asked the Secretary of State for Commonwealth Relations and the Colonies what steps are being taken in Hong Kong to provide employment and housing in the more northerly parts of the New Territories, where ample land is available.

A satellite town of over 1 million inhabitants is being developed in the Tsuen Wan and Kwai Chung area and the possibility of further development at Castle Peak and Sha Tin is being examined. Further to the north there are plans for the development of some rural townships including provision for minor industrial areas.

Is the hon. Gentleman aware that the rapid population growth of Hong Kong is continuing apace and that the more northerly schemes to which he refers should be given a high priority in order to reduce the cost of development and to link employment with housing, which is absolutely vital in this Colony?

Yes, I know. The speed and extent of development are governed by the difficulty of acquiring the land, which is held mainly in a very large number of small peasant holdings, and by the need to provide services, especially water, and adequate access by road and sea from the port of Victoria.