Hong Kong Yearbook - Annual Report for the Year 1976

HONG KONG 1977

BO WA CA SA TA EI ED ER EEN UIT TE KA

The Mandarin

RADO

113°50'

114'00'

Kwangtung Province

*30

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2'20

27°10°

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UIFAN LAU

SERIES HM200C

EDITION 1 1977

San Tin

Ban Wai

Fends

KAI KEJƐ

Sham Chun

Lo Wù

ANKING

Ma Hang

TAD

STARLING INLET

Luk

Keng

ung Shue

Au

CROOKED

HARBOUR

Towel Lave

Reservoir

WANG

GHAU

PING SHAN

NHẸN LÒNG TIN KẾT

Au

AI PO

Kim Tin Tratc

TAÍ PO KAU

TOLO HARBOUR

Ma

Shi Chau

Shul

TIN

Kwun Tam Kang

gio

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Liu

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Lung Kwu

Chau

KUNG KWU

JAN

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TUEN

MUN

Fam

CASTLE PLAK

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ShLo

an

BAY

Tai Tong

Fai bom Chung Reservdin

Ton

CASTLE PEAK

TẠI LÀM

/SHAM

TSENG

BAY

CHUNG

Pearl

Island

The Brothers,

hek Lap Kok

Island

DISCOVERY KAY

Satfes Wan

NGE

TUNG

Lantau Islan

KIONG SHAN-

Man Cheungi

Shek PIE Reservo

Tong Fuk

TAI LONG

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Soko Islands

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Skeung

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Green istand

Kau Yi Schau

Cheul

Chau

Sunshine

Island

Hei Ling

Chau

Scale 1:200 000

Km 0

2

6

8

CHANNEL

HONG

AMO

AMAH FROCK

Stonecutters Island

Airport

JON

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WAN

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KONG

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Crooked Island

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Double

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PORT SHELTER

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Port Arland

Tap Mun

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High Island Reservoir

Chau

High Island

ROCKY

HARBOUR

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Shelter island

JUNK BAY

Junk

Island

CLEAR WATER

BAY

Blutt! Island

TAILONS

WAN

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LEGEND

Built-up

Area

Main Road

Secondary Road

22,30

Ferry Route

22

22

20

Woodland

Cultivation

CHINA

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Peking

Railway

International Boundary

100 metres contour interval with supplementary contour at 50 metres.

120

30

TATHONG CHANNEL

LIBRAR

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BIL. WAVE

BAT

SHEK O

Beaufort

$ & SURVEY DEPARTMENT PWD

(c) HONG KONG GOVERNMENT

Island

40%

21

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30

30

EAST CHINA

INDIA

SEA

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BU BURMA

Canton TAIW

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KONG

THAILAND

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SOUTH

PACIFIC OCEAN

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CHINA SEA

THE PHILIPPINES

MAL

BRUNEI YSIA

Scale of Kilometres 1000

2000

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Sumatra

Borneo

市政局公共圖書館 UCPL

TERRITORY OF NEW GUNEA

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3 3288 00031056 7

AND THE NEW TERRITORIES

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22

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NG KONG PUBLIC LIBRAR

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Hong Kong 1977

Report for the year 1976

HONG KONG GOVERNMENT PRESS 1977

!!!

Hong Kong 1977

Editor: Joyce Savidge, Government Information Services

Designer: Arthur Hacker, Government Information Services Photography: Staff photographers, Government Information Services Printer and Publisher: J. R. Lee, Government Printer Statistical Sources: Census and Statistics Department

Editor acknowledges all contributors and sources

URBAN COUNCIL PUBLIC LIBRARIES

Acc. No.

1299333

Class 951.25

Author

HON

HKCH

Frontispiece: The gardens at Government House are open to the public once a year when the azaleas

are in full bloom.

Contents

Chapter

1

Two DecadeS OF ECONOMIC ACHIEVEMENT

Page

1

2

INDUSTRY AND TRADE

11

3 FINANCIAL STRUCTURE

28

4

EMPLOYMENT

38

5

PRIMARY PRODUCTION

47

6

EDUCATION

56

7

HEALTH

77

8

HOUSING AND LAND

90

9

SOCIAL WELFARE

112

10

PUBLIC ORDER

119

11

IMMIGRATION AND TOURISM

135

12

PUBLIC WORKS AND UTILITIES

140

13

COMMUNICATIONS AND TRANSPORT

148

14

THE MEDIA

164

15

THE ARMED SERVICES AND AUXILIARY SERVICES

171

16

RELIGION AND CUSTOM

177

17

RECREATION

182

18

THE ENVIRONMENT

191

19

POPULATION

202

20

NATURAL HISTORY

206

21

HISTORY

211

22

CONSTITUTION AND ADMINISTRATION

220

iv

Illustrations

CONTENTS

Page

Frontispiece

Events

Money

Economic Statistics

Industry

Music

between vi-1

between 4-5

between 10-11

between 24-5

between 56-7

New Territories

between 104-5

Opera and Puppets

between 136-7

Communications

between 152-3

Armed Services

Recreation

Villages

between 168-9

between 184-5

between 216-7

END-PAPER MAPS

Front:

Hong Kong, Kowloon and the New Territories

Back:

Land Utilisation in Hong Kong

CONTENTS

V

Appendices

Appendix

Page

1

UNITS OF MEASUREMENT

234

2

OVERSEAS REPRESENTATION

235

3-4

INDUSTRY AND TRADE

236

5-12

FINANCIAL STRUCTURE

240

13-16

EMPLOYMENT

250

17-19

PRIMARY PRODUCTION

254

20-23

EDUCATION

256

24-27

HEALTH

258

28-29

HOUSING AND LAND

260

30-33

PUBLIC ORDER

262

34

PUBLIC WORKS AND UTILITIES

266

35-37

COMMUNICATIONS AND TRANSPORT

267

38

RECREATION

269

39

THE ENVIRONMENT

270

40-41

CONSTITUTION AND ADMINISTRATION

271

42

URBAN COUNCIL

273

33333

43

SOCIAL WELFARE

274

INDEX

277

When dollars are quoted in this report, they are,

unless otherwise stated, Hong Kong dollars. The Hong Kong dollar has been allowed to float since November 1974, its exchange rate fluctuating ac- cording to market conditions. At the end of 1976 the middle market rate was about HK$4.675=US$1.

Metrication is gradually being introduced through- out government departments, and metric figures are given in the text of this report wherever they are now in general use.

Events

"DE EXCEL HOE LOVEPO INTE 106 106

Year of the Dragon

Every year has its highlights and its trage- dies and 1976-the Year of the Dragon- was no exception. There were many events which reflected not only the fullness and variety of life in Hong Kong but also the territory's growing importance internation- ally. For the first time ever, the Hong Kong Government hosted the annual Common- wealth Finance Ministers' Meeting, held at the end of September and attended by ministers and senior financial officials from 34 Commonwealth countries. Another 'first' took place in July when 72 of the world's most beautiful girls converged on Hong Kong for the 1976 Miss Universe Pageant. And in the fourth annual Hong Kong Arts Festival, more than 200 over- seas musicians, actors, dancers and other artistes joined with local performers to present a month of first class entertainment. In September, in a different vein, many people attended the mourning services in Hong Kong to pay their last respects to the late leader of the People's Republic of China, Mao Tse-tung. A month earlier, in August, a tropical storm was followed by a landslide which killed 18 people at the Sau Mau Ping housing estate in Kowloon. The worst multi-storey blaze in recent years occurred in Central District in February, when fire gutted the China Building while it was under demolition, but no-one was injured.

Previous page: At the Commonwealth Fi- nance Ministers' Meeting, the opening ad- dress was given by the Governor, Sir Murray MacLehose. Seated are the Commonwealth Secretary-General, Mr Shridath Ramphal (left) and Hong Kong's Financial Secretary, Mr Philip Haddon-Cave. Pictured left are traditional dances by the Hong Kong Schools' Chinese Dance Team, which took part in the 1976 International Festival of Youth Orchestras and Performing Arts, held in Aberdeen, Scotland.

1

     Cantonese opera is a special feature of the Hong Kong Arts Festival, with performances by top class professionals in elaborate traditional costumes.

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ASLAND

NEZUEL

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Semi-finalists in the 1976 Miss Universe Pageant. The winner-Miss Rina Messinger of Israel-is second from the left of the girls facing the camera.

In November the Anglo-French supersonic airliner 'Concorde' spent two days at Hong Kong International Airport during its promotion tour of the Far East.

1

      More than 150 firemen worked for five hours to put out the blaze when the China Building in Central caught fire while being demolished.

823

     Anxiety lines the faces of rescue workers at the site of the Sau Mau Ping landslide, which occurred following unusually heavy rains in a tropical storm.

伟大的领袖和导师毛泽东主席永垂不朽!

     Some of the many people who went to the mourning service at the Bank of China Building in Central to pay their respects to the late Chairman. Mao Tse-tung,

1

Two Decades of Economic Achievement

SOME 20 years of rapid economic change have led to Hong Kong's present day posi- tion as a major centre of industry, trade and finance.

        In taking stock of the territory's economy, the mid seventies and the mid fifties also happen to provide natural and similar points of punctuation. It was in 1955-6 that Hong Kong started to readjust to the marked effects of the United Nations embargo on trade with China. Twenty years later, in 1975-6, Hong Kong recovered at a remarkably rapid rate from the worst post-war recession induced by a general reduction in world trade.

       During the years between, the aiming for and the achieving of prosperity involved an interdependent set of forces. Of these forces the size, growth and structure of Hong Kong's population was-and continues to be-the most important.

       The population's rapid growth in the fifties forced on Hong Kong the need to expand exports to finance the import of goods needed by the increasing numbers of people. At the same time, the structure of the expanded population and the embargo on trade with China changed the nature of these exports from re-exports to domestic manufactures.

       Much of the early growth in the population was the result of adults coming to Hong Kong from China, providing an instant increase in the labour force. Then the high birth rate associated with this new segment of the population produced a sudden expansion in the number of dependants-who subsequently provided a further rapid growth in the labour force during the late sixties and the early seventies.

It was fortunate that the background to these developments in Hong Kong was a growth from the early fifties in the purchasing power and consumption levels of people in Europe and America. Combined with this steady rise in prosperity, there was a movement towards greater liberalisation in world trade. These two developments generated enough demand for Hong Kong manufactures to enable the rapid increase in the labour force to be absorbed.

But a need to become richer and also growing trade prospects have often been present without producing the contrast in wealth between the fifties and the seventies that occurred in Hong Kong. A number of other factors contributed to stimulate industrial activity.

        The arrival of established entrepreneurs from Shanghai-and with them a certain amount of physical capital that had arrived in Hong Kong but had not been re- exported to Shanghai-provided a vital expansion to a nucleus of manufacturers.

2

TWO DECADES OF ECONOMIC ACHIEVEMENT

Hong Kong's natural harbour and geographic position had made it a point of call on major shipping routes, and its geographic position and political stability contributed to the development of communications by air. The entrepot trade and a commercial and financial framework already existed to support the growing trade in Hong Kong manufactured goods. And finally the government provided the right sort of environ- ment to permit the interplay of market forces. Contributors to the economy were allowed to seek to maximise their returns, and those who succeeded were allowed to retain them. But, symmetrically, there was no attempt to reverse the consequences of mistakes or commercial misfortunes.

All these factors and forces brought about what Her Majesty the Queen, during her 1975 visit, described as 'the remarkable phenomenon which is modern Hong Kong'. To appreciate how it happened, it is necessary to look more closely at the population explosion, the financial and commercial background, the role of the public sector, and the growth in trade and in the Gross Domestic Product.

Population

       The most dramatic changes in Hong Kong's population took place in the late forties and the early fifties. Much of the detail is not available because the first post- war census did not take place until 1961. But, from estimates of mid-year population, it is possible to see how the period of early rapid growth was replaced by lower rates of increase. In the five years 1951-6, the population grew from an estimated 2.0 million to 2.6 million-an average annual growth rate of 5.3 per cent. This average annual rate steadily declined to 3.9 per cent in the next five years and to 1.6 per cent in 1971-6.

       Behind these decreasing population growth rates, the structure of the popula- tion underwent marked changes. An indication of these can first be seen in the birth rate statistics. Chart A (between pages 10 and 11) shows a rapid rise in the birth rate, which reached a peak in the second half of the fifties and then declined.

        In 1961 the age structure of the population appears (Chart B) as if two unrelated pyramids had been superimposed on each other. There is a narrow band aged 15-20 which is a result of post-war immigrants who arrived without children. Above it is a pyramid unsymmetrically heavy in males as a result of immigration; and below it a disproportionately wide base aged 0-15 years reflecting the high birth rates in the fifties associated with the immigration.

        By 1971, as shown in Chart C, the lower birth rates seen in the previous decade- especially in the second half-had produced a narrower base, representing an absolute decline in the number of infants. This trend has continued.

Growth of Labour Force

       The spasmodic inflows of mostly young people from outside Hong Kong and the high birth rate of the 1950s have echoed and will continue to echo their way through the social and economic structure of Hong Kong.

TWO DECADES OF ECONOMIC ACHIEVEMENT

3

        One of the most important economic consequences was an acceleration in the growth rate of the labour force during the sixties and the first half of the seventies in contrast to the declining growth of the population as a whole. Labour force here means the total number of people aged 15-64 engaged in productive work, plus those unemployed at the time of enumeration. Unemployed are those working less than 15 hours a week, but seeking work.

        Between 1961 and 1966 the average annual rate of growth of the labour force was 3.1 per cent compared with a 3.3 per cent growth rate in the population; between 1971 and 1976 the rates became 3.5 per cent and 1.6 per cent. The importance of new arrivals in particular can be seen in Table 1 (between pages 10 and 11) showing the growth rate of the labour force of different age. Between 1961 and 1966 the labour force aged 15-19 grew by an average of 18.3 per cent a year. In the next five years this growth fell to 3.0 per cent and in 1971-6 the average annual growth was only 0.4 per cent.

       Although the main cause of this growth in the total labour force lies in the age structure of the population-caused by the earlier high births rates and then by migra- tion-there is also an extra factor which made the labour force grow faster than the population of working age. This is the increasing participation of women.

        Table 2 shows that the declining participation rates for males up to the age of 19 -a consequence of greater education opportunities-was offset by the rapid increase in the participation of females over the age of 20. There was a differing response for different age groups. The highest increase (also shown in Table 2) was for the age group 20-24, where the female participation rate rose from 51 per cent in 1961 to 76.7 per cent in 1976.

It is impossible to disentangle the various factors involved and some are at least interdependent. The later age of marriage, lower birth rates and the economic aspira- tions of families were probably important factors in increasing the supply of women workers. But acting on these factors and responding to the supply of such workers were the strong demands of commerce and industry for dextrous and reliable labour.

Employment

       As a consequence of the demand generally from commerce and industry, employ- ment between 1961 and 1976 grew at an average annual rate much in line with the average annual growth rate of 3.2 per cent in the labour force. The manufacturing sector has always been and still is the largest employer, accounting for well over 40 per cent of the total number employed. Between 1961 and 1971, manufacturing em- ployment increased at an average annual rate of 4.0 per cent compared with 2.9 per cent for the total employed population. The manufacturing sector consequently grew in importance between 1961 and 1971.

There are no comparable statistics available yet for assessing the change in its importance in the first half of the seventies. But there is indirect evidence that, because of the more rapid growth experienced in the commercial and financial sectors in the early seventies, the relative importance of the manufacturing sector has been slightly reduced.

4

TWO DECADES OF ECONOMIC ACHIEVEMENT

Financial and Commercial Background

The growth and changes in the population took place in an economy that had developed a large and diverse financial and commercial sector well before the move- ment away from an entrepot-based economy had started.

Although interrupted and damaged by the war years, the banking sector had become well re-established by the mid fifties. In 1955 there were 91 licensed banks with 94 branches. Over the next 20 years the size of the banking sector continued to grow as measured by the number of branches-some 750 at the end of 1976--although the number of licensed banks declined to 74. Within this number there was and con- tinues to be a heterogeneity that reflects the specialisation of banking services offered to the economy.

At one end are the large note issuing banks which used to be the three independent banks the Hongkong and Shanghai Banking Corporation, the Chartered Bank and the Mercantile Bank. (In 1959 the Hongkong and Shanghai Banking Corporation acquired the capital stock of the Mercantile Bank). These banks are not specialists-- they are important deposit takers, lenders to the personal and company sector and, through their credit facilities, they have always played an important part in the financing of trade.

       The other banks tend to some extent to be specialists. The banks from China facilitate China's trade with Hong Kong and the handling of the resulting foreign exchange and other overseas remittances, notably from Chinese living abroad. They also tend to specialise in deposit taking which forms the deposit base for amounts lent to banks in China. The local and overseas Chinese banks also specialise in deposit taking and are an important element in the inflow of capital into Hong Kong and therefore in the growth in the stock of money.

       In contrast are the other foreign banks-the Hong Kong branches of major inter- national banks in America, Europe and Asia. Although they are active in all aspects of banking, their strength is more in lending than in deposit taking.

Monetary Change

       There are two useful statistics that provide a record of monetary change and therefore a summary of Hong Kong's economic progress. One covers the legal tender notes and coins held outside the licensed banks and demand deposits within those banks (known as M1); and the other covers the first group plus time and savings deposits (M2). Chart D (between pages 10 and 11) shows the developments since 1961. The period can be divided into two sections-the years before 1967-8 and the years after.

        In the first period both M1 and M2 grew smoothly, with M2 growing faster at an average annual rate of 16 per cent a year and M1 more slowly at 12 per cent a year. Apart from the pause in growth in both series in 1965, there was no marked volatility and both series broadly reflected the strong and relatively smooth growth in Hong Kong's transactions with the rest of the world.

       The dividing point between the two series is 1967 and 1968. During these two years, the civil disturbances in Hong Kong had a marked if short-lived effect on the

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Financial Services

Banking and other monetary services in Hong Kong are an integral part of the international financial activity which is now an important feature of the territory's economy. Hong Kong has 74 licensed banks. About half of them are local and the rest are branches of banks in China, America, Europe and Asia. Together they have some 750 banking offices. The banks facilitate Hong Kong's financial entrepot trade, help to finance industrial enterprise and trade, and also provide all sectors of the community with a particularly wide and sophisticated range of services. Al- though coins are issued by the government, there is no central bank in Hong Kong. Bank notes are issued by three of the commercial banks, with virtually all the circulation regulated by the government. Hong Kong has a well established gold market which is estimated to be one of the four largest in the world by turnover, and at the end of 1976 the foundation stone was laid for a new gold exchange building to cope with the increasing trade in bullion. There are four separate stock exchanges and there is considerable over- seas investment in the stock market. In August 1976, legislation paved the way for the establishment of an international futures commodity exchange, due to open in March 1977.

SECOND

1976

KONG

KONG

Previous page: In Central District, Des Voeux Road is lined with the imposing structures of many local and foreign banks. Left: Some old Chinese coins; the vaulted mosaic ceiling in the head office of the Hong- kong and Shanghai Banking Corporation; and the $1,000 gold coins issued to com- memorate the Year of the Dragon (1976) and the Year of the Snake (1977).

N

IC

The Hong Kong Stock Exchange moved to new premises in 1975 and business is now transacted in this ultra-modern trading hall.

建舊

EXCHANGE

旅行支票

PUB

     Converting currency at one of Hong Kong's numerous money exchanges.

Gold bars are wheeled into the vault of a bank for safekeeping.

2.7

TWO DECADES OF ECONOMIC ACHIEVEMENT

5

economy which is clearly reflected in both M1 and M2. In the second half of 1967, M2 dropped below the level of the first half. But it recovered by the end of the first quarter of 1968 to a level that was a little higher than the level recorded in March 1967. The corresponding drop in M1 lasted two quarters longer and it was not until Decem- ber 1968 that the series was above its previous peak.

After 1968 the two series grew strongly, with M1 growing by an average of 18 per cent a year between 1968 and 1971 and M2 by 21 per cent a year in the same time. But the way in which the money supply increased from early 1972 until the stock exchange collapse of 1973 suggests the two series are reflections of different developments in the economy. Both grew rapidly. Between March 1972 and March 1973, M1 grew by 70 per cent and M2 by 25 per cent. The decline from these two peaks was much more marked for M1, which subsequently up to 1975 showed relatively greater variation than M2. The latter grew steadily after the 1973 decline-apart from a pause between the third and fourth quarters of 1974, after which strong growth resumed.

        It is likely that a higher proportion of savings and time deposits are held by non- residents. It is also possible that the strong growth of M2, which includes time and savings deposits, may reflect the rapid expansion of the financial sector and in partic- ular Hong Kong's role as a financial entrepot. In contrast, M1 reflects the domestic economy as a whole and in particular the 1974-5 recession--as is clearly seen in the stagnation in the first half of 1974 followed by decline before growth resumed in 1975.

Financial Entrepot Trade

The growth of the financial entrepot trade can be more clearly illustrated by the changes in the assets and liabilities of the banking sector. From 1968 there was a development in banking that was no passive following of the demands of industry but rather an independent financial development. The industrial trading success of Hong Kong, combined with an absence of exchange controls, made Hong Kong especially attractive for international financial activity. Some evidence of this can be found in the banking statistics; during the 1970s there was a very rapid growth in one category of the banks' liabilities-the amounts due to banks abroad. At the end of 1970 the amount of this liability was $2,212 million. By the end of 1975 the amount outstanding was $21,253 million and this accounted for 32 per cent of all liabilities. Similar evidence of this activity can, of course, be found on the assets side of the banks' con- solidated statement of liabilities and assets.

This development in Hong Kong has its roots in the earlier development of manu- facturing and the export of the products of this sector. Export success is a pre-condi- tion of a strong currency, which is one of the reasons why Hong Kong has become a leading financial centre for the region. But it was also the growing maturity of a large economy which produced an environment for business and financial services that made a further growth of the financial sector a logical step in development.

An associated but as yet unrecorded development was the rapid growth in non- bank financial institutions. Some are associated with the licensed banks and some are new to Hong Kong. They are specialists in lending overseas and, although some have Hong Kong based liabilities, much of their funds come from outside Hong Kong.

6

Role of the Public Sector

TWO DECADES OF ECONOMIC ACHIEVEMENT

As there has always been a relatively small public sector in Hong Kong, the monetary consequences of fiscal policy have not been significant. The history of public finances is set out in Chapter 3 and it is sufficient here to note the long run of surpluses in the public sector, which will have contributed a very small restraining influence on the growth in the stock of money during the post-war years.

In line with this small net impact of the public sector, there has existed an en- vironment which has been sympathetic to maximising returns from economic activity. Consistent with this is the history of low tax rates on earnings and profits. Yet these low rates have not precluded the development of the economic and social infrastruc- ture necessary for fast development. The compactness of Hong Kong has enabled much to be achieved at a low level of public expenditure.

Trade

With a rapidly growing labour force, a well developed financial and commercial sector, established external communications, and a sympathetic public environment, the Hong Kong economy was able to take advantage of the favourable changing climate of world trade.

The trend growth of world trade accelerated from the early fifties up to 1973. Average annual rates of growth in the volume of world exports were: 5.3 per cent from 1950-8; 7.4 per cent from 1958-61; 7.3 per cent from 1961-7; and 10.2 per cent from 1967-73. Due to the world recession, the volume of world exports from 1973-5 suffered a temporary setback, with an average annual growth rate of only 0.6 per cent.

In addition to growth, Hong Kong benefited from various measures to liberalise trade. The most important event for Hong Kong was the dismantling of many wartime balance of payments controls, which culminated with the adoption in 1958 of the code of liberalisation by the Organisation of European Economic Co-operation and the return to convertability. This liberalising of trade not only benefited member coun- tries but also dependent territories. As a colony, Hong Kong had greater access to many of these markets.

Various rounds of tariff reductions organised by the General Agreement on Trade and Tariffs (GATT) also helped to expand world trade and enabled Hong Kong to sell a growing volume of exports. The Dillon round took place in 1960-1 and was im- plemented from 1962. Of greater importance was the Kennedy round of tariff reduc- tions, which was implemented in 1968.

Early Post-War Years

It is against this background of international trade that Hong Kong's export industries developed from the mid fifties. But the post-war years up to that time also need to be taken into account. Hong Kong emerged from the enemy occupation with a run down economy and a population that had decreased by a million to about 600,000. The territory's livelihood was still predominantly dependent on entrepot

TWO DECADES OF ECONOMIC ACHIEVEMENT

7

trade, and this was quickly re-established during the early post-war years. The total value of trade grew at an average annual rate of 35 per cent between 1947 and 1951. The goods traded were mostly manufactured articles, with textile yarn and fabrics ranking as the most important commodity groups. These were traded mainly with Asian countries--but already trade with the United States and Britain together represented more than 20 per cent of Hong Kong's total trade.

       The United Nations imposed an embargo on trade with China in 1951 and growth in Hong Kong's entrepot trade was seriously disrupted. As a result, Hong Kong's external trade dropped sharply in the early fifties over practically all categories of goods. Exports to the United States decreased from $309 million in 1950 to $62 million in 1953, after which they gradually started rising again. Exports to Britain started decreasing in 1951, falling from $215 million and reaching a trough in 1953 at $119 million. In 1951 China was the most important market for re-exports. That year's total exports to China were $1,604 million- -36 per cent of the overall total. The following year-when the embargo had taken effect-exports to China were $520 million, and some 10 years later they had declined to less than $100 million.

       As a result, there was a need for entrepreneurs to seek and develop an alternative source of living. The logical and indeed the only alternative was to develop the manu- facturing sector, taking advantage of the presence of skills, capital and-most im- portant of all--a growing world demand for manufactured goods. This development was encouraged by the acceleration in world trade which, towards the second half of the fifties, was growing in real terms at an average annual rate of 6.3 per cent com- pared with 5.7 per cent for the earlier half.

       Hong Kong's participation in this trade resulted in increasingly large imports of capital goods from the early fifties. Imports of machinery and equipment as a propor- tion of total imports grew from around five per cent in the early fifties to more than 10 per cent in 1960. In turn, the value of Hong Kong exports between 1955 and 1960 grew at an average annual rate of 9.2 per cent compared with 7.4 per cent from 1950-5. Unfortunately, there are no measures of the growth in the volume of Hong Kong's exports during this period. But, during the fifties, unit value indices for world exports remained fairly constant, implying that the growth rates of Hong Kong exports in quantity terms were about as rapid as those calculated in value terms.

The New Structure

       Hong Kong took nearly 10 years to recover the level of exports achieved prin- cipally through entrepot trade in 1951. But the 1962 level was not merely equal to that of 1951; it also reflected a complete structural change of the economy. Clothing exports, for example, were in 1951 only five per cent of total exports. By 1962 they had grown at an average annual rate of 17 per cent to a significant 26 per cent of total exports.

Exports to China having dwindled in importance, the United States and then Britain quickly established themselves as the largest market for Hong Kong exports. The resumption of the growth in exports to the United States came in 1953 and the value of exports to this market grew for the rest of the decade at an average annual

8

TWO DECADES OF ECONOMIC ACHIEVEMENT

rate of 43 per cent. The United Kingdom market for Hong Kong exports started recovering in 1952 and grew for the rest of the decade at an average annual rate of 28 per cent. This rapid growth was of course partly a result of Commonwealth preference that gave Hong Kong a virtually duty free market in Britain.

By 1960-the year after Hong Kong's statistics first distinguished between domestic exports and re-exports-domestic exports formed 73 per cent of total exports. And domestic exports to the United States and Britain represented 26 per cent and 20 per cent respectively of total domestic exports.

This high rate of growth continued into the sixties. Table 3 (between pages 10 and 11) gives growth rates in the value of imports and exports for different periods since 1950. These growth rates reflect changes in quantity and price, with some of the acceleration in the value of trade in the sixties being due to growing rates of inflation in the world which were reflected in Hong Kong's price level.

Tariff Reductions

The post-war liberalisation of trade up to the Dillon round of tariff reductions implemented in 1962 contributed to an average annual growth of 14.7 per cent in the value of domestic exports between 1961 and 1967. The Kennedy round, which was implemented in 1968, stimulated an average annual growth rate of 19.5 per cent between 1967 and 1973, but about nine percentage points were accounted for by price increases. These rates compare favourably with corresponding rates of growth for world exports-an average of 8.2 per cent a year from 1961-7 and 17.9 per cent from 1967-73. Also, during the period 1967-73, the Hong Kong dollar strengthened con- siderably, which will have had the effect of understating the growth rate of exports when these totals are expressed in Hong Kong dollars.

      Inflationary pressure in the late sixties and early seventies was strong. The export unit value index which started in 1968 showed that Hong Kong export prices between 1968 and 1973 were increasing at an annual rate of 9.2 per cent. This was higher than world export prices, which increased by an average of 8.7 per cent a year between 1968 and 1973. From 1961-7 world export prices rose by an average of about one per cent a year. It is unlikely that under a fixed exchange rate Hong Kong could have had an increase markedly different from this. This means that the quantity of Hong Kong's exports probably grew at about 10 per cent in the early sixties. The value of domestic exports grew by 11.9 per cent a year between 1960 and 1965.

From 1968-73, the volume of Hong Kong's exports was increasing at an average annual rate of 8.3 per cent. This trend was temporarily displaced by the 1974-5 recession, but the recovery which started in the second half of 1975 brought a volume of exports for 1976 which fully recovered the lost ground.

Restrictions

The statistics suggest that the export sector, having taken off in the first half of the sixties, was towards the end of the decade levelling off to a trend rate of growth

TWO DECades of ECONOMIC ACHIEVEMENT

9

more in line with the growth in world trade. But the statistics measuring volume of trade tend to be biased downward when there has been an increase in the quality of goods produced. Such a process of trading up in quality would have taken place in Hong Kong without any extra stimulus, but the advent of trade restrictions en- couraged this movement.

These restraints began in 1959 with restrictions on textile exports to Britain and, by 1975, some form of bilaterally agreed restraint was in operation for about 65 per cent of textiles and clothing exports from Hong Kong. Typically the restrictions have been defined in terms of quantities and have so given manufacturers the in- centive to produce higher quality products. Because the restrictions also tend to be applied to Hong Kong's competitors, they have also served to reduce the effect of competition from other lower wage economies.

Change in Exports

Growth in exports also involved a change in the pattern of trade. Exports of electrical machinery, apparatus and appliances in the early sixties represented only two per cent of total domestic exports. But they grew rapidly and in 1975 this category of products represented 12 per cent of total domestic exports by value. The manu- facture of watches and clocks, fabricated metal products, and non-electrical machinery recently gained in importance.

In the background, clothing exports remained as the most important category, representing from 35-40 per cent of total domestic exports since 1960. Textiles exports declined slightly in importance. Other products, such as wigs, experienced a tem- porary vogue but then faded out. A mixture of these events, coupled with the rapid growth achieved, illustrates the flexibility with which the manufacturing sector copes with the rapid changes in consumer demand in the major markets for Hong Kong goods.

The Gross Domestic Product

        The rapid increase in trade brought equally rapid increases in domestic income. Table 4 shows growth rates for the Gross Domestic Product for different periods since 1961. The high rate of growth in the Gross Domestic Product generated by the rapid expansion in trade levelled off from the early sixties, much in line with the performance in external trade.

But there was an acceleration in inflation rates as measured by the difference between the current and constant price estimates for the Gross Domestic Product. The inflation rate was roughly 2.4 per cent from 1961-5; then 4.1 per cent from 1965- 70; and 8.2 per cent from 1970-5. The price increases were mostly imported, although the marked increase in the money supply connected with the stock exchange boom in 1972-3 contributed an extra push to certain more domestically orientated prices.

Prices of imported food and consumer goods increased at an average annual rate of 12.1 per cent and 6.6 per cent respectively from 1970-5, contributing to correspondingly rapid increases in consumer prices. Prices for raw materials, capital

10

TWO DECADES OF ECONOMIC ACHIEVEMENT

goods and fuel during the same period increased respectively at an average annual rate of 8.2 per cent, 8.4 per cent and 28.1 per cent, explaining most of the average annual rate of increase in export prices of 9.6 per cent.

The Future

       As to the future: just as the growth and the changing structure of the population have had an important influence in the past, so will these factors continue to affect the economy. Hong Kong has been passing through a phase where the labour force has been growing much faster than the population as a whole. Within five years and assuming no large scale inflows of people from outside Hong Kong, this trend will be reversed and by the mid eighties the labour force will be growing far less rapidly than the total population. Inevitably the average growth of the Gross Domestic Product will decline; by how much will depend on rates of increase in productivity.

The provision through public sector expenditure of such economic and social infrastructure as the new towns, education and industrial land are all designed to add to the productive potential of the economy. The financial sector, which developed in size and complexity in the 1970s, is also likely to continue to be a sector of the Hong Kong economy with rapid growth. But the final outcome of all these possi- bilities will depend on economic and financial developments in the rest of the world- a constraint and stimulus that has always been and will continue to be with Hong Kong.

Table 1: Economically Active Population

Charts & Tables

Table 3: Growth of Hong Kong's Trade

(average annual rates of growth)

Age 1961

1966

1971

1976

to Total

economically

15-64 1.169.300 1.360,910 1.580.546 1,881,000

Domestic

Imports

(%)

(%)

exports Re-exports Total Exports

(%)

(%)

           active population

15-19 84.853

196,300 228,193 233,000

1950-1955

-0.4

N.A.

N.A.

- 7.4

20-24 146.060 149,390 269,718 367.000

1955-1960

9.5

N.A.

N.A.

9.2

25-34 352.886

308,560 292,608 424.000

1960-1965

8.9

11.9

7.0

10.7

Age 1961-66

1966-71 1971-76 1961-76

1965-1970

145

19.7

14.0

18.5

[(1) Average annual

15-64

3.1

3.0

3.5

3.2

1970-1975

13.7

13.1

19.2

14.4

rates of growth

15-19

18.3

3.1

0.4

7.0

1950-1960

45

N.A.

0.6

20-24

0.5

12.5

6.4

6.3

1960-1970

11.6

15.7

10.5

14.5

25-34

- 2.7

7.7

1.2

1950-1961

4.2

N.A.

N.A.

0.5

Table 2: Labour Force Participation Rates

1961-1967

9.8

14.7

13.2

14.3

1967-1973

18.6

19.5

21.0

19.8

Age 1961

1966

1971

1976

1973-1975

7.4

8.3

3.4

7.1

(1) Make

15-64

91.6

88.0

86.9

82.5

chicipation

rates(%)

15-19

54.3

52.3

50.4

40.3

Table 4: Growth in the Gross Domestic Product

(average annual rates of growth)

20.24

89.2

92.2

90.2

88.4

25.34

97.8

99.3

98.4

96.6

D

Age

1961

1966

1971

1976

(u) Female

15-64

38.8

43.5

46.0

50.1

participation

rates (76)

15-19

47.9

51.3

56.4

47.9

Gross domestic product

Per capita gross domestic product

at current at constant at current at constant

market market

market

market

prices prices

prices

prices

(%)

(%)

(%)

(%)

20-24

51.1

60.8

69.5

76.7

1961-1965

14.8

12.1

11.2

8.5

25-34

33.9

37.1

39.6 50.5

1965-1970

12.2

7.8

10.0

5.8

35-44

38.0

43.7

38.7

47.9

1970-1975

14.5

5.8

12.3

3.7

45.54

42.1

42.5

38.9

42.6

1961-1967

12.7

10.5

9.7

7.6

55-64

28.2

30.7

33.9

31.6

1967-1973

16.2

8.0

14.1

6.0

1946

CHART A

Birth Rate,

per Thousand Population 1946-75

1950

1956

1960

1965

DLUT

1970

B

1975

Rate 10

15

20

25

30

35

40

45

50

Population Pyramid

Chart B Population pyramid of Hong Kong on sex and age, 1961 census

Age Groups 80+

75

70

65

60

55

50

45

40

35

||

30

25

20

15

10

5

0

200,000

100,000

0 0

100,000

200,000

Chart C

Population pyramid, 1971

over

·Age·

75

70

65

BRA

60

55

50

45

40

||

"י ד"

||

וי

35

||

30

25

||

Number In thousands 200

||

||

||

||

H

|||||- |-

||

||

الالسن

100

וון

20

||

15

||

10

5

0

0

0

100

Males

200

Females

Quarter

CHART D

Money Supply (M1&M2)

(as at end of quarter)

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

NG

NG K GK

7

LEGEND

MI - notes and coins held outside the

共口停

+

licensed banks plus demand de-

posits held with the licensed banks.

Tine and savings deposits with the licensed banks.

M2 - the sum of M1 and savings and

time deposits.

BLIC LIBRAR

$ Million 0

5,000

10,000 15,000 20,000 25,000

30,000

35,000

40,000

45,000

2

Industry and Trade

      OWING to its heavy dependence on exports, Hong Kong's manufacturing industry feels more quickly than most the onset of any international economic recession or recovery. This sensitivity was evident once again during the recession of 1974-5 and the subsequent recovery.

        The first significant signs of recovery began to appear in early 1975 and con- tinued uninterrupted throughout 1976. The manufacturing industry benefited from this recovery to the extent that domestic exports in 1976 amounted to $32,629 million -43 per cent more than in 1975.

        The major factors which have given Hong Kong its international reputation as a leading manufacturing and commercial centre are still at work. Among these are the economic policies of free enterprise and free trade, an industrious workforce, a sophisticated commercial infrastructure, a modern and efficient seaport, a strate- gically located airport, and excellent worldwide communications. There are no import tariffs and revenue duties are levied only in respect of tobacco, alcoholic liquors and some hydrocarbon oils. Tax is also payable on first registration of motor vehicles.

        Apart from providing the infrastructure-either through direct services or by co-operation with public utility companies and autonomous bodies-the govern- ment's role in the economy is to ensure a stable framework within which commerce and industry can function efficiently and effectively with a minimum of interference. The government normally intervenes only in response to the pressure of economic and social needs and it provides no protection or subsidisation of manufactures.

Industrial Development

       Light manufacturing industries which produce mainly consumer goods pre- dominate in Hong Kong. About 70 per cent of the total industrial workforce is employed in producing textiles and clothing, electronics, plastic products, toys, and watches, clocks and accessories. These industries account for about 78 per cent of Hong Kong's total domestic exports. They are likely to continue to predominate, although it is expected that more high technology industries will soon be located in new industrial estates. One such estate is under construction at Tai Po while another is planned for Yuen Long to bring a further measure of diversification to Hong Kong's industries.

        Hong Kong industrialists have responded to the increasing competition from other developing countries in the region by continuing to modernise their operations and by moving into more sophisticated product lines. An increasing number of

12

INDUSTRY AND TRADE

component parts for existing lines are being produced locally and the quality of finished products continues to improve.

About 8.1 per cent of Hong Kong's total industrial workforce of 773,746 people are employed in factories owned or partly owned by overseas interests. In order to broaden Hong Kong's industrial base by bringing in more expertise and new in- dustrial technology, increased efforts were made during 1976 to encourage overseas industrialists to invest in Hong Kong's manufacturing industry. Missions were sent to Australia, the Federal Republic of Germany, Switzerland and the United States.

Textiles and Clothing

       The textiles industry is Hong Kong's most important industry, employing about 48 per cent of the total industrial workforce and accounting for some 53 per cent of Hong Kong's total domestic exports. The upturn in overseas demand for textiles--- particularly clothing--which started in the third quarter of 1975, continued during 1976. As a result, the value of Hong Kong's domestic exports of textiles and clothing for the year was the highest figure ever recorded. But despite the textiles industry's strong recovery from the effects of the world economic recession, the restrictions on Hong Kong's textiles exports to most of its main markets under the GATT Multi- Fibre Textiles Arrangement have limited the industry's scope for further growth in volume.

The spinning sector, operating about 898,912 spindles, contains some of the most modern factories in the world. In 1976 there was a considerable increase in the demand for most textile yarns-particularly cotton yarn, production of which amounted to 431 million pounds compared with 382 million pounds in the previous year. Production of man-made fibre yarn and cotton/man-made fibre yarn increased by 17 per cent to 70 million pounds, and the production of woollen and worsted yarn was 16 million pounds compared with 13 million pounds in 1975. Most of the yarn produced was used by local weavers. The possibility of a world shortage of raw cotton in 1977 and also a sharp rise in the price of imported cotton during the year caused some concern among cotton spinners.

       The weaving sector, with 31,346 looms, produced 1,110 million square yards of woven fabrics of various fibres and blends, compared with 915 million square yards in 1975. The bulk of the production-90 per cent--was of cotton. This sector of the industry benefited significantly from the so-called denim boom of 1976, when the use of denim as a fashion as well as a utility fabric gained worldwide appeal. There was a sudden expansion in manufacturing capacity, but many of the smaller factories which had sprung up to take advantage of the situation ceased operation as the boom faded during the second half of the year.

The knitting sector also saw increased production. In 1976 Hong Kong exported 20 million pounds of knitted fabrics-of which 45 per cent was of man-made fibres or cotton/man-made blended fibres and 55 per cent of cotton-compared with 14.8 million pounds in 1975. A large part of the production of knitted fabrics of all fibres was used by local clothing manufacturers.

INDUSTRY AND TRADE

13

The finishing sector provides sophisticated supporting facilities to the spinning, weaving and knitting sectors. It handles a large amount of textile fabrics for bleaching, dyeing, printing and finishing. This includes yarn texturising, multi-colour roller and screen printing, pre-shrinking, permanent pressing and polymerising.

        The manufacture of clothing is the largest sector of the textiles industry, employ- ing some 252,774 workers or about 33 per cent of the total industrial workforce. During the year the clothing sector continued to keep up with the latest trends in fashion and there was a significant increase in production. Hong Kong's domestic exports of clothing in 1976 were valued at $14,288 million-40 per cent more than in 1975.

Other Light Industries

The electronics industry maintained its position as the second largest export earner among Hong Kong's manufacturing industries. It made a strong recovery after being adversely affected in 1975 by the world economic recession. Domestic exports of electronic products in 1976 were valued at $3,971 million compared with $2,724 million in the previous year. There were 672 factories employing 70,998 workers and the wide range of items produced included transistor radios, computer momory systems, electronic calculators, transistors, integrated circuits, semi-conductors, pre- packaged electronic modules and television sets.

There was also a considerable improvement in business in the plastics industry. This industry has 3,844 factories employing 76,994 workers and the most important items produced are toys and a wide variety of household articles. In 1976 domestic exports of plastic products were valued at $2,531 million-47 per cent more than in the previous year.

       The watches, clocks and accessories industry has expanded rapidly during the past 10 years to become one of Hong Kong's most important manufacturing indus- tries. It produces watches, clocks, watch cases, dials, metal watch bands, assembled watch movements, and watch straps of various materials. An increasing number of factories are manufacturing electronic digital watches. Domestic exports of all these goods in 1976 were valued at $1,393 million, compared with $797 million in 1975.

       Other important light industries produce travel goods, handbags and similar articles; metal products; jewellery; domestic electrical equipment; and electrical machinery, apparatus and appliances.

Heavy and Service Industries

Hong Kong's shipyards provide a competitive repair service and many of the smaller shipyards also build a variety of small vessels, particularly pleasure craft and yachts. The Kwai Chung container terminal and its complementary repair and manu- factory facilities enhance Hong Kong's position as one of the leading shipping centres in Asia.

        The aircraft engineering industry has a high international reputation and provides maintenance, overhaul and repair facilities for most of the airlines operating in Asia.

14

INDUSTRY AND TRADE

       The steel rolling industry meets a considerable part of the needs of the local build- ing industry and, in 1976, it benefited from the increased building activity which took place following the slack period during the 1975 recession.

       The manufacture of machinery, machine tools and their parts provides useful support to other local industries as well as contributing to Hong Kong's export trade. Of particular importance are blow moulding, injection moulding and extrusion machines of up to 80 ounce capacity for the plastics industry; power presses; lathes; shapers; printing presses; and textile knitting and warping machines.

       A large polystyrene plant-the first to be built in Hong Kong-was completed in 1976 and started production. It should provide valuable support to the local plastics industry.

Industrial Land

       Demand for industrial land strengthened early in the year, reflecting the upsurge in industrial activity as compared with 1975. Prices remained high for industrial lots on Hong Kong Island and in the New Territories which were sold by public auction. At the same time, there was keen competition among holders of exchange entitlements -in respect of agricultural land returned to the government for redevelopment-to obtain industrial sites in the New Territories.

        Industrial development in Tuen Mun received a boost early in the year when an 8 370-square-metre site was granted by private treaty, under the terms of the modified industrial land policy, to an overseas company for the building of a plant to produce heat-transfer printing paper for the textiles industry. The tempo of development in the new town was maintained throughout the year, with at least nine other factory projects taking shape.

        In the autumn, a site of 12 153 square metres on Tsing Yi Island was granted for a project to manufacture machine tools. Other special industrial projects being con- sidered for possible land grants include several shipbuilding and ship-repair yards on Tsing Yi.

Work on the first stage of the Tai Po industrial estate progressed smoothly under the direction of the Hong Kong Industrial Estates Provisional Authority. The provi- sional authority was established by ordinance on April 30, 1976, and charged with the development and management of the industrial estates planned for Tai Po and Yuen Long pending the setting up of an Industrial Estates Corporation. The first sites at Tai Po should be ready for occupation in April 1977. They will be particularly suitable for capital-intensive and medium heavy industries which can only be housed in low buildings. When completed in 1978-9, the first stage of the Tai Po industrial estate will comprise 27 hectares of reclaimed land provided with roads, water supply and a sewage treatment plant.

Industrial Investment Promotion

        The Co-ordinating Committee on Industrial Investment Promotion, formed in October 1975, co-ordinates the efforts of the Commerce and Industry Department,

INDUSTRY AND TRADE

15

      the Trade Development Council and the Hong Kong General Chamber of Commerce in their overseas promotion of industrial investment in Hong Kong. The committee's objective is to obtain the maximum possible benefit from the combined resources and joint efforts of the three groups. Their industrial investment promotion activities in 1976 included missions to Switzerland and the Federal Republic of Germany, and a series of missions to Australia, Japan and the United States. The American Chamber of Commerce in Hong Kong took part in the latter mission and helped to establish contacts between the Hong Kong representatives and American companies and in- dustrial organisations.

At the end of the year there were at least 311 factories in Hong Kong either fully or partly owned by overseas interests-nearly 15 per cent more than in 1975. The total direct investment involved was about $1,952 million. The main sources of investment are the United States, Japan, Britain, Thailand, Australia and Singapore. The prin- cipal industries involved are electronics and textiles although there are new invest- ments in fields such as light and medium engineering industries.

External Trade

Hong Kong reacted swiftly to the recovery of demand in its major overseas markets and the general upturn in world trade in 1976. Total merchandise trade reached a record level of $84,849 million, an increase of 34 per cent over 1975. Imports increased by 29 per cent to $43,293 million; domestic exports by 43 per cent to $32,629 million; and re-exports by 28 per cent to $8,928 million. Summary statistics of external trade, including a breakdown by countries and commodities and comparisons with previous years, are contained in Appendices 3 and 4.

Hong Kong is almost entirely dependent on imported resources to meet the needs of its 4.4 million people and the requirements of its diverse industries. Imports of food and live animals at $6,687 million represented 15 per cent of total imports in 1976; machinery and transport equipment at $7,701 million, 18 per cent; textile yarn, fabrics, made-up articles and related products at $6,632 million, 15 per cent; chemicals at $3,419 million, eight per cent; mineral fuels, lubricants and related materials at $2,680 million, six per cent; professional, scientific and controlling instru- ments, photographic and optical goods, watches and clocks at $2,353 million, five per cent; and textile fibres at $1,976 million, five per cent. Other significant imports were diamonds, iron and steel, paper and paperboard and their manufactures, beverages and tobacco, clothing, non-ferrous metals, and animal and vegetable oils and fats.

Japan continued to be the principal supplier of imports in 1976, providing 22 per cent of the total. China came second, supplying 18 per cent of total imports and 49 per cent of all imported food and live animals. The United States supplied 12 per cent of total imports and other important sources were Singapore, Taiwan, Britain, West Germany, Switzerland and South Korea.

Domestic exports consisted almost entirely of manufactured goods, emphasising the importance of the manufacturing sector in Hong Kong. Although substantial diver- sification has taken place into new production lines such as electronic calculators

HONG KONG PUBLIC LIBRARIES

16

INDUSTRY AND TRADE

and digital watches-Hong Kong's exports are still highly concentrated in a few products as well as a few markets. Clothing, which is so far a major growth sector, alone contributed 44 per cent to the total domestic export value in 1976. Sales of miscellaneous manufactured articles-mainly toys and dolls, jewellery and goldsmiths' and silversmiths' wares, plastic flowers, umbrellas and metal watch bands-made up an additional 15 per cent. Exports of electrical machinery, apparatus and appliances- mainly transistorised radios, electronic components and parts for computers, tran- sistors, semi-conductor integrated circuits and diodes-accounted for a further 13 per cent. Textile yarn, fabrics, made-up articles and related products contributed nine per cent. Other light manufactured goods such as watches and clocks, metal products, travel goods, electronic calculators and footwear were also important exports.

      The direction and level of Hong Kong's export trade is influenced principally by economic conditions and commercial policies in its main overseas markets. During the year, 63 per cent of all domestic exports went to the United States and the enlarged European Economic Community. The United States alone absorbed 34 per cent (32 per cent in 1975); West Germany took 12 per cent (13 per cent); and Britain 10 per cent (12 per cent). Other important markets were Australia, Japan, Canada, Singapore, the Netherlands and Sweden. Growth of exports to most of the members of the Organisa- tion of Petroleum Exporting Countries was also sustained in 1976.

      Hong Kong's traditional entrepot trade remained steady at about 21 per cent by value of total exports. The principal commodities re-exported were machinery and transport equipment; textiles and clothing; diamonds; watches and clocks; crude animal and vegetable materials; medicinal and pharmaceutical products; and dyeing, tanning and colouring materials. The main countries of origin of these re-exports were China, Japan and the United States. Japan was still the largest re-export market, followed by Singapore, the United States, Taiwan and Indonesia.

International Commercial Relations

      Hong Kong's external commercial relations are conducted by the Commerce and Industry Department within the framework of a basically free trade policy. Hong Kong practises to the full the rules of the General Agreement on Tariffs and Trade (GATT) and virtually the only restrictions maintained on trade are those required by international obligations. Most prominent among these are restraints on textiles exports to most major trading partners. These arrangements come under the umbrella of the Arrangement Regarding International Trade in Textiles, commonly known as the Multi-Fibre Arrangement (MFA). Britain acceded to the MFA on behalf of Hong Kong in 1974. A feature of the MFA is the Textiles Surveillance Body (TSB), which supervises the implementation of the arrangement. A Hong Kong representative sat as a full member in 1975 and as an alternate member to South Korea in 1976.

      Following negotiations under the MFA, bilateral agreements were concluded during the year with Austria, Canada, Finland, Norway and Sweden. Under the terms of the agreements, exports of certain textiles from Hong Kong to these countries were placed under restraint.

INDUSTRY AND TRADE

17

        In June, Australia announced that the export restraints on several clothing items under a bilateral agreement under the MFA between Hong Kong and Australia, which was to expire on June 30, would be replaced by global tariff quotas.

       The MFA is due to expire at the end of 1977 and a major review of its operation was conducted in December 1976. The review also considered whether the MFA should be extended, modified or discontinued. No clear-cut consensus emerged and consideration of the future of the MFA continued into 1977, with Hong Kong participating fully in the discussions.

        Work went on during 1976 on the Multilateral Trade Negotiations (MTN) which were launched in September 1973 in Tokyo with the object of further liberalising world trade by the removal or reduction of tariff and non-tariff barriers. Again little progress was made in spite of pledges made by major developed countries to accelerate the pace. The negotiations are continuing.

A regional seminar on the Multilateral Trade Negotiations-jointly organised by the Economic and Social Commission for Asia and the Pacific (ESCAP) and the Commonwealth Secretariat-was held in Hong Kong in February 1976. It was attended by more than 30 delegates from the ESCAP and Commonwealth countries and territories. The seminar was designed to assist member developing countries and territories in their preparations for the trade negotiations. It also provided an oppor- tunity for participants to identify common interests and discuss common problems.

       Of considerable importance to Hong Kong are the various generalised preference schemes. They are operated by most of the developed countries and are designed to assist the export of goods manufactured by the developing countries. The schemes include provisions allowing duty-free or low tariff entry for products from beneficiary developing countries.

       The form, coverage and other provisions of the schemes differ from country to country. Hong Kong has been included as a beneficiary by most of the developed countries operating such schemes except Finland and Norway. Some products from Hong Kong are excluded from the schemes operated by the European Economic Community, Japan, Switzerland, Australia and Austria. Such difference in treatment is the subject of continuing official exchanges in which Hong Kong has made it clear to the importing countries concerned that it seeks no special advantages under these schemes, but only treatment similar to that accorded to Hong Kong's close com- petitors.

        There has been particular concern over the exclusion of Hong Kong's textiles and non-leather footwear from the EEC's generalised preference scheme. Following a fact- finding mission to Hong Kong in March 1976, the EEC Commission subsequently recommended that Hong Kong, among other dependent territories, should be in- cluded as a beneficiary in the textiles sector of its proposed scheme for 1977.

        The Commission's proposals were considered by the Council of Ministers in December and as a result Hong Kong's textiles are being included in the scheme for 1977-with the exception of what are described by the EEC as 'extremely sensitive products'.

18

Documentation of Imports and Exports

INDUSTRY AND TRADE

Import and export licensing formalities are kept to a minimum consistent with Hong Kong's international obligations. The most complex formalities are those result- ing from Hong Kong's obligations to restrain certain exports of textile products. Apart from the export licence covering textiles-for which a fee of $15 per application is charged-all other import and export licences are issued free of charge.

With Hong Kong's dependence on the export of manufactured goods-mostly made from imported materials-and on the substantial re-export trade, a certification of origin system to meet the requirements of overseas customs authorities is vitally important. The Commerce and Industry Department issues certificates of origin and accepts responsibility for safeguarding the integrity of the entire Hong Kong certifica- tion system. To this end, close liaison is maintained with overseas authorities and with the authorised non-government certificate-issuing bodies: the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce in Hong Kong, the Federa- tion of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, and the Chinese General Chamber of Commerce. The value of domestic exports covered by certificates of origin issued by the six organisations during 1976 was estimated at $12,604 million, of which $8,443 million was covered by departmental certificates.

Britain and a number of other Commonwealth countries grant preferential rates of duty to Hong Kong products. To support claims to preference, the Commerce and Industry Department issues Commonwealth preference certificates against detailed cost statements or legal undertakings given by manufacturers to use only Common- wealth raw materials. During the year, the department continued its efforts to persuade Commonwealth countries to accept certificates of origin issued by the department with an endorsement to show the requisite Commonwealth content in the manufacture of the products, instead of the Commonwealth preference certificates-which need to be prepared and signed by accountants. There are 24 Commonwealth countries which have accepted the simplified certification arrangement. The value of goods exported in 1976 under Commonwealth preference certificates and endorsed certificates of origin was $1,677 million.

A number of countries grant tariff preferences to Hong Kong under generalised preference schemes. These are: Austria, Canada, the European Economic Community, Japan, New Zealand, Sweden, Switzerland and the United States. Form 'A' certificates are issued for exports under claim to preferential entry into these countries. Since the beginning of 1976, the authorised non-government certificate-issuing bodies have been approved to certify such exports to Canada, Japan and Switzerland. The value of exports in 1976 covered by Form 'A' certificates amounted to $5,778 million.

      An estimated 62.4 per cent of Hong Kong's domestic exports are covered by certificates of one type or another 49.2 per cent of them by the department's cer- tificates.

The Trade Facilitation Committee is an advisory body to the Director of Com- merce and Industry and to industrial and other organisations in Hong Kong in the field of standardisation and simplification of trade documents and trade procedures.

INDUSTRY AND TRADE

19

During the year, representatives of the committee attended a series of international trade facilitation meetings. These provided opportunities for Hong Kong to learn from and exchange views with the national and international trade facilitation bodies that are in the forefront in research and development of modern methods and tech- niques in the handling of trade documentation and trade procedural matters.

Commerce and Industry Department

       The responsibilities of the Commerce and Industry Department include the conduct of overseas commercial relations, industrial development and investment promotion, certification of origin, trade controls, and the collection and protection of revenue from dutiable commodities. Its work is complemented by several auton- omous institutions either wholly or partly financed by public funds.

        On matters of policy affecting trade and industry other than textiles, the Director of Commerce and Industry takes advice from the Trade and Industry Advisory Board-of which he is chairman. It comprises 15 senior unofficial representatives of various sectors including commerce, industry, banking and insurance. The board is nominated by the Governor and usually meets once a month. The Textiles Advisory Board is a more specialised body which is also chaired by the Director and is consulted on matters affecting the textiles industry. It met on 34 occasions during 1976. Both these boards are served by specialist committees as the need arises.

        The Director of Commerce and Industry is also Commissioner of the Preventive Service. He is assisted in Hong Kong by two deputy directors, one of whom is also the Deputy Commissioner of the Preventive Service. There are seven assistant directors, one of whom is the Assistant Commissioner of the Preventive Service. These assistant directors head the seven divisions of the department: commercial relations (two divisions), industry, trade, textile controls, administration, and the Preventive Service. The department has three overseas offices-in Brussels, Geneva and Washington-and it is also represented in the Hong Kong Government Office in London.

         The commercial relations divisions collect and disseminate information on trade policy measures taken by other countries which may affect Hong Kong, and also keep abreast of the activities of international organisations. These divisions conduct Hong Kong's trade negotiations with other governments. The textile controls division is responsible for implementing agreements reached. This involves the calculation and allocation of quotas, and associated control procedures. The overseas offices are almost entirely concerned with commercial relations work and provide current information on international matters which may affect Hong Kong.

        The industry division provides liaison between industry and other government departments, promotes overseas investment in local industry, and deals with specific industrial problems. It undertakes factory visits and advises on industrial infrastruc- ture, special industrial projects and matters concerning industrial land.

The trade division is responsible for certification and documentation procedures, including an import and export licensing system for commodities other than textiles.

20

INDUSTRY AND TRADE

It operates a trade investigation service which undertakes the regular inspection of factories and goods in connection with certification and licensing controls, and pros- ecutes those suspected of contravening the relevant regulations. The division is also responsible for handling trade complaints and the control of reserved commodities, of which rice is the most important.

       A rice control scheme has been in operation since 1955. The object of the scheme is to ensure regular and adequate supplies of rice to consumers at reasonable prices. A reserve stock is maintained to safeguard supplies to the public.

       The administration division is responsible for the personnel, financial and general management of the department and for administrative liaison with the overseas officers. The work of the Preventive Service is described in detail in Chapter 10.

Trade Development Council

The Trade Development Council, established by statute in 1966, is responsible for promoting and developing Hong Kong's international trade. The chairman of the council is appointed by the Governor and its members include representatives of major industrial and commercial organisations, two senior government officials and four nominated members. The council is financed by an annual grant from public funds, together with minor income from advertising fees and sales of publications.

While the council's principal responsibility is the promotion of goods manu- factured in Hong Kong, it also works to improve imports-since Hong Kong depends heavily on overseas sources for the supply of capital goods, raw materials and semi- processed manufactures.

       In addition to its Hong Kong headquarters, the council maintains overseas offices in 15 key cities: London, Manchester, Frankfurt, Hamburg, Stockholm, Zurich, Vienna, Milan, Amsterdam, New York, Chicago, Los Angeles, Toronto, Tokyo and Sydney.

       The extensive trade promotion programme in 1976 involved more than 50 major international projects. They included fashion presentations in Los Angeles and New York which were widely acclaimed by the American trade and media.

During the first week of March, the same garments were featured at the annual Hong Kong Ready-to-Wear Festival, which is recognised as an international fashion trade event. The festival was attended by 3,000 trade buyers from 30 countries.

       Other promotion projects included Hong Kong's participation in the Nuremburg International Toy Fair, Cologne International Houseware Fair, Frankfurt Spring Fair, Sponga Fair, Leipzig Fair, New York Toy Fair, New York Premium Show, New York Jewellery Show, Chicago Electronics Show, Paris International Fair and Cairo International Fair. Solo exhibitions were held in Budapest, Warsaw and Prague.

Hong Kong business groups visited the Middle East on three occasions in 1976 and groups also toured West European countries, the United States, Canada, Australia, New Zealand, Japan, Indonesia, Singapore, Malaysia and the Philippines.

INDUSTRY AND TRADE

21

The Trade Development Council publishes the monthly 'Hong Kong Enterprise', half-yearly 'Hong Kong Apparel' and the annual 'Hong Kong Toys', and during the year it introduced another monthly journal, the "Hong Kong Trader', for circu- lation overseas. Two documentary films were completed and released. One of them was designed to promote the attendance of buyers at the 1977 Hong Kong Ready- to-Wear Festival and the other to brief overseas businessmen on Hong Kong's two- way trade opportunities.

Hong Kong Export Credit Insurance Corporation

As Hong Kong's export credit insurer, the corporation has over the past 10 years protected an increasing number of exporters against trading risks. The corporation's function is to assist its policyholders to bear the monetary consequences of in- solvencies, defaults and repudiations by Hong Kong's customers. It also covers political and economic risks which make it impossible for customers to transfer pay- ments to Hong Kong.

The government established the corporation in December 1966 and, from then to the end of 1976, exports amounting to more than $10 billion had been declared to the corporation, representing about 9,000 transactions a month.

        The corporation's credit control and credit assessment function is a considerable help to its policyholders, particularly the many small and medium sized Hong Kong exporters. The corporation carries out this role and indemnifies its policyholders against losses for a premium which is, on average, less than one half of one per cent.

        The corporation's current exposure is in the region of $450 million. There were 72 cases of claims and claims provisions in the financial year ended March 31, 1976. These amounted to nearly $5 million. The claims arose in nearly every major export market.

       An achievement of 1976 was the completion of the changeover of all policies from 85 per cent to 90 per cent indemnity, leaving only 10 per cent of any loss to be borne by the corporation's policyholders. These now number nearly 900, who are selling to more than 25,000 overseas buyers spread over 150 countries and territories.

       During the year special encouragement was given by the corporation to Hong Kong's manufacturers and exporters of capital and semi-capital goods-like ships, containers and machinery. Such revenue-producing capital equipment is often saleable abroad only if medium to long term credit is given for two to five years or even seven years. The overseas user of such equipment is normally required to pay by instalments on a quarterly or half-yearly basis until the debt is paid up.

       To make it easier for financial institutions in Hong Kong to provide the required finance for such major export items, the corporation is empowered to issue its 100 per cent unconditional guarantee to banks. Some interesting export orders, which would not have materialised if credit for five years had not been available, were obtained in 1976 on this basis.

22

INDUSTRY AND TRADE

      The corporation is assisted in its business by an advisory board comprising 12 members occupying leading positions in the government and in the banking, manu- facturing and exporting communities of Hong Kong.

Hong Kong Productivity Council

      The Hong Kong Productivity Council was established by statute in 1967 to promote greater productivity in industry and to encourage the more efficient use of resources. The council comprises a chairman and 20 members, all appointed by the Governor. There are 14 members representing management, labour, academic and professional interests, while the other six members represent government departments closely associated with various aspects of productivity.

The executive arm of the council is the Hong Kong Productivity Centre. It con- ducts a wide range of industrial training courses in technology and industrial manage- ment techniques; provides consultancy services and technical assistance to industry; undertakes economic research projects in industry; publishes a monthly bulletin and technical reports; organises overseas study missions; and collects and disseminates information relating to productivity.

The centre's facilities include eight lecture rooms, a low-cost automation unit, an industrial chemistry laboratory, an audio-visual unit, a technical reference library and a computer system.

      In keeping with the increasing demand from industry for technological know-how to enable it to diversify into more sophisticated product lines, considerable emphasis has been placed on industrial technology in the areas of training, consultancy and technical assistance. During 1976 the centre conducted 360 training courses, provided 1,850 man-days of consultancy services and undertook 60 technical assistance projects. It also organised study missions to Japan, Europe and the United States to enable industrialists to observe the latest technical trends abroad.

      Intensified efforts have been made to promote improved mechanisation. In addi- tion to the industrial and technology projects undertaken by the low cost automation unit and the industrial chemistry unit, the centre organised four industrial exhibitions during the year. They were designed to keep manufacturers abreast of the latest developments in production machinery, manufacturing equipment and industrial materials, and to facilitate contact between manufacturers and suppliers. The centre continued to place emphasis on its recruitment service, which is of special value to overseas industrialists setting up manufacturing facilities in Hong Kong.

      The first Directory of Hong Kong Industries was published in 1976 with the assistance of the Census and Statistics Department, to provide detailed reference to Hong Kong's manufacturing facilities.

      As a member of the Asian Productivity Organisation, Hong Kong was represented at the 1976 workshop meeting of heads of national productivity organisations, held in Singapore. Hong Kong's Productivity Centre is a full member of the International Federation of Documentation (FID) and is a participating organisation in the Asian Network of Industrial Technology Information and Extension (TECHNONET

INDUSTRY AND TRADE

23

ASIA), established under the auspices of the International Development Research Centre of Canada (IDRC).

Other Trade and Industrial Organisations

The Hong Kong General Chamber of Commerce-founded in 1861-is the earliest established trade association in Hong Kong. Its membership covers all branches of commerce and industry and it is represented on a number of government boards and committees. It is also a member of the International Chamber of Commerce. The chamber is actively involved in the promotion of Hong Kong's trade and in attracting new industry to Hong Kong in conjunction with the government.

        The Federation of Hong Kong Industries, established by statute in 1960, has a membership representative of all industries, many nationalities, and all sizes of enter- prise. The federation provides testing and inspection services for chemical, electrical, electronic and textile products, and for footwear, toys, watches, foodstuffs and pack- aging materials. To encourage the development of better industrial design, the federa- tion established the Hong Kong Industrial Design Council-which provides practical training courses for in-service designers and promotes annual design competitions. The federation also established the Hong Kong Packaging Council to promote the development of packaging education and technology and the development of skills and expertise in packaging.

The Chinese Manufacturers' Association of Hong Kong has more than 2,000 members representing factories and companies of all sizes. The association is a mem- ber of the International Chamber of Commerce and has played an important role in the industrial development of Hong Kong. It is active in promoting new product development and has held an annual Hong Kong New Products Award Competition since 1970. The association takes a keen interest in industrial training and has established a prevocational training school which opened in September 1976.

Consumer Council

To safeguard the interests of consumers in Hong Kong--both local and visiting- the Consumer Council was established by the government in April 1974. Its concerns include sales practices and goods, from whatever source, on sale in Hong Kong.

        The council comprises a chairman and 12 members appointed by the Governor from a wide cross-section of the community. The council advises on all policy matters and is served by a secretariat which is financed by subvention from general revenue.

       In the first 30 months of operation, the council's investigation section dealt with 12,632 complaints-ranging from overcharging to faulty goods and services, from unethical sales methods to short weights and measures. By means of persuasion and publicity, the council was able to settle most of the genuine complaints to the satisfac- tion of the consumers. This was due largely to the willingness of traders and business- men to co-operate and ameliorate the problems. Redress was obtained in 2,987 complaints in the form of refund, replacement, repair or prosecution in court. A further 4,053 complaints were resolved after the consumers accepted what the council

24

INDUSTRY AND TRADE

considered were satisfactory explanations from the traders. With the exception of 53 cases in which the council was unable to take further action, the remainder were found to be groundless or outside the council's terms of reference.

      In addition to reporting facilities at its main office, the council operates pilot advice centres in two city district offices. In their first three months the two centres handled 1,581 enquiries for information or advice and received 350 post-shopping complaints.

The council maintains a close watch on the prices of essential commodities and services. Its research section produces regular price surveys and in-depth reports on the supplies and trade patterns of various food and other commodities, and it studies topics of major concern to the consumer. One of the 33 research projects carried out by the end of 1976 dealt with the problem of the conversion rate between Hong Kong dollars and the pound sterling for British textbooks. The council recommended that the conversion rate be reduced by $3 to $13 to the pound. This was accepted by the book publishers in June 1976, bringing considerable savings in textbook ex- penditure to thousands of students.

A standing Consumer Legislation Committee advises the council on legislation needed to give more and better protection to the consumer. A Trade Descriptions Bill has been prepared to replace the Merchandise Marks Ordinance and a new Weights and Measures Ordinance is being drafted. At the government's request, the committee has submitted a report on hire-purchase.

The council's public relations section maintains close contact with the local mass media in educating the public on their rights and responsibilities as consumers. In schools, consumer education was incorporated into the syllabus of social studies for Form III in 1975, and the council has since been preparing teaching kits for both teachers and students. In August 1976, the council organised a seminar on consumer education, which was attended by some 150 principals of secondary schools or their deputies.

      In November, the council began publishing and selling a magazine called 'Choice' to replace a four-page monthly bulletin which had been available free to the public since August 1975. The 16-page magazine, printed in Chinese, includes a monthly report on comparative product testing conducted by the Hong Kong Standards and Testing Centre. The magazine also carries comparative price survey reports.

      Apart from co-ordination work with various government departments, the council has established close contact with 18 business and professional associations, with a view to encouraging them to establish voluntary codes of practice which will benefit the consumer. The Consumer Council is an associate member of the International Organisation of Consumers Unions.

Trade Marks and Patents

Trade marks are registered under the Trade Marks Ordinance, which is based on the Trade Marks Act 1938 of the United Kingdom. The procedure is laid down in the Trade Marks Rules, and the prescribed forms may be obtained free of charge

I =

Industry

The Substructure

In Hong Kong's free enterprise system there is room for everyone with a product to sell or a talent to employ. Aside from the major manufacturing industries which produce more than 70 per cent of domestic exports, there are countless other concerns which turn out a wide variety of goods. Many of these undertakings involve the use of age-old crafts like tinkering, glas blowing or woodcarving. Others cater to local tastes in food or international tastes in sailing boats, while still more require the skill and deftness of hand to make or assemble such things as umbrellas, fishing rods or bicycles with an efficiency that will ensure a good and steady market. Over the years these industries have provided a firm substructure to Hong Kong's manufactur ing world, catering to both domestic an foreign markets. Quality is high, many t the goods are unique, and the ambitious small businessman works in the knowledge that the small business can-and often does become big business. The craft in- dustries, many of them one-man or family operated, are a special attraction to tourists and contribute to the near-$3,000 million a year which the tourist industry earns in foreign currency.

i

Freshly-baked cakes (previous page) at or of the many local bakeries. Millions of um brellas like the one above are exported each year; a pewter horse is given a final polish: and the ticklish business of assembling feather dusters.

A

     A tinker gently taps a traditional pattern onto a brass plate.

Hong Kong has many experts in the ancient art of glass-blowing.

!

ANXXXIX.

Decorative pieces in hand-crafted metalwork are exported to many overseas countries-particularly the United States-from this studio.

10%

      tting spokes in the wheels at a Hung Hom factory where bicycles are produced for home and overseas arkets.

lou

301

ch Pira

Workers spread out the sail of a boat on the floor of their Fanling workshop prior to packaging.

HEMM

THE

dyed fabrics make an attractive display as they hang drying

Territories

T

The fibreglass fishing rods produced at this Kwun Tong factory are nearly all exported to Europes

INDUSTRY AND TRADE

25

from the Trade Marks Registry, Registrar General's Department. Every mark, even if already registered in Britain or any other country, must satisfy all the requirements of the Hong Kong Trade Marks Ordinance before it may be accepted for registra- tion. During the year 3,107 applications were received and 2,032 (including many made in previous years) were accepted and allowed to proceed to advertisement. A total of 1,850 marks were registered, the principal countries of origin being:

United States of America

Hong Kong

Japan

United Kingdom

West Germany

Switzerland

France

475

422

222

...

Italy

179

158

Australia Sweden

...

101

80

37

26

18

The total number of marks on the register at December 31, 1976, was 32,231.

Although there is no original grant of patents in Hong Kong, the Registration of United Kingdom Patents Ordinance provides that any person being the grantee of a United Kingdom patent may, within five years from the date of its issue, apply to have his patent registered in Hong Kong. Registration of a United Kingdom patent in Hong Kong confers on the grantee of the patent the same privileges and rights as though the patent had been issued in Britain with an extension to Hong Kong. The privileges and rights run from the date of the patent in the United Kingdom, and continue as long as the patent remains in force there. A total of 828 patents were registered during the year, compared with 605 in 1975.

Companies

The Companies Registry of the Registrar General's Department keeps records of all companies incorporated in Hong Kong and also of all foreign corporations which have established a place of business in Hong Kong.

Local companies are incorporated under the Companies Ordinance, which is to a large extent still based on the Companies Act 1929 formerly in force in Britain but now replaced by the Companies Acts of 1948 and 1967. However, as a result of the implementation of a number of recommendations made by the Companies Law Revision Committee (June 1971 and April 1973), several parts of the ordinance- notably those dealing with prospectuses, accounts and audit-have been amended. These parts now incorporate most of the relevant provisions of the Companies Acts of 1948 and 1967, although there are still differences between the ordinance and the current legislation in Britain.

On incorporation a company pays a registration fee of $300 plus $4 for every $1,000 of nominal capital. In 1976 there were 5,474 new companies incorporated- 1,304 more than in 1975. The nominal capital of new companies registered totalled $2,466 million--35 per cent more than the previous year. Of the new companies, 90 had a nominal share capital of $5 million or more. During the year 1,419 com- panies increased their nominal capital by amounts totalling $4,301 million, on which fees were paid at the same rate of $4 per $1,000. At the end of 1976 there were 43,877 local companies on the register compared with 38,985 the previous year.

26

INDUSTRY AND TRADE

Companies incorporated overseas 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, 84 such companies were registered and 36 ceased to operate. At the end of 1976 there were 940 companies registered from 48 countries, including 239 from the United States, 124 from Britain and 100 from Japan. Usually for tax reasons, many non-local companies incorporate a subsidiary in Hong Kong in preference to operat ing a branch office.

All insurance companies wishing to transact life, fire or marine insurance business in Hong Kong must comply with the provisions of either the Life Insurance Com- panies Ordinance or the Fire and Marine Insurance Companies Deposit Ordinance. 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. This is dependent on obtaining a certificate from the insurance division of the Depart- ment of Trade in London, stating that the company is authorised under the Insurance Companies Act 1974 to carry on insurance business in Britain or-in the case of fire and marine insurance-maintaining similar deposits elsewhere in the Common- wealth. There are altogether 277 insurance companies, including 116 local companies, transacting such business in Hong Kong. The approval of the Registrar General must be obtained for transacting motor vehicle third party insurance business.

The Companies Registry also deals with the incorporation of trustees under the Registered Trustee Incorporation Ordinance, and with the registration of limited partnerships and money-lenders.

Bankruptcies and Liquidations

In Hong Kong the number of business failures leading to formal insolvency proceedings in court is always comparatively small in relation to the total number of businesses closing down. During the year there were 39 petitions in bankruptcy and 73 petitions for the compulsory winding-up of companies. The court made 29 receiving orders, two administration orders and 64 winding-up orders. As in past years, the Official Receiver was appointed trustee or liquidator in almost every case. Assets realised by the Official Receiver during 1976 amounted to about $18 million. In addition to these compulsory windings-up, 183 companies went into voluntary liquidation-176 by members' voluntary winding-up and seven by credi tors' voluntary winding-up.

During the year a total of three ordinances dealing with bankruptcies and liquidations were enacted.

The Bankruptcy (Amendment) Ordinance 1976 introduced a number of measures designed to streamline administration of the ordinance, particularly in relation to small bankruptcies. These measures included power for the court, on the application of the Official Receiver, to dispense with public examination of the debtor, and provision for a summary procedure when the property of the debtor does not exceed $10,000.

