have been recorded and divided into 27 categories. The library, which is available to other broadcasting organizations, film producers and others upon request, is considered a valuable contribution to the Colony's archives.

      Engineering Division. The engineering services of Radio Hong Kong are operated by Cable and Wireless Ltd. In addition to maintaining transmission and studio services, the division operates a considerable amount of outside broadcasting equipment which can be called upon at short notice. Three outside broadcasting vans are now in use and nine portable tape recorders are on con- stant call by programme compilers. An interesting engineering development during the year was the construction of a tape re- covery unit. The machine was designed and built in the workshops of Radio Hong Kong, and serves the dual function of electronic- ally counting the number of splices in a tape while being able to stop instantaneously when a splice passes a selective 'eye'. In this way individual splices can be investigated to ensure that joints. have been satisfactorily made. Those tapes which have been spliced too often are rejected, while as much satisfactory material as possible is salvaged.

COMMERCIAL RADIO

      Commercial Radio broadcasts programmes in English and Chinese, each service being on the air 17 hours a day. The English service is broadcast on 1530 kc/s and the Chinese service on 1050 kc/s, using 1-KW transmitters. The studios, transmitters and antennae are situated at Lai Chi Kok, Kowloon.

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Airtime is sold by the hour, half-hour or quarter hour, or as 'spot' announcements ranging from 10 to 60 seconds. Rates for the Chinese service vary from $962.50 an hour during peak periods to $80 for a 10-second 'spot' announcement. For the English service, rates vary between $275 an hour in the evenings and $10 for a 10-second 'spot' announcement. There is a staff of over 100, excluding artistes engaged for specific programmes.

      English Programme Department. The year was a progressive one in which the general programme format, was streamlined. One of the most notable changes was the discontinuance of part-time announcing staff, who were replaced by a permanent staff of five male programme assistants. Two female programme assistants are responsible for special programmes for women and children. In January the director of the English programme left the company on a year's leave of absence. There is a European staff of nine, all of whom broadcast regularly. Special programmes are also con- tributed by members of the European community in the Colony. These include book and play reviews, short story readings, talks and true life adventures.

The outstanding achievement of the year was the station's organization and presentation of four performances of the Frank Sinatra Charity Show in aid of the under-privileged children of Hong Kong. The concerts were held at the City Hall and two were broadcast 'live'. At the conclusion of the fourth concert Mr Sinatra presented a cheque for $95,000 to the Hong Kong Council of Social Service. Outside broadcasts played an important role in the year's programming. Sports, civic functions, the Queen's Birthday Parade, the draw for the Hong Kong Government Lottery and night-club entertainments were fully covered. Three concerts given by the finalists of the 1962 Hong Kong Schools Music Festival were re- corded in the City Hall and broadcast later. International artistes heard over the station in 'live' performances included Bobby Vee, Jo Ann Campbell, The Ventures, Tony Brady and Anton Karas. Three 30-minute programmes outlining the history of modern classical music were recorded in the studios by the noted American pianist, composer and conductor, Harold Schramm. In August a special representative was sent to Djakarta to cover the Fourth Asian Games, and 15-minute daily reports were flown back for broadcasting.

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       Transcribed shows were obtained from Australia, Canada and the USA, and an approximate weekly breakdown of programmes is as follows: Classical music 10 per cent; spoken word six per cent; news eight per cent; music other than classical 76 per cent.

Chinese Programme Department. The year was again one of expansion. A series of half-hour educational programmes was specially prepared to help middle-school students with their examinations in February. A new 15-minute Current Events pro- gramme covering daily events in Hong Kong was introduced in February and is now being broadcast five times weekly. Two mem- bers of the staff of this programme were sent to Djakarta to cover the Asian Games. Special appeals were made for donations to the Community Relief Trust Fund set up after typhoon Wanda in September and $104,523 was received. In addition, a charity foot- ball match was sponsored by the station and raised $68,617 for the relief fund.

      The Chinese service began relaying news bulletins from Radio Hong Kong in September. It has continued to supply Chinese programmes to Radio Singapore and Radio Malaya, and is pre- paring Chinese programmes for the New Circuit Broadcasting Co Ltd of Canada. During the year over 100 outside broadcasts were carried out; 190 dramatized plays and 25 Chinese operas were produced in the studios. Each month 32,000 letters are received from listeners.

REDIFFUSION

Sound Relay. Rediffusion (Hong Kong) Ltd provides a wired broadcast service extending to practically all the urban areas and to many outlying villages on Hong Kong Island and in the New Territories. The network has more than 1,000 miles of main trunk lines and about 2,500 miles of installation cabling. Distribution is via sub-stations, kiosks and feeders to more than 50,000 loud- speakers. The parent company first operated 34 years ago in Britain and now operates in many parts of the Commonwealth; the Hong Kong company, which is locally controlled, is part of this world- wide organization.

Rediffusion operates from the most modern studio building in the Far East. It contains seven sound studios, all air-conditioned, from which three simultaneous sound programmes go out daily

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between 7 a.m. and midnight. Two networks-Gold and Silver- are in Chinese, while the Blue network carries English programmes. Sixteen per cent of Rediffusion programmes are commercially sponsored. The Chinese programmes offer music, news, drama, talks, sports commentaries, women's features, children's shows, comedy, story-telling and theatre relays in Cantonese, Kuoyu, Swatow, Hakka, Shanghai and other dialects. The English service gives continuous daily broadcasts of musical entertainment, plays, studio shows, news, BBC and other relays, sports events, stock market news, and features for women and children. Rediffusion employs 638 local staff, of whom 98 per cent are Chinese, in addition to a great many musicians, soloists, story-tellers and dramatic artistes. Rental for a loudspeaker is $10 a month, and subscribers have a choice of the three programmes, which together involve the origination of 51 hours of programmes each day. Additional loudspeakers in the same residence cost $5 a month.

Television. Rediffusion (Hong Kong) Ltd opened the first televi- sion service in any British Colony in May 1957, and it has been growing ever since. It is a closed-circuit network and at the end of 1962 there were almost 17,000 subscribers. Rediffusion House has two well-equipped studios each of about 2,000 square feet, and one of 200 square feet, while the equipment includes nine vidicon camera chains. Three of these are the latest Marconi studio types and one is fitted with the modern Taylor-Hobson vidicon zoom lens. The station uses the latest telecine-camera chains, with double channels for both 16 mm and 35 mm films, and has a full array of studio and control equipment. Most Chinese films carry English sub-titles and vice versa.

Programmes, produced in air-conditioned studios, include many 'live' presentations. Education and quiz programmes form an im- portant part of this side of the station's activities but Cantonese opera, popular music programmes, variety acts, children's features and topical interviews are also included in the schedule. Popular filmed television shows are imported from Britain and America. Rediffusion television programmes give about 50 hours of enter- tainment weekly; some are commercially sponsored. During that part of the day when the television service is not transmitting, the sound channel is used to broadcast from the Hong Kong Stock Exchange. A special programme for members of the Colony's

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large Indian community is broadcast on this sound channel every Sunday morning. The rental fee is $55 a month, including receiving unit and all maintenance. For subscribers who have their own television sets the monthly rental is $25, which covers the pro- gramme fee and full maintenance.

Following typhoon Wanda Rediffusion organized a series of charity broadcasts over its sound and television networks. The public showed unprecedented generosity and the company was able to hand a record sum of $511,500 to the Community Relief Trust Fund. In one of the broadcasts Rediffusion worked in association with the Wah Kiu Yat Po and the Sing Tao Press. In another it presented a seven-hour performance by Sun Mah Sze Tsan, the famous Cantonese opera and film star.

FILM INDUSTRY

      Hong Kong is one of the largest film producing territories in the world. During 1962 the Colony's six major studios and many independent producers maintained a high output and produced 272 feature films in Chinese for distribution locally and over- seas. Local and resident cameramen working for various newsreel and television companies continued during the year to supply items about Hong Kong to their overseas distributors. Film and televi- sion production units also continued to visit the Colony in large numbers, the 1962 visitors including film-makers from America, Australia, West Germany and Japan.

Studio production costs are governed by the limited market available. China does not import Hong Kong films and the total audience in Taiwan and among overseas Chinese living in the Philippines and south-east Asia amounts to only about 25 million. Producers must therefore concentrate on quantity rather than quality in order to show a profit. However, several of the larger studios turn out at least one major production costing up to $1 million each year and at the Ninth Asian Film Festival held in Seoul in May, Hong Kong again won honours. Lin Dai won the best actress award for her performance in the Shaw Brothers film Love Without End, which also won an award for the best theme song.

Cinema-going is undoubtedly the most popular pastime in Hong Kong and there are now 74 cinemas with 78,851 seats. Hong Kong

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Island has 26 cinemas (29,184 seats), Kowloon 32 (38,230) and the New Territories 16 (11,437). A number of cinemas have re- cently been extensively renovated to compete with newer buildings and the majority now have air-conditioning and wide screens.

It is one of the tasks of the Information Services Department to carry out those provisions of the Colony's Places of Public Entertainment Ordinance which require that all films must be viewed by a Panel of Film Censors prior to public exhibition, and the film censorship section operates two theatres within the depart- ment, one for 16 mm and one for 35 mm films. Films inspected during the year totalled 2,007.

17

Local Forces and Civil Defence Services

     THE Colony's auxiliary defence services consist of the Royal Hong Kong Defence Force, the Hong Kong Auxiliary Police Force and the Essential Services Corps. The Auxiliary Police, created during 1957 by a merger of the Hong Kong Police Reserve and the Special Constabulary, is dealt with in chapter 13. The Essential Services Corps, although legally an entity, is split for administrative and practical purposes into four autonomous services: the units of the Essential Services Corps proper, the Auxiliary Medical Service, the Civil Aid Services, and the Auxiliary Fire Service.

All these services are paid for almost entirely from funds voted each year by the Legislative Council. Except for small administra- tive and training staffs they are manned entirely by volunteers, residents of Hong Kong, who attend training classes and exercises in the evenings or at the week-ends and, in the case of certain services, attend more extended training at annual camps which last up to 15 days. Service in the auxiliary defence units is a consider- able commitment not only for the individuals concerned but also for their employers, the majority of whom have been most co- operative in releasing members of their staff for these duties, even at considerable inconvenience.

      Training obligations vary from service to service. The maximum is in those units whose members must every year attend at least 60 hours of instructional parades, six full-days' training and a training period at camp. The commitment is scaled down elsewhere to the needs of the particular unit. An allowance to cover out-of- pocket expenses is granted for attendance at instructional parades, while for a full-day's training and for attending camp, officers and members receive a higher daily rate of pay and, where meals cannot be provided, a ration allowance.

The Royal Hong Kong Defence Force. The principal units of the Royal Hong Kong Defence Force are the Hong Kong Royal Naval Reserve, the Hong Kong Regiment (The Volunteers) and

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the Hong Kong Auxiliary Air Force. In August legislation was enacted to disband the joint Defence Force Headquarters. Each major unit is now fully independent and corresponds direct with Government and with its regular parent Service.

The Hong Kong Royal Naval Reserve mans and operates two inshore minesweepers. These vessels are on loan from the Admiralty, but are operated and maintained at Government expense. Apart from their normal training the Royal Naval Reserve have provided invaluable assistance in the combined Police and Services operations to counter illegal immigration.

       The Hong Kong Regiment is a reconnaissance regiment com- prising a headquarters, an intelligence platoon, a home guard company, two reconnaissance squadrons and an infantry company. In addition to the normal weapons of an infantry unit the Regiment has six 'Ferret' armoured scout cars to assist in its re- connaissance role. A successful recruiting campaign was carried out during the year.

The Hong Kong Auxiliary Air Force is equipped with Auster aircraft and two Westland Widgeon helicopters. These helicopters again had a busy year, being used extensively by Government officers as well as providing a regular flying doctor service to remote districts of the New Territories and carrying out individual rescue operations.

       There are also two women's services: the Hong Kong Women's Royal Naval Reserve and the Hong Kong Women's Auxiliary Army Corps. Owing to recent re-organization within the RAF, the Women's Auxiliary Air Force had no further operational role and the unit was accordingly disbanded with effect from October. Its members were given the opportunity of transferring to one of the other auxiliary defence units.

       Volunteer service in Hong Kong began with the formation on 30th May 1854, of the Hong Kong Volunteers. In 1878 they were renamed the Hong Kong Volunteer Corps and in 1917 the Hong Kong Defence Corps. In 1920 the title was again changed to the Hong Kong Volunteer Defence Corps. The Corps was mobilized, about 1,400 strong, to meet the Japanese attack on the Colony on 8th December 1941 and fought with the regular forces against overwhelming odds until ordered to surrender on 25th December 1941. In 1956 their action was vividly recalled when part of the

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old Colours of the Corps, which had been buried in December 1941, to avoid capture by the Japanese, was discovered by work- men excavating a building site on Garden Road. The officers who had hidden the Colours had died in captivity, leaving no record of where the Colours might be found. The remnants of the old Colours were paraded on the Annual Review of the Defence Forces in March 1958, and were afterwards laid up in St John's Cathedral. Decorations were conferred upon 15 members of the Corps for their gallantry in battle and for later escapes from Japanese prison camps in Hong Kong, while 18 were mentioned in despatches.

After the war the Corps was reconstituted on 1st March 1949, as the Hong Kong Defence Force. Two years later, His late Majesty King George VI granted the title 'Royal' in recognition of the part played by the Force's forerunner, the Volunteer Defence Corps, in 1941. In March 1957, Her Majesty the Queen awarded the Battle Honour 'Hong Kong' to the Royal Hong Kong Defence Force, and this Honour is now emblazoned on the Regimental Colour.

     The Essential Services Corps proper consists of a number of units, each responsible for maintaining an essential service such as the supply of electricity, water, communications, etc. Each unit is principally staffed by persons already employed in the service but is reinforced as necessary by others. Since in an emergency most members would continue to perform duties in which they are already expert, the Corps requires little extra training. The Corps is under the general direction of a leading member of the business community who is assisted by a small staff of full-time Government servants in carrying out administration, planning and liaison with units.

     The Auxiliary Medical Service is organized to provide first aid, reinforce Government and private medical establishments, and provide an augmented ambulance service in an emergency. It is built around the Medical and Health Department, the St John Ambulance Brigade and other members of the medical and nursing professions, but many people with no previous training in nursing and first aid have also been enrolled and trained to act as auxiliary nurses in hospitals or as first aid workers in the field. Since conscription ended there has been an excellent response to His

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Excellency the Governor's appeal for volunteers and the strength of the service is now nearly 5,000.

      In August, for the second year running, the incidence of cholera in the Colony reached such proportions that the Director of Medical and Health Services found it necessary to institute an isolation centre for cholera 'contacts' in order to minimize the risk of spreading the disease. The task of running this isolation centre fell largely on the Auxiliary Medical Service and the response to the emergency was again excellent. There was not a single instance of reluctance on the part of a member to undertake duty in the isolation centre, nor of any employer refusing to release an Auxiliary Medical Service member from his usual employment. During and after typhoon Wanda in September, many members turned out to administer first aid to the injured and to assist in rescue work and the establishment of centres for feeding and housing the homeless.

       The Civil Aid Services are responsible for all the civil defence functions not covered by the other emergency services. They include three command units, a warden service with posts throughout the urban area, a rescue service, a despatch service equipped with motor scooters, an accommodation unit, and several administrative units. Volunteers continue to come forward and there are now over 5,000 members, most of whom train on one or two evenings a week and take part in exercises with the Auxiliary Medical Service. There are also full-time specialist courses for selected members lasting up to a week. Three thousand members attended the annual field day and took part in competitions designed to test individual and unit skills and organization.

Many members turned out voluntarily during typhoon Wanda and carried out a wide variety of tasks with great willingness and efficiency. Many of them spent 10 or more hours each day in clearance work and assisting in the care of the homeless.

       The Auxiliary Fire Service is designed to assist the regular Fire Services. Members of the Service total over 660. They man their own appliances during weekly platoon training under the super- vision of regular Fire Services Department officers, and work on water relays, week-end station duty, full-day and half-day exercises, a pump operators' course, driving instruction, and control and watch-room operating. The Auxiliary Fire Service is also called

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out to help the Fire Services to fight serious fires and at 'special service' incidents such as landslides and collapses of buildings during rain storms and typhoons. In co-operation with other auxiliary defence units the Auxiliary Fire Service rendered valuable assistance during and after the onslaught of typhoon Wanda.

Apart from training to meet emergencies and assisting at major natural disasters, there are many instances every year of members of all the auxiliary services giving help and first aid, in an in- dividual capacity at all kinds of accidents.

18

Research

UNIVERSITY

SUBJECTS as diverse as drug addiction and the 'pidginization' of Asian languages were included in the University of Hong Kong's research programme, which was again expanded during the year. The Department of Architecture continued to examine local problems and attention was given to the public and commercial buildings which might be required in the proposed new towns. A multi-storey trade centre for Victoria City was studied and the subject of one of the theses was a rehabilitation centre for Hong Kong. In the Department of Biochemistry the major research projects were concerned with problems of drug addiction, nutrition, and the comparative aspects of metabolism in relation to bio- chemical evolution. Continued investigations into the effects of morphine and other drugs on the hormonal control of metabolism have yielded most encouraging results and this work is being extended. The Department of Botany continued work on the life history and cytology of local seaweeds and the carbohydrate metabolism of Narcissus leaves. The investigation of the Phycomy- cete flora of the soils of Hong Kong and ecological studies on soil fungi progressed satisfactorily. Survey work on the fungal flora of Hong Kong and the collection of specimens for the mycological herbarium also continued steadily. In addition the department is pursuing research in the fields of mechanisms of chemical reac- tions; chemistry of plant products; electrochemistry and inorganic reactions at elevated temperatures; and studies of molecular struc- ture by means of X-ray diffraction.

      Research in education in the Colony's schools is being con- ducted, under the chairmanship of the Professor of the Department of Education, by the Hong Kong Council for Educational Research, a body financed by the Asia Foundation. A project covering the scholastic attainment and ability of pupils in primary four, under- taken in five typical government schools with a total of 1,103

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pupils, was designed to provide a tentative picture of the educa- tional characteristics of the primary four child as he appears in these schools. From information received in this project, together with school selection of probable failures, a further inquiry is being made in an attempt to define educational backwardness in Hong Kong and to determine the underlying academic, medical or sociological reasons for school failure. A committee on the teaching of English as a second language is designing tests to determine the attainment level in English of a large sample of students, and to find to what extent English influences success in other school subjects.

Research activities in the Department of Civil Engineering during the year included theoretical and experimental studies of many aspects of design and construction of multi-storey buildings. A simplified method of wind-stress analysis of high-building frames was evolved and the validity of the method is being verified by wind-tunnel tests and by experimental loading tests on small-scale models. Theoretical and experimental studies started on vibrations in buildings due to reciprocating and rotating machines. This work forms part of a comprehensive investigation being undertaken at the request of, and with support from, the Federation of Hong Kong Industries. The Department of Electrical Engineering con- tinued its investigation into the performance of motors under abnormal conditions, and the effect of special windings in motors was also studied. The Department of Mechanical Engineering con- structed a second subsonic wind tunnel having a flow of 3,500 cubic feet per minute at a speed of 170 ft/sec. It also constructed a hydraulic model of the bellmouth spillway, discharge tunnel and stilling basin of the Shing Mun Dam, now being built as part of the Plover Cove and Hebe Haven Water Scheme. The object was to forecast the discharge coefficient of the spillway and to deter- mine the effect of the overflow on the river basin under normal and flood conditions.

The Department of Geography and Geology continued to make industrial and agricultural land-use surveys in the Ping Shan, Yuen Long and Fanling districts. An investigation was also begun on the tectonics of the Kowloon Hills in the vicinity of the Lion Rock Tunnel. Projects in the Department of History included work in the fields of Chinese, Japanese and south-east Asian history. The

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main subjects of research were the history of Chinese relations with Yunnan during the T'ang period and the ethnic problems connected with the state of Nanchao; Chinese and Indian influ- ences on early south-east Asian government systems; problems of communication between the English East India Company and Chinese officials at Canton in the early nineteenth century; academic and popular western concepts of China and the Chinese in the nineteenth century; relations between Ch'ing officials and western entrepreneurs in the latter half of the nineteenth century; activities of Chinese revolutionaries in Hong Kong between 1895 and 1911; documentary sources illustrating China's external rela- tions in the late Ch'ing period; British policy in China between 1894 and 1902; the early history of the Communist movement in China; modern Sino-Japanese relations; and aspects of south-east Asian history since 1870.

Members of the Department of Modern Languages continued their research into problems of 'pidginization' and 'creolization' in Asia and published further articles on the Portuguese dialects of south-east Asia and the Luso-Hispanic dialects of the Philippines.

Research in the Department of Mathematics was carried out in pure mathematics, applied mathematics and statistics, where an experimental sampling investigation of a model regression situation was started. The demand for consultative services on outside research problems continued to exceed the supply.

The major research interests of the Department of Medicine lie in the fields of diseases of the blood, liver and spleen. An investiga- tion of the occurrence of polycythaemia in hepatocellular carcinoma was completed and an investigation of hypoglycaemia in the same tumour nears completion. A survey of the distribution of Cooley's anaemia in China was finished, but observations on the incidence of other haemoglobinopathies continued. The Department of Orthopaedic Surgery continued research previously undertaken. Tuberculosis of bones and joints is still one of the most frequent conditions treated in this section of the University and a great part of the research activity is related to this field. An analysis of 300 cases of tuberculosis of the spine treated with anterior spinal fusion between 1955-60 was completed, and showed the very satisfactory results obtained with this type of treatment. On the experimental side the department contributed to the knowledge of the spread of

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tuberculosis to the spine, and of the histo-pathology of the vas- culatization of the human spine during growth. Another research project has been stimulated by the observation that some ortho- paedic conditions, such as osteochondritis of the hip, are found among western children but are unknown among Chinese children. The project aims to find out if there is any vascular difference between the western and the Chinese hip.

In the Department of Pathology researches were carried out on recurrent pyogenic cholangeitis and carcinoma of the liver. Researches on bronchogenic carcinoma were continued and led incidentally to some papers on other conditions of the lung. In chemical pathology a study of the normal biochemical levels in Hong Kong Chinese was published and a detailed chemical study of the Chinese liver fluke Clonorchis sinensis was made. Experi- mental work on tumour formation is in progress, particularly with regard to nasopharyngeal carcinoma and ovarian tumours. Studies of poliomyelitis and other enteric viruses in Hong Kong have been continued. The Department of Surgery continued clinical research on various subjects in particular the long-term results of the surgical treatment of peptic ulceration and cholangiohepatitis, two very common conditions among patients admitted to the Queen Mary Hospital. At the end of the year preparations were being made for the establishment of a new renal laboratory with an artificial kidney unit financed largely by private donations.

     Following the expansion of the Zoology Department research activities were more extensive and varied. They included studies on the taxonomy of mammals, development of reptiles, cytology, insect parasites of birds, and several other aspects of entomology, particularly psocoptera and the chalcid fauna of wild figs.

      In the Department of Student Health Service, research continued on the disease patterns in student communities and on factors responsible for psychological distress among students.

GOVERNMENT

Medical and Health Department. The main emphasis was on poliomyelitis and the virus laboratory conducted an investigation into enterovirus and poliovirus excretion rates. Graphed results

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     showed maximum incidence at the height of the summer and this information was used as the basis for planning a mass oral vaccine campaign. A joint investigation was also conducted by Lederle Laboratories and the department into the feeding of oral trivalent vaccine to a large group of children; conversion rates in a sample of more than 60 of these were satisfactory, except in the case of three children.

During a cholera outbreak in the summer, research was con- ducted into various aspects of the carrier state with particular reference to the persistence of the organism.

      Fisheries Research is the responsibility of the fisheries research station which is part of the Co-operative Development and Fisheries Department. This work is dealt with in detail in chapter 7.

     Research and Applied Meteorology. Royal Observatory staff have only limited time for research and emphasis is therefore placed upon applied research in meteorology. During the year work started on the preparation of climatological summaries for aero- nautical purposes and when completed the summaries will aid air- lines in their long-term operational planning. A close network of raingauges has now been planned to study the distribution of rain- fall intensity within individual rainstorms and this investigation will help in the design of catchwaters and drainage systems. A study of the diurnal variation of rainfall over south-east Asia has been completed and brief studies on the mechanism of summer rainfall over Hong Kong were carried out during 1962.

Methods of forecasting the movements of tropical storms are still under investigation. A study of various objective techniques has begun and it is hoped that these will be suitable for operational forecasting. Work continued on the method which utilizes the pattern of upper-air flow at 700 millibars (about 10,000 feet) and it was applied to forecasting the movement of many tropical storms during 1962. The method compared very favourably with other available techniques. An investigation into the correlation between tropical storm positions, their intensities, and the associated micro- seisms has revealed that the continental shelf has a marked influence on the microseismic intensity.

The first results of radioactivity measurements carried out by the Royal Observatory were published as a scientific note and the

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following papers were presented at the Regional Conference of South-east Asian Geographers held in Kuala Lumpur: Diurnal Variation of the Frequency of Precipitation over South-east Asia; 24-hour Prediction of Tropical Cyclone Positions in the Far East; and Diurnal Variation of Upper Winds over Hong Kong.

19

Religion

THE growth of Hong Kong in the past 12 years has produced many impressive statistics and this is as true in the sphere of Christian development as in any other. In 1950 there were about 80,000 Christians, including children. Today the Christian com- munity numbers approximately 380,000 and is growing at the rate of about 30,000 a year. Growth is fastest in Kowloon and the New Territories, with a yearly expansion rate of roughly 12 per cent as against seven per cent on Hong Kong Island.

The Anglican Church has played a notable part in the religious history of the Colony and now has a score of parish churches and half a dozen mission chapels in the Diocese of Hong Kong, which includes Macau. In three of these including St John's Cathedral, which was founded in 1842 and established as a cathedral by Letters Patent from Queen Victoria in 1850, worship is in English. Services in English are also conducted in the Union Church, the Methodist and Baptish Churches in Hong Kong, and in the Union, Baptist, Emmanuel and Alliance Churches in Kowloon. Other old- established churches are those of the London Missionary Society and the Methodists, while many Protestant churches are of very recent origin. There are a small number of Russian Orthodox believers who are divided between those who recognize the present Patriarch of Moscow and those who do not. The former have their own church founded in 1934, while the latter have inter- communion with the Anglicans and meet at St Andrew's Anglican Church, Kowloon.

The Chinese-speaking churches, which constitute over 95 per cent of the total Protestant strength, continue to add both to their membership and their church buildings. Most belong to major world-wide groups such as the Lutherans, Baptists or Anglicans, but there are also over 60 locally organized undenominational churches. Many of these individual congregations maintain con- tact with the main body of the Church in Hong Kong through membership of the Chinese Churches' Union, which exists to

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provide a forum for joint action and discussion on matters of local importance.

The Protestant Churches come together on a denominational basis in the Hong Kong Christian Council with missionary societies and Christian organizations such as the YMCA and YWCA. The Hong Kong Christian Council is linked to the World Council of Churches and thus keeps its members in touch with the thought and development of oecumenical Christianity, as well as with the welfare activities of the world church through Inter-Church Aid. The Hong Kong Christian Council also sponsors many inter-church committees on such subjects as Christian citizenship, education, family life, industry and church planning.

      The largest body connected with the Hong Kong Christian Council is the Christian Welfare and Relief Council, which co- ordinates the work of 26 Protestant churches and relief agencies operating in the Colony and sponsors world-wide appeals for funds through the World Council of Churches. As well as being a clearing house for money from overseas the Council also operates three rehabilitation projects on behalf of its member churches. These consist of a settlement for Swatow immigrants on Chu Lap Kok island, a scheme for settling cured drug addicts and their families on smallholdings in the New Territories, and vocational training classes giving instruction in electricity, diesel engines, painting and refrigeration to over 400 students. Other welfare work done jointly by the churches includes the Haven of Hope Tuberculosis Sanatorium, a college student work project which supports students through post-secondary colleges in return for regular hours of service, and assistance to families who need putting on their feet in such a way that they can earn their own livelihood. Many churches and missions contribute to this con- tinuing programme of social welfare. The Church World Service, Lutheran World Service, Salvation Army and the Presbyterian Case-Work Centre are the biggest relief agencies, but there are many others. Their activities range from family planning and pre- natal care to the provision of orphanages, creches and free meals for children. They also provide educational assistance, give help in finding jobs, and finance medical and housing projects.

The Roman Catholic Church in the Colony dates from 22nd April 1841, when the Prefecture of Hong Kong was established

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by Pope Gregory XVI with Msgr Theodore Joset as the first Prefect. Within 14 years a new church had been built to replace the original mat shed mission and a seminary opened for the education of Chinese priests, thus laying the foundation for the education and welfare programme that has always been an integral part of the Catholic Church in Hong Kong. Religious sisters of the congregation of St Paul de Chartres came from France to open Hong Kong's first Catholic hospital, a Catholic school and an orphanage that trained girls in home-making skills. The Colony's first trade school, called the West Point Reformatory for Homeless Boys, was also established by the Catholics.

In 1867 the Prefecture Apostolic of Hong Kong was entrusted by the Holy See to the Pontifical Institute of Foreign Missions (PIME), which had sent missioners to Hong Kong nine years earlier, and in 1874 the Prefecture was raised to a Vicariate with Msgr Timoleon Raimondi, PIME, as Vicar Apostolic of Hong Kong. At the turn of the century Bishop Raimondi extended the work of the Catholic Church in the New Territories and St Joseph's Church and the Immaculate Conception Cathedral were built on Hong Kong Island. As the Colony developed the Catholics expanded their health services, offered institutional care to the orphaned and aged poor, and provided more trade, technical and general education.

       The cultural life of the Church began to develop in 1928 with the starting of Kung Kao Po, a Chinese Catholic weekly news- paper. The Catholic Centre, opened after the second world war to serve the liberation forces, now houses Kung Kao Po, the Sunday Examiner, the Catholic Truth Society, a book and liturgical distribution centre, a chapel, a library, and many other social, religious and cultural facilities. The Vicariate was raised to a Diocese on 11th April 1946, and under the administration of Bishop Lawrence Bianchi, PIME, the Catholic community of Hong Kong has risen from 43,000 in 1952 to some 190,000 today and another 10,000 are receiving instruction in the faith.

Chinese and non-Chinese engaged in cultural, educational and welfare work in the Colony now total 321 priests, 121 brothers and 632 sisters representing 34 orders and congregations. Through careful planning and with the co-operation of the Government the Catholic Church has continued to contribute to the progress of

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     education. During the year six new schools were completed, while four were rebuilt and enlarged. Emphasis is on the establishment of primary schools to help meet the highly urgent problem of pro- viding more children with at least an elementary education. Some indication of the educational efforts in the last decade is given by the fact that 111,748 students now attend 174 Catholic primary and secondary schools--nearly four times as many as in 1953.

In recent years the Catholic Church has devoted much of its energy and resources to social welfare. Caritas-Hong Kong, the Social Welfare Bureau of the Diocese of Hong Kong, was set up in 1958 and has sponsored 'meals-on-wheels' feeding projects, clinics, and a rapidly growing series of 'self-help' projects. A four-storey social centre was opened at Aberdeen in May and offers various types of vocational training to 300 girls. There is also a medical clinic with separate dental, surgery and X-ray units, treating more than 200 people daily. With the Co-operative Development and Fisheries Department the centre also provides fishermen with instruction in diesel engine maintenance, while more than 2,000 meals are prepared daily at the centre and delivered to school children on Hong Kong Island. A social centre at Tsuen Wan provides young factory workers with hostel accom- modation and offers welfare and recreational facilities to children from working-class families. An adult education centre in Robinson Road, Hong Kong, was opened in December to provide typing and commercial courses, domestic science training and similar subjects. It has hostel accommodation for 60 girls. Other projects started in 1962 and planned for completion in 1963 include a 400-bed hospital, a youth welfare centre at Cheung Chau, a social centre in Kennedy Town, and a kitchen at Shek Kip Mei, Kowloon, able to prepare 5,000 free meals a day for poor children.

      The task of meeting the needs of immigrants and slum-dwellers has resulted in continual expansion of many other charitable services of the Church. St Mary's, a new home for the aged with 380 places, was opened in September. Youth clubs, clinics, play- centres, libraries and cottage industry facilities have also been provided. Through a special commission formed by Bishop Bianchi help has been received from the Federal Republic of Germany, the United States and Norway, and from such voluntary organizations as the Misereor Social Aid Fund of the German

:

Sometimes it seems that Hong Kong never sleeps. As darkness gradually envelopes the twin cities of Victoria and Kowloon, lights of every hue- first in hundreds, finally it seems in millions-trace the line of every street and sketch the familiar contours of the Peak and the Kowloon foothills. On the harbour between, great ships come and go.

ה:

·

The view from the Peak by night rivals that by day; indeed there are many who prefer it. Great modern buildings, distant suburbs, warships-all add their quota to the glow.

718

In Kowloon, looking more than ever Like great ships at anchor, stand the reselement blocks that are home to mor than 400,000 people. Once few famies had electricity, now nearly all do.

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.EE KWONG

Ele pistor

L-MAY KING WATCH GO/

JUVENIA

The city streets become a riot of neon and every pavement is crowded. For many thousands of Chinese people this is the peak period for window shopping and visiting the tea houses. Not till after midnight will the streets begin to quieten.

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The harbour catches the waterfront lights and blends them into a rainbow that ripples with the passing of each ship. At this distance there is no sound from the shore. Only the great signs in English and Chinese, rearing skywards from the rooftops, denote the presence of busy streets where the coming of night passes almost unnoticed.

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      Bishops, the Catholic Relief Services of the US National Catholic Welfare Conference, the British Commonwealth Save the Children Fund, the Catholic Women's Leagues of London and Australia, and OXFAM. Lay members of the Diocesan Council for the Lay Apostolate, the Society of St Vincent de Paul, the Chinese Catholic Club, the Catholic Women's League, the Guilds of Doctors and Nurses, the Apostolate of the Sea, the Serra Club and the Young Christian Workers share actively in the welfare work of the Catholic Church.

The Catholic Church's welfare institutions in Hong Kong now include five hospitals, 33 free clinics and dispensaries, child care centres, orphanages, creches and institutions providing rehabilita- tive or custodial services for the blind and people otherwise handicapped or in need of special care. Two major welfare centres, 21 food conversion units and two large kitchens are also being operated.

There has been a notable revival of Buddhism in Hong Kong in recent years, mainly due to the immigration of Buddhists from China. It maintains a strong hold among the older Chinese and is far from dying out among the younger people. Religious studies are conducted in a large number of monasteries and nunneries, and in hermitages built in secluded places where a dozen or more inmates may reside and devote themselves to quiet meditation. Because of their accessibility, hermitages at Sha Tin and Tsuen Wan are popular with people living in the urban areas. The better known monasteries are, however, situated in more remote and scenically pleasing parts of the New Territories. Thus the Po Lin monastery at Ngong Ping, Lantau, is reputed to have the best view of the sunrise and is much visited at week-ends and holidays.

Other monasteries which attract both devotees and sight-seers include those known as Castle Peak, Tung Po Tor and Sai Lam, all in the New Territories. At To Fung Shan, a hill in Sha Tin, there is the famous Christian Mission to Buddhists which aims to cultivate the Christian and the Buddhist faiths together. There is also a unique organization, the Hong Kong Red Swastika Society, which aims to cultivate together under one roof Buddhism, Taoism, Christianity, Mohammedanism and Confucianism. To meet the demand of the urban population, Buddhist Ching She (places for spiritual cultivation) and Fat Tong (Buddha Halls)

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have been opened in flats in residential areas. Sutras are also expounded under the auspices of various Buddhist associations in the urban areas.

Sarira (relics left after the cremation of renowned high priests or living Buddhas) are treasured by Buddhists and are distributed to the close followers of the deceased. They are usually kept in specially built pagodas within the compound of a monastery. It is also a common practice among Buddhists to have the cremated remains of their relatives preserved in such pagodas, but the fees charged are high and not within the means of all. The Government has decided to set aside part of the new Cape Collinson Cemetery as a Buddhist section under the charge of the Hong Kong Buddhist Association. An up-to-date crematorium will be provided by Government.

Chinese temples play an important role in the life of many Chinese in Hong Kong, being open for public worship. Temples are usually dedicated to one major deity, but in most of them several deities are worshipped. The deities are either mortals or legendary figures deified, or dignitaries borrowed from Buddhist or Taoist sources. Taoism has many followers, although it is not as widespread as Buddhism. Statues of Kwun Yum, the Buddhist Goddess of Mercy, may thus be found standing next to the shrines of local Taoist dignitaries such as Wong Tai Sin and Tam Kung. Because the early settlements in Hong Kong were fishing villages, most temples have been erected in honour of deities connected with the sea or seafarers such as Tin Hau (the Queen of Heaven and guardian deity of seafarers), Kwun Yum, Hung Shing (the Lord of the South Seas) and Pak Tai (the Lord of the North). Perhaps the oldest, and certainly one of the most popular, of the Hong Kong temples is that dedicated to Tin Hau at Causeway Bay. Other Tin Hau temples are found near the entrances to most fishing harbours, and the best known of these is the one at Fat Tong Mun, Joss House Bay.

The Man Mo Temple in Hollywood Road, which is dedicated to the Gods of Literacy and Martial Valour, is equally famous and is under the control of the Tung Wah Group of Hospitals. In recent years by far the most popular Taoist temples have been the Wong Tai Sin Temple in New Kowloon and the Che Kung Temple in Sha Tin. All Chinese temples in Hong Kong, apart

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from those specifically exempted, must be registered with the Secretary for Chinese Affairs and come under the general control of the statutory Chinese Temples Committee. All revenue obtained from these temples is administered by the committee, whose first obligation is to pay for the due observance of religious ceremonies and celebrations, and to ensure that the temples are kept in a proper state of repair. Any surplus is transferred to the General Chinese Charities Fund, which distributes it to charitable organiza- tions in accordance with their needs. In the New Territories, where a traditional clan organization has been preserved to a much greater extent than in the urban areas, many villages have an ancestral hall where the ancestral tablets of the clan are kept and venerated. In such villages the inhabitants often all belong to the same clan and the hall is the centre of both the religious and the secular life of the village.

The Chinese as a whole observe five major festivals of the Chinese calendar. The first and the most important is the Lunar New Year, welcomed in Hong Kong in the traditional manner with a deafening barrage of firecrackers. It is a common belief that the mass discharge of firecrackers on this occasion will dispel evil spirits and bad luck, and usher in a happy new year. The customary exchanges of gifts and visits to relatives and friends are also widely observed. During the Ching Ming Festival, which falls in the Spring, visits are paid to the graves of the family ancestors. The Dragon Boat Festival is celebrated on the fifth day of the fifth moon and dragon boat races are held at different places throughout the Colony. The Mid-Autumn Festival falls on the fifteenth day of the eighth moon, when gifts of mooncakes are exchanged among relatives and friends. The ninth day of the ninth moon is Chung Yeung, when large crowds climb Victoria Peak and other hills in imitation of a Chinese family of old who escaped death and misfortune by fleeing to the top of a high mountain. Graves are also refurbished.

Certain other festivals are celebrated by particular sections of the community. Fishermen pay special and colourful attention to the birthday of their patron saint, Tin Hau, at her temple. The Chiu Chow community celebrate the Yu Lan Tsit, or Festival of the Dead, in the seventh moon, with elaborate Buddhist ceremonies and theatrical performances.

20

The Arts

THE opening of the City Hall in March was the most important event of the year in the field of the arts in Hong Kong, and the Hall immediately became the centre of activities in both the performing and the fine arts. The facilities offered include a 1,500-seat concert hall adaptable for stage production, a 470-seat theatre, a banqueting hall and ballroom, an art gallery and museum, a public library and several exhibition halls, lecture rooms and committee rooms. All have been in heavy use since the opening of the Hall.

       For the first time Hong Kong had the privilege of receiving visits from two full symphony orchestras of international status in one year. These were the London Philharmonic Orchestra conducted by Sir Malcolm Sargent, whose five performances marked the opening of the City Hall, and the NHK Symphony Orchestra conducted by Seiji Ozawa which gave two concerts to open the First Asian Music Festival. The entire festival took place in the two auditoria of the City Hall.

       Almost all concerts by visiting musicians during the year were given at the City Hall. They included pianists S. Niedzielski, Sebastian Benda, Walter Klein, Ornella Santoliquido, Orazio Frugoni, Irene Kohler, Gerd Kaemper, Yu Chun-yee, Liu Shih- kun, Ku Shen-ying, Daniel Barenboim, Bela Siki and Colin Kingsley. There were performances by violinists Yehudi Menuhin with Hephzibah Menuhin at the piano, Beryl Kimber with Moya Rea at the piano, Ladislav Jasek with Josef Hala at the piano, Erick Friedman with Annarosa Taddei at the piano, and Dr Marvin Ziporyn. Sopranos who appeared included Mildred Miller, Betty Allen and Rosie Farol, while chamber music groups included Virtuosi di Roma, the Tel Aviv Quartet, the Seoul Chamber Music Group, the Berlin Chamber Orchestra, the Wind Quintet of Radio Baden-Baden and the Hungarian Quartet. The Korean Children's Choir also performed at the City Hall.

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      Through the favourable comments of these visiting musicians Hong Kong has established the reputation of having two of the finest auditoria in the Far East for both full orchestral performances and intimate chamber music. The immediate result was an increase in the number of concerts by visiting musicians, which totalled more than twice as many as in 1961. Most concerts were well attended and warmly appreciated and they appear to have stimulated a deeper interest in music among the people of Hong Kong, as indicated by the growing number of concerts by local artists and the excellent and increasing attendance at most of them. Local musicians who gave solo recitals at the City Hall during the year included Chiu Yee-ha (piano), Renee Fung, Chiu Put- wai and Chan Chung-on (violin), and Irene Liao (soprano). A series of band concerts given at lunch-times and on the afternoons of public holidays also proved very popular.

A major part of the Fourteenth Annual Schools Music Festival, including the prize-winners' concerts, was presented at the City Hall to capacity audiences. Other local bodies which gave concerts at the City Hall included the Hong Kong Philharmonic Society, the Roman Catholic Cathedral Choir, the Hong Kong Oratorio Society and the Combined Christian Choir. The latter's perform- ances of Handel's Messiah with the Hong Kong Philharmonic Orchestra was conducted by Sir Thomas Armstrong, Principal of the Royal Academy of Music.

Several ballet groups visited Hong Kong during the year and gave performances at the City Hall. They included the Royal Ballet with Margot Fonteyn, the Bavarian National Costume Ballet, the Berliner Ballet, Luisillo and His Spanish Dance Theatre and the Alvin Ailey Dance Company. The year also gave popular music lovers the opportunity to enjoy the singing and playing of Frank Sinatra, Bobbie Vee, the Trio Los Panchos and Tito Puente, all of whom performed to most appreciative audiences.

In the field of drama both the City Hall theatre and the concert hall were frequently used by amateur dramatic societies. Those which gave public performances included the Hong Kong Stage Club (The Love of Four Colonels, The Rape of the Belt and Epitaph for George Dillon), the Garrison Players (Caesar and Cleopatra and Six Characters in Search of an Author), the

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Masquers (A Midsummer Night's Dream), the Hong Kong Singers (Chu Chin Chow and The Gondoliers), the Sino-British Club Dramatic Group (The Dream of Red Chamber in Cantonese), the Hong Kong Dramatic Club (The Song of Lee Kee, a traditional Chinese play in English), the Endeavourers (The Abyss in Cantonese) and the Wah Yan Dramatic Society (The Golden Comb, Cantonese opera sung in English). There were also many performances of Chinese opera by various groups. During a short visit to the Colony Michael Denison and Dulcie Gray gave two performances of Shaw's A Village Wooing and Sutro's A Marriage has been Arranged.

       Several films of opera and ballet were shown in the City Hall theatre, including Der Rosenkavalier, The Royal Ballet and The Bolshoi Ballet. Studio One, the Film Society of Hong Kong, also used the theatre for its regular monthly film shows.

In the field of fine art, now that permanent galleries and rooms are available, Hong Kong residents and visitors have an oppor- tunity of seeing in a central and convenient location continuous displays of local work. In addition, the opening of the City Hall art gallery brought for the first time a series of exhibitions of various kinds from overseas. Four exhibitions were held simul- taneously in the art gallery and museum to mark the opening of the City Hall. These were a selection of paintings of historic interest (from the Government Collections); examples of the sculpture of Barbara Hepworth (a British Council travelling exhibition); Cartoons by Hoffnung and 40 lithographs and etchings by British artists (from the St George's Gallery, London). These exhibitions remained on view for six weeks and were followed by an exhibition of Chinese painting by Chang Da-chien. In May there was an exhibition of work by local artists entitled Hong Kong Art Today and in August the first large-scale photographic exhibition from abroad, entitled The Camera Looks at London, was put on display.

Art gallery and museum presentations for the remainder of the year included a selection of 48 prints by British artists, with work by Graham Sutherland, Henry Moore and others, an exhibition of photographs of Hong Kong in the nineteenth century and an exhibition of stamps to mark the centenary of their issue in Hong Kong. At Christmas the large and spectacular Children's Art

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Exhibition organized annually in Britain by the Sunday Pictorial was displayed. Attendance figures for the exhibitions reached a daily average of approximately 1,500 and increased with each fresh exhibition. Through the art gallery eight paintings were sent to London as Hong Kong's contribution to the Commonwealth Art Today exhibition organized by the Commonwealth Institute. Apart from displays in the art gallery and museum there were continuous exhibitions by local groups, societies and artists- including photographic societies-in the two exhibition halls which are available for hire. Most exhibitions lasted from three to 10 days and all were well attended.

GOVERNMENT COLLECTIONS

The Government Collections of pictorial material consist of the Ho Tung Collection, the Chater Collection, and the Law and Sayer Collections. They contain more than 700 items including paintings, prints, engravings and photographs. They illustrate the growth and development of Hong Kong, and life in the Colony, Macau and the China Coast area during the eighteenth and nineteenth centuries. On the opening of the City Hall an exhibi- tion which included many of the paintings in the collections was arranged and an exhibition of old photographs of Hong Kong was shown later.

Arrangements are being made to transfer the Government's Henry Yeung Collection of Chinese Ceramics from the University, where it has been on display for some years pending the com- pletion of the City Hall. The collection comprises 166 pieces and consists of some fine grave pottery of the Han Dynasty, a series of early bronze mirrors, and outstanding pieces of Ming porcelain. The selection and acquisition of further items and collections for the City Hall art gallery and museum is now the responsibility of the Urban Council; the art gallery purchased 11 paintings during the year to add to its collection of works by local artists.