INDUSTRY AND TRADE

27

The Bankruptcy (Amendment) (No. 2) Ordinance 1976 made a number of amendments to technical provisions of the ordinance and increased a number of the minimum financial limits in the ordinance which were considered to have become out of date. For example, the provision that the debt or aggregate amount of debts on which a petition for bankruptcy is based must be at least $500 was changed to increase the sum to $5,000.

The Companies (Amendment) (No. 2) Ordinance 1976 amended the provisions of the Companies Ordinance relating to liquidation of companies by introducing, where appropriate, provisions equivalent to those in the Bankruptcy Ordinance, together with a number of technical amendments to other provisions of the ordinance.

3

Financial Structure

HONG KONG's position as an international financial centre was emphasised in 1976 when the government was host to the Commonwealth Finance Ministers' Meeting. It was the first time that an important international ministerial meeting had been held in Hong Kong.

In an opening address, the Governor referred to Hong Kong's 'unusual economic and social scene' and told the visitors of the territory's policy of balancing prosperity and economic growth with social progress. He said Hong Kong was best known for the emphasis it places on the free operation of market forces, particularly the absence of constraints on trade and payments, and he hoped that the Commonwealth would continue to pursue policies designed to further international trade.

       The meeting, which was attended by ministers and officials from 34 Common- wealth countries, took place at the end of September. As is customary, it immediately preceded the annual International Monetary Fund/World Bank meetings, which on this occasion were held in Manila.

How Hong Kong Works

With the ultimate authority resting with the Legislative Council, Hong Kong has almost complete autonomy in financial affairs and draws up its own estimates of revenue and expenditure. However, approval by the Secretary of State for Foreign and Commonwealth Affairs is required before decisions are made on certain major matters such as currency and banking.

       Hong Kong is financially self supporting and the government's accounts showed a surplus of $487 million for the year 1975-6.

A substantial contribution is made by Hong Kong to the costs of the garrison which is stationed locally, and a new seven-year Defence Costs Agreement came into effect on April 1, 1976.

The Urban Council, operating through the Urban Services Department, is also free to draw up its own budget and to determine its own priorities of expenditure within its various spheres of activity. These are financed mainly from the yield from the Urban Council rate and partly from other sources of revenue related-largely through fees and charges-to the services and facilities the council provides.

       The Housing Authority, which is responsible for the development and manage- ment of all public housing, is financed mainly from loans from the government's Development Loan Fund and income from rents. It is also allocated land at sub- stantially less than market value. Its executive arm is the Housing Department. The

FINANCIAL STRUCTURE

29

      authority is responsible for squatter control, clearing squatters from sites required for development, and developing licensed areas. The cost of these activities and the deficit arising from the management of former resettlement estates are financed from general revenue.

        The Mass Transit Railway Corporation, which was established in September 1975, is a statutory body independent of the Hong Kong Government but owned by it. The corporation was set up to construct and operate the mass transit railway now being built. It has an authorised share capital of $2,000 million. Of this total, the government has stated that it will subscribe $800 million in cash. Part of this sum will be set off against the indebtedness of the corporation to the government for pre-incorporation expenses, and the balance will provide funds for the corporation to meet its overhead preliminary expenses and certain land costs. Unlike the Housing Authority, the rest of the corporation's capital expenditure is being financed through export credit facilities and from borrowings in local and international markets. The bulk of these borrowings are backed by government guarantees.

Surpluses and Deficits

        A small deficit in the government's accounts was returned in the first financial year after World War II. In the 30 years since then, three other deficits have been returned in 1959-60, 1965-6 and 1974-5, when there were deficits of some $45 million, $137 million and $380 million respectively. Otherwise a series of surpluses, some of them substantial, have been accumulated in the years up to and including 1975-6. The accumulation of these surpluses has been consistent with the need for the government to build up reserves so that the holdings of these reserves grow broadly in line with the growth of the economy and of public expenditure, and to otherwise balance its total expenditure and revenue on average over a period of years.

       The accumulation of reserves has been achieved partially through a strong growth in revenue. Particularly during the earlier years, revenue went up without appreciable increases in rates of tax because of exceptionally rapid increases in population and consequently in economic activity. Revenue has expanded more than 21 times from $309 million in 1951-2 to $6,519 million in 1975-6. The rate of increase has been affected by variations in such factors as the economic situation and inflows of capital, but the upward trend has been strong and continuous.

       In expenditure there was inevitably a time-lag before the government could develop the community and social services necessary for an increasing population and made possible by economic growth itself. But as these services were developed at a gradually accelerated rate, the margin between recurrent expenditure and recurrent revenue narrowed.

        It was the pace of economic growth which gave rise to surpluses in the years from 1969-70 up to 1973-4, with the highest surplus of $640 million being achieved in 1971-2. There was a net deficit of $380 million in 1974-5 due largely to increased spending on public works, social welfare, and university and Polytechnic grants, but

30

FINANCIAL STRUCTURE

during 1975-6 economic growth was resumed and the accounts again returned to surplus. Revenue of $6,519 million (as compared with the original estimate of $6,184 million) exceeded expenditure of $6,032 million (original estimate $6,615 million) for the year by $487 million. Revenue and expenditure for the years 1974-5 and 1975-6 together with the estimates for 1976-7 are detailed and compared in Appendices 7 and 8. Sources of revenue, and expenditure in various fields, are shown proportionately by charts in Appendices 7a and 8a.

For 1976-7 the estimated revenue is $6,857 million and expenditure $7,212 million, so that a deficit of $355 million is estimated for the year.

Assets, Liabilities and Funds

At March 31, 1976, net available public financial assets were $2,810 million, while the public debt was equivalent to some $403 million-about $92 per head of popula- tion. Indebtedness increased by $267.2 million during 1975-6 principally as a result of the issue of $250 million-worth of Government Bonds. Interest at the rate of 6 per cent per annum is payable on the bonds half-yearly in May and November, and they are repayable at par in November 1980.

Also contributing to the increased public debt was a loan of US$3.2 million obtained from Lloyds Bank International, on which interest is payable half-yearly at varying rates. The loan is repayable by five equal annual tranches commencing in August 1976. Additional borrowings totalling $3.9 million were also made during the year under the Asian Development Bank Loan towards the construction of seawater desalting works near Castle Peak in the New Territories. The interest rate for this loan is 7 per cent per annum, and the capital sum is repayable over 10 years from January 1976. The Rehabilitation Loan, of which $50 million was raised in 1947-8 to cover part of the cost of post-war reconstruction, is repayable not later than 1978. Its sinking fund stood at $35.3 million on March 31, 1976.

In addition to these assets and liabilities, there is a Development Loan Fund and a Lotteries Fund which exist for special purposes. The Development Loan Fund- which is financed mainly by transfers from general revenue, interest payments and capital repayments-totalled $1,013.8 million at March 31, 1976. It is used to finance social and economic developments of a self-liquidating nature. The greater part has been used for low-cost housing schemes, but during the year 6,448 students at Hong Kong's two universities and at the Hong Kong Baptist College received interest-free loans totalling $18.2 million. At March 31, 1976, liquid assets amounted to $214.4 million and outstanding commitments to $256.5 million.

The Lotteries Fund mainly provides grants and loans to finance the development of social welfare services. The fund was started in 1965 with a transfer from general revenue of $7.4 million, and an additional $68.2 million has since been credited through the net proceeds of the Government Lotteries, the Royal Hong Kong Jockey Club Lotteries and the auction of special vehicle registration numbers. At March 31, 1976, grants and loans amounting to $62.3 million had been approved. A further sum of $1.6 million-being unclaimed prize money-was held on deposit.

FINANCIAL STRUCTURE

Audit

31

The audit of all government accounts and those of more than 80 statutory and non-statutory funds and public bodies is carried out by the Director of Audit. His appointment, tenure of office, duties and powers are prescribed in the Audit Ordinance. To ensure the director's complete independence in the exercise of his functions, the ordinance provides that he shall not be subject to the direct control of any other person or authority. It also prescribes certain safeguards against his dismissal or premature retirement.

The annual report and certificate of the Director of Audit on the accounts of the Hong Kong Government, which he submits to the Governor, is presented to the Legislature and transmitted to the Secretary of State.

Duties

There is no general tariff on goods entering Hong Kong but excise duties are charged on four groups of commodities-alcoholic liquors, tobacco, certain hydro- carbon oils and methyl alcohol-irrespective of whether they are imported or manu- factured locally.

On liquors, the basic duty rates range from $2.70 per gallon on Hong Kong brewed beer to $123 per gallon on brandy. On tobacco, rates range from $3.70 per pound on Chinese prepared tobacco to $19.80 per pound on cigars. Rates on hydro- carbon oils are $1.60 per gallon on diesel oil for road vehicles and $2.20 per gallon on motor and aircraft spirits. The rate for methyl alcohol is $9.90 a gallon.

All firms engaged in the import, export, manufacture or sale of dutiable com- modities must be licensed.

Rates

Rates are levied on landed properties on the basis of the rateable value-which, briefly stated, is the annual rent at which a property might reasonably be expected to be let. The annual charge for the year commencing April 1, 1976 was 18 per cent of the rateable value, payable quarterly in advance. Exceptions were Tsing Yi Island, where the charge was 11 per cent, and a number of other developed and developing parts of the New Territories where the charge was nine per cent. In the urban areas the charge of 18 per cent was apportioned to general rates (12 per cent) and Urban Council rates (six per cent), the latter being paid to the council to finance many of its activities. These percentages may be varied from one year to the next by resolution of the Legislative Council.

The valuation lists, prepared by the Commissioner of Rating and Valuation, cover all rated properties on Hong Kong Island, in Kowloon and New Kowloon, and in certain specified parts of the New Territories. Rateable values for properties in a further eight developed and developing parts of the New Territories, specified during 1976 for rating, will be effective from April 1, 1977. Following a complete review of all rateable values carried out during the year, up-to-date valuation lists will come into effect on April 1, 1977.

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       There are few exemptions from rates. Educational, charitable and welfare premises are rated, but the government generally provides financial assistance where such premises are run by non-profit-making organisations. No relief is available for vacant domestic premises, but a refund of half the rates paid may be granted in the case of non-domestic premises.

       The estimated revenue from rates for 1976-7 is $882 million, of which about $267 million will go to the Urban Council.

Internal Revenue

Earnings and profits are taxed under the Inland Revenue Ordinance according to the form of the income arising in or derived from Hong Kong. The current standard rate of tax of 15 per cent has been in force since April 1, 1966. The various forms of income which are subject to separate taxes are property, business profits, interest and salaries.

Property Tax is charged at the standard rate on the owner, but there are exemp- tions including property occupied by the owner for his residential purposes, vacant property, and property in certain undeveloped parts of the New Territories. Following proclamations by the Governor, a number of previously exempted areas of the New Territories have become chargeable to the tax. Properties owned by corporations carrying on business in Hong Kong are exempted, because profits from their owner- ship are chargeable to Profits Tax.

Interest Tax is charged at the standard rate on interest arising in or derived from Hong Kong. It is withheld at source unless it forms part of the profits of a corporation carrying on a trade or business in Hong Kong, in which case it is subject to Profits Tax. Interest payable by the government and licensed banks of up to two per cent per annum, and by public utilities 34 per cent, is exempt (these rates effective from August 6, 1976 and March 1, 1975 respectively).

Profits Tax is charged on profits arising in or derived from Hong Kong from any trade or business carried on in Hong Kong. Unincorporated businesses are charged at the standard rate of tax of 15 per cent. Corporations were charged at 16.5 per cent for the year of assessment commencing April 1, 1975 and they are chargeable at 17 per cent for the year of assessment commencing April 1, 1976 and onwards. Expenses incurred in the production of profits chargeable to tax are deductible, as are charitable donations up to a maximum of 10 per cent of net assessable profits.

Salaries Tax is charged on emoluments arising in or derived from Hong Kong. Tax is calculated on a sliding scale which varies from five per cent to 30 per cent on net chargeable income-income after deduction of personal allowances. However, the overall effective rate of tax is limited to 15 per cent of the income before deducting personal allowances. These allowances are: for the taxpayer, $10,000; his wife, $10,000; the first child, $3,000; the second child, $2,500; and the third child, $1,500. The allowance for the fourth to sixth child is $1,000 each, and for the seventh to ninth child $500 each. Apart from the deduction of expenses necessarily incurred in produc- tion of the income, and charitable donations up to 10 per cent of assessable income, there are no other allowances.

FINANCIAL STRUCTURE

33333

        A further feature of the Inland Revenue Ordinance is the right of a taxpayer to elect for what is known as Personal Assessment. This aggregates his income from the four sources mentioned earlier and gives him the benefit of the same personal allow- ances and sliding scale of tax as would be allowed for Salaries Tax purposes. Tax paid on the individual sources of income is allowed to be set-off.

        It is estimated that the taxes on earnings and profits will yield $2,428 million in the financial year 1976-7.

        Estate Duty is imposed on that part of a deceased person's estate which is situated in Hong Kong. The estate value exemption limit is $300,000. The rate of duty varies from six per cent on estates valued between $300,000 and $400,000 to 18 per cent on those in excess of $3 million. The yield for the year 1976-7 is estimated at $62 million.

        Stamp Duty imposes fixed duties on certain classes of documents and ad valorem duties on others. The estimated yield from Stamp Duty for the year ended March 31, 1977 is $420 million.

Entertainments Tax is charged on the prices of admission to race meetings and cinemas. The tax is charged at varying rates depending on price of admission, averag- ing approximately 22 per cent in the case of race meetings and 10 per cent in the case of cinemas. The estimated yield for 1976-7 is $22 million.

        Betting Duty is imposed on bets made on authorised totalisators or pari-mutuels, on the proceeds of lotteries conducted by the Hong Kong Lotteries Board, and on contributions towards authorised cash sweeps. The duty on bets is charged at either 71 per cent or 11 per cent, depending on the type of bet placed, and on cash sweep contributions and proceeds of lotteries it is 25 per cent. The duty on bets and sweeps is recovered from the Royal Hong Kong Jockey Club which holds the monopoly for conducting such operations, including a limited form of off-course betting. The estimated yield for the year ending March 31, 1977 is $180 million.

Hotel Accommodation Tax is imposed on hotel and guest house accommodation and is levied at the rate of four per cent on the accommodation charges (three per cent in 1975-6). For the financial year 1976-7, this tax is estimated to yield $14 million.

Business registration is compulsory for every company incorporated in Hong Kong, every overseas company with a place of business in Hong Kong and every business operating in Hong Kong-except those carried on by charitable institutions. The annual registration fee is $150 but exemption from payment of the fee is granted where the business is small. The total income from registration fees, service fees for copy documents and other fees for the financial year 1976-7 is expected to be $29 million.

In June, the third Inland Revenue Ordinance Review Committee began its sittings to consider the system of taxation of profits and other forms of income. It accepted written submissions from organisations and members of the public who wanted to express their views on taxation matters within the committee's terms of reference. These included the system of voluntary aggregation under personal assessment, the taxation of husbands and wives, the treatment of dividends and its relation to the

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     taxation of corporate profits, the treatment of interest and the relief for interest paid, the taxation of benefits in kind, and the taxation of specific classes of taxpayer. The committee's report was due to be made public early in 1977.

Currency

Hong Kong has no central bank. Bank notes are issued by three commercial banks the Hongkong and Shanghai Banking Corporation, the Chartered Bank and the Mercantile Bank. Currency notes of one cent denomination are issued by the government, as are coins of five dollars, two dollars, one dollar, 50 cents, 20 cents, 10 cents and five cents. A $1,000 gold coin was issued in 1975 to commemorate Her Majesty the Queen's visit and the first of a series of $1,000 gold coins to com- memorate the Chinese Lunar New Year was issued early in 1976. The total currency in nominal circulation at the end of 1976 and details of its constitution are shown in Appendix 11.

The value of currency issued by the note-issuing banks is backed by an Exchange Fund, which was set up in 1935 when the Hong Kong dollar ceased to be based on silver. The fund receives payment in Hong Kong dollars from these banks in exchange for certificates of indebtedness. These certificates are non-interest bearing and are issued and redeemed as the value of notes in circulation rises and falls. They provide the legal backing for the notes issued by the banks-apart from their small 'fiduciary' issues which are limited to a total of $95 million and are issued against securities, of a kind approved by the Secretary of State, which are deposited to the order of the Hong Kong Government. The Exchange Fund's resources are employed in a variety of investments, both long and short term, denominated in several currencies. Out of the income derived, the fund bears the cost of the note issue except for a small propor- tion, equivalent to the proportion of the 'fiduciary' issues to the total note issue, which is met by the note-issuing banks.

As from April 1, 1976, the bulk of the foreign currency assets of the General Account and all the assets of the Coinage Security Fund were transferred to the Exchange Fund against the issue of debt certificates denominated in Hong Kong dollars bearing interest at appropriate market rates. This means that all losses and gains resulting from changes in the Hong Kong dollar value of official foreign assets will accrue to the Exchange Fund, which was designed for the purpose of regulating the exchange value of the currency of Hong Kong. Consequently, the general revenue balance in the government's statement of assets and liabilities will normally only reflect the difference between the government's cash receipts and payments. The state- ment of assets and liabilities is published annually in the report of the Director of Accounting Services.

The exchange value of the Hong Kong dollar was established in 1935 at about 1s 3d sterling ($16 to £1). On the setting up of the International Monetary Fund after World War II, the Hong Kong dollar was given its own gold parity at a rate reflecting this relationship. The relationship with sterling was, however, not a statutory one, and was established and maintained by the operations of the Exchange Fund in conjunc tion with the note-issuing banks. It weakened after the devaluation of the pound in

FINANCIAL STRUCTURE

35

November 1967, and it ended after the pound was allowed to float downwards in June 1972. Early in the following month the Hong Kong Government decided to fix the exchange value of the Hong Kong dollar in terms of US dollars instead of sterling. But in November 1974 this link was broken as well and the Hong Kong dollar was allowed to float independently. Since then its value has fluctuated according to market conditions. Appendix 5 sets out changes in the exchange value of the Hong Kong dollar from 1946 to November 1974.

During 1976 the Hong Kong dollar strengthened appreciably but, unlike the previous year, it was not subject to the severe fluctuations experienced by many other currencies. At the end of 1976 the overall value of the Hong Kong dollar against the currencies of Hong Kong's major trading partners, as measured by a trade-weighted index, was some seven per cent higher than at the end of 1975 and nine per cent higher than in the period immediately before the currency floated.

Until 1971 Hong Kong kept virtually all its official external reserves in sterling. Holdings were then progressively diversified and, by late 1976, only about 20 per cent was held in sterling and the balance in several other currencies.

Since the beginning of 1973, transactions between Hong Kong and overseas countries have been free of all exchange control restrictions.

Banking

The use of the word 'bank' in Hong Kong is restricted to banks licensed under the Banking Ordinance and to representative offices of foreign banks. The ordinance provides for the supervision and inspection of banks by the Commissioner of Banking and obliges the banks to meet certain minimum requirements with respect to their capital and liquidity. At the end of 1976 there were 74 licensed banks with a total of 759 banking offices, and also 93 representative offices of foreign banks.

Bank deposits increased during 1976 by 21 per cent to $44,030 million at Decem- ber 31. Loans and advances increased by 22 per cent to reach $42,735 million. Banking statistics for the past three years are shown in Appendix 12.

Finance companies owned by foreign banks and other non-bank financial institu- tions which take deposits from the public are now required to register under the Deposit-taking Companies Ordinance which came into effect on April 1, 1976. By the end of the year 179 companies had registered under the ordinance.

Securities

The Securities (Amendment) Ordinance 1976 was enacted in August to correct certain difficulties and anomalies which had become apparent since the Securities Ordinance came into operation in 1974. The amendments are concerned for the most part with clarification and application, and none involves a change in the basic principle of the ordinance. The Securities (Stock Exchange Listing) Rules 1976 also came into effect in August 1976 under the Securities Ordinance. The rules provide

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FINANCIAL STRUCTURE

that the securities of a company shall not be listed on a local exchange unless the com- pany appoints as share registrar a member of the Federation of Share Registrars. Legislation on unit trusts and mutual funds is under way.

       The members of the Securities Commission completed their two-year term early in 1976 and were re-appointed for another term.

       Although the Hong Kong Code on Takeovers and Mergers does not have the force of law, it has received support from all those concerned since its inception in August 1975. During 1976 there were 11 takeovers-including three offers by cash, one by cash and exchange of shares, and seven by means of a scheme of arrangement under the Companies Ordinance.

       The combined Stock Exchanges Compensation Fund-established for the pur- pose of compensating those who suffer pecuniary loss as a result of default by stock- brokers amounted to $25.8 million at the end of the year. This included a surplus of $1.8 million from investments which was subsequently distributed proportionately to the four stock exchanges. Up to the end of 1976 no payments had been made from the fund. Deposits lodged by dealers other than stockbrokers stood at $4.7 million. In addition, a surplus of more than half a million dollars was made and subsequently divided among the depositors. The purpose of the deposits is to give limited protection to investors against any default by dealers who are not members of a stock exchange. But, unlike the Compensation Fund, the deposits are not pooled.

At the end of 1976 there were 2,202 persons registered under the Securities (Dealers, Investment Advisers and Representatives) Regulations 1974. They included: 92 corporate dealers; 1,023 individual dealers, including 934 stockbrokers on the four stock exchanges; 45 corporate investment advisers; 81 individual investment advisers; 909 dealers' representatives; and 52 investment representatives. During the year 19 corporations were declared exempt dealers and four corporations were declared exempt investment advisers.

The turnovers for 1976 reported on the four exchanges were: Far East Exchange, $6,018.2 million; Hong Kong Stock Exchange, $3,188.7 million; Kam Ngan Stock Exchange, $3,755.5 million; and Kowloon Stock Exchange, $193.5 million. The total of $13,155.9 million is an increase of 27.3 per cent as compared with the previous year.

      One company came to the market by way of private placement of shares. At the end of the year the shares of 294 companies, including 23 overseas companies, were listed on the four stock exchanges.

Commodities Trading

       The Commodities Trading Ordinance was enacted on August 4, 1976. It is designed to permit the establishment of an international futures commodity exchange in Hong Kong and to regulate trading in commodity futures contracts. The ordinance provides for the establishment of a Commodities Trading Commission and a Com- missioner for Commodities Trading to be the regulatory authorities charged with implementing the provisions of the ordinance.

FINANCIAL STRUCTURE

37

        The Governor in Council is empowered to grant a licence to the Exchange Com- pany to operate a commodity exchange in Hong Kong, and the ordinance provides a broad regulatory framework within which the exchange will operate. It also provides for the registration of all commodity dealers in commodity futures contracts, and of commodity trading advisers and their representatives. The Commodities Trading (Dealers, Commodity Trading Advisers and Representatives) Regulations supplement the registration provisions of the ordinance. Registered dealers will be required to keep proper accounts of their businesses and to submit annually an audited balance sheet and profit and loss account to the Commissioner.

The ordinance deals with trading procedures and seeks to prevent improper practices. It also prohibits trading of options on the commodity exchange. A dis- ciplinary committee is to investigate any allegations of misconduct on the part of the Exchange Company or its associated organisations, and also to hear appeals from dealers whom the Commissioner refuses to register. The ordinance requires the Exchange Company to establish a compensation fund to meet claims of clients in the event of default of a member. Among other provisions the Governor in Council, after consultation with the commission, is empowered to make regulations to supplement the provisions of the ordinance.

4

KO

Employment

THERE were 26 items of legislation passed during the year to improve the safety, health, welfare and training of workers and their conditions of employment. Labour legislation has frequently been revised over the past 10 years, with 132 items con- cerning the Labour Department having been passed in that time. More improvements are planned for the next five years, including amendments to the Employment Ordin- ance to provide for one week's paid annual leave from 1978 and also improvements in severance pay and sickness benefits in 1977.

       The 1976 legislation included safety regulations for work in compressed air, the spraying of flammable liquids, the installation and operation of goods lifts, the guard- ing of machinery and the manufacture of dry-batteries. An amendment was also made to the Factories and Industrial Undertakings Ordinance in support of a new policy on lease enforcement.

The Apprenticeship Ordinance was enacted to regulate and improve apprentice- ship in designated trades or occupations. Details of apprenticeship contracts and related matters are provided for in the Apprenticeship Regulations.

The Factories and Industrial Undertakings Regulations were amended to reduce overtime for young people by stages.

During the year amendments were also made to the Employment Ordinance to increase the number of statutory holidays to 10 a year and to require employers to give workers one rest day a week from January 1977.

       Wages of industrial workers increased appreciably during 1976 as Hong Kong recovered from the 1974-5 world-wide recession. By September average daily wages (excluding fringe benefits) had increased by 25 per cent compared with the base period of July 1973 to June 1974. Over the same time, the cost of living index went up by 12 per cent. The index of real average daily wages was 112 compared with the base index of 100.

In December 1976 a total of 773,746 workers were employed in 36,303 establish- ments in the manufacturing sector. Some 381,825-the largest section of the labour force-were engaged in weaving, spinning, knitting, and the manufacture of garments and made-up textile goods. The plastics industry and the electrical industry were the next two largest employers. Details of the distribution of manufacturing establish- ments and of people engaged in them are given in Appendices 13 and 14.

       The bulk of the industrial population is concentrated in the urban areas of Hong Kong Island, Kowloon, and New Kowloon, but there is increasing industrial develop- ment in the New Territories, particularly in the new towns of Tsuen Wan and Kwai

EMPLOYMENT

39

Chung. Although most workers are engaged in modern manufacturing processes, and to a small extent in mining and quarrying, traditional village industries still provide employment.

The 1971 population census recorded a total working population of 1,582,849 in Hong Kong-1,049,989 male and 532,860 female. The main distribution of the workforce was: manufacturing, 677,498; services, 312,173; commerce, 208,604; con- struction and engineering, 168,773; transport and communications, 114,722; agricul- ture, forestry and fishing, 62,975; public utilities, 8,870; mining and quarrying, 4,518; and other industries, 24,716.

Wages and Conditions of Work

Most semi-skilled and unskilled workers in the manufacturing industries are piece-rated, although daily rates of pay are common. Men and women receive the same rates for piece-work, but women are generally paid less when working on a time basis. Wages may be calculated on an hourly, daily, or monthly basis, or on piece rates-when they are customarily paid every 10 or 15 days.

Daily wages for the manufacturing industries at the end of 1976 ranged from $22 to $69 for skilled workers; $15.10 to $46.20 for semi-skilled workers; and $14 to $31.50 for unskilled workers. Many employers provide their workers with free accommodation, subsidised meals or food-allowances, good attendance bonuses, paid rest days, and a Lunar New Year bonus of one month's pay.

A consumer price index (A), based on a household expenditure survey conducted during the period July 1973 to June 1974, is compiled as an indicator of the effect of price changes on the expenditure of households spending $400-$1,499 a month. In December 1976 this index stood at 112 (see Appendix 16). A consumer price index (B) is also compiled to show the effect of price changes on the expenditure of households spending $1,500-$2,999 a month.

The Factories and Industrial Undertakings Ordinance and its regulations control the hours and conditions of work in industry. Under these regulations, women and young people aged 16 and 17 are permitted to work a maximum of eight hours a day and 48 hours a week. They must be given a rest break of at least half an hour after not more than five hours of continuous work and a weekly rest day. In addition, the regulations limited overtime employment for women and these young people to 200 hours a year as from January 1976.

        The Factories and Industrial Undertakings (Amendment) (No. 3) Regulations 1976, approved by the Legislative Council on December 22, introduced a scheme to reduce the hours of permissible overtime for young people by 50 hours a year with effect from January 1, 1977. By January 1, 1980, overtime for young people will be prohibited.

No children under the age of 14 are allowed to be employed in industry. In addi- tion to 121,632 regular day and night inspections of industrial undertakings by the labour inspectorate, three special campaigns against child employment covering

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EMPLOYMENT

     16,059 factories were mounted during the year. A total of 332 cases involving 391 children were brought before the courts.

Young people aged 14 and 15 are only allowed to work eight hours a day with no overtime employment. Women and young people are prohibited from working at night or underground. Since 1970, a few large factories-mostly engaged in cotton spinning have been granted special permission to employ women at night subject to stringent conditions. This concession is reviewed annually.

There are no legal restrictions on hours of work for men although the regulations provide for a pre-employment medical examination of men employed underground or in tunnelling operations, and for periodical medical examinations of men under the age of 21 employed underground. Generally, men employed in industry work between eight and nine hours a day. Government employees and those working for the better employers in the private sector may work shorter hours but usually not less than seven hours a day. Restrictions on the hours of work for women and young people in industry have resulted in a decrease in the number of hours worked by men employed alongside women and young people in the same concern.

       The Employment (Amendment) Ordinance 1976 provides all manual workers and all non-manual workers earning not more than $2,000 a month with four extra statutory holidays in addition to the existing six with effect from January 1, 1977.

       The Employment (Amendment) (No. 2) Ordinance 1976 provides for four addi- tional rest days a year with effect from January 2, 1977 by requiring employers to give workers one rest day a week instead of four rest days a month.

Trade Unions

       With the exception of a small neutral and independent segment, most employees' unions are either affiliated to, or associated with, one of two local federations which are registered as societies and bear allegiance to opposing political groups. Due to political differences, the number of unions has grown beyond practical needs, and divergent loyalties have prevented those with common interests from amalgamating into effective organisations.

The Hong Kong Federation of Trade Unions is a left-wing organisation. Most of the members of its 67 affiliated unions are concentrated in shipyards, textile mills and public utilities. A further 29 unions, nominally independent, are friendly towards the federation and participate in its activities. The Hong Kong and Kowloon Trades Union Council has right-wing sympathies. Most of the members of its 84 affiliated unions, and of the nine nominally independent unions which generally support the Trades Union Council, are employed in the catering and building trades. The Trades Union Council is affiliated to the International Confederation of Free Trade Unions.

There are 122 independent unions, some of which continue to make improve- ments in their internal administration and in the services offered to their members.

The legal requirements regarding the registration and control of trade unions are specified in the Trade Unions Ordinance which is administered by the Registrar of Trade Unions.

EMPLOYMENT

41

       Of the 367 unions on the register at the end of the year, 311 were employees' unions with an estimated membership of 362,600; a further 44 were organisations of merchants or employers with an estimated membership of 4,850; and 12 were mixed organisations with an estimated membership of 6,000.

Labour Administration and Services

        The Labour Department, including the mines division, has an establishment of 1,002 to provide services which are continually expanding. The branch offices in the urban areas and the New Territories, all within easy access to the public, play a significant role in dealing promptly with labour matters.

       The Commissioner for Labour is the principal adviser to the government on labour matters. He is also the Commissioner of Mines.

Labour legislation is initiated in the Labour Department, which also ensures that Hong Kong's obligations under international labour conventions are observed. The department is made up of nine divisions: administration, apprenticeship, develop- ment, employment, industrial health, training council, industry, labour relations, and mines.

        The Labour Relations Ordinance which became effective on August 1, 1975 has provided machinery for special conciliation, voluntary arbitration and boards of inquiry for the settlement of trade disputes in the event of failure to bring settlement through ordinary conciliation. Since the ordinance came into operation, practically all of the 177 trade disputes have been settled by ordinary conciliation. It has not yet been found necessary to invoke special conciliation or to refer any trade dispute to arbitration or a board of inquiry.

        In 1976 the labour relations service dealt with 6,162 labour problems, most of which were of a grievance nature involving individuals with claims for wages in arrears, severance payment, wages in lieu of notice, and holiday pay. There were 15 work stoppages and the number of working days lost in these disputes was 4,751, compared with 17,600 in 17 work stoppages in 1975.

The Labour Tribunal, which is part of the Judiciary, has functioned with success since its inception in March 1973. The tribunal complements the labour relations service and in no way supersedes the existing conciliation services of the Labour Department. During 1976 the tribunal dealt with 1,880 cases involving employees as claimants and a further 102 cases in which the claims were initiated by employers. More than $2.3 million was awarded by presiding officers. Of the cases dealt with by the tribunal, 94 per cent were referred from the labour relations service after un- successful conciliation attempts.

By the end of the year, the Labour Department had record of 58 formal joint consultative committees in 25 establishments, compared with 54 committees in 24 establishments in 1975. In addition, 61 firms are recorded as having some method of informal consultation. Most are working smoothly and achieving the object of bring- ing management and employees together to improve relationships and to allow each to benefit from the experience of the other. Similar committees established in certain

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EMPLOYMENT

government departments have discussed a wide range of administrative, welfare and organisational problems.

A total of 114 special visits were made during the year to employers to promote joint consultation and other good labour relations practices. The labour relations service organised two discussion groups of employers to consider labour relations problems arising from the labour shortage, and representatives from 24 industrial establishments took part in these discussions. In October, the Labour Department issued a Code of Labour Relations Practice which sets out the principal guidelines for the promotion of harmonious labour relations between employers and employees.

Safety

The factory inspectorate of the Labour Department's industry division is respon- sible under the Factories and Industrial Undertakings Ordinance and its subsidiary legislation for the safety and health of workers in factories, building and engineering construction sites, and other industrial undertakings. Advice and assistance are given to management on the guarding of dangerous parts of machinery, the adoption of safe working practices, and the general layout of factories to achieve safer working conditions.

       The Factories and Industrial Undertakings Ordinance was amended in February 1976 to require the Commissioner for Labour not to issue any certificate of registra- tion or provisional registration to a factory in a non-industrial building for which the occupation permit was issued on or after March 1, 1976. This new provision in effect prohibits factories, except those engaged in service trades, in new buildings not designed and constructed for industrial use, and is in accordance with a new lease enforcement policy.

The Factories and Industrial Undertakings (Work in Compressed Air) Regula- tions came into operation on April 1, 1976. They provide for the safety and health of people working in compressed air-a new aspect of work arising from the construc- tion of the mass transit railway which requires a considerable amount of tunnelling work under compressed air.

The Factories and Industrial Undertakings (Spraying of Flammable Liquids) Regulations came into operation on July 1. They provide for special safety precautions in any industrial undertaking which sprays flammable liquids.

The Factories and Industrial Undertakings (Goods Lifts) Regulations were approved by the Legislative Council on May 26. They provide for the maintenance, examination and safe operation of goods lifts used in industrial undertakings.

During the year the Industrial Safety Training Centre provided safety training courses for workers from various industries as well as students from vocational train- ing centres and schools. Several courses on work in compressed air were also organised for supervisors engaged in this type of construction work.

On display at the permanent exhibition centre were a variety of machine guards, models depicting safe working practices at construction sites, and personal protective

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43

equipment. In addition, a number of mobile exhibitions on electrical safety were held at various construction sites. Four new safety posters were also produced for distribu- tion to industry.

Finding Employment

The local employment service operates a free placement service from five offices. During the year the service helped 5,747 workers find employment.

In 1973 a special register was established to offer employment assistance to graduates of local universities as well as Hong Kong graduates from overseas univer- sities and post-secondary colleges seeking to return to Hong Kong for employment. In 1976 the service successfully placed 62 graduates in employment.

The Contracts for Overseas Employment Ordinance controls contracts of em- ployment entered into in Hong Kong between overseas employers or their duly authorised representatives and all manual workers-including domestic servants (with the exception of certain specific categories) proceeding overseas for employment. Such contracts have to be presented to the Commissioner for Labour for attestation before workers depart from Hong Kong. During the year 490 contracts were attested, compared with 602 in the previous year.

Permission to work in Britain is given by the United Kingdom Department of Employment. Work permits are issued to applicants through the Hong Kong Immigra- tion Department.

Since September 1975 administrative measures have been introduced to regulate and protect the employment of domestic helpers recruited from overseas under valid contracts of employment which have to be attested by the Labour Department. During the year 1,917 such employment contracts were attested.

Under the Employment Ordinance, all profit-making employment agencies-- unless in an excluded class-are required to obtain a licence before starting operation. In 1976 the Labour Department issued 28 licences to local employment agencies and nine to those catering for employment overseas.

The youth employment advisory service provides careers information to students and young people through the preparation and regular revision of careers pamphlets and occupations leaflets. It has so far produced 36 pamphlets and 50 occupations leaflets, and additional ones are under preparation. A monthly 'Careers Newsletter' is also produced and distributed to secondary schools, youth centres and other in- terested organisations. During the year the service completed the preparation of a series of slide presentations on careers. The slides are used in seminars and exhibi- tions and have proved popular with students and young people.

In 1976 officers of the service gave 349 careers talks in 88 schools and 21 youth centres to some 22,000 students and youngsters. The service also organised seven seminars and participated in four others which provided careers information to students, teachers, parents and interested individuals.

44

EMPLOYMENT

       The fifth careers exhibition was held at the new railway terminus complex at Hung Hom from November 19-28. It was opened by Sir Denys Roberts, the then Acting Governor. Some 22 exhibitors from commerce, industry and government took part in the exhibition, which attracted nearly 92,000 visitors. During the year 11 mini careers exhibitions were staged on a specially designed truck which called at housing estates, parks, community centres and schools.

Industrial Health

The industrial health unit of the Labour Department provides an advisory service to the government and industry on matters relating to the health of workers. The unit is primarily concerned with protecting workers against physical and chemical hazards in their working environment and preventing occupational diseases. Potential health hazards in the working environment are reported by the factory inspectorate and officers of the unit, and a further check is kept through the statutory notification of occupational diseases. Control is achieved by environmental and biological in- vestigation and monitoring, and through health education. The unit's laboratory, staffed by technicians specially trained in industrial hygiene, has been designated as a collaborating laboratory on air pollution by the World Health Organisation.

       The functions of the laboratory include the measurement of concentrations of various chemicals in the air-such as chromium, lead, manganese, mercury, solvents, dust, sulphur dioxide and nitrogen oxides. The laboratory investigates and monitors environmental conditions such as noise, thermal comfort, ventilation and lighting. It also investigates industrial accidents and occupational diseases. Medical and pathological examinations are arranged for workers exposed to risks of lead, fluoride, silica dust, ionizing radiation and other occupational hazards, and for divers and workers in compressed air.

       Responsibility for the clinical examination and medical assessment of injured workers lies with the industrial health officers who are medically qualified. Visits to homes and places of work of injured workers are made by nurses and health visitors of the industrial health unit.

The workmen's compensation unit administers the Workmen's Compensation Ordinance and is responsible for ensuring that injured workers or their dependants receive the compensation to which they are legally entitled.

The air pollution control unit has a team of 12 smoke inspectors who operate under the air pollution control officer. The unit is responsible for the administration of the Clean Air Ordinance, the Clean Air (Furnaces, Ovens and Chimneys) (Instal- lation and Alteration) Regulations, and the Clean Air (Restriction and Measurement of Smoke Emission) Regulations. It offers free constructive advice and technical assistance to the industrial and commercial sectors on the efficient use of fuel and the reduction of smoke emissions and other aerial pollutants.

Industrial Training

       In 1973 the Governor appointed the Hong Kong Training Council to advise him on measures necessary to ensure a comprehensive system of manpower training geared

EMPLOYMENT

45

to meet the developing needs of Hong Kong's economy. On the council's recommenda- tion, the Governor appointed 10 industry training boards and five committees to assist the council. The 10 training boards deal with the training needs and problems of 10 major industries: automobile repair and servicing; building and civil engineer- ing; clothing; electrical; electronics; machine shop and metal working; plastics; printing; shipbuilding and ship repair; and textiles. The committees on the other hand examine problems common to more than one industry-such as apprenticeship, instructor training, technical training in institutions, translation of technical terms, and vocational training. The Training Council also has two ad hoc committees one on training in the commercial and service sectors, and the other on technologist training. The council submitted its second report to the Governor in June 1976. The training council division (formerly known as the industrial training division) of the Labour Department is the secretariat of the Training Council.

In 1976 manpower surveys were conducted by the five training boards covering the printing, automobile repair and servicing, shipbuilding and ship repair, electronics, and machine shop and metal working industries. Postal surveys were carried out by the working parties of the ad hoc committee on training in commerce and the services. The Training Council also approved for publication several survey reports and manuals of job standards, many of which are on sale at the Government Publica- tions Centre.

The Clothing Industry Training Authority and the Construction Industry Train- ing Authority, appointed by the Governor in September 1975 pursuant to the Industrial Training (Clothing Industry) Ordinance and the Industrial Training (Con- struction Industry) Ordinance respectively, made considerable progress in the year. The clothing authority is empowered to collect a training levy on the total export value of clothing items manufactured in and exported from Hong Kong, while the construc- tion industry authority collects a levy based on the value of all construction works undertaken in Hong Kong. The revenue collected will be used to set up and maintain training centres to provide practical training in key occupations for the clothing and construction industries.

The Apprenticeship Ordinance, which aims at promoting apprentice training and regulating the employment and training of apprentices in designated trades, came into effect on July 19, 1976. The ordinance applies to all employers and young people aged between 14 and 18 years engaged in designated trades. The essence of the ordinance is that an employer engaging a young person in a designated trade must enter into a contract of apprenticeship with him unless he has already completed an apprenticeship in that trade. Employers who employ apprentices in non-designated trades may voluntarily register their contracts with the Commissioner for Labour under the ordinance. At about the time when the ordinance was brought into opera- tion, 23 trades had been specified by the Governor as designated trades.

        The apprenticeship division of the Labour Department is responsible for admin- istering the ordinance. In relation to registered apprentices this responsibility covers: advising and assisting employers in the training and employment of apprentices;

46

EMPLOYMENT

ensuring that the training of apprentices is properly carried out; and co-operating with technical institutions to ensure that apprentices obtain the necessary instruction.

       Courses of instruction for apprentices, normally on a part-time day-release basis, are provided at the Polytechnic (technician level) and at the technical institutes (mainly at craft level).

       In the field of prevocational and vocational training, a number of centres provid- ing training in technical, commercial and catering trades are run by the government and by voluntary welfare agencies.

5

Primary Production

In its efforts to become as self-sufficient as possible in the production of fresh foods, Hong Kong began a new series of fishery surveys during 1976 to explore the pelagic or midwater marine resources in the South China Sea.

The project follows earlier surveys and studies which show that Hong Kong could face a shortage of sea fish by 1981. This is mainly because the traditional fishing grounds are in danger of being over exploited. These grounds have long been fished for locally-popular species of demersal or sea-bottom fishes.

The aim of the surveys is to establish the temporal and geographical distribu- tion of unexploited midwater fish stocks in the northern part of the South China Sea in order to help determine what should be done to maintain an adequate supply of fish. Dependent on which species are found to be the most abundant, the surveys will also help the government to plan the introduction of the most appropriate types of fishing gear to exploit such species.

The surveys began in October and will take a year to complete. They are being carried out by the Agriculture and Fisheries Department from its research vessel Cape St. Mary, on which a powerful sonar has been installed to locate shoals of fish. Also in use are a scientific echo sounder and other sophisticated equipment on permanent loan from the South China Sea Fisheries Development and Co-ordinating Programme, which is funded by the United Nations and the Canadian International Development Agency.

In the production of fresh foods generally-such as vegetables, pigs, poultry and fish-Hong Kong already meets a significant proportion of the community's requirements, even though only 12 per cent of the total land area is used for farming and less than two per cent of the working population is involved in fishing.

The 1971 census showed that farmers comprised only 2.09 per cent of the total economically active population of Hong Kong, while fisherfolk made up another 1.88 per cent. Hong Kong's fishing fleet catches about 92 per cent of all fresh marine fish eaten in the territory, and local pond fish farmers produce some 15 per cent of the freshwater fish consumed. Agricultural production is limited by the availability of suitable land rather than by numbers of people in the industry. Farmers in the New Territories produce about 44 per cent of the vegetables consumed, some 48 per cent of the total live chicken requirements, and about 16 per cent of all pigs slaughtered.

       The sudden increase in Hong Kong's population during the 1950s, due to large scale immigration from China, gave considerable stimulus to agricultural production --both because of the increased demand and because many arrivals were skilled

48

PRIMARY PRODUCTION

     farmers. As a result, there was a rapid growth of intensively cultivated vegetable farming and livestock production increased greatly.

       Progressive developments also took place simultaneously in the local fishing industry. A large fleet of wind-driven junks-which had previously migrated up and down the coast, dependent upon the seasonal winds-was encouraged to become based at Hong Kong and concentrate on supplying the marine food demands of the territory's expanded population. That ready market stimulated fleet modernisation and, with government assistance, the mechanisation of the existing fleet was quickly initiated. Further impressive advances have since been made in the transition of the fleet from junks to modern boats using increasingly sophisticated gear and equipment.

A continued increase in marine fish production is needed to meet expanding demand. The present slow growth rate of supply in terms of total catch, although with fewer vessels, indicates that the demersal or bottom fisheries of the grounds now worked are already being fully exploited to provide maximum sustainable yield.

Traditional rice cultivation has continued to decrease as vegetable growing has expanded. The profit margin on rice cultivation has dropped in recent years, and much former paddy land around the more remote villages has fallen into disuse and now lies fallow. The able-bodied members of these rural communities have moved to the city or overseas for better paid work. Meanwhile, the acreage under vegetables has continued to increase. The skilled cultivator can maintain a good standard of living from a one-acre farm, and now uses many modern horticultural techniques such as sprinkler irrigation, mechanised cultivation and better pest control measures to maintain a continuous succession of crops throughout the year.

Pig and poultry production is more susceptible to changes in the quantity level of imported swine and poultry and to fluctuations in the prices of feeding stuffs, which are almost entirely imported. With lower feed prices and higher prices for poultry and pigs during the year, local production of pigs and poultry showed in- creases of 20 per cent and 16 per cent respectively above the levels of 1975.

Administration and Services

The Agriculture and Fisheries Department provides a development information service to the primary industries. The details of new projects put forward are carefully considered, and those expected to prove both viable and in the interests of Hong Kong are actively encouraged.

       Consumer demand and local primary production, within the context of world food production and supply, are investigated so that development planning can be undertaken. All available statistical data on production factors and food supplies, including imports, are collected and analysed to assist in the formulation of local production and marketing policies. Business efficiency of differing sectors and units within primary industries are studied to establish and update productivity standards, and to facilitate advice on their improvement. Forward projection studies of the anticipated market demands for foods are prepared. The projections are then related

PRIMARY PRODUCTION

49

to the local primary production capacity, both actual and potential. New food supply sources are also examined. Detailed surveys and studies are carried out on the distribution systems, and on the dynamics of the wholesale marketing of foodstuffs, so that long term development decisions can be planned.

The department encourages optimum land utilisation. It provides technical, development and advisory services to farmers. It manages large areas of open country- side, being responsible for soil and water conservation, fire fighting, woodland manage- ment, landscape repair, and the development of recreational services for the public. The department also deals with the economic, social and technological development of the Hong Kong fishing industry. It handles the administrative organisation and supervision of co-operative societies of all types and supervises credit unions.

Research programmes of the department extend to and include crop and animal husbandry as well as fisheries. On government farms, experiments are conducted to improve the quality and yield per acre of vegetables, flowers and fruit. The department advises livestock farmers on modern methods of animal production and assists them in the supply of improved and exotic breeds of pigs and poultry, and also provides an artificial insemination service for pigs.

         Fisheries research is conducted from a station in Aberdeen and from two sub- stations, on Kat O Island and at Au Tau. The main station is concerned with the fishery surveys in the northern sector of the South China Sea, and with marine pollution surveys in Hong Kong waters. During the year the two sub-stations con- tinued investigations into production systems for inland and marine fish culture development.

Development

        Development services are provided for the agricultural and fishing industries. Due primarily to rising labour costs, the main development in the agricultural industry is the increasing interest which farmers show in the use of pre-emergence herbicides for weed control in market garden crops and the use of small farm machines and sprinkler irrigation. At the end of 1976 there were 1,950 rotary cultivators and 950 sprinkler units in use on vegetable farms.

       Hong Kong is divided into three districts for agricultural development. Each district is administered by a senior field officer, supported by teams of specialists trained to deal with problems in farming and agricultural pollution and with co- operative societies. Close contact with the farming community and liaison with local co-operative societies and rural associations is maintained by farm advisers. Both credit facilities and technical advice are available through the development service.

        In the rural development programme in 1976, more than 3,000 farmers attended farm discussion groups led by professional and technical officers from the Agriculture and Fisheries Department. Some 80 field demonstrations of chemical weed control were conducted in the main vegetable growing areas for the benefit of farmers. Officers also made more than 159,000 visits to farmers and co-operative societies, and many farmers visited government experimental farms and farming projects.

50

PRIMARY PRODUCTION

       Fisheries development work involves the modernisation of fishing craft and the introduction of more efficient fishing gear and navigational aids. An advisory service on hull design and deck arrangement is provided for fishermen, while experiments and demonstrations are conducted to test the suitability for local conditions of new fishing gear. Fishermen's training classes in navigation, steering and engine operation are organised in the main fishing ports. Education is available to fishermen's children through 13 schools run by the Fish Marketing Organisation. At the end of 1976 there were 3,997 children attending the 13 schools, and 41 were attending other schools on scholarships provided by the organisation.

       Close contact with the fishing community is maintained through a liaison service with producer associations and fishermen's co-operative societies. Nine liaison offices operate in the main fishing centres to provide a link with the fishermen.

Loans

Loans are available to the agricultural industry through four separate loan funds -the Kadoorie Agricultural Aid Loan Fund, the J. E. Joseph Trust Fund, the World Refugee Year Loan Fund and the Vegetable Marketing Organisation Loan Fund. They are all administered through the Agriculture and Fisheries Department. At December 31, 1976, the total loans issued since the inception of these four funds was nearly $95 million. The total recovered was nearly $90 million.

The Fisheries Development Loan Fund, with a capital of $5 million, is administer- ed by the Director of Agriculture and Fisheries specifically for the development of the fishing fleet. Finance from the World Refugee Year Loan Fund for Co-operative Societies, donated by the United Nations High Commissioner for Refugees in 1962, is also available to members of fishermen's co-operative societies. The Fish Marketing Organisation Loan Fund is another important source of loan finance for fishermen. This fund, with a ceiling of $7.5 million, was established in 1946. The organisation also administers a revolving loan fund financed by the Co-operative for American Relief Everywhere (CARE), specifically for shrimp fishermen. At December 31, 1976, the total loans issued since the inception of the four loan funds was $73.22 million, of which $65.27 million had been repaid.

       Co-operative societies operate under a Co-operative Societies Ordinance, which provides for the appointment of a Registrar (the Director of Agriculture and Fisheries). His powers and duties relate to the registration of co-operative societies and their by-laws, the examination of accounts, general supervision, and such matters as media- tion of disputes when necessary, At December 31, 1976, some 11,700 farmers and more than 2,000 fishermen were members of co-operative societies formed to serve their various needs. There were 80 societies and two federations among the farming community and 70 societies and four federations supported by fisherfolk. A further 252 societies with about 8,400 members operate in the urban area, the bulk of these being co-operative building societies formed by local civil servants with financial aid from the government. The movement includes primary societies with such diverse objects and activities as vegetable marketing, pig raising, agriculture and fisheries credit, better living, thrift and loan, housing, and the supply of consumer goods.

PRIMARY PRODUCTION

51

Credit unions operate under a Credit Unions Ordinance, which also provides for the appointment of a Registrar (the Director of Agriculture and Fisheries) with powers and duties in regard to the registration of credit unions and their by-laws, the examination of accounts and general supervision. At the end of the year, 53 credit unions with 9,932 members were registered. There were 27 credit unions comprising groups of people having a common bond of association; 20 unions of people having common bonds of employment; and six unions formed by groups each with a common bond of residence.

Land Utilisation

Hong Kong's land area totals 404 square miles. Only 11.6 per cent is used for farming, 76 per cent is marginal land with different degrees of sub-grade character, and built-up areas comprise the remaining 12.4 per cent. The need to establish new towns and residential areas on plans that provide for adequate open space, wider roads and public facilities of all kinds, inevitably means encroachment upon agricul- tural land. The losses, however, are partially offset by more intensive production and by development of marginal land. The New Territories Administration is responsible for land tenure and certain aspects of land development in the New Territories.

Class

Approximate

area

(square miles)

Percentage of whole

Remarks

(i) Built-up (urban areas)

(ii) Woodlands

...

(iii) Grass and scrub lands

...

50

12.4

Includes roads and railways.

48

11.8

Natural and established woodlands.

238

58.9

Natural grass and scrub, including

Plover Cove Reservoir.

(iv) Badlands

17

4.1

:

Stripped of cover. Granite country.

Capable of regeneration.

(v) Swamp and mangrove lands...

5

1.2

Capable of reclamation.

(vi) Arable ...

40

9.9

Includes orchards and market

gardens.

(vii) Fish ponds

7

1.7

Fresh and brackish water fish

farming.

Agricultural Industry

        The government's policy is to foster the growth of the agricultural industry in Hong Kong to make the territory as self-sufficient in foodstuffs as possible, bearing in mind priorities in land utilisation and the economics of food production in the region.

        Common crops are vegetables, flowers, rice, fruit and other field crops. The value of crop production has increased considerably-from $89 million in 1963 to $296 million in 1976, a rise of 233 per cent. Vegetable production accounts for more than 83 per cent of the total value, having increased from $58 million in 1963 to $246 million in 1976.

        Rice is the staple food of the southern Chinese. Two crops of rice a year can be grown on land where water is adequate. The normal yield from an acre of two-crop rice land is about two tons, or up to five tons with high fertiliser use and high yielding

52

PRIMARY PRODUCTION

strains. The acreage of rice land has dropped from 23,353 acres in 1954 to 2,780 in 1976. Rice production continues to give way to intensive vegetable production, which gives a far higher return where there is adequate water and good road access.

       The main vegetable crops are white cabbage, flowering cabbage, lettuce, Chinese kale, radish, watercress, leaf mustard, spring onion and chive. They grow all the year round, with the peak production period in the cooler months. Considerable quantities of water spinach, string bean, Chinese spinach, green cucumber and many other species of Chinese gourds are produced in summer, and a wide range of exotic temperate vegetables including tomato, sweet pepper, cabbage, celery, head lettuce, cauliflower and carrot are grown in winter. Straw mushroom is also produced, using industrial cotton waste as the growing medium. Among the common types of flowers, gladiolus and chrysanthemum grow all the year round; dahlia, rose, aster, snapdragon and carnation are grown in winter; and ginger lily and lotus flower in summer. A wide range of ornamental plants-including philodendron, dieffenbachia, bamboo palm and poinsettia are produced in commercial nurseries. Peach blossom and ornamental citrus are grown especially for the Lunar New Year. The area of land under vegetables and flowers has increased from 2,250 acres in 1954 to 12,410 acres in 1976.

       Various types of fruit are grown on the lower hill slopes. The principal crops are longan, lychee, wampei, tangerine, local lemon, banana, guava and pineapple. Land under orchards in 1954 was 952 acres. By 1976 it was 1,520 acres.

       Other field crops such as sweet potato, taro, yam and sugarcane are cultivated in the remote and drier areas where water and transport facilities are inadequate for growing vegetables or rice. Some 800 acres were under rainfed crops in 1976, com- pared with 3,480 acres in 1954.

To prevent the introduction and spread of injurious plant pests and diseases into Hong Kong, plant quarantine legislation was introduced in May 1976. Live plants excluding certain scheduled species may be imported if they are accompanied by a valid phytosanitary certificate and covered by an import licence. Importation of soil and plant pests is prohibited except under a special permit granted by the Director of Agriculture and Fisheries.

As there is insufficient land for extensive grazing, pigs and poultry are the principal animals reared for food. Pigs in Hong Kong are mostly crosses of local animals with exotic stock, and pure strains of the Chinese type are becoming difficult to find. Although locally produced pigs represented only 16 per cent of total pigs killed in 1976, their value was $147 million.

With an annual production value of $211 million, the poultry industry-including ducks, pigeons and quail-is continuing to develop on a more sophisticated basis. Farmers are adopting advanced methods of management and successfully adapting them to local conditions, taking the process through from locally bred chicks to table birds with both local breeds and imported hybrids.

       While local cattle and buffaloes are used mainly for work, imported Friesians are kept by dairies-of which the largest is on Hong Kong Island and the others in the New Territories. Regular tuberculin testing is carried out on all dairy animals.

PRIMARY PRODUCTION

53

       Sporadic outbreaks of a mild type of foot-and-mouth disease (type O) and swine fever still occur, but these have been kept under control by vaccination. Newcastle disease in poultry has been controlled by the use of the Ranikhet and intranasal-drop vaccines. No outbreaks of Rinderpest have occured since 1950. Tissue culture vaccine is still being used in some of the young dairy cattle to give life-long protection. Investigations to establish the incidence of intercurrent disease in both pigs and poultry are undertaken at the government's veterinary laboratory.

       All imported dogs and cats other than those imported from Britain, the Irish Republic, Australia and New Zealand are subject to six months' quarantine. To prevent the re-introduction of rabies, which was eradicated in 1955, stray dogs are caught and if unclaimed are destroyed under the rabies control policy. Any dog which bites a person is required to be detained for observation in government kennels.

       All cattle and pigs imported for food are also quarantined on arrival in Hong Kong, and any imported for breeding purposes are subject to strict health certification and isolation procedures.

Agricultural Waste Treatment

       In 1976 the new agricultural waste treatment section of the Agriculture and Fisheries Department embarked on fresh efforts to help farmers tackle the problem of treating and disposing of agricultural wastes. In recent years the pig and poultry livestock industries in Hong Kong have caused considerable pollution of water- courses in the New Territories. Pig manure in many cases is hosed directly from buildings into streams and poultry manure is often dumped either directly into streams or close by, from where it is subsequently washed into the streams by rainfall. These wastes have blocked irrigation channels and stream courses, which has aggravated flooding during high summer rains and has affected the flow of irrigation water to fields. In some cases water has become so polluted that it can no longer be used for irrigation purposes. Because it is difficult for the individual to solve such pollution problems by himself, attempts are being made to co-ordinate farmers' efforts.

Fishing Industry

       Marine fish form one of Hong Kong's most important primary products. More than 150 fish species of commercial importance are present in the areas fished by the local fleet. The total quantity of fish and fishery products has increased from 121 500 tonnes (valued at $316 million) in 1970 to 156 900 tonnes (valued at $643 million) in 1976. This is an increase of 29 per cent by quantity and 103 per cent by value. In 1976, marine fish landings amounted to 96 300 tonnes at a wholesale value of $317 million. This represented 92 per cent of the local consumer demand.

       The fishing fleet consists of 5,500 vessels, of which 93 per cent are mechanised. An estimated 44,000 fishermen work the fleet, with a large proportion of vessels being owner-operated.

54

PRIMARY PRODUCTION

       Fish ponds totalling 1 777 hectares are located in the New Territories, principally in the Yuen Long district. The main species raised is grey mullet, but also important are four carp species which make up about 55 per cent of the annual yield. Total pond fish production for 1976 was 5 182 tonnes valued at $42 million, which met 15 per cent of local demand. Fish fry for pond stocking are mainly imported from China and Taiwan. Grey mullet fry are caught locally.

       The culture of marine fish continues to develop. It involves the growing of marine fish from fry or fingering stages to marketable size in cages suspended in the sea in various bays throughout the New Territories. It is estimated that 983 families were engaged in this business in 1976, and the total value of fish produced was $17 million.

       A Marine Fish Culture (Control) Ordinance is to be introduced in 1977 to licence, control and protect the marine fish culturists. A new section of the Agriculture and Fisheries Department was established in June 1976 to carry out the initial im- plementation of the ordinance.

Marketing

       Much of the wholesale marketing of primary products-particularly fresh foods -is a responsibility of the Agriculture and Fisheries Department, and of the fish and vegetable marketing organisations administered by that department. Retail fresh food marketing is a matter for the Urban Council and for the Urban Services Department.

       The local agriculture and fishing industries are served by the vegetable and fish marketing organisations. During the year 32 per cent of the total quantity of locally produced vegetables, and 68 per cent of the total landings of marine fish, were whole- saled through these two organisations.

       The Vegetable Marketing Organisation operates under the Agricultural Products (Marketing) Ordinance, which provides for a board to advise the Director of Market- ing (the Director of Agriculture and Fisheries). Its main concerns are the transporta- tion of locally produced vegetables from the New Territories to the wholesale market in Kowloon, the provision of marketing facilities, and the supervision of sales and financial transactions in the market. Revenue is obtained from a 10 per cent com- mission on sales of vegetables. The organisation is a non-profit-making concern and seeks to obtain maximum returns for growers by minimising their marketing costs. During the year, 59 710 tonnes of vegetables valued at nearly $78 million were sold through the organisation.

       The Fish Marketing Organisation operates under the Marine Fish (Marketing) Ordinance, which also provides for an advisory board. The ordinance provides for the control of the landing, wholesale marketing, import and export of marine fish. The Fish Marketing Organisation operates seven wholesale fish markets strategically sited at points to provide convenient services to the public, the trade and the industry. Revenue is obtained from a six per cent commission on proceeds of sales of fish, and surplus earnings are ploughed back into the industry in the form of various services. These include low-interest rate loans to fishermen for productive purposes,

PRIMARY PRODUCTION

55

market and marketing improvements, and support for the 13 schools managed for the benefit of fishermen's children. In 1976 the wholesale fish markets handled 92 498 tonnes which were sold for some $261 million. This included 795 tonnes of imported marine fish sold through these markets.

        Facilities are inadequate in the existing wholesale markets for handling the ever increasing quantities of imported fresh vegetables, fruit, poultry, freshwater fish and crustacea. There is widespread obstruction, traffic congestion and low marketing efficiency at high costs. With the obvious need for improvement in these markets, comprehensive surveys have been conducted to obtain the data necessary for the long-term planning and establishment of new markets in Kowloon and on Hong Kong Island. They will be under the direct aegis of the Agriculture and Fisheries Department.

Because of the need for early action, it has proved necessary for the government to construct a number of temporary wholesale markets for use until permanent markets are built. Two are located at Hing Wah Street in the Cheung Sha Wan district, adjacent to the site for the permanent market project in Kowloon, and a third which is under planning will also be located in the same district.

Mining

        Until 1976 iron ore was mined from one underground mine in the New Terri- tories and the concentrate (magnetite) was exported to Japan. For economic reasons this mine had to cease operations as from April. Kaolin, feldspar and quartz continue to be taken by opencast methods. Most kaolin is exported to Japan and most feldspar to Taiwan. All quartz, some feldspar and about 30 per cent of kaolin are consumed by local light industries.

Under the Mining Ordinance, the ownership and control of minerals is vested in the Crown. The Land Officer is empowered to grant mining leases and the Com- missioner of Mines to grant mining and prospecting licences. Details of leases and licences in operation are published twice a year in the Government Gazette. At the end of 1976 there were three mining leases, nine mining licences, and one prospecting licence valid for different areas.

       The mines division of the Labour Department deals with applications for prospecting and mining licences, the issue of mine blasting certificates, and delivery of explosives from government depots to blasting sites. It is responsible for inspecting mining and prospecting areas, stone quarries, blasting sites and explosives stores, to enforce mining and explosives legislation and safety regulations. It is also respon- sible for the control and management of government depots which provide bulk storage facilities for all explosives imported into Hong Kong. As a result of an agreement reached in 1975 with Headquarters British Forces, a quantity of explosives is now stored at their ammunition depot on Stonecutters Island to relieve the storage burden at the government depots.

6

Education

     MEASURES to speed up the secondary education expansion programme were approved in 1976 to enable the government to provide a subsidised Form I secondary school place for every Primary 6 leaver in 1978-one year ahead of the target laid down in the White Paper on Education.

The measures include the building by 1978 of 33 new schools and the conversion of a number of under-used primary schools to create 13 new secondary schools and two annexes to existing schools. Certain temporary expedients will also have to be taken-including the flotation of classes, an extended day system of operation, and the purchase of places in private schools. To reduce the reliance on these temporary expedients, it is planned to build a further 35 new secondary schools by Septem- ber 1981.

The provision of secondary schooling for all primary school leavers will eliminate the need to compete for places through the secondary school entrance examination, and this examination will be set for the last time in 1977. Children who entered Primary 5 in September 1976 will be the first to take part in new procedures for the allocation of secondary school places-based on recommendations of the working party on the replacement of the secondary school entrance examination. The main feature of the new system will be the allocation of pupils to schools on an area basis and on the results of three internal school assessments. A centrally administered academic aptitude test will also be introduced to monitor and scale the internal assessments.

        Emphasis was also placed in 1976 on improving the quality of education. Provisional syllabuses for junior secondary forms were produced for the new common- core curriculum. Corresponding syllabuses at senior secondary level were also reviewed and revised to ensure that they provide a good foundation for pupils to sit the Hong Kong Certificate of Education examination.

        In September, the Educational Television Service (ETV) was extended to secondary schools as well as primary schools. The new programmes are all in colour and about $2.5 million has been spent on providing schools with video cassette recorders and colour television receivers. More than 80,000 Form I pupils are benefit- ing from the new service, which will be extended to Form II in 1978 and Form III in 1979.

        An Unofficial Member of the Legislative Council, Mr Q. W. Lee, was appointed by the Governor as the new chairman of the Board of Education in June for a period of two years. The Director of Education continues to be the vice-chairman of the

B

Music

School Bands

Some 500 schools in Hong Kong each have their own band or orchestra. This getting together to make music is generally an extra-curricular activity and the thousands of youngsters involved give up much of their spare time to practise and to play in concerts. Most of the instruments are bought through fund raising efforts by groups of students and parents, but some of the orchestras and bands have been financed by the schools themselves. In all government schools, percussion instru- ments and recorders feature in the music training which is part of the normal cur riculum, and the Education Department is at present looking for ways to increase the amount of instrumental music in schools. For all young musicians, the highlight of the year is the annual schools' music festival-which was started nearly 30 year ago. Brass and wind bands were the firs instrumental ensemble classes to be in troduced into the festival, and every year some 800 youngsters in bands from sec- ondary schools compete for the Police Band Trophy. The festival is run by the Hong Kong Schools Music and Speech Association, which helps and encourages young musicians throughout the year and offers low-cost tuition in a variety of instruments.

I

A tuba player (previous page) in the Wellington College band. At the Kiang Chekiang College (above), the drum ma gives a smart salute before leading the dri mers into action; and the fife section of the Pui Ying Middle School band.

ther musician in the distinctive epaulettes and feathered headgear of the Kiangsu Chekiang College

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The New Method College has three bands-brass, pipe and bugle. There are 80 players in all, presenting an imposing display as they form up in the college courtyard.

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Two students from the Salesian English School show their skill on the French horn.

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Members of the Pui Ching Middle School band giving an open-air concert for their fellow students.

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Band practice at the Buddhist Tai Kwong Middle School is watched over by an image of Buddha.

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board, which advises the Governor on educational matters. Under the terms of the Education Ordinance, the Director of Education is responsible for the superintendence of matters relating to education and for promoting education in Hong Kong. He directly controls all government schools, while virtually all other schools are required to be registered under the ordinance, as are the managers and teachers of these schools.

Kindergartens

        There are 807 kindergartens providing education for 161,471 children in the three to six age group. These institutions are not maintained by the government but are registered with the Education Department and are advised and supervised by the Advisory Inspectorate. The government gives assistance in the form of grants of Crown land to reliable bodies; exemption from payment of rates for non-profit- making kindergartens; the allocation of premises in public housing estates; and the provision of teacher training and related facilities. It also makes freely available professional advice to school managers, teachers, parents and members of the public.

Primary Education

        The target of providing a government or government-aided primary place for every child of primary school age was achieved in 1971. Since then, education has been free in all government primary schools and in the majority of aided primary schools. In the few aided primary schools where fees continue to be charged, fee remission of up to 20 per cent of total enrolment may be awarded to meet cases of genuine hardship. To help needy parents further, a textbook and stationery grant of $30 per pupil each year is available to 20 per cent of pupils enrolled in government and aided primary schools.

        In recent years there has been a downward trend in primary school enrolment as a result of the decline in the birth rate. In September 1976 the total primary day school enrolment was 607,990, compared with 644,192 the previous year. In addition 15,751 pupils attended primary night schools. During the school year 15,120 new primary places were provided in new and developing schools, compared with 16,910 the previous year. Further provision of places will be planned mainly to meet the needs of developing areas, particularly the new towns.

        The administration of primary schools has been decentralised for a number of years and there are now seven administration areas-two on Hong Kong Island, three in Kowloon and two in the New Territories. This arrangement enables close contact to be maintained between the Education Department and the schools. Under the Education Ordinance the Director of Education has power to order parents to send their children to school where it appears that the parents are withholding their children from primary school without reasonable excuse. These powers are exercised only after careful investigation of family circumstances and the needs of the child, and parents have the right of appeal to a speedily constituted board of review.

        During the year 17 primary schools from different parts of Hong Kong, Kowloon and the New Territories were included in a project organised jointly by the Education

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Department and the Social Welfare Department. This was the school social work scheme, through which school social welfare workers aimed to give assistance and guidance to pupils who were found to have learning, emotional and other problems arising from home circumstances.

The great majority of primary schools use Chinese as the language of instruction, with English being taught as a second language. For children whose first language. is English, provision is made in 10 junior schools-five operated by the government, three by the English Schools Foundation (a government-subvented organisation), and two by private bodies.

Special Education

       Further progress in the development of special education in 1976 included in- creased provision of places, more assessment and remedial services, and expanded teacher training programmes.

The number of special places for handicapped children increased during the year 1975-6 from 8,500 to 11,725. There are now 35 special schools-two for the blind, four for the deaf, seven for the maladjusted and socially deprived, 17 for the physically handicapped, and five for the slow learning. In addition, in ordinary government schools, there are 109 special classes for the slow learning, 24 classes for the partially hearing, five classes for the partially sighted, and 18 classes for the maladjusted. In ordinary aided schools there are 114 special classes for the slow learning and 18 special classes for the maladjusted. More than 520 less severely physically handicapped children have been placed in ordinary classes in government and aided schools. The progress of these children is supervised by officers of the Education Department's special education section.

      Through this section, preventive measures are being extended by providing more assessment and remedial services. Assessment services include audiological testing, psychological testing, speech testing and educational assessment. Audiometric, vision and speech screening programmes are carried out in primary schools. Remedial services include auditory training, speech therapy, adjustment groups, and teacher and parent counselling. During the year the two special education services centres- one on Hong Kong Island and the other in Kowloon-dealt with more than 55,800 children.

The programme of overseas training for the nucleus of specialist staff in the special education section has also been expanded, as have the local in-service courses for teachers in special schools and special classes, and the courses on the needs of handicapped children for teachers in ordinary schools and for trainee-teachers at the three colleges of education. In addition, teachers in ordinary schools were in 1976 also offered five introductory courses on the education of handicapped children, two workshops, one seminar and one extra-mural course.

      The special education section has a braille printing press operated by the Government Printer. This press produces primary Chinese textbooks and supplemen- tary readers in braille, which are supplied to schools for the blind under government subsidy at one tenth of the actual cost.

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The further development of special education is being considered in the context of the 1976 Green Paper on Rehabilitation Services (see Chapter 7).

Secondary Education

        There are five main types of secondary school: Anglo-Chinese grammar schools, Chinese middle schools, secondary technical schools, secondary modern schools, and prevocational schools. The 283 Anglo-Chinese grammar day schools have an enrolment of 303,413 pupils. They offer a five-year course in the usual academic subjects leading to the Hong Kong Certificate of Education examination. Instruction is mainly in English, but Chinese has a prominent place in the curriculum. Successful Certificate of Education candidates may enter sixth forms to prepare for entrance to the University of Hong Kong, the Chinese University of Hong Kong, or the Polytechnic. They may also study for the General Certificate of Education at both ordinary and advanced levels.

        The 104 Chinese middle day schools accommodate 65,774 pupils and offer a five-year course in the usual academic subjects also leading to the Hong Kong Certificate of Education examination. Instruction is in Chinese, and English is taught as a second language. A number of Chinese middle schools also offer a one-year sixth form matriculation course to prepare students for entrance to the Chinese University of Hong Kong.

        There are 16 secondary technical schools which offer a five-year or seven-year course with instruction in English and with Chinese taught as a second language. Nine of the schools are government, five subsidised and two private. Their total enrolment is 12,380. Like the Anglo-Chinese grammar schools, they prepare their pupils for the Hong Kong Certificate of Education examination and suitable can- didates can continue their studies in Form VI or at the technical institutes, the Polytechnic or the Technical Teachers' College.

Five subsidised secondary modern schools with an enrolment of 3,879 offer a three-year secondary course with a practical bias. There are also 10 private and nine subsidised secondary schools with a total enrolment of 7,362, which offer some form of technical and trade training not leading to the Certificate of Education examination.

For secondary school students who obtain satisfactory results in the Certificate of Education examination, higher education is available at the colleges of education, the technical institutes, the Polytechnic and other post-secondary-type colleges.

There has been a steady increase in the number of pupils enrolled in all types of day-time secondary schools. In September there were 392,808 such students, compared with 359,196 the previous year. During the school year 6,079 new secondary places were provided in new school buildings. A total of 98,424 pupils entered the first year of secondary school. This represents the promotion of 88.3 per cent of the pupils completing primary schools. Of these pupils, 56.8 per cent were awarded government, government-aided, or assisted places. These pupils-who were awarded places on the results of the secondary school entrance examination-totalled 63,266.

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There are also 60,983 pupils attending tutorial or evening classes where instruc- tion is offered in secondary level subjects. The most popular subject is English.

The principal aim of the 1974 White Paper was to provide from 1979 three years of subsidised secondary education for every child, upon completion of six years of subsidised education in a primary school. In February 1976 the government announced its intention to achieve this target in 1978, so enabling the secondary school entrance examination to be abolished. The necessary places will be created by the building of 33 new schools and the conversion of surplus primary schools to provide a further 13 secondary schools and two annexes; by a more intensive use of classroom space through flotation and extended day classes; and by the buying of places in private schools.

The Governor announced to the Legislative Council in October that a further building programme of 35 new schools would be put in hand to improve the quality of junior secondary places. He said that the new buildings and the other measures would not create sufficient subsidised senior secondary places to meet the White Paper's target of providing for 40 per cent of the 15-16 age group, but proposals would be announced in 1977-probably in the form of a Green Paper-for the further development of senior secondary and tertiary education.

There are two secondary schools for English-speaking children in the public sector-one operated by the government and the other by the English Schools Foundation. These schools cater for children in the 11-18 age group and offer courses leading to the Certificate of Secondary Education examination or to the London General Certificate of Education 'O'-level and 'A'-level examinations. A few other private secondary schools also offer courses suitable for English-speaking children.

Prevocational Schools

Prevocational schools, which are all fully subsidised by the government, provide a three-year post-primary course consisting of about 50 per cent general education and 50 per cent technical education. The curriculum usually covers three major fields of industrial or commercial activity to ensure that students are introduced to as wide a spectrum of employment as possible. The technical areas covered include mechanical and electrical engineering, printing, textiles and clothing, commerce, retailing and merchandising, hotel work and catering, and home economics. Excessive specialisation is not encouraged at this level, the aim being to introduce basic knowledge and skills and to help students choose a suitable career.

Prevocational schools also provide an introduction to craft apprenticeship. Con- siderable efforts are made to ensure that prevocational school leavers have the opportunity to enrol in recognised apprenticeship training schemes, and also to continue their studies in technical institutes. This form of technical training is fully supported by the Hong Kong Training Council and is being more and more accepted by industry.

With the completion of a 28-class prevocational school in the densely populated Pak Tin area, the total number of prevocational schools has increased to eight, with a total student capacity of 5,960.

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        Three technical institutes are run by the Education Department. The Morrison Hill Technical Institute was established in 1969, while the other two-at Kwai Chung and Kwun Tong-were opened in September 1975.

        All three have been designed and constructed to provide courses at craft and technician levels-on a full-time, block release, part-time day, or part-time evening basis. Short courses are also designed to meet specific requirements of industry and commerce.

        Courses offered at Morrison Hill include mechanical engineering, electrical engineering, commercial studies, construction, and general studies. Kwai Chung Technical Institute provides courses in mechanical engineering, electrical engineering, commercial studies, and clothing and textiles. At Kwun Tong, courses are available in mechanical engineering, electrical engineering, printing, and clothing and textiles.