The Maglioni Collection of books and archaeological material was donated to the Government by the Roman Catholic Bishop of Hong Kong in 1954. Both the books and the archaeological collection are on loan to the University, where they are available to scholars and research students. The Kotewall Collection, also a gift to the Government, consists of nearly 15,000 volumes,

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      mainly in Chinese. The Hok Hoi Library of about 32,000 volumes of Chinese classical literature is on permanent loan to Government. Both the Kotewall Collection and the Hok Hoi Library are housed in the City Hall library, where they are available for consultation. The work of cataloguing them is in progress, but will take a considerable time to complete.

       The Colonial Secretariat library houses 9,099 volumes. These include many Government publications; books written especially about Hong Kong, including publications by local authors, refer- ence books on such subjects as public administration, sociology, economics and political science; and standard works on the history of the Commonwealth and of the countries of south-east Asia. Apart from being a departmental reference library, it is a useful source for research workers in matters concerning Hong Kong and is available to members of the public.

BRITISH COUNCIL

        The British Council continues to make a valuable contribution to the cultural life of Hong Kong. Following the opening of the City Hall in March it assisted in bringing to the Colony several artistes of international repute, and also arranged several exhibitions.

        Over 85,000 books were borrowed from the British Council libraries in Victoria and Kowloon during the year and the reading rooms, containing some 120 British periodicals, continued to be extremely well used. About 1,300 films on medical, nursing, scientific, technological and general subjects were borrowed, as well as music and speech records, film strips, tape recordings and small photographic exhibitions. Books and periodicals valued at $96,000 were presented to the libraries of the Colony's three post- secondary colleges. Amongst these were 120 microfilms of the Tunhuang manuscripts, which are in the British Museum in London. A member of the British Council staff in Thailand came to Hong Kong to assist the Chung Chi Conference on the Teaching of English, and the Head of the Department of English at Chung Chi College was assisted financially to represent Hong Kong at a similar conference which took place in Jesselton.

During the year six British Council scholarships were awarded, while four persons were assisted financially to go to Britain and

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programmes were arranged for them on arrival. The Council again held an 'Introduction to Britain' course for 150 Hong Kong students who were leaving for further study in Britain. As in previous years, members of the Council's staff assisted in the recommendation and selection of scholars to be sent to Britain under the auspices of the Sino-British Fellowship Trust, the Federa- tion of British Industries, the Commonwealth Scholarship Com- mission, and the Council's own scholarship scheme. A large number of inquiries were dealt with on matters connected with higher education in Britain and the Commonwealth and many other subjects, and the Council continued to maintain close rela- tions with Government departments, the University of Hong Kong and most of the cultural and higher educational institutions in the Colony. The Council's staff also served on various committees, notably the Government Advisory Committee on Library Services.

21

Sport and Recreation

THE year was memorable for sports enthusiasts. Colony repre- sentatives won two silver medals at the Asian Games in Djakarta; a number of internationally known footballers and cricketers were seen in action in Hong Kong; new records were made in athletics and leading badminton players excelled in the Asian Gold Cup competition in Kuala Lumpur. The silver medals were won by Miss Tsui Yuen-yuen, who was partnered by a Japanese player to reach the women's doubles tennis final, and by Misses Baguio Wong Bik-yiu and Fan Sin-kwan, who reached the table tennis final.

Most field sports in Hong Kong are played during the winter months when the weather is comparatively cool and dry, while in the summer the emphasis is on aquatic pastimes such as swimming, water skiing and boating. Association football is undoubtedly the Colony's most popular sport and in addition to regular local fixtures Hong Kong sides meet top class visiting teams each season. This year visitors included Japan, Peru, Korea, the British Army, Germany and Thailand. In the annual interport match at South China Stadium in November, Hong Kong Chinese regained the Ho Ho Cup by defeating the Malayan Chinese 3-0. The following day the Combined Chinese beat the Malayans 2-0 in a friendly game. In recent years the sport has suffered from the activities of illegal bookmakers who are believed to have influenced the results of some games, but the Hong Kong Football Association has readily co-operated with the police to combat these abuses and it is hoped that eventually they will be stamped out. At the Associa- tion's annual meeting in September the President, Dr the Hon A. M. Rodrigues, said that the participation of 20 teams in the youth league compared with eight the previous season, was a very encouraging sign.

The Rugby football season started with a visit from the Paris University touring team, who were held to a draw in a good game. The Hong Kong Rugby Football Club continued to dominate the

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scene in early matches, but as the season progressed the arrival of talented new players for the police and army sides, stiffened competition. Each year brings a number of international fixtures; one of the most popular being the annual visit of Singapore Services who invariably field a strong side. This year the Far East Fleet also produced strong teams in a series of friendly matches. The highlight of the 1962 cricket season was the visit in March of a Commonwealth team captained by Richie Benaud, Australia's Test skipper. The team, which included Everton Weekes, Tom Graveney, Sonny Ramadhin, Ian Meckiff and Neil Adcock, played three one-day matches against Colony sides, creating considerable interest and drawing capacity crowds. Throughout the season competition in league games was keen and high standards were maintained. Several promising young players were seen for the first time.

Bigger crowds than ever attended the races at Happy Valley and the Royal Hong Kong Jockey Club's 1961-2 season saw new records for both gate receipts and totalizator returns. On three occasions the amount invested on an ordinary race was more than one million dollars, thus exceeding the record stakes invested on the totalizator at Epsom for the Derby. The stewards carry out improvements for each new season, the latest including installation of a more robust type of starting gate, imported from Australia, and the banking of the final turn leading into the home straight.

       Golf continues to attract many new players and all clubs have long waiting lists. The Hong Kong Open Championship, held in March, again proved the year's most popular event with several thousand spectators witnessing an exciting tournament between leading professionals from 13 countries. The winner was an Australia, Len Woodward, who thus followed in the footsteps of his countrymen, Peter Thomson and Kel Nagle.

During the 1962 season of the Hong Kong Lawn Bowls Associa- tion, 15 clubs entered 28 teams in the three men's divisions and 13 in the Ladies League. The First Division of the Men's League was won by the Club de Recreio (Blue), while the Second Division was a runaway victory for the Filipino Club (Blue). Kowloon Cricket Club won the First Division of the Ladies League. Miss Helen Kwong, of Craigengower Cricket Club, won the Ladies Singles trophy for the third time and proved herself the outstanding

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lady bowler of the year by winning all three open competitions. Eight players were selected to represent the Association at the Empire and Commonwealth Games in Perth in November.

       Two athletes, Ken Peters and P. M. Field, were chosen to represent Hong Kong at the Empire and Commonwealth Games. At the Hong Kong Amateur Athletic Association's open champion- ships in March, Peters set new records for the 400 metres, 200 metres and the 400 metres medium hurdles. A school teacher, Miss Ng Shuit-kwai, was the woman athlete of the year for the fifth time.

In tennis the established players, Ip Koon-hung, Edwin Tsai and Tsui Wai-pui, continued to dominate Colony championships. Ip won the grass court singles title for the fourth year in succession and the thirteenth time in the last 16 years. During the year New Zealand, Philippine and Indian Davis Cup players appeared in exhibition matches before large crowds.

The annual walkathon organized in July by the Standard - Sing Tao group of newspapers was won by So Kam-tong, a 25-year-old park attendant employed by the Urban Services Department. So covered the 40 miles in six hours 45 minutes and 53 seconds, finishing 12 minutes and 13 seconds ahead of Tam King-tim. The winner of the ladies' section was Miss Tse Suk-king, a 16-year-old student from the Eastern Government Hospital School, who finished in nine hours nine minutes and 10 seconds. Out of a field of 490, 118 men and five women completed the course.

       Six new records were established in Colony swimming champion- ships. In the annual cross-harbour race the six-time winner, Wan Shiu-ming, was defeated by Ng Key-kwong. Juliet Sheldon, of St George's School, finished first in the ladies section for the second year in succession.

There are several hundred keen yachtsmen in Hong Kong and the inauguration of a China Sea Race from Hong Kong to Manila in April caused considerable interest. Three Hong Kong yachts took part and one of these-Reverie-was the winner. Other competitors were from Japan and the Philippines. In recent years there has been an increased interest in boxing and at the eighth Colony championships organized by the Hong Kong Amateur Boxing Association every seat was sold out and every vantage point on surrounding rooftops was filled. Interest in badminton

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continued and Colony representatives reached the quarter-finals at the Asian Badminton Confederation's Asian Gold Cup tournament in Kuala Lumpur. Many new players are coming into the sport and Hong Kong's prospects appear good, especially in the women's section. The Hong Kong open championships are now recognized by the International Badminton Federation.

At the Hong Kong Bisley annual rifle meeting, Lance Corporal Peter Rull of the Hong Kong Regiment won the Governor's Shield for the best rifle shot for the third year in succession.

PARKS, PLAYGROUNDS AND OTHER AMENITIES

The management of parks and other public amenities in the urban areas is one of the responsibilities of the Urban Council, working through the Urban Services Department. These amenities include 11 beaches on Hong Kong Island and one at Lai Chi Kok on the mainland, as well as parks, rest gardens, children's play- grounds and vantage points. Apart from developing these natural attractions, the Urban Council devotes much attention to creating additional playgrounds and gardens and to improving city ameni- ties in general.

       The bathing beaches were increasingly popular during the summer months. For the safety of the public, 80 full-time beach attendants (formerly known as life guards) were on duty from April to October at the 12 public beaches in the urban areas. Department staff also cleaned the beaches, maintained latrines and first aid posts, and supervised facilities provided on a contractual basis such as changing tents and refreshment stalls. At certain beaches a limited number of new sites for bathing huts were leased to private individuals for five years, while existing huts were let by ballot for a period of one year. A beach building consisting of an office, first aid post, storeroom and refreshment kiosk, together with separate latrines, is under construction at Deep Water Bay beach. The department also has 50 fully-trained attendants at 17 beaches in the New Territories, and at seven of these con- tractors provided tents, changing rooms and other facilities. A ballot again took place for the right to use 53 beach huts on a yearly basis.

       The shortage of land in the Colony's built-up areas means that the development of parks and playgrounds can only take place in

*

**

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keen competition with other forms of development. Before the war, playgrounds were few; after the war, possible sites were dusty uneven pieces of land which soon became occupied by squatters. Despite these difficulties old playgrounds have been improved and new ones laid out, and apart from large parks and formal play- grounds a great deal has been done to improve the appearance of the city by tidying up small derelict roadside areas and, where possible, turfing and planting them with shrubs and trees. During the year, 17 new areas were developed, covering over 16 acres.

       In the urban areas there are now 231 acres of parks, public playgrounds and rest gardens (including the Botanic Gardens and Victoria Park), providing 10 association football, six miniature football, two hockey, one rugby football and three cricket pitches, all grass covered, and 13 all-weather tennis courts, 47 basketball, 14 volleyball and 22 miniature football grounds. Of the 119 public playgrounds and rest gardens, 32 have provision for ball games. The Botanic Gardens attract large numbers of visitors, particularly at Chinese festivals, week-ends and public holidays. The development and administration of parks and play- grounds in the New Territories and on outlying islands are also a growing responsibility of the Urban Services Department and three new projects were completed during the year.

Improvements to Victoria Park included a floodlit exhibition tennis court, terracing of an artificial mound, a bandstand and two bowling greens. Libraries were constructed at the Ma Tau Wei service reservoir playground and the Lei Cheng Uk public play- ground. They are staffed and equipped by the Boys' and Girls' Associations. A second public swimming pool, now under con- struction at Kowloon Tsai Park, will be opened to the public in 1963. Work on developing the remaining park areas is in progress. The Hong Kong Stadium, operated by the Hong Kong Football Association Ltd, was used during the year for football matches, athletic meetings, rallies, rehearsals, training sessions and parades by the police, the Royal Hong Kong Defence Force and Civil Aid Services. The Boundary Street Sports Ground in Kowloon was frequently used by schools for athletic training and meetings. On other Council-controlled playgrounds, Kaifong Associations organized performances of Chinese opera in aid of charities and

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at Chinese New Year the annual fair was held on the hard-surfaced games area in Victoria Park.

       By arrangement with the bands of the police, the military regiments stationed in Hong Kong, the St John Ambulance Brigade and other local organizations, regular concerts were held in public parks and playgrounds in the urban areas. The model boating pool in Victoria Park is very popular and a similar pond has been completed in the Fa Hui Park in Kowloon. The Victoria Park swimming pool, built to Olympic standards, is very popular, especially with children. Admission fees are very reasonable and special arrangements can be made for groups of school children and children sponsored by welfare agencies. The total number of persons who used the pool in 1962 was 303,906 (156,545 children and 147,361 adults).

       The department is also responsible for the development and maintenance of gardens and places of public recreation, for the tending of trees and ornamental gardens in public places in the urban areas, and for the clearance of undergrowth at road junctions to improve traffic visibility. It also provides vantage points from which the scenery can be enjoyed.

The botanical branch of the gardens section of the department continued to take care of, and to add to, the collection in the Government Herbarium started 120 years ago. It also kept in touch with institutions abroad and dealt with phytosanitary control of live plants and plant produce leaving the Colony.

        In addition to the two existing places of cultural and historical interest (the Sung Wong Toi Garden and the Lei Cheng Uk Tomb and Garden), a new rest garden was formed at Lomond Road on the probable site of an ancient Chinese temple and palace, dating from the Sung dynasty. After World War II, the temple was found in ruins with only the stone gateway remaining intact. To preserve the gateway, this garden was laid out together with a commemora- tive inscription.

Part III

22

Geography

THIS chapter, and those which follow on the history of the Colony and its system of government, present a background picture against which the detailed descriptions in other chapters of the Report may be viewed.

GEOGRAPHICAL SETTING

      The Colony of Hong Kong is on the south-east coast of China, adjoining the province of Kwangtung. It is just inside the tropics, being less than 100 miles south of the tropic of Cancer, and lies between latitudes 22°9′ and 22°37′N and longitudes 113°52′ and 114°30′E. The twin cities of Victoria on Hong Kong Island and Kowloon on the mainland stand on either side of the harbour, and are about 90 miles south-east of Canton and 40 miles east of Portuguese Macau. The jet age has brought the Colony to within little more than 24 hours of Britain, while the shortest air route across Eurasia between London and Hong Kong is 5,965 miles.

      The total land area of the Colony is 398 square miles, made up as follows:

(a) Hong Kong Island, including a number of small adjacent

islets: 29 square miles

(b) Kowloon and Stonecutters Island: 32 square miles

(c) The New Territories, which consist of a substantial section of the mainland and over 230 islands: 365 square miles.

TOPOGRAPHY AND GEOLOGY

Hong Kong is part of a series of intruded domes of granitic rocks which cover south-east China. There are only small areas of sedimentary rocks in the Colony. The age relationships of the major groups of rocks are associated with the intrusions and mountain building of the Jurasside, Laramide and Alpine revolu- tions. These intrusions made the conditions favourable for the formation of minerals of some importance. Galena, silver, wolf- ramite, molybdenite, pyrite, magnetite, hematite, cassiterite, gold,

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sphalerite, graphite, fluorspar, quartz, beryl, felspar and kaolinite have all been found. The general structure of the region is that of a plunging monocline which strikes north-east to south-west and is parallel in trend with the China coast. Its axis passes almost exactly through the centre of Hong Kong and is marked by a depression which is the Tolo Channel. The area consists of many rugged and irregular islands with deeply dissected peninsulas. The general appearance is that of an upland terrain which the sea has invaded. The uplands and mountains are eroded remnants of rock formations. Weathering is almost entirely caused by chemical action, helped by the alternation of wet and dry seasons. As a result decay to a laterised rock mantle is common, often to depths of more than 100 feet.

The highest peaks and the most prominent ranges of hills are composed of either porphyries or volcanics. These are in contrast to the granite hills which generally occur at lower elevations but have well-etched peaks and sharp ridge lines. The plains are all recent alluvial deposits. Erosion benches can be found marking former sea levels up to 400 feet or more, which demonstrate the rise and fall of the whole region within recent geological times. Borings in the harbour have revealed submerged weathered rock surfaces overlain by peat deposits. The highest peaks, such as Lantau, Sunset and Tai Mo Shan, are all about 3,000 feet high and are composed of resistant, fine-grained crystalline rocks. By contrast the Kowloon Hills are composed of coarse-grained granite and have lower elevations, varying from 800 to 1,200 feet. The age of this granite has recently been determined by the Rubidium- Strontium method as approximately 134 million years. Thus it belongs to the Upper Jurassic (Portlandian) period.

Only the soil of the flat agricultural alluvial districts around Yuen Long in the Deep Bay area has any depth. Elsewhere in the Colony the soil cover is usually thin, sometimes no more than two or three inches. In general the natural residual soils are acid and of low fertility, needing the addition of lime, potash and superphosphates. The predominating crystalline character of the rock formations makes them unsuitable as aquifers for under- ground storage and this makes it necessary to concentrate on the collection of surface water for water supplies. The highly variable and erratic rainfall régime of the area alone accounts for many

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of the water shortages. In 1938, for instance, the total rainfall was only 55 inches, compared with the yearly average of 85 inches. In order to husband and conserve water reserves to meet the demands both of an ever increasing population and of agri- culture and industry, it has been necessary to apply restrictions during dry seasons for some part of every year since 1934. A vast building scheme to construct more reservoirs over the next few years (see chapter 14) is still unlikely to provide a constant water supply in the face of the rapidly increasing population and the expansion of industry.

VEGETATION

      Hong Kong lies in the frost-free double cropping rice zone of east Asia. While rice remains the major crop of the New Territo- ries by area, its production and value otherwise are surpassed by market garden cropping. Where there is adequate water two crops of rice are grown each year. The first crop is sown into the nurseries in early March, transplanted in April and harvested in June and July. Second crop seedlings are nursed in June for planting out by the end of July and the crop is harvested during October and early November.

      Market garden cropping, including the cultivation of cut-flowers for the urban and suburban markets, is becoming increasingly important. Vegetables are grown throughout the year, but most particularly during the cooler months which form the main vegetable season. Production is very intensive and in certain areas as many as eight crops a year are grown. The upland areas, which are predominantly grass covered and in several places severely eroded, tend to have highly leached acid soils. Land utilization of these areas is principally through afforestation, which has been vigorously pursued since 1945.

POPULATION

      More than 98 per cent of the population is Chinese. The census taken in 1931 showed the population to be 849,751. In 1941 a count of heads for air raid precaution purposes put the figure at about 1,600,000. On the re-occupation of the Colony in 1945 the Japanese-sponsored Hong Kong News estimated the population at 650,000. The most recent census, taken in March 1961, showed

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the total population to be 3,133,131, of whom 1,610,650 were male and 1,522,481 female.

The bulk of the population comes from the neighbouring Chinese province of Kwangtung. It consists of Cantonese, easily the largest group, followed by Hakka, Hoklo and Tanka. Since 1949 many have come from other parts of China, especially the coastal provinces. Not all of Hong Kong's phenomenal increase is due to immigrant population; the natural annual increase of officially registered births over deaths is close to 100,000. The greatest concentration of people (a little over 70 per cent) live around the coastal fringes of the harbour, where the population pressure strikes the visitor most forcibly. The birth rate in Hong Kong is about 3.5 per cent. This is much higher than that of most European industrial countries, where the rate is about two per cent, and indicates the Chinese custom of having large families.

CLIMATE

      The climate of Hong Kong is governed by the monsoons, and although the Colony lies within the tropics it enjoys a variety of weather from season to season unusual for tropical countries. The winter monsoon blows from the north or north-east and normally begins during September. It prevails from October until mid- March, but can occur as late as May. Early winter is the most pleasant time of the year, when the weather is generally dry and sunny with mean daily temperatures about 70°F to 75°F; this is the most popular time of the year with tourists. After the New Year the sky is more often clouded, though rainfall remains slight; frequently the days are overcast and dull with chilly winds. Coastal fogs occur from time to time in early spring during breaks in the monsoon-when warm south-easterly winds may temporarily displace the cool north-easterlies.

        The summer monsoon blows from the south or south-west and although it can occur from mid-April until September it is not as persistent as the north-east monsoon of winter. During this part of the year the weather is almost continuously hot and humid, and is often cloudy and showery with occasional thunderstorms. Summer is the rainy season. The annual rainfall, as measured at the Royal Observatory, has varied between 46 inches and 120 inches, but the normal value is 85 inches. On average the five

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dry months from November to March yield only nine inches as compared with 76 inches spread over the other seven months. There is also considerable variation in rainfall over different parts of the Colony. The wettest areas are the mountain regions, particularly around Tai Mo Shan and on Lantau Island. Least rainfall occurs on the smaller islands, which usually receive little more than half the rainfall of the wettest areas.

The mean daily temperature ranges from about 58°F in February to over 82°F in July and the average for the year is 72°F. During the hottest month, July, the mean maximum temper- ature is 86.9°F, but the summer temperature often exceeds 90°F. February is the coldest month with a mean minimum temperature of 55.6°F, but the temperature can be expected to fall to 45°F in most years. Temperatures above 95°F or below 40°F are rarely recorded at the Observatory although greater extremes occur in the New Territories. Ice occasionally forms on high ground. Afternoon temperatures are usually 8°F to 9°F higher than during the coldest part of the night. The mean relative humidity exceeds 80 per cent from mid-February until early September. November is the least humid month with 69 per cent relative humidity, but the lowest reading of 10 per cent was recorded in January. The average daily duration of bright sunshine ranges from three hours in March to over seven hours in mid-July and late October.

Gales caused by tropical cyclones may be expected in any of the months from May to November, but they are most likely from July to September. The passage of these cyclones several times a year at varying distances from Hong Kong brings spells of bad weather with strong winds and heavy rain. Gales are experienced once a year on average, and less frequently the centre of a mature typhoon passes sufficiently close to the Colony to produce winds of hurricane force when damage and loss of life may occur. The last occasion when such winds were experienced was in September 1962 when the centre of typhoon Wanda passed over the southern part of the Colony.

23

Natural History

HONG KONG's small land area means that the nature lover need never be far from the countryside. On Hong Kong Island a drive of 30 minutes or less is sufficient to reach the Tai Tam Reservoir catchment area where there are many miles of interesting walks, or the hills above Shek O where every crest commands a sweeping view. In the New Territories there are many areas less than an hour's drive from Kowloon containing wide varieties of tropical flora and tropical or sub-tropical fauna. The islands, most of which can be reached by ferry, also contain much of interest to the naturalist, while the waters which surround them abound in marine life.

Mammals. Partly due to the post-war development of Hong Kong and partly to the rapid expansion of the population several species of the Colony's wild mammals are, unfortunately, continu- ally decreasing in numbers. Among the mammals which have long been extremely rare are the South China Tiger, Leopard, Dhole or Indian Wild Dog, South China Red Fox, Crab-eating Mongoose, and Large Chinese Civet. It is probable that most, if not all, of these animals have now finally disappeared from the Colony. The last undoubted visit of a large feline to Hong Kong from southern China was in 1957, when a leopard which had been seen in the New Territories killed a number of domestic animals. Others, which from lack of recent records must now be regarded as rare, are the small Chinese Leopard Cat and the primitive Chinese Pangolin or Scaly Ant-eater. It is unfortunate that several species (e.g., certain civets, wild cats, deer, pangolins and porcupines) are locally valued as food or for medicinal

purposes.

Monkeys may still be found in small numbers, with very localized distribution. Those which in recent years inhabited the Tai Tam area of Hong Kong Island are not known to have been seen during 1962, although the monkeys living in the woods in

Hong Kong contains a wide variety of tropical flora, and because of the Colony's geographical position a genus normally tends to produce a greater wealth of flowers than in other equatorial countries. Framing Victoria city and the Peak (above) is Bauhinia variegata. The Botanic Gardens contain a wide variety of beautiful flowers, including Phlox (below).

Some of Hong Kong's flowering plants and flowers are easy to place in their correct families, but most are more difficult to name. Two that can be seen in the Botanic Gardens are Purple Flowered Azalea (above and shown in close-up at left) and Calendula (right). Many of the Colony's

flowering plants are

exceptional for their beauty or fragrance.

The beautiful Cassia nodosa (above) is, by its size at least, one of the most impressive examples of the Colony's flora. Six species of Rhododen- dron grow wild and of these the red variety (below), shown with the tower of Government House in the background, is extremely abundant. In the foreground is Chrysanthemum frutescens.

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the Kowloon Reservoir area were reported seen at the beginning of the year and again in September. All of these may be descend- ants of released or escaped specimens and it is possible that those in the Tai Tam area are survivors of the indigenous Rhesus Monkeys which less than a hundred years ago inhabited most of the small islands about Hong Kong. Another indigenous mammal is the little Chinese Ferret-Badger, seldom seen on account of its shy nocturnal habits, which lives in the Peak district on Hong Kong Island and in other suitable localities. The Eastern Chinese Otter has been seen rarely in recent years. Two species of civets still to be found in the Colony are the Rasse or Small Indian Civet and the Masked Palm Civet; both are shy nocturnal creatures and good climbers, feeding on small animals and fruit.

       The attractive little Barking Deer, known also as Reeves' Muntjac, inhabits various hilly wooded localities on Hong Kong Island. Being largely nocturnal it is seldom seen, although its characteristic bark is familiar to many residents of the Peak. It is a small deer, about the size of a large dog; males have simple antlers, and their canines are developed as short curved tusks. In the New Territories, where it has been hunted, this animal has now become scarce. The Wild Boar, which has also been hunted for many years, now occurs only in very small numbers in certain parts of the New Territories.

      Rodents deserving special mention are the Chinese or Crestless Himalayan Porcupine, found both on Hong Kong Island and in the New Territories, the Smaller Bandicoot Rat, and a pretty little animal called the Eastern Spiny-haired Rat which is bright yellowish-brown above and pure white on the belly. All three are entirely 'wild' (non-domestic) species. Others among the Colony's small mammals are the House Shrew, and several species of insectivorous and frugivorous bats.

       Cetaceans so far recorded in Hong Kong waters or nearby are the Common Dolphin, the Black Finless Porpoise, and the Common Rorqual or Finback Whale (there has been a single record of the latter during 1955). The name Black Finless Porpoise is misleading because these animals are a steel-grey colour in life, becoming entirely black only after death.

      Birds. A wide variety of birds, represented by well over 300 species, have been identified in Hong Kong. Consequently, there

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is much to interest ornithologists and bird watchers, and oppor- tunity exists for a great deal more work on subjects such as breeding and feeding habits, various other aspects of ecology, and on migration. The birds of Hong Kong include both palaearctic and oriental species, some of the families represented being those containing the crows, babblers, bulbuls, thrushes, redstarts, flycatchers, minivets, drongos, warblers, starlings, munias, finches, buntings, swallows, wagtails, cuckoos, kingfishers, owls, eagles, pigeons, rails, gulls, terns, plovers, sandpipers, herons, ducks and grebes. Two birds recorded in the Colony for the first time in 1962 were the Chinese Pitta and the Large Chinese Cuckoo-shrike. Other very rare birds seen during 1962 included the Crimson Legged Crake, the Malay Brown Hawk-Owl, the Siberian Thrush, the Orange-headed Ground Thrush, the Black Stork and the Imperial Eagle.

Reptiles and Amphibians. Snakes, lizards and frogs are all well represented in Hong Kong. There are also various species of terrapins and turtles, the Common Indian Toad, and the Hong Kong Newt. There is a strong Indian element in this section of the local fauna, but several species are so far known only in Hong Kong. Most of the commonly encountered snakes are harmless and death from snake-bite is extremely rare. Apart from certain rear-fanged species, not dangerous to man, the venomous land snakes are the Banded Krait, the Many-banded Krait, Macclelland's Coral Snake, the Chinese Cobra, the Hamadryad (King Cobra), and the White-lipped Pit Viper (commonly called 'Bamboo Snake'). The four species of sea snakes found in the waters around Hong Kong are all venomous, but fortunately it is not the nature of these reptiles to attack bathers. Worthy of special note for 1962 was the occurrence of two more specimens of the Common Water-monitor, one of the world's largest species of lizard which sometimes grows to eight feet in length. The first and only other specimen recorded in the Colony was found at Fanling in July 1961.

Invertebrates. The most attractive and widely appreciated insects are the butterflies, of which almost 200 species belonging to nine families, have been found in Hong Kong. The beautiful and predominantly tropical butterflies, popularly known as 'swallow-tails', are conspicuous during country walks. Of the

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innumerable moths, two deserve special mention on account of their large size and attractive colouring. One, the magnificent Atlas Moth, has a wing-span of from seven to nine inches, and is one of the largest moths in the world. The other is the Moon Moth, soft silvery green in colour, with a wing-span of from four to six inches and swallow-tailed wings.

Particularly characteristic of Hong Kong in spring and summer are the several species of cicadas, well-known in their brief adult stage for the incessant song of the males. In their immature nymphal stage very little is known about these remarkable insects, which spend years below the surface of the ground. A spectacu- larly large insect living in ponds is the Giant Water Bug, over three inches in length, which feeds on small fish, frogs and other aquatic creatures. In the summer they fly readily from one piece of water to another and during such migrations are sometimes seen after alighting on or falling to the ground. An interesting crustacean not previously known in the Colony is the giant Coco- nut Crab or Robber Crab, two specimens of which were found during 1962. Having a body one foot in length, this huge creature is a relative of the Hermit Crab.

       Marine Fauna. The fish of Hong Kong are of extraordinary diversity and hundreds of different species pass through the markets. Situated just south of the Tropic of Cancer and flanked to the west by the Pearl River, which brings down enormous quantities of food and nutrients from China, the waters of the Colony support a great variety of both tropical and temperate water fishes, many of which give rise to major fisheries on their seasonal breeding or feeding migrations. In the summer months during recent years large sharks and manta rays have been particularly abundant and have on occasion caused both welcome and unwelcome excitement among fishermen, swimmers and yachtsmen. Infrequent incursions of oceanic water from the south bring with them during the summer such varieties as flying fish and the beautiful but deadly Portuguese Man O' War, with its striking purple and red float and long stinging tentacles. The invertebrate fauna of the Colony are as diverse in form and colour as the fish. Hidden from sight to all except divers is a profusion of corals, sea-fans, sea-lilies and many other beautiful marine animals.

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Flora. It is not possible to make any distinction between the trees of Hong Kong and those of neighbouring southern China. The principal trees in the Colony are pine, Chinese banyan and camphor. A large number of others have been added since the area came under British administration, the most common being casuarina, eucalyptus and Flamboyant. The traditional Chinese belief ('fung shui') that the disposition of buildings, graves, trees, water and mountains may affect a person's fortune and destiny, has done much to preserve fine groves of trees, mostly camphor, banyans and clumps of bamboo, around many farms and villages in the New Territories. Some of the mountain slopes, from a distance, seem bare of any plant covering except grass, but on closer observation it can be seen that the water courses are marked by narrow bands of low shrubby growth and scattered trees.

      The principal locally-grown fruits include lychee, lung ngan, wong pei, loquat, pomelo, tangerine, banana, papaya, pineapple, custard apple, guava and Chinese varieties of plum and pear. The Portuguese originally introduced the papaya, the pineapple, the custard apple and the guava from South America some time after the foundation of Macau. The tangerine is a native of South China and was introduced to the west in the seventeenth century when the Portuguese transplanted it to Tangier, then under their control.

      The flora of Hong Kong Island has been fully, though not completely, described in G. B. Bentham's Flora Hongkongensis, published in 1861, and in Flora of Kwangtung and Hong Kong by S. T. Dunn and W. J. Tutcher, 1912. Less comprehensive works include a small book, remarkable for its excellent drawings, by L. Gibbs, entitled Common Hong Kong Ferns; an illustrated but unfinished series, The Flowering Plants of Hong Kong by A. H. Crook; Plants of Lan Tau Island by F. A. McClure, which appeared in the Lingnan University Science Bulletin series for 1931; Familiar Wild Flowers of Hongkong illustrated with photo- graphs by V. H. C. Jarrett, published in 1937; and many papers published in The Hong Kong Naturalist. Since the war three official publications have appeared in the series Food and Flowers containing, amongst other information, articles on some of the more conspicuous wild plants of the Colony.

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The flora of the Colony is tropical, although at about the northern limit of tropical flora. Alternation between hot humid summers and cool dry winters causes tropical plants to lie dormant during winter and encourages the development of large flowers borne at definite seasons of the year. As a result of this a genus tends to produce a greater wealth of flowers of large size in Hong Kong than it does in other equatorial countries.

Hong Kong is famous for its great variety of flowering plants, many of which are exceptional for the beauty or fragrance of their blossoms. As might be expected most species flower during spring and early summer. Some are easy to place in their correct families-for example, the common wild Gordonia looks like, and is related to, the camellia, and the wild roses are unmistakably roses. But most are not so easy to name. They include a Magnolia, a Michelia with large white flowers, a Rhodoleia with groups of rose-madder coloured petals surrounded by golden bracts, an Illicium with cherry pink flowers and star-shape fruits, and a Tutcheria with large camellia-like flowers, white tinged with gold bearing masses of tangerine orange stamens. This latter is a tall tree with glossy foliage, described as a distinct genus in 1908 in honour of W. J. Tutcher, former Superintendent of the then Botanical and Forestry Department. A local Styrax with fragrant flowers is reminiscent of the Halesia, the American snowdrop tree. Six species of Rhododendron grow wild in the Colony. Of these the red one is extremely abundant, while another with large pale pink flowers is so rare that it is known to exist only on one shoulder of Victoria Peak. The heather family is represented by a very lovely Enkianthus which bears beautiful pink bells in early spring at the time of the Chinese New Year. Flowering at the same time is a Litsea with small creamy white and exceedingly fragrant flowers borne in profusion on leafless branches.

       The Bauhinia blakeana, named after a former Governor, Sir Henry Blake, and discovered in 1908 by the Fathers of the French Foreign Missions at Pok Fu Lam, is among the finest of the Bauhinia genus anywhere in the world. Its origin is unknown and it is a sterile hybrid, never producing seed. Another related species is Bauhinia glauca, climbing by means of tendrils, with bunches of pink flowers of sufficient beauty to merit cultivation as a covering for trellises and porches.

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      There are several species of Camellia growing wild on the island and the mainland. All but one have white flowers; the one with red flowers is known only on Hong Kong Island and grows in the Peak district. It is Camellia hongkongensis, a small tree up to 40 feet in height which comes into flower in November and continues until the middle of March. A new and distinct Camellia was discovered in 1955 and named Camellia grantham- iana in honour of the then Governor, Sir Alexander Grantham. Only one tree has so far been found, on the edge of a wooded ravine near the Jubilee Reservoir, bearing handsome white flowers 5 inches across, with a dense cluster of golden stamens in the

centre.

      Many local shrubs and a few herbs have very beautiful fruits in striking colours. The Ardisia, the Chloranthus and several wild hollies have brilliant red berries. The large orange-like fruits of Melodinus, the smaller fruits of Strychnos, the wild kamquat and the winged fruits of the Gardenia are orange in colour. Numerous yellow fruits with elusive names abound the hillsides, one of which is the Maesa. There are many inconspicuous green fruits and berries, one of which is the Mussaenda or Buddha's Lamp. Many berries are black with a bluish waxy cuticle, but probably the only true blue is that of the Dichroa, a well-known medicinal plant. Several species of Callicarpa and Dianella bear purplish fruits, while those of the Raphiolepis (the so-called Hong Kong Hawthorn), the wild jasmine and the wild persimmon are black. The remarkable star-like fruit of the Sterculia turns crimson in late summer and splits open to disclose jet black seeds. At a distance, these open fruits look like large red flowers.

      There are several very poisonous plants which should be better known to the general public. These include two species of Strychnos which have very brightly coloured fruits resembling small oranges, a species of Strophanthus which has conspicuous fruits unmistakable because of their large size and horn-like shape, and a species of Gelsemium which is the most poisonous of local plants. The latter is a climber with dense terminal clusters of yellow flowers each about half an inch in diameter, blooming towards the end of the year. All parts of the plant contain the alkaloid gelsemidine, which is a spinal poison. It is said that as little as 12 grams of leaf constitute a fatal dose and that death

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follows within a few hours. It is sometimes used by country people to commit suicide. Wild edible fruits include a wild jack- fruit (Artocarpus), the fruit of the rose-myrtle, wild bananas and raspberries. Several species of persimmon are wild, but their fruits are too astringent to be eaten raw.

     There are numerous plants which closely resemble their European relatives. Old Man's Beard, the common Clematis of English hedgerows, has five close relatives in Hong Kong. There are four wild violets but they are scentless, like the English dog violet. The English honeysuckle has five relatives whose Cantonese name is 'kam ngan fa' (gold and silver flower) because of their change in colour from white to yellow.

More than 70 species of native orchids are recorded in the flora. Most of the epiphytic species possess small flowers which are not of particular interest to the horticulturist. Some of the ground orchids are very beautiful and have long been cultivated in other countries. Probably the best known of the local species is the Nun orchid, bearing flowers four inches across with white petals and a purple lip. Other noteworthy species are the white Susanna orchid, the yellow Buttercup orchid, the pink Bamboo orchid and the purple Lady's Slipper orchid.

There is a fine wild iris, Iris speculatrix, further south than any other true iris. Its violet flower, from two and a half to three inches in diameter, is tinged with bright orange, and blooms from the middle of March to the end of April. A wild lily, Lilium brownii, appears in June with its trumpet flowers up to seven inches in length, white and sometimes purple-streaked. A wild Crinum with long sword-like leaves and bunches of white flowers is found by the sea, and also the Belamcanda, one of the iris family, with red-dotted orange-yellow flowers. Platycodon, the Chinese Bell-flower, is very widely distributed in eastern Asia, being abundant as far north as Manchuria and as far south as Hong Kong. This lovely violet giant harebell is common on grassy slopes on the south side of Hong Kong Island. It is a perennial plant with thick fleshy root stock valued for medicinal purposes and was introduced into cultivation in England as far back as the seventeenth century.

In damp ravines may be found the Chirita, several begonias, a fragrant-leaved rush, stag's horn mosses, giant aroids, tree-ferns

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      and countless kinds of smaller ferns, including maidenhair and the local Royal ferns. On hillsides, English bracken, a cosmopolitan plant, may be seen growing together with the so-called Hong Kong Bracken, a Gleichenia, and a fragrant-leaved myrtle called Baeckea. Other species recorded in recent years are Stuartia villosa, Ormosia indurata and Eryngium foetidum, found on Tai Mo Shan, Hong Kong Island and Lantau Island respectively.

       Botanical Collections. The Colonial Herbarium, which provided the foundation for the work of Dunn and Tutcher's Flora of Kwangtung and Hong Kong, has been added to considerably since that book was produced. At present over 29,000 specimens are preserved, and members of the public who wish to find out the names of native plants are encouraged to consult the herbarium, which is in the 'Parks and Playgrounds' section of the Urban Services Department.

        Societies. In addition to the Colonial Herbarium, interest in flora and horticulture in Hong Kong is fostered by the Hong Kong Natural History Society and the Hong Kong Horticultural Society. The Hong Kong Natural History Society was founded in 1949 as the Hong Kong Biological Circle, and aims to '. . . . facilitate and encourage the study of natural history, particularly in respect of the Colony of Hong Kong.' The Hong Kong Bird Watching Society was founded in 1957 for the study of local bird life. The society was again active during 1962 and published a further report (The Hong Kong Bird Report 1961) on its many activities.

         In the animal enclosures and aviaries of the Botanic Gardens may be seen a few of the Colony's native mammals and birds, besides certain others not indigenous to Hong Kong.

Protection of Fauna and Flora. The Wild Birds and Wild Mammals Protection Ordinance, 1954, provides for the conserva- tion of all wild birds and several of the rarer mammals, except for vermin. It also prohibits the trapping or poisoning of vermin (excluding rodents). In the case of game birds, these may be shot only in season. There are eight wild life sanctuaries, one of which is the whole of Hong Kong Island. By regulations made under the Forestry Ordinance, protection is also given to certain plants, as for example the camellias, magnolias, orchids and azaleas.

24

History

Hong Kong-a barren island with hardly a house upon iť

Lord Palmerston 1841

ANTECEDENTS

ARCHAEOLOGICAL investigation has shown that Hong Kong was inhabited from primitive times, but it has failed to reveal evidence of the existence of any previous centre of population. All that it would be safe to conclude is that in the early migration of peoples along the Pacific coast, an island with a plentiful water supply and some cultivable land would naturally attract permanent or temporary settlement. Up to the nineteenth century Hong Kong remained sparsely populated. Small villages maintained themselves by fishing, by cultivation of the scanty soil available, and by casual preying on coastal shipping. The fishing ports of Shau Kei Wan and Shek Pai Wan (Aberdeen) were noted as the haunts of pirates from the time of the Mongol Dynasty.

      The Kwangtung area of what is now the Chinese mainland was first brought under the suzerainty of China between 221 and 214 BC, but even after its conquest by the Han Emperor Wu Ti in 111 BC, it remained for some centuries a frontier area. The Lei Cheng Uk Tomb, which was discovered in Kowloon in 1955, probably dates from before the T'ang Dynasty (620-907) and is evidence of Chinese penetration, although Chinese migration on a large scale did not come until the Sung Dynasty (960-1279). The oldest villages in the New Territories, those belonging to the Tang Clan, have a continuous history dating back to the eleventh century, and other villages date from the Yuan Dynasty (1280- 1368). Hakka and Cantonese, the two main Chinese groups, probably settled in the area over the same period.

In 1278, Ti Ping, the Sung Emperor, was driven by the invading Mongols to Kowloon and died there. A small hill crowned with a

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prominent boulder bearing the characters Sung Wong Toi* (Sung Emperor Stone) was held sacred to his memory until the hill was demolished in 1943, during the Japanese occupation, to make room for an expansion of the airport. His brother, the last Sung boy Emperor, met with final defeat in an attempted stand in the New Territories and he and his ministers fled to Ngai Shan further south, but some of his followers found refuge in Lantau where their descendants are still to be found.

The maritime relations between China and the West were at first dominated by Arab and Near Eastern traders who formed a considerable community at Canton from the seventh century on- wards, but Chinese traders also penetrated to the Indian Ocean from the eleventh century. The Portuguese formed the spear-head of European maritime contacts with China. Jorge Alvarez reached China by sea in 1513, the first European to do so; the earliest Portuguese traders followed in 1517 and 40 years later, in 1557, they established themselves at Macau, partly in return for assist- ance in the suppression of piracy. For nearly 300 years, through many vicissitudes, and against the main current of Chinese official opinion which was not interested in commercial or cultural con- tacts, Macau provided the one reliable point of contact between China and the West.

      The first Englishman to attempt to trade with China was John Weddell in 1637. He found Portuguese influence against him and tried to force his way up to Canton and not surprisingly his venture ended in complete failure. Later attempts were similarly unsuccessful, the first English ship to trade peaceably with the Chinese being the East India Company ship Macclesfield in 1699. The company sent ships to Canton each year thereafter, and in 1715 decided to establish permanent commercial relations and set up a 'factory', as it was known, outside the town. Attempts to extend the trade to Amoy, Ningpo and Tamsui failed and in 1757 trade with the West was confined to Canton by Imperial edict, and placed under the direct control of an Imperial official called the Hoppo. In addition, a guild of Chinese merchants called the Hong Merchants or Co-hong was given a monopoly of western trade by a similar edict in 1755. Many other European nations

* The stone bearing these characters has now been erected in a small

public park near the original site.

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sent traders to Canton, but in the second half of the eighteenth century the British gradually secured a dominant share of the trade mainly as a result of growing control in India, and the lead in Sino-western relations therefore naturally fell to Britain.

The trade was lucrative and yet there were grievances. Residence at Canton was confined to the trading season and hedged with personal restrictions which confined the traders to the factory area, denied them access to the city and placed them in the hands of the Co-hong in their dealings with officials for the fixing of prices and the levying of port dues. The westerners were regarded as barbarian, yet there was mutual trust which enabled written com- mercial contracts to be dispensed with.

The British made unavailing efforts to improve conditions at Canton by diplomatic means after appeals to the provincial officials there had failed. In 1793 Lord Macartney, fresh from his successful mission to Russia, was sent to Peking as ambassador, ostensibly to congratulate the Emperor, but chiefly to secure com- mercial concessions at Canton or else to acquire an island where the British could reside under their own law and government. He was hospitably received in Peking and created a favourable impression, but all his requests were refused. In 1816 a second embassy under Lord Amherst failed even more completely, Amherst being ordered to leave Peking without even seeing the Emperor.

The East India Company held a monopoly of British trade with China, but in the late eighteenth century the company began to concentrate on the valuable tea trade. At the same time licensed private traders engaged in what was termed the 'country trade' between India and China. By acting as representatives of foreign states these private traders overcame the reluctance of the company to allow them to reside in Canton and Macau. Thus an enlarged British community developed, strongly favouring the new free trade ideas then being discussed in England and clamouring for the abolition of the East India Company's now nominal monopoly. Abolition was, in fact, effected by Parliamentary action in 1833.

To replace the company's control, Lord Napier was sent out in 1834 as Chief Superintendent of Trade, with strict instructions to pursue a conciliatory policy towards the Chinese. But his position

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HISTORY

was weak, because he had no power to negotiate and no means of controlling his compatriots. He went to Canton without seeking the required permit and tried to deal with the Canton officials direct, thus disobeying the rule that required all communications with the officials to be made through the Co-hong. After a few weeks of impasse Napier retired to Macau, a sick man, and died there 10 days later. Meanwhile official Chinese opinion was becoming alarmed over the financial and moral consequences of the increased popularity of opium smoking, which had led to opium becoming the staple of the trade with India despite a Chinese prohibition on its importation. After much debate among the Mandarin officials the Emperor appointed Lin Tse-hsü as Special Commissioner, with orders to stamp out the opium trade. Lin took strong action and within a week of his arrival at Canton, in March 1839, he had surrounded the foreign factories with an armed force. He allowed no Europeans to leave, stopped supplies of food and water, and demanded the surrender of all opium for destruction. All opium dealers and masters of ships arriving at the port were called on to sign a bond against the import of opium on pain of death.

     Captain Charles Elliot, RN, who had become Superintendent of Trade in 1836, ordered his countrymen to surrender the opium, despite the fact that much of it was owned by firms in India for whom the local merchants were agents. But Elliot refused to allow anyone to sign the bond and, much to Lin's annoyance, all British trade was stopped until the British Government could decide its policy. After a siege of six weeks the British community were allowed to leave for Macau. Lin threatened to drive them from the coast and, when the Portuguese Governor warned Elliot that he could no longer be responsible for their safety, the whole British community took temporary refuge in the harbour at Hong Kong. The Chinese then attempted to prevent local supplies of food reaching the ships and after several incidents in and around Hong Kong waters the relations between Lin and Elliot broke down completely.