        The three institutes maintain close links with industry and commerce, the Labour Department, and the Hong Kong Training Council, and courses have been designed to meet new industrial developments and technology in Hong Kong.

       The capacity of each institute is about 1,350 full-time places but, since many of the students attend on a part-time day or evening basis, the actual number of students attending each of the institutes is much greater.

        A fourth technical institute, at Cheung Sha Wan, is due to be completed in mid-1977 and courses will be provided in construction, electrical engineering, mechanical engineering, marine fabrication, and hotel catering and tourism. Plan- ning is also in progress for a fifth institute in Kowloon Tong, scheduled to open in 1979. A wide range of courses is envisaged, including engineering, commercial studies, industrial technology, design and general studies.

Post-secondary Education

        There are a number of day and evening schools offering courses of varying standards at post-secondary level. These schools do not receive aid from the govern- ment and they are run on a private basis.

        Two post-secondary colleges the Hong Kong Baptist College and the Hong Kong Shue Yan College-are registered under the Post-Secondary Colleges Ordin- ance and consequently have a status above that of a secondary school but below that of a university institution. The Hong Kong Baptist College, standing on a site granted by the government, was registered in 1970. It has four faculties--arts, business, social sciences, and natural sciences and engineering-with an enrolment of about 3,350 students. There are altogether 15 departments offering 18 major fields and three course programmes. The college has some financial support from the government in the form of an interest-bearing loan, while students of the college may apply for government-financed interest-free loans to assist with payment of tuition fees. The Hong Kong Shue Yan College was registered in January 1976.

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It consists of three faculties-arts, social sciences and commerce-with a total of eight departments. The college offers a day course as well as an evening course with a total enrolment of about 700.

A college can be registered under the Post-Secondary Colleges Ordinance only when the Director of Education is satisfied with its academic standards, governing body, constitution, finances, educational facilities, the number and qualifications of staff, and the number and conditions of admission of students. At present the Hong Kong Baptist College and the Hong Kong Shue Yan College are the only institutions registered under this ordinance.

Higher Education

Public funds are made available for grants and interest-free loans to needy students at the University of Hong Kong and the Chinese University of Hong Kong under a scheme introduced by the government in 1969-70. The administration of grants totalling $6.3 million and loans totalling $19.3 million for 1976-7 is in the hands of a joint universities' committee. The scheme has resulted in a substantial increase in the amount of public funds available for student financing and it aims to ensure that students offered places in either of the two universities shall not be prevented, through lack of means, from taking the places offered.

As from the 1976-7 academic year, the student finance scheme was extended to cover Hong Kong Polytechnic students as well. For the first year, sums of $0.7 million for grants and $11.9 million for loans were provided by the government for Polytechnic students. The administration of grants and loans is by the Polytechnic Committee on Student Finance.

Both universities and the Polytechnic have some financial resources of their own, but are largely financed by the government. Because of the importance of university and polytechnic development and the sums of public money involved, the government needs impartial and expert advice both on the assessment of the amount of grant required to sustain any level of university and polytechnic activity, and on developments necessary to the community's requirements for graduates. The government also needs advice on the allocation of funds among the universities and the Polytechnic. To carry out these functions there is a Univeristy and Polytechnic Grants Committee appointed by the Governor.

The University of Hong Kong

The University of Hong Kong was established in 1911 with a land grant from the government and endowments which have since been increased. Substantial government grants are also made towards the university's annual recurrent and non- recurrent expenditure.

Numbers of undergraduate places in the various faculties in 1976-7 were: arts, 849; science, 516; medicine, 779; engineering and architecture, 883; and social sciences and law, 733. Of these, a total of 1,150 places were available for first-year students.

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      There were also 747 places for postgraduate students-393 reading for higher degrees and 354 for diplomas and certificates. In the Language Centre, 13 students were read- ing for the Certificate in Chinese Language. The number of full-time teaching posts- including demonstratorships-at the beginning of the academic year was 547. All the degrees and other professional qualifications conferred by the university are equivalent to those of universities in Britain.

       The University of Hong Kong conducts its own advanced level examination, the standard of which is similar to that of the GCE advanced level. Entry to the university is generally dependent upon successful results in this examination. Some 3,549 students fulfilled minimum requirements for entry in 1976.

        The School of Education, officially inaugurated on September 1 on the occasion of the Silver Jubilee of the former department of education, offers graduates a one- year full-time curriculum or a two-year part-time curriculum leading to the Certificate in Education. It offers the degree of Master of Philosophy in Education for suitable candidates who wish to pursue advanced studies in education. The Doctor of Philosophy is also available for specially qualified and selected candidates.

        During the year the university began planning the dental school which is to be set up in association with its existing medical school in the programme to develop further the medical and health services in Hong Kong. In association with the Univer- sity and Polytechnic Grants Committee, the university appointed a Dental Academic Advisory Committee to plan the development and curricula of the new dental school and to assist in the appointment of a Dean. The pre-clinical sections of the school will work mostly at the university's Medical Centre but the government is to build and man a new dental clinic in which the clinical side of the dental school can work. It is planned to establish the dental school in 1980 and the first 60 dentists are expected to graduate in 1984.

       At present Hong Kong sends its students overseas to qualify as dentists, but this has involved a loss of qualified local people which has not been made up by qualified overseas practitioners coming to Hong Kong.

        In 1975-6 the department of extra-mural studies provided some 450 evening and daytime courses, which were attended by more than 11,000 adult students. Subjects offered by the department include art and design, business studies, economics, law, languages, oriental studies, a range of liberal arts courses, and a wide variety of vocational and professional courses. Most of these courses are conducted through the medium of English, but some are taught in Mandarin and a significant proportion are conducted in Cantonese.

        The General Library contains more than 255,000 volumes, including the Robert Morrison collection. The Hung On-to Memorial Library has a special collection of books on Hong Kong. The Fung Ping Shan Chinese Library of more than 200,000 volumes contains many rare items. There are two branch libraries: the Medical Library with more than 39,000 volumes including bound periodicals, and the Law Library with about 14,000 volumes.

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The University of Hong Kong's Centre of Asian Studies in 1976 published a study on Mao Tse-tung and a union catalogue of works relating to Hong Kong in local libraries. The centre also completed a catalogue and study of the mu-yu-shu ('wooden fish books') collection in the university, the taping of nan-yin singing, and a multi-disciplinary study on housing in Hong Kong. New projects undertaken in- cluded the genealogical collection project in association with the Genealogical Society of the Church of Jesus Christ of Latter-day Saints at Salt Lake City; the study of entrepreneurship in Chinese society; adaptation of western management techniques for application in Southeast Asia; and comparative Asian industrial relations. Major seminars and conferences organised during the year included the contemporary China seminar, the seminar on modern Chinese literature, and the union carbide seminar. The centre also continued to provide services to visiting researchers and to foster the study of the People's Republic of China, traditional Kwangtung culture and modern Hong Kong.

In the faculty of arts, research is being undertaken in various aspects of English and Chinese language and literature, and in comparative literature. A history work- shop, particularly concerned with Hong Kong history, has been set up. Studies on China and Southeast Asia-both at graduate and undergraduate levels-are a well- established feature of the work of the history and geography departments.

The faculty of social sciences and law is conducting research projects relating to various fields. In economics, on-going research covers different aspects of the Hong Kong economy-such as income and employment, fiscal policy, the banking system, technology and growth. A new department of management studies was established in 1976 to develop management education at all levels, including undergraduate, postgraduate, and post-experience programmes. It is intended that the teaching and research activities will be closely linked to the needs of the wider community in Hong Kong. The department of political science produced a number of studies on Hong Kong government policies and structures as well as theses on the New Terri- tories Administration, minorities in China, and foreign policy in Asian Islamic states. In sociology, several research projects on social problems in Hong Kong are near completion. Studies on industrial relations in the textile industry and on the effect of television viewing are being carried out.

In the department of law, research ranges from Chinese customary law and legal history to international commercial transactions and taxation-both in Hong Kong and overseas. The courses leading to the postgraduate Certificate in Laws have attracted wide interest in professional legal education circles, particularly in Britain and Australia. Members of the staff and postgraduate students organise a legal advice scheme which supplements to a limited degree other similar services avail- able to the community.

       Continuing projects in the faculty of science include: the ecology of marine and freshwater organisms; investigations of agricultural pests; studies of local ionospheric, geomagnetic, meteorological and cosmic ray phenomena; and the applica- tion of electrochemistry to plating and storage batteries. Investigations are also being carried out on problems of fouling in freshwater pipelines and sea-water intakes.

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The department of chemistry is monitoring Hong Kong's atmosphere for sulphur dioxide, ozone, nitrogen oxide, and solid particulates. The isolation of naturally- occurring substances from Hong Kong plant materials is continuing.

        In the faculty of engineering and architecture, new and continuing projects include inter-disciplinary studies of the safety and quality of high-rise buildings in respect of construction, economics, external and internal user-comfort, and soil stability. Other research covers electrical installations and electronics; heat transfer; fluids; and industrial engineering management, organisation and techniques.

        The faculty of medicine is engaged in many research projects of special significance to Hong Kong. They include studies on the following subjects: growth and develop- ment of Chinese children; meningitis and other neuro-muscular diseases in children; correction of spinal deformities and disorders due to poliomyelitis; Chinese medicinal herbs; changes in the pattern of disease in Hong Kong; common local occupational diseases; smoking and carcinoma of the lung; human influenza viruses; detection of carcinogenic substances in local food items; prevalence of diabetes mellitus and ischaemic heart disease; metabolic disturbances in narcotic addicts; early detection of heart disease; treatment of hypertension and various forms of heart failure; viral hepatitis, cirrhosis and cancer of the liver; common hereditary anaemias in the Chinese; immunological changes in collagen-vascular disorders; treatment of cancer of the oesophagus, liver, and urinary bladder, and of malignant blood diseases; contraception; and psychiatric sequelae of therapeutic abortion and female homo- sexuality.

The Chinese University of Hong Kong

       The Chinese University of Hong Kong was inaugurated in 1963 as a federal university in which the principal language of instruction is Chinese. It is a self- governing corporation drawing its income mainly from grants made by the govern- ment. The university comprises three foundation colleges--Chung Chi College, New Asia College and United College. The campus covers 331 acres of land on Tai Po Road overlooking Tolo Harbour near Sha Tin.

        Undergraduate teaching is conducted by the foundation colleges with the curricula determined by boards of studies in individual subjects. The undergraduate enrolment in September 1976 was 3,906, comprising: arts, 953; science, 1,070; social science, 1,138; and business administration, 745. A total of 11,390 candidates sat for the matriculation examination in April 1976 and 3,227 passed-of whom 1,155 were admitted for the academic year 1976-7.

       At the graduate level, two types of programme in 15 divisions are offered: a two-year programme of course-work and research thesis leading to a degree of Master of Philosophy in Humanities, Science or Social Science, Master of Business Administration, or Master of Divinity; and a one-year programme of course-work leading to a degree of Master of Arts or Master of Science. The School of Education offers a one-year full-time or two-year part-time postgraduate course of professional training leading to a Diploma in Education. In September 1976 there were 392 students enrolled in the university's graduate programme.

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There were 795 students who graduated during the year from the Chinese Univer- sity of Hong Kong-37 Masters of Philosophy, 24 Masters of Business Administration, two Masters of Divinity, two Masters of Arts, two Masters of Arts (Education), 199 Bachelors of Arts, 184 Bachelors of Science, 111 Bachelors of Business Administra- tion, and 234 Bachelors of Social Science.

The department of extra-mural studies offers more than 500 general courses in a wide range of subjects, some of which can be taken by correspondence. The depart- ment also offers a number of intensive courses leading to the award of certificates. The majority of the courses are conducted in Cantonese or Mandarin. Recently the department started running television and radio courses in collaboration with Com- merical Television and Radio Television Hong Kong.

The university library contains some 185,750 books and journals specialising in resources for advanced studies and research. In addition, the three college libraries have more than 338,800 volumes of books and journals for undergraduate studies and general reading.

       During 1976 the Chinese University of Hong Kong began to make preparations for the medical school which is to be established at the university in 1981. A Medical Academic Advisory Committee was appointed to plan the development and curricula of the new school, and Dr G. H. Choa-the government's Director of Medical and Health Services up to the end of 1976-was appointed the first Dean. The medical school will eventually produce 100 doctors a year in addition to the 150 a year produced by the medical school at the University of Hong Kong.

       The Governor, in his capacity of Chancellor of the Chinese University of Hong Kong, announced the appointment of an external commission in November 1975 to review the constitutional arrangements governing the university and its constituent colleges. The chairman of this commission was Lord Fulton of Falmer, formerly Vice-chancellor of the University of Sussex. The commission heard evidence from people associated closely with the university and the colleges, and an open invitation was issued to submit memoranda for the commission's consideration. The com- mission's report was submitted to the Chancellor on March 19, 1976 and published on May 28. A Bill to give effect to the recommendations in the Fulton Report was enacted on December 22.

Research

       The Chinese University of Hong Kong is directly responsible for providing faculty members with research facilities so as to enable them to keep up with the latest developments in their own fields and to contribute to them. For this purpose there are three institutes: the Institute of Chinese Studies, the Institute of Science and Technology, and the Institute of Social Studies and the Humanities.

        The Institute of Chinese Studies is carrying out research on the basis of a broad but unified concept of Chinese Studies, which includes what is traditionally identified as Sinology. The institute has its own Journal, of which seven volumes have been published. As a result of research sponsored by the institute, six books have been

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published in the past two years. Four are on Chinese linguistics, one on Chinese intellectual history and one on Chinese economic history.

The Institute of Science and Technology concentrates on the promotion of research in inter-disciplinary areas and acts as a co-ordinating body both within the university and among outside agencies such as the government, industries, and international funding agents, on matters relating to research. The Chinese medicinal material research unit, which was formed in 1975, has so far directed its scientific studies towards a few Chinese herbs with certain biological effects based on the accumulated experience of a large number of people over many generations. Research in this field depends on systematic and painstaking work rather than on expensive equipment. There are at present three main experimental projects in progress: the Leonurus artemisia project, the Abrus cantoniensis project and the Scutellaria basicalensis project. In addition, the use of herbal medicines in Hong Kong is being investigated and information on Chinese medicine is being compiled.

The Institute of Social Studies and the Humanities undertakes a wide variety of research projects through its various centres. The Economic Research Centre is carrying out studies of Hong Kong's economy and compiling an econometric forecast- ing model for the economy. The Centre for Communication Studies, after having completed a pilot study on radio audiences, has launched a long-term documentation project to locate, annotate, and later-if funds are available-to acquire all Chinese journalism and communication materials since the Ching Dynasty. The centre has also conducted a number of small-scale research projects, including an Asia-wide study of the media's attitude towards women. For the past six years the Social Research Centre has been conducting studies on various aspects of social life in Hong Kong-such as new town planning and development, social causes of juvenile delinquency, housing problems, attitudes towards birth control, spatial economy of street-trading activities, urban religious behaviour, medical beliefs and health services, the ideology and organisation of small-scale industries, and the impact of industrialisa- tion on family life. The Centre for East Asian Studies is carrying out a Vietnamese historical sources project along with other research projects on Japan and Southeast Asia. The Centre for Translation Projects has a number of translated works in process of printing in addition to many others being prepared for publication. The centre publishes a special Chinese-English translation journal called Renditions twice a year.

The Polytechnic

        The Hong Kong Polytechnic was formally established in 1972, taking over the work of the former Hong Kong Technical College. The bulk of the Polytechnic's finances comes from the government through the University and Polytechnic Grants Committee.

The Polytechnic campus is located in Hung Hom, Kowloon, on a site adjacent to the cross-harbour tunnel. It includes all the buildings taken over from the former Hong Kong Technical College, and the new Phase I buildings which were completed in September 1976.

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        Enrolments for the academic year 1976-7 were 5,651 full-time, 2,577 part-time day-release and sandwich, and 15,371 evening students. These compare with the corresponding student numbers of 4,170, 2,463 and 14,299 in 1975-6.

       During 1976 the number of teaching departments increased from 14 to 15. They are: accountancy; applied science; building and surveying; business and management studies; civil and structural engineering; computing science; design; electrical en- gineering; electronic engineering; languages; mathematical studies; mechanical and marine engineering; nautical studies; production and industrial engineering; and textile industries.

        The Polytechnic offers two-year full-time courses leading to the technician or ordinary diploma; three-year full-time courses leading to the higher diploma; and one-year full-time post-higher diploma courses leading to the award of Associateship of the Hong Kong Polytechnic, AP (HK). Also offered are part-time day-release and sandwich courses of various durations, and many part-time evening courses leading to the higher, ordinary or technician certificates or other qualifications in a wide range of technical and commercial subjects at professional and technician levels.

       To satisfy the minimum entrance requirements to full-time courses, candidates are expected to have gained the Hong Kong Certificate of Education or an equivalent qualification. They must also satisfy any additional requirements for admission into the particular courses for which they apply.

       A number of British professional institutions have granted exemptions from certain parts of their examinations to holders of Polytechnic higher diplomas. Six associateship courses were offered in 1975-6: electrical, electronic, mechanical, pro- duction, structural engineering, and textile technology.

       Short full-time and part-time courses preparing candidates for professional examinations are organised throughout the year. These include qualifications approved by the British Department of Trade and Industry for marine engineers, mates and masters. Whenever there is a need for instruction in specific subjects of current in- terest to local commerce and industry, or to a sufficient number of individuals, the Polytechnic tries to offer short courses to meet the demand. Those in the fields of accountancy, building technology, radar operation, and textile studies were partic- ularly popular during the year.

Teachers and Teacher Education

       In March 1976 there were 37,290 full-time and part-time teachers employed in government and registered day schools-including 8,933 university graduates and 19,017 non-graduates qualified for teaching. Another 6,656 teachers were engaged in tutorial and evening classes and 251 were in special schools. At the end of the 1975-6 school year, the overall ratio of pupils to teachers was 32 in primary day schools and 30.1 in secondary day schools.

       Except for technical teacher training, teacher education is provided at the Educa- tion Department's three colleges of education--Grantham, Northcote and Sir Robert

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Black. All three colleges offer full-time two-year courses designed to produce non- graduate teachers qualified to teach in primary schools and the lower forms of secondary schools. There are also third-year courses in the three colleges, aimed at raising the standards of teachers and preparing them to teach the new curriculum in junior secondary forms. In addition to various specialist subjects, these general third-year courses cover the whole range of academic subjects. Part-time courses are also provided to train practising teachers. In September 1976 there were 859 students in the two-year courses, 168 students in the third-year courses, 36 qualified teachers undergoing retraining courses, and 1,476 trainees in the in-service training courses.

        Technical teacher training is provided at the Hong Kong Technical Teachers' College which is also administered by the Education Department. The college is temporarily housed in government primary school premises, but it makes use of facilities at the Morrison Hill Technical Institute. The college trains technical teachers for the technical institutes, secondary schools and prevocational schools. Several types of course are offered. The one-year full-time course is intended for mature people who are well qualified and experienced in a technical field and decide to take up technical teaching as a career. Generous grants are offered to attract suitable recruits to this course from commerce and industry. The two-year full-time course accepts secondary technical school leavers who have a genuine interest in and a desire to serve technical education.

        The college also provides in-service courses of teacher training. The supplemen- tary third-year course prepares graduates of the general two-year course at the colleges of education to teach technical subjects. It gives both fresh graduates and serving teachers a further year of education and training in design and technology. On completion of this course, graduates are able to teach technical subjects up to Certificate of Education level. There is also the government primary school teachers' retraining course, which enables such teachers to take up two-year full-time retraining in design and technology so that they can teach technical subjects in government secondary schools. The industrial trade instructors' courses, offered in part-time day- release, in the evening, and in block release, aim to improve the instructional technique of supervisors and instructors employed by industry.

       Associated with the Technical Teachers' College is a developing Technical Teachers' Centre. The centre is to encourage activities which will bring all teachers interested in the teaching of technical subjects together to discuss common problems and exchange ideas.

Adult Education

In providing evening education for out-of-school young people and adults, the adult education section of the Education Department offers both formal and informal education through the Evening Institute, the Evening School of Higher Chinese Studies, and 14 adult education and recreation centres.

The Evening Institute offers seven types of formal course which constitute the whole education ladder for adults-from literacy classes to secondary and post- secondary studies. The adult education courses with general background provide

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fundamental and elementary education at primary level with special reference to adult needs and interests. Parallel to these are the adult education courses with practical background, offering training in cookery, sewing and knitting, and wood- work, to enable adults to learn certain basic practical skills for household use. Further up the ladder are three courses at secondary school level-the young people's course, the secondary school courses and the middle school course for adults. The three-year young people's course provides additional training in general education with a practical bias for young primary school leavers who do not anticipate further studies. Both the secondary school courses and the middle school course for adults provide full academic courses, in six and five years respectively, leading to the Hong Kong Certificate of Education examination. At the post-secondary level are the teachers' courses providing additional in-service professional training in the teaching of English in primary schools, modern mathematics in lower secondary schools, physical education in secondary schools, and the teaching of art, music, woodwork, handwork, gymnastics, rebound tumbling, modern educational dance, folk dance and oriental dance. English language courses are offered from Primary 4 to Form 5 standard, preparing adult students for the English syllabus of the Hong Kong Cer- tificate of Education. There is also a senior level class of matriculation standard providing more practical English for business use.

The Evening School of Higher Chinese Studies offers a three-year general arts diploma course at post-secondary level in Chinese literature, philosophy and sociology. As from September 1976, specialised one-term courses have been offered on Chinese calligraphy, the ancient Chinese philosopher Lao Tze, and the appreciation of Chinese lyrical and dramatic poetry.

Providing informal education, the 14 adult education and recreation centres organise a wide variety of cultural, social and recreational activities designed to stimulate individual awareness of the community, cultivate creative ability, and develop individual talents.

Total enrolment for the formal courses is about 22,000, and for the informal courses about 28,000. The Education Department's adult education section also assists both the Prisons Department and the Social Welfare Department in organising classes and providing professional expertise in general and practical subjects for inmates of various prisons, addiction treatment centres and rehabilitation homes.

Examinations

There are four local examinations for schools-one conducted by the Education Department, one by the Hong Kong Certificate of Education Board, one by the Matriculation Board of the Chinese University of Hong Kong, and one by the Advanced Level Examination Board of the University of Hong Kong.

The secondary school entrance examination-which will be set for the last time in 1977-selects pupils for places in government and aided secondary schools, and for assisted places in private secondary schools. It is conducted by the Education Depart- ment and an examination committee is appointed to give advice on general policy. All primary schools are invited to take part and are encouraged to enter all their

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Primary 6 pupils for the examination. Altogether 64.6 per cent of the 97,930 can- didates who sat for the 1976 examination were allocated a secondary school place. From September 1978, all Primary 6 leavers will be allocated subsidised secondary school places.

       The Hong Kong Certificate of Education is primarily intended for pupils who have completed a five-year course of secondary education. The examination is con- ducted by the Hong Kong Certificate of Education Board, which comprises members representing participating secondary schools, the University of Hong Kong, the Chinese University of Hong Kong, the Hong Kong Polytechnic and the Education Department.

        The Certificate of Education examination and the secondary school entrance examination are processed with the help of the government computer, which also marks such papers in these examinations as are set in multiple-choice format. The computer also allocates secondary school places to pupils who have taken the secondary school entrance examination in accordance with their results and their stated preferences.

        The Education Department provides a local secretariat for various examining bodies in Britain and elsewhere and so makes available to students in Hong Kong many overseas examinations, academic and professional, at standards comparable to those in Britain. These examinations include the General Certificate of Education, which is open to both school and private candidates who hold a Certificate of Educa- tion of the required standard. If they have reached the age of 22, no entry qualification is required. Appendix 21 shows the more important overseas examinations held in Hong Kong and the number of candidates entering for them.

        In 1975 a decision in principle was made to establish an independent Hong Kong Examinations Authority to be responsible for all major public examinations up to advanced level. During 1976 planning was still in progress but it is expected that the authority will be established in 1977.

Advisory Inspectorate

       The main function of the Education Department's Advisory Inspectorate is to promote quality in the classroom. This involves frequent visits to schools by special- ist advisory inspectors, the development of advisory services and facilities, and the provision of courses, seminars and workshops for practising teachers. It also involves the evaluation of textbooks and of new and existing courses and instructional mate- rials, educational research and guidance, and curriculum development. Close liaison with other bodies, such as the various local examination authorities, is maintained by the Advisory Inspectorate.

        In 1976 the principal concern of the inspectorate was the trial implementation and evaluation of a set of provisional syllabuses for junior secondary forms. More than 260 schools volunteered to implement one or more of the syllabuses on a trial basis. The feedback has been satisfactory and only some minor modifications have been required in a few subjects. To ensure that these teaching syllabuses provide a good

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foundation for the Hong Kong Certificate of Education, the corresponding syllabuses at Forms IV and V levels have also been reviewed and are being revised. Provisional syllabuses for art and design, biology, chemistry, design and technology, economics and physics are being tried out in a limited number of schools in preparation for enter- ing these new courses in the Hong Kong Certificate of Education examination in 1978.

       An encouraging development in primary education has been the wider acceptance among school authorities of the activity approach scheme introduced experimentally in 1972 by the Curriculum Development Committee. The aims of this scheme include the development of a less formal approach to learning, in which children proceed at their own pace according to their own abilities. 'Learning by doing' is the keynote of the scheme, the teacher's role being more to guide than to instruct.

       For the production of better quality textbooks, the inspectorate's Textbooks Com- mittee is maintaining close liaison with two educational publishers' associations--the Anglo-Chinese Textbook Publishers' Organisation and the Hong Kong Educational Publishers' Association. During the year 349 textbooks were reviewed to examine their suitability for use in schools.

Teaching Centres

The Advisory Inspectorate runs three centres concerned with the teaching of the Chinese language, English and mathematics.

The Chinese Language Teaching Centre aims to improve the teaching of the Chinese language and to raise the general standard of Chinese in secondary and primary schools. In 1976 some 2,000 teachers from more than 1,000 primary and secondary schools attended various courses and seminars conducted by the centre. It has a wide range of teaching materials and aids for serving teachers, and a dubbing service of teaching tapes produced by the centre is provided free of charge for schools. During the year 138 schools benefited from this service.

       The English Language Teaching Centre organised 50 refresher courses, work- shops and seminars for 1,014 teachers from 513 schools. Follow-up visits were also made. Some 2,400 recordings of language teaching tapes were supplied to 110 schools and two book exhibitions were held. The specialist library, which contains 3,500 books on English language teaching and linguistics, is frequently visited by lecturers from the colleges of education, the Polytechnic and the Technical Teachers' College, and by teachers and advisory inspectors.

The Mathematics Teaching Centre made considerable efforts in 1976 to assist teachers in the implementation of the new provisional syllabus for mathematics. The centre held 42 seminars, 23 workshops, six in-service courses and six exhibitions. A 16 mm colour film, 25 minutes long and entitled 'Mathematics without Tears', was produced in collaboration with the Educational Television Service. The film aims at promoting the activity approach in the teaching of primary mathematics.

Visual Education Centre

The Advisory Inspectorate's Visual Education Centre provides centralised audio- visual media services for schools free of charge. The centre lends 16 mm films, 35 mm

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3333

filmstrips, slides, audio recordings, photographs, 8 mm loop films, overhead projector transparencies, multi-media learning packages and other audio-visual equipment. A total of 39,897 items were borrowed in 1976.

       The centre works closely with the inspectorate's subject advisers in the prepara- tion of instructional materials for use in curriculum development projects and for general classroom use. An 'Audio-Visual News Bulletin' with a circulation of 2,000 is published quarterly for distribution to schools and other educational institutions. The self-service media production services unit in Kowloon provides apparatus and staff to help teachers to design and produce simple resource materials for specific classroom needs.

       Some 1,800 teachers, student-teachers and training officers attended various courses, workshops and organised visits run by the centre in 1976. A major event was an educational media exhibition and seminar organised by the Audio-Visual Educa- tion Committee.

Educational Television

       The Educational Television Service (ETV) extended its programmes to secondary schools as well as primary schools for the first time in September 1976. It was also the first appearance of colour television in Hong Kong schools-all the new pro- grammes are in colour. About 260 video cassette recorders and 280 colour receivers were installed in secondary schools at a cost of about $2.5 million in order to facilitate time-tabling and reception. It is estimated that more than 80,000 Form I pupils see the programmes, which will be extended to Form II in 1978 and Form III in 1979. They cover the same four basic subjects as the programmes put out to primary schools-Chinese language, English language, mathematics and social studies-and a fifth subject, science, will be added in 1978. The total audience in primary schools is about 400,000 children and 10,000 teachers. Since the beginning of ETV in 1971, more than 3,000 television receivers have been installed in primary schools at a cost of about $5 million.

       ETV programmes are produced locally by the Education Department and Radio Television Hong Kong (RTHK) and are transmitted by the three commercial tele- vision stations between 8 am and 6 pm Monday to Friday. They are based on syllabuses used in primary and secondary schools and are designed to complement classroom teaching. Notes for teachers suggest preparation and follow-up activities and, in the case of primary school programmes, pupils' notes are also provided. Evaluation is supplied by teachers and through questionnaires, visits to schools by ETV producers, and reports from inspectors of schools.

Music

       During the year more than 600 primary and secondary school teachers attended seminars and refresher courses organised by the music section of the Education Department.

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        The 28th Hong Kong Schools Music Festival attracted 32,455 competitors. There were 264 classes at 11 different centres. Five concerts by prize winners were given before capacity audiences at the City Hall.

       In July the Hong Kong Children's Choir made a European tour which included performances at the 12th Conference of the International Society for Music Education at Montreux in Switzerland. The choir also sang in Strasbourg, Paris and London, and on the way home gave performances in Bangkok and Manila. The choir com- prises 46 girls and nine boys, and there are also 500 other youngsters under training.

        During the year the Hong Kong Youth Orchestra presented two concerts, one of them including a choral work-Travelling in the Mountains'--by the local com- poser Lin Sheng-shih. The newly-formed Youth Choir and soloists joined the orchestra in the performance, which was conducted by the composer.

        Another new group, the Hong Kong Amateur Orchestra, was formed to provide local amateur musicians with the opportunity to rehearse and perform orchestral music. The orchestra is jointly sponsored by the Education Department's adult education section and music section.

       The annual practical examinations of the Associated Board of the Royal Schools of Music had 6,758 candidates, and 2,595 candidates sat for the theory examinations. There were 61 candidates for the examinations of the Trinity College of Music and 1,069 ballet students took part in the Royal Academy of Dancing examinations.

Arts and Crafts

The Education Department's Cultural Crafts Centre provides opportunities for teachers from both primary and secondary schools to improve their teaching skills in the subjects of art and design, craft, and home economics. During the year the centre organised short in-service courses which were attended by about 1,000 teachers.

       A major development was the completion of improved practical facilities in the centre and these will become fully operational during the 1976-7 school year. As a result, a greater variety of courses will become available to teachers who wish to be brought up-to-date with modern teaching methods.

        As in previous years, art work produced by Hong Kong schoolchildren won international acclaim, and in local competitions and exhibitions a high standard of work was maintained. Invitations to exhibit work were received from Finland and Japan and the contribution to the 17th World Children's Art Exhibition in Korea was particularly successful.

Physical Education and Recreation

        The physical education section of the Education Department carries out teacher inspection work and organises youth recreation programmes and a great variety of teachers' courses with special emphasis on modern physical education. During the year the section worked in close co-operation with the Hong Kong Schools Sports Association, the New Territories Schools Sports Association and the Hong Kong

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Schools Sports Council in organising various activities such as games days, gymnastic displays, swimming competitions, and various inter-school and international events. Other projects included the Duke of Edinburgh's Award Scheme and road safety education.

       The Recreation and Sport Service continued to receive such favourable response from the public that it expanded its activities and appointed sports officers in all 17 districts of Hong Kong. Some 135,000 children and people of all ages took part in the sporting and leisure activities organised by the service, which is operated by the Education Department. Most of the events were district-oriented and included athletic meets, swimming galas, sports camps for various occupational groups, family recrea- tional projects, weekend youth sports schemes, fitness programmes, training courses, programmes for the handicapped, and district ball game tournaments. In June the service opened its outdoor and recreational camp at Sai Kung, and more than 4,000 young people used the camp during the summer.

In the 1976 Summer Youth Activities Programme-which is a community effort- camping was again the most popular activity among children of both primary and secondary schools. About 12,000 pupils went camping, including some physically handicapped children. Some 6,000 children from 192 primary schools took part in the Education Department's learn-to-swim scheme in the summer.

       The department's Tai Mei Tuk Sailing and Canoeing Centre was officially opened in April. The additional equipment and improved facilities now offered have given a significant boost to these activities among schoolchildren.

        The 1976 School Dance Festival attracted 241 teams comprising 2,783 pupils from 180 schools. Hong Kong was invited to send a schools' dance team to take part in the 1976 International Festival of Youth Orchestras and Performing Arts, which was held in Aberdeen, Scotland. The Hong Kong Schools' Chinese Dance Team was formed for the occasion and 26 students were chosen to represent Hong Kong at the festival. Their dances were enthusiastically received not only in Aberdeen but in other British cities which they visited.

Hong Kong Students in Britain

The student section of the Hong Kong Government Office in London is respon- sible for keeping records of all Hong Kong students in Britain who registered with the Education Department before leaving Hong Kong. The section helps these students to find places in universities, polytechnics, technical colleges, colleges of further education and other educational institutions in Britain. The section is responsible for exercising broad supervision over their progress and general welfare during their studies or training, and it also advises on courses which will help students find em- ployment either in Hong Kong or elsewhere on completion of their studies. Nurses under training are regarded as students and receive the same service.

The student section maintains close relations with the government and partic- ularly the Education Department in Hong Kong, the Overseas Development Admin- istration and other British Government departments, the British Council, and

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     educational establishments and hospitals where Hong Kong students are receiving training.

        In December 1976 the records listed some 8,547 students, including students on sandwich courses and nurse trainees. New arrivals during the academic year totalled 1,698 compared with 1,348 the previous year. The newcomers included 742 students for General Certificate of Education courses and 86 for basic or post-registration qualifications in nursing. Student visitors to the section totalled 894. Enquiries about financial assistance continued to figure high owing to the effect of inflation in Britain and proposed increases in tuition fees. In addition, a large number of students con- tacted the section for advice in connection with the correct procedure to follow when applying to renew their student visas.

       During the academic year 1,523 applications on behalf of 495 students were made to polytechnics and colleges. A total of 904 students made direct applications to universities through the Universities Central Council on Admissions (UCCA) under the guidance and sponsorship of the Education Department in Hong Kong. The student section liaised with the Education Department when results of the UCCA applications were known.

       The government-run Hong Kong Students Centre, formerly known as Hong Kong House, is a residential and social centre in London for Hong Kong students in Britain. It accommodates some 75 students and serves as a focal point and meeting place for many more. The Hong Kong Commissioner in London is responsible for the administration of the centre and is assisted by an advisory board which includes two student representatives. The student adviser is a member of the board and, on behalf of the Commissioner, is responsible for day-to-day liaison with the warden.

Hong Kong Students in Other Countries

        The overseas students and scholarships section of the Education Department assists students who wish to go overseas for study by providing information on educa- tional establishments in Britain and other English-speaking countries.

        In addition to the number of students going to Britain each year, a considerable number go to Canada, the United States and Australia. In 1976 there were 2,215 students who went to Canada for secondary or higher education while 3,121 went to the United States and 225 to Australia.

7

Health

THE improvement and expansion of medical services took another step forward in 1976 when details were announced of a development programme which in the next eight years will provide more than 5,000 new hospital beds, five clinics, three poly- clinics, a health centre, a second medical school and a dental school.

       The first major hospital project to be completed will be the psychiatric wing at Princess Margaret Hospital in Kowloon, where the general block was opened in 1975. The new wing will provide 1,300 beds by 1980. A hospital complex at Sha Tin is to open during 1982-3 with 1,200 beds, a supporting polyclinic and a general clinic. In 1983-4 the Tuen Mun Hospital is due to be completed, providing 1,200 beds and a polyclinic. The first stage of the East Kowloon Hospital-which will eventually have 1,200 beds-is expected to be ready for use in 1983. A further 300 hospital beds will also become available through other projects. Four more general clinics, a poly- clinic and a health centre are to be built in other areas of the New Territories and in East Kowloon.

        Hong Kong's second medical school is to be established at the Chinese University of Hong Kong. The first intake will be in 1981 and the school will eventually produce 100 doctors a year. The new hospital at Sha Tin will be used as the teaching hospital.

       At the University of Hong Kong, which has had a medical school since the univer- sity's foundation in 1911, it is planned to establish a dental school in 1980. The first 60 dentists are expected to graduate in 1984.

        Further development of rehabilitation services for the disabled is also planned and a Green Paper outlining recommendations for the next 10 years was published for public comment in October. The paper contains more than 30 recommendations which fall into four main service areas: identification and assessment services, for the early discovery and treatment of disabilities; medical services, for the correction and reduc- tion of disabilities and the restoration of functions; educational services to help prepare the disabled for their future roles in society; and social welfare services to help the disabled to lead a full and meaningful life. Views and comments on these recommendations are being studied and it is envisaged that a White Paper will be published in 1977.

        Medical and health services in Hong Kong are the responsibility of the Medical and Health Department. Towards the end of 1976 it announced that a major re- organisation would be carried out in 1977 to make more efficient use of the beds and facilities available. This is to be done by regionalising the services, with the whole of Hong Kong divided into four regions. The objective is to bring about a better appreciation of the medical and health needs of each of the main population centres,

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so that medical services can be made available within reasonable access. Future planning is to be better related to the needs of each area.

In addition to hospital services, the Medical and Health Department maintains services covering family health, school health, industrial health, port health, and the control of epidemic and endemic diseases.

       For the financial year 1976-7, the Medical and Health Department's estimated expenditure is $453 million. To this should be added subventions to many non- government medical institutions and organisations totalling an estimated $197.4 million. The estimated capital expenditure on hospitals and other buildings, includ- ing furniture and equipment, is $22.9 million.

Health of the Community

       Cancer and heart diseases are now the main causes of death in Hong Kong following the successful control of infectious diseases such as tuberculosis, once the number one killer disease. The infant mortality rate is now at a lower level than in many developed countries. This decline is due to improved environmental conditions, the development of maternal and child health services, and increasing public apprecia- tion of the value of these services.

Notifications of communicable diseases totalled 13,679 in 1976. One imported case of cholera was reported in July. The direct contacts of the index case were traced and one carrier was subsequently detected and treated. All the other necessary control measures were undertaken including advice to the public on the importance of observing simple rules of personal, environmental and food hygiene. A health exhibi- tion on the prevention of diarrhoeal diseases was also held in the same month. The routine examination of nightsoil samples for cholera organisms did not reveal any positive results.

The incidence and the number of deaths from tuberculosis continued to decline, with a policy of reliance on outpatient chemotherapy being pursued. About 98 per cent of newborn babies are vaccinated with BCG-probably the highest rate in the world. Tuberculosis is now rare under the age of 15.

       Venereal diseases are treated free at social hygiene clinics. About five per cent of the patients are teenagers, but there has not been any increase in the incidence of the disease in the teenage group since 1971. Energetic control measures such as contact tracing, follow-up of defaulters, and routine ante-natal blood tests are all aimed at interrupting the chain of infection.

        Leprosy has been brought under control. Leprosy patients who need hospitalisa- tion are treated in a general hospital, but the majority are treated as outpatients at special skin clinics.

       Malaria transmission has ceased in Hong Kong. All cases notified during the year were imported. The vector does not exist in the urban areas or the greater part of the New Territories. However, anti-larval operations such as draining and clearing streams, ditching, and oiling are still carried out. In parts of the New Territories, screen- ing of buildings and use of mosquito nets constitute the main preventive measures.

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        Diphtheria has been brought under control. There was only one case in the year. Mass immunisation was continued to maintain a high level of immunity among children.

        Poliomyelitis has been eradicated for the past three years. Oral vaccine is offered at family health service centres throughout the year and a general immunisation campaign is carried out in January and March each year. About 97 per cent of infants receive one dose of polio-vaccine soon after birth and 83 per cent receive two doses of trivalent vaccine later. Epidemiological surveillance of the disease is being maintained.

        Measles is most prevalent among children under five years and the pattern of infection is characteristically biennial. The incidence of measles increased from May to July, but it did not reach epidemic proportions. Immunisation campaigns were conducted to reduce the incidence.

        Viral hepatitis shows a cyclic peak every third year. The last upsurge of cases occurred in 1975. Most cases were among male adolescents and adults.

Hospitals

        There are 19,270 hospital beds in Hong Kong, representing 4.4 beds per thousand of the population. This figure includes beds in private hospitals and maternity and nursing homes, but not those maintained by the Armed Forces. In some hospitals temporary beds are used whenever the need arises.

        There are three major acute government hospitals. The largest is Queen Elizabeth Hospital in Kowloon with 1,898 beds. The millionth patient was admitted in January 1976, marking the 13th year of service of the hospital. Construction on the extension of the casualty department was completed during the year, relieving the congestion in the examination and waiting areas.

        The 1,340-bed general wing of Princess Margaret Hospital became fully opera- tional in 1976 after being opened the previous year. It serves as a general hospital for northwest Kowloon and the west New Territories. It also contains an infectious diseases unit, a geriatric unit and a corneal transplant unit.

        Queen Mary Hospital has 1,161 beds and is the main general hospital on Hong Kong Island. It is also the teaching hospital for the Faculty of Medicine of the University of Hong Kong.

        In addition there are a number of convalescent, maternity, and special or district hospitals, some of which are fairly small, operated by the government to support the regional hospitals. A number of treatment centres are maintained in the penal institutions.

        In the voluntary sector there are 21 hospitals with 7,913 beds. Most of them are acute, convalescent, general, or special hospitals. The voluntary organisations receive heavy financial assistance from the government annually. There are also 11 private hospitals with 2,175 beds.

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HEALTH

       Outpatient services provided by the government, subsidised organisations and private agencies are developing steadily. The government operates 51 general out- patient clinics, with specialist facilities available in the polyclinics of the urban areas. The Tang Chi Ngong Specialist Clinic was opened in May, providing a wide range of specialist facilities for residents in the eastern part of Hong Kong Island. Towards the end of the year an additional floor on the existing Arran Street Eye Clinic in Mong Kok was completed-to be used as a special clinic for the assessment of physically and mentally disabled children. Specialist facilities are provided in the New Territories by visiting teams of doctors from the major hospitals. Mobile dis- pensaries and floating clinics take medical services to the islands and remote areas of the New Territories. Other inaccessible areas are visited regularly by the flying doctor service.

In accordance with the Medical Clinics Ordinance, all clinics are required to renew their registration annually. On December 31, 1976 there were 81 registered static clinics and two mobile clinics under the control of registered medical prac- titioners, and 331 clinics registered with exemption, making a total of 414. The low- cost medical care scheme, in which clinics are set up in public housing estates by registered medical practitioners, continues to operate.

Family Health

The Family Health Service operates 37 centres on Hong Kong Island and in Kowloon and the New Territories. Each provides a comprehensive health care programme for women of child-bearing age and for children from birth to five years. About one per cent of new attendances are found to have abnormalities, such as congenital defects and the effects of prematurity.

A family planning service is available in 40 government centres. In addition the Family Planning Association of Hong Kong, which is subvented by government funds, runs another 25 clinics. Five of them are specifically for men and one of the clinics specialises in helping childless couples who want to have children.

        The association is a non-profit-making voluntary agency and it has three main centres-on Hong Kong Island, in Kowloon and in the New Territories. In addition to running clinics, it disseminates information and organises publicity campaigns on family planning, runs educational programmes and issues various publications, and has fieldworkers who are active in areas such as the marriage and birth registries and among the floating population and community centres.

School Health

        The School Medical Service is operated by the School Medical Service Board, an independent body incorporated by ordinance. Participation is voluntary and for a contribution of $5 a year schoolchildren can receive free medical treatment. The government contributes $20 a year per enrolled pupil and also covers the board's administrative expenses.

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The School Health Service is a government responsibility and is concerned with the environmental health and sanitation of school premises and the control of com- municable diseases. Routine inspection of schools is undertaken by school health inspectors, while immunisation of schoolchildren against infectious diseases of child- hood is arranged by health officers.

Mental Health

The Mental Health Service provides full-time care at the Castle Peak Hospital for all types of psychiatric patient, most of them admitted voluntarily. Some 300 beds are available for long-term psychiatric patients at the Lai Chi Kok Hospital. The psychiatric unit in Kowloon Hospital and the university psychiatric unit in Queen Mary Hospital provide a comprehensive psychiatric service in a general hospital setting. The psychiatric wing at Princess Margaret Hospital is now under construction.

The concept of treating patients at outpatient and day centres has proved successful. The three day centres at the Hong Kong Psychiatric Centre, the psychiatric unit in Kowloon Hospital, and the Yau Ma Tei Psychiatric Centre supplement the hospital inpatient services. Occupational, social and recreational facilities are provided in all centres. Voluntary agencies also assist in the rehabilitation of patients before their return to full activities in the community.

Industrial Health

        The main objective of the Industrial Health Service is to prevent occupational diseases and to promote health at work. It provides advice on all matters affecting the health and safety of workers.

        In the construction of the mass transit railway, several hundred workers are engaged in compressed air work. All such workers have been advised on the symptoms and signs of decompression sickness and what they should do if these occur. All hospitals and doctors have also been alerted to look out for decompression sickness.

        The professional and technical officers of the Industrial Health Service carry out routine and special biological and environmental monitoring. The industrial health laboratory has been designated as a collaborating laboratory in air pollution by the World Health Organisation.

Dental Service

        The Government Dental Service undertakes dental care for all monthly-paid government servants and their dependants, and offers a limited treatment programme for inpatients of government hospitals, prisoners, and inmates of training centres. Emergency treatment is provided for the general public at certain clinics. The dental service operates 33 clinics, including a mobile dental unit.

        A school dental health service is planned to start in 1981 and work began during 1976 on the building of a dental nurse training school at Morrison Hill. It is to include a children's dental clinic with 30 chairs.

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Voluntary bodies and welfare organisations operate free or low-cost dental clinics for the general public.

Port Health

       The Port Health Service is concerned with preventing the introduction of quar- antinable diseases into Hong Kong, the sanitary control of port and airport areas, and the provision of facilities as required by the International Health Regulations.

       It provides facilities for vaccination and the issue of International Vaccination Certificates. It also deals with the inspection and deratting of ships on international voyages and the issue of International Deratting Certificates. The service renders medical assistance to ships in the harbour and transmits free medical advice to ships at sea. It maintains a 24-hour service for the inspection of incoming passengers by sea and air and handles the granting of radio pratique to ships from clean ports.

Epidemiological information is regularly exchanged with the World Health Organisation in Geneva and the Western Pacific regional office in Manila, and with several neighbouring countries.

Special Services

      The Institute of Pathology maintains clinical pathology and public health labor- atory services for the government and a consultant service for the government-assisted sector. Vaccine is produced at the Institute of Immunology. Studies are carried out on viral hepatitis, poliomyelitis, rabies and cytomegalic inclusion body disease.

      The Institute of Radiology and Oncology provides diagnostic and therapeutic services in hospitals and clinics. It handles more than 90 per cent of all patients requiring radiotherapy in Hong Kong. Visits are made to non-government premises to inspect the working conditions of radiation workers and to ensure that X-ray equipment poses no radiation hazards to the public. Research is being conducted on the epidemiology of nasopharyngeal carcinoma.

       The Government Laboratory is responsible for the examination of food, liquors, pharmaceuticals, and other commodities. The Forensic Pathology Service works closely with the Royal Hong Kong Police Force on the medical aspects of criminology.

Drug Abuse

       Drug abuse in Hong Kong is a serious and long-standing problem. The number of addicts is commonly estimated to be between 50,000 and 100,000, although this estimate cannot be substantiated-or disproved. Typically the addicts are males over 21, from the lower income groups. They are generally single, or if married are usually separated from their families. It is believed that teenage addicts account for only about 1.5 per cent of the estimated addict population.

       Most addicts in Hong Kong use 'hard' drugs. Over the past year there has been an increasing switch from opium to heroin, mainly because of the closure of many opium divans by law enforcement action and also because heroin is easier for drug traffickers to conceal and more convenient for addicts to consume. It is believed

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that the average addict is now spending $35 to $50 a day on drugs. Fume inhalation or what is commonly known in Cantonese as 'chasing the dragon' is still the most popular method used in taking heroin although the use of the injection method is on the increase.

        The government at present spends more than $40 million a year on anti-narcotics work, which can be broadly divided into four areas-treatment and rehabilitation, law enforcement, preventive education and publicity, and international co-operation. Work in these four areas, carried out by various government departments and government-subsidised voluntary agencies, is co-ordinated by the Action Committee Against Narcotics (ACAN). The committee, serviced by a Narcotics Secretariat which is headed by the Commissioner for Narcotics, is also the sole advisory body to the government on all policy matters on narcotics.

       In the treatment of addicts, work is progressing on a multi-programme approach aimed at providing different modes of treatment to suit different categories of addicts. Coinciding with tough law enforcement action which severely curtailed the availability of illicit drugs and pushed the prices up dramatically, the narcotics and drugs admin- istration division of the Medical and Health Department quickly launched an out- patient methadone detoxification programme in June 1976. It opened 12 detoxification clinics simultaneously in various urban districts of Hong Kong. In August two additional clinics were opened. The programme was supplemented with an intense publicity drive and social counselling service. More than 6,560 people had registered for treatment by the end of the year. Each patient is given a daily dose of methadone to quench his or her craving for 'hard' drugs. The dosage is gradually reduced over a number of weeks until the patient becomes completely free of drugs.

       Under the same Medical and Health Department division, the outpatient methadone maintenance programme which was started in late 1972 has now become firmly established as a practicable means of treatment. It offers methadone as a substitute for 'hard' drugs for addicts who have failed repeatedly in other forms of treatment. During the year this programme also registered an increase in the number of patients. The average daily attendance at the four methadone maintenance clinics was 2,860 at the end of 1976, compared with 1,600 a year earlier.

        The Society for the Aid and Rehabilitation of Drug Addicts is Hong Kong's largest voluntary drug addiction treatment agency and is almost wholly subsidised by the government. In 1976 it expanded the capacity of its male treatment centre on Shek Kwu Chau Island from 500 to 550 patients. Operating on an 'open door' basis by allowing patients to leave at any time they wish, the centre provides treatment ranging from a week-long course purely for physical withdrawal from drugs to a full course of 180 days which includes work therapy and rehabilitation. The Hong Kong Dis- charged Prisoners' Aid Society, another government-subsidised voluntary agency, also runs an inpatient treatment programme for drug addicts, though on a smaller scale.

        All these programmes, together with the Prisons Department's custodial treatment programme operated on austere health-through-work lines, are catering for more than 12,000 people at any one time, including those under aftercare.

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       On prevention of drug abuse, education and publicity efforts are being focused on young people who are in such social and economic environments that render them more susceptible to the menace of drug abuse. A series of publicity projects carried out during the year included a localised campaign held in Kowloon City, a densely populated district of high drug abuse incidence.

On the international front, Hong Kong works closely with governments in other parts of the world through either bilateral or multi-lateral contacts. It takes part in international gatherings such as the annual meetings of the United Nations Com- mission on Narcotic Drugs and the Far East Region Operational Heads of National Narcotics Law Enforcement Agencies. Hong Kong made a second annual contribu- tion of $100,000 to the United Nations Fund for Drug Abuse Control (UNFDAC) in 1976. Hong Kong's 1975 contribution was the biggest received by UNFDAC from all developing countries and territories, and was even larger than a number of those from developed countries. Among the scores of anti-narcotics projects being financed by UNFDAC are two opium crop replacement programmes (one in Thailand and the other in Burma) in the so-called 'Golden Triangle'. This is the opium growing area where the borders of Thailand, Burma and Laos meet, and from where virtually all of Hong Kong's opiate drugs come.

Medical Fees

At all government general and specialist outpatient clinics there is a nominal charge of $1 a visit, which includes medicine and diagnostic investigations. There are no charges for people attending the Family Health Service centres or the tuberculosis, social hygiene and leprosy clinics, or for patients with quarantinable diseases. No charges are made at certain remote clinics or on the floating clinics. The daily maintenance and treatment fee for patients admitted to the general wards of govern- ment hospitals is $3. For those who are unable to pay the medical fee, provision has been made for the charge to be either waived or reduced. A limited number of private and semi-private rooms are provided at major hospitals. The charges for these are much higher and in addition all treatment is chargeable.

Training

Graduates of the Faculty of Medicine at the University of Hong Kong receive the degrees of MB, BS, which have been recognised for registration by the General Medical Council of Great Britain since 1911. Both the government and the university maintain a programme of post-graduate training. Opportunities are also available for doctors to sit higher professional examinations in Hong Kong by arrangement with various overseas bodies.

The university produces 150 doctors a year, and a further 100 a year will eventually graduate from Hong Kong's second medical school which is to be established at the Chinese University of Hong Kong in 1981.

A dental scholarship scheme enables a number of students from Hong Kong to study dentistry overseas, but as from 1980 dentists will be trained at the dental school to be set up at the University of Hong Kong.

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The school of physiotherapy run by the Medical and Health Department trains physiotherapists for government service as well as for government-assisted hospitals. In-service training is provided for other para-medical grades of staff to enable them to qualify as radiographers, laboratory technicians, dispensers, prosthetists, and mould laboratory and dental technicians. Suitable staff of the para-medical services are sent abroad for further training.

There are three government hospital schools of nursing. Two are for general nursing and the other for psychiatric nursing. Other approved nursing training schools are attached to government-assisted or private hospitals. There are also courses for training enrolled nurses in general nursing and psychiatric nursing. One-year courses in obstetric nursing for registered nurses and a two-year midwifery course in Chinese are available.

The government conducts a continuous post-graduate overseas training pro- gramme for graduate nurses as well as in-service training in various specialties. It also runs courses for the training of health visitors and health auxiliaries in public health work.

Environmental Hygiene

        The work of the Urban Services Department includes street cleansing, the collec- tion of refuse, the collection and disposal of nightsoil, the management of public toilets and bathhouses, and the disposal of the dead. It operates as the executive arm of the Urban Council in the urban area, and directly under the Director of Urban Services in the New Territories.

Every day the department collects an average of 2,480 tons of refuse and junk. About 1,500 tons are disposed of by burning at two incinerators-one at Kennedy Town on Hong Kong Island and the other at Lai Chi Kok in Kowloon; the rest is disposed of at a number of controlled-tipping sites. Nightsoil is collected free of charge. The need for this service continues to decline as old buildings are replaced by new buildings with proper sewerage. Some 2.98 million gallons of nightsoil were collected in 1976.

Control measures against rodent and insect pests are carried out by specially trained staff in accordance with technical advice issued by the pest control advisory unit of the Urban Services Department headquarters. This work includes the clearing, training, and regular weekly larvicidal oiling of streams to prevent the breeding of malarial mosquitoes on Hong Kong Island, in Kowloon, and at Kwai Chung, Rennie's Mill Village, and Cheung Chau Island in the New Territories. A special snake disposal unit deals with snakes found on premises in cases of emergency.

        In the continuing Keep Hong Kong Clean Campaign, a publicity drive was held from June to August to remind beach-goers of the part they could play in keeping the beaches clean. Volunteer groups were taken to outlying districts on ferries supplied by the Hongkong and Yaumati Ferry Company to clean up various remote and ungazetted beaches which have become popular with the public.

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A picnic warden scheme was introduced in the summer with the aim of getting each picnic or hiking group to elect one of their group as a picnic warden to control their litter. Picnic warden badges and explanatory pamphlets were widely distributed to the general public and to factories, schools and youth organisations.

From July to September, district clean-ups were organised by the Urban Services district offices to clean black-spots in public areas. These operations were carried out in liaison with the local kaifong associations and city district offices.

The major effort of the year was a Clean Buildings Campaign held in November. It featured a clean buildings exhibition at the City Hall and a territory-wide clean buildings competition.

Controls

The district hygiene staff, consisting mainly of health inspectors, play an im- portant role in maintaining and improving environmental health. Their work includes the hygienic control of all premises licensed under the Public Health and Urban Services Ordinance. Both domestic and licensed premises are regularly inspected to ensure that they are maintained to a hygienic standard. Wherever necessary, law en- forcement action is taken.

In addition to dealing with complaints of sanitary nuisances, vermin infestations and other matters within the framework of environmental health, the district hygiene staff assist in the investigation and control of food poisoning outbreaks and other infectious diseases in close liaison with the Medical and Health Department. Recent legislation has empowered them to exercise control over ventilating systems which constitute a nuisance.

       All applications for licences (other than hawker licences) issued under the Public Health and Urban Services Ordinance are dealt with by a central licensing unit. Only premises that meet the requirements of the law are granted licences.

To help improve environmental health during the year, the health education section of the Urban Services Department continued its educational efforts through publicity campaigns, use of the mass media and the arrangement of lectures and talks. Training courses in various aspects of public health were also held for specific groups of people. For the younger generation, particularly schoolchildren, the section works in close liaison with the Education Department, the Government Information Services, and various voluntary agencies such as the Hong Kong Red Cross, the Victoria Jaycees, the Scouts and the St John Ambulance Brigade, in order to promote health education and disseminate health knowledge through various activities such as con- tests and competitions.

The food (import/export) section of the department is responsible for regulating and examining imported meat, poultry, frozen confections and milk. It also inspects and certifies local food and animal products intended for export.

To maintain a high standard of food quality, close surveillance is undertaken by regular sampling for chemical analysis and microbiological tests.

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        Food laws are under constant review and are amended to keep pace with up-to- date information in food technology. The amended Imported Meat and Poultry Regulations 1976 were introduced in July, and steps are being taken to organise a more efficient control programme on other foods at the import stage.

Staff Training

A training school under the direction of the departmental Health Inspectors Training Board provides professional training courses for student health inspectors and members of the health inspectorate as well as training courses on technical subjects relating to environmental health control for other grades of officers. Student health inspectors are trained for two years to the standards required for the Diploma in Public Health Inspection for General Overseas Appointments, issued by the Royal Society of Health in London. For more advanced training, the school conducts train- ing courses for serving health inspectors leading to the award of the Royal Society of Health Diploma in Meat and Other Foods Inspection. To improve public cleansing techniques and management, there is a two-year part-time in-service training course at the Hong Kong Polytechnic to prepare health inspectors for the Testamur examina- tion held by the Institute of Solid Wastes Management, London.

       During 1976 health inspectors attended courses on noise abatement held in co- operation with the extra-mural department of the University of Hong Kong. With a view to keeping pace with modern technology in food, environmental hygiene control and health education, three health inspectors were sent to Britain for specialised training not available in Hong Kong.

Markets

        An important addition to the ever-increasing number of public retail markets in Hong Kong was the new market at Mong Kok which was completed in July at a cost of $3.25 million. This is the first market to have an escalator. It was installed in an attempt to make stalls on the upper floors viable, and reaction so far has been favourable.

        Another new market, to serve the rapidly growing township of Chai Wan adjacent to the Yue Wan housing estate, is under construction. Work also began towards the end of the year on the temporary market programme, which is largely concerned with reprovisioning old and unhygienic markets in crowded residential areas. These temporary markets are to be built on sites earmarked for future development as multi-purpose buildings, and the first will be at Tai Shing Street in Wong Tai Sin.

Hawkers

        The improvement in the economy in 1976 brought with it a decline in the number of street traders. In some of the most congested streets, where the presence of large numbers of hawkers was preventing vehicle movement for most of the day, control was re-established. Clear carriageways were maintained and trading areas were thoroughly cleansed at the end of the prescribed trading hours. A general increase

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in the licence and pitch fees payable for hawker licences and pitches in the urban areas came into effect during the year.

Abattoirs

        The two abattoirs-at Kennedy Town on Hong Kong Island and at Cheung Sha Wan in Kowloon-provide the bulk of the population with fresh meat. During the year 2,867,366 pigs, 157,734 cattle and 5,347 goats were slaughtered at both abattoirs. The daily average at Cheung Sha Wan alone was 15,524 pigs, 248 cattle and 23 goats.

       The mechanisation of the existing pig dressing lines and the installation of a third pig dressing line at each abattoir have now been completed. The by-products plant at Kennedy Town is being modernised. Improvement to the cattle lines at both abattoirs is also planned.

       There are two licensed private slaughterhouses in the New Territories, at Yuen Long and Tai Po. Animals slaughtered there are inspected by health inspectors of the Urban Services Department.

Services in the New Territories

        The New Territories Region of the Urban Services Department looks after en- vironmental hygiene, cleansing, hawkers and markets, slaughterhouses, recreation and amenities, pest control, and cemeteries and crematoria in the New Territories. The region is part of the normal government machinery, and-unlike the other two regions covering Hong Kong Island and Kowloon-it is not within the purview of the Urban Council. It works closely with other government departments operating in the New Territories, especially with the New Territories Administration and the Public Works Department. The region's officers have planning responsibility for en- suring a balanced provision of Urban Services Department facilities and services, especially in the three new towns of Tsuen Wan, Tuen Mun and Sha Tin and in the 12 development areas.

       Hawkers create a major problem, particularly in the larger townships, and this can only be solved by eventually providing adequate off-street markets and hawker bazaars. Meantime, frequent tidying-up operations are conducted at all chronic hawker black-spots. The most significant improvement in 1976 was the clearance of illegal hawkers from streets adjoining the Yeung Uk Road market in Tsuen Wan. For a number of years these streets had been stifled by illegal hawkers, making even minimum cleansing and the passage of traffic impossible. A temporary market was built on the other side of Yeung Uk Road to accommodate eligible hawkers.

       A three-mile stretch of the River Sutlej at Fanling was cleared during the year after having been long polluted by wastes and effluents discharged from pigsties and tanneries on the two banks. The operation was completed in two months with a special task force of 30 men. With the removal of the tanneries to an offensive trade area in Tsuen Wan, hopes are high that fish breeding will again be possible in this section of the river.

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Swimming is one of the most popular pastimes in Hong Kong and there are 25 gazetted beaches in the New Territories managed by the Urban Services Depart- ment. During the year Butterfly Beach and Pui O Beach were provided with life- saving and first-aid services, and another two beaches at Cheung Sha are to have similar services.

Cemeteries and Crematoria

There are five public cemeteries, one public crematorium and eight private cemeteries in the New Territories; and six public cemeteries, two public crematoria and 19 private cemeteries in the urban areas.

The Urban Council operates two funeral depots which provide inexpensive funeral services, while the Tung Wah Group of Hospitals also provides facilities for funeral services on a non-profit-making basis. Construction of a new funeral depot was started in June, to replace the one at Hung Hom.

There has been a steady increase in cremation as a method of disposal of the dead, and approximately 35 per cent of all dead bodies are now disposed of by cremation. This trend is officially encouraged; a new twin cremator has recently been provided for the Cape Collinson crematorium, and plans are well advanced for the building of a new crematorium in Kowloon and another one at Kwai Chung in the New Territories.

8

Housing and Land

MORE than 45 per cent of the people of Hong Kong live in government subsidised public housing. This amounts to nearly two million people, of whom 97,000 were accommodated during the financial year 1976-7. The number moving into govern- ment-financed housing in 1977-8 is expected to be 109,000, and the forecast for the 1980s is 200,000 a year.

      In October the Governor summed up the housing situation when he said that the back of the problem should be broken by 1984 provided all concerned maintained the pressure necessary to keep to the government's targets. He told the Legislative Council: "The land is earmarked, the Housing Department will have the design and construction capacity, we have the finance, and many of the relevant contracts are already let.'

      Hong Kong's housing problem has stemmed from the population increasing sevenfold since the end of the Second World War. In 1945 the population was 600,000; by the end of 1947 it was about 1.8 million; now it is 4.4 million. Immigrants-and particularly a great inflow of refugees in 1948-9 from the civil war in China--were a major cause of the population explosion, but the high birth rate of a young popula- tion was also an important factor. In 1954 the excess of births over deaths was more than 1,000 a week.

      The rapid increase in population put strains on all social facilities and plans, and on top of this Hong Kong was faced with an acute shortage of land suitable for development. In the early 1950s the total area of the territory was about 391 square miles. Reclamation over the years has boosted this to about 404 square miles, but much of the land is mountainous and unsuitable for development. This equation of high population and land shortage has necessitated the construction of high-rise housing projects, both public and private.

      The first public housing started in early 1954 after a disastrous fire swept through a squatter township at Shek Kip Mei in Kowloon, leaving 50,000 homeless. The government stepped in and just 53 days later the Public Works Department had constructed enough two-storey emergency quarters to house 35,000. By December 1954 the first of the now familiar resettlement blocks were completed and a huge public housing programme was under way.

Now and the Future

      Today nearly two million people live in government subsidised accommodation in Hong Kong. More than 1.8 million live in the Housing Authority's 57 public

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housing estates while a further 145,400 people live in subsidised housing provided by the Hong Kong Housing Society-a voluntary government-aided organisation.

       But the problem is far from solved and the government's target is to ensure that every family has a permanent, self-contained home at a price it can afford. This means replacing inadequate housing-in the early resettlement estates, private tenements and the remaining squatter areas-and also building new homes to keep up with population growth. There is still a shortage of the right type of accommoda- tion and overcrowding is a serious social problem.

Early in 1976 the government announced its intention to promote home owner- ship in the lower-middle income groups by building 30,000 flats for sale within the public housing sector. A working party was set up to devise a practical scheme to be made available to people within and immediately above the income limits of eligibility for public housing. In November the Housing Authority announced that it was assured of the necessary sites and funds and it was going ahead with the plan- ning and construction of the first 6,000 flats. It is intended to build 5,000 flats a year. The first of the initial 6,000 are expected to be completed in 1979-80, and meantime the working party is to continue its study of how best to provide the necessary mortgage funds on reasonable terms, including easier mortgage interest rates. Many details of the non-profit-making scheme have still to be settled, including the exact definition of eligible households.

People eligible for public housing are divided into 11 categories: victims of fire and natural disasters; compassionate cases recommended by the Social Welfare Department or the Medical and Health Department; tenants of buildings demolished as dangerous; people in areas cleared for development; tenants of properties acquired for urban renewal; tenants of early housing estates under redevelopment; residents of licensed areas required for other uses; relief of overcrowding in public housing estates; waiting list applicants; junior civil servants and pensioners; and quarters for caretakers and shop tenants.

The Housing Authority

Subsidisation of public housing starts with the grant of land. The government grants building sites to the Housing Authority at prices substantially less than the prevailing market price, and funds are available from the Development Loan Fund at low interest-currently five per cent. Rents for new estates are fixed to cover building, management and maintenance costs.

       The Housing Authority comprises the Secretary for Housing, 13 unofficial members (eight of whom are urban councillors) and six official members, all of whom are appointed by the Governor. The authority is a statutory corporation with respon- sibility for its own finances and management. Its principal task is to build and manage public housing estates but it also deals with squatter control and clearance and advises the government on housing policy.

The authority meets bi-monthly, but to ensure that business is despatched quickly, effectively and with minimal formality, five committees have been set up: the appeals,

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building, finance, management and operations committees. The executive arm of the Housing Authority is the Housing Department.

       During the year the construction of the Housing Authority's new headquarters building was completed. The 16-storey building is next to the Oi Man estate on Princess Margaret Road, Kowloon. Previously the Housing Authority occupied offices at three locations, which compounded administration problems.

New Policies

A number of new policies were implemented in 1976. These included the mutual exchange scheme, the revision of procedures for waiting list applications and the space and income criteria, the addition of married sons and daughters to tenancies, and an amendment to the rent deposit policy.

Tenants of public housing estates are now able to exchange their tenancies by mutual consent provided that flat sizes, rent and other criteria are suitable. This was made possible through the formation of the Tenants Mutual Exchange Bureau, which came into operation on August 3 at the new Housing Authority headquarters. The bureau maintains a register of tenants who have returned a form indicating the type and location of flat they would like to move to. This information is made avail- able to other tenants wishing to move in the opposite direction. A registration fee of $10 is charged, and the application is recorded for two years, after which it can be renewed on payment of a further fee. Vacant flats are not involved, so the scheme does not affect the prospects of applicants on the waiting list or in other categories.

Waiting list applicants for public housing are no longer required to renew their applications annually, but they must inform the Housing Department by letter of any change of address.

      Space and income criteria have also been revised. Previously applicants whose existing accommodation gave them more than 35 square feet of space per person were not eligible for allocation through the waiting list, regardless of other living con- ditions. Now, however, the space limit of 35 square feet per person is applicable only to applicants living in accommodation of durable materials such as brick, stone and concrete, with facilities such as a kitchen, piped water, and sanitation either for exclusive use or shared with not more than two other families. For applicants living in similar accommodation but without the use of either a kitchen, piped water or sanitation, or having to share these facilities with more than two other families, the space limit is 40 square feet per person. There is no space limit for people living in structures made of wood, cardboard and tin sheets.

      The income limits for waiting list applicants have also been re-adjusted. The maximum income scale is now $1,500 for a family of three, with $100 for every extra person up to $2,200 for a family of 10 or more. These limits are revised from time to time to meet changes in the index of wages for industrial workers.

A new move introduced in November 1975 enables tenants in former resettle- ment or low cost housing estates to nominate one married son or daughter and his or her family to be added to the authorised household. Other sons or daughters of

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the tenant are expected to move out when they get married. This policy is aimed at reducing the present excessive overcrowding in many estates by people who should be expected to find their own accommodation outside the estate, while at the same time recognising the difficulty faced by tenants of finding alternative accommodation for married children and their families.

       Since September 1, 1976, tenants for all new domestic lettings are required to pay one month's rent as a deposit, subject to a minimum of $50 for flats where the monthly rent is less than $50. But tenants involved in stages of redevelopment schemes and clearances begun before September 1 and extending beyond that date are to pay only a $50 deposit. In exceptional cases, families who are unable to pay the re- quired one month's deposit in a lump sum may be allowed to do so by instalments. The deposit is refundable to tenants when they terminate their tenancies and hand the flats back to the authority in good condition.

       This amended regulation is in keeping with world-wide practice and will also help to safeguard the public funds of the authority if tenants vacate their flats leaving arrears which have to be written off as bad debts. In 1975-6 there were 430 cases with arrears totalling nearly $20,000 which had to be written off.

        On December 1, a small increase was made in domestic rents in the former resettlement and low cost housing estates. The increase was calculated on the basis of seven cents per square foot of flat area. It amounted to less than $10 a month extra for about 40 per cent of the tenants concerned and from $10 to less than $20 extra for a further 50 per cent. While it was not expected that the increase would cause hardship, any family which had difficulty in paying the new rent was advised to discuss the matter with the estate staff. As in 1974, district assistance teams were set up to help any such cases.

        The Housing Authority was given powers under the Housing (Amendment) Bill 1976 to terminate immediately the lease of flats not occupied by the authorised tenants. This move was taken to put an end to the breaches of tenancy agreements that arise when tenants move to other accommodation and leave the flats empty, or when the flats are sublet.

       On August 25 a disastrous landslide occurred at the Sau Mau Ping estate in Kowloon, engulfing most of the ground floor flats and shops of Block 9 and killing 18 people. Block 9 and the adjacent Block 15 were evacuated and more than 500 people were given accommodation at the Kowloon Bay flatted factory building. The preliminary report on the landslide indicated that it was due to the infiltration of water into the slope, caused by prolonged and unusually intense rainfall. A survey of all similar slopes was straightway conducted by a firm of consultants to identify slopes displaying similar characteristics to the one that had failed.

        Immediate action was taken by the Housing Department to accommodate people affected and to assist in rescue operations by providing earth-moving equip- ment and lighting. Tenants were allowed to return to their homes after a safety embankment had been erected and other slope protection measures taken. Permanent remedial measures for Sau Mau Ping and other estates were put in hand. Also, a

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    panel of international experts was appointed by the Public Works Department to identify causes of this and other landslips and to make recommendations on future design criteria for man-made slopes in Hong Kong.

Housing Estates Completed

      By March 1976, some 350,347 flats had been provided in public housing estates over a period of 23 years. All new flats have a minimum living space allocation of 35 square feet per person and are completely self-contained with kitchens, toilets and showers, and balconies. In the financial year 1975-6 there were 11,027 flats completed, compared with 5,500 in the previous year.

      Projects completed during 1976 included the Lek Yuen estate, Lai King estate, Kwai Shing estate (Stages II and III) and Hing Wah estate. Major schemes under construction included the Lai Yiu estate, Ngau Chi Wan estate, Shun Lee estate, Cheung Ching estate and Fu Shan estate.

The 24-acre Lek Yuen estate-the first public housing estate to be constructed at Sha Tin-was completed by the end of 1976. Located beside the future new town centre, the estate has seven blocks of eight to 22 storeys with 3,252 self-contained flats. It will house about 23,000 people. The flats vary in size from 244 to 566 square feet and the monthly rent from $160 to $420. The estate has a modern air-conditioned shopping centre with supermarket, department store, shops, restaurants, banks, cooked-food stalls, service trade shops and market stalls. Other facilities include schools, kindergartens, a community hall, welfare accommodation, a recreation ground (which includes two mini-soccer pitches and a basketball court), a temporary fire station, a police reporting centre, a 247-space garage and open car parks. By the end of the year the estate was 80 per cent occupied.

      The Lai King estate at Tsuen Wan provides homes for 27,964 people with 4,228 flats in seven blocks. Rents for domestic flats vary from $181 to $356 a month. Commercial services include shops, a modular market, a restaurant, two banks and 93 shopstalls. There are also schools and kindergartens in the estate as well as a post office, a community hall, a social security field unit, welfare accommodation reserved for other agencies, a police unit, and a factory block. The estate was fully occupied before the end of the year. It is bisected by a site reserved for the mass transit rail- way's Lai King station.

The Kwai Shing estate at Tsuen Wan was also fully completed at the end of the year. The building project was divided into three stages, with the first stage completed in March 1973. The 5,639 domestic units in the first stage vary from 253 square feet to 402 square feet, with monthly inclusive rents ranging from $85 to $173. The second and third stages were completed in 1976, providing 5,300 domestic units. which will house approximately 37,000 people. The sizes of the flats vary from 244 square feet to 591 square feet and monthly rents from $176 to $381. The total estate population will be about 72,500. Commercial facilities include shops, modular markets, a supermarket, department stores and a restaurant. There are secondary schools, primary schools and kindergartens, while welfare services include a social

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centre, a small group home run by welfare agencies, and a welfare hall. There will also be two garages and a covered bus terminus.

        The $53 million Hing Wah estate at Chai Wan has eight multi-storey domestic blocks which house 22,700 people. The estate has two schools, a welfare hall, market, restaurant and large areas of open space with playgrounds and gardens. The first two blocks of the estate were completed in February 1976-six weeks ahead of schedule-under a crash building programme launched by the Public Works Depart- ment's Architectural Office following a fire in the squatter area at Aldrich Bay, in which 3,200 people lost their homes. Under the emergency plan, eight weeks of works were condensed into just two-and-a-half weeks, enabling the Housing Authority to arrange for the early rehousing of some of the people who had lost their homes in the fire.

Estates Under Construction

        The building scheme of the Lai Yiu estate (formerly known as Ha Kwai Chung) at Tsuen Wan started in May 1973 and was divided into three phases. The development area covers 22 acres and the estate will provide 2,415 flats to house about 19,300 people. There will be three twin-tower domestic blocks, one slab domestic block and one three-storey low block for shops and a restaurant. Ancillary accommodation facilities will include market stalls, tradesmen's workshops, primary and secondary schools and kindergartens. Allocation of flats started in December 1976 and the estate is expected to be fully completed by May 1977.

       The Cheung Ching estate is under construction on a 70-acre site on Tsing Yi Island. Building work on the first phase of the housing project-comprising four 22 to 24-storey twin-tower blocks and one slab block-is at an advanced stage, with the first blocks due for completion in early 1977. They will provide about 3,000 flats of varying sizes from 240 square feet to 590 square feet for about 23,000 people. Also being built on the site is a large commercial complex with restaurants, supermarkets, department stores and other shopping facilities for the islanders. A further phase of the project--including the building of two more twin-tower blocks, three primary schools and ancillary works-was also begun during 1976. The estate is situated on a slope just off the western end of the Tsing Yi bridge, overlooking the Rambler Channel, and on completion in the early 1980s it will house more than 50,000 people.

       Two public housing estates under construction in Clear Water Bay Road will eventually provide homes for more than 125,000 people. They are the Ngau Chi Wan estate, neighbouring the Ping Shek estate, and the Shun Lee Tsuen estate, near Anderson Road. Two multi-million-dollar contracts for the building of various phases of the estates were awarded in July to two local construction firms. The first contract, worth $48 million, is for the building of three twin-tower blocks for 16,000 people, a three-storey car park and a primary school at the Shun Lee Tsuen estate. The second contract, worth $41 million, is for the development at the Ngau Chi Wan estate of three twin-tower blocks for 16,000 people, a primary school and a kindergarten. Building works for both projects started in July and are expected to be completed in mid-1978.

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      Another estate which will provide homes for 11,000 people is being built in urban Kowloon close to the Choi Hung estate. The Housing Authority awarded a $34 million contract to a local construction firm in June for the building of the new Fu Shan estate, which is expected to be completed in early 1978. A large podium is to be formed and one seven-storey and two 21-storey blocks providing 1,600 self-contained flats will be built on it. Under the podium will be a two-storey commercial centre hous- ing a large restaurant and shops, and spaces for service trades. There will also be a children's play area and a car park for 150 vehicles. A market area will be located on the inner part of the podium and a primary school has been planned at the eastern corner of the estate.

      During the year the Housing Authority announced new building designs. The new H-shaped 'point blocks' will give tenants more privacy and better light and ventilation. Flats in this new design will have slightly bigger kitchens, toilets and balconies. There will also be a better lift service. The new plan will provide different sized flats and fewer units on each floor compared with earlier designs. Each floor will have eight flats of about 380 square feet and four two-bedroom flats of about 700 square feet. The new design will also give architects more flexibility to plan various combinations to give estates more interesting and varied layouts.

Redevelopment

      Aside from new estates, the Housing Authority has embarked on a long-term $1,800-million programme to relieve overcrowding by redeveloping all estates built between 1954 and 1964. There are 12 such estates which accommodate about half a million people and occupy about 270 acres of land in strategically located areas. These blocks provide for only communal toilets and washrooms, and cooking is done on open balconies. Space in the old blocks was originally allocated at 24 square feet per adult but acute overcrowding below this standard is commonplace. Facilities such as purpose-designed schools, recreation areas, markets and off-street parking are seriously lacking, thus adding to the general congestion. Management costs greatly exceed revenue from rents, the deficit for these estates alone amounting to about $29 million in 1975-6.

      Four redevelopment schemes are already in progress. Since the first scheme was started at Shek Kip Mei in October 1972, steady progress has been made towards the transformation of these old estates. Work has been concentrated both on the development of new reception estates to rehouse affected tenants and on the modern- isation of the old estates. Remodelling of the estates has so far been accomplished partly by conversion and partly by complete redevelopment-which will assume a more dominant role in years to come.

      The Shek Kip Mei estate originally housed about 62,000 people at a density of more than 2,000 people per acre. Upon completion of the redevelopment scheme it will accommodate approximately 33,000 people. It is envisaged that 19 of the 29 original blocks will be modernised by converting back-to-back units into self- contained flats. But 10 blocks in the centre of the estate will be demolished and the site used for the construction of a new commercial complex linked with high-rise

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domestic blocks and associated community facilities. Provision will also be made for a multi-storey workshop block. Including the Upper Pak Tin reception estate, the total cost of this project will be about $206 million. It is hoped that the entire scheme can be completed by 1981.

       The Tai Hang Tung estate at present comprises 14 blocks which accommodate 35,000 people. The first stage of its redevelopment scheme will involve the construc- tion of a reception estate on an adjacent site of 11 acres to provide housing for about 14,000. The reception estate will also incorporate a commercial complex, a multi- storey car park, school sites and open spaces. Provision will be made for some 2,364 small, medium and large-sized flats. As accommodation becomes available in the first stage, arrangements will be made for the rehousing of tenants from the Tai Hang Tung estate so that eventually the old blocks can be demolished and replaced by new accommodation for 16,000.

       The Chai Wan West estate comprises 12 blocks which accommodate 27,000 people. The redevelopment scheme will provide new self-contained accommodation for about 22,000. Provision will also be made for a major commercial complex, schools and recreation areas. The scheme was initiated in March 1976 with the commencement of rehousing operations involving Blocks 24 and 25. The rehousing commitment in respect of these two blocks comprises 841 families (4,700 people), 29 shops, two workshops and two schools.

       To help formulate rehousing procedures, a sample survey of domestic tenants in the estate was undertaken in December 1975. This showed that the great majority of the tenants wished to move. Within a matter of weeks of the announcement of the scheme, all the domestic tenants in Blocks 24 and 25 made application for rehousing, about 80 per cent expressing a desire to move to the Hing Wah estate nearby. About 160 families asked for rehousing in cheaper accommodation at Chai Wan. Another 33 stated a preference for rehousing in other estates, mostly in Kowloon.

       Tai Wo Hau, the fourth redevelopment scheme, was started in June 1976. The estate currently houses about 42,000 people in 19 blocks. The first phase will require the rehousing of 803 families (4,258 people). Tenants in Blocks 12 and 13 are being offered new or vacated flats mainly in the Tsuen Wan-Kwai Chung district as the majority of the families have strong socio-economic ties with that area.

Temporary Housing

       The temporary housing programme provides an interim solution to the problem of homeless people who are not eligible for public housing and who cannot afford private housing. Temporary housing is considered unsatisfactory by the Housing Authority's own definition and it will eventually be demolished and the occupants reaccommodated in public housing estates.

       Beginning in 1964, homeless people were offered a piece of vacant ground in a 'licensed area' provided only with water standpipes and dry latrines. In these areas licensees were permitted to erect a simple hut of wood or tin. From time to time the areas were cleared of huts and the occupants offered accommodation in public housing estates.

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      Such rudimentary facilities are not now considered acceptable and in 1973 the Housing Authority obtained funds from the government for improvements in a number of these old licensed areas, including provision of house water and electricity. The government also provided funds for the authority to construct a new style of licensed area fully serviced and containing rows of asbestos roofs supported on a timber frame. Licensees are allocated space within these part-built structures and they construct their own internal and external walls. The outcome is a form of temporary housing which is safer, more orderly and more manageable than before, but which preserves the self-help principle.

Cottage Areas

The first 'cottage areas' were established in 1948 for squatters in central areas who were offered sites in outlying districts to build their own huts. It was then thought that these outlying areas would not be required for development in the foreseeable future. But because of the rapid progress of development, many of these cottages are now being cleared for public works projects.

Some of the stone or brick and wooden huts were put up by the settlers them- selves, but others were built by welfare or non-profit-making organisations. Prominent among these sponsors were the National Catholic Welfare Conference, the Methodist Board of Missions, the Church World Service and the Hong Kong Settlers Housing Corporation. Most agencies have now found it more convenient to transfer ownership of their cottages to the government, to be administered by the Housing Department. Apart from permit fees, rents are charged for government-owned huts. The cottage areas also contain many schools and welfare facilities, which pay a nominal fee of $2.50 a quarter for their sites.

Squatters

The prevention of new squatting on Crown land and the clearance of squatters from land required for development are two of the Housing Authority's most demand- ing tasks. In carrying out these activities the authority is mainly acting as the agent of the government and the cost of these operations is met in full from general revenue. Squatter control work is basically aimed at containing the growth of squatting by preventing the erection of new squatter structures.

      The 1976 Squatter Control Survey conducted by the Housing Department in June shows that there has been a decrease in the squatter population from 411,060 people in 1964 to 274,427-a drop of 33 per cent. It also shows that fewer people are living in each squatter structure, the average being 5.3 people as compared with an average of 10 in 1964.

      A pilot project to provide squatter areas with a legal power supply was success- fully implemented in 1976 in the sprawling squatter area below Lion Rock. It has benefited about 9,000 people or 2,200 families. The scheme was recommended by a working party appointed by the Secretary for Housing. For the first time, a legal source of

         power was made available to every structure in a squatter area, no matter how makeshift. Consumers in the pilot area were not required to contribute towards

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the capital cost of the mains supply, although they had to provide their own service wires and internal fittings according to safety specifications laid down by the working party.

       To provide a legal framework for supplying power to squatters, the Electricity Supply Ordinance and Regulations were amended and a new set of Electricity Supply (Special Areas) Regulations were enacted. The new legislation came into operation in July 1976. It allows the Secretary for Housing to designate special areas to be subject to the Electricity Supply (Special Areas) Regulations. Because of the success of the pilot scheme, it is planned to introduce similar schemes to other squatter areas.

Town Planning

       One of the principal aims of town planning in Hong Kong is to improve the quality of the physical environment for the territory's 4.4 million people. To do this, it is necessary to ensure that sufficient land is available for public and private housing, for commerce and industry, and for recreation and other community uses. In the densely populated old urban areas where community facilities are under-provided, the prime objective is to improve the living environment by providing more open space, schools and other facilities.

There are two bodies mainly responsible for town planning. They are the Town Planning Board, chaired by the Director of Public Works and comprising eight official and eight unofficial members, and the Land Development Policy Committee, chaired by the Secretary for the Environment and comprising six official members. The Town Planning Office of the Public Works Department services these two bodies and their sub-committees. The office prepares plans for existing and future urban areas, including statutory outline zoning plans for the new towns, and planning guides for rural areas. It also provides planning advice for the New Territories Administration and advisory bodies.

There are three main levels of planning in Hong Kong: the Hong Kong Outline Plan; the Town Planning Board statutory outline zoning plans; and departmental plans in the form of outline development plans, layout plans, planning guides and 10-year development programmes.

       The Hong Kong Outline Plan sets out general planning concepts and policies for future population distribution and land development, and defines standards and locational factors for the provision of community facilities. The plan is based on the findings of six interdepartmental working committees and a data bank of land use, demographic and other related planning information. It provides a framework for the preparation of statutory outline zoning plans and departmental plans, and it attempts to co-ordinate and integrate outline planning with district planning. The data bank is continually updated and analysed within a system of primary, secondary and tertiary planning units over planning periods. Revision of the plan was almost completed during 1976.

       Draft statutory outline zoning plans are prepared by the Town Planning Office for the Town Planning Board under the provisions of the Town Planning Ordinance.

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    Prior to the preparation of a draft statutory plan, a background study of the existing situation and a forecast of future population, land requirements and other trends is carried out to assess the problems and needs of the planning area in relation to surrounding areas and the territory as a whole. These statutory plans show, in general terms, areas set aside or zoned for residential, commercial, government, institution or community use, and for other specified purposes. They provide an important link between the government and the public in that they give an indication of the future broad pattern of land use, including major public works for developing areas, and so provide a guide to public and private investment.

      Draft statutory plans are exhibited for public inspection. Objections to plans are considered by the Town Planning Board and the draft plans amended, where appropriate, before they are submitted to the Governor in Council for approval. There are 39 planning areas in the urban areas, of which 18 are now covered by approved plans and four by draft plans. Applications may be made to the Town Planning Board for permission to use land for a purpose specified in the notes on the plans. During the year, 40 applications were received and considered by the board. There was one appeal under section 17 of the Town Planning Ordinance for residential redevelopment of property required for open space development, but it was rejected by the Executive Council.

      Departmental planning guides for developing rural areas, and departmental outline development plans and layout plans for developing urban areas, are prepared within the framework of statutory plans and the Hong Kong Outline Plan. These plans are normally drawn to larger scales and show detailed road proposals, the disposition of building sites reserved for various uses, and other details. They are 'action' plans to enable land to be prepared and released for public or private develop- ment. Because these plans may be subject to frequent changes of detail, they are used on an administrative basis to maintain flexibility. The plans are submitted to the layout plans sub-committee of the Land Development Policy Committee or to the New Territories Development Progress Committee for approval.

Most of the development areas in Hong Kong are covered by some kind of plan. But many of the statutory plans and departmental plans are due for review to take account of recent changes in planning policies, housing policies, population forecasts and other trends. New plans are produced at the metric scales which have been adopted in the Public Works Department.

New Towns

Because of the limited amount of land suitable for development, it has long been necessary to create more building land by cutting platforms into hillsides and by reclaiming shallow waters on the coast and in estuaries. This method is being widely used in the development of Hong Kong's three new towns of Tsuen Wan, Tuen Mun and Sha Tin,

      The long-term housing programme to be carried out by the Housing Authority provides for about half of the new public housing to be built in these new towns and in old townships such as Tai Po and Yuen Long. The new towns will gradually be

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developed as balanced communities with public and private housing and with employ- ment and community facilities to minimise traffic within and between the towns.

       Tsuen Wan new town to the northwest of Kowloon already has a population of more than half of the 900,000 for which it is planned. The Kwai Shing and Lai King housing estates, and the first stage of the Lai Yiu housing estate, which were com- pleted during 1976, together provided accommodation for about 100,000 people. Extensive formation work was also started in the northern area of the town to provide land for housing in both the public and private sectors. Clearance, involving rehousing some 5,000 people, was commenced in the latter part of the year to provide a site for a new housing estate for 33,000 people. Construction of village houses was also begun, to resite villages affected by other clearances. The future population in the northern part of the town will amount to 120,000.

        On Tsing Yi Island, which is part of Tsuen Wan new town and is connected to it by a road bridge, rapid changes are taking place. Some 23,000 people will have homes in the first public housing estate by 1977, and the island will eventually house about 180,000.

        At Tuen Mun new town, on the west side of the New Territories, the bulk of the engineering work for Stage IA development at the northern end of Castle Peak Bay has been completed. It provides 93 hectares of land with a population capacity of 54,000. Private residential and industrial buildings are going up rapidly and con- struction of the first phase of the Tai Hing housing estate, with accommodation for 28,000 people, is due to be completed in 1977. Further land is being formed, including 70 hectares of reclamation in Castle Peak Bay, for Stage IB development. On com- pletion, Stage IB will provide 124 hectares of land and together with Stage IA it will accommodate 193,000 people in a balanced township. Tuen Mun new town is planned to cover 1 100 hectares, with a total population capacity of 486,000. Good progress was made during the year on the new road connecting Tuen Mun with Tsuen Wan.

       At Sha Tin new town, to the north of the Kowloon peninsula, planning and engineering work for Stage I development is progressing rapidly. This stage will provide 420 hectares of land and a population capacity of 238,800. The first public housing estate-the Lek Yuen estate, which was completed in 1976-provided homes for 23,000 people. Work also began during the year on the Wo Che housing estate Phase IA, to provide homes for a further 16,400 people. Two primary schools and other community facilities were completed and four hectares of land were developed, serviced and sold for light industrial use. When the new town is completed it will accommodate 520,000 people in an area of some 1 740 hectares. The second Lion Rock road tunnel, which connects Sha Tin with Kowloon, has been substantially completed and construction of the road work and ancillary buildings connected with the tunnel are now under way.

       Concurrently with the development of the new towns, expansion of the market towns of Tai Po, Fanling, Shek Wu Hui and Yuen Long will take place to meet an eventual population in the region of 400,000 people. At Tai Po, reclamation of land began in 1976 for the Yuen Chau Tsai San Tsuen housing estate, which will accom- modate 30,000 people. The first stage is to be completed in 1979.

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It has been estimated that in the rural parts of the New Territories some 300,000 people will ultimately need some form of assistance within the housing programme. Planning is already well advanced for rural communities on the islands of Cheung Chau and Peng Chau, and at Mui Wo and Tai O on the island of Lantau. The same applies to Sham Tseng, Tan Kwai Tsuen, Lau Fau Shan, Sai Kung and Sha Tau Kok on the mainland. In all these townships, development is related to rural public housing estates.

Private Building

      Hong Kong's improved economic performance in 1976 resulted in tangible evidence of rising capital investment in industry and commerce, which in turn generated increased activity in private building. Work was begun on a number of development schemes-the designs for which had previously been left on the drawing board to await a more favourable financial and economic climate.

      There were 807 new building proposals submitted for approval during the year, compared with 658 in 1975. The total cost of new buildings completed was $1,730 million, a decrease of 8.5 per cent compared with 1975.

      Among notable building projects completed were the 37-storey Alexandra House office building in Central District on Hong Kong Island and, on the southwest coast of the island, most of the major buildings and the cable car system at Ocean Park-one of the largest oceanarium complexes of its kind in the world. Substantial development was also completed on Tsing Yi Island, where the Dow Chemical complex and many oil storage tanks were constructed. On The Peak, the Strawberry Hill and Kellett View high class residential projects were completed.

      Plans were approved for the new 63-storey Hopewell Centre office building in Wan Chai, which will be the tallest building in Hong Kong. Many other projects for residential, commercial and industrial uses were approved, including a 25-storey office block to replace the old China Building in Central District. Constructed in the 1920s, this was one of the first buildings allowed to go higher than four storeys.

      Several development schemes by the Mass Transit Railway Corporation were processed, the largest being for what is in effect a small town to house 25,000 people over the Kowloon Bay depot. Throughout the year the mass transit unit of the Buildings Ordinance Office carried out examinations of existing buildings adjacent to railway construction sites to make sure of their safety.

      An advanced stage was reached in the planning of a middle-income housing development at Pok Fu Lam to accommodate 18,000 families. The scheme includes schools, play areas and full community facilities, and it represents a major contribu- tion to the housing effort by the private sector.

      The Priorities Committee of the Buildings Ordinance Office continued its efforts to ensure that financially viable private development schemes that are in the public interest are awarded priority in the processing of submissions. A total of 44 schemes received priority, compared with 37 priorities granted in 1975.

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        The Buildings Ordinance and allied legislation, together with two Codes of Practice, were converted into metric terms when the Metrication Ordinance 1976 came into effect. The use of non-metric units, with certain exceptions, will be pro- hibited in plans submitted after March 1977. To give private architects and engineers the opportunity to prepare themselves for the mandatory use of metric units, they were given the option of submitting plans in metric form from the beginning of 1976.

       The implementation of the Child Care Centres Regulations 1976 further widened the functions of the Buildings Ordinance Office, which now inspects premises used or proposed to be used as child care centres. A total of 95 inspections and reports were made during the year to assist the Director of Social Welfare to determine the suitability of premises for registration under the Child Care Centres Ordinance.

        To obviate the need for private developers to approach more than one govern- ment department to seek approval for building plans, a centralised processing system was introduced in October. Under this system, building plans are submitted only to the Buildings Ordinance Office, which assumes a general co-ordinating role in the approval of the plans. But certain matters such as lease modifications must still be resolved by the developer with the appropriate department.

        The dangerous buildings division of the Buildings Ordinance Office deals with the demolition or repair of dangerous buildings. Other activities include routine inspection of suspect buildings and action in response to minor complaints relating to defective drainage. During the year some 65 buildings were closed and demolished, compared with 149 in the previous year. There were 334 repair notices served as against 453 in 1975, and 67 defective drainage notices were served.

        One appeal was heard against a decision made by the Building Authority under the Buildings Ordinance, but it was denied by the Appeals Tribunal. In addition, dis- ciplinary proceedings were initiated against one authorised person and one registered contractor. For the first time, private property owners were prosecuted in respect of various offences connected with unauthorised building work, resulting in eight con- victions with varying fines.

Management of Buildings in Multiple Ownership

       In 1976 there were 127 owners corporations formed under the Multi-storey Buildings (Owners Incorporation) Ordinance. This legislation, passed in 1970, enables owners of buildings in multiple ownership to incorporate for the better management of their building, particularly in its maintenance and environmental improvement. By the end of 1976 the total number of corporations was 918. The city district offices and the New Territories district offices offer assistance and advice to owners either on incorporation or on the creation of mutual aid committees in these buildings. By the end of 1976, there were 2,214 mutual aid committees registered.

Rent Control of Pre-War Premises

       Legislation controlling rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after the war and was later

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     embodied in 1947 in the Landlord and Tenant Ordinance-since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance. This legislation applies to both domestic and business premises and restricts rents by reference to the standard rent at pre-war levels, while excluding from control any new or substantially recon- structed buildings.

       Following an amendment in December 1975, permitted increases on standard rent were raised to 105 per cent (previously 55 per cent) for domestic premises and 250 per cent (previously 150 per cent) for business premises. They were the first such increases permitted since 1954. A Tenancy Tribunal fixes or determines the amount of rent payable in respect of pre-war premises and deals with other tenancy matters.

      Where the landlord incurs expenditure of $5,000 or more on additions or improvements he may, subject to the approval of the Tenancy Tribunal, increase the rent by 20 per cent per annum of the amount expended. Rent increases are also permitted where the landlord bears the rates and the rates liability has been increased.

There is provision in the legislation for exclusion of pre-war premises where redevelopment is intended. Exclusions are made on the recommendation of a Tenancy Tribunal, by order of the Governor, and the payment of compensation to tenants dispossessed is almost invariably a condition of the granting of such an order. The rent control division of the Rating and Valuation Department provides factual information to enable the Tenancy Tribunal to determine the amount of compensation to be awarded to tenants displaced from buildings subject to exclusion order proceedings or from buildings declared dangerous by the Building Authority.

      A tenant may also agree to accept compensation from his landlord in return for delivering up vacant possession of his premises, and in this event the premises are excluded from further control. Such agreements must be endorsed by the Commis- sioner of Rating and Valuation and must be in a form approved by him.

There is also provision for a landlord and tenant, or a prospective landlord and tenant, to agree a rent in excess of the permitted rent for a period not exceeding five years, but agreements must be approved by a Tenancy Tribunal. Since November 1973, premises which become the subject of such agreements approved by the Tenancy Tribunal are automatically excluded from further control.

Post-War Premises

       Legislation affecting the tenure and rents of post-war premises dates back to 1952 with the Tenancy (Prolonged Duration) Ordinance-since re-enacted as Part IV of the Landlord and Tenant (Consolidation) Ordinance. This legislation provides five years' security of tenure for tenants of both domestic and business premises who have entered into oral tenancy agreements involving the payment of key money or premia. However, as the payment of key money in such circumstances is no longer prevalent, the legislation has little practical effect.

       Increases in rent in 1961 and the early part of 1962 resulted in the enactment of the Tenancy (Notice of Termination) Ordinance, now Part V of the Landlord and

New Territories

Development

The New Territories cover 370 square miles of mostly open countryside. Until recent years this was simply an area of scenic beauty, with small rural and maritime communities. These attractions still exist, but today there is much more besides. The New Territories are being developed to provide homes, work and enjoyment for millions instead of thousands. Growth be- gan in the 1950s, but it was not until the 1970s that spectacular changes were seen with the development of three new towns and various industrial and allied projects. The new towns-Sha Tin, Tuen Mun and Tsuen Wan-will eventually accommodate 1.9 million people. The towns are growing in carefully planned stages in order to synchronise housing with employment op- portunities and a full range of social and community facilities for each group of newcomers as they move in. A new road network is under construction, industrial estates are being set up to attract both local and overseas investment, and land is being made available for other indus- trial projects. All this is being carried out in accordance with modern thinking on conservation and preservation-particul- arly as regards traditional communities and architecture, local custom and the countryside itself.

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Previous page: Tsuen Wan, with the newly completed Kwai Chung container terminal and the bridge to Tsing Yi Island, which is part of the new town. Left: The island, where traditional boat-building is now car ried out alongside industrial concerns like the factory which builds shipping containers.

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Also on Tsing Yi Island, this chemical complex was one of several new projects completed during the year.

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On a hill overlooking Sha Tin new town is a nine-storey pagoda and the image of the god who guards the nearby Temple of 10,000 Buddhas.

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Sha Tin new town's first public housing estate-the Lek Yuen estate-was completed in 1976, providing homes for 23,000 people.

     The gateway to Tsing Shan Monastery-named after the Green Mountain where the woodlands are being preserved under the Tuen Mun new town plan.

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The first phase of the Tai Hing housing estate at Tuen Mun, with accommodation for 28,000 people, is Edue to be completed in 1977.

The Kwai Shing estate took four years to build and it houses 72,500 people.

The lift tower in one of the blocks in the Kwai Shing estate at Tsuen Wan.

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Tenant (Consolidation) Ordinance, which generally requires landlords seeking posses- sion to give six months' notice of termination.

       The first comprehensive legislation affecting post-war domestic premises was the Rent Increases (Domestic Premises) Control Ordinance 1963, which was enacted primarily to control increases in rents and provided a measure of security of tenure. With an increase in the supply of newly completed buildings from 1963 to 1966, the housing position eased and rents stabilised. As a result, this ordinance was allowed to expire in June 1966. For the next three years the situation remained fairly quiet but, with a return of confidence following the disturbances in 1967 and a continuing demand for accommodation, rents by the end of 1969 had taken a sharp upward

turn.

While the situation was being considered, a temporary measure was enacted in January 1970 to 'freeze' rents. This was closely followed in June by the Rent Increases (Domestic Premises) Control Ordinance 1970, since re-enacted as Part II of the Land- lord and Tenant (Consolidation) Ordinance. This ordinance, which followed closely the provisions of the 1963 ordinance, contained a number of exclusions. In particular, larger flats and houses, fresh lettings, and lettings in newly constructed buildings were not controlled. The ordinance was due to expire at the end of May 1974 but because of the continuing upward trend in rents for uncontrolled accommodation it became necessary, in June 1973, to enact further temporary legislation to extend controls to unprotected domestic tenancies. In December 1973, the 1970 legislation and the temporary ordinance were repealed and replaced by a revised Part II to the Landlord and Tenant (Consolidation) Ordinance.

This legislation, and its subsequent amendments, provides security of tenure and controls increases in rents for the vast majority of tenants and sub-tenants in post- war domestic premises in the private sector. It does not, however, apply to tenancies in buildings certified for occupation after December 14, 1973. Tenancies held in the names of public bodies, corporations, foreign or Commonwealth governments, partnerships or firms are also excluded, as are tenancies entered into after December 31, 1975 for a term of three years or more. This legislation, which was due to expire on December 14, 1976, has been extended up to December 14, 1979.

In respect of existing tenancies, landlords and tenants are free to agree an increase in rent but such agreements must be endorsed by the Commissioner of Rating and Valuation. Where an increase is not agreed, the landlord may apply to the Commis- sioner for his certificate of what increase may be made to the current rent. The amount of this increase is arrived at by taking the difference between the fair market rent, as determined by the Commissioner, and the current rent and dividing by four (five prior to 1976). This is subject to a maximum increase of 21 per cent of the current rent if the rateable value of the premises is $30,000 or less. However, the factor is variable and can be altered by resolution of the Legislative Council to suit a changing rental situation. Increased rates charges may be passed on to tenants and sub-tenants. Where the landlord incurs expenditure of $5,000 or more on improvements the rent may be increased by 20 per cent per annum of the amount expended.

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Where premises become vacant and the landlord wishes to let to a new tenant, the parties are free to agree the rent payable but have to inform the Commissioner. He has wide powers under the ordinance and also issues certificates to assist in dis- putes as to the primary user of premises. Where landlords or tenants are dissatisfied with the increase of rent certified, there is a right of review by an independent Rent Tribunal and also of appeal to the District Court.

All new housing completed between December 15, 1973 and December 31, 1978 enjoys five years of freedom from any new or extended rent controls from the date of the occupation permit. It is the aim of the government, in giving this important concession, to encourage new housing development in the private sector to meet the current shortage of domestic accommodation.

Land

       All land in Hong Kong is owned by the Crown, which sells or grants leasehold interests. In the early days of Hong Kong, Crown leases were for terms of 75,

99 or 999 years. They have now been standardised in the urban areas of Hong Kong and Kowloon to a term of 75 years, usually renewable for a further 75 years at a reassessed Crown rent under the provisions of the Crown Leases Ordinance. Crown leases for land in the New Territories and New Kowloon are normally sold for the residue of a term of 99 years less the last three days as from July 1, 1898, and so terminate three days before the expiry of the lease from China.

      The government's basic policy is to sell land to the highest bidder at public auctions. The majority of land available to the general public for commercial, indus- trial or residential development is sold in this way. Regular land auctions are held by the government and a provisional sales forecast is published twice a year, listing the Crown land which will become available during the following six months. Leases for certain special purposes are offered for sale by public tender.

      In addition the government-by way of private treaty-grants land for capital- intensive industries which in the opinion of the government are beneficial to Hong Kong and require large tracts of land. Land is also granted by private treaty to non- profit-making bodies for purposes such as schools and hospitals.

       Land administration of Hong Kong Island, Kowloon and New Kowloon is the responsibility of the Director of Public Works. He is also the Building Authority and chairman of the Town Planning Board. The Secretary for the New Territories is re- sponsible for land administration in the New Territories apart from New Kowloon.

       Premium for commercial and residential sites is usually payable shortly after the date of sale, but where the premium exceeds $10 million it may be paid by 10 equal annual instalments bearing interest at 10 per cent per annum. Premium for industrial sites, irrespective of the amount of premium, can be paid either by four equal instalments over two years without interest or by paying 10 per cent of the premium soon after the auction and the remaining 90 per cent by 10 equal annual instalments bearing interest at five per cent per annum.

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In April 1976, tenders by way of premium were invited for the grant of a lease of 4.348 hectares of foreshore and sea bed on the northwestern coast of Yuen Chau Kok, Sha Tin, for commercial and residential development. The successful tenderer is required to reclaim an area of 8.094 hectares, of which 4.348 hectares will be permitted for development while the remainder is required to be handed back to the government upon completion of reclamation and construction of roads and a sea- wall. The development is expected to accommodate about 10,000 people.

A lease was granted in September for the development of 61.3 hectares of land at Discovery Bay on Lantau Island for the development of a self-contained leisure and resort complex. Club houses, hotels and a public golf course will be provided within the complex, which will have its own reservoir, salt and fresh water storage and treatment plant, sewage treatment plant, refuse disposal plant and ferry pier. The whole scheme will take about 10 years to complete.

       Priority has been given to the development of the first stage of the industrial estate at Tai Po. The estate will provide industrial land for low density/capital- intensive development. This project involves the reclamation of about 110 hectares of foreshore and sea bed at Tai Po Hoi, Tolo Harbour. The estate itself will cover a gross area of 76 hectares of land and it will be developed in two stages. Stage I will provide a gross area of 24.3 hectares of formed land and it is scheduled to be completed by 1978. As reclamation proceeds, sites should become available progressively from early 1977. It is estimated that the whole project will be completed by December 1980.

During the financial year 1975-6 revenue from land transactions in the urban area was $88 million, compared with $157.7 million the previous year. In spite of the drop in revenue from land transactions, the demand for temporary occupation of Crown land continued strongly. Generally, such land was offered by way of a short term tenancy. During 1975-6 revenue from this type of short term land holding was $11.5 million in the urban areas and $18.7 million in the New Territories.

       Another source of revenue is from letting of buildings owned wholly or partly by the government. During 1975-6 this provided a revenue of $9.7 million.

The government is continuing its policy of fencing vacant sites which have been cleared, and installing security guards. This has reduced problems of site clearance and interference with the regular Crown land sales programme. The Director of Public Works and the Secretary for the New Territories also have powers to combat unlawful occupation of Crown land and to enable clearance to be effected more quickly, usually without litigation.

       Arrangements were made during the year for the handing over to the govern- ment of certain areas of land previously used by the United Kingdom Ministry of Defence. They were: 7.64 acres comprising part of Dodwell's Ridge Camp, to be used temporarily as an extension to the Police Cadet School; 29 acres at Sai Kung Camp, which in July became an outdoor recreation centre run by the Recreation and Sport Service; and 5.05 acres forming part of Sham Shui Po Camp.

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Renewal of Crown Leases

HOUSING AND LAND

Since December 14, 1973, all renewable Crown leases which have expired are deemed to have been renewed on expiry under the Crown Leases Ordinance-except for certain leases in the New Territories which are renewed under the New Territories (Renewable Crown Leases) Ordinance without increase of Crown rent. Aside from the exceptions, the new Crown rent on renewal is an amount equal to three per cent of the rateable value of the property. In the case of a lot in flatted development, the owner of each flat in the building pays three per cent of the rateable value of his flat and is not concerned with the payment of the remainder of the new rent of the prop- erty. On redevelopment of the property, the new Crown rent is an amount equal to three per cent of the rateable value of the lot as redeveloped, provided this is higher than the previous old Crown rent. The total revenue from the collection of Crown rent during the financial year 1975-6 was $16 million.

Re-grant of Non-Renewable Crown Leases

When a non-renewable 75-year Crown lease is due to expire and the land is not required for public purposes, a new Crown lease for a similar term and on modern special conditions is normally granted to the existing Crown lessee at a premium which represents the full market value of the vacant land. Subject to certain provisions, the premium may be payable by up to 21 annual instalments with interest at 10 per cent per annum,

Where a property is in multiple ownership, a new Crown lease may be granted either by normal re-grant-in which case it is necessary for each and every owner collectively to agree the re-grant premium-or by means of a grant from the Crown to the Colonial Treasurer Incorporated. This method has been devised to cover cases where the owners are collectively unable to agree to the terms of the re-grant. On being granted a new Crown lease, the Colonial Treasurer Incorporated assigns the undivided shares among the respective former owners with the premium apportioned on a pro rata basis. If any owner does not accept the terms offered, the Colonial Treasurer Incorporated takes possession of the unit concerned with a view to selling the unit by public auction.

As a result of the statutory control of domestic rents and the sharp rise in land prices in 1972-3, domestic rental incomes have in most cases proved to be unable to cover the annual instalments of re-grant premium assessed on land value prevailing at the time of expiry of the original lease. The government therefore decided in Septem- ber 1975 that for a temporary period the actual annual amount payable would be approximately 70 per cent of the net annual income arising out of the property concerned. The normal re-grant premium instalment will become payable upon the expiration of this period, the duration of which will be reviewed in 1978.

Land Office

The issue, renewal, variation and termination of Crown leases is dealt with by the Land Office, which is a branch of the Registrar General's Department. Records of transactions relating to land on Hong Kong Island, in Kowloon, in New Kowloon

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(with a few exceptions) and in the more urban parts of the New Territories are kept in the Land Office. Records relating to transactions affecting the other parts of the New Territories and the few exceptional New Kowloon cases are kept at district land offices forming part of the New Territories Administration.

        The Land Office has responsibility for the registration of all instruments affecting land; the settling and registration of conditions of sale, grant and exchange of Crown land; and the granting of mining leases. It gives legal and other advice to the government generally on matters relating to land.

        The Land Office has since early 1975 assumed responsibilities in connection with the enforcement of covenants contained in Crown leases. Assistant registrars inspect certain classes of buildings from time to time, and if breaches are discovered steps are taken to ensure that they are rectified or the lease is modified, usually on payment of a premium.

        The Land Registration Ordinance provides that all instruments registered under it shall have priority according to their respective dates of registration. It also provides that unregistered instruments, other than bona fide leases at rack rent for any term not exceeding three years, shall be null and void as against any subsequent bona fide purchaser or mortgagee for valuable consideration. Registration is therefore essential to the protection of title, but does not guarantee it.

        The number of instruments registered in the Land Office rose during the year by 20.4 per cent, bringing the total to 110,936 as compared with 92,138 in 1975. More detailed statistics and comparisons with previous years are contained in Appendix 29. At the end of the year, the card index of property owners contained the names of 299,476 people, an increase of 20,411 over the previous year. Some own several properties, but most are owners or part owners of small individual flats.

Urban Renewal and Environmental Improvement

       In the Urban Renewal Pilot Scheme area, nearly 50 properties were acquired by negotiation or resumption during the year. This almost completes the property acquisition programme of the scheme. The construction of a new road linking Holly- wood Road and Queen's Road Central began in March and is expected to be com- pleted in late 1977. Four sites in the pilot scheme area were sold during the year, realising a total of $25.8 million. A programme was drawn up to complete the clearance and demolition of properties and the associated rehousing of occupants to enable further public works and land sales to take place early in 1977.

       Acquisition of land for open space and for government, institutional and com- munity facilities continued in the densely populated areas of Western, Wan Chai and Yau Ma Tei. There were 18 properties acquired by agreement at a cost of some $5.4 million from funds allocated in the financial year 1975-6. In addition, 21 properties were resumed at an estimated total compensation of about $2.65 million. There were 12 properties resumed for a new market in Wan Chai at a cost of nearly $10 million. Other areas for open space and for government facilities will be acquired in the near future as a result of permission granted by the Town Planning Board.

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Acquisition for Public Purposes

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For the implementation of public works projects, acquisition of private prop- erties is sometimes unavoidable. As a rule, surrenders of these private properties are negotiated, although the Crown Lands Resumption Ordinance provides powers of compulsory acquisition for a public purpose. Disagreements on compensation payable are referred for adjudication to the Lands Tribunal, established under the provisions of the Lands Tribunal Ordinance. During the financial year 1975-6 a total of $13 million was paid in compensation.

The Mass Transit (Land Resumption and Related Provisions) Ordinance, enacted at the end of 1974 to meet the special land acquisition needs of the mass transit railway, also allows claims to be adjudicated by the Lands Tribunal.

To carry out land and property valuations and estate management services in Hong Kong and Kowloon, the Crown Lands and Survey Office of the Public Works Department maintains land and valuation branches staffed by professional officers. A records section, recording and analysing all sales and lettings in the urban area, provides monitoring of market trends and factors affecting the value of land and buildings.

Survey

The survey branch of the Crown Lands and Survey Office is responsible for providing a network of trigonometrical stations and bench marks upon which all land and engineering surveys are based, and for the mapping of Hong Kong and the delineation and physical marking of boundaries of lots.

The new photogrammetric unit became operational early in 1976 and a large volume of urgent mapping work arranged in a priority schedule is now in hand. In order to meet the demand, the unit is working on two shifts.

Partial re-observation and re-adjustment of the main and minor triangulation system was completed during the year. Connection of the existing traverse system to the revalued trigonometrical stations was put in hand, as was a programme of levelling to connect bench marks and trigonometrical stations.

The demand for boundary surveys continued and conversion to the metric system for survey was completed. All plans were supplied in metric units unless specifically requested in Imperial units. The option of requesting plans in Imperial units ceased at the end of the year.

On the map production side, further progress was made in converting topogra- phic series to metric specifications. There are 12 sheets of the 1:20 000 scale series now available, marking the near completion of this 15-sheet series. Completed during the year was the 'Hong Kong and Islands' volume of the official bilingual guide book. Production of the second volume-'Kowloon and the New Territories'- which will complete the set, is well advanced. The third sheet of the 'Countryside' series-Lantau and Islands-sold out rapidly and a reprint was made.

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       The production of basic maps at the metric scale of 1:1 000 continued during the year as part of the gradual phasing out of the Imperial scale series at 1:600 and 1:1 200. Revision at 1:1 000 scale was required for those areas covered during the past two years at that scale, while areas with basic mapping still at 1:600 scale and 1:1 200 scale also required revision and updating at those scales. The introduction of large scale basic maps at the metric scale of 1:1 000 is to be given priority treatment, but production will be slow and it is estimated that it will possibly take 10 years to complete full coverage of the territory.

       The Public Works Department's Survey School provides training for both the survey and cartographic disciplines within the department as well as specialist courses for other departments. During the year 232 officers attended various courses, with 63 officers sitting departmental examinations organised by the school.

9

Social Welfare

A REVIEW of social welfare payments and services was begun during the year to make sure that adequate provision is made for all vulnerable groups within the community.

Meanwhile, to remedy a shortcoming which made itself felt during the recent worldwide recession, the Governor announced plans to extend the public assistance scheme to able-bodied people between 15 and 55 who through no fault of their own are unable to support themselves. This is to come into effect in the 1977-8 financial year, subject to satisfactory arrangements being made to prevent abuse. So far there has been little abuse of the public assistance scheme.

A programme plan covering services to the handicapped was produced in 1976 and other plans on services for the elderly and the young are being prepared. Once these plans and the general review are completed, the government intends to produce an amended and more comprehensive social welfare programme.

Despite the need to observe financial restraint for much of the year, a substantial number of projects were carried out. These included the inauguration of further play leadership schemes, the establishment of a drop-in centre and a new home for the aged, the expansion of two other old people's homes, the completion of an additional community centre, and the establishment of five day care centres, four children's centres and four youth centres. An important landmark was the implementation of the Child Care Centres Ordinance, which provides for the registration and inspection of child care centres to ensure that certain prescribed minimum standards are observed and that the children in these centres are cared for properly.

       On all matters of social welfare policy, including that of subvention to the voluntary agencies and grants from the Lotteries Fund, the government is advised by the Social Welfare Advisory Committee. This committee is appointed by the Governor and consists mainly of members of the public who are active in community affairs. The Director of Social Welfare is the chairman.

Responsibility for implementing government policy rests with the Social Welfare Department, which operates basically through five divisions. These are: the group and community work division, which aims at the development of social responsibility and coherent community groups; the family services division, which is responsible for a wide range of services designed to help individual families and family members; the rehabilitation division, which is concerned with the provision of services for the disabled; the probation and corrections division, which provides social services for the courts and operates correctional institutions for young offenders; and the social security division, which is responsible for the administration of public assistance and other social security schemes. These divisions are further supported by a number of

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sub-divisions and units which deal with training, planning and development, research and evaluation, and public relations.

       A significant role in the provision of social welfare services is also played by voluntary agencies. The majority of these are affiliated to the Hong Kong Council of Social Service (see Appendix 43A), and many are assisted by annual subvention from the government. With the dwindling flow of aid from overseas, the voluntary sector has become increasingly dependent on this assistance and on help from charitable funds and donations within Hong Kong. The Community Chest of Hong Kong, to which some 60 welfare bodies belong (see Appendix 43B), represents an endeavour by these organisations to co-ordinate their local fund-raising activities.

       In the financial year 1975-6, overall government expenditure on social welfare increased by some 38.6 per cent to a total of $294.8 million. A further sum of $5 million was provided from the Lotteries Fund in loans and capital grants.

Group and Community Work

       Group and community work is designed to foster a sense of individual and collec- tive responsibility. Individuals are brought together and assisted to form groups, and these groups are encouraged to develop a sense of good fellowship and to work for the betterment of the community. The aim is to improve the quality of life and develop a more cohesive, harmonious and stable society.

The group and community work division of the Social Welfare Department operates through a network of community centres, community welfare buildings and community halls. These bring neighbourhood welfare services conveniently together under one roof and offer facilities such as libraries, day nurseries, vocational training classes, clubs for different interests and age groups, family counselling and other services. In addition, special programmes are arranged for young people in parks and playgrounds. The division is represented in the field by community and youth officers whose responsibilities are to stimulate and co-ordinate the development of community and youth services within their districts. The division maintains a rural mobile service unit which provides library, social and recreational services to people in remote and isolated villages. It also has two youth hostels for campers.

A substantial contribution towards the provision of recreational and social services for young people is made by voluntary agencies such as the Hong Kong Christian Service, Caritas, the YMCA and YWCA, the Hong Kong Federation of Youth Groups, the Boys' and Girls' Clubs Association, the Hong Kong Playgrounds Association and many others. These agencies are particularly active in the organisa- tion of youth and children's centres, and also play an important role in play leader- ship programmes, in arranging detached work for young people, and in providing counselling services for youth.

Family Welfare Services

Broadly speaking, the family welfare services are intended to promote the welfare of families and individual family members, with particular reference to women and children.

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The services are provided on a regional basis and administered by the family services division. They include counselling on problems of family and inter-personal relationships, on the treatment of children, and on difficulties arising from mental and physical disability, unemployment, illness, and sudden loss of the family breadwinner. The division also effects referrals for schooling, employment, financial assistance and medical treatment, and it arranges for the placement in appropriate institutions of children in need of care, unmarried mothers, the aged and the infirm. In 1976, a total of 22,225 families and individuals availed themselves of these services. School social work is another of the division's activities, and it also has responsibility for the co- ordination of family life education, the preliminary processing of adoption papers, the registration and inspection of child care centres, and liaison with voluntary agency institutions to ensure they observe reasonable standards.

The division exercises certain of the Social Welfare Department's statutory responsibilities in terms of the Protection of Women and Juveniles Ordinance, the Adoption Ordinance and the Child Care Centres Ordinance. These responsibilities include the assumption of guardianship of children found abandoned or found to be in moral or physical danger, and the conducting of social and other enquiries in rela- tion to applications for adoption prior to their consideration by the High Court. In the case of applications from overseas families for the adoption of local children, the enquiries are conducted with the aid of two voluntary organisations-Caritas and the International Social Service. A total of 375 local adoptions and 17 overseas adop- tions were finalised during the year.

For abandoned and lost children, or those found wandering or in need of protection, the division maintains a reception centre where they may be provided with immediate temporary care and attention.

Many varied services are provided by the voluntary agencies. These include family and marriage counselling, the operation of child care centres, the provision of a home-help service, and the maintenance of homes and institutions for children and young people with behavioural problems.

Rehabilitation

With the object of assisting the disabled to become independent and contributing members of society, rehabilitation services are provided at 18 centres and institutions and are augmented by the work of many voluntary agencies. These centres and institutions are administered by the rehabilitation division of the Social Welfare Department, and a number of them offer residential care facilities for the more. severely handicapped. In 1976, vocational training and/or sheltered work was provided by the division to a daily average of some 1,500 disabled people. In addition, 1,400 people received braille and mobility training, audiometric testing, auditory training, vocational guidance and employment placement assistance throughout the year.

The division is also responsible for the co-ordination of welfare services for the elderly, which entails liaison with 28 residential care establishments catering for some 3,400 old people. In terms of the public assistance scheme, indigent old people are eligible for a monthly grant to meet the fees of these establishments and to cover other

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petty expenses. Government subvention is also made available to 12 of the establish- ments and to two voluntary organisations providing home-help for the elderly in their own homes. At the end of the year, nine new residential establishments for the elderly were in various stages of planning and development to provide a further 1,400 places by 1978-9.

        In the voluntary sector, training facilities for the mentally retarded were con- siderably increased with the expansion of the Chai Wan Morninglight Centre and the Pine Hill Training Centre run by the Hong Kong Association for Mentally Handicap- ped Children and Young Persons, and with the opening of the association's advanced training centre and the Po Leung Kuk's Ko Chiu Road Centre. Two further recrea- tion centres were established-one for mentally retarded adults by the Action Group for Aid to the Mentally Retarded, and another for the deaf by the Hong Kong Society for the Deaf. Also during the year, the Hong Kong Physically Handicapped and Able-bodied Association opened eight clubs and one activities centre for the physically disabled.

        Recommendations for the future development of rehabilitation services are con- tained in a Green Paper published in October (see Chapter 7).

Probation and Correction

        The probation and corrections division of the Social Welfare Department is responsible for the supervision of offenders placed on probation, the operation of correctional institutions, and for conducting such social enquiries as may be directed by the courts for the purpose of determining and reviewing sentences or in connec- tion with petitions for clemency. It has a staff of probation officers deployed through- out Hong Kong on attachment to the courts. Their duties, in addition to that of supervision, include the individual and group counselling of probationers, arranging for their voluntary participation in community service projects, and organising educa- tional, social and recreational activities for them.

In 1976 a total of 7,627 social enquiries were carried out by the division and, at December 31, there were 3,085 offenders under probation supervision.

       Five correctional institutions for boys and girls of different age groups are operated by the division. These are the O Pui Shan and Castle Peak homes, which are reformatory schools for boys; the Begonia Road Boys' Home, which is a com- bination of a remand home, probation home and place of refuge; the Ma Tau Wai Home, which provides similar facilities for girls; and the Kwun Tong Hostel, which is for youths between the ages of 16 and 21 who are on probation and who, as a special condition imposed by the courts, are required to reside under supervision for a period not exceeding one year. The total capacity of these institutions is 590. For offenders released on licence, the division provides an aftercare service to bridge the gap between life in a reformatory school and in the community.

Among the voluntary agencies which help to prevent the spread of juvenile delinquency are the Hong Kong Juvenile Care Centre and the Society of Boys' Centres, which extend care and residential training to children from broken homes with behavioural and other problems.

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Social Security

SOCIAL WELFARE

       Social security is provided on the basis of three schemes-the public assistance scheme, the disability and infirmity allowance scheme, and the criminal and law enforcement injuries compensation scheme. All three are administered by the Social Welfare Department's social security division.

The public assistance scheme is means-tested but non-contributory. It is designed to provide cash assistance to needy individuals and to families whose incomes fall below a prescribed level. The benefits are regularly reviewed and adjusted as neces- sary in relation to the cost of living. They currently stand at $180 a month for a single person or, in the case of a family, at $130 for each of the first three members, $105 for the succeeding three and $80 for every additional member thereafter. A rent allowance is paid separately, and special additions to the basic benefit are granted in appropriate cases to cover the cost of nursery and school fees, special diets and other essential expenses.

       In September the rent allowances provided in terms of the scheme were reviewed and substantially increased. The allowance for a single person went up from $41 to $63 a month. Allowances for families were increased according to the size of the family, with an increase from $82 to $190 for a family of two or three people and, at the other end of the scale, an increase from $176 to $557 a month for a family of 10 or more eligible members.

       At the end of 1976, the number of active public assistance cases totalled 49,899 as compared with 55,620 at the end of the previous year. This decrease is attributable largely to the upturn in the economy. Expenditure on public assistance in the financial year 1975-6 totalled $163.3 million as compared with $109.9 million in 1974-5.

       The disability and infirmity allowance scheme caters for two vulnerable groups in the community-the severely disabled and the elderly infirm (aged 75 and over) who are not in residential care institutions. The scheme provides for a non-con- tributory non-means-tested allowance in addition to any entitlement to public assist- ance. The current disability allowance is $180 month and the allowance for the infirm is $90 a month. These allowances are regularly reviewed in line with public assistance. The number of people receiving the allowances at the end of the year was 70,330 as compared with 64,599 at the end of the previous year. In the financial year 1975-6, expenditure in terms of the scheme amounted to $78.2 million as com- pared with $61.2 million in the previous year.

The criminal and law enforcement injuries compensation scheme is designed to assist victims of crimes of violence and people who are accidentally injured or disabled by law enforcement officers in the execution of their duties. The scheme provides for the award of compensation on a non-means-tested non-contributory basis, the amount being determined by a board whose members are appointed by the Governor. In 1976 a total of 674 awards were made. Expenditure on payments in the financial year 1975-6 amounted to $1.6 million as compared with $1.1 million in the previous year.

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       The emergency relief scheme provides for the victims of natural disasters by the supply of hot meals, milk powder for infants, and other basic essentials such as blankets, ground mats and eating utensils. Assistance in cash is also granted to cover the burial costs of victims, to help meet resettlement expenses, to compensate for the loss of family support, and to cover damage to vessels, housing and crops. In the financial year 1975-6, payments made from the Emergency Relief Fund amounted to $1.4 million.

In February, some 3,200 people were made homeless when fire swept through the old squatter area at Aldrich Bay on Hong Kong Island. Emergency relief was immediately provided and it continued until the victims had been resettled. In addi- tion, members of the public donated nearly $1.3 million for distribution to the victims.

In 1976 some 12,939 people were affected by 87 disasters. They included a number of less serious fires, landslides and a degree of flooding.

Training of Social Workers

Social work training is available in Hong Kong at degree, diploma and certificate level. The Institute for Social Work Training offers a certificate course for people who do not plan to enrol at university but are either already employed or wish to make a career in social work. Since 1973 a total of 129 certificated social workers have graduated from the institute, which currently has an enrolment of 115 students. A diploma course in social work is offered by the Hong Kong Baptist College and the Hong Kong Shue Yan College, and there are degree courses at the two universities.

The in-service training of social workers, including the provision of refresher courses, is undertaken on behalf of both the government and the voluntary sector by the Social Welfare Department's training section. A total of 29 courses, seminars and workshops were conducted during the year. The training section operates a demonstra- tion nursery providing day care for 80-100 children which serves as a training ground for nursery workers.

To help young people who wish to obtain social work training, a number of bursaries and scholarships are available from the Social Work Training Fund, the Hongkong and Shanghai Banking Corporation, the government, and from private donations.

Planning

The expansion and improvement of social welfare services is in accordance with a five-year plan which was approved by the Legislative Council in 1973. As part of the development process, this plan is reviewed annually in conjunction with the Hong Kong Council of Social Service to ensure that its provisions remain relevant, timely and within the capacity of available resources. At the same time the plan is also extended in the course of each review by one year so as to maintain a continuous five-year planning cycle.

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      In 1976 a major review was undertaken to see what changes might be necessary in order to make sure that the social welfare programme provides a complete safety net for all vunerable groups in the community. From this review it is planned to produce a more comprehensive programme by the end of 1977 and, subject to the approval of the Legislative Council, to put it into effect in 1978.

Research and Evaluation

For planning purposes, several studies were conducted during the year by the Social Welfare Department's research and evaluation unit on the likely demand for certain types of services. They investigated potential demand for disability and in- firmity allowances, the number of students in Hong Kong and the extent to which they might be expected to make use of study rooms in congested areas, the housing needs of the elderly, and several other fields of potential need.

In the voluntary sector, some preliminary consideration was given to the pos- sibility of computerising basic data on welfare services and standardising the classifica- tion of service programmes both for greater efficiency and ease of reference.

Community Advice Bureau

      Advice and help for newcomers to Hong Kong is offered by the Community Advice Bureau, a voluntary body which tailors its services to meet the particular needs of English-speaking new arrivals. These include a large number of Indians, Pakistanis and other nationalities as well as British, Australians, New Zealanders and Americans.

The bureau was set up in late 1974 and it now operates five days a week through- out the year from an office near St John's Cathedral. It provides a wide range of information and help to newcomers and runs a 'Discovering Hong Kong' course for them. During 1976 the bureau helped some 2,250 people-a third more than in its first year of operation. Services are to be expanded in view of the proven need.

10

+

Public, Order

WITH the Royal Hong Kong Police Force now having more manpower than ever before, 1976 saw a drop in crimes of violence while an increased number of other types of crime were detected or prevented.

        The police are mainly responsible for the maintenance of public order, but equally important contributions towards the safety and wellbeing of the community are also made by the fire and ambulance services, the Prisons Department, the Preven- tive Service officers who deal with smuggling and illicit drug trafficking, and the Independent Commission Against Corruption. All help to preserve a standard of order which enables more than four million people to live together in such a relatively small space.

Police

       A successful recruitment campaign launched in May resulted in the police force achieving a strength of 16,234 disciplined personnel and 3,067 civilian officers-the greatest number so far in the development of the force. The increased manpower assisted in the restructuring and reinforcement of the Criminal Investigation Depart- ment and the provision of more neighbourhood police units and reporting centres in the urban areas.

       Towards the end of the year, the force began using its new command and control system-the most modern and effective police radio system available. It is based on a radio network which, when it is fully operational in 1977, will provide some 1,600 beat patrol personnel with personal radios.

       Public requests for police assistance throughout the year totalled 222,723-an average of 610 a day. This is an increase of 8.3 per cent over 1975. About 17 per cent of the requests were connected with crime, reflecting the improved reporting facilities and procedures now available.

Crime

       The number of reported crimes of violence in 1976, excluding multiple charges of blackmail, decreased by 10.8 per cent compared with the previous year. There were 16,436 cases a drop of 1,987. Contributing to this decrease was a 20 per cent fall in robberies-from 11,120 cases to 8,895.

       Conversely, the number of reported crimes entailing police preventive action-- crimes such as being equipped for stealing, loitering, or possessing offensive weapons --and also crimes of extortion and narcotics trafficking increased significantly as a result of greater police action in these fields. There were 9,197 charges of blackmail

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with its associated thefts (4,470 in 1975); 2,717 cases of drug trafficking (1,621); and 8,479 cases involving preventive crime (7,541).

The increases in these three categories contributed largely to the greater overall number of crimes reported to the police. They totalled 62,009-an increase of 5,489 cases or 9.7 per cent on the 1975 figure. Discounting the increases in the three categories, the remaining overall crime rate fell 3.0 per cent below the level recorded in 1975.

As well as violent crime, other crime categories which decreased included snatch- ing, 541 (638); burglaries, 5,665 (6,368); and taking a conveyance without authority, 1,459 (2,001). Other crimes which increased were sexual offences, 1,552 (1,477); miscel- laneous thefts, 13,167 (9,653); criminal intimidation, 815 (545); frauds, 2,412 (2,098); and criminal damage to property, 1,375 (1,116).

The overall crime detection rate was 59.7 per cent, compared with 49.4 per cent the previous year.

During 1976 a total of 23,485 people were arrested-an increase of 2,227 on the 1975 figure. The number of adults prosecuted increased by 10.6 per cent to 21,918 and prosecutions against juveniles (under 16 years) rose by 9.4 per cent to 1,567.

Triad Type Crime

The strength of the Triad Society Bureau was increased during the year from 108 to 216 police officers and civilian staff. This build-up is aimed at providing adequate intelligence and operational capabilities to counteract gang and thug elements.

In August the bureau produced a detailed report on the scope and scale of activities involving triad type elements. The report-distributed to all police forma- tions-serves as a supplement to a 1974 paper on triad societies in Hong Kong.

       In conjunction with police districts and divisions, the bureau continued to take action against triad elements, particularly those engaged in organised crime. There were 3,054 people arrested for triad-related offences. In addition, raids on illegal gambling establishments resulted in the arrest of 42,088 people and the seizure of $1.6 million in cash. A further 4,306 people were charged with prostitution and allied offences.

Special Crime Squad

During the first quarter of the year the Special Crime Squad prepared and presented cases against seven people arrested in connection with the $7.2 million Hang Seng Bank cash-in-transit robbery. The case, heard in the High Court, resulted in five of the accused each being imprisoned for 25 years. Of the remaining two accused, one received a six-year sentence for handling stolen property and the other was acquitted.

In August the strength of the squad was increased to provide an improved intelligence gathering capability and to allow its operation wing to concentrate more fully on bank and goldsmith robberies and on other cases involving the use of fire- arms. In 1976 the squad solved 31 serious crimes, arrested 33 people-against whom 39 charges were preferred-and seized 11 firearms, including imitation firearms.

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Homicide Squad

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       The Homicide Squad investigates homicide cases of a protracted and complicated nature. Significant cases handled during the year included the murder of a young girl whose body was found in a box in Happy Valley, and the Cactus Apartment murder and the subsequent Commission of Inquiry.

Commercial Crime Office

       The Commercial Crime Office continued its investigations into large-scale com- pany frauds which came to light following the 1972-3 stock market boom.

       The 18-month-long inquiry into the Paul Lee Engineering Company was com- pleted during the year and resulted in 10 former directors and executives of the company being charged with various offences under the Companies Ordinance and the Theft Ordinance. Three of the Paul Lee directors, including the managing director, were subsequently convicted.

        The Commercial Crime Office also conducted investigations involving four other public companies. A discernible trend in more sophisticated and international commercial frauds was noted, making close liaison with organisations such as In- terpol vital. Investigations took officers to several countries, including Iran, Indonesia, Korea, Singapore, the United States and Britain.

Narcotics Bureau

        The advantage gained by police following the elimination of major drug syndi- cates in 1974 and 1975 was further exploited during the year. There were substantial drug seizures and the Narcotics Bureau arrested 103 people engaged at the higher levels of the drug importing, manufacturing and distributing chains. The bureau's activities plus concerted police action at street level combined to create an atmosphere of unrest and distrust among traffickers.

        Police neutralised eight heroin refineries and seized 3 186 kilos of raw opium, 137 kilos of morphine, 20 kilos of heroin, four kilos of cannabis and three kilos of barbitone. In one case, police intercepted a junk that was attempting to transfer 1 482 kilos of raw opium and 110 kilos of morphine from an ocean-going fishing boat to a landing point on the Kowloon shoreline.

        Drug traffickers are constantly changing their methods of operation and tighten- ing security in an effort to avoid detection. These developments are being closely monitored to ensure that the police maintain their advantage.

Identification Bureau

       The Identification Bureau increased its capability during the year with the setting up of an additional scenes-of-crime team based at Kwai Chung police station. The team attends crime scenes between Sham Shui Po and Yuen Long.

        Identifications made by the scenes-of-crime section from fingerprints found at crime scenes increased steadily, although the 9,028 crime scenes attended were

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slightly less than those attended in the previous year. The 5,772 fingerprint impres- sions found resulted in 182 people being identified in connection with 265 crimes.

The bureau's main fingerprint collection section processed 48,387 arrest fingerprint forms during the year and identified 24,758 people as having previous convictions. The number of convicted people on record at the end of 1976 totalled 348,598.

       Staff attached to the photographic section attended 2,651 crime scenes and other incidents, and supplied a total of 255,528 photographs on police matters. The docu- ment examination section, which handled 61 cases and examined 129 documents, produced 21 positive findings.

Criminal Records Office

       The Criminal Records Office continued to work on projects stemming from last year's major reorganisation of the criminal records system. A significant outcome of this work was the computerisation of the Modus Operandi Index, which lists the methods habitual criminals use to commit crimes.

       Additions were also made to the extensive microfilming programme carried out last year. At December 31, details of 307,758 convicted people were held in microfilm form and a further 35,753 in hard jacket form. Details of 348,200 case paper files were also maintained on microfilm, with a further 80,000 in hard jacket form.

Communications

The Communications and Transport Branch plans, installs and maintains a sophisticated infrastructure made up of radio installations, a comprehensive computer- controlled teleprinter system, a telephone network, radar installations and a variety of specialised electronic equipment. It also manages a fleet of 1,152 vehicles compris- ing 19 different types and a driving school at which all police drivers are trained and tested. To carry out this wide range of activities, the branch has an establishment of 1,453. Of these, 1,249 are drivers while the remainder are engaged in the com- munications field.

       The radio network of the highly complex beat radio scheme was completed late in the year and is now in the course of commissioning. The computer-controlled command aspect is to be installed in 1977. The $30 million project calls for equipping each of 1,600 men on the beat with a personal radio. Through these radios, a patrol- ling police constable will be able to maintain contact with district and divisional controllers, as well as other men on duty in his particular area. The wide coverage offered by the radios will greatly improve the efficiency of the force and bring about an immediate response to any crime, incident or traffic problem. The radios are being phased into use in each of the three land districts.

       Another major project tackled by the branch during the year resulted in the commissioning of a special radio facility that provides rapid contact with Interna- tional Criminal Police Organisation (Interpol) stations throughout the world.

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       Motor vehicle registrations at the end of the year totalled 191,746, giving a traffic density of nearly 283 vehicles for each of the 678 miles of road in the territory. Although the opening in May of a new route to Kwun Tong helped ease congestion in eastern Kowloon, the overall traffic situation was aggravated to some degree by the introduction of major diversions to allow for work on the mass transit railway.

        Under the Fixed Penalty (Traffic Contraventions) Ordinance, selective action was continued against obstruction on main roads and indiscriminate roadside parking and stopping, particularly in areas affected by work on the underground railway. There were 589,678 fixed penalty tickets issued-22.3 per cent more than in the previous year. Action taken to recover unpaid fixed penalty debts resulted in the seizure of 53 vehicles, of which 50 were subsequently auctioned to meet the outstand- ing debts.

       The Fixed Penalty (Criminal Proceedings) Ordinance was introduced towards the end of the year in an effort to strengthen and expedite traffic law enforcement and to improve driving standards. Under the ordinance, police officers can issue fixed penalty tickets for fines ranging from $50 to $200 to motorists who commit any of the 74 offences listed. The procedure for paying these fixed fines is the same as for an ordinary parking ticket, so eliminating the time-consuming summons and court hearing system previously in use. The new fixed penalty scheme is being implemented in stages and is expected to become fully operational by the end of 1977.

       The Standing Conference on Road Safety continued to co-ordinate road safety activities, which included a one-month campaign in September built around the slogan 'One Accident Can Kill'. The campaign was aimed at three accident-prone groups ---public light bus drivers, elderly people and weekend cyclists.

        The Traffic Warden Corps, made up of 143 men and women, provides valuable assistance to the police. In addition to performing traffic control duties in busy areas throughout the year, the wardens issued 228,546 fixed penalty tickets-38.8 per cent of the overall total issued.

Marine Police

       The Marine District police maintain law and order in the main ports and 720 square miles of water within the 120-mile territorial boundary as well as policing 243 islands and isolated communities. Greater demands were placed on the marine police during 1976 as an increase in the number of privately-owned pleasure boats and improved ferry services brought previously inaccessible parts of the territory within the reach of more people.

        The Marine District has an establishment of 1,343 officers and a fleet of 47 launches. In addition to routine patrol work, the launches made 338 casualty evacua- tions from outlying islands to hospitals in the urban area during the year. There were 79 illegal immigrants arrested and processed by the marine CID compared with 120 in 1975.

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Crime is not a major problem in the Marine District, although the number of cases has increased in recent years. During 1976 there were 228 reported crimes, of which 108 were solved.

Community Relations

The police community relations officers scheme was expanded in 1976 to the extent that all major police divisions now have such officers. They concentrate on the establishment of close police liaison with the public, particularly with groups such as mutual aid committees and kaifong associations, in a common effort to counter crime. They are equally active in the educational and crime prevention fields, particularly with schools, youth organisations and recreational clubs.

In October the police stepped-up the use of television as a weapon in the fight against crime by introducing new versions of the weekly police report programme shown on all five TV channels. The programme is now designed to use television and viewers as a positive aid in helping to solve serious and difficult cases. The Cantonese versions of the programme have been extended from five to 15 minutes. They feature specific crimes in the hope that the reconstruction of a case, coupled with a dramatic appeal to an audience exceeding two million, will produce clues, information and other assistance.

The force's other major involvement in television, the programme 'Junior Police Call', forms the basis for a police-oriented youth club that in two and a half years has attracted 177,400 members. Each 15-minute segment of 'Junior Police Call' now serves as the focal point of a new 30-minute 'Youth Call' programme that made its debut on all three Chinese channels in June.

A young people's Help the Police Competition conducted during the year attracted the attention of 200,000 youngsters aged between nine and 16. The four outright winners fly to Australia early in 1977 to spend two weeks as guests of police forces in Sydney, Canberra, Melbourne and Adelaide.

Administration

The senior command structure at Police Headquarters was reorganised in May, creating a system of directorship in the fields of operations, personnel administration, civil support and criminal investigation under the day-to-day control of one Deputy Commissioner of Police responsible to the Commissioner of Police.

An overall review of establishment was instituted during the year to determine a realistic manpower requirement and to ensure that manpower is employed to the best advantage.

       A new police division was created to serve the rapidly expanding Kwai Chung area, and in the southern part of Hong Kong Island a southern sub-command was established. This latter area stretches from the Wah Fu public housing estate in the west to Big Wave Bay in the east and embraces the Aberdeen sub-division, the Stanley sub-division and the Shek O area. The area is also patrolled by the rural area patrol,

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a sub-unit of the Hong Kong Island Emergency Unit which was established mid- year with the task of preventing crime in recreational areas.

        The force establishment at the end of the year totalled 17,124 all ranks, an increase of 1,099 on the 1975 figure. Strength increased by 1,103 to a total of 16,234 at the end of the year-5.2 per cent short of the authorised establishment. The women police element of the force is set at a figure of 10 per cent of the overall establishment. During the year 29 women inspectors and 243 women constables were taken on strength, lifting the total complement of women officers to 1,540. The number of civilian staff employed by the force rose by 209 to 3,067.

The extensive recruitment campaign aimed at bringing the force to fully approved establishment resulted in 8,124 applications for constable appointments and 1,879 for local inspectorate appointments. During the year 211 inspectors, including 109 from overseas, were taken on strength-compared with 153 in 1975, 168 in 1974 and 111 in 1973. The number of constables taken on strength totalled 1,738, compared with 1,454 in 1975, 2,222 in 1974 and 1,320 in 1973. The educational standards of recruit constables continued to improve and of those appointed 1,213 had secondary education qualifications and a further 222 possessed the qualifications required for recruit inspectors.

Training

The Police Cadet School at Fan Gardens, Fanling, marked its third anniversary with the passing out of the second intake of cadets to complete two years' training. Of the 146 cadets who passed out, 115 went on to join the police force as constables. The remainder opted to join either the Preventive Service, the Fire Services Depart- ment or the Prisons Department.

As in previous years, a call for enrolments for the 1976 academic year met with considerable response. More than 2,700 applications were received for the 150 places available and the school continued to operate at its maximum capacity of 300 cadets.

       The school's Fanling accommodation is only temporary pending the building at Shuen Wan, near Plover Cove, of a permanent school to hold 1,200 cadets. As an intermediate measure, a second temporary school site at Dodwell's Ridge, near Fanling, is to be opened in 1977. This site, together with the Fan Gardens establish- ment, will raise the school's capacity to 600 cadets and the annual output to 300.

       The school provides a balanced syllabus of academic, physical and vocational training without charge for boys aged between 151⁄2 and 17 years. Books and stationery, accommodation, food, uniform and medical treatment are also provided free. A monthly allowance to cover out-of-pocket expenses is paid to cadets.

At the Police Training School at Aberdeen, a revised basic training syllabus which places greater emphasis on leadership and on-the-job training is proving popular with both recruit constables and recruit inspectors. The course covers 26 weeks for recruit constables and 28 weeks for recruit inspectors, plus eight weeks' Cantonese tuition for expatriate officers. In 1976 the school produced 1,303 constables and 131 inspectors. At December 31 there were 918 recruit constables and 138 recruit in- spectors still undergoing training.

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       In addition to basic training, the school provided in-service training courses for 809 officers during 1976. These courses are specially geared to bring serving con- stables, non-commissioned officers and inspectors up-to-date on laws and procedures and, where applicable, to develop leadership and management qualities.

The Criminal Investigation Department Training School held four 12-week courses at Aberdeen during the year. The 480 officers who attended ranged in rank from senior inspector to constable and included women. All were trained in the latest investigatory techniques. Since 1970 the school has instructed a total of 1,274 students, including officers from the Royal Brunei Police, the Philippines, the Immigration Department and the Preventive Service.

       At the Police Tactical Unit at Volunteer Slopes, Fanling, 1,344 men underwent attachments ranging from 30 to 33 weeks. The unit's primary role is to provide all police personnel with a thorough grounding in anti-riot and crowd control tech- niques, and to provide an immediate reserve of manpower for use in any emergency. Platoons of women police are also formed periodically for a one-week attachment, during which they are given basic instruction in crowd control.

       The Police Saracen Unit, which consists of 14 armoured personnel carriers, is also based at Volunteer Slopes.

The Marine Police Training School provides in-service training for personnel of the Marine District and for auxiliary police undertaking marine work. During the year 237 regular officers of all ranks and 44 auxiliaries completed courses on seaman- ship, engineering, wireless telegraphy and navigation. In addition, 20 officers attended specialised courses at the Hong Kong Polytechnic.

Auxiliary Police

The Royal Hong Kong Auxiliary Police Force is made up of 4,510 part-time men and women police. In 1976 an average of 922 officers each day of the year helped to support regular police engaged in beat and anti-crime patrol duties. Auxiliaries made many good arrests, which resulted in 16 officers receiving the Commandant's commendation.

All auxiliaries are required to undergo 14 days and 96 hours training a year. Seven of the training days are spent at an annual camp. Selected officers also attend training courses run by the regular force on such subjects as weapons, internal security, driving, adventure sports and command techniques.

Prisons Department

For the Prisons Department, 1976 was a year of increased activity and consolida- tion. It included the opening of the first maximum security correctional institution for young offenders, the introduction of an Outward Bound School type venture for young drug addicts, and the launching of a television series on the role the depart- ment is playing in support of law and order.

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        The Commissioner of Prisons is responsible for the overall administration of 16 penal institutions, a half-way house and a staff training institute.

Prisons

        Overcrowding remains a perennial problem in Hong Kong's prisons. Stanley Prison, the maximum security institution, was built on Hong Kong Island in 1937 to accommodate 1,537 prisoners. Almost from the start it has housed inmates well in excess of this figure, and in 1976 the average daily population was more than 2,314. Although a vital function of a maximum security prison is to protect the community from the more violent and dangerous criminal, the principal aim is that of correction and rehabilitation. For this reason, Stanley has a comprehensive industrial centre with large and well equipped workshops. Prison industries include tailoring, carpentry, shoemaking, silk-screening, fibreglass moulding and laundry work.

Victoria Reception Centre, situated in busy Central District, has approved accommodation for 442, but in 1976 the average daily population was 803. With the exception of people charged with very serious offences (who are remanded in Stanley Prison), Victoria Reception Centre receives all male offenders on remand and after sentencing. On admission, all prisoners undergo a thorough medical examination including an X-ray. Those who have been convicted attend a classification board to determine the type of institution to which they will be sent, taking into consideration physical fitness, security requirement, type of offence and previous criminal history.

        Stanley Prison and Victoria Reception Centre have for many years carried the brunt of the overcrowding problem, but it is hoped that the accommodation situation will improve in the near future with the completion of new institutions. Structural work has already begun on a new reception centre at Lai Chi Kok which is due for completion in late 1977. This centre will accommodate 960 remand and convicted prisoners, including those for whom the highest degree of security is necessary. Plans are also at an advanced stage for building a second maximum security prison to accommodate 400 prisoners on Lantau Island.

        There are three minimum security prisons which can together accommodate 1,456 prisoners. Chi Ma Wan Prison on Lantau Island caters mainly for first offenders serving sentences of under three years. The prisoners are employed on constructive projects such as afforestation, reclamation, draining, building and road works. The two other similar institutions are Pik Uk in the New Territories and Ma Hang near Stanley Prison. Pik Uk opened in January 1975 and it accommodates mainly recidi- vists serving sentences of under 18 months. Ma Hang features a geriatric wing for the more elderly prisoners serving terms of under three years. It also caters for prisoners who have less than 18 months to serve. These prisoners mainly carry out general maintenance work not only at Ma Hang but also outside Stanley Prison.

       Ma Po Ping Prison on Lantau Island was built in 1967 and was originally named Tong Fuk Prison. In 1972 its role was changed to that of a drug addiction treatment centre but in May 1975 it reverted back to a prison under its present name. The majority of the 604 inmates are employed inside the prison on carpentry, laundry

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work, tailoring, fibreglass moulding and making rattan furniture. Outside working parties are largely engaged in projects designed to benefit the local community.

       Siu Lam Psychiatric Centre in the New Territories can accommodate 120 inmates requiring psychiatric treatment under conditions of special security on account of their dangerous, violent and criminal tendencies. Prisoners in other penal institutions requiring psychiatric treatment are also referred to the centre on medical recommenda- tion. In addition, those remanded by the courts for psychiatric reports are sent to Siu Lam. The centre is equipped to the most modern standards and is manned by trained staff with two psychiatrists in attendance daily.

       With the exception of a number of high security risk women prisoners who are accommodated in a separate section of the Siu Lam Psychiatric Centre, all other female offenders are accommodated at the nearby Tai Lam Centre for Women. It serves as a conventional prison for remand and convicted prisoners, and also has separate sections providing a training centre for young offenders in the 14 to 21 age group and a treatment centre for female drug dependants.

       Chatham Road Centre in Kowloon is mainly for offenders remanded by the courts on minor charges. It is a minimum security institution which also caters for young and adult prisoners with less than a year to serve. In addition, the centre has a geriatric unit.

Training Centres

       In January 1976 the Pik Uk Correctional Institution-a maximum security facility in the New Territories-became operational with accommodation for 398 young offenders between the ages of 14 and 21. The institution has a dual function as a prison and a training centre for the more intractable delinquents. It also caters for young remand prisoners awaiting trial or those remanded by the courts for reports on suitability for training and detention centres.