     Lord Palmerston, the Foreign Secretary, supported by commer- cial interests in Parliament, decided that the time had come for a settlement in relations between Britain and China. He demanded either a commercial treaty which would put commercial relations

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on a satisfactory footing, or the cession of a small island where the British community could live free from the pressure Lin had used. An expeditionary force arrived in June 1840 with orders to support these demands by enforcing measures against China's economy. Negotiations between Elliot, the British plenipotentiary, and Keshen, a Manchu commissioner who had replaced Lin after his exile in disgrace, resulted in agreement over the preliminaries of a treaty the Convention of Chuenpi-on January 20, 1841. By it, Hong Kong was to be ceded. The island was formally occupied by a naval party on the 26th January 1841, and a few days later Elliot proclaimed it a British Colony.

THE ISLAND COLONY, 1841-60 -

      Neither side accepted the Chuenpi terms. The cession of an island aroused shame and anger among the Cantonese, and the strength of the war party at Court forced the Emperor to continue hostilities. The unfortunate Keshen was arrested and sent to Peking in chains. Palmerston was in any case dissatisfied with Hong Kong, which he contemptuously described as a 'barren island with hardly a house upon it', and refused to accept it as the island station which was to be demanded as an alternative to a commercial treaty. Elliot's successor, Sir Henry Pottinger, who arrived at Macau in August 1841, renewed hostilities with resolution and by the following August, when British troops were threatening to assault Nanking, brought the war to a close by the Treaty of Nanking. Under it Hong Kong was ceded to the British Crown, 'it being obviously necessary and desirable that British subjects should have some port whereat they may careen and refit their ships. . . .', and four additional ports on the mainland were opened to trade.

      Pottinger visited Hong Kong Island during the winter of 1841-2 and found so much evidence of progress since its occupation that he determined to retain it in spite of Palmerston's strictures. In June 1843, after the Treaty had been ratified by both countries, Hong Kong was declared a British Colony, and the name 'Victoria' was conferred upon the settlement; the main thoroughfare on the northern side of the island facing the harbour was named 'Queen's Road'. Hong Kong was declared a free port and by the Supple- mentary Treaty of the Bogue in October 1843 the Chinese were

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HISTORY

     allowed free access to the island for purposes of trade. Indeed, British policy of welcoming all-comers to the Colony and of not seeking any exclusive commercial privileges accorded with the Colony's economic interests.

      The early years of the infant Colony were marked by a series of misfortunes. In 1841 it was struck by two typhoons and the Chinese market area was burnt down twice. Virulent fever, probably malaria, decimated the Europeans and at one point troops were withdrawn to the safety of ships in the harbour, while building in Happy Valley had to be abandoned. An early estimate put the local Chinese population at some 4,000, with a further 2,000 living afloat. The first report on population in June 1845 gave the total as 23,817, of whom 595 were Europeans and 362 Indians.

      At first the Colony did not fulfil the sanguine hopes that had been formed and instead of becoming a great emporium, as had been predicted, trade developed between Britain and the new Treaty Ports direct, particularly Shanghai which was commercially more advantageously situated than Hong Kong. In 1847 a Parlia- mentary Committee of Enquiry into the China trade went so far as to express doubts that Hong Kong would ever develop into an important commercial centre and recommended economies in its administration.

      Shortly after Hong Kong's foundation a great wave of Chinese emigration took place, mainly to south-east Asia and the countries bordering the Pacific. In 1849, when gold was discovered in California, there was a rush of Chinese to Kam Shan (Golden Mountains) which has remained the vernacular name for San Francisco. In 1851 there was a similar rush to Australia and San Kam Shan (New Golden Mountains) has remained the Chinese name for Sydney. In addition there was emigration of labour under contract to the sugar plantations of Central and Southern America. To check the many abuses connected with this migration the British Government passed the Chinese Passengers Act of 1852, prescribing reasonable standards of food, space and medical atten- tion. This tended to drive the coolie trade to other ports, but Hong Kong prospered as the centre of an important passenger traffic.

      The T'ai P'ing Rebellion, which began in 1850 and spread over South China, created unsettled conditions on the mainland resulting

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339

in thousands seeking refuge in the Colony. By 1861 the population had risen to 119,321, of whom 116,335 were Chinese. This pattern was to be repeated and is significant among the factors which have made Hong Kong a predominantly Chinese community.

EXTENSIONS TO THE COLONY, 1860-99

       The Treaties of Tientsin at the conclusion of the Second Anglo- Chinese War of 1856-8, gave Britain and France the privilege of diplomatic representation at Peking. However, the first British envoy, Sir Frederick Bruce, who had served as Colonial Secretary in Hong Kong in 1844-5, was met by armed Chinese opposition at Taku Bar on his way to the Chinese capital. In the ensuing hostilities, Kowloon peninsula was occupied and used as a camp for the British forces and Sir Harry Parkes at Canton secured from the Viceroy there the perpetual lease of the peninsula as far as Boundary Street, including Stonecutters Island. The Convention of Peking, 1860, converted the lease into an outright cession.

       The naval and military authorities claimed the whole of the newly acquired area and it was only after some four years of strenuous advocacy of the Colony's interests that the Governor, Sir Hercules Robinson, was able to confine the Services to specified areas, subject to their right to occupy additional areas in case of military emergency. Under these circumstances the development of Kowloon as a residential area and commercial port was seriously hindered. Land values remained low and the necessary reclama- tions proceeded slowly because incentive was lacking. The develop- ment of Kowloon had to wait until population pressures of the twentieth century forced the pace.

By the Convention of Peking of 1898, negotiated with China because of rivalry between the western powers over concessions in China and because of fear of French and Russian ambitions in the Far East following the alliance of these two powers in 1893, Hong Kong's boundaries were again extended by a 99-year lease of the mainland north of Kowloon, together with some 235 islands in the vicinity. This extension soon acquired the name New Territories. The British take-over in April 1899 met with some initial ill-organized armed opposition, but Sir Henry Blake based the administration on the maintenance of Chinese law and custom, in co-operation with village committees and headmen, and by

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HISTORY

extensive visits to the villages to explain his policy in person he was able to build up confidence. Steps were taken to improve economic conditions and check widespread malaria, so that the population has gradually increased from about 100,000 to nearly half a million as shown by the 1961 Census.

DEVELOPMENT OF THE COLONY UP TO 1941

The history of Hong Kong is one of steady expansion in trade and population, and of consequent material and social improve- ments. The old traditional practice of European and Chinese com- munities living apart continued in Hong Kong and was accepted. Each pursued his own way of life largely independent of the other. Until the Chinese had more opportunities for western education there could be little Chinese participation in government, western commerce or the professions. There have been, however, Chinese members of the Legislative Council since 1880 (when Ng Choy, who was the first Chinese to be called to the English bar, was appointed) and of the Executive Council since 1926.

In education, the first grants from public funds were those given to the Chinese vernacular schools in 1847 and administered by an education committee. The earliest schools were founded by mis- sionary bodies, who have received grants or subsidies since 1873 and have conducted their schools mainly on western lines. A demand for higher education and professional training followed and in 1887 the College of Medicine for the Chinese was founded by Dr Patrick Manson, Dr James Cantlie and Dr Ho Kai, with the assistance of the London Missionary Society. One of its first graduates was Sun Yat-sen, later to become the founder of the Chinese Republic.

Undoubtedly the main educational advance was the founding in 1911 of the University of Hong Kong, which took over the work of the Hong Kong College of Medicine and the Technical Institute as the basis of its faculties of medicine and engineering. The University was made possible by the enthusiasm of Sir Frederick Lugard, the Governor, and the generosity of Sir Hormusjee Mody who met the entire cost of the main building. With the aid of subsequent benefactors and increasing government support the University has steadily developed traditions suited to its unique

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341

position as an English-speaking University in a Chinese environ- ment. It soon attracted students from the mainland and south-east Asia, and won for itself the loyalty of the local community.

The special needs of the Chinese population received early con- sideration. Originally it was intended to let them live under their own law administered by Chinese officials, but this idea was found to be impracticable and was abandoned. Instead, the ideal of equality for all races under the law became the guiding principle, and the revised Governor's Instructions of 1865 forbade him to agree to any ordinance 'whereby persons of African or Asiatic birth may be subjected to any disabilities or restrictions to which persons of European birth or descent are not also subjected.' The protection of Chinese interests was the duty of the Registrar- General, a post created in 1845. His responsibilities grew, com- mensurate with the influence of the Chinese community until, in 1913, his post was re-named Secretary for Chinese Affairs. The Tung Wah, a charitable Chinese institution founded in 1870 to run hospitals and generally care for the indigent Chinese, also became an important body representative of responsible Chinese opinion.

The Colony's earliest hospitals were run by missionary bodies, the first government medical officer being appointed in 1847 to treat prisoners in the gaol and the police. He opened a small makeshift hospital the following year which served until 1859 when a Government Civil Hospital was opened. This was destroyed by the 1874 typhoon and adjoining buildings had to be requisitioned. On this site now stand the modern Tsan Yuk Maternity Hospital and the Sai Ying Pun Jockey Club Clinic. The Kowloon Govern- ment Hospital was opened in 1925 and the Queen Mary Hospital, one of the largest and most up-to-date in Asia, in 1937. Both these Government Hospitals will shortly be eclipsed in size by the new 1,320-bed Queen Elizabeth Hospital being built in Kowloon.

The entry of the Chinese into Hong Kong in large numbers was unforeseen and naturally little provision was made for it. A narrow strip of comparatively level ground along the foreshore was at first the only available land for building and Queen's Road approximately follows the line of the original settlement. Expansion

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HISTORY

could only take place on the slopes of the Peak-as for example Stanley Street, Wellington Street and Caine Road, once a very fashionable area-or by reclamation from the sea. By 1880 the city, particularly its Chinese quarters in Tai Ping Shan, Sai Ying Pun and Wan Chai, had become seriously overcrowded and in- sanitary. It was this which led to the development of the Peak as a residential area, particularly after 1888 when the Peak Tramway was built.

      As a result of complaints from the military about the sanitary condition of Hong Kong, Osbert Chadwick, a sanitary engineer, was sent out by the home government. A Sanitary Board was set up in 1883 to which nominated unofficials were added in 1886 and two elected representatives of the ratepayers in 1887. It could bring about little improvement because of Chinese opposition to western ideas of sanitation and to any interference with their way of life. There was also opposition to the cost of sanitary improve- ments on the part of the community, already burdened by a costly programme of public works and by defence expenditure at a time when the dollar was falling in value. The result of this neglect was an outbreak of the plague in 1894. Two Japanese doctors who came to investigate, Professor Vitasato and Dr Aoyama, claimed to be the first to isolate the plague bacillus and to demonstrate that it was carried by rats. Even then there was considerable opposition to house-cleansing and measures against rat-infestation, and annual visitations of the plague continued until about 1927. The Sanitary Board continued until 1935, when its functions were broadened and taken over by an Urban Council.

       The earliest reclamation was the filling of a small creek in 1851, to make what is now Bonham Strand. Bowrington (1859) and Kennedy Town (1877) were built partly on reclaimed land. The most important reclamation was that in the central district, begun in 1890 and completed in 1904, which added Chater Road, Connaught Road and Des Voeux Road to the city. Large reclama- tions were made in the Wan Chai area in the years 1921-9.

       Increasing urbanization led also to the problem of water, and the start of a century-long race between water supply and popula- tion demand. Prior to 1941 successive water schemes were inaugu- rated at Pok Fu Lam (1864), Tai Tam (1889), Wong Nai Chung

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343

     (1899), Tai Tam Tuk (1917) and the Jubilee reservoir in the Shing Mun Valley in 1935.

THE CHINESE REVOLUTION AND TWO WORLD WARS

       The Chinese Revolution of 1911 overthrew the Manchu Dynasty. There followed a long period of unrest in China and again large numbers of refugees found shelter in the Colony. One of its leaders, Sun Yat-sen, who headed the Kuomintang republican group centred in Canton, had been deeply influenced by the British institutions he had seen while a student in Hong Kong. Chinese participation in the first World War was followed by strong nationalist and anti-foreign sentiment, inspired both by disappointment over their failure at the Versailles peace conference to regain the German concessions in Shantung and by the post-war radicalism of the Kuomintang. The Chinese wanted to abolish all foreign treaty privileges in China. Foreign goods were boycotted and unrest spread to Hong Kong where a seamen's strike in 1922 was followed by a serious general strike in 1925-6 under pressure from Canton. This petered out, but not before considerable disruption of the life of the Colony. Britain, as the holder of the largest foreign stake in China, was the main target of this anti-foreign sentiment, but Japan soon replaced her in this position.

Japanese plans for political aggrandizement in the Far East became apparent when she seized the opportunity of the first World War to present her 'twenty one demands' to China early in 1915. In 1931 Japan occupied Manchuria and her attempt to detach China's northern provinces led to open war in 1937. Canton fell to the Japanese in 1938, resulting in a mass flight of refugees to Hong Kong. It was estimated that some 100,000 entered in 1937, 500,000 in 1938 and 150,000 in 1939, bringing the population at the outbreak of war to an estimated 1,600,000. It was thought that at the height of the influx about half a million were sleeping in the streets.

      The outbreak of war in Europe in September 1939 gave Japan the advantage of being able to extend her ambitions over the whole of east and south-east Asia, and the position of the Colony became precarious. On 8th December 1941, the same day as the attack on Pearl Harbour, the Japanese attacked from the mainland, and subsequently the British were forced to retire from the New

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HISTORY

     Territories and Kowloon to Hong Kong Island. The Japanese crossed the harbour at Lei Yue Mun on the night of the 18th - 19th December and after a week of stubborn resistance on the island the defenders, who included the local Volunteer Corps, were over- whelmed and the Colony surrendered on Christmas Day. The Japanese occupation lasted three years and seven months.

      British civilians were interned at Stanley while the Chinese population and neutrals had to suffer steadily deteriorating con- ditions. Trade virtually disappeared, the currency lost its value, food supply was disrupted and government services and public utilities were seriously impaired. Many moved to Macau, the Portuguese Colony hospitably opening its doors to them. Towards the later part of the occupation the Japanese sought to ease the food problem by organizing mass deportations. In the face of increasing oppression the bulk of the community remained loyal to the allied cause; Chinese guerillas operated in the New Territories and allied personnel escaping were assisted by the rural population.

      Soon after the news of the Japanese surrender was received a provisional government was set up by the Colonial Secretary, Mr (later Sir) F. Gimson, until Rear Admiral Sir Cecil Harcourt arrived with units of the British Pacific Fleet to establish a temporary military government. Civil government was formally restored on 1st May 1946, when Sir Mark Young resumed his interrupted governorship.

THE POST-WAR YEARS

From the moment of liberation Hong Kong began a spectacular recovery. The Chinese returned at a rate approaching 100,000 a month and the population, which by August 1945 had been reduced to about 600,000, rose by the end of 1947 to an estimated 1,800,000. Then in the period 1948-9, as the forces of the Chinese Nationalist government began to face defeat in civil war at the hands of the Communists, the Colony received an influx of people unparalleled in its history. About three quarters of a million, mainly from Kwangtung province, Shanghai and other commer- cial centres, entered the Colony during 1949 and the spring of 1950. By the end of 1950 the population was estimated to be

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345

2,360,000. Since then it has continued to rise, largely owing to a high birth rate.

Intense and unprecedented development has accompanied the growth of population. One of the most striking features of the post-war years has been the steadily increasing part which the Government has played, directly or indirectly, in the provision of housing and other forms of social services for the poorer sections of the community. Low-cost housing schemes and multi-storied resettlement estates have called for a heavy investment of public funds; schools, colleges, clinics, hospitals and other essential facilities have been provided on a scale unprecedented in the Colony's history. Despite the substantial progress made, however, the demand continues and is still far from being satisfied.

Private building on a wide scale has transformed and modern- ized much of the urban areas and the more accessible parts of the New Territories. In Kowloon and Tsuen Wan particularly, industrialists have opened many large modern factories producing a wide range of goods for export to all parts of the world. To meet the demand for land for industry and housing the Govern- ment has continued to carry out many new reclamation schemes, principally in the central district, Causeway Bay and at various points on the northern shores of the harbour. The investigation of new areas for development is constantly in hand, and reservoir capacity is being further enlarged.

The spectacular growth of new factories and workshops, coupled with the Colony's need to keep pace with world-wide advances in production, management and marketing techniques, have been accompanied by higher standards of factory inspection, new labour legislation, and constantly increasing official concern with trade promotion, and technical and vocational training.

       The Government has embarked on a large-scale reconstruction of the Colony's road network; more rigorous traffic controls have been introduced in the face of enlarged public transport services and the big increase in the number of private cars. The railway has changed from steam to diesel-electric traction. A new airport capable of meeting the needs of the biggest aircraft in service has been completed and is in full operation, a new $16 million terminal having been opened in November. Airline passengers, many of them tourists from overseas, have in turn created a

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demand for more and better hotel accommodation, and for sight- seeing and shopping facilities, and night-time entertainment.

Postal and telecommunication services have set new records in the traffic handled. Broadcasting, wired and wireless, has de- veloped as a principal part of the Colony's entertainment, and wired television supplements the many modern cinemas. Parks, playgrounds and well-supervised bathing beaches are only a few of the outdoor amenities which the public at large enjoy.

      An increased, and ever increasing, tempo is apparent in every aspect of Hong Kong's daily life. But it is the growth of local industry, which came into being to replace the traditional entrepôt trade of the Colony, which has been the most significant feature- after population growth-in the Colony's history in the post-war

years.

25

Constitution and Administration

CONSTITUTION

     THE principal features of the constitution are prescribed in Letters Patent, which provide for a Governor, an Executive Council, and a Legislative Council. Royal Instructions to the Governor, supplemented by further Instructions from the Sovereign conveyed by the Secretary of State for the Colonies, prescribe the membership of the Executive and Legislative Councils.

      The Executive Council, which is presided over by the Governor, consists of five ex officio and seven nominated members. The ex officio members are the Commander, British Forces, the Colonial Secretary, the Attorney General, the Secretary for Chinese Affairs, and the Financial Secretary, and there is one nominated official member. The six unofficials at present include three Chinese members and one Portuguese member.

The main function of the Executive Council is to advise the Governor, who must consult its members on all important matters. The responsibility for deciding which questions should come before the Council, and for taking action afterwards, rests with the Governor, who is required to report his reasons fully to the Secretary of State if he acts in opposition to the advice given by members. The Governor in Council (i.e. Executive Council) is also given power under numerous ordinances to make subsidiary legislation by way of rules, regulations and orders. A further function of the Council is to consider appeals and petitions under certain ordinances.

       The same five ex officio members of the Executive Council also serve on the Legislative Council, of which the Governor is also the President. In addition, there are four other official members and eight unofficial members nominated by the Governor who at present include five Chinese members and one Indian member.

The laws of the Colony are enacted by the Governor with the advice and consent of the Legislative Council, which controls

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finance and expenditure through its Standing Finance Committee, on which all the unofficial members sit. Procedure in the Legisla- tive Council is based on that of the House of Commons.

      The membership of the Executive and Legislative Councils is given in Appendix XII.

JUDICIARY

      The principles of Common Law and Equity and the statutes of England as they existed in that country on 5th April 1843, except where they are inapplicable to local circumstances, are the foundations of Hong Kong's legal system. They have been extended and modified by the application to the Colony of certain later enactments of the United Kingdom Parliament and by the Ordinances of Hong Kong. The last consolidated and revised edition of the Laws of Hong Kong, correct to 1950, was published in 1951. The courts of the Colony are described in chapter 13.

ADMINISTRATION

Under the general direction of the Colonial Secretary, the administrative functions of the Government are discharged by some 30 departments, all the officers of which are members of the Civil Service. A list of these departments is given in Appendix II.

       The Colonial Secretariat, under the general administrative control of the Deputy Colonial Secretary, co-ordinates the work of departments and makes, or transmits from the Governor, the Governor in Council, or the Colonial Secretary, all general policy decisions. The Secretariat consists of six divisions dealing with general administration, lands, Councils, finance, defence and establishment matters. The Financial Secretary is responsible for financial and economic policy; the Defence Secretary advises on defence, co-ordinates the work of the local forces described in chapter 17 and acts as the main channel of communication between Government and Her Majesty's Armed Forces stationed in the Colony. The Secretariat includes a Political Adviser seconded from the Foreign Office.

      The Government's principal legal adviser is the Attorney General, who is the head of the Legal Department and is also responsible for drafting legislation and for instituting and con- ducting public prosecutions. The Attorney General is assisted

CONSTITUTION AND ADMINISTRATION

349

by the Solicitor General, Principal Crown Counsel and Crown Counsel.

The Secretary for Chinese Affairs is the Governor's principal adviser on all matters connected with the Chinese population. He is also specifically charged with the responsibility of main- taining direct channels of communication between Government and all levels of Chinese society in urban Hong Kong. In addition, with the assistance of his department, the Secretariat for Chinese Affairs, he discharges a number of statutory duties including the chairmanship of certain boards and committees (which are for the most part Chinese in composition), administration of the District Watch Force and Tenancy Inquiry Bureaux, and a variety of licensing and registration duties. Other traditional responsibili- ties include those of arbitration in domestic or tenancy disputes, and the provision of his good offices should there be any major misunderstanding between another department and some section of the Chinese public on other than purely professional or technical matters. He also has the important duty of providing direct liaison with villagers in semi-rural areas on Hong Kong Island and in New Kowloon. The Secretary for Chinese Affairs is responsible for the co-ordination of the policy by which the executive departments (the Police Force, the Preventive Service, etc) work in their war against drug trafficking and drug addiction, and in the rehabilitation of addicts.

The Social Welfare Department has six sections responsible for child welfare (including care and protection of children, guardian- ship, adoption and liaison with institutions); youth welfare (group work for young people); community development; the welfare of women and girls (moral welfare); special welfare services (for the physically and mentally handicapped); relief and public assistance; and probation (including institutions for delinquents). The department maintains close co-operation with the Council of Social Service and with the many voluntary agencies which under- take welfare work in Hong Kong.

Under the Financial Secretary, the accounting operations of Government are managed and supervised by the Accountant General, who is in charge of the Treasury. The audit of all public accounts and of certain special funds is carried out by the Director of Audit under the general supervision of the Director General

350

CONSTITUTION AND ADMINISTRATION

of the Overseas Audit Service. Reports on the accounts are presented annually by the Director of Audit and the Director General to the Legislature and transmitted to the Secretary of State. The Rating and Valuation Department, under a com- missioner, is concerned with assessments for rates and other matters connected with the rent and value of real property, including negotiations for accommodation for Government depart- ments. The Inland Revenue Department, headed by the Com- missioner of Inland Revenue, administers the collection of the internal revenue of the Colony. This includes earnings and profits tax, stamp duties, estate duty, entertainment tax, dance halls tax, bets and sweeps tax, and business registration fees. The Commerce and Industry Department under a director, is responsible for industrial and trade development, the collection of revenue from import and excise duties, the activities of the Preventive Service, certificates of origin, trade licensing, Government bulk purchases of firewood and certain foodstuffs, control over stocks of reserve commodities, and the production of trade statistics and any other statistics required by other departments of Government. The department also administers the London and Sydney offices of the Hong Kong Government. (The work of these departments has been described in chapters 4 and 6).