       Besides the Pik Uk training centre, there are two training centres on Hong Kong Island. The one at Cape Collinson caters mainly for the 17-21 age group while that at Tai Tam Gap accommodates those between 14 and 17 years. These centres are run on highly disciplined lines and operate on a half-day school and half-day work basis. Inmates are taught a wide range of crafts, from tailoring and carpentry to building maintenance and automobile repair. Those committed to training centres have to serve a minimum of six months to a maximum of three years, at the discretion of the Commissioner of Prisons. No inmate is released until he has a job to go to or arrange- ments have been made to further his education. Release is followed by a compulsory period of three years' supervision under an aftercare officer.

Detention Centre

      The Sha Tsui Detention Centre on Lantau Island provides the courts with another alternative to imprisonment for delinquents aged between 14 and 21. This centre is intended for the first offender or those with a short criminal history. The emphasis at Sha Tsui is on strict discipline, hard work and few privileges. This centre

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     has been in operation for four years and the results are encouraging. A sentence in Sha Tsui runs from a minimum of one month to a maximum of six months depending on the inmate's progress. The period actually served is at the discretion of the Com- missioner. Release is followed by a compulsory period of six months' supervision under an aftercare officer.

Addiction Treatment Centres

       The Prisons Department has the reputation of running one of the world's best programmes for the treatment and rehabilitation of drug addicts. Its success in this field is unparalleled anywhere.

        Before the introduction of its addiction treatment centres- -a pioneering venture dating back to 1958-more than 90 per cent of those admitted into prisons were found to be drug dependants. This figure has now dropped to 47.17 per cent. The four centres run by the department provide the courts with an alternative to imprisonment for those found guilty of an offence linked to the use of drugs.

        The Tai Lam Addiction Treatment Centre, along with the Hei Ling Chau Centre on the island of the same name and the Tong Fuk Centre on Lantau Island, can accom- modate a total of 1,260 inmates--both male and female-at any one time. However, all female drug dependants are currently treated at the Tai Lam Centre for Women.

The treatment and rehabilitation programme in these centres is one of medical care followed by an active life with plenty of constructive work in an outdoor environ- ment. Results show that drug addicts can be restored to health quickly in this way, and once they have regained their strength they can tackle some of the hardest chores. During the year, inmates of the Tong Fuk Centre-which caters only for addicts under 25 years old-embarked on a venture requiring the energy and initiative nor- mally associated with Outward Bound School projects. They are converting and rebuilding a former leprosarium on a hill in a remote part of Hei Ling Chau Island into another proposed treatment centre. The hill-some distance from the existing Hei Ling Chau Centre-fringes a beach and at present there is no electricity and only a limited water supply. Food is brought from the existing centre to the inmates working on this project.

To help span the gap between the treatment centres and life in the community, the Prisons Department operates a half-way house named New Life House.

Prison Industries

Prison industries play an important role in the rehabilitation of prisoners. In 1976 about $12 million worth of manufactured items were produced as compared with $5 million worth in 1970. Plans for expanding the prison industries are in an advanced stage.

Aftercare

Aftercare is specifically provided under three relevant ordinances and is carried out by officers of the Prisons Department. It plays a crucial role in the rehabilitation of former inmates. Aftercare work starts soon after an inmate is admitted to a centre,

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when mutual trust and respect is fostered between the case worker and his client. An aftercare officer can, if necessary, make recommendations for the recall of an inmate for further training or treatment.

Staff

All newly recruited Prisons Department staff have to undergo a 12-month train- ing programme at the Staff Training Institute at Stanley and in the field. The training is comprehensive in theory and practice, and intermediate and advanced examinations are held.

Preventive Service

       The Hong Kong Preventive Service is a disciplined force of 1,121 officers under the control of the Director of Commerce and Industry in his capacity as Commis- sioner.

The service is responsible for the collection and protection of revenue derived from the four categories of commodities which are dutiable-alcoholic liquors, tobacco, methyl alcohol, and hydrocarbon oils used as fuel for motor vehicles and aircraft. Controls over the import, export, manufacture, sale and storage of these commodities throughout Hong Kong are imposed by the Dutiable Commodities Ordinance, which is administered by the service. The success of revenue protection operations is reflected in the increased revenue collected from dutiable commodities and the number of seizures made during the year. Some $558 million was collected in 1975-6 compared with $473 million in 1974-5. Seizures and confiscations involved two illicit stills, 591 litres of fermenting materials, 808 kilos of tobacco, 1 844 litres of liquor and 57 272 litres of diesel oil. A total of 600 people were arrested or sum- moned and fines of $171,985 were imposed by the courts.

      The service also has responsibilities for the prevention and suppression of illicit trafficking in narcotics and other dangerous drug abuse under the Dangerous Drugs Ordinance and the Pharmacy and Poisons Ordinance. More than half of the service is committed to anti-narcotics activities. Apart from the interception of illegal imports by sea and air, action is taken against premises used for the manufacture, storage, sale and smoking of drugs. During the year, anti-narcotics operations led to the seizure of 673 kilos of dangerous drugs-including 94 kilos of heroin and 116 kilos of morphine. There were 1,691 people arrested in connection with narcotics offences, of whom four were charged with manufacturing and 414 with trafficking in dangerous drugs. The remainder were arrested for simple possession of narcotics or for smoking dangerous drugs in a divan. The total market value of narcotics seized was more than $36 million.

       The Preventive Service is the sole agency for the enforcement of the Copyright Ordinance. During the year, a special copyright unit handled 59 cases connected with copyright infringement. This resulted in the seizure of 348 tape recorders, 2,305 records, 514,431 pirated tapes, and 18,046 pirated books. A total of 47 people were convicted of various copyright offences and fines amounting to $232,170 were imposed by the courts.

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The Independent Commission Against Corruption (ICAC) has been in action. since February 1974. It is responsible for the detection, investigation and prevention of corruption. The Commissioner and his staff are not subject to the purview of the Public Services Commission and are therefore not part of the Civil Service. The Commissioner is formally responsible directly to the Governor.

On policy aspects of the commission's establishment, financial estimates, admin- istration and general operations, the Commissioner is advised by the Advisory Committee on Corruption, which is composed mainly of leading citizens. The com- mission has three functional departments-operations, corruption prevention and community relations-and for each there is an advisory committee with a membership based on expertise in specialised fields and representative of the community as at whole.

The establishment of the commission is 939 posts, of which 762 were filled by the end of the year. There were 486 in the operations department (establishment 533); 81 in the corruption prevention department (establishment 105); 150 in the com- munity relations department (establishment 249); and 45 in the administration branch (establishment 52).

       The operations department is responsible for the investigation of alleged or suspected offences under the Prevention of Bribery Ordinance, the Corrupt and Illegal Practices Ordinance and the Independent Commission Against Corruption Ordinance. Important changes were made to the ICAC Ordinance as a result of amending legisla- tion in April. These changes widened investigating officers' powers of arrest, search and seizure; gave the commission powers of detention and release on bail of arrested people, independent of the police; and created the new offences of resisting, making false reports to, and pretending to be, an officer of the commission. With respect to the treatment of people detained at the offices of the commission, provision is made in an order approved by the Governor, which came into effect on September 1, 1976.

       A senior professional officer from the Attorney General's Chambers, supported by Crown Counsel, is attached to the operations department and directs the prosecu- tion of corruption cases on behalf of the Attorney General.

        During 1976 the courts dealt with 259 prosecutions concerning offences in respect of the Prevention of Bribery Ordinance and related offences (see Appendix 31). These resulted in 189 convictions, with 33 cases still outstanding. At the end of the year the operations department was actively investigating 293 allegations of corruption. The Operations Target Committee of private citizens and public servants advises the Commissioner on the operations department's activities. There is also a sub-com- mittee which considers all anonymous complaints made to the commission.

       During the year the commission received from members of the public 2,433 reports alleging corruption (see Appendix 31). Of these, 445 were made in person either at the commission's report centre or at the commission's four sub-offices located in high-density areas. There were 320 reports by telephone and 145 by letter, and 1,294 reports were anonymous. In addition, the commission received 229 reports from government departments.

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       The corruption prevention department is responsible for examining the pro- cedures and practices of government departments and public bodies with a view to securing the revision of methods of work or procedures which may be conducive to corrupt practices. It is also the duty of the Commissioner to advise and assist anyone who requests advice on ways in which he or she may eliminate corrupt practices. In carrying out his functions in the field of corruption prevention, the Commissioner is advised by the Corruption Prevention Advisory Committee.

Studies conducted by the corruption prevention department are mainly based on information and reports received from members of the public, the Operations Target Committee, government departments, public bodies and private organisations. During the year 41 such studies were completed and reports forwarded to the people con- cerned for consideration. At the end of 1976 there were 175 areas of activity awaiting study by the department.

       The task of educating the public on the evils of corruption and involving them in the fight against corruption lies with the community relations department. Its strength during 1976 rose from 111 to 150, and recruitment exercises were continuing at the end of the year in an effort to bring the department to its full establishment of 249. Broadly speaking, the department's activities fall into two main areas: personal contact with the public, individually or in groups; and public information and education through the mass media.

To further personal liaison, there are four sub-offices-two in Kowloon, one on Hong Kong Island and one in the New Territories. All are in high-population areas. The sub-offices serve as local centres where personal contact can be established and maintained, and where allegations of corrupt acts and corruption opportunities can be lodged. The offices are open 14 hours a day, from 8 am to 10 pm, every day of the year. A further five sub-offices are planned. Liaison officers of the community relations department have made contact with a wide cross-section of society and, during the year, they made 1,672 visits and took part in 3,216 discussions and talks.

       The community relations department has a public education unit which works with formal education institutions. There is also a community research unit to monitor changes in public perception of and attitudes towards corruption, and to reflect com- munity response to the commission's work. Public information and education pro- grammes for radio and television are produced by the media programme unit. The television programmes include a drama series of 13 half-hour episodes evolving round ICAC investigations and depicting life and social attitudes in Hong Kong.

       A Citizens Advisory Committee on Community Relations, with members coming from different walks of life, guides the commission's community relations efforts.

Fire and Ambulance Services

       In 1976 the Fire Services Department handled an all-time record of 158,477 calls -9,383 fire, 145,520 ambulance and 3,574 special service calls. There were 20,918 more calls than in 1975. Calls to fires and similar calamities increased and 42 people died directly as a result of fire. There were also 587 people injured, of whom 41 were

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firemen. More than 720 people were physically rescued by firemen and led to safety from dangerous situations. The supposed causes of fire followed much the same pattern as in previous years, with careless disposal of lighted cigarette ends and matches (3,241) and electrical faults (1,632) remaining the two most common causes.

       Work is now proceeding to update the communications and call-out systems, which will reduce the time it takes for an appliance to be despatched from a fire station to a fire. It is hoped that the updating will be completed within two years.

       A new fire station on Ap Lei Chau came into operation in September, bringing the total number of fire stations to 38 at the end of the year. Three more- -on Tsing Yi and at Lei Muk Shue and Chung Hom Kok-are nearing completion. Construction of 760 rank-and-file married quarters at Sha Tin and Kwai Chung was also begun.

Appliances

       New appliances brought into use during the year included one 27-metre and five 15-metre Simon Snorkels (elevated hydraulic platforms), five light pumping appliances and a locally-designed mobile command unit. Three 50-metre turntable ladders ordered from West Germany are due to arrive in 1977. Orders have also been placed for 12 major pumps, four 37-metre turntable ladders and five light pumping appliances. A replacement for the outdated No. 3 fireboat stationed at Aberdeen is now under construction. More than 500 fire appliances and vehicles were in service at the end of 1976.

Fire Prevention Bureau

       During the year the Fire Prevention Bureau carried out 247,467 inspections of schools, factories, places of public entertainment, restaurants and many other types of premises. The figure was 54 per cent higher than in 1975.

       After years of campaigning to educate the public on fire precautions, more people are now coming forward to seek advice and to complain of fire hazards. The number of complaints of all kinds investigated in 1976 was 147,363, the majority being con- cerned with means of escape. Most fire hazards are abated by request or persuasion, but where this has no effect it is necessary to resort to law. During the year 1,874 prosecutions were taken out against those who failed to comply with abatement orders and fines amounting to more than $1 million were imposed. The bureau also received 7,544 new building plans for processing.

       The Child Care Centres Ordinance, which came into effect on June 1, empowers fire officers to enter such centres to check on fire safety measures. More than 137 were inspected during the year.

        Officers of the bureau held 162 fire prevention lectures and exhibitions on the rudiments of fire fighting for the staff of other government departments and industrial establishments. Officers were also involved with major development projects and with new industrial undertakings, particularly with regard to new techniques and processes and their allied fire prevention features. The bureau has a staff of 217 and it operates offices on Hong Kong Island and in Kowloon round the clock.

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      At the Fire Services Training School at Pat Heung in the New Territories, intake in 1976 was 15 officers and 277 other ranks. A total of 172 men, of whom six were officers, passed out and were posted to duty. Some 2,289 men attended refresher training courses, including physical fitness assessments, which were organised for all serving personnel with the rank of station officer and below. Short fire-fighting courses were held for staff of other government departments and commercial and industrial firms. The courses were attended by 2,397 people.

Ambulance Command

      The number of calls dealt with by the Ambulance Command is increasing heavily each year due to greater public awareness of the services provided. As a result, the command is now severely stretched to keep pace with demands. In 1976 it responded to 145,520 calls, some 15 per cent more than in the previous year. Of the total, 118,134 calls (or 81 per cent) were to emergencies, including maternity calls. Altogether 177,624 patients were carried.

       The command operates a fleet of 99 ambulances throughout Hong Kong and has an establishment of 560 all ranks. A new ambulance station at the Hing Wah public housing estate at Chai Wan was brought into service during the year, bringing to 10 the total number of depots and stations in operation. Construction of a two-storey ambulance station at Kwai Chung is well under way and is scheduled for completion in 1977. To cope with the continuing growth in demand, there are plans to increase the ambulance fleet, take on additional staff and build more stations.

Establishment

      The authorised establishment of the Fire Services Department at the end of 1976 was 3,743 all ranks, an increase of 162 over the previous year. Actual strength was 3,498-a deficiency of 245. Non-uniformed staff numbered 346, an increase of 15 compared with 1975.

      The response to recruiting campaigns for both the fire and ambulance services was generally satisfactory but, out of 1,886 applications for the rank of fireman, only 116 were accepted; and, out of 519 applications for senior ambulancemen, 23 were accepted and 27 others were appointed as ambulancemen. In addition, eight assistant station officers were recruited.

11

Immigration and Tourism

NEARLY 10.6 million people passed through immigration control as they entered or left Hong Kong during 1976. This was about 14 per cent more than in the previous year, reflecting the strong improvement in the economic climate. About 56 per cent of the travellers were local residents, with most of the remainder being tourists. The tourist industry is Hong Kong's second largest source of foreign exchange and it yielded $3,750 million in 1976.

Immigration

The Immigration Department has a staff of 1,201, of whom 771 are uniformed officers. The work of the department falls into two main streams: the control of people moving in and out of Hong Kong and investigations into breaches of this control; and the documentation of local residents to facilitate overseas travel and to process those who wish to be naturalised or registered as British subjects.

       The 10,575,546 people who passed through immigration control points in 1976 were recorded at: Kai Tak airport, 4,162,380; the Sino-British border, 1,779,982; the Hong Kong-Macau ferry terminal, 4,612,793; and harbour control, 20,391.

Immigration Control

       A significant development in immigration control took place on October 1 with the changeover of passenger movement records from punched cards to computer, and the introduction of pre-numbered two-part arrival and departure cards. The com- puter matches arrivals with departures and enables overstayers to be identified quickly and accurately. Statistical information is also now much more readily available.

The aftermath of the political changes that took place in Indo-China in 1975 continued to affect Hong Kong. All but 31 of the 3,900 refugees from Vietnam who arrived in 1975 had been settled overseas or in Hong Kong by 1976 and the last refugee camp was closed on May 20. But the problem re-emerged as six groups of refugees totalling 165 people were rescued at sea by merchant ships and brought to Hong Kong. Another 26 refugees arrived direct from Vietnam in small boats, and at least one other group is known to have landed illegally. The United Nations High Com- mission for Refugees agreed to accept responsibility for these refugees and by the end of the year 100 of them had left for settlement in the United States.

Apart from the refugees, more than 5,200 illegal immigrants from Vietnam were permitted to stay in Hong Kong after they had surfaced by registering for identity cards. This led to a sharp increase in applications for the entry of dependants from

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Vietnam. During the year 8,493 applications were received in respect of about 8,531 people, and each month sees a steady increase in such cases.

Although immigration from China has declined from 76,745 in 1973 to 27,599 in 1976, it still creates a considerable problem in Hong Kong. The figures include illegal immigrants whose numbers are impossible to estimate exactly. During the year 810 illegal immigrants were repatriated to China, as well as 216 to Taiwan and 604 to Macau.

More than 200,000 immigrants from China and Vietnam have been resettled since 1971 and Hong Kong's acceptance of such numbers has been matched by few countries.

Since late 1975 the Immigration Department has been scrutinising new admissions to prisons, to identify criminal illegal immigrants who might be deportable. Together with continued vetting of all legal immigrants convicted of criminal offences, this is part of the department's active support for law and order. It led to a record number of 90 deportation orders being approved by the Governor in Council in 1976.

Personal Documentation

The fees for travel documents were increased in March. Fees for passports were doubled from $60 to $120, but re-entry permits which are used by many local residents for travel to China or Macau went up by only $5 to $15.

As immigration restrictions have become progressively tighter in many parts of the world, including Hong Kong, so the traffic in false travel documents has grown. This trafficking not only undermines immigration control of the target country but also damages the international standing of the authority purported to have issued the document. Various methods of improving the security of Hong Kong's travel documents are under consideration by the Immigration Department, including a new method of engraving photographs directly onto the travel document. A section specialising in the detection of false travel documents has been established, resulting in several successful prosecutions. False travel documents of various nationalities with supporting identity cards, driving licences and vaccination certificates, together with false stamps and seals-all of good quality and sufficient to supply several hundred people with completely new identities-were seized late in the year. The estimated black market retail value of the haul was about $30 million.

Tourism

For the fifth consecutive year, Hong Kong received more than a million visitors during 1976. There were 1,559,977 arrivals-a 20 per cent increase over 1975. Tourism remained the second largest source of foreign earnings, amounting to $3,750 million. This was 26 per cent higher than in the previous year.

       More visitors came from Japan than any other country. They comprised 28 per cent of the total. Southeast Asia followed with 24 per cent, the United States with 15 per cent, Western Europe with 12 per cent, and Australia and New Zealand with 11 per cent.

Opera

BRARIES

Music to Celebrate

Chinese opera is one of the most popular forms of traditional entertainment in Hong Kong, there being about 500 professional performers and countless amateurs. No celebration is complete without an opera. In villages and in the city, performances are given in halls, theatres, and in the streets or in matshed theatres during re- ligious and other festivals. The opera is a special feature of the annual Hong Kong Arts Festival and it was included in the first Festival of Asian Arts presented by the Urban Council in 1976. There are three main branches of traditional Chinese opera performed in Hong Kong-the Peking, Cantonese and Chiu Chow opera. Each owes a debt to Chinese classical drama, having similar mixtures of singing, speech, mime, acrobatics and dancing. Peking opera has a rich and refined style and it is highly developed technically, while Cantonese opera is less formal and nowadays includes modern and foreign elements. Chiu Chow opera is virtually the same as it was in the Ming Dynasty, in- corporating the folklore and legends of the Chiu Chow people. Productions in all three groups are magnificently dressed, with Hong Kong's professional performers investing large sums of money in their

own costumes.

Previous page: A performer applies his stylised make-up in readiness for an evening of Cantonese opera at the City Hall. Left: Scenes from 'The First Encounter', which follows a popular theme in Cantonese opera-love at first sight.

{

BRA

Peking opera uses a variety of symbolic props but virtually no scenery. Acting techniques are also symbolic, involving a wide range of conventional gestures.

3

     A more natural form of make-up is used in Chiu Chow opera, which covers a range of works designed to give a moral message.

Puppets

I

T

The Ancient Art

One of the oldest theatre forms in Asia is the art of puppetry and Hong Kong is fortunate in having several 'masters' of the various styles-which involve glove, string, stick, and shadow puppets. Per- formances are given throughout the year and, like Chinese opera, they can be seen all over Hong Kong, from City Hall to village square. Shadow puppets are usually made from translucent leather, slender sticks and thread, and they cast shadows of heroes, mythical beasts and devils from ancient Chinese tales onto a silk screen. They are the most articulated of any pup- pets in the world, but the precise means of manipulation is a closely guarded secret which is passed on only from father to son. Chinese glove puppets, like string and stick puppets, are invariably costumed in bright silks and jewels, and their heads are traditionally of camphorwood, intricately carved and painted. The puppet perform- ances given in Hong Kong are virtually the same as those given centuries ago, with the various roles in the legendary or his- torical sagas being spoken or sung by the puppeteers, usually accompanied by sim- ilar music to that used in Chinese opera.

Previous page:

A master puppeteer, un- seen by the audience, presents a Cantonese puppet show at a playground in Aberdeen. Left: These puppet heads illustrate the detail and quality of Chinese puppets, which are classed among the finest in the world.

       Above: Behind the scenes with Fukienese string puppets at a Mong Kok playground.

Below: A performance with glove puppets in a Chinese nightclub.

G

String puppets from Fukien, the ancient and most advanced centre of puppetry in China.

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Hong Kong Tourist Association

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       The Hong Kong Tourist Association (HKTA) is a statutory body on which the territory's tourist industry is widely represented. Its activities fall into three broad areas: promoting Hong Kong overseas as a tourist destination; providing informa- tion to tourists once they are in Hong Kong; and working for the improvement and development of Hong Kong for the greater enjoyment of visitors.

The HKTA has more than 120 staff in many parts of the world. The head office is in the Connaught Centre on the waterfront on Hong Kong Island, and there are eight overseas offices. They are in London, Paris, Frankfurt, New York, San Francisco, Johannesburg, Tokyo and Sydney. The HKTA is also represented throughout South- east Asia and Japan and in the United States and Australia. Information offices in Hong Kong are located at Kai Tak airport and at the Star Ferry concourses. There is also an information counter at the World Trade Centre in Causeway Bay.

       The membership department handles liaison with members of the association and also deals with any complaints that visitors may have about goods or services. Membership in 1976 was 1,157, of whom 265 were ordinary members and 892 were associate members.

        A number of publications are produced by the HKTA. Some are for the inter- national travel trade and for the local tourist industry, but the majority are for visitors. They include a range of nine information leaflets, a guidebook, maps, and many special publications-some of which have been translated into several languages, in- cluding Japanese, Chinese, German, Spanish, French, Malay and Thai.

Promotions

        The HKTA's promotional work during 1976 was focussed on the travel trade and the worldwide media, although there were some promotions directed towards the

consumer.

A two-week tourism mission to Japan in August travelled to five key cities in- cluding Tokyo and Osaka. There were audio visual presentations, seminars, luncheons and receptions at which the HKTA delegation met more than 820 members of the Japanese travel trade. An updated HKTA tour planning guide was the focal point of the promotions, the emphasis being placed on sectors of the market with good growth potential, such as honeymoon couples and young women.

Again in Japan, a team of ice carvers from the Sheraton-Hong Kong Hotel took first prize in an ice carving competition organised for the Sapporo Snow Festival. They were part of a Hong Kong travel industry team which visited Japan to promote Hong Kong at the festival and at subsequent travel trade presentations in Sapporo and Sendai. Their achievement brought wide television and press coverage for Hong Kong's team. The HKTA also took part in the Osaka Trade Fair in April-May.

A Hong Kong Week was held in Kuala Lumpur in March and in Singapore in September. Both promotions featured Hong Kong craftsmen and, in Singapore, there were fashion shows which included Chinese traditional costumes from Shaw Brothers film studios and clothing from a Hong Kong boutique.

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Also in September, a Hong Kong Arts Festival promotion was held in Bangkok, Kuala Lumpur and Singapore. The central feature was a presentation of slides which covered past Arts Festivals and various other festivals in Hong Kong.

In the United States, the HKTA mounted a booth display at the American Society of Association Executives (ASAE) annual convention in Atlanta, Georgia, in August. The main objective was to inform and remind ASAE members of Hong Kong's facilities and attractions as a place for conventions and holidays. Post-ASAE promotions were held in six other American cities and were aimed at important whole- salers, incentive operators and senior staff of trans-Pacific carriers in those cities. In New Orleans in September, an HKTA delegation took part in the 46th American Society of Travel Agents (ASTA) annual convention.

A series of promotions was held in London at the beginning of the year and in February the HKTA was well represented at the 10th International Tourism Exchange (ITB) in Berlin. Several convention promotions were staged in four German cities during the autumn, to create an awareness of the conference facilities in Hong Kong.

In Australia, travel trade and consumer promotions were held in February, July and September. The travel trade promotions used a new audio visual presentation of recent developments in Hong Kong while the consumer promotions featured several Hong Kong entertainers and craftsmen, including a dragon's beard candymaker, calligrapher, model grasshopper maker and fortune-teller.

The Australian Federation of Travel Agents (AFTA) held their 19th annual con- ference at the Hong Kong Convention Centre in August. More than 700 delegates attended. During their stay they met local travel trade members and updated them- selves on various sightseeing attractions in Hong Kong with a view to incorporating these attractions in visitor itineraries.

Other overseas meetings and promotions in which the HKTA took part were the Association of South African Travel Agents (ASATA) annual congress in Deauville; the SKAL (AISC) convention in Florence; and the International Congress and Con- vention Association (ICCA) general assembly in Monte Carlo.

Public Relations

The finals of the 1976 Miss Universe Pageant, which were held in Hong Kong in July, were televised by TVB and transmitted by satellite to millions of viewers through- out the world. More than 65 per cent of all television sets in the United States alone were switched to the pageant.

Months earlier, as soon as it was officially announced that the pageant was to be held in Hong Kong, a specially-compiled HKTA press kit with photographic and written material on Hong Kong and the pageant was released to the international media. This was the start of an HKTA publicity programme for media all over the world.

In April, a three-minute pre-pageant film clip was made during the visit to Hong Kong of Miss Universe 1975, Anne Marie Pohtamo. She was filmed against several

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wellknown Hong Kong backdrops and the film, together with another featuring Hong Kong scenery, was released by the HKTA to television stations in many countries.

Pageant contestants from Japan, Indonesia, the United States, Germany, Wales, Australia and Mexico arrived in Hong Kong ahead of the pageant week to take part in a 14-minute HKTA promotional film. The film also includes the eventual pageant winner, Rina Messinger from Israel, and it is an invaluable tourism sales instrument for the HKTA.

In the Hong Kong Dragon Boat Festival races at Shau Kei Wan in June, a highly successful team of Japanese rowers ensured good newspaper and television coverage for Hong Kong in the important Japanese market. The event was recorded by an NHK film team in the form of a 20-minute documentary film screened in Japan. It was also filmed by Nagasaki Television and the Nagasaki Broadcasting Corporation.

During 1976 the HKTA assisted 670 media visitors from all over the world and sponsorship for many of them was provided by airlines and local hotels.

Travel Trade Visitors

Among travel trade visitors assisted by the HKTA during the year were represen- tatives of the Japan Association of Travel Agents, the Association of British Travel Agents' Retail Agents Council, the Association of South African Travel Agents, and the American Society of Travel Agents. The HKTA also continued its policy of hosting familiarisation visits to Hong Kong for travel trade members from major tourist markets.

Product Development

Throughout the year the HKTA organised and took part in various projects to develop Hong Kong as a visitor destination, and to improve existing attractions, facilities and services.

Among these projects were refresher training courses conducted by the Produc- tivity Centre for counter sales staff of HKTA retail members, and an English-language refresher course for tourist guides. Other projects in which the HKTA was involved included a souvenir design competition, the Yuen Siu Festival, the Lantern Carnivals, the proposed folk museums on Cheung Chau Island and at Sheung Shui, Chinese cultural shows, tour commentaries compiled for all standard tours of Hong Kong, and the provision of mapboards at Cheung Chau, Stubbs Road and Tsim Sha Tsui.

12

Public Works and Utilities

H

     EXPENDITURE on public works is invariably the government's greatest single financial commitment. It covers the formation and reclamation of land and the construction of all types of public buildings, as well as the provision of roads, sewers, piers and reservoirs.

Approved public works expenditure for the financial year 1976-7 was $1,602 million-nearly a quarter of total government expenditure. Of this sum, $405 million is being spent on roads, $267 million on water supplies, and $170 million on public housing-in addition to expenditure by the Housing Authority.

Buildings

       In public housing and allied projects, the Public Works Department completed 27 housing blocks in 1976 on behalf of the Housing Authority. Also completed in housing estates were four welfare halls, 10 primary schools, six kindergartens, three large commercial and communal complexes, and two markets.

At the end of the year work was in progress on 17 domestic blocks which, when completed, will provide 79,532 individual units of accommodation. Under construc- tion at four public housing estates were nine schools comprising 216 classrooms, seven kindergartens, three welfare halls and four large commercial and communal complexes. In addition, planning or preparation work was in progress on the second phase of the Tai Hing housing estate at Tuen Mun new town, the remaining conver- sion and redevelopment of the Shek Kip Mei estate, and the second stage of a project to rehouse fishermen displaced by the High Island Water Scheme. When completed these projects will provide accommodation for a further 46,088 people.

During the year, expenditure on public housing and associated building work amounted to $173 million, and on all other building projects to $239 million.

Major projects completed on Hong Kong Island included the new General Post Office, a new Council Chamber and offices for the Urban Council, a central command and control centre for the Royal Hong Kong Police, and a cell block and refractory unit at Stanley Prison.

In Kowloon, modifications and new building works were carried out at the international airport at Kai Tak and among many projects completed were: the second stage of the multi-storey car park at Yau Ma Tei; the first stage of Kowloon East polyclinic; alterations to the casualty department and the custodial ward at Queen Elizabeth Hospital and the conversion of a ward into a midwifery training school; the second stage of Kowloon District Police Headquarters; the loading bay,

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railway platform and store for the new international mail centre at the Hung Hom railway terminus; a recreation ground in Kwun Tong and indoor games halls at the Cheung Sha Wan, Morse Park and Boundary Street sports grounds; a physical and recreational training centre at Gun Club Hill Barracks; and a market in Mong Kok.

In the New Territories, projects completed included: the second stage of the Tsuen Wan/Kwai Chung polyclinic; additions and improvements to Castle Peak Hospital; a divisional police headquarters and police station at Kwai Chung; and the reprovisioning of Emmanuel School at Sham Tseng.

Among projects under way at the end of the year were: a multi-purpose indoor stadium to seat 15,000 people, forming part of the new railway terminus complex at Hung Hom; another stadium, to seat 3,500 people, as part of a 12-storey sports complex on Hong Kong Island; piling work for the planetarium which will be the first building in the $200 million-plus Cultural Complex to be built on the waterfront at Tsim Sha Tsui; secondary technical schools in Kowloon and Kwai Chung; a technical institute at Cheung Sha Wan; piling work for a secondary school at Sha Tin; more modifications to the terminal building at the international airport; a funeral depot at Hung Hom; a second mental hospital at Lai Chi Kok; a swimming pool complex and park at Hung Hom, as well as a swimming pool complex at Aberdeen and diving and teaching pools at Victoria Park; the second stages of Kowloon Park and Hoi Sham Park; the second phase of Sham Tseng Village rehous- ing; piling work at HMS Tamar for the new headquarters of the British Forces in Hong Kong; and a high school for the children of Gurkhas serving in Hong Kong.

At the end of the year, work was in hand on the design, working drawings or contract documents for more than 200 new projects. They included: the first stage of the San Po Kong technical institute; secondary schools at Kwai Chung, Lai King and Tuen Mun; a new cadet school for the Royal Hong Kong Police; a maximum security prison; the reprovisioning of Ma Tau Wai Girls' Home; community centres at Yau Ma Tei and Shek Yam; a crematorium and columbarium at Tsuen Wan; a swimming pool complex and park at Chai Wan; sports grounds at Cheung Sha Wan and Kwai Chung; and recreation grounds at Tsuen Wan and Tai O.

Throughout 1976 the volume of building work increased steadily in the private as well as the public sector. Tender prices remained reasonably firm over the year, with an overall increase of about 10 per cent. Most major contracts continued to attract some 20 tenders and pricing was keen.

Maintenance works on buildings in the public sector continued to expand and there was satisfactory progress with the construction of buildings for the Property Services Agency of the United Kingdom Department of the Environment. Private quantity surveyors and, to a lesser extent, private architects and consultant engineers continued to assist in the public building programme.

Metrication

        In July, the enactment of the Metrication Ordinance opened the way for the metrication of the Buildings Ordinance as well as other ordinances. As from April 1, 1977 it will be mandatory for all new plans submitted for the approval of the Building

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Authority to be in metric form. Throughout 1976 it was optional for plans in con- nection with private construction works to be submitted in either Imperial or metric form, in order to give everyone the time and opportunity to become accustomed to metrication.

Since 1972 the Public Works Department and the Education Department have been in the forefront of the changeover to metric units of measurement in Hong Kong. All new designs for public works projects were in metric form by 1976 and survey maps in metric form are progressively being introduced.

Land Development

In Kowloon, development of land included about 1.1 hectares for the Pak Tin public housing estate and the final seven hectares of the 40 hectares developed for housing, commercial and community uses at Clear Water Bay Road. Construction of a new three-kilometre section of Clear Water Bay Road within the development area continued, and construction of the major road bridges and junctions was begun. At Lai Chi Kok, 1.2 hectares were formed for the second mental hospital now being built there. In Kwun Tong reclamation continued at Kowloon Bay, where 7.1 hectares were formed for public roads and industrial development. One hectare of land was formed for the extension of airport facilities at Kai Tak.

       On Hong Kong Island, reclamation continued with the formation of 1.6 hectares in Central for roads and community uses; 7.2 hectares at Chai Wan for housing, industrial and cargo-handling uses; and 1.2 hectares at Aldrich Bay for roads, boat- yards and a ferry concourse. Reclamation was also begun at the site of the Aberdeen sewage screening plant and at Po Chong Wan, Aberdeen, to provide land for boat- yards, industrial uses, a seamen's training centre and road extension. On the waterfront at Western, 0.7 of a hectare was reclaimed for the construction of roads, a market and cargo-handling uses, while 6.2 hectares were reclaimed at Lei Yue Mun Bay for a mass transit railway depot. At Mount Butler, 1.0 hectare was formed for non- departmental quarters.

       In the New Territories, reclamation commenced at Shuen Wan in Tai Po Hoi for the formation of the first stage of the Tai Po industrial estate and some 5.0 hectares were formed. At Tuen Mun new town, work began on the construction of Pillar Point Road from Pillar Point to Siu Lang Shui.

Water Supplies

There was a continuous water supply throughout the year and apart from three weeks of limited water restrictions in late 1974 a full supply has now been maintained since 1967.

At the beginning of 1976 there were 274 million cubic metres in storage, compared with 248 million cubic metres at the start of the previous year. Rainfall during the year was in excess of the average of 2 169 mm, a total of 2 197 mm being recorded. Overflow occurred in all reservoirs by late August and the beginning of the dry season in October saw the reservoirs 96 per cent full. There were 293 million cubic metres in storage on October 1, compared with 291 million cubic metres the previous year.

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At Plover Cove, Hong Kong's largest impounding reservoir, there were 215 million cubic metres of water stored at the beginning of 1976, compared with 181 million cubic metres the previous year. Inflow during the summer months ensured that salinity of the impounded water remained at a low level, which at the end of the year was 76 ppm. The quality of the abstracted water remained satisfactory through- out the year.

Some 84 million cubic metres of water were piped from China to Hong Kong in the supply period from October 1, 1975 to August 10, 1976. Agreement was reached with the Bureau of Water Conservancy and Hydro-Electric Power, Kwangtung Province, to increase the annual supply from 84 million to 109 million cubic metres with effect from October 1, 1976. The supply period was reduced and it is now from October 1 to July 31.

        Demand for water increased by 12.3 per cent in 1976 compared with the previous year-primarily due to the rapid recovery of Hong Kong from the worldwide reces- sion. Average consumption throughout the year was 1.1 million cubic metres a day compared with 0.9 million cubic metres a day in 1975. A total of 405 million cubic metres of potable water was consumed, compared with 361 million cubic metres in 1975. In addition, 78 million cubic metres of salt water for flushing were supplied- 15.4 per cent more than in 1975.

        Work progressed satisfactorily at High Island Reservoir in the New Territories. Leakage through the permeable zone of the east sea cofferdam was brought under control by grouting and the construction of a temporary earth bund between the cofferdam and the main dam. This earth bund enabled dewatering of the main dam foundation, so permitting foundation preparation to proceed prior to complete sealing of the leakage through the cofferdam. It is estimated that the need to carry out these additional measures will result in a delay of 14 months in completion of the reservoir works.

Construction of the east dam core and the supporting rockfill commenced, and the west dam was built almost to its final elevation. Construction of seven of the eight lowland pumping stations was substantially completed. Most of the main tunnel system was commissioned and the yield from the associated intakes was fed into Lower Shing Mun Reservoir, making a useful extra contribution to total resources. The two additional clarifiers at Sha Tin treatment works were commissioned and uprating of the filters from 800 000 to 1.1 million cubic metres a day was almost completed. The construction of the 96 000-cubic-metre service reservoir at Lion Rock progressed satisfactorily.

       Work on the 182 000 cubic metres a day desalting plant near Tuen Mun was almost completed. The first of the six units was subjected to a 180-day performance and reliability test, in accordance with the contract. But tests of the remaining five units were reduced to 30 days due to staff shortages and in the interests of economy, having regard to the favourable reservoir storage position. After completion of the tests, one unit remained in service for the remainder of the year. A total of 7.3 million cubic metres of water was produced and pumped into the supply system.

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Although construction and testing was completed, numerous technical problems remained to be solved. As it is expected that the output from the desalter over the next year will be limited, enquiries were made regarding the most suitable method of 'mothballing' the plant. Unfortunately there is little experience elsewhere on which to draw and no worthwhile assistance or advice was obtained. The extensive system of corrosion monitoring equipment, installed on the advice of the United Kingdom Atomic Energy Authority's consultants, gave valuable data on plant operating con- ditions. This enabled the chemists to improve control of the brine chemistry, so reducing corrosion within the plant. Contact with manufacturers and others in the desalting field overseas was maintained with a view to keeping abreast of the latest developments in desalting technology.

       In addition to the major water schemes, work continued on other projects to meet increasing demand in existing and new areas of development-including new towns and market towns. Work began towards the end of the year on a $35 million scheme for improvement in water supply to the Yuen Long district, mainly to cater for various new development projects. Construction work for new water supply systems for Sha Tin, Tsuen Wan and Tuen Mun new towns progressed steadily, keeping pace with the general development programme. Planning was completed for water supplies to the Tai Po public housing development and the Tseng Lan Shue and Fei Ngo Shan areas, and for improvement to the system supplying Sai Kung town. On Hong Kong Island, work to improve the water supply in Pok Fu Lam area was slower than expected because of delays on the part of the contractor. Work was begun to improve the salt water flushing system for the Mid-Levels district.

       Detailed studies and examinations were continued to ensure the safety of reser- voirs, and remedial works were put in hand at some of the older dams.

A project manager was appointed for the computerisation of water billing and related procedures, and a package system from a firm of consultants was accepted. Preparation of the basic data for conversion of trade accounts was in hand. Improve- ments in consumer services continued to be hampered by shortage of support staff to deal with the continually increasing number of consumers, now exceeding 730,000.

Drainage and Anti-pollution Projects

Sewage from the urban areas is generally collected by a separate system of sewers and, in most cases, is discharged into the sea via submarine outfalls after preliminary treatment to remove offensive solids. During the year a submarine outfall was com- pleted at Aberdeen and new sewers were laid in Chai Wan and Sham Shui Po. Work was begun on the construction of submarine outfalls at Kwai Chung and Repulse Bay.

       At the Shek Wu Hui pilot sewage treatment plant, experimental work to assess the suitability of various sewage treatment methods was in the final stage. The con- struction of new sewage treatment works at Tai Po, Yuen Long and Aberdeen was under way. Consulting engineers were engaged to proceed with the design of the first stage of sewage treatment and disposal works for northwest Kowloon and with the construction of an interim treatment plant to serve Sha Tin new town. Contracts

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were let for plant equipment for the Sha Tin new town permanent sewage treatment works.

Monitoring of water quality in local waters was continued, to obtain long-term data for the design of new facilities for sewage treatment and disposal, and to establish pollution levels and trends. A data report summarising all monitoring results to the end of 1975 was prepared.

The laying and extension of stormwater drains was completed in the Central and Kennedy Town reclamations and at Au Tau, Yuen Long. River training works at Sha Tin and Wong Chuk Hang, Aberdeen, were also completed. Works in progress included extension of arterial drains in the Western, Chai Wan, Kowloon Bay and Yau Ma Tei reclamations and drainage improvement works in Ma Hang, Stanley.

Port Works

        On Hong Kong Island, 125 metres of seawall to retain a reclamation for the sewage screening plant at Aberdeen was completed during the year. Contracts were let for the construction of a total of 2 320 metres of seawalls at Aldrich Bay, Chai Wan, Western District and Po Chong Wan, Aberdeen, to retain reclamations for various purposes.

        In the harbour, dredging of the realigned central fairway to a depth of 11 metres below chart datum was completed. This fairway will be the main access for ships to Victoria Harbour during the construction of the immersed tube tunnel across the harbour for the mass transit railway.

In Kowloon, work commenced on the construction of a new ferry pier and concourse at Sham Shui Po to replace and improve existing facilities at Pei Ho Street. Two outfalls, forming part of the drainage development works in Kowloon Bay, were under construction. A contract was let for the construction of the seawall foundation at Cheung Sha Wan.

In the New Territories, work began on the extension of Cheung Chau ferry pier to provide better landing facilities. Reclamation work was under way in a small section of Rambler Channel typhoon shelter to provide land for cargo handling.

Quarrying

       Demand for quarry products rose steadily during 1976 with the result that prices-particularly for crushed rock aggregates-were about 10 per cent above those of the previous year. At the end of 1976 the six quarries run under government contracts were producing some 20 per cent more material than in the previous December, and several of the quarries were installing new plant to increase their output capacities.

       At the two government quarries, haulage roads were completed at both sites and new crushing and screening plant was commissioned at Mount Butler.

The materials testing laboratories operated by the quarries section of the civil engineering office of the Public Works Department carried out 98,455 tests on building materials, of which 6,174 were for private firms.

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       Sales of sand through the sand monopoly depots, which are also operated by the quarries section, showed a rapid increase towards the end of the year. The total volume sold in 1976 was 20 per cent higher than in the previous year. The supply of sand manufactured locally from crushed rock, as opposed to marine sand dredged from the sea bed, was introduced in October. The supply will be sufficient to meet about 25 per cent of the total demand.

Public Utilities

Electricity

Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma are supplied with electricity by the Hongkong Electric Company while Kowloon and the New Territories-including Lantau and a number of outlying islands-receive their supply from the China Light and Power Company. The island of Cheung Chau is served by the Cheung Chau Electric Company. In addition, minor enterprises such as some village co-operatives produce current for certain remote localities.

       The three companies are investor-owned, and do not operate under franchise. However, the government does exercise a measure of profit control over the two main undertakings.

       Generation of electricity for Kowloon, the New Territories and several outlying islands is carried out partly by the China Light and Power Company and partly by Peninsula Electric Power Company-an enterprise financed 60 per cent by an affiliate of Exxon Corporation and 40 per cent by China Light. Peninsula owns generating stations on Tsing Yi Island (1 362 MW) and at Hok Un (240 MW). The operation of these stations is in the hands of China Light, which also has its own stations at Hok Un (410 MW) and a number of diesel sets (total 6 MW). Additional capacity of 200 MW on Tsing Yi is due to be installed in 1977.

       Hongkong Electric has generating stations at North Point (271 MW) and Ap Lei Chau (631 MW). The installed capacity of Cheung Chau Electric Company is 5 MW, but this will be increased by a further 2 MW when a new diesel generating set is installed in 1977. In all, the three undertakings have a combined capacity of 2 925 MW.

        Transmission is carried out at 132 kV and 66 kV, while distribution is effected mainly at 11 kV and 346 volts. The supply is 50 hertz alternating current, normally at 200 volts single-phase or 346 volts three-phase. For bulk consumers, supply is avail- able at 33 kV and 11 kV. Safety aspects are covered by an Electricity Supply Ordinance and subsidiary legislation.

       Main electricity statistics for 1976, as well as electricity sales figures for the years 1974-6, are shown in Appendix 34.

Gas

The Hong Kong and China Gas Company supplies towngas to Hong Kong Island, Kowloon and the New Territories. The supply is available throughout the

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urban areas, including Aberdeen, Repulse Bay and Stanley on Hong Kong Island, and the industrial towns of Kwun Tong, Kwai Chung and Tsuen Wan on the main- land. Work is now in hand to provide Sha Tin, Tsing Yi Island and Tuen Mun with a towngas supply in 1977, and the company is also planning to extend its service to other towns in the New Territories. Towngas production is centred at Ma Tau Kok in Kowloon, and Hong Kong Island is supplied by two submarine gas mains across the harbour. The total installed capacity of the station is about 28 million cubic feet a day.

       Gas is sold on a thermal basis (one therm=100,000 British thermal units). The calorific value of towngas is 455 BTUs per cubic foot. The total quantity of gas sold in 1976 was 17.9 million therms, compared with 15.2 million in 1975.

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Communications and Transport

     HONG KONG's new $43-million General Post Office was opened in August while throughout the year work went into full swing on the construction of the $5,800- million mass transit railway. Tunnelling was started at the end of 1975 and the modified initial system-15.6 kilometres long-is due to be completed in 1980. It will be Southeast Asia's first underground railway and it is estimated that it will carry a million passengers a day, which will make it one of the most heavily used systems in the world.

Post Office

       The new General Post Office is on the waterfront on Hong Kong Island. It was officially opened by the Governor, who said that Hong Kong would only be able to maintain its position as a leading centre of trade and finance if it continued to keep pace with the technology of modern communications.

The five-storey building is equipped with highly sophisticated mechanised systems -including a 1,000-foot chain conveyor system for mailbags, a letter transporting system which can convey letters from the sorting office at the rate of 45,000 an hour, and a stamp cancelling machine which is able to segregate and stamp 25,000 letters an hour. The loading and unloading of mail launches berthed alongside the pier adjoining the building is also done automatically. Escalators lead to and from the main public office on the first floor, where there are also 12,400 private post office boxes. In addition to the mail handling facilities, the building accommodates the head- quarters of the Post Office.

The old General Post Office-built 65 years ago in the Victorian style was demolished towards the end of the year to make way for work on the mass transit railway.

In November, piling was begun on the new $43-million international mail centre at the new railway terminus in Hung Hom. Three other new post offices were also opened during 1976, one of them replacing an office which closed on expiry of its lease. There were 72 post offices at the end of the year, including a mobile post office which serves remote parts of the New Territories.

Postal Services

An estimated 287 million letters, registered articles and parcels were handled during the year-5.1 per cent more than in 1975. Mail posted for delivery within Hong Kong increased but there was a decline in surface parcel traffic to other countries.

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The weight of parcels despatched by air increased by 32 per cent, while the weight of other air mail despatched increased by 12 per cent.

        The speedpost service, which caters for the rapid and reliable transmission of business documents and commercial papers, continued to grow in popularity and scope. In addition to the established services to Britain, the United States, Brazil and Japan, the service was extended to Belgium, France, Australia and the Netherlands.

       Express mail traffic also continued to increase, with some 611,000 items being despatched-75 per cent more than in 1975.

As from January 1, 1976, it was necessary to increase some overseas surface post- age rates as a result of changes in the basic international rates agreed at the Universal Postal Union Congress held in Lausanne in 1974. While making these changes, certain other rates and fees were also revised-in some cases to avoid anomalies with the new surface postage rates and in others to take account of present-day costs.

        In most areas of Hong Kong there are two mail deliveries a day, Monday to Saturday inclusive. The Post Office aims to deliver mail not later than one working day after the date of posting, and it is largely successful in achieving this target.

        There were three issues of commemorative postage stamps in 1976. Two stamps. were issued in January to mark the Lunar New Year-the Year of the Dragon. This was the tenth in the series of Lunar New Year stamps. Two stamps depicting the Diamond Jubilee of the Girl Guide movement in Hong Kong were issued in April, and three commemorating the official opening of the new General Post Office were issued in August.

       Agency services carried out by the Post Office on behalf of other government departments during the year included payment of social welfare benefits amounting to $13 million a month.

Telecommunications Services

       The Postmaster General is the Telecommunications Authority in Hong Kong and administers the Telecommunications Ordinance, which governs the establishment and operation of all telecommunications services. The Postmaster General acts as adviser to the government on general technical matters concerning the provision of all types of telecommunications services, including the operation of the public tele- phone network, the provision of television services, and the provision of telecom- munications services to and from places outside Hong Kong.

        The Post Office issues licences required under the Telecommunications Ordinance, investigates cases of infringement of the ordinance, and instigates legal proceedings where necessary. It is also responsible for the control of radio frequencies in Hong Kong and the investigation of complaints of radio interference. On behalf of the Director of Marine, it carries out the inspection and survey of ship radio stations to ensure compliance with the International Convention for the Safety of Life at Sea. The Post Office plans and makes arrangements for the provision of telephone services for all government departments. It also provides advisory, installation and main- tenance services for a large number of telecommunications and electronic systems and

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items of equipment used by government departments, including the Medical and Health Department.

The Hong Kong Telephone Company provides telecommunications services within Hong Kong. With more than 24 telephones to every 100 people, Hong Kong has the second highest telephone density in Asia. At the end of 1976 there were 1.1 million. telephones in use. By the early 1990s the number is expected to approach two million.

During 1976 four new exchanges were added-at Discovery Bay, Pak Tin, Ngau Tau Kok and Sham Tseng bringing the total to 56. In March the company intro- duced International Subscriber Dialling (ISD) and subscribers in four exchange areas can now dial their own calls to 10 other countries. This facility is to be expanded progressively.

Hong Kong's international telecommunications services are provided by Cable and Wireless. Services available include public telegram, international and local telex, international telephone, data transmission and leased circuits for private communica- tion networks. These are provided via various communication systems, such as the international satellite telecommunications system, submarine telephone cables, tropo- spheric scatter system, microwave and high frequency radio.

      The international telephone service is provided by Cable and Wireless in conjunc- tion with the Hong Kong Telephone Company, and more than two million calls were handled during 1976. The international exchange is capable of handling up to 8,300 calls an hour.

Automatic switching of telegraph and telex messages is provided by computers. An average of nine million messages a day are switched through eight computer processors. The telex exchange caters for more than 5,000 subscribers, but provision is being made for a capacity of up to 10,500 subscribers in 1977.

Mass Transit Railway

       The 15.6-kilometre modified initial system of the mass transit railway is to link Central District on Hong Kong Island with Kwun Tong in Kowloon.

      Work on the railway was begun at the end of 1975 and by the end of 1976 all the major contracts of the 25 civil engineering and 10 electrical and mechanical engineering contracts were let at a total price which was within the estimates. In addition, con- tracts were let for the construction at the Kowloon Bay depot of the foundations and podium which will support housing and commercial development above the depot. Included in the development will be homes for 25,000 people.

       The total cost of building the modified initial system is $5,800 million at prices adjusted for escalation to 1980, when the system will go into full operation. All debts, including interest charges amounting to a further $1,000 million, will be repaid by 1991-2. The financing arrangements are: $800 million in cash from the Hong Kong Government in return for equity; $1,700 million in the form of export credit finance; and $3,900 million in short and medium term credit facilities. In addition, the Mass Transit Railway Corporation has raised a $400 million 10-year bond issue on the Hong Kong market.

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The modified initial system will have more than eight kilometres of bored tunnel, 3.5 kilometres of cut and covered tunnel, more than 2.4 kilometres of track above ground and a 1.6-kilometre tunnel across Victoria Harbour. There will be 12 under- ground stations and three above ground.

During the year, areas of land required for the construction of the railway were progressively made available to the contractors on completion of further resumptions and clearances. At the same time, major traffic diversions were effected to enable contractors to occupy the work sites when required.

As construction gathered momentum, more than 300 statutory notices were issued for the temporary removal of canopies, signboards and other projections from build- ings which were affected by the works. Close liaison was constantly maintained between the Mass Transit Railway Corporation and the government departments concerned, and particular attention was paid to the co-ordination of statutory action and public relations exercises with the progress of design and construction and also to ensuring that inconvenience to the public was kept to the minimum.

A scheme for advance payments of compensation for loss of business caused by the construction of the railway was instituted after being approved by the Executive Council. The scheme is designed to alleviate hardship for the smaller type of business operators occupying premises having a rateable value of less than $250,000.

Kowloon-Canton Railway

Work on modernising and expanding the Kowloon-Canton Railway continued during the year following the opening of the new $150-million railway terminus at Hung Hom in November 1975. The 34-kilometre railway runs from Kowloon to the Lo Wu border with China and it is owned by the Hong Kong Government. It serves people travelling to and from areas along its route through Kowloon and the New Territories and it also carries passengers and freight to and from China. Passengers for China change trains at the border.

In 1976 the railway operated 20 passenger trains and up to eight freight trains a day each way, apart from a short break following a tropical storm in August. The storm damaged the railway bridge over the Shing Mun River to such an extent that it had to be demolished and rebuilt. Services were quickly resumed on either side of the bridge and a shuttle bus service was used to carry passengers from one train to another. The bridge, which was damaged on August 25, was completely rebuilt and back in use on October 11.

To enable the railway to cope with the increasing volume of traffic, the busiest section of the line is to be double-tracked. The stretch from Hung Hom to Sha Tin is being dealt with first. At the same time, existing semaphore signals are being replaced by more efficient coloured light signalling and rails are being welded into continuous lengths to provide smoother and quieter journeys and to enable the use of machines for track maintenance.

Installation of air-conditioning in four first class coaches was commenced during the year. If results show that there is sufficient demand, more coaches will be air- conditioned.

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       At the Hung Hom terminus, construction work began in November on the new $43-million international mail centre. Work was completed earlier in the year on the centre's loading bay, railway platform and store. The construction of a marshalling yard at Lo Wu was begun, and goods trains arriving from China will be marshalled at the new yard in 1977. Work was also started on a goods siding at Fo Tan for unloading dry goods and oil from China. It was in 1974 that China began exporting oil to Hong Kong and since then the volume of oil consignments as well as other commodities has increased steadily. The railway handles the bulk of all goods and livestock imported from China by land.

      In the programme to expand and modernise the railway, plans are in preparation to replace Mong Kok and Sha Tin stations with larger modern stations and to build a loop line to the new racecourse which is being built at Sha Tin. Other projects now being studied include electrification of the line; the building of an interchange station with the mass transit railway system at Kowloon Tong; provision of a line to the Kwai Chung container terminal to convey goods arriving from China to the terminal for re-export; and the provision of lines to Tuen Mun and the industrial estate now being constructed at Tai Po.

Civil Aviation

      At Hong Kong International Airport at Kai Tak, 1976 saw the completion of the new air cargo handling complex-one of the largest of its kind in the world. It is capable of handling 500 000 tonnes of freight a year.

The new complex was officially opened in May. It centralises the handling of all air freight entering or leaving Hong Kong and enables cargo forwarders and handlers to collect or despatch cargo through various airlines and to complete the necessary documents at one central point. The main building has a total floor area of 38 090 square metres. It has been specially designed and equipped to handle cargo for freigh- ter aircraft and passenger-freight aircraft with an efficiency to meet steadily growing demands. The Civil Aviation Department has forecast that the volume of air cargo handled will increase by an average of 15 per cent a year up to 1980.

In 1975-6, some 25 per cent of Hong Kong's domestic exports and 30 per cent of re-exports-in terms of value-were carried by air. This amounted to $8,500 million-worth of goods.

The new complex is operated by Hong Kong Air Cargo Terminal Limited (HACTL), which is a consortium comprising several major local firms and the Hong Kong Government. To facilitate the work of cargo-handling agents and airlines, the government has built a six-storey office block adjacent to the HACTL complex for renting as freight offices.

Another major development at the airport was the commissioning in November of the secondary surveillance radar (SSR)-a computerised radar system which con- tributes to the efficiency of aircraft operations. The new equipment provides air traffic control staff with continuous information on aircraft identity, position and height in all weather conditions within a range of 250 miles. It minimises the use of radio tele- phone between air traffic controllers and pilots for exchange of data, since this is now

Communications

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Road and Rail

Road works and other engineering projects to improve travel communications have long been a feature of life in Hong Kong. But 1976 will always be remembered as the year that tunnelling got fully under way for the $5,800 million mass transit railway. The 15.6-kilometre modified ini- tial

System is due to be completed by 1980. Two other tunnels-for road traffic- reached their final stages in 1976. One of them goes under Hong Kong International Airport and is part of a traffic route along the eastern side of the Kowloon peninsula. The route also involves a series of elevated roads, and a similar traffic corridor is being built on the western side of the peninsula. The other tunnel is a twin to the existing Lion Rock tunnel, which links Kowloon with Sha Tin and other parts of the New Territories. When the twin tunnel goes into use, there will be two vehicle lanes in each direction. Also during the year, tenders were invited for the construction of the Aberdeen road tunnel, to provide a quick route between the north and south sides of Hong Kong Island. And throughout 1976, work con- tinued on the modernisation and expansion of the Kowloon-Canton Railway, which is being double-tracked on its busiest section.

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Previous page: The main work site the mass transit railway on Hong Kong. Island. Left, top to bottom: The second Lion Rock tunnel; the tunnel under the air- port; and the pilot tunnel which was drilled for the Aberdeen tunnel project.

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      Man-made caves under Diamond Hill în Kowloon dwarf the men who cut them for the mass transit railway (MTR).

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A ceremonial start to MTR work in Kwun Tong; and Hong Kong Cricket Club moves from Central before the MTR moves in,

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MTR derricks and cranes at work in Nathan Road, Kowloon, and in Chater Road on Hong Kong Island.

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'Cut-and-cover' methods are used for the MTR lines at Ping Shek and at the Lok Fu housing estate in Kowloon.

Workers cut their way through rock walls at Choi Shek Road, Kowloon, to link with the MTR tunnel in Choi Shek Lane.

This image is unavailable for access via the Network due to copyright restrictions. To view the image, please contact library staff for a printed copy of the copyright work.

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     Supports for one of the elevated roads which will together form the West Kowloon traffic corridor stretching from Yau Ma Tei to Lai Chi Kok.

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Extension work on Ching Cheung Road, linking the industrial townships of Kwun Tong and Kwai Chung.

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Double-tracking work on the Kowloon-Canton Railway at Sha Tin, to enable the railway increasing volume of traffic.

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displayed on the radar screen. The SSR significantly reduces the workload of the controllers and increases accordingly the capability of the air traffic system. It also helps to augment and reinforce the primary radar system in use at the airport.

Introduced at about the same time as the SSR was the automated flight informa- tion display system (FIDS), which also employs a computer at its nerve centre to provide up-to-the-moment flight information in the passenger terminal building. All information concerning incoming or outgoing flights is fed into the computer, processed and relayed as required to a number of strategically positioned display flapboards and TV monitors. The information on display includes the flight number, point of departure prior to Hong Kong, next destination, estimated and actual time of arrival or departure, and flight status-such as delays or diversions and the reasons. Details of up to 40 flights can be displayed simultaneously on each flapboard, and 36 on the TV monitors. Flight schedules for a whole season can be stored in the memory system and displayed as and when required. All details can be readily updated, and the computer is programmed to erase automatically any unwanted information.

To complement this information system, illuminated guidance signs are to be introduced to show passengers the way to the aircraft, transit lounge, customs, im- migration, baggage reclaim areas and other points.

Responsibility for the management and development of Hong Kong International Airport rests with the Civil Aviation Department. An extension to the passenger terminal building is being constructed in order to overcome congestion caused by unforeseen numbers of passengers. The building was designed to handle only 2,200 travellers an hour and it now has to cope with more than 3,000 people an hour during peak periods. When the extension is completed in 1977, it will double the size of the terminal and will increase the passenger handling capacity to about 5,000 people an hour. Also included in the extension project is the construction of a platform upon which a multi-storey car park will be built at a later stage.

The strategic position of Hong Kong at the hub of the air route network of Southeast Asia makes the airport of considerable economic significance to the ter- ritory. Although it is one of the smallest international airports in the world-covering only 222 hectares-it is one of the busiest in Asia. It provides swift air links with the world's major centres of commerce, industry and tourism. More than 900 scheduled services are operated each week by about 30 international airlines. In addition, a significant number of non-scheduled passenger and freight charter flights are operated.

Shipping

       The Kwai Chung container terminal was completed in 1976 after four years of use and continuous growth. Now having the capacity to handle up to the equivalent of 1.5 million 20-foot containers a year, the terminal ranks fourth in the world and second in Asia. There are six berths totalling more than 6,000 feet giving onto about 150 acres of cargo handling space, which includes container yards and container freight stations. Up to six 'third-generation' containerships can be simultaneously accom- modated and worked at these berths, all of which are operated by private companies or consortia.

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        The terminal is located in the north-western part of Victoria Harbour-one of the most perfect natural harbours in the world, varying in width from one to six miles and having an area of 23 square miles. Besides its container handling capacities, the port caters for all the requirements of modern shipping. Hong Kong is prominent as a pivotal port in Southeast Asia, there being a considerable 'feeder' trade conducted principally with ports in Taiwan and the Philippines. The port is state-owned and is administered by the Director of Marine. He is advised by the Port Executive Com- mittee on the shipping, commercial and other changing needs of the port. There is a Port Committee which similarly advises the Governor.

In the year 1975-6, some 7,500 calls at Hong Kong were made by ocean-going vessels. The total deadweight tonnage of cargo imported and exported through the port was more than 19.2 million tons. This included some 11 million tons of general goods, 51 per cent of which was containerised cargo. While the tonnage of cargo carried in containers continues to increase, a considerable amount of dry cargo handled in Hong Kong is still transported at some stage by about 2,000 lighters and junks. The ratio of mechanised junks increases annually, now amounting to 43 per cent of the total. Shipboard cargo gear is normally used for loading and discharging cargo alongside wharves or in the stream, but floating heavy lift cranes are available when required. Modern equipment which helps to achieve the rapid turnround of ships has been brought into use by the wharf and godown companies. A new mobile floating roll-on/roll-off ramp is now being used by one of the Kwai Chung container terminal operators. Nearby, at Tsuen Wan, a new 16-storey godown has been opened with a usable floor area of 1.5 million square feet. This godown is equipped with container lifts which serve all floors.

Most wharves and terminals are provided and operated by private enterprise and they are capable of accommodating vessels of up to 1,000 feet in length with draughts of up to 40 feet. Facilities in the public sector include the Hong Kong-Macau ferry terminal and the public cargo working areas at Wan Chai and Yau Ma Tei, which are administered by the Marine Department. Government policy calls for the con- tinued provision of public cargo working areas throughout Hong Kong so as to keep internal cargo movements swift and efficient.

        Within the harbour there are 70 mooring buoys operated and maintained by the Marine Department for ocean-going vessels. Of these buoys, 42 are suitable for vessels of up to 600 feet in length and the rest for ships of up to 450 feet in length. The moor- ings include 64 special typhoon buoys which are located so that ships can remain secured to them during tropical storms. This obviates unnecessary ship movements, so helping to maintain efficiency and reduce operational costs. During the year, a major relocation programme affecting the majority of these buoys was undertaken and com- pleted. Safe anchorages are available for deep draught vessels.

There is considerable tourist and other sea passenger traffic between Hong Kong and Macau, and facilities at the Hong Kong-Macau ferry terminal on Hong Kong Island have been expanded and improved. Two new jetfoils are now in operation and they are capable of speeds of up to 45 knots. In 1976 more than 4.5 million passengers were carried by jetfoil and traditional ferry on this route.

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For ships calling at Hong Kong, quarantine and immigration facilities are avail- able on a 24-hour basis at the Western Quarantine Anchorage and from 6.30 am to 6 pm at the Eastern Quarantine Anchorage. Ships are normally cleared inwards on arrival and large passenger vessels are processed en route to their allocated berths. Advance immigration clearance and radio pratique may be obtained by certain vessels on application.

       During the year a major realignment of harbour fairways was completed and dredging was undertaken to improve access to the harbour area for deep draught vessels entering via the western approaches. This dredging was undertaken in order to compensate for the effect that the laying of the mass transit railway's immersed tube tunnel across the harbour will have upon marine traffic in the central harbour areas. On January 1, 1976, traffic separation schemes were established in the eastern and western approaches to the port.

       Pilotage in Hong Kong is not compulsory but is considered advisable in view of the density of traffic and the scale of harbour works continuously being undertaken. The pilotage authority in Hong Kong is the Director of Marine.

Navigational aids in the harbour and approaches are constantly being improved to ensure greater safety. All fairway buoys are lighted and many beacons are fitted. with radar reflectors. Marine Department signal stations at Waglan Island, Green Island and North Point, and the Port Communications Centre, are all inter-connected by telephone, radio-telephone and teleprinter circuits. The Marine Department operates a continuous vhf radio-telephone port operations service based on Hague Plan frequencies, which gives comprehensive marine communications throughout the harbour and approaches. There is also a continuously monitored disaster network which links the Marine Department's Search and Rescue Co-ordination Centre with the Islander aircraft of the Royal Hong Kong Auxiliary Air Force and with military helicopters, Marine Police launches, Fire Services launches and other similar facilities. In the event of a vessel getting into difficulties in the South China Sea within about 800 miles from Hong Kong, the Marine Department is able to act as a rescue co- ordinating centre. In October the government agreed to a proposal to employ con- sultants to study and make recommendations for improved surveillance in Hong Kong waters.

       Surveillance of shipping, fairways, typhoon shelters and cargo working areas is undertaken by Marine Department launch patrols. The launches are in continuous radio contact with the Port Communications Centre, enabling the centre to initiate and co-ordinate any action required by unusual circumstances. A fleet of modern fire-fighting vessels operated by the Fire Services Department is kept in a state of readiness and units are stationed on both sides of the harbour.

       Good bunkering facilities are provided in the port and vessels may be supplied with fuel oil either from the wharves at the oil terminals or from a fleet of harbour oilers. Fresh water is obtainable at commercial wharves or from water boats which service vessels at anchor or at government mooring buoys. A harbour phone service is available either at buoys or at wharves.

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        There are extensive facilities in Hong Kong for the repair, maintenance and dry- docking or slipping of all types and classes of vessels of up to 35,000 tons deadweight and up to 750 feet in length and 88 feet beam. The government is considering proposals to expand some of these facilities and to transfer them from the central harbour area to a new location on the west coast of Tsing Yi Island, and also to establish new facilities there. There is already a floating dry dock off Tsing Yi with a lifting capacity of 100,000 tons deadweight. Hong Kong has more than 130 minor shipyards equipped to undertake repairs to small vessels. These yards also build specialised craft, particu- larly sophisticated pleasure craft and yachts.

       Hong Kong is a prominent centre for recruiting seamen and more than 26,000 Hong Kong seamen serve on board some 1,440 foreign-going vessels of various nationalities. The Seamen's Recruiting Office and the Mercantile Marine Office register and supervise the employment of seamen on board vessels of all flags. The Mariners' clubs in Kowloon and Kwai Chung provide recreational and welfare facilities of a high standard for visiting seamen of all nationalities.

        In September Hong Kong hosted a United Nations Economic and Social Com- mission for Asia and the Pacific (UN/ESCAP) seminar on port development for unit loads and containerisation. People from 13 countries took part. Also during the year, the United Nations Commission for Trade and Development (UNCTAD), assisted by the Hong Kong Government, sponsored port training fellowships to Hong Kong for trainees from Thailand.

Roads

Some $196.7 million was spent on construction of major highway projects and $49 million on improvements and maintenance in 1976. The total length of roads maintained by the government at the end of the year was 1 085 kilometres, com- prising 342 kilometres on Hong Kong Island, 325 kilometres in Kowloon and 418 kilometres in the New Territories.

On Hong Kong Island, projects completed during the year included the widening of Shek Pai Wan Road to improve road communications between Pok Fu Lam and Aberdeen; the construction of a new road for the Hing Wah public housing estate; and the erection across Queen's Road East near Wah Yan College of a steel footbridge for pedestrians particularly children attending the adjacent schools. Work was begun early in the year on the widening of Pok Fu Lam Road between Mount Davis Road and Queen Mary Hospital and the construction of a new road linking Hollywood Road and Queen's Road Central. Other projects started included the construction of the Canal Road flyover extension to improve traffic conditions in the Morrison Hill area and also to provide the northern approach to the proposed Aberdeen tunnel; junction improvement schemes at the upper and lower ends of Garden Road to improve the traffic flow between Central and Mid-Levels districts; the reconstruction of Queen's Road East; and the improvement of the signal-controlled junction of Stubbs Road with Queen's Road East. Consulting engineers carried out detailed designs for the Tai Hang Road flyover, the Robinson Road/Old Peak Road/Glenealy interchange complex, and Stage I of the eastern corridor project from Causeway

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Bay to Shau Kei Wan. Consultants were also appointed in connection with the Ap Lei Chau bridge and approach roads project, which will link Aberdeen with the island of Ap Lei Chau.

In Kowloon, the opening of the Piper's Hill and Nam Cheong Street interchanges, together with the extension and reconstruction of Ching Cheung Road, marked the substantial completion of the primary distributor route linking the two industrial townships of Kwun Tong and Kwai Chung. Other projects carried out included the extension of Austin Road to provide direct access from Chatham Road to the new railway terminus at Hung Hom. This is accomplished by an elevated road over the cross-harbour tunnel toll plaza. Road works to facilitate the traffic diversions necessary for the construction of the mass transit railway were completed by means of several major contracts which included the widening of Kwun Tong Road, the extension of Wai Yip Street to Cha Kwo Ling Road, the construction of Wai Yip Street across Kowloon Bay reclamation with a four-lane flyover connection at Kwun Tong Road, and diversion of utilities at the Lai Yip Street and Hip Wo Street junctions on Kwun Tong Road. The provision of two major traffic routes-one on either side of the Kowloon peninsula-is being actively pursued. The West Kowloon corridor will comprise a series of elevated roads stretching from Yau Ma Tei to Lai Chi Kok. It is being implemented in stages and, in Stage I, work was well advanced by the end of the year on the construction of the western section of the 1 300-metre elevated road from Gascoigne Road to Ferry Street. The East Kowloon way involves another series of elevated roads and an underpass to connect the cross-harbour tunnel with Kwun Tong via the airport tunnel road. The tunnel structure under the airport's runway was completed during the year and work was begun on the western approach, including the San Shan interchange, while a new road was being constructed on Kowloon Bay reclamation as the eastern connection. Along the waterfront at Tsim Sha Tsui, satis- factory progress was made in the construction of a 1 000-metre long extension of Salisbury Road. The reconstruction of Lung Cheung Road also progressed smoothly and new roads were constructed in conjunction with industrial development in Cheung Sha Wan. Detailed planning and investigation was carried out in connection with a proposal to provide an interchange at the junction of Waterloo Road/Junction Road/ Cornwall Street.

        In the New Territories, work continued on the construction of the 15.3-kilometre Stage I of a motorway between Tsuen Wan and Tuen Mun, which is expected to be completed by the end of 1977. Nearing completion was the construction of a railway bridge and the re-alignment of Tai Po Road at milestone 174 and the duplication of the existing road bridge across the Shing Mun River. Works started during the year included the improvement of Tai Po Road from Ho Tung Lau to the causeway level crossing at milestone 15; the widening of Ting Kok Road from Tai Po Market to Ha Hang; the construction of the second carriageway of Lion Rock Tunnel Road from the toll plaza to Sui Lek Yuen Road; a flyover across Kwai Chung Road to link Kwai Chung development areas 10 and 11; a footbridge over Castle Peak Road near Chung On Street; and phased improvements to South Lantau Road from Cheung Sha to Keung Shan. About 2 000 metres of carriageway and 5 000 metres of storm- water drains and sewers were constructed in connection with the development of Kwai

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Chung. Roads and drainage works for various phases of the public housing estates at Lai King and Kwai Shing were completed, while those at Ha Kwai Chung were well advanced. Detailed planning and investigation was carried out for the improve- ment of Clear Water Bay Road from Pik Uk to Hiram's Highway; the reconstruction of Cedric Bridge at milestone 16 on Castle Peak Road; a grade-separated intersection at the junction of Castle Peak Road and Texaco Road; the Tsuen Wan by-pass scheme from Kwai Chung Road to Texaco Road; and the Tai Wo Tsuen interchange on Castle Peak Road.

Traffic management techniques are applied to make the best use of the existing road network, and during the year schemes for clearways and other restrictions on kerbside activities by certain classes of vehicles were introduced on many of the main traffic routes. Plans were also made for a comprehensive traffic management scheme for the North Point area, the linking of the traffic light signals in King's Road and improvements to the bus and public light bus terminal facilities. In western Kowloon, a computerised traffic control system reached the final stages of installation and testing. When it becomes operational in 1977, it will enable a central computer system to control about 85 sets of traffic signals in this busy commercial and tourist area. It will effect a general improvement in traffic flow and will also provide facilities for automatic collection of traffic data and automatic fault reporting. An important feature of the system is that it will be able to provide priority for fire appliances leaving the four fire stations in the area. In all parts of Hong Kong, good progress was maintained on the installation of traffic light signals at road intersections and pedestrian crossings, and 324 sets were in operation at the end of the year. The street lighting system was also expanded, with 1,559 new lamps being installed during the year.

In the field of transport planning and surveys, consulting engineers completed their work on the Hong Kong Comprehensive Transport Study. This will assist in forecasting transport requirements up to 1991. Traffic studies were also carried out on the proposed Sha Tin/Tsuen Wan route connection to the Tsuen Wan by-pass, the possible extension of the Kowloon-Canton Railway to Kwai Chung, the western approaches to the airport tunnel road, pedestrian movements in Central District, and the effect of the new railway terminus on pedestrian and vehicular circula- tion at Hung Hom. Planning, investigation and consideration of the economic, practical and environmental implications of the New Territories trunk road system continued.

A multi-disciplined traffic management group set up in 1973 to plan, co-ordinate and implement the traffic management schemes necessary to facilitate the construction of the mass transit railway completed the first stage of its task early in 1976, when traffic diversions were successfully implemented to enable contractors to occupy their sites on Nathan Road, Kowloon, and in Central District on Hong Kong Island.

Road Tunnels

Hong Kong has two road tunnels in operation-the cross-harbour tunnel and the Lion Rock tunnel. Work on a duplicate parallel tunnel at Lion Rock is now in

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the finishing stages; the structure of a tunnel under the international airport was completed in 1976; and tenders were invited during the year for the construction of the Aberdeen tunnel.

The Lion Rock tunnel, opened in 1967, was Hong Kong's first road tunnel. It links Kowloon with Sha Tin and other parts of the New Territories and, when the twin tunnel is completed, there will be two vehicle lanes in each direction. The tunnel is managed by the Transport Department. In 1976 it was used by 5.2 million vehicles and revenue from toll fees-which vary from $1 to $2―totalled $6.1 million. The second tunnel is being built in order to cope with anticipated traffic to and from Sha Tin new town and other developing areas. Like the first, it will also carry water mains from the Sha Tin treatment works to Kowloon.

The cross-harbour tunnel, opened in 1972, is a $320-million project operated by the Cross Harbour Tunnel Company, in which the government has a 25 per cent interest. In 1976 some 18.2 million vehicles used the tunnel and revenue from toll fees amounted to $113.8 million. The fees vary from $2 for motor cycles to $20 for heavy goods vehicles.

        The airport tunnel will form part of a traffic route along the eastern side of the Kowloon peninsula, stretching from the cross-harbour tunnel to Kwun Tong.

        On the other side of the harbour, the Aberdeen tunnel will provide a direct route between the northern and southern parts of Hong Kong Island, and will also connect with the route to the cross-harbour tunnel.

Traffic Congestion

        The improvement in the economy in 1976 resulted in an increase in the number of vehicles licensed and there are now 283 vehicles for every mile of road.

        Throughout the year, extensive traffic diversions had to be introduced in Central District on Hong Kong Island and in Kowloon to provide work sites for the mass tran- sit railway. This necessitated some road closures, restrictions on vehicles stopping, and the establishment of bus-only lanes. The arrangements worked as well as could be expected but in Hong Kong's crowded conditions any loss of road capacity has an immediate effect on traffic flow.

        Outside the urban area, driving conditions improved with the construction of new roads, but on Sundays and public holidays traffic is a serious problem on the roads leading to bathing beaches and other leisure areas.

Parking

       The government provides off-street parking facilities in eight multi-storey car parks and in five temporary open-air car parks, two of which cater for commercial vehicles. The multi-storey car parks have a total capacity of 5,500 vehicles, while there are 1,570 spaces in the temporary car parks. There are plans to build more government car parks.

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       There are also off-street parking facilities operated by private enterprise in 11 multi-storey car parks with spaces for 6,000 vehicles-mostly in the commercial/ residential areas of Causeway Bay, North Point, Tsim Sha Tsui, Mong Kok and San Po Kong. More are being built or planned.

        On-street parking spaces are provided where they do not cause any traffic obstruction. In areas with limited available spaces but with high demand, the spaces are metered to deter long-term parking. There are about 11,000 metered spaces and payment is required from 8 am till midnight. In many areas parking is controlled by traffic wardens who, with the police, operate a fixed penalty ticketing system for parking offences.

Public Transport

       Hong Kong has a comprehensive public transport system comprising omnibuses, light buses, ferries, trams, taxis and trains. Hong Kong Island is served by the China Motor Bus Company (CMB), Hongkong Tramways and the Peak Tramways Company, while Kowloon and the mainland part of the New Territories are served by the Kowloon Motor Bus Company (KMB) and the Kowloon-Canton Railway. Both CMB and KMB also operate joint cross-harbour services using the cross-harbour tunnel. The New Lantau Bus Company operates on Lantau Island. A network of cross-harbour and outlying island ferry services is run by the Hongkong and Yaumati Ferry Company, while the Star Ferry Company operates cross-harbour services from Central to Tsim Sha Tsui and Hung Hom. Passenger traffic carried by each of the undertakings during the past three years is listed in Appendix 36.

Buses

        Public omnibus services in Hong Kong are operated under franchise. The three private companies provide services on specified routes with schedules of service laid down by the Transport Department covering route, timetable, faretable, journey distance, journey time and vehicle allocation.

       The Kowloon Motor Bus Company operates services throughout Kowloon and the mainland area of the New Territories as well as 14 joint services through the cross-harbour tunnel with the China Motor Bus Company on a pooled mileage basis. With continued fleet expansion and the introduction of new routes, the company carried an all-time record number of passengers during the year and operated 70 million miles. Average daily passenger traffic rose by 13 per cent to 2.0 million and 16 additional routes were introduced, making a total of 150 routes. All fares remained unchanged. The services include 15 express coach routes, two of which operate to and from the international airport at Kai Tak. These coach services all have guaranteed seating and are intended as an attractive alternative to private transport. They carried an average of 26,513 passengers a day throughout the year. The company's licensed fleet was increased from 1,560 to 1,700 vehicles, comprising 1,202 double-deck buses, 396 single-deck buses and 102 coaches. Some 82 per cent are now one-man operated, using an exact fare system. The new vehicles increased the total carrying capacity by 10 per cent to 154,537. At the end of the year the company had on order

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or under construction 323 double-deck buses and 21 single-deck buses for progressive addition to the fleet.

        The China Motor Bus Company operates services on 66 routes on Hong Kong Island as well as the joint services with KMB through the cross-harbour tunnel. The company has a fleet of 671 double-deck and 31 single-deck vehicles, 99.7 per cent of which are now one-man operated. In 1976 they carried an average of 629,934 passengers a day compared with 591,129 in 1975. The company operated 26.4 million miles and introduced eight new routes to meet traffic demands. Progress continued with converting single-deck buses to double deckers and the total carrying capacity in- creased by 15 per cent to 63,758. At the year end, the company had on order or under construction 133 double-deck buses. Traffic management schemes were introduced in Central and North Point to improve bus operating speeds. In March 1976 there was a fare increase-averaging 50 per cent-on CMB routes other than cross-harbour routes. The fares now range from 30 cents to one dollar.

        On the cross-harbour bus routes, the two companies carried an average of 311,087 passengers a day-32 per cent more than in 1975. The annual mileage operated increased by 18 per cent to 12 million miles.

        On Lantau Island, the New Lantau Bus Company operates along 18 miles of road, much of which is single lane with passing bays. Recreational traffic demand on Sundays and public holidays is 150 per cent greater than the average weekday passenger traffic of 3,587. During the year, 877,419 miles were operated on five routes. using 44 single-deck buses.

An estimated 1.6 million passengers a day are carried by 14-seater public light buses, or minibuses, compared with an estimated 2.6 million passengers carried daily by the franchised bus services. There were 4,346 minibuses registered at the end of the year. They may ply for hire anywhere except on roads or in areas where prohibi- tions or kerbside stopping restrictions apply. As minibus drivers tend to stop indis- criminately and obstruct traffic flow, more restricted and prohibited zones have had to be introduced. An increasing number of minibus operators are showing interest in providing feeder routes over roads generally unsuitable for conventional full sized buses. Six 'maxi-cab' feeder routes with fixed fares and stopping places are now in operation on Hong Kong Island carrying 9,973 passengers daily.

       Coaches for sightseeing tours and school and factory buses are operated by a number of companies, while some schools and factories provide their own private omnibus and light bus services. At the end of 1976 the number of vehicles licensed for these purposes totalled 2,718.

Trams

       Hongkong Tramways operates five services over 19 miles of track along the north shore of Hong Kong Island between Kennedy Town and Shau Kei Wan. During the year the company's fleet of 162 double-deck tramcars and 22 single-deck trailers carried 128 million passengers and covered 6.2 million miles. This represents the highest utilisation of any road passenger transport service in Hong Kong. Each

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     car carried an average of 2,162 passengers a day. To improve operating speeds and reduce vehicular conflicts, tram tracks have been segregated from traffic lanes along the realigned Queensway leading to and from Central District, through which the maximum frequency is one tramcar every 33 seconds in each direction. Reserved track has also been established at four other locations to improve tram operating speeds.

        The Peak Tramways Company operates a funicular tram service stopping at five intermediate stations between Garden Road and Victoria Peak-1,305 feet above sea level. It is the second steepest funicular railway in the world, using steel wire ropes as its sole means of haulage, with the steepest gradient being 1 in 2. Each tramcar is capable of carrying a maximum of 72 people. The service started in 1888, and during 1976 the tramcars carried a total of 1.8 million passengers.

Ferries

       The major ferry services in Hong Kong are provided by two private companies operating in accordance with ordinances granting operating rights on specified routes.

       The Hongkong and Yaumati Ferry Company operates passenger and vehicular ferry services on 17 cross-harbour routes and 22 routes to the New Territories and outlying islands. It has a fleet of 89 vessels, comprising 12 vehicular ferries, eight triple-deck passenger ferries, 40 double-deck ferries, 24 water buses and water taxis, and five hoverferries. There were four new services introduced during the year, in- cluding two to the New Territories and outlying islands. On certain routes, passengers now have a choice between hoverferry or conventional ferry services at different fares reflecting the value of time saving. The hoverferry service between Central and Tsuen Wan is very popular with commuters. In 1976 the cross-harbour services carried 119 million passengers-7.4 per cent less than in the previous year. The New Territories and outlying islands services carried 16.5 million passengers, an increase of 8.9 per cent. The three vehicular ferry routes carried 3.5 million vehicles and 6.5 million passengers. The entire fleet had a carrying capacity of 48,163 people and 608 vehicles. On September 1, fares on most of the cross-harbour passenger services were standardis- ed at a flat 30 cents.

       The Star Ferry Company provides passenger ferry services across the harbour from Central to Tsim Sha Tsui and Hung Hom. During the year the company's fleet of 10 vessels carried 50.7 million passengers, compared with 53.2 million in the previous year. Fares remained unchanged.

Taxis and Public Hire Cars

       On Hong Kong Island and in Kowloon there are 4,754 licensed taxis which carry an estimated 563,000 passengers a day. They operate at a standard fare of $2 for the first mile and 20 cents for each subsequent fifth of a mile. In August, new legislation introduced a new class of taxi for the rural areas of the New Territories and by the end of the year 240 vehicles had been licensed in this class. The standard fare is $1 for the first mile and 20 cents for each subsequent fifth of a mile.

       Public hire cars are available for hire on a pre-arranged basis with the charges being negotiated between the hirer and the operator. On December 31 there were

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      1,322 licensed public hire cars, many of them owned by hotels for the exclusive use of their guests.

Transport Administration

A government-appointed Transport Advisory Committee advises the Governor in Council on broad issues of transport policy, with a view to improving the movement of people and freight. The Commissioner for Transport is the statutory authority responsible for planning and regulating public transport services. His wide range of responsibilities also covers vehicle licensing, driving tests, vehicle inspections, and statutory functions under the Road Traffic Ordinance or legislation relating to indi- vidual public transport companies.

During the year a number of amendments were made to road traffic and transport legislation relating to new braking standards for trailers, the use of motor cycles on footpaths, the fitting of seat belts to the front seats of private cars, franchises for public light buses, third party insurance, anti-pollution standards for diesel- engined vehicles, and the control of smoke emission.

At the Transport Department's vehicle examination centre, 40,785 vehicles were inspected during the year.

Licensing

The number of registered vehicles which dropped in the two previous years- rose to 191,746 in 1976. This was 3,728 more than in 1975. Vehicle statistics are given in Appendix 36. Driving licences remained in steady demand, with the number at the end of the year reaching 522,469 compared with the previous year's 498,274.

An on-line computer system for driver licensing was brought into operation. This has enabled motorists to have their licence documents processed within minutes over the counter. The system has also assisted in maintaining accurate records of licensed drivers and it provides almost instant information from records. The com- puter system for the registration and licensing of vehicles is at an advanced stage of preparation and is expected to be implemented in 1977. A related system of fixed penalties for certain driving offences, which is administered by the Royal Hong Kong Police, came into operation during the latter part of the year.

Courses are held at the Transport Department's Indoor Driving Instruction Centre to improve the general standard of driving. Trainees are taught basic driving techniques with the aid of 16 driving simulators, films and a computer controlled panel before they have private driving instruction on the road. At the end of the year, 8,310 people had attended such courses since the centre was opened in 1974.

14

The Media

HONG KONG has a free press comprising 358 publications, and newspaper readership figures put the population among the world's most avid readers.

         There are three commercial television stations which reach an estimated three million viewers a day, and two radio stations which broadcast on seven channels in both English and Chinese. The price of a radio or television in Hong Kong is believed to be the lowest in the world and no licence is required for either. In most cases, the price of newspapers remains a mere 30 cents.

Press

       Newspapers account for 118 of the 358 publications now registered with the Registrar of Newspapers. Some 350 copies of newspapers are printed for every 1,000 people in Hong Kong. In Asia, only Japan exceeds this figure, with 490 copies to every 1,000 people. The world average is 109 per thousand people.

Hong Kong's newspapers include four English dailies and 103 Chinese language papers. The combined daily circulation of the English language papers is estimated at 115,000, while the Chinese newspapers have an estimated circulation of 1.4 million. Four of the Chinese dailies sell more than 100,000 copies each.

The number of English dailies was increased to four on September 1 with the publication of the Asian Wall Street Journal. The paper covers Asian and international business, economic and financial news, and it is unique among the local print media in that it uses satellite transmissions in its electronic communications system.

        Periodicals represent a main sector of the press. There are 240 periodicals-171 Chinese, 47 English and 22 bilingual. These magazines cover a wide range of subjects, from specialist technical journals to local entertainment guides.

The Hong Kong Journalists Association, established in 1968, has a membership of 600. It seeks to raise professional standards by pressing for better training of journalists and also counsels its members involved in dispute with employers. The association has a six-point code of ethics. In recent years it has conducted com- petitions to encourage young journalists to improve their skills and eight competition winners have been sent on overseas trips to study media developments.

An off-shoot of the association is the Hong Kong Press Club in Wan Chai which provides social and working facilities for journalists. Informal discussions between journalists and people in the news are organised regularly at the Press Club.

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Chinese and English language newspapers are represented by the Newspaper Society of Hong Kong, which has 14 members and three associate members. It is em- powered to act in matters affecting the interests of local newspapers, the society or its members.

The activities of the local office of the Press Foundation of Asia (PFA) include consultations with other organisations to help them in the development and expansion of the press in Asia. The PFA is an association of Asian publishers and editors representing 300 publications. It co-ordinates the functions of seven national press institutes from New Delhi to Korea.

Hong Kong is the base of Southeast Asian operations for many international radio and television networks, newspapers and magazines. International news agencies represented include Reuters, Associated Press of America, United Press International, Agence France Presse, Kyodo, and Jiji Press.

Printing and Publishing

Hong Kong is an important printing centre which handles work from many parts of the world-particularly from Australia, Britain and the United States. Australians are said to read more books per head than any other nation, and about half of all the books published in Australia are now printed in Hong Kong.

The main attraction is that top quality printing is available at substantial savings over other places, and there are also excellent distribution and communication facilities readily available. In 1976 exports of printed matter amounted to some $212 million as compared with $99 million in 1971.

There are some 1,200 printing firms and about a quarter of them are responsible for the bulk of production. They run highly efficient offset printing works operating with machinery imported mainly from West Germany and Japan. Many specialise in printing books, glossy magazines, textbooks, calendars and diaries, while others concentrate on wrappings and industrial packaging. The standard of offset printing is high, with printing and illustrative production techniques comparing favourably with those of the world's leading printing nations. Electronic colour-engraving machines are widely used and colour separation technique is good. Two and four- colour printing machines are widely used and leading printers introduced eight- colour rotary and web-offset machines as early as 1962.

        The other 75 per cent of printing firms use the letterpress method and generally produce small-scale printing such as letterheads, posters, wrappers, and some text- books.

        Since the 1960s many overseas publishers have set up offices or regional headquarters in Hong Kong. Educational book publishers who have done so include Heinemann Educational Books, the Oxford University Press, McGraw-Hill Far East- ern Publishers, and IPC of London-which has set up regional headquarters to handle the interests of its subsidiaries. The Asian editions of Time, Newsweek, and more than half a million copies a month of Reader's Digest are printed in Hong Kong.

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Television

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        Hong Kong has three enfranchised commercial wireless television stations- Television Broadcasts, Rediffusion Television, and Commercial Television. They are usually referred to as TVB, RTV and CTV. The first two operate both Chinese and English language channels, while CTV operates a single Chinese channel.

        All three stations maintain well equipped studio and office complexes, using the latest production and transmission facilities and techniques. The UHF, 625-line PAL colour system is standard and virtually all transmissions are in colour.

Between them the stations broadcast about 60 hours of programmes each day, reaching an estimated three million viewers. It is also estimated that 90 per cent of all homes in Hong Kong have television sets, of which 39 per cent are colour.

        The most popular programmes are the locally-produced drama and variety series. The dramas range from costumed period plays with large casts based on historical events to fast-moving contemporary criminal thriller series. Variety productions include hour-long entertainment spectaculars, often set in outside locations, and a range of studio productions. Imported programmes from many parts of the world are shown either in the original language or dubbed into Cantonese.

       An important development during the year was the introduction of satellite relay news transmissions by TVB and RTV to improve their already comprehensive news programmes. The Olympic Games were transmitted live from Montreal by satellite relay. Similarly, the 1976 Miss Universe Pageant, which was held in Hong Kong and co-sponsored by TVB, was transmitted to an estimated audience of 500 million people by satellite.

        The television stations are licensed to operate under the provisions of the Television Ordinance, which is administered by the Television Authority. The Com- missioner for Television and Films is responsible for the regulation of the stations' licences and the issue and enforcement of the programme, advertising and technical standards required of the licencees. He is advised in these responsibilities by the Television Advisory Board.

        Much use is made of television in the spheres of education and public affairs programming. Under the Television Ordinance, the stations are required to provide transmission facilities for the schools programmes of the Educational Television Service (ETV), which until this year were produced by the educational television division of the Education Department. During the year the production facilities of the division were merged with Radio Television Hong Kong (RTHK), the government radio station which also produces a wide variety of public affairs television pro- grammes. An important development was the extension of ETV which enabled the production of programmes in colour for secondary schools in addition to those produced for primary schools. It is estimated that some 500,000 children now regularly receive education by television as part of their normal schooling.

Further educational programming is provided by CTV, which under the terms of its licence broadcasts a two-hour period of special instructional programmes each weekday evening. Commercial advertising is excluded from that period. Subjects covered have included automobile mechanics, book-keeping, interior design, and

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foreign languages. The lessons are supported by external tutorials and examinations. Less formal instruction was also provided during the year in such subjects as drawing and Ikebana.

       All three stations provide air-time for government-produced programmes. These include topical features and public service information messages supplied by the Government Information Services, but the majority of government programmes come from the television production unit of Radio Television Hong Kong.

       In 1976 the public affairs television programme output of RTHK was approxi- mately four hours a week, taking up a total of around 8 hours a week on the five commercial channels. The long-running 'Below the Lion Rock' series, a weekly story of people living in a housing estate, continued to command one of the highest viewer ratings of any programme in Hong Kong. It also repeated its 1975 achievement by winning another award at the Asian Broadcasting Union's Shiraz Film Festival. Among new RTHK programmes introduced during the year were 'Youth Call', a 30-minute programme for the young which incorporates the popular and well-estab- lished 'Junior Police Call', and a new 26-part documentary series. Fresh versions were also introduced of the weekly police report programme shown on all five TV chan- nels. The programme aims to inform and involve the community in the fight by the police against crime.

Sound Broadcasting

       Hong Kong's two sound broadcasting stations are Radio Television Hong Kong and Commercial Radio, which is associated with Commercial Television. RTHK, as the government radio station, is financed from general revenue and does not carry advertising. It has two English-language and two Chinese channels and broadcasts on both vhf and medium wave bands. The station is charged with producing radio and television programmes which inform, educate and entertain, and it operates under its own management.

       In 1976 RTHK produced nearly 450 hours of varied radio programmes a week- ranging from popular music shows to news and current affairs features. The station provides an hourly international and local news service, with the Chinese channels putting out 4 hours of news a day and the English channels three hours-including BBC world services relays. During the year news programmes were expanded to in- clude a daily current affairs segment.

       The growing political and commercial importance of Southeast Asia was reflected in the introduction of a current affairs programme covering the region as a whole, with correspondents in the major centres filing stories to the newsroom. The intro- duction on English-language radio of a sports magazine programme proved so successful that it quickly expanded to include live outside broadcasts, complementing the already established extensive sports coverage provided by the Chinese-language channels.

       At the beginning of the year RTHK introduced the first regular FM stereo service in Hong Kong. Many excellent locally produced stereo programmes were put out, notably the Hong Kong Oratorio Society's 'Messiah' and the Hong Kong Philharmonic Orchestra's concert with the violin virtuoso Itzhak Perlman.

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Community participation was a feature of the year's broadcasting, particularly in the Chinese channels' first amateur singing contest and in the radio drama competi- tion and the children's story telling competition. The many outside broadcasts in- cluded a number of the outdoor performances given by RTHK's opera and drama groups, which visited more than 100 centres to present live entertainment. In pro- moting the arts, the station began a series of programmes which provide young student musicians with the opportunity to perform and to have their works performed on air.

Commercial Radio broadcasts on three sound channels-two Chinese and one English. The role of the English service as a communications medium was emphasised in September when the popular open-line programmes were increased from three to five mornings a week. A wide variety of people from many walks of life are inter- viewed live on Saturday mornings. During the year the station introduced a new nightly programme specially for tourists. For two hours starting at 11 pm, it covers items of interest about Hong Kong, places to visit, and things to do. From 11.30 to midnight the programme is in Japanese for the benefit of Japanese visitors.

Outside broadcasts on sporting events in Hong Kong and overseas were featured throughout the year, those from overseas including the British Open Golf Champion- ships. Events covered locally included the opening ceremony of the Ready-to-Wear Festival and the opening of the fourth Hong Kong Arts Festival.

In the Chinese programme department, the second channel now broadcasts news every 30 minutes to cater for the increasing interest in news and current affairs. Both Chinese channels have increased their coverage of sports and finance, while dramas are being phased out to make way for more youth oriented programmes. The department is heavily involved in educational and other public service pro- grammes, and in 1976 it raised more than $300,000 to help some 3,000 students to buy textbooks.

Government Information Services

The Government Information Services forms a major link between the govern- ment, the people of Hong Kong and the rest of the world. The department is organised in three main divisions-news, publicity, and public relations-with certain services common to all three.

The news division is responsible for channelling to the media all government information, varying from statements on government policy and action to routine notices and weather reports. It is directly linked with all major groups of the media by its teleprinter and facsimile networks, which operate round the clock every day. As news in English is transmitted over the teleprinter network, news in Chinese is sent simultaneously over the facsimile transmitter.

The editorial desk is the hub around which the division's operation revolves. It produces a daily information bulletin in both Chinese and English for distribution to more than 120 newspapers, news agencies, and television and radio stations. This supplements the teleprinter and facsimile services.

Armed Services

815

Community Relations

The soldiers, sailors and airmen who serve in Hong Kong spend a good deal of time in community work-especially with young people, the under-privileged and the handi- capped, and with villagers in the remote areas and islands of the New Territories. Many isolated villages have electricity sup- plies, footbridges or children's playgrounds through the efforts of the Army, Royal Navy or Royal Air Force men who, while on routine duties, have seen the need for a helping hand. And there are many people living in the outlying areas as well as hikers and climbers-who because of ac- cident or illness have been taken to hospital by the RAF's Wessex helicopters. All three branches of the British Forces stationed in Hong Kong help to provide youngsters from all over the territory with a range of youth activities and training, and they regularly share their sports facilities with both adult and youth organisations within the community. The Army provides em- ergency fire fighting units for hill and forest fires and also gives engineering support and assistance at times of natural disasters. The Royal Navy works closely with the marine division of the Royal Hong Kong Police Force, while RAF helicopters fre quently help with civil engineering projects by lifting heavy equipment into position.

LIC

Previous page: On a tour of outlying dis- tricts, members of an Army patrol greeting villagers on Wong Yi Chau Island. Pictured left are scenes from the Trooping the Colour in celebration of the Queen's birthday.

      Gurkha dancers with flashing kukris are a colourful attraction at many variety shows and functions throughout the year.

The Army's emergency rescue unit is called out whenever an accident of any kind has occurred in a particularly inaccessible place. A two-man team-skilled in rock climbing and first aid-is landed by helicopter along

with an emergency rescue pack. The pictures-of a training exercise-show in sequence the landing of the

rescue pack and the team, and how they freed an 'accident victim' on the slopes of Tate's Cairn.

Royal Navy divers assist the Royal Hong Kong Police to recover a cache of drugs from Victoria Harbour.

This image is unavailable for access via thế Network due to copyright restrictions. To view the image, please contact library staff for a printed copy of the copyright work.

V

Navy Day at HMS Tamar saw Miss Hong Kong-Rowena Lam-helping the Royal Navy to raise funds for charity.

An RAF Wessex helicopter positioning heavy materials in a government project to supply electricity to Lion Rock upper village.

     The three Services combine to organise a youth leadership camp which includes lessons in rock climbing on Kowloon Peak ....

.. and an island survival exercise off Sai Kung in the New Territories.

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        The news division also operates an enquiry desk which deals day and night with queries, primarily from journalists, on various aspects of government work. A comprehensive press and reference library is maintained, which is used daily by many local and overseas journalists and by students.

        During typhoons, severe rainstorms, or any other emergency, the division is quickly transformed into a communications centre manned by teams of officers work- ing in shifts to keep the public informed, through the media, of up-to-the-minute developments. Liaison officers are also deployed to key departments directly involved to ensure an uninterrupted flow of information.

The GIS publicity division consists of three sub-divisions: publicity and market- ing, creative, and editorial and publications. Publicity and marketing sub-division handles the promotion of campaigns and the distribution of all publicity materials. Major publicity campaigns during the year included those on road safety, fire preven- tion, the methadone detoxification programme, and police recruitment. On behalf of the Urban Council, the sub-division also conducted clean beaches and clean buildings campaigns. The creative sub-division is responsible for all government films and photographic work, and also all design and display services.

        Editorial and publications sub-division produces the Hong Kong yearbook and a wide variety of government publications, which in 1976 included a booklet and several leaflets for the Commonwealth Finance Ministers' Meeting. Government publications for sale now number more than 2,000 titles and there are more than 80 sales outlets for these publications. The overseas publicity unit promotes Hong Kong abroad by supplying information and a variety of material direct to the media in other countries and also by helping overseas journalists and film-makers visiting Hong Kong.

        The public relations division as part of its responsibilities advises the government on public opinion as expressed in the news media and introduced in 1976 a new venture, a tabloid newspaper called the GIST. This review of the Chinese language media is prepared in English each morning and summarises comments made, and news items reported, by the Chinese newspapers and by the Chinese channels of television and radio. It is distributed to all senior officers of the government, enabling them to see at a glance what the media are saying and with what emphasis. Publication and distribution of the Hong Kong News Digest continues fortnightly for the Hong Kong Chinese overseas throughout the world.

       An information and public relations unit was set up in the Civil Aviation Department during the year, bringing the total number of departmental information units to 15. Several units, notably those of the Housing Authority and the Public Works Department, were expanded in order to improve further the two-way com- munication between the departments and the public.

        The information section of the Hong Kong Government Office in London works in collaboration with the Government Information Services. The section keeps the British media informed of all newsworthy developments in Hong Kong which come within the sphere of the government. It does this through a private national teleprinter network direct to newspapers, magazines and radio editors; through in-depth news

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THE MEDIA

releases sent by mail; and through personal contact with journalists. The London Office depends heavily on news and other information supplied by GIS-which sends a daily news round-up by telex and fuller details by airmail. Enquiries from the media are answered by the London Office information staff, though occasionally queries are referred to Hong Kong by the direct telex link with GIS.

In 1976 the information section of the London Office was responsible for the planning and organisation of a tour by the Hong Kong Schools' Chinese Dance Team, following its successful appearance in August at the International Festival of Youth Orchestras and Performing Arts, in Scotland. The team's post-festival tour included appearances in London at the Commonwealth Institute and the Court Theatre, Holland Park, and at the Chichester Festival Theatre and the Midlands Arts Centre For Young People, Birmingham. The team also danced before several thousand people at two open-air performances in Cambridge, one of which was on the lawn in front of King's College Chapel. The dancers appeared on national and regional television in Britain, and were given extensive coverage by the media.

Film Industry

Film making is a large industry in Hong Kong, which ranks among the world's main film producing countries in terms of the number of major productions filmed each year. Until recently the industry concentrated to a great extent on producing films in Mandarin for Chinese audiences in many parts of Asia, but there is now an increasing tendency to look more to the markets of the West and also to cater specifically for Hong Kong.

In 1976 the two major producers-Shaw Brothers and Golden Harvest-along with a few of the major independent producers, considerably extended the scope of their international operations, while cutting back to some degree on local productions. Multi-million dollar investments were made in films under production in other parts of the world; producers entered into commitments for high-budget co-productions involving major international film stars; and plans were made for the local production of Western-type films of internationally acceptable quality on a regular basis. At the same time, more overseas film makers made use of the relatively low-cost production facilities in Hong Kong, and a number of foreign feature films were shot in various parts of the territory.

       Following the trend in recent years, the number of cinemas in Hong Kong again declined and at the end of 1976 there were 83 cinemas in operation compared with 87 the previous year. Per-capita cinema attendances continued to be among the highest in the world and totalled 53 million for the year, compared with 54 million in 1975. The three top-grossing films of 1976 were 'The Private Eyes', 'Jaws' and 'Jumping Ash', with receipts of $7.5 million, $5.5 million and $3.9 million respectively.

All films intended for public exhibition in Hong Kong must be submitted to the Film Censorship Authority. Censorship standards are drawn from ascertained com- munity views and during the year amendment legislation was enacted to permit a greater involvement in film censorship by members of the public.

15

The Armed Services and Auxiliary Services

THE British Army, Navy and Air Force are all represented in Hong Kong under the overall command of the Commander British Forces, Lieutenant-General Sir John Archer.

        The Commander British Forces advises the Governor on matters affecting the security of Hong Kong and is responsible to the Chief of Defence Staff in London. The Armed Forces are stationed in Hong Kong primarily to assist the government in maintaining security and stability and to sustain confidence in the United Kingdom's intention to maintain the British position in Hong Kong.

       The size and composition of the garrison, and the contribution Hong Kong makes towards the cost of maintaining it, are determined by agreement between the Hong Kong and British governments. A new Defence Costs Agreement came into effect on April 1, 1976 and will run for seven years. Under its terms the garrison will comprise five Royal Navy patrol craft, one United Kingdom and three Gurkha infantry battalions, a Gurkha engineer squadron and a squadron of Royal Air Force Wessex helicopters, plus the necessary support elements. Britain has under- taken to reinforce these forces should the circumstances so dictate.

        The annual cost of the garrison is estimated to be $450 million at September 1975 prices, and of this the Hong Kong Government is to pay 50 per cent in 1976-7, 621⁄2 per cent in 1977-8, and 75 per cent in 1978-9 and the four subsequent years. The increase in contribution beyond 50 per cent is conditional on the Services releasing to the Hong Kong Government about 250 acres of land. For its part, the Hong Kong Government has agreed, where necessary, to reprovide the essential facilities in other Service establishments. As a result the Royal Air Force is to relinquish its station at Kai Tak and move to Sek Kong, where new facilities, due for completion by March 31, 1978, are being constructed; and Headquarters British Forces is to release Victoria Barracks by March 31, 1979, and move into a new tower block which is under construction in HMS Tamar. Two Army camps at Dodwells Ridge and Sai Kung were handed back to the government during 1976.

        The Defence Costs Agreement has resulted in a number of changes in the size and content of HM Forces, including the departure on March 31, 1976 of the frigate HMS Chichester. The Hong Kong Squadron of five patrol craft comes under the direct operational control of the Captain-in-Charge, Hong Kong, who also commands the naval base, HMS Tamar. The squadron acts in support of the government within the territory's coastal waters, working closely with the marine division of the Royal Hong Kong Police Force and other departments. A dramatic example of this co- operation occurred early in 1976 when Royal Navy divers assisted in recovering from the sea hidden drugs worth nearly $100 million.

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       The Royal Navy employs 440 locally entered Chinese ratings in various capacities, including cooks, stewards, technicians and seamen. But as a consequence of the 1975 United Kingdom Defence Review, by mid-1977 Chinese cooks and stewards will cease to serve in HM ships not based in Hong Kong. Although the proportion of Chinese ratings serving in the ships of Hong Kong Squadron will be increased, this decision will inevitably mean a reduction in the total employed. A further 598 locally recruited seamen and storehousemen serve worldwide in 11 ships of the Royal Fleet Auxiliary Service, which provides logistic support for Royal Navy ships. Laundering, tailoring, shoemaking and hairdressing facilities are provided for the fleet by 258 Hong Kong Chinese seagoing civilians. Also, within HMS Tamar, a workforce of 90 civilians is employed, mainly on clerical, storekeeping, transport and labour tasks.

       As part of a long-standing tradition, the Royal Navy provides much help to villagers in rural areas, particularly on the Sai Kung and Tolo peninsulas and the nearby islands. This has included general tasks such as the repair of footbridges and children's playground equipment, and also assistance in refurbishing generators and electric cables to restore power and light in Kat O, Ap Chau and Chek Keng. Social and welfare activities have included sea training days for boys from the Hong Kong Sea School and the Stanley Sea School, and assistance to local voluntary organisations with medical and dental treatment.

       The Army provides the bulk of the forces in Hong Kong, under the direct com- mand of the Commander British Forces. With the disbandment in December of HQ 51 Infantry Brigade they were concentrated into one formation-the Gurkha Field Force.

       Units which were stationed in Hong Kong during 1976 were: the 20 Light Regiment Royal Artillery and C Squadron 1st Royal Tank Regiment (both of which were withdrawn in March); 2nd Battalion the Grenadier Guards; 1st Battalion the Light Infantry (which replaced 1st Battalion the Royal Hampshire Regiment in February); 1st Battalion of the 2nd King Edward VII Own Gurkha Rifles; the 6th Queen Elizabeth's Own Gurkha Rifles; and the 10th Princess Mary's Own Gurkha Rifles.

The primary task of the Army in Hong Kong is to operate in support of the Hong Kong Government, in particular the Royal Hong Kong Police. In the border area and on the offshore islands the Army, in conjunction with the police, has been closely associated with government efforts to prevent illegal immigration. Patrols are regularly carried out in the more inaccessible areas of the New Territories and the outlying islands. Apart from its military activities the Army has also provided support in the form of emergency fire fighting units for hill and forest fires and engineering support and assistance in natural disasters.

       As well as their normal training the Gurkha engineers carried out a number of building projects for the Public Works Department within the closed border area during 1976. One such project involved assistance with temporary bridging at Man Kam To during the construction of a new bridge. Gurkha engineers also helped PWD workmen to demolish a railway bridge which was heavily damaged and made unsafe by a tropical storm in August. The bridge, over the Shing Mun River at Sha

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Tin, had to be quickly demolished and then rebuilt. In community relations work, Gurkha activities included the provision of floodlighting for the 1976 Hong Kong Arts Festival and the construction of a recreation ground in the Tuen Mun area. Gurkha engineers also constructed a footbridge, suspension bridge, and car park for the Ocean Park complex.

Community relations projects undertaken by other Army units included two three-week youth leadership camps based at RAF Kai Tak for 240 youngsters, and many weekend activities aimed at showing young people in urban areas the potential enjoyment of outdoor life. The Army's sporting facilities are shared extensively with local youth and residents' organisations.

        The Royal Air Force station at Kai Tak is adjacent to the civil international airport and it uses the airport's runway and control services. Radar facilities are shared with the Civil Aviation Department in order to ensure the safety of all aircraft, whether civil or military, operating within the Hong Kong Flight Information Region. At the beginning of July, as part of the rundown of RAF Kai Tak, the station ceased to act as the terminal for Service personnel and their families entering or leaving Hong Kong. This responsibility was handed over to various civilian organisations at the airport. Royal Air Force VC 10 aircraft continue to carry servicemen and dependants to and from Hong Kong.

No. 28 Squadron, based at Kai Tak, is equipped with eight Wessex helicopters, primarily for the rapid movement of troops and supplies. It also provides a standby aircraft for search and rescue in Hong Kong and nearby waters and, together with the Royal Hong Kong Auxiliary Air Force, carries out a medical evacuation service for both military personnel and civilians from outlying areas to the main hospitals in Kowloon. The helicopters also assist with local civil engineering projects-such as the construction of the Ocean Park cable car system-by lifting into position heavy items of equipment which would be difficult to position by other means.

The sports grounds and other facilities at RAF Kai Tak are regularly made avail- able to the community for such events as paraplegic sports and local club activities. As well as the two youth camps run by the Army, the station hosted a number of Scout and Guide rallies, school visits and Air Cadet camp activities during the year.

        Although 1976 was complicated by the changes in force levels, the command structure and deployments imposed by the 1975 United Kingdom Defence Review and the new Defence Costs Agreement, all three Services maintained their close association with the local community in a variety of ways without losing sight of their primary role. In support of this they maintained a high standard of training and alertness, and, jointly with the New Territories Administration and the police, steadily improved arrangements for the security of the border and of other areas in Hong Kong and its waters.

Local Auxiliary Services

        In addition to the regular forces, Hong Kong has two auxiliary service units- the Royal Hong Kong Regiment (The Volunteers) and the Royal Hong Kong Aux- iliary Air Force. These are administered by the Hong Kong Government but would

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     come under the Commander British Forces and the appropriate Service commanders if called out.

      The Royal Hong Kong Regiment is a light reconnaissance regiment which operates in support of the British Armed Forces in Hong Kong in both internal security and reconnaissance roles. It numbers approximately 700 volunteers. The regiment consists of four reconnaissance squadrons, a headquarters squadron and a home guard squadron. There is also a junior leaders squadron of some 135 boys between the ages of 14 and 17.

On average, volunteers train for two evenings and one weekend a month, with a 15-day annual camp. Whenever possible volunteers are attached to regular battalions for overseas training. In 1976 the regiment was called out to assist in fighting hill fires over the Chinese New Year.

      The Royal Hong Kong Auxiliary Air Force is based near the civil airport. It operates a fleet of five aircraft-a twin-engined Britten-Norman Islander, a Beechcraft Musketeer light aircraft and three Alouette Mark III helicopters-and has an establishment of 111 volunteers and 54 permanent staff.

      The unit is the only remaining operational auxiliary air force squadron in the Commonwealth and its main role is internal security. It also operates as a com- munication squadron and carries out medical evacuation flights, search and rescue operations, aerial surveys, a flying doctor service, surveillance flights to hinder illegal activities, training of air traffic controllers of the Civil Aviation Department to private pilot's standard, and the conveyance of government officers to outlying areas. On mercy flights, more than 150 casualties were carried to Queen Elizabeth Hospital for treatment during the year. The unit works seven days a week and can operate round the clock in an emergency.

Essential Services Corps

      The Essential Services Corps comprises the Civil Aid Services and the Auxiliary Medical Service, which are autonomous services, and units of the Essential Services Corps itself. The corps as a standing body was disbanded on April 1 with the exception of a small number of specialist units which might be required at very short notice. However, all the 70 units in the Essential Services Corps could be mobilised at relatively short notice to help maintain public utilities and other essential services if the security of Hong Kong or the welfare of the population were in danger.

Civil Aid Services

       The Civil Aid Services is a government-sponsored organisation consisting of disciplined and uniformed volunteers who are trained to assist the regular emergency services in dealing with natural disasters and other emergencies.

       Volunteers are trained to handle casualties, to conduct both light and heavy search and rescue operations if people are trapped in landslips or collapsed buildings, and to give assistance to people lost or injured in the mountains. Their duties include

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motor cycle reconnaissance of damaged roads, reporting accidents, manning typhoon shelters, assistance in the registration and feeding of the homeless, forest fire fighting and anti-oil pollution tasks. The Civil Aid Services also provides assistance in govern- ment campaigns, charity drives and other projects.

        The adult establishment of the Civil Aid Services was reduced from 4,320 to 2,300 in 1975 as an economy measure, but at the beginning of 1976 approval was given to raise the establishment to 2,750. Volunteers are recruited from almost every walk of life and are always ready to perform arduous and often hazardous tasks at any time and in any weather conditions.

       In May the Civil Aid Services completed its year-long task of staffing the camps set up for 3,900 Vietnamese refugees who were given temporary asylum in May 1975 after escaping from the fighting in and around Saigon on a small Ocean going vessel and then being taken aboard by a Danish ship. The last remaining refugees were provided with accommodation in the Kowloon Bay resite area.

        The organisation has a junior wing, the Cadet Corps, which comprises 2,020 youths aged between 14 and 18. The aim of the Cadet Corps is to help boys develop, to make them aware of their civic responsibilities, and to provide organised camps, sports and expeditions. Recruits are mostly from low cost housing estates and other heavily populated urban areas and they are posted to a cadet unit in the area in which they live. In January the Cadet Corps became an independent unit within the Civil Aid Services.

Cadets are taught the basic skills as practised in the adult services as well as camping, trekking, forest conservation, life saving and mountaineering techniques. For the 17 to 18 age group, more advanced courses are held in mechanical engineering, fibreglass canoe making and allied subjects. Development of a 50-acre campsite on a plateau 750 feet above Tsing Lung Tau on Castle Peak Road continued during the year, and a contract was signed for the construction of an administration building at a cost of $170,000. Other developments included the forming of a football field, a basketball field and tent camping areas, and the renovation of the old village type houses on the campsite. The work was financed largely by a donation of $250,000 from the Royal Hong Kong Jockey Club. In 1977 it is planned to establish a campsite by the sea on the Sai Kung peninsula at Tai Tan where aquatic activities can be organised for cadets.

Auxiliary Medical Service

       The Auxiliary Medical Service was founded in 1950 and has a membership of nearly 6,000 volunteers. Its members include doctors, nurses, pharmacists, dispensers, radiographers and other volunteers from all walks of life. There is always a waiting list of young people who wish to join the service. Non-professional members are given training in first aid, nursing and other subjects which form part of the regular medical and health services. The majority of these non-professionals are aged between 17 and 25 years.

        In the event of an emergency, members of the Auxiliary Medical Service are mobilised to augment the Medical and Health Department and also to assist the

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Fire Services Department by manning ambulances. In the summer months members who are trained life-guards also assist the staff of the Urban Services Department at public beaches. During the year members were also deployed for duty at chest clinics, methadone maintenance centres, and in the 15 methadone detoxification centres which were established in June.

The Auxiliary Medical Service has 84 sub-units in the urban areas and on the mainland and islands of the New Territories, including four new sub-units recently established on Lantau Island at Mui Wo, South Lantau, Tung Chung and Tai O.

16

Religion and Custom

#

THERE are six major religions practised in Hong Kong, with Buddhism and Taoism having by far the largest numbers of followers. They worship on any day of the week in more than 600 temples-some of them ancient and containing invaluable antiques, and some of them magnificent new temples built in the style of traditional Chinese architecture.

        Hong Kong also has nearly 600 Christian churches and chapels, three Muslim mosques, a Hindu temple, a Jewish synagogue, and places of worship for a variety of other religions.

Buddhism and Taoism

       Among the Taoist and Buddhist believers, almost every household has its ances- tral shrine and countless shops have a God Shelf, with images of the most favoured of the hundreds of divinities. Traditional rites associated with birth, marriage and death are still widely observed.

Religious studies are conducted in monasteries, nunneries, and hermitages, with those at Sha Tin and Tsuen Wan being popular because of their easy accessibility. But the best known monasteries are situated in the more remote and unspoilt parts of the New Territories. The Buddhist Po Lin monastery on Lantau Island is renowned for its view of the sunrise, and many visitors go there at weekends and holidays. Sightseers and devotees are also attracted to Ching Shan Tsz and Ching Chung Koon at Castle Peak, Tung Po Tor and Yuen Yuen Hok Yuen near Tsuen Wan, and Sai Lam at Sha Tin. At Tao Fung Shan, near Sha Tin, there is a Christian study centre on Chinese religion and culture, where the work of the Christian Mission to Buddhists has been carried out for many years. In the urban areas, various Buddhist institutions hold gatherings where the sutras are expounded.

        Virtually all monasteries are open to the public, as are the temples-which are crowded at festivals and on certain days of the month. Although each temple is generally dedicated to one major deity-occasionally two-it is usual to find the images of many deities in most temples. Since Hong Kong has always depended on the sea-originally for fishing and then for trade-the most popular deities are those connected with the sea and the weather. Tin Hau, the Taoist Queen of Heaven and protectress of seafarers, is said to be worshipped by 250,000 people.

       There are at least 24 Tin Hau temples in Hong Kong, the oldest and most famous being the one at Fat Tong Mun in Joss House Bay. Because of land reclamation, many of the Tin Hau temples which were originally established by the sea are now some distance inland.

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       Other leading deities include Kwun Yum, the Buddhist Goddess of Mercy; Kwan Tai, God of War and the source of righteousness; Pak Tai, Lord of the North and local patron of Cheung Chau Island; Hung Shing, God of the South Seas and a weather prophet; and Wong Tai Sin, after whom an area of New Kowloon is named. The temple there in his honour-in the middle of a public housing estate-is a fine example of modern craftsmanship following traditional Chinese architecture. Steps are being taken to provide facilities for the fast growing population in public housing estates to worship and celebrate religious festivals.

       Taoist and Buddhist organisations help to meet welfare, educational and medical needs in Hong Kong, either directly or by contributing to charitable organisations. Many temples have donation boxes to collect money for schools, hospitals or charities.

       In the New Territories, traditional clan organisations have been preserved. Many villages have an ancestral hall where ancestral tablets of the clan are kept and ven- erated. The hall is the centre of both religious and secular activities among villagers of the same clan. Animism is found in the form of shrines or simply joss sticks at the foot of certain rocks and trees within which spirits are believed to dwell. It is especially common among Hakka villagers.

       The Chinese Temples Committee-set up by the government in 1928-has res- ponsibility for preserving and restoring temples, and also for managing temples when asked to do so by people concerned. In 1976 there were 41 temples under the direct control of the committee. Nearly $163,000 was spent throughout the year on repairs to temples under direct management or control, and $97,000 was allocated to the Secretary for the New Territories for repairs to temples in the New Territories.

       There are five major festivals in the Chinese calendar, with the Lunar New Year being first and foremost. Gifts and visits are exchanged among friends and relatives, and children receive 'lucky money'. During the Ching Ming Festival in spring, an- cestral graves are visited. In early summer, the Dragon Boat Festival is celebrated with dragon boat races and by eating cooked rice in lotus leaves. The Mid-Autumn Festival falls on the 15th day of the eighth moon. Gifts of mooncakes, wines and fruits are exchanged, and adults and children go into the parks and countryside at night with colourful lanterns. Chung Yeung is on the ninth day of the ninth moon, when large crowds climb various hills in remembrance of an ancient Chinese family's escape from death and misfortune by fleeing to the top of a high mountain. Family graves are also visited on this day.

Christianity

       The Christian community in Hong Kong is estimated to comprise about 10 per cent of the population. Of these 440,000 people, slightly more than half are Roman Catholic and the rest Protestant.

Organised Christianity dates back almost to the foundation of Hong Kong, the first churches being established in 1842. Today the Hong Kong Church Directory lists nearly 50 different denominations and sect groups. They include the major Pro- testant denominations of the world-such as the Adventist, Anglican, Alliance,

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      Baptist, Lutheran, Methodist, Pentecostal and Salvation Army-while the Pres- byterians and Congregationalists are represented in the Church of Christ in China.

       Protestant churches are responsible for more than 250 primary schools and some 130 middle schools and colleges. The Christian concern for post-secondary education is demonstrated by the existence of the Hong Kong Baptist College and Chung Chi College-the church-sponsored college at the Chinese University of Hong Kong. Chung Chi celebrated its 25th anniversary in 1976, having begun life in 1951 with the local and overseas support of the major Christian denominations. The training of ministers and leaders for the churches is carried out by five seminaries and bible schools.

The Christian churches also sponsor a variety of service programmes including hospitals, clinics, orphanages, homes for the aged, family service centres, vocational training centres, and aid for the handicapped.

        The mainline denominations-together with active Christian organisations like the YMCA, YWCA, the Bible Society, and the Chinese Christian Literature Council -have associated themselves for co-operative work in the Hong Kong Christian Council. It represents the majority of the Protestant Church membership in Hong Kong. The council promotes ecumenical projects and concerns in Christian service, industrial mission, Christian education and communication. The council's Christian Centre in Kowloon has a range of facilities which include a conference room, film libraries, a communications production centre and a reference library.

        In the same building is the Hong Kong Chinese Christian Churches Union, which is an association of 195 Protestant congregations. It publishes the Christian Weekly and runs a home for the aged, and its activities during the year included sponsorship of the first Hong Kong Sacred Music Festival.

There is a good spirit of ecumenism in Hong Kong and nearly every major committee of the Christian Council has official voting representatives from the Roman Catholic Diocese. Similarly, members of the council are invited in turn to serve as voting members of the Roman Catholic diocesan committees. Throughout the year the Protestants and Roman Catholics jointly plan and produce religious broadcasts which are put out by Radio Television Hong Kong.

Roman Catholic Church

       It was in April 1841 that Pope Gregory XVI established the Apostolic Prefecture of Hong Kong. The first Prefect, Monsignor Theodore Joset, built a matshed church at what is now the intersection of Wellington and Pottinger Streets. He established a seminary for the training of Chinese priests and persuaded religious sisters to come to Hong Kong to start schools, hospitals, creches and other welfare work.

        In 1867 the Pontifical Institute of the Foreign Missions of Milan took charge of the Prefecture, with Monsignor T. Raimondi as Prefect-later becoming Bishop. This institute remained responsible for the Church in Hong Kong for 102 years. In 1969 responsibility was transferred to the diocesan clergy, with Bishop Francis Chen-ping Hsu as the first Chinese Bishop of the Roman Catholic Diocese of Hong Kong.

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      Bishop Hsu died suddenly in 1973 at the age of 52. He was succeeded by Bishop Peter Wang-kei Lei, but he also died suddenly in the following year, aged 51. The third Chinese Bishop of Hong Kong, Bishop John Baptist Cheng-chung Wu, was consecrated and installed by Cardinal Rossi in the Hong Kong Roman Catholic Cathedral on July 25, 1975.

      In addition to its pastoral and apostolic work, the Church engages in a wide vari- ety of work in education, health care and social welfare. There are now 308 Catholic schools, with more than 260,000 students. Vocational education is being developed.

       Catholic social and health services include seven social centres which emphasise vocational and adult education, six hospitals, 12 hostels for students and workers, a maternity home, 20 general clinics, five dental clinics, two mobile clinics, 15 day nurseries, two homes for the aged, two homes for the blind, and a large variety of self-help clubs and associations.

      Roman Catholics in Hong Kong number about 265,000. They are served by 344 priests (129 Chinese and the rest of some 15 nationalities), 91 Brothers (44 Chinese and 47 of 14 other nationalities) and 771 Sisters (449 Chinese and 322 of 25 other nationalities). There are 51 parishes with resident priests. The services in nearly all churches and chapels are in Chinese, with a few providing some services in English. In one church on Hong Kong Island all services are in English.

Other Religious Communities

      The Muslim community numbers about 25,000 followers of Islam. The majority are Chinese, with the rest mainly from Pakistan, India, Malaysia, Indonesia, Iran and neighbouring regions. They gather for prayers at the Shelley Street and Wong Nai Chung Road Mosques on Hong Kong Island and at the Nathan Road Mosque in Kowloon.

      The Shelley Street Mosque, the first to be built in Hong Kong, dates back to the early days of the introduction of the Islamic faith in the 1880s. It was rebuilt in 1915. The Kowloon Mosque was built towards the end of the last century for use originally by Muslim soldiers of the former Indian Army. It was subsequently handed over to the local Muslim community. Two places have been set aside by the government as burial grounds for Muslims. One is at Happy Valley and the other at Cape Collinson, Chai Wan.

      The co-ordinating body for all religious affairs is the Incorporated Trustees of the Islamic Community Fund of Hong Kong. A board of trustees, comprising representa- tives of the various sects within the Muslim community, is responsible for the manage- ment and maintenance of all mosques and cemeteries. The trustees are also responsible for organising the celebration of Muslim festivals and other religious events. Charit- able work among the Muslim community, including financial aid for the needy, hospitalisation, and assisted education, is conducted through a welfare committee working under the direction of the board of trustees.

      The 8,000-strong Hindu community can trace its ties with Hong Kong back to early settlement. Religious and social activities are centred around the Hindu temple

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at Happy Valley. It is frequently visited by swamis and learned men from overseas who give spiritual lectures to the community. A number of festivals are also observed, the more important being the Holi Festival, the Birth of Lord Krishna, Shivaratri, Dessahara and Diwali.

        The Hindu Association of Hong Kong is responsible for the upkeep of the temple, which is also used for meditation periods, yoga classes and teaching Hindi to the Indian community. During 1976, the association sponsored several seminars on an- cient Hindu teachings which were conducted by Hindu scholars invited from India. The seminars were held in English and were open to all nationalities. Religious music recitals are also held periodically at the temple.

        Hong Kong's Jewish community worships at a synagogue in Robinson Road. Built in 1901 on land given by Sir Jacob Sassoon and his family, the synagogue is in memory of Sir Jacob's mother Leah. It is known as the Synagogue 'Ohel Leah'. The Jewish Recreation Club and the resident rabbi's apartments are on the same site. There are about 500 people in the congregation and they belong to families who originally came from Britain, China, India, Eastern and Western Europe, the United States, South Africa and Israel.

17

Recreation

IN the provision of recreational and cultural facilities, several major enterprises reached completion in 1976 and work was begun on one of the most ambitious of all projects-the $200 million-plus Cultural Complex on the waterfront at Tsim Sha Tsui.

      The government approved funds for the first phase of the complex in August, allocating $15.5 million for the reclamation of land to enlarge the site. Work began shortly after to prepare a section of the site for the first building-a $20 million planetarium which is being financed by the Urban Council. It is expected to be completed by mid-1978. The rest of the complex is to be built and financed by the government, and work on the construction of a concert hall, theatre, restaurant and administrative offices is due to start in 1978. The third stage-an art gallery and a museum-is scheduled to begin in 1980.

       Earlier in 1976 the government completed three indoor games halls in Kowloon. Work was also begun on two multi-purpose indoor stadia suitable for holding a wide range of local and international sporting and entertainment events. The 3,500-seat stadium on Hong Kong Island will be part of a 12-storey sports complex which is being built at an estimated cost of $27 million. The $60 million-plus stadium in Kowloon, which is to form part of the new railway terminus complex at Hung Hom, will seat 15,000. And on land reclaimed from the sea off the densely populated area of Wan Chai, work began during the year on a recreation centre which will include a 25-acre sports ground, an indoor games hall and a swimming pool.

       To cater for the ever increasing thousands of people who spend their leisure time in the countryside, a Country Parks Ordinance was implemented to open up large areas of countryside and develop the recreational potential of such areas.

       As a result of community enterprise, a 19-storey Arts Centre costing some $30 million was virtually completed by the end of the year, and a private enterprise achievement was the completion of the Aberdeen oceanarium complex-the largest of its kind in the world and also having Hong Kong's first cable car system. The Ocean Park has a wide variety of animal and marine life from many countries.

Recreation and Sport Service

       In its second year the Recreation and Sport Service expanded its activities to all 17 districts of Hong Kong and the number of full-time officers working in the districts rose from six to 68. They organise sports, physical recreation and a variety of leisure activities, helping the community to make full use of all the facilities available. The

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officers work closely with sports associations, voluntary agencies, youth groups and relevant government departments. The service is operated by the Education Depart- ment. It caters for people of all ages and all abilities, but there is particular emphasis on young people.

        In 1976 the service trained 1,000 new coaches, instructors, referees and leaders, bringing the total number now active to 4,000. During the year the qualified coaches and instructors passed on their skills to some 50,000 people who enrolled in elementary and intermediate sports courses. More than 50,000 people also took part in competi- tions and tournaments. A major event was the sports programme held to celebrate Her Majesty the Queen's 50th birthday, with some 25,000 people taking part.

       Weekend family sports centres were introduced in 1976 and there are now four which provide sporting and recreational facilities for whole families, with the aim of bridging the generation gap and fostering harmony in family life. Also catered for are the handicapped, the aged, and specific work groups within the community.

        In May, the former Army camp at Sai Kung was handed over to the Recreation and Sport Service, and within two months it had been turned into an outdoor recrea- tion centre. During the rest of the year some 100 sports, recreational and educational activities were conducted at the centre.

Another new development was the certificate course in recreation management jointly organised by the service and the extra-mural department of the University of Hong Kong. Some 40 members of various organisations and government departments were trained, and a second course began in October.

Outward Bound

       The Outward Bound School in the New Territories joined in the efforts of the Recreation and Sport Service in 1976 by organising special courses on behalf of the service. Activities covered included rock climbing, canoeing, sailing, orienteering, and mountain leadership and instructor training. More than 1,000 young people took the courses, which were held at the request of the government and subsidised by the Recreation and Sport Service.

        The standards of the Outward Bound School are fast becoming the accepted yardstick in character training and development in Hong Kong. The school runs standard 25-day courses, special courses for senior executives and for younger execu- tives, courses for girls and women, adventure courses for younger children, and specially designed courses for various firms and government departments. Numbers passing through the school have increased fivefold since it opened six years ago. Expansion is now being planned to provide more accommodation for the standard courses and also an establishment devoted entirely to recreation training.

Summer Youth Programme

       The most comprehensive range of recreational opportunities ever presented in a Summer Youth Programme was enjoyed by nearly two million young people in Hong

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Kong from late June to mid-September. There were about 5,000 different events- the activities including camping, excursions, sports, games, swimming lessons, com- petitions, variety shows, concerts and Chinese opera. Some 200 training courses were also held in youth leadership, canoeing, first aid and various crafts.

Although students and schoolchildren on holiday again formed the majority of participants, there was a noticeable increase in the number of young working people taking part in evening and weekend events. Along with older students, their interest lay mainly in community service projects and the training courses.

As in the previous seven years, the overall planning was done by the Central Co-ordinating Committee for Youth Recreation. The programme was implemented mainly by volunteers from youth groups, voluntary agencies, schools, district organisa- tions, government departments and the Armed Services. The total cost was estimated to be about $3 million. Half was donated by the Royal Hong Kong Jockey Club, which also gave

further $150,000 for some permanent recreational facilities.

Of all the activities presented in 1976, camping remained the most popular and outings into the countryside attracted greatly increased numbers. Future programmes are to include more conservation and forestry camps-not only for the youngsters' enjoyment but also to ensure that the environment is properly used and preserved.

The Countryside

       Thousands of people of all ages hike across the hills and through the wooded valleys of Hong Kong every weekend. The numbers are continually growing and, because of this, provision was made at the beginning of the year for the most important areas of countryside to be designated as country parks under the Country Parks Ordinance. The objective is to open up the countryside for the enjoyment of all and to develop its recreational potential, while at the same time ensuring that both country- side and wildlife are cared for and preserved for the benefit of future as well as present generations.

Under the new ordinance, the Director of Agriculture and Fisheries is the Country Parks Authority and is responsible for the management of the country parks. The Agriculture and Fisheries Department has up to now managed about one fifth of the scenic countryside for recreation purposes, and in 1976 visitors to these areas alone totalled well over two million. Many others took advantage of the generally un- restricted access to penetrate into the most remote areas.

Since 1972 the department has been expanding its basic management services- which include the provision of picnic sites with tables and benches, litter bins and children's play apparatus, and also fireplaces for barbecues wherever it is safe. Foot- paths are being improved and waymarked, and there are nature trails with guidebooks for people who take their outings seriously. There are also information boards, panoramic displays and maps, viewing compasses, explanatory posters and pamphlets, and simple shelters against the rain and sun. The department's other services include first aid and search and rescue, which are administered from the management centres and conducted by patrolling personnel.

Recreation

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Recreation & Sports Service

There are hundreds of organisations which have long catered for sport and recreation in Hong Kong, but a unique role is played by the Recreation and Sport Service which was formed only two years ago. Its aim is to bring fitness and fun to everyone, ir- respective of age or ability. It goes about this by providing instruction, organising events, and helping the community to make full use of all facilities available. The service is operated by the Education Department and it works closely with sports associations, voluntary agencies, youth groups, and relevant government departments. It has been welcomed and has grown beyond all hopes, and there are now full-time sports officers in each of the 17 districts covering all of Hong Kong. Some 4,000 coaches and leaders trained by the service give instruction in sports, athletics, and gymnastics, and activities include folk dancing, country outings, and arts and crafts. There are activities for the handicapped and for the very young, and weekend family sports centres have been set up in school premises. There are also sports camps for young people and for families, and a former Army camp has been transformed into an outdoor recrea- tion centre.

Waterpolo (cover) has become a popular sport through the enthusiasm of 50 coaches trained by the Recreation and Sport Service. The high jumper (above) is a contestant at a district athletics meet; a lesson in life saving; and youths taking part in one of 30 football training courses.

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Tai Chi-the Chinese method of keeping fit-at the Oi Man public housing estate. Some 50,000 people

do Tai Chi every weekday at sessions held by instructors throughout Hong Kong.

     A trainee at a course for badminton coaches -nearly 100 are already trained and in action.

There's roller skating for the advanced, exponent like this, and for beginners as well

Concentration and style at a table tennis championship match in the town hall at Yuen Long.

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And a strenuous jump during volleyball training at the Sports Centre in Causeway Bay.

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Schoolchildren in the New Territories

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A weekend of canoeing-one of 10 courses. organised in conjunction with the Outward Bound School.

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A high flier in a trampoline class at a week-

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A demonstration of martial arts at the sports week which the Recreation and Sport Service holds in association with Hong Kong's annual Festival of Sports.

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        The Agriculture and Fisheries Department also has to safeguard the countryside against fire-often caused by careless visitors-and it is responsible for landscape rehabilitation and the protection of flora and fauna.

The popularity of tent camping continued to increase during the year, with the department's experimental camp site at Pui O beach on Lantau Island being well occupied and providing useful information on camping.

Swimming

        Swimming is the most popular form of active recreation in Hong Kong. There are 37 gazetted beaches with life-saving staff and facilities and eight public swimming pool complexes. Twelve beaches and seven swimming pool complexes in the urban areas are managed by the Urban Council, and 25 beaches and one pool complex in the New Territories are managed by the Urban Services Department.

        New changing rooms and showers at Middle Bay, South Bay, Shek O, Big Wave Bay and Stanley Main beaches proved a popular addition during the 1976 swimming season. An inflatable rescue boat with an outboard engine was put into operation at Shek O beach at the beginning of the season. A fibreglass raft also went into trial use at Deep Water Bay, and it is hoped that this will prove superior to the existing steel rafts.

        A new swimming pool complex at Aberdeen on Hong Kong Island was nearing completion at the end of the year and another pool complex at Tai Wan Park in Kowloon was at an advanced stage of construction. Other pool complexes planned are at Chai Wan and Wan Chai on Hong Kong Island; Hammer Hill and Kowloon Park in Kowloon; and Fanling, Yuen Long, Kwai Chung, Sha Tin and Tuen Mun in the New Territories.

Urban Recreation

         In 1976 more than 1,800 functions were organised by the Urban Council and the Urban Services Department as free entertainment and recreation for the public. Regular events include variety shows, band concerts, Chinese opera, film shows, orchestral and folk song performances, musical comedies, puppet shows and youth dances. These are presented in parks and playgrounds in all districts in the urban area and the New Territories.

         During the summer vacation the Urban Council's entertainment programme was intensified and 125 events were organised. These included swimming parties at pool complexes and beaches, launch picnics, funfairs, popular concerts and additional variety shows. More than 180,000 young people and children from the 10 urban districts and the New Territories attended these free activities.

        In support of the 1976 Hong Kong Arts Festival, the Urban Council presented an extensive programme in a special effort to bring free entertainment to the man in the street. The council also presented special shows for the Lunar New Year, and spectacular Lantern Carnival shows were held at Kowloon Park and Victoria Park to celebrate the Mid-Autumn Festival.

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      The council's recreation programme consisted of some 1,200 sporting events organised jointly with sports associations. Sports covered included football, mini- soccer, basketball, volleyball, tennis, table tennis, judo, bowling, cycling, handball and canoe racing.

      To bring more colour and greenery to the crowded urban areas, 226,096 trees, shrubs and flowers were planted during the year. The Urban Council and Urban Services Department now manage a total of 1,657 acres of public open space-1,092 acres in urban areas and the rest in the New Territories.

The annual Urban Council flower show, held in mid-March, attracted 74,830 visitors to the City Hall.

Entertainment and the Arts

      The importance of Hong Kong as a major cultural centre in Asia is illustrated by the many overseas artists and performing groups presented at the City Hall by the Urban Council. In 1976 there were 51 such performances. Some were presented with the assistance of various consulates and national cultural organisations such as the British Council, the Alliance Francaise, the Goethe Institute and the Dante Alighieri.

      Cultural life in Hong Kong has centred around the City Hall since it was opened in 1962. It is administered by the Urban Council and facilities include: a 1,500-seat concert hall which can quickly be converted for theatrical productions; an intimate 470-seat theatre which may also be used as a cinema; two exhibition areas; rooms for lectures and conferences; and two restaurants with bars. The buildings also house the Hong Kong Museum of Art and the City Hall Library.

Local performers as well as visiting artists appear regularly in the two auditoria, and the demand for use of facilities is heavy. Local artists presented by the Urban Council in 1976 gave performances which included 61 concerts of Chinese and Western music, and 22 productions of opera, drama and dance. The Hong Kong Philharmonic Orchestra performed 21 different programmes in 42 concerts in its third professional season.

      Apart from Urban Council presentations, local music groups and soloists gave 130 concerts at the City Hall during the year. In drama, many Chinese groups--- amateur as well as professional-and three English amateur groups presented 39 productions, with 116 performances at the City Hall.

       The major event of the year was the 1976 Arts Festival, presented in February by the Hong Kong Arts Festival Society in association with the Urban Council. A full month of music, drama and dance was provided by international and local per- formers including the Halle Orchestra and the Chichester Festival Theatre Company from Britain, the Mummenschanz Swiss mime masque theatre, the Paco Pena Flamenco dance ensemble, leading ballet dancers from Europe, Emlyn Williams, Peter Katin, Moura Lympany, Cleo Laine and John Dankworth, and Hong Kong's own Philharmonic Orchestra, children's choir, and Chinese Orchestra. Other local

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contributions to the festival included Chinese opera, traditional Chinese shadow puppet plays, and a pipa recital by Feng Te-ming-a local musician of international repute.

        In view of the ever increasing cultural activities, a new recital hall has been built in the high block of the City Hall. Since its inaugural concert in September, Urban Council cultural programmes have been held there regularly.

       Another highlight of the year was the Festival of Asian Arts presented by the Urban Council in November. It was the first such regional festival of its kind. Performing groups from Southeast Asia included the Kyoto Municipal Symphony Orchestra, the Singapore People's Association Chinese Orchestra, the Bayanihan Dance Company of the Philippines, the Tokyo City Ballet, the Thai Dance Company and the Malaysian Dance Company. They joined with the Hong Kong Philharmonic Orchestra, the Hong Kong Chinese Music Orchestra and wellknown local soloists in a spectacular festival.

Looking to the future, pile-driving began in September for the $20 million plane- tarium which will form the first phase of the Cultural Complex to be built at Tsim Sha Tsui. The planetarium-financed by the Urban Council-will include a sky theatre for 350, lecture rooms and exhibition areas. The council has ordered a 75-foot diameter dome for the sky theatre, making it one of the world's largest planetaria.

Arts Centre

        After five years of planning and money-raising, the 19-storey Hong Kong Arts Centre was structurally completed at the end of 1976 and work was begun on equipp- ing and furnishing the centre. The cost of the project-some $30 million-is being raised by private donations. The Hong Kong Island site, on land reclaimed from the sea at Wan Chai, was a grant from the government at the beginning of 1972. There is to be an official gala opening of the centre towards the end of 1977, although it is being used before then for various activities.

The elegant building occupies a commanding situation overlooking Victoria Harbour. It has a main theatre, recital hall, studio theatre, two floors of exhibition galleries, rehearsal facilities, a members' club, restaurants and other accommodation. It will provide a home for a number of cultural agencies in Hong Kong, some of which will present their own programmes of lectures, films and recitals in the centre.

        The centre is unique in the world in three respects: the building overcomes planning problems previously thought to be insuperable; the centre covers the full range of arts-music, theatre, visual arts and literature; and it covers both Oriental and Western forms.

Ever since the Arts Centre as an organisation was founded in 1969, it has presented a wide range of performances and exhibitions in various premises. These have often been in association with other cultural or commercial bodies, and it is anticipated that this will continue. The Arts Centre pursues a multi-cultural policy, aiming to meet the varying needs of Hong Kong's diverse community while at the same time providing a lead in developing new cultural activities.

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Museum of Art

RECREATION

The Hong Kong Museum of Art, located on the top three floors of the City Hall high block, collects and exhibits art work both contemporary and historical. In addition to the permanent exhibits, 10 temporary exhibitions were staged in 1976. The last was held in conjunction with the Festival of Asian Arts in the exhibition hall of the City Hall. The number of people who visited the Museum of Art during the year was 179,284-an average of 586 visitors a day.

As a step towards the extension of museum activities, small exhibitions have been set up and circulated round the Urban Council branch libraries. Plans are in hand to have such services extended to schools and educational institutions.

      Major additions to the museum collections during the year included a white bowl with incised floral pattern of the Hsuan-te period (1426-35), a blue-glazed peony flower water-dropper of the Kang-hsi period (1662-1722), a white bowl with red fish in underglaze red of the Yung-cheng period (1723-35) and paintings by Chi Pai-shih, Liu Feng-mien and Douglas Bland.

Among the historical pictures acquired by the museum during the year, the set of 48 paintings on the four major trades in China is the most significant. These gouache paintings provide useful information on a particular school of painting in the 19th century, and on the production process of porcelain, silk, cotton and tea at that time.

Museum of History

The Hong Kong Museum of History which the Urban Council opened in 1975 at Star House in Kowloon has proved a considerable attraction. Nine exhibitions were held during the year, four of which were presented in association with various local institutions. Fields covered included archaeology, ethnography, local history, natural history and geology. Total attendance at the museum in 1976 was 409,040 -an average of 1,337 people a day.

With the Antiquities and Monuments Ordinance going into effect at the beginning of 1976, a major step was taken towards the protection of the archaeological and historical heritage of Hong Kong. The museum initiated action to bring historical rock carvings under physical protection and advised the Sheung Shui and Cheung Chau rural committees on setting up folk museums for the preservation of their village artifacts.

The museum's collections have increased steadily-particularly the archaeology collection through the efforts of the Hong Kong Archaeological Society, and the ethnography collection through generous donations from the Heung Yee Kuk. Among the museum's acquisitions in 1976, the collection of more than 100 local talismanic woodblocks are considered outstanding.

The Lei Cheng Uk Branch Museum, with its Han Tomb, was closed in January and remained closed for the rest of the year for major renovation.

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Two new libraries were opened during the year-a gramophone record listening library in the City Hall Library and a mobile library for Sham Shui Po. This brings the number of Urban Council libraries to eight-five on the Kowloon peninsula and three on Hong Kong Island. There is also a separate Urban Council study room at Kowloon Park. In the New Territories, the Urban Services Department provides a public library at Tsuen Wan. The facilities of all these nine libraries and the study room are freely available to all residents of Hong Kong.

During the year 57,344 new books were acquired, bringing the book stock to 686,717. The libraries also have a stock of 3,120 reels of microfilm and 4,870 gramo- phone records and cassette tapes. They subscribe to 505 current newspapers and periodicals, mainly in English and Chinese, from all over the world.

Some 60,117 people registered as library members in 1976, bringing the total registered membership to 611,014. Books borrowed from the lending sections totalled 3,198,526, while 418,278 books were consulted in the reference libraries. Special em- phasis was given to extension activities for children and young people in the form of subject talks, story hours, book and art exhibitions, film shows, essay and Christmas card competitions, and organised group library visits. Some 17,000 youngsters attend- ed or took part in these functions. The libraries also provided training for staff work- ing in government and school libraries, and participated in the Duke of Edinburgh Award Scheme. A total of 2,126 new publications were registered under the Books Registration Ordinance.

New libraries for Sham Shui Po in Kowloon and Western District on Hong Kong Island, and for Tai Po and Sheung Shui in the New Territories, are expected to come into operation in 1977.

The British Council

        Valuable contributions to the educational and cultural activities of Hong Kong are made by the British Council. In 1976 assistance was given to government depart- ments and the two universities to enable staff members to visit British universities and other institutions and to attend specialist courses. Four British Council scholar- ships were awarded for training in the teaching of English overseas. Acting for the Sino-British Fellowship Trust, the council arranged five scholarships for post-graduate studies in Britain. The council also completed placing and travel arrangements for 10 British Commonwealth Fellows and Scholars from Hong Kong going to Britain.

Conversely, the council made arrangements for specialists from Britain to visit Hong Kong for consultations with government departments, the universities, and with local experts in their fields. Subjects covered included medicine, education, mechanical engineering, social services and library management. Among the visiting specialists were Professor F. T. Barwell, Professor of Mechanical Engineering, Univer- sity College of Swansea; Mr R. H. Hassell, Assistant Chief Librarian, East Sussex County Library; Dr S. A. Feldman, Consultant Anaesthetist, Westminster Hospital, London; and Mr D. T. White, Director of Social Services, City of Coventry.

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      The council also continued to give advice and information to students leaving for further studies in Britain. There was close co-operation with Hong Kong's Educa- tion Department and a large number of students were met by British Council officers and helped with accommodation on arrival in London.

       On the cultural side, the Watford Palace Theatre-under the joint auspices of the British Council and the Urban Council-gave five performances at the City Hall in May. The company presented Shakespeare's "The Merchant of Venice' and Shaw's 'Pygmalion.'

Two book exhibitions were held during the year-one on applied sciences and the other on teaching English for special purposes. Both were mounted at the British Council Library in Star House, Kowloon, and the second was subsequently taken to the Grantham College of Education and the Northcote College of Education. It was visited by about 1,000 students, teachers and lecturers.

In February the council began a programme of direct English teaching to adults. The courses lead to the first and proficiency certificates of the Cambridge University local examinations. In June and July, a survey was carried out on the use of English in Hong Kong. It was prepared by a working party chaired by the British Council Representative and comprising representatives of the government, both universities and the Hong Kong Polytechnic.

In 1976 the council's library loaned more than 70,000 books to some 7,300 members. These members-mainly students-also make full use of the reading room where there are copies of more than 160 British newspapers and magazines on a wide variety of subjects.

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The Environment,

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THE drafting of new laws to control pollution and the introduction of other means of protecting the environment went ahead in 1976 following a two-year survey by consultants into existing pollution problems and those likely to arise in the future. Some of the new legislation is expected to come into effect in 1977. A central Environ- mental Protection Unit was also set up, and part of its job will be to co-ordinate the efforts of the various government departments which have long been concerned with Hong Kong's environment.

To open up the countryside for the enjoyment of all, and at the same time to provide for its conservation for future generations, a Country Parks Ordinance was implemented. It enables large areas of countryside to be designated as country parks or special areas. A Country Parks Board was formed to advise on the designation of areas and on general policy-which includes educating the public on fire hazards, litter problems, and the protection of wildlife and plants.

Most of Hong Kong's countryside is in the New Territories, which consists of a portion of the Chinese mainland and 235 islands, together covering 370.5 square miles. On the tip of the mainland is Kowloon-which, with Stonecutters Island, covers 4.3 square miles.

The capital of Hong Kong and the centre of commerce, Victoria, is on the north side of Hong Kong Island. Victoria and Kowloon form twin cities facing each other across one of the most spectacular harbours in the world, and one of the most busy. The two cities are 90 miles southeast of Canton, 40 miles east of Portuguese Macau, and 70 nautical miles south of the Tropic of Cancer. With Hong Kong Island and adjacent islets covering 29.2 square miles, Hong Kong's total land area is 404 square miles, including recent reclamations.

Pollution Monitoring and Control

The policy making and co-ordinating body responsible for maintaining a good environment is the Environment Branch of the Government Secretariat. Aside from pollution and conservation, its responsibilities broadly cover land matters, overall planning, new towns, urban services, roads, transport, and certain aspects of the mass transit railway.

The Secretary for the Environment is able to encourage and oversee development while ensuring that it is properly controlled. He can also consider ways of tackling existing pollution and guarding against potential pollution from sophisticated new industries. It was because pollution control legislation was considered outdated and unable to cope with present day problems and future needs that the environmental

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    consultants were engaged in 1974 to study the situation. Their recommendations form the basis for the new legislation and they also advised on establishing the Environmental Protection Unit, for which professional staff is being recruited.

A constant watch on the environment is kept by the Advisory Committee on Environmental Pollution (EPCOM), which advises the Secretary for the Environment on measures to combat pollution.