      The Public Works Department, under a director, has nine sub- departments, dealing with waterworks; Crown lands and surveys; the administration of the Buildings Ordinance; electrical and mechanical works (including Government motor transport); archi- tecture (Government buildings); development; port works; drainage, and roads. The Director of Public Works is also responsible for town planning. (See also chapters 10, 14 and 15).

The Urban Council, constituted under the Urban Council Ordinance, consists of five ex officio members, namely the chair- man (who is at the same time Director of the Urban Services Department), the Deputy Director of Medical and Health Services (vice-chairman), the Director of Public Works, the Secretary for Chinese Affairs, and the Director of Social Welfare; and 16 ordinary members, of whom eight are elected and eight appointed by the Governor. The Commissioner for Resettlement sits as a temporary additional ex officio member. The term of office of ordinary members is four years. The Council meets monthly to

CONSTITUTION AND ADMINISTRATION

351

      transact formal business, but most of its business is dealt with by 15 select committees and four sub-committees, which meet at frequent intervals.

The membership of the Urban Council is given at Appendix XIII.

      The Council carries out its responsibilities through the Urban Services Department and the Resettlement Department. The Urban Services Department, whose work is also described in chapters 9 and 21, operates the basic sanitary services in both the urban areas and the New Territories behind Kowloon, with a variety of other duties in the field of public health such as the supervision of food premises and hawkers, the operation of the city's slaughterhouses, and pest control measures. In addition, the department controls and staffs the parks, playgrounds and bathing beaches. The management of the multi-storey car parks in the centre of the city is also a responsibility of the Council, as is the new City Hall opened in March.

      The Resettlement Department is responsible for the planned removal and resettlement of squatters, the administration of the resettlement estates and areas, and the prevention of new squatting either on vacant land or on the rooftops of buildings. The com- position of the Housing Authority and the work of the Housing Division of the Urban Services Department which is responsible, under the immediate charge of a commissioner, for routine adminis- tration and execution of the Authority's decisions, are described in chapter 10.

      The Commissioner of Police is responsible for the internal security of the Colony. The Police Force, the Prisons Department, and the Immigration Department are described in chapter 13. The Medical and Health Department is outlined in chapter 9, the Education Department in chapter 8, the Labour Department (under a commissioner who is concurrently Commissioner of Mines) and the Registry of Trade Unions in chapter 3.

      Reference to the Registrar General's Department is made in chapter 13, and to the Marine, Railway and Civil Aviation Departments, the Post Office and the Royal Observatory in chapter 15. The Information Services Department, Radio Hong Kong and the Public Enquiry Service are described in chapter 16. Chapter 7 describes the work of the Agriculture and Forestry Department, and of the Co-operative Development and Fisheries Department.

352

CONSTITUTION AND ADMINISTRATION

      The Fire Services Department, which is under the control of a director, provides fire protection throughout the urban areas and in the main districts of the New Territories, and for shipping in the harbour. Additional fire stations are now under construction to increase fire cover for the Colony as part of a 10-year develop- ment plan which began in 1960. The Fire Service has an establish- ment of over 1,200 officers and other ranks, with 104 vehicles, four fire boats, 26 ambulances and five sitting case cars.

      The Stores Department, under a controller, buys and distributes Government stores, maintains all furniture for offices and quarters, and administers the Government monopoly of sand. The Printing Department, under the Government Printer, is responsible for the printing of most Government publications. The Quartering Office deals with accommodation for civil servants.

NEW TERRITORIES ADMINISTRATION

       The New Territories are divided into five administrative districts, each under a District Officer who has a staff of between 75 and 160, depending on the size of the district. The largest and most populous district is Tai Po, which covers the north-east of the New Territories and has its District Office at Tai Po Market. The second largest and most populous district is Yuen Long in the north-west, with its District Office at Ping Shan. The third district is Tsuen Wan, which covers the rapidly growing industrial com- plex of Tsuen Wan, Kwai Chung and Tsing Yi Island, as well as Ma Wan Island and the northern tip of Lantau Island. Its District Office is in Tsuen Wan itself. The fourth and fifth districts are Sai Kung and Islands, both of which have District Offices in Gascoigne Road, Kowloon. The Sai Kung District covers the southern part of the Sai Kung peninsula, the Clear Water Bay peninsula and the adjoining islands. The Islands District covers practically all of Lantau, Cheung Chau and all the other islands to the west and south of Hong Kong.

        A District Commissioner co-ordinates the overall administration of the New Territories from an office in North Kowloon. He is assisted by a Deputy District Commissioner and a headquarters staff which, including the Cadastral Survey staff, totals 106.

      The District Officers are concerned with every aspect of Govern- ment activity in their districts and act as the principal links between

CONSTITUTION AND ADMINISTRATION

353

      Government and the local inhabitants. Their responsibilities include arbitration in all kinds of village and personal disputes, including family and matrimonial cases. They control the utilization and sale of Crown land and administer the grant of temporary structure permits. They also control squatters, except in the case of Tsuen Wan where the Commissioner for Resettlement is responsible. They register documents and deeds relating to private land, and approve plans for small domestic and agricultural buildings exempted from certain requirements of the Buildings Ordinance, 1955. They assess and collect stamp duty, and issue licences for various types of licensed premises. District Officers have an alloca- tion of funds from the New Territories local public works vote, which pays for materials to help villagers improve irrigation and water supplies, build paths and small bridges and carry out a wide variety of other minor works to improve the amenities of the villages.

        District Officers have the assistance of Rural Committees whose executive committees, exercising various advisory functions, are usually elected by secret ballot every two years by and from village representatives. There are now 27 of these committees covering the entire New Territories and each month they receive a small subvention from Government to cover routine expenses. Within its own area each Rural Committee acts as the spokesman for local public opinion, arbitrates in clan and family disputes, and generally provides a bridge between the administration and the people.

        The chairmen and vice-chairmen of the 27 Rural Committees, together with the unofficial New Territories Justices of the Peace, and 21 Special Councillors elected every two years, form the Full Council of the New Territories Heung Yee Kuk, whose title may be translated into English as 'Rural Consultative Council'. The Kuk serves as a forum where leaders of New Territories opinion have gathered since it was constituted in 1926, and from which (except during the period from August 1958 to December 1959 when official recognition of the representative status of the Kuk was withdrawn because of internal dissension) Government has sought advice on New Territories affairs. Under its new constitu- tion which was established by the Heung Yee Kuk Ordinance, 1959, the Kuk, apart from its Full Council, also includes an

354

CONSTITUTION AND ADMINISTRATION

Executive Committee which meets monthly and consists of the chairmen of Rural Committees, the unofficial New Territories Justices of the Peace, and 15 ordinary members elected every two years by the Full Council. The Full Council also elects the chair- man and two vice-chairmen of the Kuk, through whom close and constant contact is maintained with the District Commissioner. During April and May 1962 elections for the 15th term of the Heung Yee Kuk were successfully completed under the District Commissioner's supervision as returning officer.

THE PUBLIC SERVICE

       On 1st April 1962, the establishment of the Public Service totalled 56,910, an increase of 3,643 over the previous year. The estimated expenditure on salaries for the financial year 1962-3 is almost $378 million, which accounts for 31% of the total estimated expenditure for the year.

The Service has expanded very rapidly since 1949 (before the influx of immigrants from China started), when the total establish- ment was about 17,500. This growth has been accompanied by a determined effort to fill as many posts as possible with local candidates. Much effort, particularly in more recent years, has been directed towards fitting local candidates to fill the more responsible posts in Government. Between 1961 and 1962 the percentage of administrative and professional posts filled by local officers increased from 40.3% to 43.5%; over the Service as a whole, the percentage of overseas officers is 3.2%. Much, however, remains to be done not only to provide opportunities for promotion but also to ensure that Government staff are trained to discharge their present duties efficiently. The nucleus of a training unit, established in the Colonial Secretariat in 1961, has now been expanded. It has reviewed departmental training programmes, organized various central training courses, and will play a major part in maintaining enthusiasm for improved training arrangements. Overseas training is also required, however, and 100 local officers went overseas during the year to obtain professional qualifications, many of them post-graduate. About $1,800,000 was spent on over- seas training in 1962.

The Public Services Commission continued to play a valuable part in maintaining standards in the Public Service, both by

CONSTITUTION AND ADMINISTRATION

355

      advising on the qualifications to be prescribed for various posts and on the selection of candidates for appointment. The amend- ment made in 1961 to the Public Services Commission Ordinance, whereby the Commission is no longer required to advise on appointments, probation bars, promotions and efficiency bars for the more junior posts, enabled it to devote more time to the many other important issues referred to it. For some time it had been felt that departments should be given more discretion in the appointment and promotion of junior staff and authority was delegated to them to appoint and promote staff (subject to certain reservations) to posts with an initial monthly salary of less than $930 ($690 for women).

       Steps were taken during the year to set up a selection board in London to enable persons of Hong Kong origin studying in the United Kingdom to apply for posts in the Hong Kong Public Service. This is regarded as a practical way of ensuring that every- thing possible is done to implement the policy of filling vacancies with persons whose roots are in Hong Kong. Overseas officers are now appointed on pensionable terms only if a local officer will not be available to fill the post within the foreseeable future.

       In conjunction with heads of departments and their representa- tives the Establishment Branch undertook detailed reviews of the staff and salary structures of several departments during the year and produced revised structures and conditions of service designed to give more logical career prospects at all levels, thereby fitting the structure more closely to the duties to be carried out. This is of necessity a continuing task.

In August 1962 a committee under the chairmanship of the Honourable W. C. G. Knowles, JP, recommended better salary scales and a non-pensionable allowance of $40 a month for all police rank and file in order to counter resignations and recruit- ment difficulties. The committee's recommendation was accepted by government and introduced from 1st August. Since the accept- ance of the 1959 Salaries Commission Report, women's salaries have generally been set at 75% of men's. A scheme was introduced with effect from 1st April 1962, whereby this differential is gradually reduced for women who earn $1,200 or more a month and who are on probation, on the pensionable establishment, on contract or on temporary transfer from the United Kingdom Civil

356

CONSTITUTION AND ADMINISTRATION

     Service permanent establishment. The effect of this scheme is to give very small increases to the more junior single women officers and substantial increases to the more senior single women officers. Single women will now receive full parity when they reach the final point of the professional timescale.

       In mid-1962 an establishment for a new Organization Surveys Unit was approved, on the basis of recommendations prepared by a leading United Kingdom firm of management consultants, and steps were taken to recruit the necessary staff. The Unit forms part of the Colonial Secretariat, and will advise departments on ways in which modern techniques of management organization can assist them to operate more efficiently and economically. It will do this by examining departmental staff structures and the allocation and co-ordination of work; by work measurement, mechanization and method study; by the investigation of operation costs and by in- troducing improved methods of personnel training.

26

Weights and Measures

      THE weights and measures used in the Colony consist of the standards in use in the United Kingdom, and also the Chinese weights and measures given with their British and Metric equivalents in the table below:

UNIT

Domestic

EQUIVALENTS

British

Metric

Length*

1 fan

0.146 in

3.715 mm

1 ts'un or tsun (Chinese inch)

10 fan

1 ch'ek or check (Chinese foot)

10 ts'un

1.463 in

14.625 in

3.715 cm

37.15 cm

1 cheung

10 ch'ek

4.063 yd

3.715 m

1 lei (Chinese mile)

706-745 yd

646-681 m

Area

1 dau chung

1 mow

806.7

sq yd

6.745 a

1,008

sq yd

8.431 a

Weight

1 fan or candareen

0.013 oz

3.78 dg

1 ts'in or tsun or mace

10 fan

0.133 oz

3.78

g

1 tael or tahil or leung

10 ts'in

1.333 oz

37.8

1 catty or kan

16 tael

1.333 lb

604.8

g

1 picul or tam

100 catty

133.333 lb

60.48 kg

* Values vary in practice. The statutory equivalent of the ch'ek (foot) is 14% in but the ch'ek varies according to the trade in which it is used from 14% in to 11 in, the commonest equivalent being 14.14 in.

27

Bibliography

      MUCH has been published about Hong Kong since the eighteen forties, but most of the literature is out of print and difficult to find outside the libraries of the British Museum, the University of Hong Kong, the Toyo Bunko, Tokyo, the School of Oriental and African Studies of London University, and the Colonial Office. This bibliography contains much detail, but even so is not fully comprehensive, and serious students should consult the indices of the libraries mentioned.

       Books marked with an asterisk should be easy to find at present; those with a dagger are administrative or other official reports and publications; and those with a double obelus are works of fiction with a local background. Not all, as will be clear from some titles, deal solely with the Colony, but their contents may be found to be valuable. Some of the more important are set in larger type. No references are made to modern command papers or other periodic publications of Her Majesty's Government in the United Kingdom, nor to articles in journals or magazines or to commercial directories. Inclusion of a book in this list is by no means to be taken as assurance that the Hong Kong Government agrees with any expression of opinion or statement of fact found in it.

(nd): no date of publication (np): no publisher's imprint

        *ABEND (H. E.)-Treaty Ports-New York, Doubleday, Doran & Co, 1944. *† ABERCROMBIE (Professor Sir Patrick)-Hong Kong: Preliminary Planning

Report London, Crown Agents, 1949.

ABRAHAM (J. J.)-The surgeon's log; being impressions of the Far East-

London, Chapman and Hall, 1912.

AINSWORTH (W. F.)-All round the world; an illustrated record of voyages, travels and adventures in all parts of the globe-London, Collins, Sons & Co, 1866 (2 volumes).

ALABASTER (C. G.)-Report of the Reconstituted War Revenue Committee-

Hong Kong, 1941.

*ALLEN (G. C.) and DONNITHORNE (A. G.)-Western Enterprise in Far Eastern Economic Development-London, George Allen & Unwin, Ltd, 1954.

BIBLIOGRAPHY

359

ALLOM (T.) and WRIGHT (G. N.)-China in a Series of Views-London, Fisher,

Son & Co, 1843.

ALVES (J. A. S.)-Practical Hints on Poultry Keeping in Hong Kong and the

New Territories-Hong Kong, 1932.

ANDERSON (Capt G. C.) The Situation in the Far East-Hong Kong, Guedes

& Co, 1900.

ANDREW (Kenneth) Hong Kong Detective-London, John Long, 1962. ANGIER (A. Gorton)-The Far East Revisited-London, Witherby & Co, 1908. ANGUS (H. A.), Chairman-Report of the Advisory Committee on the proposed

Federation of Industries-Hong Kong, 1959.

ANSTEY (T. C.)-Crime and Government at Hong Kong-Hong Kong, 1859.

-Another Treaty with China, but not another war-Hong Kong (nd). ARMSTRONG'S (COMMODORE) War in China, 1856 and 1857-Hong

Kong, Printed by J. M. da Silva, 1858.

ARNOLD (John)-Picturesque Hong Kong: A handbook for travellers--Hong

Kong, Privately printed, 1911.

ARNOLD (Julean)-Commercial Handbook of China-Washington, 1919 & 1920

(2 volumes).

ASILE de la SAINTE ENFANCE-French Convent of the Sisters of Saint Paul

of Chartres-Hong Kong, 1910.

BAINS (J. W.)-Interport Cricket. A Record of Matches between Hong Kong,

Singapore & Shanghai, 1866-1908-Shanghai, Shanghai Times, 1908. BALFOUR (S. F.)-Hong Kong before the British. (Reprinted from

T'ien Hsia Monthly)-Shanghai, 1941.

BALL (J. D.)-The Cantonese Made Easy-Hong Kong, 'China Mail' Office,

1924.

BARNETT (K. M. A.)-Report on the 1961 Census-Hong Kong (nd) 1962. BEACH (Rev W. R.)-Visit of His Royal Highness the Duke of Edinburgh---

Hong Kong, Noronha & Co, 1869.

†BEALE (Sir Louis)-Report on Economic & Commercial Conditions in China. With an appendix by G. Clinton Pelham-Economic Conditions in Hong Kong-London, 1938.

BELCHER (Sir Edward)-Narrative of a Voyage round the World. in HMS

'Sulphur-London, Henry Colbourn, 1843.

BELL (Sir Henry H. J.)-Foreign Colonial Administration in the Far East-

London, 1928.

BENSON (Stella) The Little World-a book of travel essays-London,

Macmillan, 1925.

‡ Mundos-London, 1935.

BENTHAM (George B.)-Flora Hongkongensis-London, Lovell, Reeve, 1861. BERESFORD (Lord Charles)-The Break-up of China-London,

Harper & Bros, 1899.

BERGHOLZ (Professor Paul)-The Hurricanes of the Far East-Bremen, Max

Nossler, 1899.

BERNARD (W. D.)-Narrative of the Voyages and Services of the NEMESIS, from 1840-43--with Notes of Commander Hall-London, Henry Colbourn, 1844 (2 volumes).

360

BIBLIOGRAPHY

'BETTY'-Intercepted Letters. A Mild Satire on Hong Kong Society-Hong

Kong, Kelly & Walsh, 1905.

BHARGAVA (K. D.) and SASTRI (K. N. V.)-Campaigns in South-east Asia:

Hong Kong, Malaya and Sarawak & Borneo, 1941-42 (Official History of the Indian Armed Forces in the Second World War, 1939-45)-(np) Combined Inter-services Historical Section, India & Pakistan, 1960. BIBLE, BOOK, AND TRACT DEPOT, Hong Kong-Report of the Committee, with reports of the British and Foreign Bible Society's and Religious Tract Society's Committee-Hong Kong, 'China Mail' Office, 1902. BINGHAM (Comdr J. Elliot)-Narrative of the Expedition to China-London,

Henry Colbourn, 1842 (2 volumes).

BISHOP (C. T.); MORTON (G. S.); SAYERS (W.)-Hong Kong, Treaty Ports

and Postmarks, London, 1934.

bit of the BRITISH EMPIRE [Hong Kong]-Hong Kong, Kelly & Walsh,

Ltd, (nd) (1904?).

BLACKIE (W. J.)-Agriculture and animal husbandry ventures-Hong Kong,

Cathay Press, 1954.

BLAKE (C.)-Charles Elliot, 1801-85-London, 1961.

BLAKE, Lady-The position of women in China-Article in 'Nineteenth

Century,' LXXII.

†BLAKE (Sir Henry Arthur)-Bubonic Plague in Hong Kong-Hong Kong,

Noronha & Co, 1903.

-China-London, A. & C. Black, 1909.

BLOCKADE of the Port & Harbour of Hong Kong by the Hoppo-London,

Kent & Co, 1874.

        BLUNDEN (Edmund)-A Hong Kong House-London, Collins, 1962. ‡'BOK'-Corsairs of the China Seas-London, Herbert Jenkins, Ltd, 1936.

BONDFIELD (Rev G. H.) and BALL (J. Dyer)-A History of the Union Church,

Hong Kong Hong Kong, 'China Mail' Office, 1903.

BORGET (Auguste)-Sketches of China and the Chinese-London, Tilt & Bogue,

1842.

BOURNE (F. S. A.)-Report on the trade of central and southern China-

Washington, 1898.

BOWEN (Sir George Ferguson)-Thirty Years of Colonial Govern-

ment-London, Longmans & Green, 1880 (2 volumes).

BOWRING (Sir John)-Autobiographical Recollections of Sir John Bowring. With a Brief Memoir by L. B. Bowring-London, H. S. King & Co, 1877.

-The Flowery Scroll-London, Wm. H. Allen & Co, 1868.

BOXER (Baruch)-Ocean Shipping in Evolution of Hong Kong Chicago,

University of Chicago, 1961.

*+BOYCE (Sir Leslie)-Report of the United Kingdom Trade Mission to China,

1946-London, HM Stationery Office, 1948.

*BRAGA (J. M.)-Noticias de Macau. Special Supplement dedicated to Hong

Kong & Anglo-Portuguese Amity-Macau, 1951.

*

-(Editor)-Hong Kong Business Symposium (with many authori-

tative articles)-Hong Kong, 1957.

* Hong Kong and Macao: A Record of Good Fellowship-Hong Kong,

1960.

BIBLIOGRAPHY

361

BRAGA (J. P.) The Rights of Aliens in Hong Kong-Hong Kong, Noronha

& Co, 1895.

---Sir C. P. Chater: The Grand Old Man of Hong Kong-Hong

Kong, 1926.

-Portuguese Pioneering: 100 years of Hong Kong-Hong Kong, 1941. -The Portuguese in Hong Kong and Macao-Macau, 1944.

†BREEN (M. J.)-Hong Kong Trade Commission Inquiry--Sessional Paper

No 3 of 1935.

*BRISTOL (Horace)-Hong Kong Hong Kong, East-West Publishers,

1954.

*BRITISH DEPENDENCIES in the Far East, 1945-49-London,

HM Stationery Office, 1949.

BRITISH ECONOMIC MISSION to the Far East, 1930-31 (Report)-London,

HM Stationery Office, 1931.

BRITISH EMPIRE SERIES-India, Ceylon, Straits Settlements, British North

         Borneo, Hong Kong-London, Kegan Paul, Trench & Co, 1906. BROCKWAY (Alice P.)-A Trip to the Orient-Philadelphia, 1915.

BROOKE-POPHAM (Sir Robert)-Despatch by Air Chief Marshal Sir Robert Brooke-Popham on operations in the Far East from 17th October 1940 to 27th December 1941-(Supplement to the London Gazette of 20.1.48, No. 38183).

BROOMHALL (M.)--The Jubilee Story of the China Inland Mission---London,

Morgan and Scott, Ltd, 1915.

† BROWN (Robert E.)-The Hong Kong Typhoon and the Jesuit Observatories-

London, 1906.

      BROWN (Wenzell)-Hong Kong Aftermath-New York, Smith & Durrell, 1943. BROWN (W. T.)-Notes of Travel-London, 1882.

† BROWNE (F.)--Report on Opium, its nature, composition, preparation-Hong

Kong, 1908.

BRUCE (M.)-Hong Kong illustrated in a Series of Views-London, Maclure,

Macdonald & Macgregor Ltd, 1846.

BUNBURY (Rev G. A.)--Notes on Wild Life in Hong Kong and South China-

Hong Kong, St Paul's College Press, 1909.

BURFORD (R.)-Description of a View of the Island and Bay of Hong Kong-

London, J. Mitchell & Co, 1844.

*BURKHARDT, (Col V. R.) Chinese Creeds and Customs-Hong Kong, South China Morning Post Ltd, 1954 (and subsequent volumes).

*BURNEY (E.)-Report on Education in Hong Kong-Hong Kong, 1933.

BURNSIDE (W. M.)-How did the Japs Treat You?-1942 (np).

Buss (C. A.)-The Far East-London, 1955.

*BUTTERFLies of honG KONG-The Shell Co of Hong Kong Limited-

Hong Kong, 1960.

BUTTERS (H. R.)-Report on Labour and Labour Conditions in Hong Kong-

Sessional Paper No 3 of 1939.

Cable (B.)-A hundred year history of the P. & 0.-1837-1938, London, 1940.

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BIBLIOGRAPHY

†CAINE (S.)Water Finances. Memorandum by Financial Secretary-Hong

Kong, 1938.

-Report of the Committee on Rentals for Government Quarters-Hong

Kong, 1938.

CALAMITOUS TYPHOON (The) at Hong Kong, 18th September 1906, being a full Account of the Disaster, with 20 illustrations-Hong Kong, Hong Kong Daily Press, 1906.

CALDWELL (D. R.)-A Vindication of the Character of the Undersigned-Hong

Kong, Noronha's Office, 1860.

CALTHORP (H. G.) and GOMPERTZ (H. H. J.)-The Hong Kong Law Reports--

Hong Kong, 1905-8 (3 volumes).

*CAMERON (N.)-To the East a Phoenix-London, Hutchinson, 1960.

CAMPBELL (N.)-Libraries in Hong Kong-Article in the 'Library World',

Vol 44, pp 12-13, January 1942.

CANTLIE (Dr James)-Hong Kong-Contribution to 'British Empire Series',

Vol I, pp 498-531.

† Leprosy in Hong Kong-Hong Kong, Kelly & Walsh, Ltd, 1890.

       CANTLIE (N.) and SEAVER (G.) Sir James Cantlie-London, John Murray, 1939. †CANTON-KOWLOON Railway Agreement-Hong Kong, 1907.

*CAREW (T.)-The Fall of Hong Kong-London, Anthony Blond, 1960. †CARRIE (W. J.)-Report of the Census of the Colony of Hong Kong, taken on

the night of March 7, 1931-Hong Kong, 1931.

-Report of the Committee to consider the formation of a Travel Association and to make recommendations for the development of the Tourist Traffic- Hong Kong, 1935.

-Report of the Shanghai Refugees Committee-Hong Kong, 1938.

CARRINGTON (C. E.)-The British Overseas-Cambridge University

Press, 1950.

CASSERLY (Cap. G.) The Land of the Boxers: or China under the Allies-

London, Longmans, Green & Co, 1903.

*Catholic Hong Kong: A hundred years of Missionary activity-Hong Kong,

Catholic Press Bureau (nd) 1958.

CENTRAL SCHOOL, can it justify its raison d'etre?-Hong Kong, Noronha

& Sons, 1877.

CHADWICK (0.)-Report on the Water-Supply of Hong Kong Hong Kong,

Noronha & Co, 1902.

CHALMERS (J.)-An English and Cantonese Dictionary-Hong Kong, Printed

at the London Missionary Society's Press, 1859.

-Historical Sketch of the Alice Memorial Hospital-Hong Kong, 'China

Mail' Office, 1887.

CHAN (Peter P. F.)-A Report on the European Common Market-Hong Kong,

Dah Chung Co, 1961.

CHAN

     YEUNG-Kwong-Cantonese for beginners-Hong Kong, Man Sang Printers, 1946.

-Everybody's Cantonese: combined progressive and beginner's course-

Hong Kong, Man Sang Printers, 1947.

CHANG CHIA-CHU--China Tung Oil and its future-Hong Kong (nd) 1940.

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Alleged Chinese Slavery in Hong Kong-Hong Kong, 1882.

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Papers on the subject of Beri-Beri in Hong Kong-Hong Kong, 1889. Report of the Commissioners to enquire into the working of the Hong Kong Observatory-Hong Kong, 1890.

Fifty Years of Progress. The Jubilee of Hong Kong as a British Crown Colony, being an Historical Sketch-Hong Kong, 1891.

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    Special Committee on Po-Leung-Kuk, or Society for Protection of Women and Girls-Hong Kong, 1893.

Correspondence relative to

1894.

Bubonic Plague at Hongkong-London,

Report of the Committee to enquire into the Expenditure of the Colony- Hong Kong, 1894.

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Papers on a Petition addressed to the House of Commons praying for an amendment of the Constitution-Hong Kong, 1896.

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Report of the Committee to enquire into Flogging in Victoria Gaol- Hong Kong, 1896.

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374

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Papers relating to Extension of the Colony of Hong Kong Hong Kong, 1899.

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Correspondence on Sanitary Conditions-Hong Kong, 1901. Sanitary Conditions and Memorandum-Hong Kong, 1901.

Further Correspondence respecting the Disturbances in China-London, 1901.

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375

Report of the Committee appointed by HE the Governor to consider the Colony's Position with regard to the Obligations incurred under the International Opium Convention, 1912-Hong Kong, 1924.

Communiqués and Statements in Connection with the Conference for Settlement of Chinese-British Disputes in the Liang-Kuang Provinces-- Hong Kong, 1926.

Traffic in Women and Children. Annual Report from the Hong Kong Government-Geneva, 1926.

Correspondence in connection with a Speech reported in the Man Kwok Yat Po to have been made by Mr Sun Fo-Hong Kong, 1926.

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Report of the 'Sunning' Piracy Commission--Hong Kong, 1927.

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Information collected

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376

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Report of the Commission on Mui Tsai in Hong Kong and Malaya- London, 1937.

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Malaya-London, 1937.

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WOOLF (Bella Sidney)-Chips of China-Hong Kong, 1930.

WORMAL (W. G.)-A Report on Post-war Movements in the Cost of Living

in Hong Kong-Hong Kong, 1950.

WRIGHT (A.) & CARTWRIGHT (H.)-Twentieth Century Impressions of Hong Kong, Shanghai, and other Treaty Ports of China- London, Lloyd's Publishing Co Ltd, 1908.

WRIGHT (S. F.)-Hong Kong and the Chinese Customs-Shanghai, 1930. YAP (P. M.)-Suicide in Hong Kong, with special reference to attempted

suicide-Hong Kong, University Press, 1958.

YOUNGHUSBAND (Eileen L.)-Training for Social Work in Hong Kong-Hong

Kong, 1960.

YUAN YING-TSAI-A guide to Cantonese self-taught-Hong Kong, 1954.

ZEN I-TU-Chinese railways and British interests, 1898-1911-New York, 1954.

Appendices

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APPENDICES

Appendix I

(Chapter 3: Employment)

Industrial undertakings and persons employed in main industrial groups

393

United Nations

standard

industrial

classification

Industry

Industrial undertakings

Persons employed

numbers

1961

1962

1961

1962

12

Metal mining

2

2

668

630

14

Clay pits and quarrying

71

66

1,579

1,546

19

Non-metallic mining

11

10

79

96

20

Food manufacture

408

458

8,378

9,578

21

Beverages

25

25

1,405

1,974

23

24

25

26

27

28

29

31

2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 0 2 2

22

Tobacco manufacture

5

1,359

1,266

Manufacture of textiles

876

964

68,825

71,088

Footwear and wearing apparel

840

956

45,389

52,582

Manufacture of wood and cork

199

237

3,208

3,885

Manufacture of furniture

160

177

2,780

3,432

Paper

101

137

1,778

2,220

Printing and publishing

708

761

11,079

11,765

Leather and leather products

19

23

235

322

30

Rubber products

132

159

7,453

8,299

Chemicals and chemical products

123

125

3,625

3,519

32

Products of petroleum and coal

4

3

34

19

33

Non-metallic mineral products

88

87

2,173

2,204

34

Basic metal industries

84

95

2,819

3,260

35

Metal products

679

845

28,026

31,251

36

Manufacture of machinery

341

410

5,086

6,102

37

Electrical apparatus

135

162

6,480

7,843

38

Transport equipment

101

109

16,015

13,907

39

Miscellaneous manufacturing industries

959

1,204

32,741

38,287

40

Construction

3

16

51

Electricity and gas

7

7

2,633

3,275

61

Wholesale and retail trade

6

5

933

653

71

Transport

20

21

8,622

9,430

72

Storage and warehousing

24

25

3,803

4,068

73

Telephones

1

1

1,510

2,047

84

Motion picture industry

8

10

647

891

85

Laundry and dry cleaning

219

215

2,351

2,458

Totals

6,359

7,305 271,729 297,897

* Statistics relating to the construction industry have been re-classified.

394

APPENDICES

Appendix I-Contd

(Chapter 3: Employment)

Industrial undertakings and persons employed in selected industries in some main industrial groups

United Nations standard

industrial

classification

numbers

Industry

Industrial undertakings

Persons employed

1961

1962

1961

1962

23

Manufacture of textiles

Cotton spinning

35

35

20,759

19,269

Wool spinning

2

2

1,065

1,164

24

24

31

Cotton weaving

Finishing

Knitting

Cordage, rope and twine

Footwear and wearing apparel

Footwear except rubber footwear

Wearing apparel except footwear

Made-up textile goods except wearing

apparel

Chemicals and chemical products

259

263

27,276

25,619

140

146

4,195

5,209

299

353

11,092

14.679

31

32

548

636

w

67

730

43

៥ ថ្មី១

1,103

1,297

854

42,517

50,244

1,769

1,041

Medicines

Cosmetics

Paints and lacquers

*53-

34

37

803

733

7

235

211

13

11

851

846

1

1

286

286

34

Matches

Basic metal industries

Rolling mills

35

Metal products

Tin cans

Enamelware

Vacuum flasks

Electro-plating

Needles

20

20

22

223

1,601

1,885

46

20

9

80

6

Hurricane lamps

2

Hand torch cases

42

43

Pressure stoves and lanterns

23

Wrist watch bands

61

GMANGINO

58

1,046

1,222

21

4,491

4,337

9

1,241

1,257

94

1,291

1,391

5

746

827

2

292

345

6,394

7,072

25

1,969

1,730

1,927

2,704

37

Electrical apparatus

Hand torch bulbs

Torch batteries

000

50

46

12

1123

1,873

1,940

12

1,931

1,801

38

Transport equipment

Shipbuilding and repairing

Shipbreaking

Aircraft repair

222

29

31

23

MAN

10,716

9.515

9

1,945

1,051

2

1,587

1,397

39

Miscellaneous manufacturing industries

Artificial pearls

39

44

1,646

2,149

Buttons

29

35

935

1,040

Bakelite ware

23

26

637

772

Plastic ware

Plastic flowers

Fountain pens

71

Transport

Tramways

Motor buses

500

660

13,488

16,896

263

317

12,566

13.525

7

7

263

254

::

1

1

1,628

1,616

3

3

6,751

7,524

395

January

February

APPENDICES

Appendix I-Contd

(Chapter 3: Employment)

Monthly Retail Price Indices, 1962

March

April

May

June

July

August

September

October ..

November

December

:

:

:

:

:

:

:

:

:

:

:

:

:

123

122

119

120

118

118

120

:

:

:

:

118

120

121

120

120

9,007

178

5,689

80

9,007*

Industrial and occupational accidents, 1962

Persons involved

Deaths

Persons injured in registrable workplaces

Deaths in registrable workplaces

Total accidents reported and investigated (1961 total 7,908).

Accident rate per 1,000 industrial workers (1961 rate 17.27)

Fatality rate per 1,000 industrial workers

(1961 rate 0.162)

19.10

0.268

* An accident involving two or more persons is now recorded as a separate accident for

each person involved.

396

APPENDICES

Appendix I-Contd

(Chapter 3: Employment)

Factory registrations and inspections, 1962

Applications received for registration

Registration certificates issued

Applications refused (premises unsuitable)

813

825

3

Applications withdrawn

138

Factories closed and Registration Certificates surrendered

1,512

Places of employment registered at 31st December

4,482

*Factories 'recorded' at 31st December

2,823

Routine visits by labour inspectorate for enforcement of safety, health

and welfare provisions

39,861

Inspections in connexion with industrial or occupational accidents and

workmen's compensation

1,234

Visits for wage inquiries

208

Visits about employment of women and young persons

21,842

Night visits to enforce regulations on employing women and young

persons at prohibited hours

8,805

     • Undertakings which cannot be registered, but kept under observation because 15-19 workers employed, or women and young persons, or for industrial health and safety

reasons.

APPENDICES

Appendix II

(Chapter 4: Public Finances)

Revenue

397

1960-1

1961-2

1962-3

Head of Revenue

Actual

Estimated

$

$

Actual

$

Estimated

$

1.

Duties

2.

Rates

3. Internal Revenue

4. Licences and Franchises

5. Fines and Forfeitures

166,993,904 175,600,000 175,799,304 185,800,000

100,716,312 115,620,000 116,298,736 128,550,000

237,150,260 271,350,000 319,656,541 326,300,000

50,835,951 46,456,400 51,260,346 55,375,000

9,686,991 4,250,000 6,160,661

4,795,000

6. Fees of Court or Office

70,195,450 70,154,900 79,214,784 83,867,000

7. Water Revenue

8. Post Office

9. Kowloon-Canton Railway

10. Revenue from Lands, Interest,

Rents, etc

11.

Land Sales

12. Colonial Development and Welfare

Grants

13. Loans from United Kingdom

Government

20,476,163 23,710,000 25,565,176 24,710,000

63,327,049 62,695,300 82,006,990 64,138,000

9,266,412 9,029,000

9,100,063

9,112,000

61,808,246 59,112,400 71,244,676 71,105,000

790,456,738 837,978,000 936,307,277 953,752,000

62,537,355 68,501,000 90,274,650 106,006,000

35,555

425,500

309,197

5,000

4,224,000

14. World Refugee Year Grants

1,980,483

6,825,700 3,556,756 2,737,000

Total Revenue

859,234,131

913,730,200 1,030,447,880 1,062,500,000

398

APPENDICES

Appendix II - Contd

(Chapter 4: Public Finances)

Expenditure

1960-1

1961-2

1962-3

Head of Expenditure

Actual

Estimated

Actual

Estimated

$

$

$

$

21.

HE the Governor's Establishment

596,319

511,900

511,601

511,700

22.

Agriculture and Forestry

Department

5,394,592

6,488,700

5,702,457

7,574,300

23.

Audit Department

1,039,127

1,140,600

1,106,357

1,174,000

24. Census Department

3,295,791

1,102,900

989,405

72,300

25. Civil Aviation Department

7,260,946

8,758,100

7,524,705

8,434,900

26.

Colonial Secretariat and Legislature

4,738,220

5,346,600

5,135,993

5,533,000

27. Commerce and Industry

Department

7,588,646

9,158,500

8,368,362 9,956,600

28. Co-operative Development and Fisheries Department

1,390,294

2,512,400

1,936,434

2,538,200

29. Defence: RHKDF Headquarters

30. Defence: HK Regiment (The

Volunteers)

1,914,581

2,277,500

2,006,801

{

155,200

2,056,500

31. Defence: Hong Kong Royal

Naval Reserve

1,036,458

1,064,300

929,634

1,008,000

333 33

32.

Defence: Hong Kong Auxiliary

Air Force

428,197

499,600

445,437

531,800

33. Defence: Essential Services

89,196

Corps and

179,500

132,962

159,500

Directorate of Manpower

78,779

34. Defence: Auxiliary Fire Service

287,285

463,900

373,069

519,500

35. Defence: Service

Auxiliary Medical

1,025,689

36. Defence:

Civil Aid Services

1,890,119

1,106,100 1,078,133 1,268,700

2,067,200 1,857,642 2,160,100

37. Defence:

Office

Registration of Persons

..

1,372,804

38. Defence:

Miscellaneous Measures

24,625,620

39.

Education Department

42,405,553

40.

Fire Services Department

7,362,265

41.

Immigration Department

42. Information Services Department

1,528,439

43. Inland Revenue Department

4,109,308

44. Judiciary

45.

Kowloon-Canton Railway

46. Labour Department:

1,498,800 1,455,559 1,631,600

26,561,000 27,754,285 26,540,000

51,586,300 48,254,332 59,247,000

12,743,200 9,753,688 13,435,400

2,010,900 1,984,909 2,554,100

2,290,500 2,014,166 2,475,200

4,438,100 4,207,264 4,638,900

4,150,606 4,895,300 4,538,774 5,315,800

5,153,659 13,314,500

8,653,797

16,326,800

Labour

47.

Division

Labour Department:

Division

1,983,779

2,330,000

2,079,911

2,481,100

Mines

48. Legal Department

49. Marine Department

114,646

114,500

1,210,361 1,409,900

11,083,238 17,958,600 12,982,113

111,324

221,600

1,211,915

1,563,500

17,245,100

50. Medical and Health Department

51. Miscellaneous Services

52. New Territories Administration

6,050,512 8,013,500 7,193,089 8,960,400

56,573,091 64,152,100 64,064,336

23,670,457 19,969,000 18,211,779

72,176,900

19,969,200

APPENDICES

Appendix II-Contd

(Chapter 4: Public Finances)

Expenditure

399

1960-1

1961-2

Head of Expenditure

Actual

Estimated

Actual

$

$

$

1962-3

Estimated

$

53. Pensions

23,071,667

23,161,000

22,958,456

24,880,000

54. Police Force:

Hong Kong Police

61,091,017

68,096,800

55. Police Force:

Auxiliary Police ..

1,275,482

1,474,700

61,457,247 71,316,100

1,342,900

56. Post Office

26,540,502

30,251,500

1,062,206

29,772,587 35,353,400

57.

Printing Department

3,215,054

3,832,600

3,757,933

4,528,200

58. Prisons Department

10,357,947

11,887,000

11,176,550

12,238,900

59. Public Debt

60. Public Enquiry Service

61. Public Services Commission

62. Public Works Department

63. Public Works Recurrent

64. Public Works Non-Recurrent

2,729,670

5,922,310

5,921,340

5,916,310

13,901

164,800

188,959

287,800

56,131

58,800

52,627

54,700

40,396,978

45,492,700

43,255,451

47,152,100

34,036,228 41,025,000

40,210,444 45,122,000

239,066,044

353,360,900 281,560,376

437,833,800

65.

Radio Hong Kong

3,067,552

3,380,700

3,239,475

3,746,300

66. Rating and Valuation Department

1,082,366

1,423,900

1,297,338

1,691,900

67. Registrar General's Department

1,728,644

2,111,000

1,974,001

2,531,200

68. Registry of Trade Unions ..

239,299

249,200

239,586

261,900

69.

Resettlement Department

9,605,904

12,064,400

10,951,818

13,225,200

70. Royal Observatory

2,152,329

2,385,600

2,244,023

2,591,300

71.

Secretariat for Chinese Affairs

1,347,105

1,553,500

1,436,359

1,576,600

District Watch Force

72. Social Welfare Department

6,460,094

7,393,400

6,967,319 8,253,100

73. Stores Department

11,163,517

11,129,700

13,295,601

13,519,600

74.

Subventions:

Social Welfare

3,432,337

75. Subventions:

Medical

76. Subventions:

Education

77.

Subventions:

Miscellaneous

78. Treasury

4,108,800 3,621,530 4,368,200

21,910,889 25,247,200 25,009,269 27,792,900

65,255,638 85,968,800 81,466,464 106,751,000

2,317,715 3,213,400 3,397,680

2,787,603 3,040,100 2,939,348

3,411,700

3,061,300

79.

Urban Services Department and

Urban Council

30,534,618

38,669,200 33,455,207

38,865,000

80. Urban Services Department:

City Hall

1,598,000

81. Urban Services Department:

Housing Division

1,128,464 1,660,500

1,271,418 2,441,500

82. Urban Services Department:

New Territories Division

Quartering Office

1,941,844 2,827,700 2,411,899

5,813,485

3,489,800

83.

Colonial Development and

Welfare Schemes

84. World Refugee Year Schemes

Total Expenditure

843,268,601 1,067,119,210

949,162,744 1,223,639,610

48,545

1,980,483

658,300

6,825,700

485,737

3,556,756

10,000

2,786,500

845,297,629 1,074,603,210

953,205,237 1,226,436,110

400

APPENDICES

APPENDICES

401

Appendix

(Chapter 4: Public

Statement of Assets and

II- Contd

Finances)

Liabilities as at 31st March 1962

LIABILITIES

$

¢

DEPOSITS:

Contributions towards Building Projects

Control of Publications

Government Servants

Miscellaneous

$ ¢

ASSETS

CASH:

$ ¢

5,554,613.39

In Hand Treasury

$ 2,076,108.36

850,000.00

Other Government

Departments

2,198,817.94

Crown Agents (£401.15.6) ..

58,513.34

6,428.40

2,141,050.10

26,295,627.90

At Bank: Treasury

84,617,684.21

Motor Vehicles Insurance Third Party

Public Works Department-Private Works Account

2,637,358.25

Water Deposits

11,545,432.36

49,281,849.84

Other Administrations

122,148.41

FIXED DEPOSITS

Colonial Development and Welfare Schemes

101,483.98

49,505,482.23

200,000.00

Other Government

Departments

1,872,135.38

86,489,819.59

Joint Consolidated Fund (£300,000.0.0)

4,800,000.00

93,430,869.69

110,653,400.00

204,084,269.69

SUSPENSE-Kowloon-Canton Railway

IMPRESTS

31,261.62

421,478.61

REVENUE EQUALIZATION FUND

138,024,760.94

INVESTMENTS:

On account of Surplus Balances:

Federation of Malaya 44% Stock 1964-74

(M$4,600,000.00)

8,586,666.67

GENERAL REVENUE BALANCE:

Federation of Malaya 4% Stock 1965-75

(M$5,838,000.00)

10,897,600.00

Balance 1st April 1961

412,357,061.93

Add Surplus from 1st April 1961 to 31st March 1962

77,242,643.42

Hong Kong Government 34% Dollar Loan 1940

Sterling Investments (£26,524,599.14.6)

740,245.00

424,393,595.60

444,618,107.27

489,599,705.35

Add Appreciation on Investments

3,784,227.38

493,383,932.73

CURRENT ACCOUNT-Postmaster General

3,527,225.01

ADVANCES:

Notes:

Total

$680,945,437.52

Personal

Miscellaneous

Other Administrations

Colonial Development and Welfare Schemes Development Loan Fund

$5,305,592.84

300,820.70

5,606,413.54

970,837.35

26,897.00

21,690,209.05

28,294,356.94

Total

Government holds 16,290 shares at a

nominal 168 shares at a nominal value of $10 per share at a nominal value of 500 YEN per share in There is a contingent liability of $555,538.23 in

value of $100 per share in Associated Properties Limited,

in South China Building Materials Limited, and 1,470 shares Helm Brothers Limited (Yokohama).

respect of the $1 Note Security Fund.

$680,945,437.52

402

APPENDICES

APPENDICES

403

Appendix

(Chapter 4: Public

Comparative Statement of Recurrent

II - Contd

Finances)

and Capital Income and Expenditure

Recurrent

Actual 1958-9 $

Actual 1959-60 $

Actual 1960-1 $

Actual 1961-2 $

Estimate 1962-3 $

Recurrent Revenue

567,305,785 616,194,125 771,412,163 911,129,114 931,115,000

567,305,785 616,194,125 771,412,163 911,129,114 931,115,000

Actual 1958-9 $

Actual 1959-60 $

Actual 1960-1 $

Actual 1961-2 $

Estimate 1962-3 $

Personal Emoluments

Pensions

Departmental Recurrent

Expenditure (Excluding Unallocated Stores)

Recurrent Subventions

Public Works Recurrent

Miscellaneous Recurrent

Expenditure

Unallocated Stores Accounts

Transfer to Capital Revenue

Surplus

189,538,481 247,722,213 285,661,843 309,258,443 353,809,600

15,173,952 16,423,189 23,071,667 22,958,456 24,880,000

81,437,957 92,219,545 107,634,594 108,330,597 129,457,200

49,424,785 68,783,335 80,509,254 98,250,294 119,935,700

29,092,211 39,922,440 34,036,228 40,210,444 45,122,000

30,492,540 40,139,493 38,002,642 49,793,617 51,329,510

Cr. 10,628,468 Cr. 1,662,529 Cr. 247,963 1,882,243 1,810,000

384,531,458 503,547,686 568,668,265 630,684,094 726,344,010

143,396,032 112,646,439 188,807,396 203,202,377 204,770,990

39,378,295

13,936,502 77,242,643

567,305,785 616,194,125 771,412,163 911,129,114 931,115,000

Estate Duty

Excess Stamp Duty (3% on

Assignments)

Government Schemes

Capital

14,394,473 11,559,372 11,658,702 16,779,914 16,000,000

3,174,660 2,991,018 5,742,513 7,794,738 4,000,000

3,146,771 2,933,515 1,563,360

Departmental Special

Expenditure

Capital Subventions

18,603,808 15,876,517 10,526,177 19,579,838 35,977,700

10,641,434 9,857,853 12,407,325 15,244,649 22,388,100

142,701,934 171,429,329 239,066,044 281,560,376 437,833,800

Private Contributions towards

Loan Repayments

Land Sales

523,511

878,882 4,494,564

80,000

80,000

30,920,067 22,331,958 62,537,355 90,274,650

2,557,000

80,000

106,006,000

Public Works Non-Recurrent ..