In 1976 the Environment Branch covered a wide range of activities concerned with the countryside, water pollution, air pollution monitoring requirements, improve- ments to incinerators, and the control of noise from various sources. In May, the emission of hot air and dripping water from ventilation systems became statutory nuisances following an amendment to the Public Health and Urban Services Ordin- ance. A further amendment to the ordinance specified that noise from ventilation systems is also a nuisance, and this amendment takes effect in 1977.

A month-long campaign against noise pollution was held towards the end of 1976. It concentrated on the nuisance which can be caused by ventilation plant of the type used by hotels, restaurants and other large commercial concerns. An appeal was made to all operators to make sure that their plant did not cause excessive noise which would annoy neighbours.

      The air pollution control unit of the Labour Department has four daily monitor- ing stations, and the records in 1976 continued to show a significant reduction in sulphur dioxide concentration. At Hung Hom, the level of sulphur dioxide was only about one 30th of the maximum permitted level of 50 parts per hundred million. Readings at the station at Queen Elizabeth Hospital were about one part per hundred million, while readings at Sham Shui Po and at the Central Market were less than one part per hundred million. The readings at Sham Shui Po, which are normally the highest among the four stations in smoke densities, began to show a steady decrease during the year.

      A three-month preliminary environmental survey of pollution levels in various districts was carried out jointly by the air pollution control unit and the chemistry department of the University of Hong Kong. Four common aerial pollutants-sulphur dioxide, nitrogen oxide, carbon monoxide, and particulates-were monitored at dif- ferent levels in busy streets and in industrial areas to study the trend of air pollution. The findings are now being analysed.

      During the year, the control unit received and investigated 863 air pollution complaints from the public. Although the unit finds that offering constructive advice is more effective than stringent enforcement, it is still sometimes necessary to initate prosecution under the Clean Air Ordinance and its subsidiary regulations against persistent offenders. In 1976 there were 71 prosecution cases with fines ranging from $75 to $2,000.

Farming Wastes

A considerable amount of applied research is being carried out in the Agriculture and Fisheries Department to determine how livestock manures can be processed and

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       profitably re-used locally. The scope of such work is wide and is still in its infancy, but hopefully in time the wastes which are now thought of as nuisances will become assets.

Various pilot schemes are run by the department to determine suitable methods to treat and dispose of farm wastes. Pig and poultry manure still form the major sources of organic pollution in most of the streams in the New Territories, where the manure is often dumped by farmers. On-farm storage bunkers have been developed for pig manure in which the manure dewaters and becomes less noxious. The disposal of such manure is then easier than when it is in its raw state. The poultry manure drier at Pat Heung operated regularly throughout the year, turning manure into fertiliser. In addition, the Agricultural Development Foundation has sponsored the use of a batch type manure drier which seems well suited locally for use on pig manure. It will be located in Sai Kung.

Professor P. C. G. Isaac, the World Health Organisation consultant advising the government on the control of pollution from agricultural wastes, made his third visit to Hong Kong in March. He ran a course organised by the Environment Branch on the control of pollution from agricultural wastes. The course was attended by civil servants working directly with the rural community whose work is affected either directly or indirectly by such pollution problems.

Marine Pollution

In 1976 the marine pollution unit of the Agriculture and Fisheries Department completed its one-year study of Tolo Harbour, undertaken in collaboration with the marine science laboratory of the Chinese University of Hong Kong. The new town of Sha Tin and the old township of Tai Po, which is being developed, are both adjacent to the harbour. The results of the study indicate that the harbour is ecologically complex, and continued and more intensive research will be necessary if ecological problems, arising from increased sewage discharge, are to be avoided. An additional research officer has been appointed for this purpose.

An 18-month survey of the phytoplankton communities of Hong Kong coastal waters was also completed, in collaboration with the Public Works Department. From the results a 'safe level' of chlorophyll in sea water has been determined. This is often exceeded in areas around Hong Kong Island and further to the west, and more intensive research is being initiated into the dynamics of naturally occurring and pollution induced plankton blooms.

Benthic (sea-bottom) survey work is being carried out in collaboration with the University of Hong Kong, which has assigned a full-time research student to this project. A network of regular sampling stations has been established and additional surveys are made whenever possible. On rocky bottoms, progress has been made in co-operation with amateur divers and a survey of typical communities is being undertaken.

A preliminary survey of toxic metal loads in inshore fish and shellfish was carried out during the year and, while the results indicated that there appears to be no immediate risk to consumers' health, potential problems exist and are expected to

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grow worse. A long-term monitoring programme is being devised in collaboration with the Government Chemist and the Urban Services Department.

      The Marine Department's pollution control unit took delivery in March of a new specially built launch equipped with modern pollution control facilities. As well as being able to deal with oil spills whenever they occur, the launch is used in day- to-day inspection of oil terminals and ships and for supervising the work of the harbour cleansing services.

      To combat oil pollution, stocks of dispersants and oil booms are maintained and up to 20 government craft can be equipped with pumps and spraying equipment at short notice. All the equipment provided is operated by personnel who are trained to deal with oil spills and who are aware of the basic dangers of pollution. To protect recreational amenities and the marine environment generally from the damaging effects of floating oil, an oil pollution contingency plan has been prepared. It enables all government departments, commercial interests, auxiliary services, and defence forces to be aware of the procedures for dealing with a major oil spill and the equip- ment available. The oil pollution contingency plan was successfully put into operation on July 6, when an oil spill affected beaches on the south coast of Hong Kong Island. Through the efforts of various government departments, the pollution of coastal waters and beaches--although severe in some places-was dealt with swiftly.

      Another aspect of marine pollution handled by the Marine Department's pollu- tion control unit is the removal of floating refuse. Harbour cleansing fleets have been operating scavenging services in the ports of Victoria and Aberdeen, and inside Yau Ma Tei and Causeway Bay typhoon shelters, for 13 years. In November these services were extended to Tsuen Wan and Chai Wan, and this is expected to lead to a definite improvement in the state of cleanliness of harbour waters. There is also a service to collect domestic refuse from ships in port. The harbour cleansing service is carried out by more than 30 motor cargo vessels and sampans owned and crewed by private contractors, with supervision by staff of the pollution control unit. Public tenders for this service are invited annually, ensuring that the cost to the government is both fair and reasonable. During the year, 3,400 tons of refuse-a daily average of 111⁄2 tons- was lifted from the harbour and collected from ocean-going ships.

      In the six years since it was formed, the control unit has successfully prosecuted many who have caused pollution. Currently, the maximum penalty for polluting the waters of Hong Kong is a fine of $20,000 and six months' imprisonment, plus the costs incurred in clearing or dispersing the pollution. Penalties are to be substantially increased in the near future through legislative amendments.

      During 1976 Hong Kong agreed to participate in three international conventions concerned with marine pollution. One effect of this has been to restrict the use of oil pollution dispersants to only those of approved types which have a low toxicity for marine life.

Conservation and Countryside Management

      Hong Kong's hilly topography has ensured survival of a relatively large expanse of countryside, much of which is scenically very attractive. Steep and rugged slopes

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rise from sea-level to two and three thousand feet and feature rocky crags, wooded ravines with rushing streams, and open hillsides. Some 20 freshwater reservoirs of various sizes nestle among the hills, giving additional charm to the scenery.

About three quarters of Hong Kong's land area is covered with hills and the vegetation on them includes grass, scrub, and some 10,000 acres of woodland-much of it the result of afforestation programmes. The woodlands not only beautify the countryside but are also important in the management of water catchments.

The Country Parks Ordinance which came into effect in early 1976 gave a fresh impetus to a four-year-old programme to develop the recreational potential of the countryside. The new legislation provides for the designation, control and manage- ment of the most important areas of the countryside as country parks, and it enables their development for recreation and tourism purposes. It also gives particular protec- tion to the vegetation and wildlife within the areas.

        Under the ordinance, the Director of Agriculture and Fisheries is the Country Parks Authority. He is advised by the Country Parks Board, which is also responsible for hearing any objections made by the general public-especially when these relate to land matters. Formal designation of the first park is expected to be completed early in 1977.

The Agriculture and Fisheries Department has long been responsible for con- servation and forestry work and for relatively intensive management of areas of countryside. Since 1972 it has been carrying out a programme to improve footpaths and provide picnic and barbecue places, shelters, information and education services, and other facilities. Road access to the countryside is also being improved so that management services can more effectively deal with fire and litter-the most serious problems created by visitors.

The department is also responsible for fire protection, landscape rehabilitation, and the protection of flora and fauna. The Forests and Countryside Ordinance provides for the general protection and management of the vegetation, and special protection is given to certain plants-including native camellias, magnolias, orchids, azaleas, and the Chinese New Year Flower.

The greater part of the countryside is subject to some form of prohibition regarding bird and wild mammal hunting and the carrying of firearms. Overall enforcement of the legislation is carried out by four full-time game wardens supported by 222 other government officials, who have powers of game wardens in addition to their normal duties, and by 31 honorary game wardens. Also, all Justices of the Peace and police officers have the statutory powers of game wardens.

Aside from general conservation of the countryside, Hong Kong has now adopted the concept of identifying and conserving sites which are of special interest to the ecologist-such as a site where there is a rare tree or where a rare species of butterfly can be found. Some 11 have been identified for future conservation action.

Topography and Geology

Hong Kong lies on the edge of an eroded mountain chain which extends along the south coast of China, and is largely composed of folded and metamorphosed

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volcanic and sedimentary rocks with younger intrusions of granitic rocks mostly of the Jurassic period. The oldest sedimentary rocks found in Hong Kong are those of the Tolo Harbour Formation. This formation is exposed at Ma Shi Chau and contains fossils dated as most probably Permian in age.

However, its stratigraphic relationships are somewhat uncertain. The formation of minerals associated with the intrusion of the granitic rocks has been of limited economic benefit to Hong Kong. Lead, zinc, tungsten, beryl and graphite have been mined intermittently, but only in small quantities.

Due to the hilly terrain, agricultural land is restricted. The most important area is the flat alluvium around Yuen Long in the Deep Bay area. Outside the alluvial areas soil cover is usually thin, sometimes no more than two or three inches. In general the natural residual soils are acidic and of low fertility, needing the addition of lime, potash and superphosphates. However, given intensive labour input, water supply rather than soil condition tends to be the controlling factor in farming. The predominantly crystalline character of the rock formations unfortunately makes them unsuitable for underground storage and this makes it necessary to concentrate on the collection of surface run-off for all water supplies. The highly variable rainfall of the area has led to periodic water shortages. Most of Hong Kong's surface water supply has now been captured through the construction of catchments and reservoirs. After completion of the High Island reservoir scheme, desalination processes on a large scale may become necessary.

Hong Kong lies in the double-cropping rice zone of East Asia, but more profitable vegetable crops have increasingly displaced rice during the past 25 years and it is now grown on only about 30 per cent of the area being used for agriculture. Fish ponds are also an important form of rural land use.

Climate

      Although Hong Kong is just within the tropics it is unlike many other tropical places in that it has distinct seasonal changes of weather. During the winter, Hong Kong is subject to frequent outbreaks of cold and often dry air from the very persistent Asian continental anticyclone. It is not uncommon during January, February and March to have temperatures dip below 10°C. The winter monsoon is persistent and blows mainly from the east.

       In summer, winds are much less persistent, being lighter and more variable. Weather is hot and humid with rather frequent showers or thunderstorms. In the spring, temperatures fluctuate widely from day to day and the weather is characteris- tically cloudy, becoming increasingly wet and humid with periods of coastal fog and drizzle. The autumn and early winter months are usually sunny and dry.

       June is the wettest month of the year with rain on two days out of every three and an average of 458.6 mm of rainfall. December is the driest month with an average of only 26.8 mm of rain and only one wet day in every six. The mean annual rainfall is 2 248.1 mm, with about 80 per cent falling between May and September. Climato- logical values of the weather elements are given in Appendix 39.

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The severe weather phenomena which can affect Hong Kong include tropical cyclones between May and November, strong monsoon winds mostly between October and March, frost and ice on hills and inland in the New Territories between December and February, and thunderstorms. Waterspouts and hailstorms are comparatively rare. Strong monsoon winds usually occur in the winter during outbreaks of cold air, although strong southwest monsoon winds are not unknown. The lowest air temperature recorded at the Royal Observatory in Kowloon is 0.0°C, although lower temperatures have been recorded in the New Territories. Thunderstorms may occur at any time of the year but are most frequent between May and August when they occur on about five days in each month.

Tropical cyclones occur in Southeast Asia throughout the year but have never caused gales in Hong Kong between December and April. Normally about five tropical cyclones cause strong winds in Hong Kong each year and they are most common between July and September. About one tropical cyclone a year causes gales. Tropical cyclones usually bring fine and very hot weather when centred near the Philippine Islands, but if they come closer to Hong Kong they bring winds and rain which is heavy and widespread. The severe weather associated with a tropical cyclone usually affects Hong Kong for one to three days.

The Year's Weather

Although exceptionally dry conditions prevailed during the first five months, 1976 was the fifth consecutive year with above average rainfall. The yearly total was 2 197.2 mm-of which nearly 75 per cent was recorded in the three months of June, July and August. Most of the year was warmer and less humid than usual.

There were 27 tropical cyclones reported over the western North Pacific and the South China Sea, and tropical cyclone warning signals were displayed on five occasions in Hong Kong. Typhoon Iris in September was the only tropical cyclone that caused sustained gales in Hong Kong and damage to property was slight. In contrast, the exceptionally heavy rain and violent thunderstorms that developed in the wake of tropical storm Ellen in August caused widespread flooding and disastrous landslips. in many places. Eighteen people were killed in the landslip at the Sau Mau Ping housing estate, while another 12 lost their lives in other incidents.

The first two months of the year were warm, sunny and dry. Although fire danger warnings were issued, numerous fires broke out in the urban areas and large areas of the New Territories were blackened by hill fires. Between February 14 and 18 there was widespread fog over Hong Kong waters and along the south China coast, and as a result one ship went aground at Lei Yue Mun Channel and four others were involved in collisions.

The next three months were generally cloudy with widespread fog on many days in March and April, but no serious accidents were reported at sea. Typhoon Olga remained almost stationary near Luzon from May 21-5, and the fine weather ahead of it gave rise to unusually high temperatures in Hong Kong. On May 26 the Royal Observatory recorded a maximum temperature of 35.2°C, which was the highest in the year and the second highest on record for any May.

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Unlike the previous five months, June was wetter than normal with rainfall about six per cent above average. The southwest monsoon affected south China and the northern part of the South China Sea and the weather in Hong Kong was mainly cloudy with occasional heavy showers and scattered thunderstorms. The rainfall recorded on the two days June 2-3 contributed almost half the month's total. Typhoon Ruby, which affected Hong Kong from June 26-9, was the first tropical cyclone for which warning signals were displayed during the year.

The weather in July was seasonable although rainfall was about 15 per cent above average. Of the four tropical cyclones that developed over the western North Pacific, only severe tropical storm Violet affected Hong Kong, causing frequent heavy showers and isolated thunderstorms.

      Apart from the excessive rain caused by tropical storm Ellen, August was generally warm and sunny. The total rainfall of 765.3 mm was more than double the average figure and ranked as the third highest on record for any August. The 24-hour rainfall of 416.2 mm recorded between 11 am on August 24 and 11 am on August 25 was the highest in any August and the third highest in any month. The two-day total of 511.6 mm recorded on August 24 and 25 created a new two-day record for August and it has only been exceeded on two previous occasions in other months. Another tropical cyclone that brought heavy rain to Hong Kong was severe tropical storm Clara, which passed about 70 miles southwest of Hong Kong on August 6.

      September and October were abnormally cloudy but with below average rain- fall. Typhoon Iris affected Hong Kong from September 18-21 and caused sustained gales. Iris degenerated into an area of low pressure on September 21 over the north- eastern part of the Gulf of Tonkin and remained almost stationary in the vicinity of Hainan Island until the end of the month. During this period the strong monsoon signal was hoisted on three occasions for a total duration of 148 hours 15 minutes, which is the highest monthly figure since 1956 when this signal was first introduced.

Because of the persistence of an intense anticyclone over north China, November was exceptionally cold and dry with the lowest mean temperature on record. The total rainfall in the month was only 2.0 per cent of the average and, although fire danger warnings were in force almost every day, there were many disastrous fires both in the urban areas and in the New Territories.

      Due to the collapse of the continental anticyclone over north China, Hong Kong had a long spell of mild and sunny weather in December. Daily mean tempera- tures remained well above normal on almost every day until the arrival of an intense cold surge late on Christmas Day. The air temperature than fell steadily and on the morning of December 28 a minimum temperature of 5.7°C was recorded-the lowest of the year. Warnings of ice and frost were broadcast so that farmers could protect their crops and livestock. During the three days December 27-9 rime was observed near the top of Tai Mo Shan, where a minimum temperature of -3°C was registered on December 28. Frost was also reported on high ground and in the northern parts of the New Territories. Damage to crops was slight but many young fish in the fish ponds in the New Territories were killed and there was considerable loss of livestock.

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The Royal Observatory

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The Royal Observatory is the government department responsible for meteoro- logy and geophysics. Weather forecasting and storm warning services are particularly important in Hong Kong because an average of 24 tropical cyclones form each year within an area where they could disrupt the international shipping or aviation on which local trade and tourism so largely depend.

In order to provide weather services, the observatory collects about 10,000 weather reports each day from land stations, ships and aircraft. Coded meteorological information arrives on teleprinter links and is fed into a computer system where it is sorted, decoded, printed and archived. A new two-way teleprinter link with Peking was opened in December 1975 as part of a United Nations plan for a global tele- communications system. Since April 1976, automatic message switching of meteoro- logical data between Bangkok, Peking, Tokyo and Hong Kong has been carried out by an IBM S/7 computer.

        Hong Kong's own weather observing network continued to expand during the year and a variety of weather observations are now made regularly at nine stations, while rainfall is measured over a dense network of 150 raingauges. An increasing proportion of the data is now being analysed by computer.

Close liaison is maintained with ships visiting Hong Kong and some 37 selected ships are provided with instruments by the Royal Observatory to encourage them to transmit weather reports which are used in the preparation of forecasts and for locating tropical cyclones. On average, 42 weather reports are received each day from various ships through Hong Kong's two coastal radio stations. All reports are dis- seminated to other centres and also punched onto cards for use in the computer system. Special weather bulletins are broadcast for shipping and fishermen.

All aircraft leaving Hong Kong are given briefings, forecasts, and weather charts. A continuous watch is kept on the weather at airports and along air routes. Opera- tional information and forecasts are exchanged with 35 other airports in 19 countries.

The tropical cyclone warning service is one of the most important functions of the observatory. Whenever a tropical cyclone is located between latitudes 10°-30°N and longitudes 105°-125°E, warnings for shipping are issued every three hours. These provide information on the strength of the circulation, the position and movement of the centre, and the 24-hour forecast position. Objective forecasts prepared on the observatory's computer system are issued to neighbouring countries. Reports from ships and reconnaissance aircraft are received at the observatory and used to locate the centre, and to evaluate the intensity of the tropical cyclone. Cloud pictures, both visual and infra-red, are received directly from orbiting meteorological satellites. The pictures help forecasters and they are also analysed to give information on the loca- tions and intensities of tropical cyclones.

When tropical cyclones approach Hong Kong, warnings are widely distributed by visual signals, telephone, radio and television. Information and forecasts are broadcast at frequent intervals. Advisory bulletins and recommended precautions are also put out to the public. If the centre of a tropical cyclone comes within 240

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nautical miles of Hong Kong, it can be located and monitored by the observatory's radars mounted on the top of Tate's Cairn (580 metres above mean sea level). An iso-echo device is available to map rainfall intensities and a video-time-lapse system enables the recent past movement of the echoes to be studied. Apart from tropical cyclone and heavy rain or thunderstorm warnings, the Royal Observatory also issues strong monsoon, fire hazard, frost, and low temperature warnings whenever necessary.

      The observatory is responsible for Hong Kong's Time Service. Six pip signals from a special crystal clock, accurate to 0.05 of a second, are broadcast every 15 minutes on a frequency of 95 MHz and are relayed by radio and television stations.

Instruments and Measurements

      The seismological section of the observatory operates 12 seismographs in a specially constructed cellar. These instruments record vibrations of both long and short periods transmitted through the ground. On average, tremors from about 800 earthquakes occurring all over the world are detected and analysed each year. Other tremors from underground nuclear explosions, storm microseisms, local blasting or pile-driving are also recorded. Hong Kong lies just outside the circum-Pacific seismic belt and has not suffered serious earthquake damage since 1918. However, an average of two to three minor tremors may be felt each year by residents in certain locations such as on balconies of high buildings. In 1976 there was one such tremor, on February 22, and its intensity was one to two in the Modified Mercalli Scale of 12.

The observatory prepares bulletins on all earthquake tremors recorded and participates in the Tsunami Warning System for the Pacific area. Tsunamis are seismic sea waves that are caused by earthquakes. Whenever an intense earthquake is recorded, with its epicentre anywhere in the Pacific Ocean or the South China Sea, a special warning message is issued.

      The disastrous earthquakes in China and the Philippines in July and August led to the Royal Observatory maintaining a special 24-hour watch in order to provide immediate information to alleviate anxiety, particularly for people having relatives in the affected areas. In addition to the normal continuous recording of earthquakes, the observatory made arrangements to issue reports on any significant earthquakes which occurred at any time of the day or night. Frequent news releases were issued and, because of the considerable public interest, talks were given explaining the nature of earthquakes and the seismicity of the region. The earthquake at Tangshan, in the Peking-Tientsin region of China, which occurred on July 28, was of magnitude 8.2 on the Richter scale. This was followed by an aftershock of magnitude 7.9 on the same day and numerous other smaller magnitude aftershocks. The earthquake and tidal wave in the southern Philippines occurred in mid-August, and there were also serious earthquakes in Guatemala and Italy during 1976.

      Geomagnetic measurements are made at the geomagnetic station near Tate's Cairn, where magnetic variation is also recorded. This is a joint project by the University of Hong Kong and the Royal Observatory, and was made possible by a donation from the Nuffield Foundation.

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The observatory also monitors radioactivity. Regular measurements of beta and gamma activity in the atmosphere, in rainfall and in tap water have been made since 1961 at the King's Park Meteorological Station. The general level of atmospheric radioactivity during 1976 was low.

The observatory maintains meteorological instruments at various locations throughout Hong Kong. Anemometers are installed at 12 sites as wind information is important during tropical cyclones and is also required in connection with a variety of engineering projects. Other meteorological instruments are operated at Hong Kong International Airport, where the safety of aircraft may at times depend on their reliability and accuracy. As the majority of instruments-both electronic and non- electronic―are unique in Hong Kong, all repairs, calibration and maintenance are done by observatory staff.

The observatory runs a reference library with more than 10,000 volumes of textbooks and periodicals. Besides being necessary to staff members of the depart- ment, the library is used by students, teachers, and research workers from local universities and schools. The library also keeps microfilmed copies of historical weather charts and records, and a comprehensive collection of satellite photographs, radar photographs, and time lapse radar films of various meteorological phenomena.

Research

Investigations and basic research in applied meteorology and geophysics were carried out during the year, and meteorological analyses were undertaken to meet the demand from engineering firms and consultants. Meteorological data and clima- tological information were supplied to other government departments and to local and overseas institutes and organisations. More than 200 technical papers have now been published on various aspects of local weather and on a wide variety of geophysical subjects.

In 1976 the observatory was involved in numerical modelling by computer of the abnormal tide levels that occur during tropical cyclones. The findings will be used to ensure that levels of sea walls, reclamations and drainage of various new towns are adequate to prevent flooding. Data from six tide gauges and three wave recorders in different parts of Hong Kong were used in this investigation. Statistics and related meteorological parameters on storm surges experienced in Hong Kong were compiled, and probabilities of coincidence of storm surges and astronomical tides were determined. A hydrodynamical storm surge model which simulates the propagation of tides generated by tropical cyclones from the South China Sea basin to the inlet of Tolo Harbour is being developed.

A numerical barotropic model is being developed to produce prognostic upper- air weather charts for the improvement of day to day weather forecasts and for the prediction of tropical cyclone movements. During the year, probabilities on the occurrence of fresh, strong, and gale force winds in Hong Kong caused by tropical cyclones over the South China Sea were determined. Meteorological situations that caused extreme temperatures in Hong Kong were investigated and the weather con- ditions associated with or preceding the occurrence of frost in Hong Kong were also studied. A study on evaporation and evapotranspiration was also made.

19

Population

    THE total estimated population at the end of 1976 was 4,477,600, with 2,290,300 males and 2,187,300 females. This estimate is based on the population by-census taken in July and August, adjusted by births, deaths and migration. Compared with the estimated population of 3,679,400 in 1966, there has been an increase of 22 per cent over the past 10 years.

      The average annual rate of increase over the 10-year period was 2.0 per cent, with the rate fluctuating year by year owing to changes in migration flow. But the rate of natural increase dropped steadily over the period from 20 to 12.6 per thousand. This was the result of a decline in the birth rate from 25.3 per thousand in 1966 to 17.7 per thousand in 1976, while the death rate remained stable at about five per thousand.

      The 1976 by-census figures show that the population of Hong Kong Island and the Kowloon peninsula increased from 996,200 and 716,300 in 1971-when a full census was taken-to 1,034,780 and 745,170 respectively. A slightly larger increase was recorded for New Kowloon-from 1,478,600 in 1971 to 1,631,180. In the New Territories, however, the population increased from 665,700 in 1971 to 951,520, owing mainly to the development of Tsuen Wan new town, which showed an increase of 183,100 over the past five years.

       During 1976 the government completed its first overall review of its policies which relate to the growth of Hong Kong's population. As a result, the government announced in November that existing controls over legal and illegal immigration are to be maintained. Efforts will also be continued by the Medical and Health Depart- ment and the Family Planning Association to provide yet more comprehensive family planning services. Although Hong Kong's birth rate fell from 25.3 to 17.7 per thousand of the population in the past 10 years, it is calculated that the number of women in the fertile age group between 20 and 35 will grow from 478,400 in 1976 to 738,700 by 1986. The government is to ally the expansion of family planning services with increased publicity and research. In particular, sex education-with an emphasis on the merits of small families-is to be adopted in all schools.

      Hong Kong has a land area of only 1 049 square kilometres and it is one of the most densely populated places in the world. Its population is comparable to that of Norway (4 million in 1974), Guinea (4.3 million), Niger (4.5 million) or the Dom- inican Republic (4.6 million). The overall density of population per square kilometre at the end of 1976 was 4,268. But this figure includes a wide variety of densities by individual areas. According to the 1976 by-census, the density for the metropolitan areas (Hong Kong Island, Kowloon, New Kowloon and Tsuen Wan) was 25,400;

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but for the New Territories it was 554 per square kilometre. These area densities will of course change in the future with the development of more new towns in the New Territories-notably at Sha Tin and Tuen Mun. They are being developed to alleviate high densities in existing urban areas and to cope with the prospect of an increasing population.

The population of Hong Kong is still a very young one-about 42 per cent of the population in 1976 was below the age of 20. But the median age of the popula- tion-which 10 years ago was 20.1-is now 23.7 years. The proportions between the different sections of the population have also changed considerably. In 1966, some 40.9 per cent of the population was under 15; now it is 30.2 per cent. The relative figure for those aged 65 and over has risen from 3.8 per cent to 5.7 per cent. This indicates that there is a greater potentially productive population (aged 15-64) avail- able to support the infants, those who are being educated, or those who have retired. The dependency ratio-the ratio of the young and the retired to all those in the 15-64 age group-dropped from 809 per thousand in 1966 to 561 per thousand in 1976.

       The lower proportion of the population in the under 15 age group is the result of a decline in the birth rate-which is low even compared with some developed countries. The absolute number of births also dropped, from 91,832 in 1966 to 78,486 in 1976. This decline in the birth rate is partly the result of women having fewer children and partly due to a decrease within the prime child bearing age groups in the number of currently married women. In recent years, later marriages have also contributed, while improvements in education and job opportunities for women have almost certainly played their part.

        There was a general decline in mortality after 1951. The death rate dropped to the level of about five per thousand in 1964, since when it has remained much the same. The average life-span of both males and females has increased by seven per cent over the past 16 years, but male and female expectations of life at birth are still very different. Females born in 1976 should live, on average, 7.55 years longer than males; their expectations of life at birth were 75.54 years and 67.99 years respectively.

More than 98 per cent of the population can be described as Chinese on the basis of language and place of origin. At the end of 1976, the number of non-Hong Kong Commonwealth citizens residing in Hong Kong totalled 47,450. These com- prised: British 21,177 (excluding members of the Armed Forces); Indian 7,785; Australian 5,002; Singaporean 2,863; Canadian 2,410; and other Commonwealth countries 8,213. The number of non-Commonwealth alien residents was 29,886, of which the largest groups were: American 6,702; Portuguese 3,844; Pakistani 3,771; Filipino 3,240; Indonesian 1,554; German 1,212; Japanese 1,095; Korean 751; French 715; and Dutch 523.

        About 59 per cent of the population is of Hong Kong birth. Most of these people, and the greater part of the immigrant population, originated from Kwangtung Pro- vince in China. The Cantonese group forms the biggest community while the second biggest group is Sze Yap, followed by the Chiu Chow group. The remaining Chinese

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population have their Heung Ha or origins in other places of Kwangtung, Shanghai, and the coastal provinces of China.

Marriages

      All marriages in Hong Kong are governed by the Marriage Ordinance and the Marriage Reform Ordinance. Under the Marriage Ordinance, notice of an intended marriage must be given to the Registrar of Marriages at least 15 clear days in advance. The registrar has discretion to reduce the period of notice in special circumstances, and there is power to grant a special licence dispensing with notice altogether, but this is done rarely and then only in the most exceptional circumstances.

      Marriages may take place either at places of public worship licensed for the celebration of marriages or at any of the 12 full-time marriage registries and 12 part- time sub-registries located in the main urban districts and rural centres. During the year 36,772 marriages were performed in the registries and 2,928 at licensed places of worship. The total of 39,700 was 3,508 more than in 1975. All records are main- tained at the principal marriage registry at the City Hall.

      The Marriage Reform Ordinance provides that all marriages entered into in Hong Kong on or after October 7, 1971, shall imply the voluntary union for life of one man and one woman to the exclusion of all others and may be contracted only in accordance with the Marriage Ordinance. It declares valid certain customary marriages and validates certain other marriages known as modern marriages, provided in each case they were entered into before October 7, 1971. The ordinance also makes provision for post-registration of these customary and modern marriages and for dissolution of such marriages by mutual consent. During the year, 124 customary and 39 modern marriages were post-registered, including 53 in the New Territories.

Births and Deaths

      The registration of births and deaths is compulsory, and facilities for registration are provided throughout Hong Kong. The General Register Office in Central keeps all records of births and deaths, and there are sub-registries in all main urban and rural districts. In the outlying areas and islands, births are registered at various rural committee offices by visiting district registrars and deaths are registered at local police stations.

The statutory period during which a birth should be registered is 42 days from the date of birth. For this there is no registration fee. For registration between the end of the 42-day period and the expiration of one year from the date of birth a fee of $5 is charged. During the year 76,342 live births and 23,195 deaths were registered, compared with 78,200 and 21,191 respectively in 1975. These figures, when adjusted for under-registration, give a natural increase in population for 1976 of about 55,794. Illegitimate births registered during the year totalled 6,650 compared with 6,543 in 1975.

      A birth which has not been registered within one year may be post-registered with the consent of the Registrar of Births and Deaths and on payment of a $30 fee.

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      During the year 1,743 births were post-registered, including 424 in the New Territories. The principal reason given for non-registration at the time of birth was simple negli- gence, but there continues to be a number of applications for post-registration in respect of adults because facilities for registration were not available until 1932. Also, some cases relate to births during the war years when there was no registration. But in most cases last year applications for post-registration were in respect of minors. New Territories cases are dealt with at local sub-registries or by mobile registration teams.

The General Register Office is responsible for the collection of vital statistics throughout Hong Kong. The information is recorded on various statistical forms and coding sheets for card punching and data processing by the government computer.

20

Natural History

    ON international and local levels, further steps were taken in 1976 to preserve and protect the plants and wildlife in Hong Kong's 300 square miles of countryside.

       More animals and birds came under full protection at the beginning of the year when the Wild Animals Protection Ordinance replaced earlier legislation. It extended the existing list of species covered and also tightened up loopholes in the old law. No animals or birds on the list may be killed or caught, and birds' nests and eggs are also protected.

      In August Hong Kong gave more support to the international fight for nature conservation by implementing the Animals and Plants (Protection of Endangered Species) Ordinance 1976. It extends control over the trade in species of animals and plants in danger of extinction, bringing Hong Kong into line with the 1973 Washington Convention on international trade in endangered species of wild fauna and flora. The previous system of controlling the import and possession of endangered species by licence is to continue, but their export is now also controlled. And, in general, a licence to import will only be issued when the exporting country issues an export licence.

The new law also brought under control certain indigenous and other endangered species of snakes, fish, molluscs and plants, and it increased the number of controlled species of birds and mammals. The range now includes Chinese Pangolins, owls and other birds of prey, Birds of Paradise, green turtles, pythons, and the skins of leopards and other spotted cats.

More than half the countryside is under one or another protection order so as to conserve wildlife, trees and plants. Although most of the big game-like tigers- vanished before conservation began 20 years ago, Hong Kong still has a variety of wild animals and many species of birds.

Wildlife

      Egrets continue to nest at Yim Tso Ha, which is a restricted area under the Wild Animals Protection Ordinance. This is the largest egretry in Hong Kong and five species nest there regularly-Chinese Pond Heron, Night Heron, Cattle and Little Egrets, and the rare Swinhoe's Egret. About 1,000 egrets can be found there during the nesting season between April and September, but only people with permits are allowed into the area. Several other egretries exist in the New Territories but they are not used by Swinhoe's Egret or Night Heron.

The Mai Po marshes, also restricted, are the main attraction for birdwatchers in Hong Kong. The acres of mudflats, shrimp ponds and mangrove form a very rich

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      habitat, particularly for ducks and waders. Three of the species recently added to the list of birds seen in Hong Kong were recorded there-European Spoonbill, Long- tailed Skua and Chestnut-cheeked Starling.

       During the year the Hong Kong Bird Watching Society published a new poster depicting 20 common Hong Kong birds and copies were widely distributed to schools. The Agriculture and Fisheries Department erected three display posters-one about egrets at Yim Tso Ha, and one about the Black-eared Kite at the Kowloon Hills and Aberdeen reservoirs. And further interest in birdlife was stimulated with the publica- tion of 'A new guide to the birds of Hong Kong'.

        Of the larger indigenous mammals, the Chinese Pangolin (Scaly Anteater) is seen occasionally. It grows to a length of 34 feet and is protected by horny scales. Areas around the Kowloon reservoirs are inhabited by monkeys originated from specimens either released or escaped from captivity, and they emerge from the trees to be fed by visitors. There are now small breeding groups of both Long-tailed Macaques and Rhesus monkeys.

        Smaller mammals are common, with the Grey Shrew and the House Shrew being numerous in some rural areas. The Chinese Porcupine, with its strikingly coloured black and white quills, is still present in parts of the New Territories and on Hong Kong Island.

        Over the past decade wild pigs were sufficiently scarce to warrant their being protected under the law. But the numbers increased to such an extent that crop damage caused by them provoked bitter complaints from farmers. The legal protection was accordingly withdrawn in 1974, but an annual closed season from February 1 to September 30 was introduced. With a view to culling the wild pig population, strictly controlled shooting by licensed hunters is now permitted during the winter-when most of the damage to crops takes place.

        Indigenous mammals which can no longer be found are the Large Indian Civet, the Crab-eating Mongoose, the Wild Red Dog or Dhole, tigers and leopards. The last recorded sighting of a leopard was in 1957. Chinese Leopard Cats have occasionally been seen, but the South China Red Fox and the Eastern Chinese Otter have not been reported for many years. The Barking Deer, once plentiful, is now rare in the New Territories and those remaining on Hong Kong Island are confined to densely wooded

areas.

Snakes, lizards and frogs are plentiful in Hong Kong. There are also various species of terrapins and turtles, although none are common. Most of the snakes are non-poisonous and death from snake bite is extremely rare. Apart from back-fanged snakes--the local species of which are not dangerous to man-the venomous land snakes are: the Banded Krait, with black and yellow bands; the Many-banded Krait, with black and white bands; Macclelland's Coral Snake, which is coral red with narrow, black transverse bars; the Chinese Cobra and the Hamadryad or King Cobra, both of which are hooded; the rare Mountain Pit Viper; and the White-lipped Pit Viper or Bamboo Snake. The Bamboo Snake is bright green and, although less ven- omous than others, is not easily seen and strikes readily if closely approached. The

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Hamadryad, Kraits and Corals prey almost exclusively on other snakes. Several species of sea snakes, all venomous, are found in Hong Kong waters but have never been known to attack bathers. An amphibian of special interest is the Hong Kong Newt, which has not been recorded anywhere else in the region.

       Of the 214 recorded species and forms of colourful butterflies, several in their larval forms cause considerable damage to farmers' crops. These include the two commonly found species of Cabbage Whites, the Swallowtails, and the beautiful but less commonly found Small Blue. Among the many local moths are the giant silkworm moths. These include the Cynthia, the Fawn and Golden Emperor, and the Atlas and Moon moths. The Atlas has an average wing span of nine inches and the Moon seven inches. Two of the local plant bugs are noted for their colour and shape. They are the rare and beautifully spotted Tea Bug which has only been recorded on hill-tops, and the Lantern Fly which has delicately coloured wings and a remarkably long fore- head. Dragon and damsel flies are commonly found, as are wasps and metallic- coloured beetles. Of particular interest is the Large Spotted Batocera Long-horn Beetle, which feeds on mountain tallow trees.

       Since its introduction in 1938, the African Giant Snail has become a major pest of vegetable crops and gardens, but in 1976 the snails were late in emerging after the winter and were reported in much lower numbers than in previous years. However, there seems little chance of eradicating this largest terrestrial mollusc. There are currently half a dozen other species of snails which are particularly common pests of vegetables and also several slugs, including Veronicella-a large black slug sufficiently different from all other slugs to be placed in a separate family.

Aquatic Life

       Marine life forms in Hong Kong are diverse and mainly tropical in character, comprising a relatively large number of commercially important species of fish, crustacea and molluscs. The discharge of the largest fresh water system in South China to the west, and the prevailing influence of offshore water masses in the northeast, have created a situation where the westerly sector of Hong Kong has a predominantly brackish water fauna, while the eastern sector has a genuine marine fauna.

       The waters of Hong Kong serve as a nursery ground for a variety of fishes, especially in the Sparidae, Lutjanidae, Carangidae, and isospondylous groups. The abundance of these and other juvenile fishes in summer attracts large-sized transient predators, including the Little Tuna, Sailfish, Dolphinfish and sharks.

       Certain coastal fish groups form viable inshore fisheries-notably the Pomfrets, White Herring, Hilsa Herring, Gizzard Shads, Threadfin, Yellow Croaker, Scads, and Japanese Sea Perch. But the relative abundance of some of these and other species has declined. Squids and cuttlefishes are also seasonally exploited by the inshore fishery. A recent form of resource utilisation is the fattening of natural wild stock of fish fry in floating net cages.

       From time to time dolphins are sighted in Hong Kong waters and identifications have included the Common or Saddle-back Dolphin (Delphinus delphis), the Black

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Finless Porpoise (Neophocaena phocaenoides) and the Chinese White Dolphin (Sotalia chinensis).

Since its introduction more than 100 years ago, the Japanese Oyster (Crassostrea gigas) has been successfully established in Deep Bay, where it is now commercially cultivated.

The freshwater fauna of Hong Kong is relatively poor in variety compared with that of South China. This probably results from the absence of a perpetual system of rivers and lakes. Although there are large quantities of water stored in man-made reservoirs, only a few varieties of fish life have been introduced-primarily for water quality control purposes. The indigenous fauna comprises only limited species of cyprinid, loach and goby. The African Tilapia has established itself in local waters but its initial introduction cannot be traced. Hong Kong now has some 3,500 acres of commercial fish ponds, where the Grey Mullet and seven species of Chinese carp are being produced at a rate of 1.2 tons per acre a year.

Flora

For so small an area, Hong Kong has a large and diverse flora of vascular plants. It is estimated that there are about 2,500 species, native and introduced. The territory is situated near the northern limit of distribution of tropical Asian flora, and the Check List of Species lists a number of plants which are more commonly found in the tropical forest than in the typical Hong Kong vegetation of today.

Before conservation, countless hillsides had been left bare of all trees through centuries of cutting, burning, and exposure to the elements. Their only cover was grassland or scrubland with patches of coarse grass. But now many slopes-partic- ularly those in the water catchment areas-have been replanted with trees of both local and exotic species. These woodlands, and other areas of countryside, are protected and are being developed for the ever increasing numbers of people who spend their leisure time in the country.

Remnants of bygone forests-either as scrub forest or as well developed woodland --occasionally persist in the steep ravines. These have survived the destructive in- fluences of man and fire by their precipitous topography and their moist winter microclimate. It is in such places that many of the more interesting plants occur. There are also small areas of well grown woodlands near the older villages and temples. These fung shui groves, or sacred groves, owe their existence to the protection afforded by generations of villagers in accordance with ancient tradition.

On muddy sea shores an interesting type of vegetation known as the Dwarf Mangrove Association occasionally occurs. Also, on sandy beaches, there are patches of vegetation which are peculiar to these sites. These two vegetation types are particularly well adapted to their environment, providing a useful educational example.

Many species of plants in Hong Kong are noteworthy for the beauty or fragrance of their blossom. They also attract butterflies and other insects, while other plants bear fruits and seeds which are important sources of food for birds and animals.

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NATURAL HISTORY

       Many villagers have a good working knowledge of the usefulness of a number of local plants. Aquilaria sinensis is used in the manufacture of scented joss sticks, and among those used in traditional Chinese herbal medicines are Psychotria rubra, Ardisia crispa, and Strophanthus divaricatus, which are considered good for bruises and certain injuries.

       Botanical explorations carried out by the Hong Kong Herbarium, the two univer- sities and amateur botanists have been productive. Some 19 species of plant hitherto unrecorded in Hong Kong have recently been found and are now represented in the herbarium collection. A new orchid species discovered by Dr S. Y. Hu in 1969 is named Cymbidium maclehoseae in honour of Lady MacLehose, who is a keen naturalist.

The Hong Kong Herbarium was established in 1878 and it contains a collection of about 32,700 plant specimens. It is the government institution responsible for the collection, classification and maintenance of authoritative preserved plant specimens representative of the Hong Kong flora. It disseminates knowledge and information about the plants, and an index of Latin/Chinese/common names is maintained. The herbarium is situated at the headquarters of the Agriculture and Fisheries Depart- ment in the Canton Road government offices in Kowloon, and it is open to the public.

The Zoological and Botanical Gardens under the management of the Urban Council were established, as the Botanic Gardens, in about 1871. The layout of the 17-acre gardens is strictly formal, with wide paths, pavilions, flower beds and a central fountain. Not far from the main entrance is a plant house where tropical, shade- loving plants are cultivated, and on the lawns and grass slopes many trees and flowering shrubs are planted.

      Zoological exhibits in the gardens comprise both mammals and birds. The mammals include White-cheeked Crested Gibbons, Celebes Black Apes, Squirrel Monkeys, Common Marmosets, Golden Agoutis, Prevost's Tree Squirrels, Chinese Porcupines, Raccoons, and Pumas. Their enclosures are designed to encourage breeding and they are attractively laid out within a botanical setting.

       The bird collection is among the best in the Far East, having some 700 specimens representing about 300 species from most parts of the world. The zoo specialises in breeding Peacock Pheasants, especially the now seriously endangered Palawan Peacock Pheasant. More than 150 have been bred in the gardens during the past 11 years, and many of them distributed to zoos and bird collections throughout the world. Another three species of Peacock Pheasants were also bred during 1976. A recently-established flock of Flamingoes produced its first chick unexpectedly early, and, although the chick was lost apparently by a senseless act of vandalism, there are hopes for future breeding of the flock under tighter security arrangements. The construction of six new breeding aviaries was completed in 1976.

21

History

THROUGHOUT its history Hong Kong has always been dependent on the initiative of its people and their ability to make the most of whatever resources are available.

        The land itself has never offered an easy living. There are few mineral resources and agricultural land is restricted by the hilly terrain and generally thin soil cover. Even water supplies required the exercise of much ingenuity as soon as the popula- tion began to grow.

The territory's one great natural asset is its harbour. The British colony of Hong Kong was set up in 1842 as a place from which to trade with China, and ships from many parts of the world soon filled Victoria Harbour.

For the next 100 years Hong Kong earned its livelihood as an entrepot. It diver- sified and began to develop its industries in the 1950s after a period of economic stagnation caused by the United Nations embargo on trade with China. The impetus towards industrialisation was provided by the needs and aspirations of the 1.5 million people who had flooded into Hong Kong from China since the end of the Second World War-one of many influxes which have influenced the history of Hong Kong. About three quarters of a million entered during 1949 and the spring of 1950 as a result of civil war in China, and among these migrants were entrepreneurs with capital. It was adaptation to these circumstances which brought about the industrial and social developments that characterise the Hong Kong of today.

The Past Decade

        From the start, the industrial revolution was based on cotton textiles, gradually adding woollens and, in the late 1960s, man-made fibres and made-up garments. These products are still the mainstay of Hong Kong's economy, but major contribu- tions are made as well by plastic goods and electronic products. There are also many other industries which have helped to raise the value of the territory's domestic exports to more than 14 times the $2,282 million recorded in 1959-the first year domestic exports were separated from re-exports.

       The past 10 years have seen not only growth in the volume of production but also continuous improvement in designs, quality standards and the sophistication of products as well as production methods. As growth has resulted in higher labour costs and in female workers becoming less readily available, mechanisation and automation have been increasingly adopted. To encourage and facilitate this, the government established the Hong Kong Productivity Centre in 1967, and the Federa- tion of Hong Kong Industries established the Hong Kong Design Council and the Hong Kong Packaging Council.

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HISTORY

       New industries have grown under the stimulation of the modified land policy adopted in 1973 in order to allow the heavier, more technological industries to develop more easily. In 1976, the Industrial Estates Provisional Authority was formed to stimulate growth and diversification of industry further. The construction of the first of the authority's estates-designed specifically for the heavier industries-also began in 1976.

This economic expansion has enabled the government to increase its social and other services, and developments in these spheres have in recent years changed the face of Hong Kong.

Since the first public housing estate was built in 1954, government-subsidised housing has been provided for nearly two million people. Over the past decade, an average of more than 20,000 homes a year have been built in the public sector. The early rudimentary designs have been progressively improved upon and the standard amount of floor space in new flats has been increased. There have also been improve- ments in the general design and layout of public housing estates, particularly in the provision of social and commercial facilities. By the end of 1976 the Housing Authority had begun implementing plans for increasing construction output, redeveloping the oldest estates, and further improving building and design standards. The authority had also begun to put into effect the government's plan to build homes for sale within the public housing sector.

       Expenditure on education has more than quadrupled in the past 10 years, amount- ing to $1,376 million for 1976-7. School enrolment is now more than 1.3 million-- compared with only 4,000 at the end of the Second World War. Building projects completed since 1966 include 60 government and aided secondary schools and 149 aided primary schools. In addition, 37 private secondary and nine private primary schools were built. In 1971, free primary education was introduced in all government and the majority of aided schools, and a form of compulsory primary education was enforced. The government is now nearing its objective to give every child nine years of subsidised education, and all Primary 6 leavers are to be provided with subsidised secondary school places by 1978. Hong Kong's first technical institute was opened in 1969 and today there are three technical institutes, with a fourth and fifth scheduled to open within the next three years.

At the University of Hong Kong and the Chinese University of Hong Kong, the total number of students has more than doubled in the past 10 years and enrolments in September 1977 are expected to total about 8,800. The Hong Kong Polytechnic, which began in 1972 with 1,834 day-time students, will have about 5,650 such students in September 1977-an increase of nearly 300 per cent in five years. Part-time and evening students have increased by about 200 per cent.

       Medical and health services are continually being improved and expanded and the number of hospital beds has risen over the past decade from 13,366 to 19,270. Another 5,000 beds are to be provided in the next eight years. The Medical and Health Department's annual expenditure is now more than three times what it was in 1966 and subventions to the many non-government medical institutions and organisations have increased more than fourfold. The development of maternal and child health

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213

services has been mainly responsible for reducing the infant mortality rate to a level which is now lower than in many developed countries, and a wide variety of other services have brought about a generally good state of health throughout the com- munity. A decade ago, tuberculosis was an important health problem in Hong Kong, accounting for more sickness and deaths than all other communicable diseases com- bined. Today, cancer and heart diseases are the main causes of death.

The most dramatic increase in government expenditure has been registered in the field of social welfare. In 1966-7, expenditure plus subventions to voluntary agencies amounted to $20.5 million. In 1976-7 the figure was some $363 million. Most of the developments in this field have taken place since the expanded public assistance scheme was introduced in 1971, giving assistance in the form of cash grants instead of the dry rations provided under the previous programme. In 1973, a five- year plan was introduced to cover the development and improvement of social welfare services, and several new schemes came into being that year. One provided non- means-tested allowances for the severely disabled and the elderly infirm; another provided for compensation for victims of crimes of violence and for people acciden- tally injured or disabled by law enforcement officers in the execution of their duties; and a third scheme established a network of 17 community and youth officers throughout the territory. The Institute for Social Work Training was also established. The five- year plan is reviewed annually and at the same time it is extended for a further year. In 1976 a major review was undertaken in order to produce a more comprehensive programme to safeguard all vulnerable groups in the community. The work of the government is supplemented by a variety of services offered by more than 100 volun- tary agencies.

Through labour legislation, comprehensive protection is now provided for wages, rest days, holidays with pay, maternity leave, sick pay and severance payments. Legis- lation also gives protection in respect of workmen's compensation and against anti- union acts. Normal hours of work for women and young people employed in industry have been reduced from 10 to eight a day. Some 15 regulations have been introduced in the past decade to improve safety standards in a wide range of hazardous trades and processes. Labour tribunals have been set up by statute to supplement the con- ciliation service of the Labour Department, which now has the backing of the Labour Relations Ordinance. Legislation covering industrial training and apprenticeship is helping Hong Kong to develop its manpower resources to meet the needs of the economy. Altogether 132 items of labour legislation have been enacted since 1967. Further improvements are planned for weekly rest days, severance pay and sickness benefits in 1977, and the provision of one week's paid annual leave from 1978.

New roads and flyovers have completely transformed road travel. It is barely 10 years since Hong Kong's first road tunnel-the Lion Rock tunnel--was opened in 1967. The cross-harbour tunnel, built by private enterprise with government parti- cipation, was opened in 1972. Now a second Lion Rock tunnel is nearing completion, so that there will be two vehicle lanes in each direction between Kowloon and the New Territories; a tunnel under the international airport has recently been completed, as part of a road traffic route up the eastern side of the Kowloon peninsula; and in 1976 tenders were called for the Aberdeen tunnel, which will link the northern and

214

HISTORY

southern sides of Hong Kong Island and will connect with the cross-harbour tunnel route. The largest tunnelling project of all-for the mass transit railway-began at the end of 1975 and got seriously under way in 1976. The 15.6-kilometre initial section of the railway is due to be fully operative by 1980. Buildings in Hong Kong have risen to as high as 40 and 50 storeys in the past 10 years, with the 52-storey Connaught Centre-completed in 1973-being the second tallest building in Asia. The 60-year-old railway station was replaced in 1975 with a new $150-million terminus, and in 1976 work was begun on a 15,000-spectator indoor sports stadium which is to form part of the new station complex.

Early History

      Investigation has shown that people have lived in Hong Kong from primitive times, but population was sparse up to the 19th century. 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 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 Tang 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 11th 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 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 in World War II, to make room for 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. Some of his followers found refuge on Lantau Island, where their descendants are still to be found.

A place to trade from

Hong Kong's development into a commercial centre began with its founding as a British colony in 1842. At the end of the 18th century the British dominated the foreign trade at Canton but found conditions unsatisfactory, mainly because of the conflicting viewpoints of two quite dissimilar civilisations.

       The Chinese regarded themselves as the only civilised people and foreigners trading at Canton were subject to humiliating personal restrictions. Confined to the factory area, they were allowed to reside only for the trading season, during which

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215

they had to leave their families at Macau. They were forbidden to enter the city and to learn the Chinese language. Shipping dues were arbitrarily varied and generally much bickering resulted between British and Chinese. Yet there was mutual trust and the spoken word alone was sufficient for even the largest transactions.

        Trade had been in China's favour, and silver flowed in until the growth of the opium trade from 1800 onwards reversed this trend. The outflow of silver became more marked after 1834, when the East India Company lost its monopoly of the China trade and the foreign free traders. The company, hoping to get rich quickly, joined the lucrative opium trade, which the Chinese had made illegal in 1799.

        This led to the appointment of Lin Tse-hsu in March 1839 as special Commis- sioner in Canton, with orders to stamp out the opium trade. A week later he surround- ed the foreign factories with troops, stopped food supplies and refused to allow anyone to leave until all stocks of opium had been surrendered and dealers and ships' masters had signed a bond not to import opium on pain of execution. Captain Charles Elliot, RN, the British Government's representative as Superintendent of Trade, was shut up with the rest and authorised the surrender of 20,283 chests of opium after a siege of six weeks.

        But he would not allow normal trade to resume until he had reported fully to the British Government and received instructions. The British community retired to Macau and, when warned by the Portuguese Governor that he could not be respon- sible for their safety, took refuge on board ship in Hong Kong harbour in the summer of 1839.

        Lord Palmerston, the Foreign Secretary, decided that the time had come for a settlement of Sino-British commercial relations. Arguing that, in surrendering the opium, the British in Canton had been forced to ransom their lives-though in fact their lives had never been in danger-he demanded either a commercial treaty which would put trade relations on a satisfactory footing, or the cession of a small island where the British could live free from threats under their own flag.

       An expeditionary force arrived in June 1840 to back these demands and thus began the so-called First Opium War, 1840-2. Hostilities alternated with negotiations until agreement was reached between Elliot and Keshen, the Manchu Commissioner. Lin had been replaced by Keshen after his exile in disgrace over the preliminaries of a treaty.

        Under the Convention of Chuenpi, January 20, 1841, Hong Kong Island was ceded to Britain. A naval landing party hoisted the flag at Possession Point on January 26, 1841 and Elliot proclaimed Hong Kong a British colony. In June he sold plots of land and settlement began.

        Neither side accepted the Chuenpi terms. The cession of a part of China aroused shame and anger among the Chinese, and the unfortunate Keshen was ordered to Peking in chains. Palmerston was equally 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 had been demanded as an alternative to a commercial treaty.

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HISTORY

'You have treated my instructions as if they were waste paper,' he told Elliot in a magisterial rebuke, and replaced him by Sir Henry Pottinger who arrived in August 1841. The latter conducted hostilities with determination. A year later, after pushing up the Yangtze River and threatening to assault Nanking, he brought the hostilities to an end by the Treaty of Nanking, August 29, 1842.

In the meantime, the Whig Government in England had fallen and in 1841 the new Tory Foreign Secretary, Lord Aberdeen, issued revised instructions to Pottinger, dropping the demand for an island.

       Pottinger, who had returned to Hong Kong during the winter lull in the cam- paign, was pleased with the progress of the new settlement and, in the Treaty of Nanking, deviated from his instructions by successfully demanding both a treaty and an island, thus securing Hong Kong. In addition five Chinese ports, including Canton, were opened for trade. The commercial treaty was embodied in the supplementary Treaty of the Bogue, October 1843, by which the Chinese were allowed free access to Hong Kong Island for trading purposes.

Lease of New Territories

      The Second Anglo-Chinese War, 1856-8, arose out of disputes over the inter- pretation of the earlier treaties and over the boarding of a British lorcha, the 'Arrow', by Chinese in search of suspected pirates. The Treaty of Tientsin, 1858, which ended the war, gave the British the privilege of diplomatic representation in China. The first British envoy, Sir Frederick Bruce, who had been the first Colonial Secretary in Hong Kong, was fired on at Taku Bar on his way to Peking to present his credentials, and hostilities were renewed from 1859-60.

       The troops serving on this second expedition camped on Kowloon peninsula, as the earliest colony photographs show. Finding it healthy, they wished to retain it as a military cantonment, with the result that Sir Harry Parkes, Consul at Canton, secured from the Viceroy the perpetual lease of the peninsula as far as Boundary Street, including Stonecutters Island. The Convention of Peking, 1860, which ended the hostilities, provided for its outright cession.

       Other European countries and Japan then demanded concessions from China, particularly after Germany, France and Russia had rescued China from the worst consequences of its defeat by Japan in 1895. In the ensuing tension Britain felt that efficient defence of Hong Kong harbour demanded control of the land around it.

By the Convention of Peking on June 9, 1898, the New Territories, comprising the area north of Kowloon up to the Shum Chun River, and 235 islands, were leased for 99 years. The move was directed against France and Russia, not against China, whose warships were allowed to use the wharf at Kowloon City, where Chinese authority was permitted to continue 'except in so far as may be inconsistent with the military requirements for the defence of Hong Kong'. An Order in Council of December 27, 1898 invoked this clause and the British thus unilaterally took over Kowloon City. Some desultory opposition when the British took over the New Territories in March 1899 soon disappeared. The area was declared part of the colony but was administered separately from the urban area.

The Rural Scene

Beyond the skyscrapers and the bustle of city life, Hong Kong has more than 650 villages scattered across the mainland and islands of the New Territories. Some of these villages date back to the 11th century and descendants of the original families or clans still live there. The preservation and improvement of village life has for many years been furthered by a system of rural committees, through which more than 900 village representatives help to run their own villages and provide a bridge between the government and the people. With the new towns of Sha Tin, Tuen Mun, and Tsuen Wan being built in the New Terri- tories to provide homes and nearby em- ployment for the crowded city population, special care is now being taken to make sure that the villages in these areas are not disrupted any more than is necessary. Villages are preserved wherever possible, others are resited close by and with new village style housing, and villagers who have to move are offered accommodation alongside old neighbours. There is com- pensation for the loss of land holdings, and options on new land are also offered.

A farming village at Lai Chi Wo (cover), on the northeast coast of the New Terri- tories. The woodsheds (above) guarded by pictures of door gods are in the 200-year-old village of Fan Lay on Lantau Island; and at Shui Tau, near Yuen Long, joss sticks burn in an ancestral hall close to a village house with a circular doorway.

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      The village pond at Shui Tau and two wings of an old house with the decorated roofs for which this 17th century village is noted.

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"A villager smoking his bamboo water pipe `and (right) two of the last residents in a largely abandoned farming village near Sai Kung.

Ching Dynasty cannon once protected ship- ping off Lantau and (below) a gateway into the walled village of Kat Hing Wai, near Yuen Long.

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Tiled rooftops at Sai O in the Sai Kung district and (right) a small house in a fishing village on Kat O Island.

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Well secured villagers and (below) a corner of the walled village of Tsang Tai Uk-to be preserved within Sha Tin new town.

**** More door gods and good wishes pasted on and around the doors in the village of Sai O on Kat O Island

-which, with its odd shape, is also known as Crooked Island.

An ancient cannon overlooks the new fishermen's village on Kat O Island, the most northerly of all of Hong Kong's 236 islands.

CRITY

     Hakka Wai at Tsung Pak Long, near the border with China, has been inhabited for almost six centuries, but the present houses in the village are less than 100 years old.

HISTORY

Initial Growth

217

        The new colony did not go well at first. It attracted unruly elements, fever and typhoons threatened life and property, and crime was rife. The Chinese influx was unexpected as it was not anticipated they would choose to live under a foreign flag. The population rose from 32,983 (31,463 Chinese) in 1851 to 878,947 (859,425 Chinese) in 1931.

        The Chinese asked only to be left alone, and thrived under a liberal British colonial rule. Hong Kong became a centre of Chinese emigration and of trade with Chinese communities abroad. Ocean-going shipping using the port increased from 2,889 ships in 1860 to 23,881 in 1939. The dominance of the China trade forced Hong Kong to conform to Chinese usage and to adopt the silver dollar in 1862 as the cur- rency unit. In 1935, when China went off silver, Hong Kong had to follow suit with an equivalent 'managed' dollar.

Hong Kong's administration followed the normal Crown Colony pattern, with a governor nominated by Whitehall and nominated Executive and Legislative Coun- cils with official majorities. The first unofficial members of the Legislative Council were nominated in 1850, and the first Chinese in 1880; the first unofficial members of the Executive Council appeared in 1896, and the first Chinese in 1926. Two electoral bodies, the Hong Kong General Chamber of Commerce and the Unofficial Justices of the Peace, were each allowed from 1885 onwards to nominate a member of the Legislative Council.

The British residents on a number of occasions strongly pressed for self-govern- ment, but the home government steadily refused to allow the Chinese majority to be subject to the control of a small European minority.

A Sanitary Board was set up in 1883, became partly elected in 1887, and developed into an Urban Council in 1936. The intention at first was to govern the Chinese through Chinese magistrates seconded from the mainland, but this system of two parallel administrations was only half-heartedly applied and broke down mainly because of the weight of crime. It was completely abandoned in 1865 in favour of the principle of equality of all races before the law. In that year the Governor's instruc- tions were significantly amended to forbid him to assent 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'. Government policy was laissez-faire, treating Hong Kong as a market place where all were free to come and go and where government held the scales impartially.

Public and utility services developed--the Hong Kong and China Gas Company in 1861, the Peak Tram in 1885, the Hong Kong Electric Company in 1889, China Light and Power in 1903, the electric Tramways in 1904 and the government-owned Kowloon-Canton Railway, completed in 1910. There were successive reclamations dating from 1851-notably one completed in 1904 in Central District, which produced Chater Road, Connaught Road and Des Voeux Road, and another in Wan Chai between 1921-9.

218

HISTORY

A system of public education began in 1847 with grants to the Chinese vernacular schools, and the voluntary schools-mainly run by missionaries-were brought in by a grant scheme in 1873. The College of Medicine for the Chinese, founded in 1887, developed into the University of Hong Kong in 1911 with arts, engineering and medical faculties.

        The Chinese Revolution of 1911 overthrew the Manchu Dynasty. There followed a long period of unrest in China and large numbers of refugees found shelter in the colony. Chinese participation in World War I 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 causing con- siderable disruption to life in Hong Kong. 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.

The 1930s and the Second World War

During World War I, Japan had presented its 'twenty-one demands' to China. In 1931 Japan occupied Manchuria and the 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, then 500,000 in 1938 and 150,000 in 1939, bringing the population at the outbreak of World War II 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.

        Japan entered the Second World War with its attack on Pearl Harbour and an attack on Hong Kong the following day, December 8, 1941. The Japanese attacked from the mainland and subsequently the British were forced to retire from the New Territories and Kowloon to Hong Kong Island. After a week of stubborn resistance on the island the defenders, including the local Volunteer Corps, were overwhelmed and Hong Kong surrendered on Christmas Day. The Japanese occupation lasted for three years and seven months.

Trade virtually disappeared, currency lost its value, food supply was disrupted and government services and public utilities were seriously impaired. Many residents moved to Macau, the Portuguese province hospitably opening its doors to them. Towards the latter part of the occupation, the Japanese sought to ease the food problems by organising 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 escaping allied personnel were assisted by the rural population.

        Soon after news of the Japanese surrender was received on August 14, 1945, a provisional government was set up by the Colonial Secretary, Mr (later Sir) Frank Gimson. Rear Admiral Sir Cecil Harcourt arrived on August 30 with units of the

HISTORY

219

British Pacific Fleet to establish a temporary military government. Civil government was formally restored on May 1, 1946, when Sir Mark Young resumed his interrupted governorship.

        With the return of peace, Chinese civilians who had moved from Hong Kong to China during the war moved back again-and with them many other migrants. The population rose from an estimated 600,000 in August 1945 to more than two million in 1950. The government's early efforts to cope with this population explosion had, of necessity, to concentrate on basic needs. But from these efforts grew the social structure which is now an integral part of the modern Hong Kong.

22

   Constitution and Administration

¢

HONG KONG, as a British Crown Colony, is administered by the Hong Kong Govern- ment, of which the office of Governor is the central feature. The British Government's policy towards Hong Kong is that there shall be no major constitutional change-nor is there much popular pressure for it.

The Governor

The Governor is the representative of the Queen and, as head of the government, presides at meetings of the Executive Council. He is also the President of the Legisla- tive Council, where he possesses both an original and a casting vote. All bills passed by the Legislative Council must have his assent before they become law. With strictly defined exceptions, he is responsible for every executive act of the government.

After appointment by the Queen, the Governor derives his authority from the Letters Patent passed under the Great Seal of the United Kingdom. These Letters Patent create the office of Governor and Commander-in-Chief of Hong Kong, and require him to observe its laws and such instructions as may be given him by the Queen or Secretary of State. Among the more important of these are the Royal Instructions and Colonial Regulations.

Executive Council

The composition of the Executive Council is determined by the Royal Instruc- tions, which provide that it shall consist of five ex-officio members (the Commander British Forces, the Chief Secretary, the Financial Secretary, the Attorney General and the Secretary for Home Affairs) together with such other persons as are appointed by the Queen, or by the Governor on the instructions of the Secretary of State. At the present time, one official member and eight unofficial members have been ap- pointed in addition to the five ex-officio members.

The Executive Council usually meets once a week throughout the year but additional meetings are held if necessary. The Governor presides at meetings, although he is not a member. The council's function is to advise the Governor, who is required by the Royal Instructions to consult it on all important matters of policy, subject to certain exceptions such as matters of extreme urgency.

Meetings of the Executive Council are called by the Governor, who alone decides in accordance with the Royal Instructions which matters to submit for its advice. However, should the Governor not submit a matter for the council's advice when requested by a member to do so, a record of the request and refusal must be entered in the minutes of the council if the requesting member so requires.

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221

The decision on any question which comes before the council is that of the Governor. If he decides to act in opposition to the advice given by the majority of members, he is required to report his reasons to the Secretary of State.

       The Governor in Council (the Governor acting after receiving the advice of the Executive Council) is also the statutory authority for making regulations, rules, and orders under a number of ordinances. The Governor in Council also considers appeals, petitions, and objections under ordinances which confer such a statutory right of appeal.

Legislative Council

       This council comprises the Governor, who is both a member and president, four ex-officio members (the Chief Secretary, the Attorney General, the Secretary for Home Affairs, and the Financial Secretary), 15 official members and 22 unofficial members.

       The official membership was increased from 10 to 15 and the unofficial member- ship from 15 to 22 in August so as to ease the burden of work on individual members and also to include members from a wider social background. At the same time, the potential membership was raised to a ceiling of 18 official members and 23 unofficial members. With the exception of the ex-officio members, all members are appointed by the Queen or by the Governor on the instructions of the Secretary of State.

        The primary functions of the Legislative Council are to enact legislation and to control the expenditure of public funds. The Queen has the power to disallow laws passed by the council and assented to by the Governor. In addition, laws having effect within Hong Kong may also be made by the Parliament of the United Kingdom and by the Queen by Order in Council in exercise either of prerogative powers or of powers conferred by an English Act of Parliament.

       The procedure in the Legislative Council has provision for public debates and questions. There is a debate on financial and economic affairs in February-March of each year during the second reading of the Appropriation Bill. A wider-ranging debate on government policy in general takes place at the opening of the new session of the council in October each year. The council meets in public once every two weeks throughout the year except for a recess of about two months during August-October.

        The Finance Committee of the council-which consists of the Chief Secretary (chairman), the Financial Secretary, the Director of Public Works, and all the un- official members of the Legislative Council-considers requests for public expenditure and the supplementary provision of funds. The committee meets in private.

Judiciary

       Under powers conferred on the Governor by the Supreme Court Ordinance- which came into operation in February-the Chief Justice, the Justices of Appeal and the Judges of the High Court are appointed by Letters Patent issued under the Public Seal by the Governor on instructions from the Queen, given through and on the recommendation of the Secretary of State. District judges and magistrates are

222

CONSTITUTION AND ADMINISTRATION

appointed by the Governor by instrument under the Public Seal or by warrant. The qualifications of Justices of Appeal and Judges of the High Court are prescribed in the Supreme Court Ordinance and those of district judges in the District Court Ordinance.

The function of the Judiciary is to try all prosecutions and to determine civil disputes, whether between individuals or between individuals and the government. The principle of English constitutional law that, in the performance of their judicial acts, members of the Judiciary are completely independent of the executive and legis- lative organs of the government, is fundamental in Hong Kong. The English common law and the rules of equity are in force in Hong Kong, so far as they may be applicable to local circumstances. English Acts of Parliament are in force in Hong Kong only if applied by the Legislative Council or by their own terms or by an Order in Council. Locally enacted laws of Hong Kong are consolidated and revised periodically.

The courts of justice in Hong Kong are the Court of Appeal, the High Court, the District Court, the Magistrates Courts, the Coroners Court, the Tenancy Tri- bunal, the Labour Tribunal, the Lands Tribunal and the Small Claims Tribunal.

        Magistrates exercise criminal jurisdiction over a wide range of indictable and summary offences. In indictable offences, their powers of punishment are restricted to a maximum of two years' imprisonment or a $2,000 fine for any one offence, unless the law in regard to any particular offence prescribes that they may impose some higher penalty. Cumulative sentences of imprisonment imposed by magistrates when trying two or more offences together may not exceed three years. Magistrates also hold preliminary enquiries to decide whether persons accused of the most serious offences should be committed for trial to the High Court. They also transfer criminal cases to the District Court for trial, on the application of the Attorney General. There is a coroner's court in Kowloon for the whole territory.

The District Court, established in 1953, provides a simple method of trial of civil disputes in which the value of the subject matter is under $20,000, or $15,000 in the case of land. The court also tries criminal cases transferred to it by the magistrates. It exercises appellate jurisdiction in stamp and rating appeals and in Tenancy Tri- bunal matters, and ordinary jurisdiction under the Distress for Rent Ordinance and the Workmen's Compensation Ordinance. Trial in both civil and criminal proceed- ings in the District Court is by a judge sitting alone, and he may not award more than seven years' imprisonment.

The High Court's civil jurisdiction is similar to that of the English High Court. It also exercises jurisdiction in lunacy, bankruptcy and company winding-up matters. The most serious criminal offences are tried by a judge of the High Court sitting with a jury of seven. A summary of cases heard and dealt with in all courts for the years 1974-6 is in Appendix 32.

The highest court in Hong Kong is the Court of Appeal, which is composed of the Chief Justice and two Justices of Appeal. It hears appeals from the High Court and the District Court and has jurisdiction corresponding roughly to that of the Court of Appeal in England. Appeals may be brought from the Court of Appeal to the Judicial Committee of the Privy Council in London.

CONSTITUTION AND ADMINISTRATION

223

        The Labour Tribunal, which complements the labour relations service of the Labour Department, was set up on a trial basis in 1973 to provide speedy settlements to individual money claims arising from contracts of employment. Because of its success it has become a permanent judicial establishment.

       The Lands Tribunal adjudicates on all statutory claims for compensation in respect of land. The tribunal's province includes claims made under the Mass Transit (Land Resumption and Related Provisions) Ordinance, which was enacted to meet the special land acquisition needs of the mass transit railway.

       The Small Claims Tribunal Ordinance, which established a tribunal with juris- diction to deal with monetary claims involving amounts not exceeding $3,000, came into operation in October. The procedure in the tribunals-one on Hong Kong Island and one in Kowloon-is simple and informal and legal representation is not allowed.

Legal Aid

       The comprehensive legal aid schemes that operate in Hong Kong are administered by the Legal Aid Department. Legal aid is available for criminal cases in certain courts and for most kinds of civil cases.

In general, legal aid is granted for criminal cases if an applicant passes the reason- ably generous means test prescribed by the Legal Aid in Criminal Cases Rules, and if the Director of Legal Aid is satisfied that it is in the interests of justice that legal aid should be given. Such cases comprise any criminal trial in the High Court (any trial on indictment by a judge and jury); any criminal case tried in the District Court where the offence charged is punishable by imprisonment for not less than 14 years (this means that aid is available for about 75 per cent of all the criminal cases tried in the District Court); and criminal appeals from magistrates to the High Court and from the District and High Courts to the Court of Appeal if it appears that there are argu- able grounds of appeal.

        Legal aid for a civil case is normally granted if an applicant satisfies the Director of Legal Aid that he has reasonable grounds for bringing or defending the proceedings or appeal to which the application for legal aid relates, and if the applicant passes a means test. The upper limits of this are that the applicant's monthly disposable income should not exceed $700 and his disposable capital should not be more than $4,000. In describing disposable income and disposable capital in relation to legal aid cases, it should be borne in mind that by reason of the Legal Aid (Assessment of Contribu- tions) Regulations, people with real incomes far in excess of $700 a month and with real capital of very much more than $4,000 qualify for legal aid-many of them for free legal aid. It is thought that about two thirds of the population are covered by the civil legal aid limits.

        The most common civil cases for which legal aid is given are claims for workmen's compensation, damages for personal injuries or death as a result of traffic accidents, bankruptcy proceedings, company winding-up cases, divorce and other matrimonial proceedings.

224

CONSTITUTION AND ADMINISTRATION

       Legal aid consists of professional legal representation either free of charge to the applicant or on payment to the Legal Aid Department of a relatively small contribu- tion towards legal costs. The representation is by professional lawyers employed in the litigation unit of the Legal Aid Department, or by solicitors and barristers in private practice whose legal fees are paid by the department. In the event of a legally aided person losing a civil case, the Legal Aid Department will normally pay not only the costs of the aided person but also the legal costs that the aided person might otherwise have to pay the successful party.

       In criminal cases, although the Legal Aid Department's professional officers frequently act as instructing solicitor for an accused person or appellant, the advocacy work in court is done by legal practitioners in private practice. For civil cases, barris- ters are instructed and briefed wherever and whenever it is the normal legal practice to do so.

       The proper functioning of the legal aid schemes depends on the closest co- operation between the Legal Aid Department, the Bar Association and the Law Society of Hong Kong. A large number of solicitors in private practice have now joined the various legal aid panels and virtually all members of the Hong Kong Bar (including Queen's Counsel) are prepared to take on both civil and criminal legal aid

cases.

       In 1976 the department reviewed the legal aid system with a view to extending legal aid to all criminal cases tried in the District Court and to raising the means test in order to make the legal aid scheme embrace a larger proportion of the community. In addition, the department made plans to open a branch office in Kowloon.

Urban Council

        The Urban Council is a body corporate with its own ordinance. It is responsible for managing its own finances and is the only body participating in the business of government in Hong Kong to consist solely of members of the public. There are 24 members on the council-12 appointed by the Governor and 12 elected. The term of office of both appointed and elected members is four years, but a member may be re-appointed or re-elected for further terms. The chairman is elected by the council and can be an elected member, an appointed member, or any person who is not a member but has agreed to accept election to such office. The vice-chairman is elected from among the 24 members of the council.

       The Urban Council's responsibilities are restricted to Hong Kong Island, Kowloon, and New Kowloon, which together have a population of about 3.4 million. The council's main duties are: public sanitation and cleansing; the licensing and hygienic control of all food premises, offensive trades, bathhouses, and laundries; and the management and control of markets, abattoirs, hawkers, cemeteries, crema- toria and funeral parlours. Other duties include: control and management of the City Hall, museums, and football stadia; provision and management of public libraries and places of public recreation-such as bathing beaches, swimming pools, tennis

CONSTITUTION AND ADMINISTRATION

225

and squash courts, games halls, sports grounds, playgrounds, and parks; provision and patronage of cultural services and outdoor entertainment; the licensing of places of public entertainment; and liquor licensing. In all these fields the council's policies and decisions are carried out by the Urban Services Department, the director of which is the principal executive officer of the council under the Urban Council Ordinance.