Colonial Development and

Welfare Schemes

2,457,768 1,540,657

48,545

485,737

10,000

Miscellaneous Capital

Expenditure

2,621,965

Colonial Development and

Welfare Grants

1,193,893

World Refugee Year Grants

Loans from United Kingdom

Government

778,068

623,633

35,555 309,197

5,000

1,980,483 3,556,756 2,737,000

World Refugee Year Schemes

2,048,321 12,590,790 2,093,787 1,086,000

623,633 1,980,483 3,556,756 2,786,500

Transfers to Development Loan

Fund, etc

28,400,000

5,030,000

10,000

10,000

8,322,131

2,728,749 4,224,000

62,030,877

48,440,877 87,821,968 119,318,766 131,385,000

Contribution from Recurrent

Revenue

143,396,032

Deficit

112,646,439 188,807,396 203,202,377 204,770,990

45,318,994

163,936,110

205,426,909 206,406,310 276,629,364 322,521,143 500,092,100

205,426,909

206,406,310 276,629,364 322,521,143 500,092,100

404

APPENDICES

Appendix II-Contd

(Chapter 4: Public Finances)

Public Debt of the Colony at 31st March 1962

$

34% Dollar Loan 1940

34% Rehabilitation Loan 1947-8

1,888,000.00

46,666,000.00

Kai Tak Airport Development Loan

44,800,000.00

Colonial Development and Welfare Fund Loan

429,600.00

93,783,600.00

1. Tobacco

Revenue from Duties and Licence Fees

1959-60

1960-1

Actual

Revenue

$

Actual Revenue $

1961-2 Actual

1962-3 Estimate

Revenue $

$

54,568,614 79,097,971 77,122,064 78,000,000

2. Hydrocarbon Oil

32,018,548 44,210,236 51,999,337 55,000,000

3. Liquor

4. Table Waters

5. Methyl Alcohol

31,143,111 40,083,829 42,534,669 48,900,000

3,132,008

3,590,862 4,127,983 3,900,000

9,277

11,006

15,251

6.

Toilet Preparations and Proprietary

Medicines

3,738

982

120,875,296

166,994,886 175,799,304 185,800,000

Licence fees under Dutiable

Commodities Ordinance

1,827,158 1,764,577 1,841,715 1,900,000

APPENDICES

Appendix II - Contd

(Chapter 4: Public Finances)

Colonial Development and Welfare

405

         Details of the locally administered schemes in progress during 1962 toward which grants are made by the United Kingdom Government.

Scheme Number

Title

Estimated Expenditure up to 31st December 1962

Maximum grant available

£

42

£

Development Schemes

D 2487

Construction of

 Hong Kong University (administered by University)

pathology

building

78,309(1)

80,781

D 2539

Development

schemes in the New

Territories

257,724(2)

263,500

D 2990

Site development for low-cost housing,

So Uk

..

83,697(3)

88,875

D 3271

D 4115

Construction of new library and students' union building at the University of Hong Kong (administered by University)

Aeronautical Telecommunications

200,000(4)

200,000

21,200(5)

21,200

D 4745

Construction of new pre-clinical building at the University of Hong Kong (administered by University)

15,000(6)

78,125

£655,930

£732,481

Notes: (1) This scheme has been completed and the account finalized.

(2) Colonial Development and Welfare Scheme share of estimated expenditure: this

varies with the items comprising the scheme as follows:

Roads on South Lantau

Six feeder roads

Piers in the New Territories

Irrigation schemes

Survey party ..

£

£

42% of 137,386 =

57,702

45% of 158,595 =

85% of 26,840 :

85% of 119,960 101,966

85% of 4,557 = 3,874

£257,724

71,368

22,814

(3) Colonial Development and Welfare Scheme share (75%) of estimated expenditure.

This scheme has been completed and the account finalized.

(4) Colonial Development and Welfare Scheme share (78%) of estimated expenditure. (5) Colonial Development and Welfare Scheme share (59%) of estimated expenditure. (6) Colonial Development and Welfare Scheme share (28%) of estimated expenditure.

406

APPENDICES

DETAILS

LOAN PROJECTS

APPENDICES

407

Appendix

(Chapter 4: Public

Development

Statement of

II-Contd

Finances)

Loan Fund

Approved Projects

Allocation of Funds

$

Total Expenditure

to 31.3.62

$

Total Repayments to 31.3.62

$

Balances at 31.3.62

I-Housing Loans

1. Housing Authority*

2. Hong Kong Housing Society:

(a) Sheung Li Uk Scheme

(b) Hung Hom Scheme

(c) Healthy Village Scheme

(d) Sheung Li Uk Scheme Extension

(e) Tsuen Wan Scheme I

(f) Kwun Tong Scheme

(g) Tanner Hill Scheme

(h) Kai Tak Scheme I

(i) Shau Kei Wan Scheme

(

Aberdeen Scheme

(k) Kai Tak Scheme II

(1) Healthy Village Scheme Extension

(m) Kwun Tong Scheme Extension

(n) Tsuen Wan Scheme II

(0) Tsuen Wan Scheme III

3. Local Government Officers

4.

Shek Wu Hui Building Loans

5. Hong Kong Settlers Housing Corporation, Ltd

:

:

$

156,000,000

110,962,943.86

110,962,943.86

2,136,851

2,136,851.25

267,785.28

1,869,065.97

8,000,000

8,000,000.00

337,616.20

7,662,383.80

6,000,000

6,000,000.00

169,750.48

5,830,249.52

535,000

535,000.00

19,088.76

515,911.24

2,730,000

2,730,000.00

73,738.36

2,656,261.64

6,353,200

6,353,194.09

69,389.78

6,283,804.31

5,250,000

5,250,000.00

25,351.83

5,224,648.17

1,931,400

1,931,354.00

23,299.14

1,908,054.86

11,500,000

6,500,000.00

6,500,000.00

8,000,000

6,500,000

1,000,000.00

1,000,000.00

2,000,000

2,000,000.00

6.898.45

1,993,101.55

9,000,000

7,500,000

5,000,000

7,500,000

125,000,000

85,765,272.74

630,000 10,000,000

381,566,451

40,000,000

210,000.00 500,000.00

3,312,995.38 71,858.80

82,452,277.36 138,141.20

500,000.00

239,874,615.94

27,881,106.20

4,377,772.46

5,059,010.31

235,496,843.48

22,822,095.89

3,750,000

3,750,000.00

277,780.00

3,472,220.00

2,000,000

2.000.000.00

166,274.28

1,833,725.72

5,750,000

5,750,000.00

444,054.28

5,305,945.72

II-Educational Loans

III-Medical Loans

1. The Hong Kong Anti-Tuberculosis Association

2. The Mother Superioress of the Daughters of Charity of the Canossian Institute

IV-Miscellaneous Loans

1. Hong Kong Football Club

2. South China Athletic Association

3.

4.

Chinese Civil Servants' Association

Kowloon-Canton Railway Athletic and Social Club:

(a) First Loan

(b) Second Loan

5. Good Shepherd Sisters

VI-Fisheries Loans*

:

:::

:

:

:::

550,000

550,000.00

250,285.71

299,714.29

600,000

600,000.00

182,116.42

417,883.58

150,000

150,000.00

27,671.78

122,328.22

11.092

11,092.00

7,080.00

4,012.00

3,438 121,844

1,436,374

5,000,000

433,752,825

3,437.50 121,843.15

1,436,372.65

1,700,801.00

276,642,895.79

1,875.00

1,562,50

60,000.00

529,028.91

61,843.15

10,409,865.96

907,343.74

1,700,801.00

266,233,029.83

8,313,000

Grand Total

442,065,825

8,280,367.36

284,923,263.15

8,280,367.36

10,409,865.96

274,513,397.19

Note:

*These loans constitute revolving funds and are

therefore now shown net after the deduction of repayments.

Loan Projects Total

OTHER PROJECTS

Kwun Tong Reclamation Stages I and II ..

V-Reclamations

1.

408

APPENDICES

Appendix

(Chapter 4: Public

Development

Balance Sheet as at

II- Contd

Finances)

Loan Fund

31st March 1962

LIABILITIES

APPENDICES

409

ASSETS

$ 8,280,367.36

$235,496,843.48

22,822.095.89

5,305,945.72

907,343.74

1,700,801.00

266,233,029.83

:

:

:

$248,779,898.78

16,950,651.57

10,093,306.16

275,823,856.51

96,600.50

$275,920,457.01

9

Kwun Tong Reclamation: Cost

Projects:

Housing Loans

Educational Loans

Medical Loans

Miscellaneous Loans

Fisheries Loans

Investments

Cash:

In Hand

Crown Agents (£445.18.11)

At Bank

:

Joint Consolidated Fund (£62,000.0.0)

Fund Account:

Balance as at 1st April 1961 (including proceeds of

land sales, Kwun Tong Reclamation, $20,404,899.56).

Proceeds of Land Sales, Kwun Tong Reclamation,

1st April 1961 to 31st March 1962

Revenue Account

Add:

Appreciation on Investments

Deposits-Hong Kong Government

21,690,209.0$

$297,610,666.06

Summary of Receipts and

1. Receipts:

Loan repayments

Interest on Loans

Interest on Investments and Balances

Interest on Land sales premia

Land sales premia, Kwun Tong Reclamation

Profit on realization of investments

:

:

:

:

:

2. Payments:

Loans

Kwun Tong reclamation-expenditure

3. DEFICIT met from the Fund's Balances ..

LESS

:

Payments for 1961-2

:

.

17,447,903.43

$ 60,000.00

7,135.14

4,590,230.30

992,000.00

5,649,365.44

$297,610,666.06

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

:

$ 4,284,106

7,695,870

882,750

1,469,956

16,950,652

:

:

:

:

:

44,730

$31,328,064

65,126,441

15,472

65,141,913

$33,813,849

410

APPENDICES

Date

31.12.1955.

31.12.1956 ..

31.12.1957

31.12.1958

31.12.1959 ..

31.12.1960..

31.12.1961 ..

31.12.1962 ..

Date

Appendia

III

(Chapter 5: Currency

and Banking)

Currency and

Currency in Circulation

Banking Statistics and Bank Deposits

APPENDICES

411

Number of reporting banks

Notes and coins in circulation. (HK$ million)

Deposits (HK$ million)

Index of Deposits

31st December_1955=100

Total

Demand

Time

Savings

Total

Demand

Time

Savings

:

:

31.12.1955 ..

31.12.1956..

31.12.1957

31.12.1958 ..

31.12.1959.

31.12.1960

31.12.1961 ..

31.12.1962..

:

34

771.7

1,137

852

152

133

100

100

100

100

34

783.3

1,267

928

173

166

111

109

114

125

35

812.6

1,412

955

267

190

124

112

176

143

36

827.6

1,583

988

351

244

139

116

231

183

41

896.2

2,056

1,205

482

369

181

141

317

277

47

984.0

2,682

1,393

752

537

236

163

495

404

59

1,026.7

3,367

1,470

1,234

663

296

173

812

498

63

1,123.7

4,311

1,664

1,768

879

379

195

1,163

661

Number of reporting banks

Cash (i.e. legal tender notes and

coins in hand) (HK$ million)

Banking

NET balances with other banks (including Head Offices or Branches outside Hong Kong)

& other short term claims (HK$ million)

:

:

Assets

Loans and Advances (HK$ million)

Investments (HK$ million)

Index of Loans and Advances 31st December 1955=100

'Liquidity Ratio' (i.e. cash and net balances with other banks expressed as percentage of total deposits)

34

144

12.7%

459

40.4%

632

55.6%

96

8.4%

100

53.3%

34

97

7.7%

541

42.7%

769

60.7%

98

7.7%

122

50.4%

35

118

8.4%

578

40.9%

865

61.3%

101

7.2%

137

49.3%

36

84

5.3%

730

46.1%

919

58.1%

121

7.6%

145

51.4%

41

86

4.2%

775

37.7%

1,373

66.8%

133 6.5%

217

41.9%

47

136

5.1%

930

34.6%

1,720

64.1%

166

6.2%

272

39.7%

59

114

3.4%

1,041

30.9%

2,334

69.3%

232 6.9%

369

34.3%

63

162

3.8%

1,482

34.4%

2,849

66.1%

191

4.4%

451

38.1%

Figures in Italics =

percentage of total deposits.

412

APPENDICES

Appendix III-Contd

(Chapter 5: Currency and Banking)

Authorized Foreign Exchange Banks

American Express Company, Inc, The

Bangkok Bank Ltd

Bank of America

Bank of Canton, Ltd, The

Bank of China

Bank of Communications

Bank of East Asia, Ltd, The

Bank of India Ltd, The

Bank of Korea, The

Bank of Tokyo, Ltd, The

Banque Belge pour l'Etranger (Extreme-Orient) SA

Banque de l'Indochine

Banque Nationale pour le Commerce et l'Industrie

Chartered Bank, The

Chekiang First Bank of Commerce (Hongkong) Ltd, The

China & South Sea Bank, Ltd, The

China State Bank, Ltd, The

Chiyu Banking Corporation, Ltd

Chung Khiaw Bank, Ltd

Thos Cook & Son (Continental and Overseas) Ltd

Deutsch-Asiatische Bank

First National City Bank

Hongkong Chinese Bank, Ltd, The

Hong Kong Metropolitan Bank Limited

Hongkong and Shanghai Banking Corporation, The

Hong Kong & Swatow Commercial Bank, Ltd

Indian Overseas Bank, Ltd, The

Kincheng Banking Corporation

Kwong On Bank, Ltd

Malayan Banking Ltd

Mercantile Bank Ltd

Nanyang Commercial Bank, Ltd

National Bank of Pakistan

National Commercial Bank, Ltd, The

Nationale Handelsbank NV

Nederlandsche Handel-Maatschappij, NV (Netherlands Trading Society)

Oversea-Chinese Banking Corporation Ltd

Overseas Trust Bank, Ltd

Overseas Union Bank, Ltd

Shanghai Commercial Bank Ltd

Sin Hua Trust, Savings & Commercial Bank, Ltd

Sumitomo Bank Ltd

Sze Hai Tong Bank, Ltd

United Chinese Bank, Ltd

United Commercial Bank Ltd, The

Wing On Bank Ltd, The

APPENDICES

Appendix IV

(Chapter 6: Industry and Trade)

Trade

Value of Hong Kong's Merchandise Trade

413

Imports

Exports Re-exports Total trade

1961 1962

1961

1962

% increase or decrease

$ million

$ million

5,970

6,657

+ 12%

2,939

3,317

+ 13%

991 9,900

1,070

+ 8%

11,045

+ 12%

Cargo Tonnages

Imports: Commodity Pattern

1962 total value $6,657 million

8.4 million tons

9.5 million tons

% of total imports in

1962

Manufactured goods classified chiefly by material

Food

Machinery and transport equipment

Crude materials, inedible, except fuels

Chemicals

Miscellaneous manufactured articles

30%

24%

11%

11%

8%

8%

% increase

1961

1962

or decrease

$ million

$ million

Manufactured goods classified chiefly by material

1,771

1,995

+ 13%

Textile yarn, fabrics, and made-up articles Silver, platinum, gems and jewellery

867

966

+ 11%

255

305

+ 19%

Base metals

272

280

+ 3%

Paper, paperboard and manufactures thereof

138

155

+ 12%

Food

1,406

1,609

+ 14%

Cereals and cereal preparations

360

463

+ 29%

Fruits and vegetables

264

287

+ 9%

Live animals, chiefly for food

214

260

+ 21%

Dairy products

Machinery and transport equipment

Non-electric machinery

135

149

+ 10%

623

711

+ 14%

271

292

+ 8%

Electric machinery

208

245

+ 18%

Transport equipment

144

173

+ 20%

Crude materials, inedible, except fuels

723

748

+ 3%

Textile fibres

432

437

+ 1%

Animal and vegetable crude materials, inedible

124

122

2%

Wood, lumber and cork

64

85

+ 33%

Chemicals

532

558

+ 5%

Explosives and miscellaneous chemical products

209

210

Medicinal and pharmaceutical products

110

112

+ 2%

Chemical elements and compounds

80

105

+ 30%

Miscellaneous manufactured articles

464

536

+ 15%

Scientific and controlling instruments, photographic

and optical goods, watches and clocks

193

214

+ 11%

414

China

Japan

By country

APPENDICES

Appendix IV-Contd

(Chapter 6: Industry and Trade)

Imports: Principal Sources

1962 total value $6,657 million

% of total imports in 1962

By British Commonwealth

and Continent

British Commonwealth

18%

16%

Asia

USA

12%

America

UK

11%

Europe

Thailand

5%

% of total imports in

1962

23%

49%

14%

14%

1961

1962

% increase or decrease

$ million $ million

China

Textile yarn, fabrics, and made-up articles

Live animals, chiefly for food

1,028

1,213

+ 18%

273

274

71

137

+ 92%

Cereals and cereal preparations

88

120

+ 35%

Fruits and vegetables

84

105

+ 25%

Dairy products

36

64

+ 76%

Sugar and sugar preparations

41

60

+ 47%

Japan

864

1,097

+ 27%

Textile yarn, fabrics, and made-up articles

295

423

+ 43%

Electric machinery

73

96

+ 31%

Base metals

49

101

+106%

Miscellaneous manufactured articles, not elsewhere.

specified

Non-electric machinery

235

42

49

+ 18%

55

45

19%

USA

729

792

+ 9%

Textile fibres

159

71

56%

Non-electric machinery

50

74

+ 49%

Explosives and miscellaneous chemical products

59

66

+ 12%

Tobacco and tobacco manufactures

66

71

+ 7%

Fruits and vegetables

53

63

+ 19%

Medicinal and pharmaceutical products

50

47

5%

Textile yarn, fabrics, and made-up articles

39

40

Transport equipment

11

33

+ +

1%

+200%

United Kingdom

757

Electric machinery

94

Non-electric machinery

Transport equipment

Textile yarn, fabrics, and made-up articles

Base metals

Thailand

Cereals and cereal preparations

Live animals, chiefly for food

89

84

94

83

:::

ཅེ་ྲཧྨནེན8 སྨཱ ཝ

760

1

105

85

90

+ I +

+ 12%

5%

+ 8%

90

66

ཚ ཉྙཝནེ

256

303

+18%

143

199

+ 39%

50

54

+ 7%

4%

20%

APPENDICES

Appendix IV - Contd

(Chapter 6: Industry and Trade)

Domestic Exports: Commodity Pattern

1962 total value $3,317 million

415

% of all exports in

1962

35%

Clothing

Textile yarn, fabrics, and made-up articles

Miscellaneous manufactured articles, not elsewhere specified

Manufactures of metals

Footwear

18%

16%

4%

4%

Electric machinery

3%

% increase

1961

1962

or decrease

$ million

$ million

Clothing

862

1,147

+ 33%

Shirts, other than knitted

159

203

+ 27%

Slacks, shorts, jeans, trousers, overalls and pinafores,

other than knitted

159

204

+ 28%

Jackets, jumpers, sweaters, cardigans and pullovers,

knit or made of knitted fabrics

78

166

Underwear and nightwear, other than knitted

65

Underwear and nightwear, knit or made of knitted

fabrics

58

Blouses and jumpers, other than knitted, not em-

broidered, women's wear

35

Shirts, knit or made of knitted fabrics

44

ཆེ ✖ ལྕ

86

+113% + 34%

58

+

1%

47

+ 36%

46

+ 6%

Textile yarn, fabrics, and made-up articles

669

590

Cotton grey sheeting

95

100

+ I

12%

5%

Miscellaneous manufactured articles, not elsewhere

specified

446

519

+16%

Artificial flowers, foliage or fruit

172

197

+15%

Plastic toys and dolls

114

138

+ 21%

Manufactures of metals

121

135

+ 12%

Household utensils of iron and steel, enamelled

63

63

+ 1%

Footwear

104

129

+ 25%

Footwear of textile materials with rubber soles

53

62

+ 17%

Rubber footwear

17

22

+ 32%

Electric machinery

Transistor radios

Torch batteries

Other

73

106

+ 45%

13

36

+186%

18

20

+ 9%

Cigarettes

22

43

+ 96%

Electric torches

48

Imitation jewellery other than watch bands

30

Rattan furniture (including plastics coated)

25

Iron and steel bars and rounds

26

Refined sugar

18

Handbags, wallets, purses and similar articles of all

materials

422

41

34

28

15% + 14% + 12%

23

-

11%

18

12

22

+ 79%

416

APPENDICES

Appendix IV- Contd

(Chapter 6: Industry and Trade)

Domestic Exports: Principal Markets

1962 total value $3,317 million

By Country

% of all exports in

1962

USA

26%

By British Commonwealth

and Continent

British Commonwealth

UK

22%

America

Malaya

8%

Asia

German Federal Republic

5%

Europe

Canada

3%

Africa

Australia

3%

% of all exports in

1962

46%

29%

12%

10%

2%

USA

Clothing

Miscellaneous manufactured articles, not elsewhere

specified

Textile yarn, fabrics, and made-up articles

Electric machinery

Furniture and fixtures

Footwear

United Kingdom

Clothing

Textile yarn, fabrics, and made-up articles

Miscellaneous manufactured articles, not elsewhere

195

199

specified

74

Footwear

45

42

Malaya

267

262

Clothing

63

Miscellaneous manufactured articles, not elsewhere

specified

49

Textile yarn, fabrics, and made-up articles

35

Sugar and sugar preparations

Manufactures of metals

German Federal Republic

Clothing

15

14

106

151

79

119

Miscellaneous manufactured articles, not elsewhere

specified

7

Footwear

4

Textile yarn, fabrics, and made-up articles

6

Canada

65

1961

% increase

1962

or decrease

$ million

$ million

679

879

+ 29%

253

349

+ 38%

207

292822 24 68 9322 22 2

97

12

714

22222 222 22 2 2 2 2

+ 21% + 2%

+139% + 5%

+160%

+ 21% + 44%

+ 14%

+ 5%

6%

2%

3%

+ + + IT

3%

10%

2%

1%

+ 43%

+ 50%

+ 22%

+ 54% 31%

+ 40%

Clothing

31

+ 31%

Miscellaneous manufactured articles, not elsewhere

specified

13

Footwear

Textile yarn, fabrics, and made-up articles

Australia

Textile yarn, fabrics, and made-up articles

Miscellaneous manufactured articles, not elsewhere

specified

Clothing

bu ya wa

5

61

20

15

21

9

par com 20

20

+ 48%

9

7

+ 75% +120%

86

33

+ 42% + 64%

+ 35%

10

+ 17%

APPENDICES

Appendix IV- Contd

(Chapter 6: Industry and Trade)

R