        The council's main revenue is derived from its share (35.3 per cent) of the yield from rates in the urban area. Fees and charges provide other sources of income. In the financial year 1976-7 the council worked to an overall budget of $380 million.

        The council meets in public once a month, but most of its business is decided by the standing committee of the whole council and 13 select committees which meet on average once a month. In addition, there are 17 sub-committees, boards and panels. Select committees and sub-committees co-opt such officials and other people as are necessary, but each select committee is chaired by an urban councillor.

Foreign Relations

       The foreign relations of the Hong Kong Government are the responsibility of the British Government, but with external trade a considerable degree of latitude is permitted to Hong Kong. The territory's dependence on trade makes it necessary for the Hong Kong Government to operate offices in London, Washington, Geneva and Brussels to maintain and improve commercial relations with other countries.

Government Secretariat

       In August, the title of the post of Colonial Secretary was changed to Chief Secretary and the title of the Colonial Secretariat to the Government Secretariat. These changes were made primarily so as to make the titles more easily understandable to visitors to Hong Kong.

       The Chief Secretary is the Governor's principal adviser on policy, the chief execu- tive of the government, the head of the civil service and the chief government spokes- man. His office, the Government Secretariat, co-ordinates and supervises the work of all government departments.

       The Financial Secretary is responsible for financial and economic policy and for the overall supervision of departments primarily involved in this field.

       The Government Secretariat is organised into six policy and two resource branches, a branch dealing with the machinery of Government and a branch dealing with New Territories affairs. Each branch is headed by a Secretary. The policy branches are based on programme areas, as indicated by their titles: environment, economic services, home affairs and information, housing, security, and social services. The two resource branches (civil service and finance) deal with the government's personnel and finances.

        A Political Adviser, seconded from the Foreign Office, advises on the external political aspects of government policies.

226

London Office

CONSTITUTION AND ADMINISTRATION

The London Office, at 6 Grafton Street, W1, is a projection in Britain of the Hong Kong Government. It is part of the Government Secretariat and the Com- missioner there is directly responsible to the Chief Secretary. The Commissioner provides a point of direct contact in London between Hong Kong and various minis- tries and departments of the British Government, and other organisations with an interest in Hong Kong.

The London Office keeps under review British commercial, economic and indus- trial developments and official thinking on worldwide trade policies, and advises the Hong Kong Government of the likely repercussions of these developments on Hong Kong. It is concerned with the welfare of Hong Kong residents in Britain, maintains contact with them, and assists them over problems arising from their residence in Britain or relating to their families and interests in Hong Kong. It operates well- developed publicity services aimed at projecting Hong Kong's image to the British public and the Chinese community in Britain. It also has special sections to look after the interests of Hong Kong students, including nurses and government trainees resident in Britain.

The appointments division of the London Office is responsible for all government recruitment in Britain that was formerly handled by the Crown Agents. The division also recruits people of Hong Kong origin in the United Kingdom to the public service, and maintains close liaison with various official bodies in Britain concerned with recruiting expatriate staff.

The London Office has responsibility for a training course in Oxford, designed for young Chinese administrative officers on probation. Under a Director of Studies seconded from Hong Kong, they study management, economics and government for an academic year.

Government Departments

The administrative functions of the government are discharged by more than 40 departments, most of which are organised on a functional basis and have responsibil- ities covering all Hong Kong. This form of organisation, rather than one based on authorities with responsibilities in a limited geographical area, is suitable for this small, compact territory and has enabled the government to provide services without regard to the capacity of residents of various districts to pay taxes.

Home Affairs Department and New Territories Administration

The two government departments most closely concerned with the reactions of the community to government policies and plans are the Home Affairs Department and the New Territories Administration.

        The main function of the Home Affairs Department is to assess the overall impact of government policies on the population and to advise on the current trends of

CONSTITUTION AND ADMINISTRATION

227

public opinion. The department stands a little apart from the main executive govern- ment machinery and discharges its functions by maintaining close contact with all sectors of the population and liaison with private organisations such as the Tung Wah Group of Hospitals, Po Leung Kuk, kaifong organisations, district and clansmen associations, mutual aid committees, multi-storey building associations and religious organisations.

The department runs the city district office scheme which was introduced in 1968 to improve communication between government and people. There are 10 city district offices in the urban area-six in Kowloon and four on Hong Kong Island. These offices provide valuable service to the central government, the community and individual citizens. They co-ordinate government activities at the district level, sound out public opinion, foster community involvement, and aim to interpret for the man in the street the processes of a specialised and sophisticated administration.

In their community involvement efforts, the city district offices assist residents living in multi-storey buildings to form and service mutual aid committees. By the end of 1976 there were 2,214 such committees, as compared with 1,907 in 1975. These committees are generally successful in fostering a good neighbourly spirit among residents in high-rise buildings and improving the overall management of these buildings in aspects of security and cleanliness.

Most of the city district offices and their 12 sub-offices are located in readily accessible shop-type premises, making it easy for people to contact the government. At the enquiry service counters, information and guidance is given on the services provided and functions performed by government departments; rules and procedures are explained; and information and advice is given during emergencies such as tropical storms. During the year, the Home Affairs Department handled a total of two million enquiries of all kinds.

In the New Territories, the Secretary for the New Territories and his seven district officers exercise co-ordinating responsibilities, particularly in the development of the new towns. They also perform certain executive functions, principally in relation to land administration. The arrangements for consultation with the public are more formalised to the extent that there is a village representative system. More than 900 representatives are chosen from some 600 villages. Villages are grouped under 27 rural committees, each of which has an executive committee. With one exception, all the executive committees of the rural committees are selected by secret ballot every two years by village representatives. The rural committees execute minor works and carry out certain tasks on behalf of the government, receiving a small monthly subvention to cover part of their expenses. Within its own area the rural committee acts as spokesman for local public opinion, mediates in clan and family disputes, and generally provides a bridge between the government and the people.

The chairmen and vice-chairmen of the 27 rural committees, 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. The title may be trans- lated into English as 'rural consultative council'. Under the constitution established by the Heung Yee Kuk Ordinance, the Kuk has an executive committee which meets

228

CONSTITUTION AND ADMINISTRATION

monthly. It consists of the chairmen of rural committees, the unofficial New Terri- tories Justices of the Peace and 15 ordinary members elected every two years by the Full Council. The Full Council also elects the chairman and two vice-chairmen of the Kuk, through whom close contact is maintained with the Secretary for the New Territories.

Use of the Chinese Language

       The government's policy is to accord Chinese equal status with English in govern- ment communication with the public and to promote the widest possible use of Chinese in government departments. With the growth of public interest in government affairs and consequent increased correspondence between government departments and the public, and with the appointment of non-English speaking people to serve on advisory boards and committees, the demand for bilingual translation and inter- pretation has also increased.

       During the year the Chinese language division of the Home Affairs Department continued to provide high quality translation of a complex nature. Important assign- ments undertaken included the Governor's policy speech at the opening of the Legislative Council, the Financial Secretary's Budget speech, the Hong Kong Annual Report (Hong Kong 1977), the Report of the Commission on the Chinese University of Hong Kong, the Fourth Report of the Television Advisory Board, the Child Care Centres Ordinance and Regulations, and the Wild Animals Protection Ordinance.

With a view to promoting public interest in the study of the Chinese language and raising the standard of Chinese among the younger members of the community, the division sponsored a youth cultural and arts competition which included contests in translation, Chinese writing, speech making, calligraphy and painting.

Advisory Committees

       An important feature of the administration system in Hong Kong is the compre- hensive network of more than 100 advisory bodies on which government officers and members of the public sit together to formulate advice to the government on matters of major importance. Examples are such bodies as the Board of Education, Medical Development Advisory Committee, Social Welfare Advisory Committee, Labour Advisory Board, Trade and Industry Advisory Board, Transport Advisory Committee and the Action Committee Against Narcotics.

Grievances

        In Hong Kong there are several well-developed channels for the examination of complaints from members of the public and for helping people who have difficulty in their dealings with government departments. Probably the most commonly used channel is an appeal or complaint to the department concerned, which will ensure a review at a higher level. Another method is a letter to the Governor or the Chief Secretary, which will also ensure that the matter is reconsidered. Complaints and representations are also dealt with by the office run by unofficial members of the

CONSTITUTION AND ADMINISTRATION

229

Executive Council and Legislative Council-commonly referred to as the UMELCO office. City district officers and district officers in the New Territories also receive and investigate complaints. The absence of any statutory powers of investigation is offset by a lack of restriction on the type of complaint which UMELCO and the district and city district officers can receive and investigate. Both systems deal effec- tively with many grievances.

In addition, members of the Urban Council operate a ward system through which they receive complaints from members of the public and bring them to the attention of the appropriate government department or raise them formally in the Urban Council.

Civil Service

The civil service provides the staff for all government departments, sub-depart- ments and other units of the administration. As at April 1, 1976 the total number of posts in the civil service (or its establishment as it is generally called) was 114,139. The strength was 104,157 officers, of whom 101,581 were local officers and 2,576 were overseas officers.

This indicates that about one person in every 18 of the estimated adult working population in Hong Kong is employed by the government. There is a large proportion of labouring staff, and 38,829 of the total establishment of the civil service are labourers, semi-skilled labourers or artisans of one kind or another. The Hong Kong civil service is unusual in that it does some jobs which in other territories and administrations are done by people who do not belong to the civil service. In other territories, for example, staff for hospitals, public works and utilities, urban cleansing and public health, and the police, are not always servants of the central government. In Hong Kong, the establishment of the Medical and Health Department (15,595), the Public Works Department (15,319), the Urban Services Department (19,082) and the Royal Hong Kong Police Force (19,275) account for a total of 69,271 posts, or about 60 per cent of the total establishment of the service.

        The service has grown from 17,500 in 1949 to about 68,000 in 1966 and now to more than 104,000. This reflects not only the continuing expansion of existing services, in line with the continuing expansion of the population, but also the development of new and more diverse services to meet the changing needs of the population.

The cost of the civil service is reflected in the expenditure on personal emoluments. For the year 1976-7, the estimated expenditure on personal emoluments, excluding pensions, is about $1,970 million. This represents about 37 per cent of the estimated recurrent expenditure included in the Budget.

       The establishment of each post in the civil service requires the approval of the Finance Committee of the Legislative Council, assisted by the advice of its establish- ment sub-committee. The Finance Committee examines all requests for additional posts, both for new projects and to meet increasing workloads, to ensure that staff is properly utilised and that new posts are provided only when they are essential.

230

CONSTITUTION AND ADMINISTRATION

Recruitment and promotions in the civil service are, with a few exceptions, subject to the advice of the Public Services Commission, which was set up in 1950 and is independent of the government. The commission also advises the government on discipline cases. Sir Ronald Holmes is the full-time chairman of the commission, and leading citizens are appointed as members on a part-time voluntary basis.

Overall responsibility for recruitment, promotion, conditions of service, accom- modation, pay, training, discipline and structure of the civil service lies with the Civil Service Branch of the Government Secretariat.

APPENDICES

Appendices

1

Appendix

Units of Measurement

Page

234

2

Overseas Representation

235

3

Hong Kong's External Trade by Major Trading Partners

236

4

Hong Kong's External Trade by S I T C Commodity Section/

Division

237

5

Exchange Value of the Hong Kong Dollar

240

6

Expenditure on the Gross Domestic Product at Current Market

241

Prices

Expenditure on the Gross Domestic Product at Constant Market

Prices of 1966

241

7

Government Revenue by Source

242

7a

Government Revenue by Source (Chart)

243

8

Government Expenditure by Function

244

8a Government Expenditure by Function (Chart)

245

9

Comparative Statement of Recurrent and Capital Income and

Expenditure

246

10

Revenue from Duties

248

Licence Fees under the Dutiable Commodities Ordinance

248

Miscellaneous Fees (Commerce and Industry)

248

11

Money Supply

249

12

Banking: Liabilities and Assets

249

13

Number of Establishments and Employment in Manufacturing

Industry Analysed by Main Industrial Groups

250

14

Number of Establishments and Employment in Selected Manu-

facturing Industries

251

15

Reported Occupational Accidents

252

16

General Consumer Price Index

252

Modified Consumer Price Index

252

New Consumer Price Index (A)

253

New Consumer Price Index (B)

253

Hang Seng Consumer Price Index

253

17

Estimated Local Production of Crops, Livestock, Poultry and Fish

254

18

Local Production and Imports of Ores and Minerals

254

19

Imports of Crops, Livestock, Poultry and Fish

255

20

Categories of Schools

256

21

School Enrolment

Overseas Examinations

256

256

233

Appendix

Page

22 Hong Kong Students in Britain

257

Students Leaving Hong Kong for Overseas Studies

257

23

25

26

27

28

2 2 2 2 2 2

Expenditure on Education

257

24

Vital Statistics

258

Causes of Death

258

Hospital Beds

259

Professional Medical Personnel

259

Number of Quarters and Estimated Persons Accommodated as

260

at March 31, 1976

29

Land Office

261

Considerations in Instruments Registered in Land Office

261

30

Traffic Accidents

262

Traffic Casualties

262

31

Crime

262

32

Cases in the Supreme Court, District Court, Tenancy Tribunal,

265

Labour Tribunal and Lands Tribunal

Work in the Magistracies

265

355

33

Prisons

266

34

Electricity Consumption, 1976

266

Electricity Distribution

266

Gas Consumption and Distribution

266

Water Consumption

266

35

International Movements of Aircraft and Vessels

267

International Movements of Passengers

267

International Movements of Commercial Cargo by Different

267

Means of Transport

36

Registered Motor Vehicles

268

Public Transport: Passengers Carried by Undertaking

268

Public Transport: Passengers Carried by Area

268

Public Transport: Daily Average Number of Passengers Carried by

268

Different Modes of Transport

3333

37

Communications

269

38

Recreational Facilities Provided by the Urban Council and Urban

269

Services Department

39

Climatological Summary, 1976

270

Climatological Normals

270

40

The Executive Council

271

41

The Legislative Council

272

42

Urban Council

273

43

The Hong Kong Council of Social Service

274

The Community Chest of Hong Kong

275

234

Appendix I

Units of Measurement

        Metric, British Imperial and Chinese units are all in use in Hong Kong. The Metrication Ordinance was enacted on July 8, 1976. This ordinance provides for the replacement in enactments of non-metric units by metric units.

         The Chinese units in the table below are those which have statutory equivalents in Hong Kong. In China, the standard size of the chek (Chinese foot) increased through the three millennia from the Chou period, and in practice the size also varied according to locality and the trade in which the unit was used. In Hong Kong the variation with usage still persists but the tabulated values are based on the statutory equivalent for the chek of 14 inches.

         In the past, the values used in China for the units of mass have varied according to locality. The tabulated values are those in general use in Hong Kong and are in accord with the present statutory equivalent for the leung (tael) of 13 ounce.

Length

10 fan

10 tsün

Chinese Units

Metric equivalents

-

1 tsün (Chinese inch)

37.147 5 mm

1 chek (Chinese foot)

0.371 475 m

Mass

10 fan (candareen)

1 tsin (mace)

3.779 94 g

10 tsin

1 leung (tael)

37.799 4

16 leung

1 kan (catty)

0.604 790 kg

100 kan

1 tam (picul)

60.479 0 kg

         The conversion factors are printed in bold type when they are expressed exactly. Not more than six significant figures are used.

Countries

Australia

Britain

Canada

India

Malaysia

Mauritius

Nauru

New Zealand

Nigeria Singapore

Argentina

Austria

Belgium

Bolivia

Brazil

Burma

Colombia

Costa Rica

Cuba

Countries

:

Appendix 2

Overseas Representation

I. Commonwealth Countries

Represented by

Commissioner

Senior Trade Commissioner

Commissioner

Commissioner

Commissioner

II. Foreign Countries

Honorary Consul Honorary Consul Commissioner Commissioner Commissioner

Represented by

Consul-General

Consul-General

Consul-General

Honorary Consul

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

235

Denmark

Dominican Republic Ecuador

Egypt, Arab Republic of

El Salvador...

Finland

France

Germany

Greece

Guatemala

Indonesia

Iran

Irish Republic

Israel

Italy ...

Japan

Jordan

Korea

Lebanon

Liberia

Mexico

Monaco

Netherlands

Nicaragua

Norway

Pakistan

Panama

Peru

Philippines Portugal

Republic of South Africa

Spain Sweden Switzerland

Thailand

Turkey

United States of America

Uruguay Venezuela

Honorary Consul-General

Consul-General

Honorary Consul Consul-General

Honorary Consul

Honorary Consul-General Consul-General Consul-General

Honorary Consul-General

Honorary Consul

Consul-General

Consul-General

Honorary Consul

Honorary Consul-General

Consul-General

Consul-General

Honorary Consul

Consul-General

Honorary Consul

Honorary Consul Consul-General Honorary Consul Consul-General

Honorary Consul Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

Consul-General

236

Appendix 3

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by Major Trading Partners

Imports

1974

1975

1976

Source/Destination

Per

$ million

Per

Per

1975-6 Change

$ million

$ million

in

cent

cent

cent

per cent

Japan China

7,142

20.9

6,991

20.9

9,348

21.6

+33.7

5,991

17.6

6,805

20.3

7,761

17.9

+14.1

United States

4,621

13.5

3,961

11.8

5,309

12.3

+34.0

Taiwan

1,765

5.2

1,943

5.8

3,057

7.1

+57.4

Singapore

1,889

5.5

1,921

5.7

2,517

5.8

+31.0

Britain

1,942

5.7

1,715

5.1

1,833

4.2

+ 6.8

Republic of Korea (South Korea)

864

2.5

935

2.8

1,636

3.8

+74.9

Germany, Federal Republic

1,193

3.5

1,034

3.1

1,309

3.0

+26.6

Switzerland and Liechtenstein

1,121

3.3

943

2.8

1,140

2.6

+20.9

Australia

Others

760

2.2

742

2.2

929

2.2

+25.1

6,832

20.0

6,481

19.4

8,454

19.5

+30.4

Merchandise total

:

34,120

100.0

33,472

100.0

43,293

100.0

+29.3

Domestic Exports

United States

7,422

32.4

7,334

32.1

11,236

34.4

+53.2

Germany, Federal Republic

2,444

10.7

2,860

12.5

3,995

12.2

+39.7

Britain

2,768

12.1

2,778

12.2

3,286

10.1

+18.3

Japan

...

1,061

4.6

956

4.2

1,400

4.3

+-46.5

...

Canada

Australia

Singapore

Netherlands

Sweden

Switzerland and Liechtenstein

Others

Merchandise total

619

2.7

775

3.4

1,396

4.3

+80.1

1,298

5.7

1,034

4.5

1,368

4.2

+32.4

626

2.7

624

2.7

782

2.4

+25.4

504

2.2

496

2.2

756

2.3

+52.3

389

1.7

471

2.1

713

2.2

+51.6

357

1.9

410

1.8

663

2.0

+61.7

:

5,423

23.3

5,123

22.4

7,034

21.6

+37.3

:

:

22,911

100.0

22,859

100.0

32,629

100.0

+42.7

Re-exports

Japan

Singapore

United States

1,023

14.4

964

13.8

1,500

16.8

+55.6

862

12.1

928

13.3

938

10.5

+1.1

514

7.2

555

8.0

855

9.6

+54.2

Taiwan

692

9.7

600

8.6

815

9.1

+35.7

Indonesia

615

8.6

589

8.5

708

7.9

+20.1

Thailand

161

2.3

247

3.5

386

4.3

+56.3

Republic of Korea (South Korea)

278

3.9

286

4.1

385

4.3

+34.9

Macau

231

3.2

211

3.0

282

3.2

+33.8

Philippines

193

2.7

231

3.3

278

3.1

+20.8

Australia

173

2.4

173

2.5

252

2.8

+46.1

Others

2,384

33.5

2,190

31.4

2,528

28.3

+15.4

Merchandise total

7,124

100.0

6,973

100.0

8,928

100.0

+28.0

Appendix 4

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by SIT C Commodity

Section/Division

237

Imports

Section/Division

$ Million

1974

1975

1976

Food

Live animals

Meat and meat preparations

Fish and fish preparations

Cereals and cereal preparations

Fruit and vegetables

Others

Sub-total

Beverages and tobacco

Beverages

Others

Sub-total

Crude materials, inedible, excluding fuels

Wood, lumber and cork

Textile fibres and their waste

Crude animal and vegetable materials, n e s Others

Sub-total

Mineral fuels, lubricants and related materials

Petroleum and petroleum products

Others

Sub-total

Animal and vegetable oils and fats

Fixed vegetable oils and fats

Others

Sub-total

Chemicals

Dyeing, tanning and colouring materials

Medicinal and pharmaceutical products

1,118

1,149

1,201

618

675

837

628

662

880

1,326

1,087

1,010

1,198

1,267

1,387

1,225

1,273

1,371

6,111

6,113

6,687

283

318

368

257

265

365

540

583

733

T

=ནཱིཝིནྡ།ནཱ སྣྲོ།། ཀིཾཝཾ ཙཱི

123

190

1,523

1,976

616

818

239

343

2,500

3,328

2,048

2,589

77

92

2,126

2,680

210

212

3

4

213

217

477

708

412

514

Plastic materials, regenerated cellulose and artificial resins Others

983

702

1,011

1,002

905

1,187

Sub-total

2,892

2,496

3,419

Manufactured goods classified chiefly by material

Paper, paperboard and manufactures thereof

898

710

975

Textile yarn, fabrics, made-up articles and related products

4,576

4,792

6,632

Non-metallic mineral manufactures, nes...

2,248

2,186

2,673

Iron and steel

974

713

1,143

Others

1,478

1,427

1,944

Sub-total

10,174

9,828

13,367

Machinery and transport equipment

Machinery, other than electric

1,738

2,015

2,606

Electrical machinery, apparatus and appliances

3,316

2,885

4,341

Others ...

570

743

754

Sub-total

5,624

5,643

7,701

Miscellaneous manufactured articles

Clothing

532

518

710

Professional, scientific and controlling instruments; photographic and optical goods;

watches and clocks

1,946

1,828

2,353

Miscellaneous manufactured articles, n e s

1,148

1,168

1,537

Others

377

379

474

Sub-total

4,004

3,892

5,075

Commodities and transactions not classified according to kind

Total merchandise

Transactions in gold and current coin

Grand total

65 34,120

389

34,509

78

33,472

86

43,293

548

34,020

2,284

45,577

238

Appendix 4-Contd

(Chapter 2: Industry and Trade)

Domestic Exports

Food

Fish and fish preparations

Fruit and vegetables.

Miscellaneous food preparations

Others ...

Sub-total

Beverages and tobacco

Section/Division

Tobacco and tobacco manufactures Others

Sub-total

Crude materials, inedible, excluding fuels

Pulp and waste paper

Metalliferous ores and metal scrap

Crude animal and vegetable materials, n e s Others ...

Sub-total

Mineral fuels, lubricants and related materials

Animal and vegetable oils and fats

Chemicals

Dyeing, tanning and colouring materials

Medicinal and pharmaceutical products

:

:

:

:

:

:

Essential oils and perfume materials; toilet, polishing and cleansing preparations Others

*

Sub-total

Manufactured goods classified chiefly by material

Textile yarn, fabrics, made-up articles and related products Non-metallic mineral manufactures, n es...

Iron and steel...

Manufactures of metal, n es

Others

Sub-total

Machinery and transport equipment

Machinery, other than electric

Electrical machinery, apparatus and appliances

Others

Sub-total

Miscellaneous manufactured articles

Sanitary, plumbing, heating and lighting fixtures and fittings Travel goods, handbags and similar articles

:

:

:

$ Million

1974

1975

1976

140

183

39

84

45

59955

351

49

96

299

351

551

བྷསྐཋཝོ །✺།

4

52

**+

48

| |

47

41

74

45

ཝ།

80

38

62

241

117

142

38

34

55

38

27

38

397

215

296

2

4288

673

34

44

52

47

78

69

459

47

51

93

38

32

45

5135

201

192

235

2,737

2,145

3,051

161

174

207

88

17

19

641

605

844

153

139

188

3,781

3,079

4,308

317

3,296

487 2,787

543 4,196

62

58

52

3,674

3,332

4,791

302

251

336

437

455

690

Clothing

8,752

10,202

14,288

Footwear

311

256

341

Professional, scientific and controlling instruments; photographic and optical goods;

watches and clocks

789

893

1,570

Miscellaneous manufactured articles, ne s

3,699

3,357

4,870

Others

Sub-total

Commodities and transactions not classified according to kind

Total merchandise

Transactions in gold and current coin

Grand total

* Less than HK$0.5 million.

161

151

228

14,452

15,565

22,322

56

68

78

22,911

22,859

32,629

*

*

:

÷

:

22,911

22,859

32,629

Appendix 4-Contd

(Chapter 2: Industry and Trade)

Re-exports

Section/Division

Food

Fish and fish preparations

Cereals and cereal preparations

Fruit and vegetables

Coffee, tea, cocoa, spices and manufactures thereof

Others

Sub-total

Beverages and tobacco

Beverages

Others

Sub-total

Crude materials, inedible, excluding fuels

Wood, lumber and cork

Textile fibres and their waste

Crude animal and vegetable materials, n e s Others

Sub-total

:

Mineral fuels, lubricants and related materials

Petroleum and petroleum products

Others

Sub-total

::

:

239

$ Million

1974

1975

1976

104

145

223

69

23

29

160

188

232

104

77

350

75

125

95

513

559

928

23

31

22

21

30

31

78

88

54

52

108

46

34

34

107

421

360

54

589

95

279

538

49

60

628

538

910

98

89

3

யம்

118

4

102

93

121

29

15

18

:

:

:

::

:

::

Animal and vegetable oils and fats

Chemicals

Chemical elements and compounds

Dyeing, tanning and colouring materials

Medicinal and pharmaceutical products

:

Plastic materials, regenerated cellulose and artificial resins Others

Sub-total

Manufactured goods classified chiefly by material

Paper, paperboard and manufactures thereof

Textile yarn, fabrics, made-up articles and related products Non-metallic mineral manufactures, n e s... Manufactures of metal, n es

Others

164

143

151

204

252

339

280

258

356

123

86

78

156

163

245

927

902

1,169

72

62

69

930

790

958

1,162

1,132

1,351

98

101

123

252

173

174

Sub-total

:

2,514

2,259

2,677

Machinery and transport equipment

Machinery, other than electric

358

480

491

Electrical machinery, apparatus, and appliances

485

451

635

Others

107

104

84

Sub-total

950

1,035

1,210

Miscellaneous manufactured articles

Clothing

213

216

289

Professional, scientific and controlling instruments; photographic and optical goods;

watches and clocks

723

841

918

Miscellaneous manufactured articles, n e s

369

341

434

Others

Sub-total

Commodities and transactions not classified according to kind

Total merchandise

Transactions in gold and current coin

Grand total

66

88

112

:

1,370

1,485

1,752

37

35

34

:

7,124

6,973

8,928

:

:

:

241

1,623

240

7,365

8,596

9,168

240

Appendix 5

(Chapter 3: Financial Structure)

Exchange Value of the Hong Kong Dollar

Par value of the HK$

HK$1

£1=

US$1= SDRI=

in grammes

of fine gold, as reported

£

US$

SDR

HK$

HK$

HK$

to the IMF

December 18, 1946

IMF parity established ...

0.223834

0.0625 0.2519

16.00

3.97022

September 18, 1949

Hong Kong dollar devalued by 30.5%

pari passu with the pound sterling

November 20, 1967

Hong Kong dollar devalued by 14.3%

pari passu with the pound sterling

November 23, 1967

Hong Kong dollar revalued by 10% against the pound sterling reducing the previous change in the gold parity of the Hong Kong dollar from 14.3% to 5.7%

December 18, 1971

Following the currency realignment in

December, 1971, the Hong Kong dollar appreciated by 8.57% against the US dollar while the par value in terms of gold and the existing parity for sterling were maintained

July 6, 1972

Following the floating of the pound sterling in June 1972, the Hong Kong dollar was pegged to the US dollar

February 14, 1973

0.155517 0.0625 0.175

16.00

5.71429

0.133300

0.0625 0.15

16.00

6.66667

0.146631

0.06875 0.165

14.5455 6.06061

0.146631

0.06875 0.17914 0.165

14.5455 5.58213 6.06061

0.146631*

0.17699 0.163018

5.65

6.13429

Following the US dollar devaluation,

the US$/HK$ central rate adjusted

November 26, 1974

was

0.146631*

0.196657 0.163018

5.085

6.13429

Hong Kong dollar allowed to float, i e the Government no longer undertook to maintain the rate against the US dollar within 24% either side of the central rate of US$1 - HK$5,085

0.146631*

* While effective exchange rates for the Hong Kong dollar have changed since 1971, the formal par value in terms of

gold, as recorded by the IMF, remains unaltered.

Appendix 6

(Chapter 3: Financial Structure)

Expenditure on the Gross Domestic Product

at Current Market Prices

GDP Component

Private consumption expenditure

241

$ Million

1973

1974

1975*

22,844

26,520

28,485

1,952

2,493

2,714

6,637

7,683

7,976

+113

+352

+138

-810

-1,796

-1,884

30,736

35,252

37,429

2,114

1,749

2,096

:.

:..

:

:

:

:

Government consumption expenditure

Gross domestic fixed capital formation

Changes in stocks

Exports less imports of goods and services

Gross domestic product at current market prices

Less indirect taxes less subsidies

Gross domestic product at current factor cost

28,622

33,503

35,333

Expenditure on the Gross Domestic Product at Constant Market Prices of 1966

Private consumption expenditure

Government consumption expenditure

:

Gross domestic fixed capital formation

Changes in stocks

Exports less imports of goods and services

:

:

Gross domestic product at constant market prices ..

* Provisional estimate.

16,346

16,475

17,049

1,254

1,385

1,453

4,195

4,175

4,157

+79

+145

+130

-2,645

-2,523

-2,475

:

19,229

19,657

20,314

242

Appendix 7

(Chapter 3: Financial Structure)

Government Revenue by Source

(See also Appendix 7a)

Actual 1974-5

Actual 1975-6

$ Million

Estimate

1976-7

Item

Recur-

rent

Capital Total

Recur- rent

Recur-

Capital Total

Capital Total

rent

Direct taxes

Earnings and profits tax

2,143.8

Estate duty

2,143.8 42.4 42.4

2,234.0

2,234.0

2,428.0

2,428.0

64.6 64.6

62.0 62.0

Sub-total

2,143.8

42.4 2,186.2

2,234.0

64.6 2,298.6

2,428.0

62.0 2,490.0

Indirect taxes

General rates...

407.9

407.9

534.4

534.4

615.0

615.0

Excise duties

473.2

473.2

558.3

558.3

647.9

647.9

Royalties and concessions

82.1

82.1

101.6

101.6

106.5

0.2

106.7

Stamp duties

303.0

303.0

382.6

382.6

420,0

420.0

Other taxes (note 2) ...

137.8

137.8

237.7

237.7

265.0

265,0

Sub-total

1,404.0

1,404.0

1,814.6

1,814.6

2,054.4

0.2 2,054.6

Other revenue

Fines, forfeitures and penalties

45.6

45.6

54.7

54.7

53.2

Licences

168.6

168.6

219.5

219.5

235.1

53.2 235.1

Provision of goods and services

713.9

713.9

924,9

924.9

1,042.5

1,042.5

Income from properties and investments

524.1

287.4 811.5

466.7

345.9 812.6

426.8

423.2 850.0

Sub-total

1,452.2

287.4 1,739.6

1,665.8

345.9 2,011.7

1,757.6 423.2 2,180.8

Reimbursements, contributions and loan

repayments

Reimbursements (note 3)

407.9

93.9 501.8

96.8

96.8

95.7

95.7

Contributions (note 3)

30.0

Loan repayments

11.7 41.7

2.0

32,2

32.2

33.3

33.3

2.0

1.7

1.7

2.1

2.1

Sub-total

Grants and loans

Grants

Loans

437.9

107.6 545.5

129.0

1.7

130.7

129.0

2.1 131.1

1.4

1.4

262.5 262.5

Sub-total

263.9 263.9

Total

5,437,9

...

437.4 5,875.3 5,843.4

676.1 6,519.5

6,369.0

487.5 6,856.5

Development loan fund receipts

Land sale premia, Kwun Tong reclamation

Loan repayments

Interest on investments and loans...

38.5

Transfer from Revenue Reward Fund

Transfer from General Account

1.9 1.9 17.0 17.0 38.5 10.0 10.0 20.0 20.0

0.5

0.5

0.1 0.1

17.4

17.4

17.9

17.9

50.0

50.0

58.5

58.5

3.3

3.3

0.1

0.1

125.0

125.0

Realisation of investments ..

0.4

0.4

-

Sub-total

38.5

48.9

87.4

50.0

146.6

196.6

58.5

18.1

76.6

Lotteries fund receipts

Net proceeds from Government lotteries...

6.7

6.7

5.8

5.8

2.0

2.0

Loan repayments

0.4

0.4

0.6

0.6

0.8

0,8

Interest

2.4

2.4

1.5

1.5

1.0

1.0

Other

0.9

0.9

0.6

0.6

0.3

0.3

Sub-total

10.0 0.4 10.4

7.9

0.6

8.5

3.3 0.8 4.1

Grand total

5,486.4 486.7 5,973.1 5,901.3 823.3 6,724.6

6,430.8

506.4 6,937.2

Note: 1.

2.

3.

Government revenue excludes a portion transferred to the Housing Authority and the Urban Council. Other taxes comprises taxes on bets and sweeps, entertainment, hotel accommodation and motor vehicles. Following the introduction of a 'below-the-line' account, no contributions were paid into General Revenue from 1975-6.

HK$ million

Appendix 7a

Government Revenue by Source

8,000

7,000

6,000

Actual

5,000

4,000

$2,186 million 37%

$2,299 million 34%

Estimate

Actual

$2,490 million

36%

3,000

$1,815 million

$1,404 million

27%

23%

$2,055 million 30%

2,000

1,000

$2,383 million

40%

1974-5

$2,611 million 39%

$2,392 million 34%

1975-6

1976-7

Direct

taxes

Indirect

taxes

Other

revenue

243

244

Appendix 8

(Chapter 3: Financial Structure)

Government Expenditure by Function

(See also Appendix 8a)

$ Million

Actual 1974-5

Actual

Estimate

1975-6

1976-7

Item

Recur- rent

Capital Total

Recur-

Recur-

Capital

Total

Capital Total

rent

rent

General services

Administration

105.1 14.5 119.6

Law and order

547.7 53.7

601.4

109.5 596.8 40.2

10.8

120.3

123.1 10.7 133.8

637.0

Defence

77.1

41.4

118.5

68.4

48.3 116.7

Public relations

24.5

1.1

25.6

23.3

0.8

24.1

Revenue collection and financial control

82.7

1.9

84.6

88.1

0.4

88.5

671.3 91.6 762.9 207.2 63.6 270.8 26.8 0.3 27.1 100.6 1.0 101.6

Sub-total

837.1

112.6 949.7

886.1 100.5

986.6

1,129.0

167.2 1,296.2

Economic services

Primary products

31.8

7.5

39.3

31.1

3.5

34.6

35.7

15.4 51.1

Airport and harbour

56.9

56.7

113.6

56.8

62.5

119.3

63.8

121.0 184.8

Commerce and industry

18.8

0.2

19.0

21.2

0.5

21.7

25.5

0.1 25.6

Communications

149.8

91.5

241.3

189.1

58.3 247.4

208.6

52.6 261.2

Other ...

106.3 13.8 120.1

107.4

22.1

129.5

119.1 18.3 137.4

Sub-total

363.6 169.7 533.3

405.6

146.9

552.5

452.7

207.4 660.1

...

Community services

Transport, roads and civil engineering

(note 2)

Water...

Fire Services

Amenities and related services

Sub-total

Social services

191.2 525.2 145.5 483.9 629.4

78.1 236.7

716.4

192.4

447.4 639.8

196.0

831.9 1,027.9

173.2

312.6 485.8

218.2

279.3

497.5

8.4 86.5

80.2

38.3 275,0

48.7

9.8 8.9 57.6

90.0

86.3

14.5 100.8

651.5 1,055.8 1,707.3

494.5

778.7 1,273.2

61.7 33.7 95.4

562.2 1,159.4 1,721.6

Education

1,031.8

113.0 1,144.8

1,121.0

147.1 1,268.1

1,259.6

116.4 1,376.0

Medical and health

513.0

47.4

560.4

550.3

11.6

561.9

606.7 24.0 630.7

Housing

222.3

224.6 446.9

101.6

337.3

438.9

111.6 174.2 285.8

Social welfare (note 3)

258.1

4.5 262.6

348.4

3.5

351.9

415.2

6.9 422.1

Labour

15.8

15.8

16.7

16.7

18.7

18.7

Sub-total

2,041.0

389.5 2,430.5

2,138.0

499.5 2,637.5

2,411.8

321.5 2,733.3

Common supporting services

Government launches and dockyard

17.1

3.2 20.3

16.8

3.6 20.4

24.8

Government printing

22.1

1.4 23.5

Government supplies

58.8

3.2 62.0

22.0 0.4 22.4 -3.4 1.8 -1.6

22.3

19.1

8888

0.6

6.3 31.1 22.9

0.8 19.9

Architectural and electrical and mechanical

engineering offices

173.1

Sub-total

271.1

38.8 211.9

46.6 317.7

179.0

214.4

25.2 204.2

31.0 245.4

191.8 39.5 231.3

258.0 47.2

305.2

Unallocable expenditure

Government quarters

27.1

Passages, telephones, telegrams, etc

113.3

Sub-total

140.4

22.6 49.7 1.5 114,8

24.1 164.5

28.0 23.7 51.7 116.1

144.1

31.7

16.3

48.0

0.3 116.4

222.0

0.3 222.3

24.0 168.1

253.7

16.6 270.3

Other financial obligations

Public debt

1.6

Pensions and gratuities

150.6

1.6 150.6

...

Sub-total

Total

Development loan fund expenditure

Economic services

Social services

152.2

152.2

4,456.9 1,798.3 6,255.2

1.6

3.1 165.8

165.8

167.4 1.5 168.9

4,450.1 1,582.1 6,032.2

1.5

20.2

3.7 23.9

201.3

201.3

221.5

5,288.9 1,923.0 7,211.9

3.7 225.2

1.2

1.2

95.0

95.0

1.0 1.0 39.8 39.8

39.9 39.9

119.8 119.8

Sub-total

Community services.

Lotteries fund expenditure

Social welfare grants and loans

Grand total

Note: 1.

1.5

1.5

97.7

97.7

40.8

40.8

159.7 159.7

12.9

4,456.9 1,908.9 6,665.8

3.3 3.3

5,288.9 2,086.0 7,374.9

Government expenditure excludes a portion transferred to the Housing Authority and the Urban Council.

2. Excluding civil engineering works directly allocable to other services.

12.9

7.3

7.3

4,450.1 1,630.2 6,080.3

3.

Including expenditure on disability and infirmity allowance.

HK$ million

8,000

Appendix 8a

Government Expenditure by Function

7,000

6,000

5,000

$2,431 million

4,000

38%

Actual

Actual

$2,733 million 37%

Estimate

Social services

245

$2,637 million 44%

Community

services

$1,722 million

3,000

23%

$1,707

$1,273

million

million

27%

21%

General services

2,000

$1,296

million

$950

$987

18%

million

million

15%

$660

16%

$533

million

Economic services

1,000

million

$553

9%

8%

million

9%

$745

$630

$964

Other expenditure

0

million 12%

million

million

10%

13%

1974-5

1975-6

1976-7

246

Appendix 9

(Chapter 3: Financial

Structure)

Comparative Statement of Recurrent and Capital Income and Expenditure

247

$ Million

Actual

Actual

Estimate

Actual

Actual

Estimate

1974-5

1975-6

1976-7

1974-5

1975-6

1976-7

Recurrent Account

Direct taxes

Earnings and profits tax

Indirect taxes

Duties

General rates

Internal revenue (note 2)

Motor vehicles taxes

Franchises

Airport concessions

Other revenue

Fines, forfeitures and penalties

Licences (note 3)

Fees and receipts

Revenue from properties and investments

Reimbursements

Water

Postal services

Airport and air services

Kowloon-Canton Railway

Deficit

Recurrent Account

Personal emoluments

1,956.2

1,781.5

1,969.6

:

:.

:

:

:

2,143.8

2,234.0

2,428.0

Departmental recurrent expenditure

739.3

781.2

937.2

Public Works Recurrent

263.5

277.4

334.9

...

473.2

558.3

647.9

Subventions...

880.5

949.5

1,067.9

407.9

534.4

615.0

409.0

571.5

636.0

University and Polytechnic Grants Committee

187.4

216.8

244.2

31.8

48.8

49.0

Defence

59.6

51.4

189.4

39.7

50.9

57.3

Pensions

150.6

165.8

201.3

42.4

50.7

49.2

Miscellaneous

219.8

226.5

344.4

:

45.6

54.7

53.2

Transfer to Capital Account

1,360.9

906.0

1,435.5

167.9

218.7

233.3

Surplus

487.3

:

249.4

339.0

386.7

484.7

411.5

377.9

439.2

130.7

131.1

168.1

187.3

232.2

183.7

250.5

248.2

125.8

167.8

183.7

25.7

34.6

40.3

379.9

355.4

5,817.8

5,843.4

6,724.4

5,817.8

5,843.4

6,724.4

Capital Account

Direct taxes

Estate duty

Indirect taxes

Taxi concessions ...

Other revenue

Land sales

Contributions towards projects

Loan repayments

Mass Transit Railway Provisional Authority Grants and loans

Capital Account

Public Works Programme (other than New Towns and

F:

42.4

64.6

62.0

Housing)

:

:

:

:

Buildings

405.5

116.4

226.7

Engineering

523.1

308.8

457.6

0.2

:

Waterworks

483.1

295.6

230.1

Public Works Non-recurrent: Headquarters

106.4

38.2

93.4

287.4

345.9

423.2

11.7

Public Works Programme (New Towns and Housing)

387.8

593.8

2.0

1.7

2.1

93.9

Transfer to Development Loan Fund for Housing Authority... Other capital expenditure

20.0

125.0

263.9

Subventions

68.0

44.3

52.8

Deficit on Capital Account met by transfer from Revenue

Account

University and Polytechnic Grants Committee

37.0

92.6

47.2

1,360.9

906.0

1,435.5

Departmental special expenditure

79.3

69.3

120.3

Defence Cost Agreement: Capital works

37.9

44.4

25.8

Miscellaneous (including public debt) ...

38.0

59.7

75.3

1,798.3

1,582.1

1,923.0

1,798.3

1,582.1

1,923.0

Note: 1.

2.

3.

Government revenue and expenditure exclude those transferred to the Housing Authority and the Urban Internal revenue comprising taxes on bets and sweeps, entertainment, hotel accommodation and stamp duties, Licences including business registration fees.

Council.

248

Appendix 10

(Chapter 3: Financial Structure)

Revenue from Duties*

Item

Import duty on

Hydrocarbon oils

Intoxicating liquor

:

:

Liquor other than intoxicating liquor

Tobacco

Duty on

Locally manufactured liquor

Total

:

:

:

Actual

Actual

Estimate

1974-5

1975-6

1976-7

$

$

$

134,899,519

141,683,897

187,000,000

131,271,581

168,275,456

175,000,000

2,725,693

3,241,010

2,900,000

184,272,317

217,865,907

250,000,000

19,976,951

27,229,599 33,000,000

473,146,061

558,295,869

647,900,000

* These figures represent net revenue collected, i e after deducting refunds and drawbacks of duty.

Licence Fees under the Dutiable Commodities Ordinance

Hydrocarbon oils

Liquor

Tobacco

***

Miscellaneous

Total

:

:

:

:

:

:

:

:

:

:

:

:

:

220,000

202,912

4,432,074

200,933

4,641,395

4,800,000

810,962

833,242

950,000

3,190

4,662

4,500

5,449,138

5,680,232

5,974,500

Miscellaneous Fees (Commerce and Industry)

Denaturing

Bonded warehouse supervision

Total

:

:

247,031

214,514

200,000

1,408,579

1,617,817

1,639,000

1,655,610

1,832,331

1,839,000

Appendix II

(Chapter 3: Financial Structure)

Money Supply

249

$ Million

As at end of year

1974

1975

1976

Legal tender coins and notes in circulation

Commercial bank issues (A)

The Hongkong and Shanghai Banking Corporation...

3,009.00

3,316.00

3,942.00

The Chartered Bank

535.54

723.76

785.03

Mercantile Bank

29.32

28.64

29.47

One-thousand-dollar gold coins

Government issues (B)

Five-dollar coins ...

Two-dollar coins

One-dollar coins

Subsidiary coins

One-cent notes

Demand deposits with licensed banks (C) Time deposits with licensed banks (D) Savings deposits with licensed banks (E)...

Licensed banks' holdings of legal tender (F)

Money supply:

Definition 1 (A+B+C−F)

Definition 2 (A+B+C+D+E-F)

19.97

35.46

45.00

30.50

46.50

173.92

170.89

161.37

118.37

136.54

131.48

0.67

0.71

0.76

8,161.35

9,911.00

11,643.00

14,200.27

13,629.00

16,447.00

8,636.59

12,803.00

15,940.00

:

658.10

775.00

794.00

11,370.07 34,206.93

13,563.01

16,026.07

39,995.01

48,413.07

Appendix 12

(Chapter 3: Financial Structure)

Banking: Liabilities and Assets

Number of licensed banks

:

$ Million

As at end of year

1974

1975

1976

74

74

74

::

::

:

::

::

Liabilities

Deposits:

Demand Time

Savings

Amount due to banks abroad

Other liabilities

Total liabilities

Assets

Cash (legal tender notes and coins)

Amount due from banks abroad:

Demand and short term claims Time deposits

Loans and advances:

Hong Kong

Abroad

Investments:

Hong Kong

Abroad

Other assets:

Hong Kong Abroad

Total assets

:

8,161

9,911

11,643

14,200

13,629

16,447

8,637

12,803

15,940

15,460

21,243

27,598

6,803

8,011

8,170

53,261

65,597

79,798

658

775

794

14,726

19,044

22,448

1,835

2,001

3,301

23,594

24,998

29,480

5,955

10,077

13,255

2,363

2,891

3,251

48

50

74

2,719

3,525

3,666

1,363

2,236

3,529

53,261

65,597

79,798

250

Appendix 13

(Chapter 4: Employment)

Number of Establishments and Employment in Manufacturing Industry Analysed by Main Industrial Groups

Industry

Establishments

Persons engaged

Dec 1974 Dec 1975 Dec 1976 Dec 1974 Dec 1975 Dec 1976

Food products

1,139

1,114

1,190

14,225

14,347

15,209

Beverages

28

27

27

2,891

2,682

2,958

Tobacco

4

3

4

817

795

784

Textiles

3,405

3,411

3,902

98,222

112,922 115,912

Wearing apparel, except footwear

6,848

7,073

8,622

188,458

238,958 265,913

Leather and leather products, except footwear and

wearing apparel

165

168

138

2,076

2,462

2,359

Footwear except rubber, plastic and wooden footwear

487

450

468

4,218

4,335

4,976

Wood and cork products, except furniture

1,217

1,159

1,223

6,998

7,595

7,691

Furniture and fixtures, except primarily of metal

1,217

1,178

1,236

7,436

7,534

8,494

Paper and paper products

940

915

1,009

7,236

7,442

9,002

Printing, publishing and allied industries

1,542

1,578

1,881

19,297

19,812

22,353

Chemicals and chemical products

459

420

439

5,731

5,197

5,534

Products of petroleum and coal

1

3

3

8

15

18

Rubber products

358

336

359

6,897

6,101

6,312

Plastic products

:.

3,809

3,437

3,844

59,074

63,706

76,994

Non-metallic mineral products, except products of

petroleum and coal

304

274

303

3,243

3,347

3,947

Basic metal industries

245

251

302

***

3,098

3,106

3,807

Fabricated metal products, except machinery and

equipment

4,799

4,974

6,113

52,446

57,322

69,781

Machinery except electrical

1,330

1,228

1,354

10,900

11,926

11,971

Electrical machinery, apparatus, appliances and sup-

plies

856

891

1,228

64,669

66,353 88,057

Transport equipment

239

217

248

14,064

11,133 11,810

Professional and scientific, measuring and controlling equipment, and photographic and optical goods...

282

318

442

11,221

13,177 18,449

Other manufacturing industries

1,644

1,609

1,968 16,903 18,590 21,415

Total

31,318

...

31,034

36,303 600,128 678,857 773,746

Note: Figures refer to manufacturing establishments registered with or recorded by the Labour Department as well as other manufacturing establishments. As from December 1974, the coverage of the survey of manufacturing employment was enlarged by incorporating establishments recorded by the Business Registration Office.

Appendix 14

(Chapter 4: Employment)

Number of Establishments and Employment in Selected Manufacturing Industries

251

Establishments

Industry

Persons engaged

Dec 1974 Dec 1975 Dec 1976 Dec 1974 Dec 1975 Dec 1976

Textiles

Bleaching, dyeing and finishing

439

520

640

14,620

16,123

17,720

Cotton knitting

215

258

329

4,933

6,225

7,086

Cotton spinning

37

39

40

19,160

21,040

20,464

Cotton weaving

309

340

418

25,830

29,967

32,769

Made-up textile goods except wearing apparel

370

360

408

4,208

4,722

4,743

Wool spinning

16

11

17

...

1,893

1,522

1,478

Woollen knitting

1,165

1,049

1,098

14,757

18,388

16,789

Wearing apparel, except footwear

Garments

5,132

5,370

6,596

147,159

189,661

211,098

Gloves ...

318

291

354

10,483

10,029

12,256

Footwear except rubber, plastic and wooden footwear

Shoes

447

415

422

3,800

3,840

4,246

Furniture and fixtures, except primarily of metal

Wooden furniture

890

878

920

5,453

5,837

6,450

Paper and paper products

Paper boxes

Printing, publishing and allied industries

Job printing

Newspaper printing

649

646

708

5,418

5,632

6,956

Rubber products

Rubber footwear

::

:

::

1,202

1,212

1,399

13,214

13,441

14,661

31

24

34

3,080

3,036

3,583

179

167

168

5,622

4,783

4,799

Plastic products

Plastic flowers and foliage

517

390

406

5,747

5,656

6,885

Plastic toys

1,361

1,214

1,364

31,968

33,591

41,119

Plastic products (miscellaneous)

1,910

1,797

2,014

21,182

24,098

28,525

Fabricated metal products, except machinery and

equipment

Aluminium ware

81

82

84

2,387

2,755

2,706

Electroplating ....

352

364

484

2,776

3,219

4,352

Metal toys

91

93

117

1,902

2,337

3,853

Padlocks and bolts

117

108

124

2,086

2,037

2,067

Pressure stoves and lanterns

34

32

29

1,594

1,625

1,581

Tools and dies

457

565

816

2,340

3,151

4,320

Torch cases

45

37

39

2,026

1,826

3,745

Wrist watch bands

231

234

285

7,012

6,390

6,443

Electrical machinery, apparatus, appliances and sup-

plies

Dry batteries

9

10

14

1,705

2,208

2,283

Electric bulbs

105

88

89

4,514

3,839

2,203

Electronics

414

460

672

50,179

51,570

70,998

Transport equipment

Aircraft repairing

3

Ship building and repairing

59

57

35

82

20

2,481

2,598

2,876

8,758

7,005

7,062

Professional and scientific, measuring and controlling

equipment, and photographic and optical goods

Cameras

18

17

20

2,707

2,863

4,388

Watches and clocks ...

197

237

345

7,630 9,393

12,880

Other manufacturing industries

Jewellery and related articles

Wigs

490

93

500

5999

609

5,065

6,052

7,328

45

1,518

1,398

938

Note: Figures refer to manufacturing establishments registered with or recorded by the Labour Department as well as other manufacturing establishments. As from December 1974, the coverage of the survey of manufacturing employment was enlarged by incorporating establishments recorded by the Business Registration Office.

252

Appendix 15

(Chapter 4: Employment)

Reported Occupational Accidents

1974

1975

1976

Cause

Fatal

Non-

fatal

Total Fatal

Non-

Non-

Total Fatal

Total

fatal

fatal

Machinery: power driven

6,322

6,330

7,408

7,417

12

9,574

9,586

Machinery: other

Transport

Explosions or fires

Hot or corrosive substances..

Gassing, poisoning and other

toxic substances

Electricity

Falls of persons

Stepping on or striking

against objects

Falling objects

Falls of grounds

GWA SAW 1881.

431

431

446

446

699

699

1,083

1,132

42

1,201

1,243

45

1,682

1,727

303

316

8

297

305

28

298

326

1,464

1,464

1,601

1,601

2,020

2,020

10

13

51

51

35

42

4

116

120

4

89

93

3

97

100

62

3,639

3,701

55

3,915

3,970

42

4,499

4,541

4

4,584

4,588

7

6,619

6,626

8,428

8,429

2,283

2,296

9

2,040

2,049

14

2,277

2,291

5

8

13

9

11

6

6

Handling without machinery

1

4,511

4,512

4,021

4,022

3

5,289

5,292

Hand tools

3,067

3,068

3,449

3,449

4,014

4,014

Miscellaneous

71

2,959

3,030

75

3,047

3,122

82

2,543

2,625

Causes not yet ascertained

12

3,347 3,359

Total

234

30,780 31,014

212

34,193 34,405

249

44,808

45,057

Note: Figures for 1976 are subject to amendments.

Appendix 16

(Chapter 4: Employment)

General Consumer Price Index

(September 1963-August 1964-100)

Item

Weight

Monthly average

Index for December

1974

1975

1976

1974

1975

1976

All items Foodstuffs

100.0

187.6

189.8

195.6

187

189

194

48.3

232.3

227.4

231.8

227

221

225

Housing

15.2

134.0

145.8

151.4

138

149

154

Fuel and light

3.0

159.8

166.8

172.2

165

172

172

Alcoholic drinks and tobacco

3.3

133.8

154,3

166.5

140

165

169

Clothing and footwear

6.2

130.1

127.5

127.1

130

129

129

Durable goods

2.1

171.3

170.9

170.8

173

169

173

Miscellaneous goods

4.2

171.1

178.3

182.4

177

178

187

Transport and vehicles

3.2

140.7

148.0

161.0

146

156

163

Services

14.5

154.7

165.0

177.3

160

170

182

...

Note: The weights are derived from households with monthly expenditure between $100 to $1,999 in 1963-4.

Modified Consumer Price Index

(September 1963-August 1964-100)

Item

Weight

Monthly average

Index for December

1974

1975

1976

1974

1975

1976

All items Foodstuffs

100.0

195.3

196.5

202.0

194

195

199

55.6

235.8

230.4

234.6

231

223

227

Housing

12.9

133.6

145.3

151,2

137

149

154

Fuel and light

3.0

164.6

171.4

178.3

170

178

178

Alcoholic drinks and tobacco

4.2

133.0

154.5

167.1

139

166

170

Clothing and footwear

4.9

131.7

129.3

129.1

132

131

131

Durable goods

1.5

182.2

180.6

180.7

184

178

184

Miscellaneous goods

4.1

169.3

176.3

181.5

175

177

186

Transport and vehicles

2.8

140.7

145.4

160.3

144

155

162

Services

11.0

148.6

160.2

170.5

156

165

175

Note: The weights are derived from households with monthly expenditure between $100 to $599 in 1963-4,

Appendix 16-Contd

(Chapter 4: Employment)

New Consumer Price Index (A)

(July 1973-June 1974-100)

253

Monthly average

Index for December

Item

Weight

1974*

1975

1976

1974

1975

1976

All items

Foodstuffs

100.00

107.0

107.5

111.2

106

108

112

56.60

105.8

103.2

106.3

103

102

106

Housing

14.08

105.5

110.7

115.8

108

113

121

Fuel and light

3.39

126.8

129.3

132.6

128

134

132

Alcoholic drinks and tobacco

2.65

108.7

120.5

129.1

110

128

131

Clothing and footwear

3.82

101.3

98.0

97.9

101

98

101

Durable goods

1.41

106.0

105.8

106.4

106

105

107

Miscellaneous goods

4.58

113.5

115.3

119.8

114

117

123

Transport and vehicles

4.36

106.3

107.6

111.9

107

109

113

Services

9.11

108.2

116.8

123.3

111

120

126

Note: The weights are derived from households with monthly expenditure between $400 and $1,499 in 1973-4. * Monthly average of July-December.

New Consumer Price Index (B)

(July 1973-June 1974-100)

Item

Weight

Monthly average

Index for December

1974*

1975

1976

1974

1975

1976

All items Foodstuffs

100.00

107.0

107.5

111.8

107

108

113

47.82

106.0

103.6

107.0

104

103

107

Housing

16.79

105.7

110.2

115.0

108

112

119

Fuel and light

2.71

125.8

128.6

131.5

127

133

131

Alcoholic drinks and tobacco

2.04

108.0

117.7

125.7

109

124

128

Clothing and footwear

5.92

101.0

97.7

97.6

101

98

100

Durable goods

2.97

105.8

104.3

104.6

106

104

105

Miscellaneous goods

5.17

112.3

113.9

117.2

113

115

120

Transport and vehicles

5.11

109.5

111.7

116.3

111

113

118

Services

11.47

107.8

115.1

122.4

111

119

125

Note: The weights are derived from households with monthly expenditure between $1,500 and $2,999 in 1973-4. * Monthly average of July-December.

Hang Seng Consumer Price Index

(July 1973-June 1974-100)

Item

Weight

Monthly average

Index for December

1974*

1975

1976

1974

1975

1976

All items Foodstuffs

100.00

104.3

105.3

109.7

104

107

111

26.27

104.0

102,4

106.6

102

103

107

Housing

28.14

101.0

103.2

105.0

101

104

106

Fuel and light

2.53

126.7

128.3

128.5

127

130

128

Alcoholic drinks and tobacco

0.73

107.3

113.9

121.8

108

119

124

Clothing and footwear

6.11

95.8

95.4

98.2

96

99

99

Durable goods

3.88

102.5

102.1

101.4

102

101

102

Miscellaneous goods

4.36

110.2

110.8

113.5

110

111

116

Transport and vehicles

7.47

113.7

117.7

124.2

115

119

126

Services

20.51

104.0

106.3

116.2

104

109

119

Note: The weights are derived from households with monthly expenditure between $3,000 and $9,999 in 1973-4.

* Monthly average of July-December.

254

Appendix 17

(Chapter 5: Primary Production)

Estimated Local Production of Crops, Livestock,

Poultry and Fish

Crops

Rice (unhusked)

Item

Other field crops

Vegetables (fresh, frozen or simply preserved)

Fresh fruits and nuts

Flowers

...

...

Livestock and poultry

Cattle

Sheep, lambs and goats

Pigs*

Chicken

Other poultry

Dairy products and eggs

Milk (fresh)

Eggs (fresh)

Fish and fish preparations

Fish (Fresh, chilled or frozen)

Marine water fisht

Fresh water fish

Fish (dried, salted or smoked)

:

Unit

1974

1975

1976

tonne

3 100

3 500

3 400

tonne

8 000

7 700

7.500

tonne

178 000

180 000

186 000

tonne

3.400

2 100

2 600

$ thousand

27 780

21 559

31 753

head

1900

1 500

2 200

head

30

1

thousand head

349

307

367

tonne

14 500

13 800

16 200

tonne

5 100+

5 400+

6 000

tonne

5 300

4 600

4 800

thousand gross

779

1 048

974

tonne

109 400+

111 800+

113 400

tonne

3 400

4 500

5 200

Marine water fish

tonne

5 500

4 400

4 100

***

Crustaceans and molluscs (fresh, frozen, dried, salted, etc)

tonne

18 400

22 300

26 000

Fish products and preparations

tonne

1 100

2 900

1 800

Crustacean and mollusc products and preparations

***

tonne

380

300

230

Meals (animal feeding-stuffs)

tonne

3.700

4 600

6 200

Note: Other field crops include yam, millet, peanut, soybean, sugar cane, sweet potato and water chestnut. * Excluding local pigs not slaughtered in abattoirs.

† Including marine culture fish.

Revised figures.

Appendix 18

(Chapter 5: Primary Production)

Local Production and Imports of Ores and Minerals

Item

Iron ore

Quartz

Feldspar

Graphite

Clay and kaolin ...

:

:

Tonnes

1974

Production

1975

Imports

1976

1974

1975

1976

159 737

167 200

37 058

351

5 566

761

2 059

982

2 474

1 387

2 090

2 299

1 127

1911

2 312

2 359

2 891

2 171

3 320

1 490

1 305

12 175

13 121

17 682

Crops

Appendix 19

(Chapter 5: Primary Production)

Imports of Crops, Livestock, Poultry and Fish

Item

Rice (unhusked)

Wheat

Other cereals and cereal preparations

255

Unit

1974

1975

1976

tonne

314 711

343 782

361 916

tonne

130 520

103 872

132 260

tonne

256 292

258 215

322 642

tonne

42 473

42 234

52 709

tonne

279 148

299 239

297 825

...

...

tonne

64 392

67 476

76 305

...

tonne

318 978

350 988

340 536

***

tonne

32 899

30 195

32 496

$ thousand

2 867

3 916

4 760

***

tonne

91 894

91 098

102 787

tonne

14 222

17 301

17 477

tonne

60

272

278

tonne

6 883

7 034

9 765

Other field crops

Vegetables (fresh, frozen or simply preserved)

Vegetables (preserved or prepared)

Fresh fruits and nuts

Dried fruits and fruit preparations

Flowers

Sugar and honey

Coffee

Cocoa

...

Tea and mate

Livestock and poultry

Cattle

Sheep, lambs and goats

Pigs

Chicken

Other poultry

Live animals

Meat and meat preparations

Dairy products and eggs

:

head

199 952

208 674

202 661

head

15 565

19 340

16 739

thousand head

2 471

2 644

2 826

tonne

13 542

12 832

13 273

tonne

11 748

14 970

12 890

...

tonne

697

858

899

tonne

95 891

104 424

120 338

Milk (fresh)

Cream (fresh)

:

:

::

:

tonne

4 270

3 425

4 633

tonne

419

423

629

Milk and cream (evaporated, condensed, powdered, etc)

tonne

34 378

30 319

33 204

Eggs (fresh)

Butter, cheese and curd

Eggs (preserved)

Fish and fish preparations

Fish (fresh, chilled or frozen)

Marine water fish

Fresh water fish

***

...

Fish (dried, salted or smoked)

tonne

4 247

4 409

4 625

:

thousand gross thousand gross

5 833

6 653

6 220

562

550

732

Marine water fish

Fresh water fish...

...

Fish products and preparations

Crustaceans and molluscs (fresh, frozen, dried, salted, etc)

...

Crustacean and mollusc products and preparations

Oil and fats (crude or refined)

Meals (animal feeding-stuffs)

::

tonne

...

tonne

9 787 30 894

9 810 33 235

9 253 30 842

tonne

tonne

6 992 124

7 296

6 419

99

119

...

tonne

22 611

22 194

28 682

...

tonne

3 717

3 861

3 445

tonne

1 747

2006

1 823

tonne

219

119

114

tonne

2 978

4 782

6 028

256

Government Grant

Subsidised Private

Special education

Total

Kindergarten

Private ...

Primary

:

Government and aided

Private

Sub-total

Secondary

Government and aided

Assisted private

Other private

Sub-total

Post-secondary

      Government* Private ... Sub-total

Adult education

Government*

Private ...

Sub-total

Special education

Government and aided

Private ...

Appendix 20

(Chapter 6: Education) Categories of Schools

:

As at September 30

1974

1975

1976

122

114

109

22

22

22

734

738

741

1,901

1,897

1,909

37

34

33

2,816

2,805

2,814

School Enrolment

:

:

137,117

146,965

161,471

567,713

548,215

521,574

129,274

112,707

102,167

696,987

660,922

623,741

109,046

114,908

125,308

50,151

49,400

50,107

230,101

251,383

278,376

389,298

415,691

453,791

3,523

3,613

2,840

8,248

7,971

8,735

11,771

11,584

11,575

27,042

29,730

30,097

35,586

35,351

36,748

62,628

65,081

66,845

4,950

5,654

5,675

87

21

5,037

5,675

5,675

1,302,838

1,305,918

1,323,098

Sub-total

Total

Note: The schools and enrolment refer to both the day and night sections. * Excluding students enrolled in Hong Kong Polytechnic.

Appendix 21

(Chapter 6: Education)

Overseas Examinations

Entries

London Chamber of Commerce

Test of English as a Foreign Language (TOEFL)...

Pitman Examinations Institute, typewriting

Examination

Conducted by Education Department:

University of London, General Certificate of Education...

1974

1975

1976

31,342

33,226

36,198

19,608

21,341

18,827

12,950

13,177

11,406

1,959

3,705

5,038

Pitman Examinations Institute, shorthand...

1,816

3,173

4,908

Pitman Examinations Institute, other subjects

575

1,643

3,194

Association of Certified Accountants

2,304

2,939

2,758

Association of International Accountants...

2,820

2,718

2,716

Chartered Institute of Secretaries and Administrators

1,660

1,735

1,873

Associated Examining Board, General Certificate of Education.

1,025

1,396

1,531

Institute of Cost and Management Accountants

403

574

563

University of London, external degree

316

408

522

Royal Society of Arts.....

130

123

Cambridge University Certificate of Proficiency in English

193

218

76

Cambridge University First Certificate in English.....

213

168

53

Canadian English Language Achievement Test

125

Canadian Scholastic Aptitude Test...

125

Others

700

834

638

Conducted by Hong Kong Polytechnic:

City and Guilds of London Institute Technological Examinations

1,890

2,100

1,950

Total

80,024

89,485

92,374

Appendix 22

(Chapter 6: Education)

Hong Kong Students in Britain

Course attending

Professional courses

Engineering

Nursing

Secretarial

Management and business studies

English Language

Science

Law

Accountancy

Textiles...

Arts

Computer science

Medical science

Pharmacy

Economics

Education

Social science

Art and design...

Architecture

Dentistry

Music

Hotel and catering

Others

Sub-total

General Certificate of Education School children

Total

:

:

257

As at December

1974

1975

1976

374

797

1,018

642

839

610

196

272

340

95

227

289

74

156

222

69

159

188

61

111

141

61

122

136

55

91

119

32

17

115

5

81

103

68

137

85

18

66

84

10

106

75

22

47

65

5

41

53

8

68

44

22

27

39

27

25

25

22

22

8

21

21

254

76

161

2,104

3,510

3,955

2,234

2,960

3,143

60

1,053

1,449

4,398

7,523*

8,547*

Students Leaving Hong Kong for Overseas Studies

Britain

United States

Canada

Australia

Country

1973-4

1974-5

1975-6

1,352

1,348

1,698

2,812

2,601

3,121

3,761

3,909

2,215

91

139

225

* These total figures have resulted from both an increase in the number of students arriving in Britain and from an increase in the number recorded due to a change in the recording procedure in the Students Section, Hong Kong Government Office, London.

Appendix 23

(Chapter 6: Education)

Expenditure on Education

$ Thousand

1973-4

School year Aug-July 1974-5

1975-6

Recurrent expenditure

169,073

202,525

213,233

Capital expenditure

19,679

8,922

12,535

Grants and subsidies

591,334

713,781

755,542

Grants to Universities and Polytechnic (including rates)

184,159

240,694

303,017

University and Polytechnic Grants Committee (including university student grants)

Total

3,664

4,868

5,924

967,909

1,170,790

1,290,251

Education expenditure by other departments

10,168

12,371

14,399

258

Estimated mid-year population

Births:

Known live births

Appendix 24

(Chapter 7: Health)

Vital Statistics

      Crude birth rate (per 1,000 population) Deaths:

Known deaths

      Crude death rate (per 1,000 population) Infant mortality rate (per 1,000 live births) Neo-natal mortality rate (per 1,000 live births) Maternal mortality rate (per 1,000 total births)

* Revised after the 1976 By-Census.

:

1974

1975

4,319,600* 4,395,800*

1976 4,443,800*

83,581

79,790

78,486

19.3*

18.2*

17.7

21,879

21,597*

22,692

5.1

4.9

5.1

17.4

15.0

14.3

11.0

10.3

9.1

0.16

0.03

0.17

Appendix 25

(Chapter 7: Health)

Causes of Death

1973

1974

1975

Infective and parasitic ...

1,393

1,281

854

Tuberculosis, all forms

1,154

974

646

Neoplasms

...

...

4,562

4,710

5,126

Malignant, including neoplasms of lymphatic and

haematopoietic tissues

4,539

4,683

5,105

Endocrine, nutritional, metabolic and blood ...

295

264

314

Diabetes mellitus

...

201

183

215

Nervous system, sense organs and mental disorders...

156

202

185

Circulatory system

5,358

5,604

5,865

Heart diseases, including hypertensive diseases

3,111

3,270

3,311

Cerebrovascular diseases

Respiratory system

Pneumonia, all forms

Digestive system

1,978

2,105

2,336

3,373

3,795

3,340

2,238

2,563

2,188

Bronchitis, emphysema and asthma

888

937

873

1,135

1,115

980

Peptic ulcer

169

183

164

Cirrhosis of liver

335

372

337

Genito-urinary system .

443

373

427

Complications of pregnancy, childbirth and the puerperium..... Skin, subcutaneous tissues, musculoskeletal system and

connective tissues

8

13

2

71

67

63

Congenital anomalies

336

398

395

     Certain causes of perinatal morbidity and mortality Symptoms and ill-defined conditions

Accidents, poisonings and violence

All accidents

Suicide and self-inflicted injuries

Total deaths

550

552

538

1,779

1,928

1,682

1,901

1,748

1,420

1,244

1,127

780

505

481

535

:

:

21,360

22,050

21,191

Category of hospitals

Appendix 26

(Chapter 7: Health)

Hospital Beds

Government hospitals

Government dispensaries

Government-assisted hospitals

Private hospitals

Private maternity homes

Private nursing/maternity homes

Total

† Revised figures.

:

:

:

:.

:

:

:

:

:

:

:

:

:

:

259

As at end of year

1974

1975

1976

6,311

8,108†

8,618

432

425

423

8,165

7,849

7,913

1,938

2,023

2,175

143

113

98

45

43

43

17,034

18,561†

19,270

Appendix 27

(Chapter 7: Health)

Professional Medical Personnel

As at end of year

In Government service 1974

Total registered

1975 1976 1974 1975 1976

Medical doctors

743* 767*

:

792* 2,723

2,880

3,127

Provisionally registered medical doctors

(house officers)

123

116

155

171

199

210

Dentists

65

62

68

513

541

576

Pharmacists

25

27

29

220

234

258

Midwives (without nursing qualifications)..

293

312

345

893

931

974

Nurses (general, male and female, excluding

student nurses)

2,374

2,543† 2,758

6,906

7,581 8,226

with midwifery qualifications

1,561

1,630† 1,780

4,391

4,691 4,931

without midwifery qualifications

813

913

978

2,515

2,890 3,295

Nurses (psychiatric, male and female,

excluding student nurses)

232

238

243

228

265

282

* Including unregistrable assistant medical officers,

† Revised figures.

260

Appendix 28

(Chapter 8: Housing and Land)

Number of Quarters and Estimated Persons Accommodated

as at March 31, 1976

Number of Quarters

Rest of

Urban

Category

areas

Tsuen Wan

New

Total

Territories

Government quarters ...

12,460

490

2,400

15,350

Public housing

Housing Authority estates

278,490

64,600

7,260

350,350

Housing Authority cottage areas

5,630

130

2,120

7,880

Housing Society estates Sub-total

20,370

2,060

22,430

304,490

66,790

9,380

380,660

Private housing

Total permanent

412,100

19,900

69,100

501,100

:

:

:

729,050

87,180

80,880

897,110

Estimated Persons Accommodated

Hong

Kowloon

Rest of

Tsuen

Category

Kong

and New

New

Total

Wan

Island

Kowloon

Territories

Government quarters.

18,000

22,900

1,600

6,500

49,000

Public housing

Housing Authority estates...

189,400

1,125,600

303,500

25,500

1,644,000

Housing Authority cottage

areas

11,900

19,000

500

6,900

38,300

Housing Society estates

51,200

55,100

11,100

117,400

Sub-total

252,500 1,199,700

315,100

32,400

1,799,700

Private housing

711,300

1,041,100

107,200

284,100

2,143,700

Total permanent

981,800

2,263,700

423,900

323,000

3,992,400

Temporary

Marine

Total population

384,600

60,000

4,437,000

Note: The distributions of quarters and persons are adjusted using the result of the 1976 By-Census.

A quarter is a premises occupied by one or more households.

Housing Authority estates refer to the former government low-cost housing, the former Housing Authority

estates and the former resettlement estates.

The statistics for government quarters are based on returns from various government departments. The popula- tion figures include persons living in barrack type accommodation, but this type of accommodation is not included in the quarter figures. Non-departmental government quarters are included in the figures for private housing.

Appendix 29

(Chapter 8: Housing and Land)

261

Land Office

Item

1974

1975

1976

Instruments registered

Assignments of whole buildings or sites ...

659

814

1,235

Assignments of flats or other units

28,333

29,657

32,369

Agreements for sale and purchase of flats or other units

6,058

7,329

15,810

Building mortgages

115

109

152

Other mortgages

...

23,954

26,278

31,214

Reassignments and certificates of satisfaction

16,460

18,926

20,970

Exclusion orders

164

58

86

Re-development orders

Miscellaneous

Total ...

Conditions of sale, grant, exchange, etc registered

:

:

:

53

27

13

9,386

8,940

9,087

85,182

92,138

110,936

183

127

115

Consents granted to entering into agreements for sale and

purchase

120

155

178

...

...

Modifications and variations of lease conditions

55

62

68

Crown leases issued

62

22

90

Determinations of Crown rent and premium

261

128

63

Multi-storey building owners corporations registered

112

97

95

Public searches in Land Office records

:

:

154,523

174,413

206,207

$ Thousand

1,574,356

1,725,143 2,168,850

3,538,910

4,199,840 5,257,444

345,522

316,282

493,956

3,977,045

3,983,529 5,705,959

Considerations in Instruments Registered in Land Office

:

:

1,791,010

15,661

2,404,690

3,043,665

64,456

11,463

16,681,337

11,242,504 12,693,940

:

:

:

:

:

:

....

:

:

Assignments of whole buildings or sites

Assignments of flats or other units

Building mortgages

Other mortgages

Reassignments

Miscellaneous instruments

Total

:

:

:

:

262

1974

1975

1976*

3,644

3,518

3,797

4,935

5,534

6,070

2,403

2,381

2,463

14

15

15

10,996

11,448

12,345

Hong Kong Island

Kowloon ...

New Territories

Marine

Total

Appendix 30

(Chapter 10: Public Order)

Traffic Accidents

94

74

76

1,335

1,305

1,415

3,025

2,861

3,154

152

152

160

2,237

2,496

2,587

3,690

3,990

4,630

117

145

112

1,331

1,523

1,519

1,970

1,757

2,034

1

4

6

9

10

13

15

13,965

14,323

15,711

Hong Kong Island

Fatal

Serious...

Slight

Kowloon

Fatal

Serious.. Slight

New Territories

Fatal

Serious Slight

Marine

...

Traffic Casualties

: : :

Fatal

Serious

Slight

Total

* Provisional figures.

:

Against lawful authority

Against public order

Perjury...

Escape and rescue

Unlawful society

Other offences

Sub-total

Against public morality

Rape and indecent assault Other sexual offences

Sub-total

Appendix 31

(Chapter 10: Public Order)

Crime

:.

:

Police Cases

Number of crimes/offences

reported

Number of persons prosecuted

1974

1975

1976

1974

1975

1976

1,073

1,236

1,362

1,384

1,670

1,783

60

119

351

43

112

289

137

92

130

69

41

61

3,070

4,233

4,089

2,612

3,220

3,054

307

291

273

126

155

166

4,647

5,971

6,205

4,234

5,198

5,353

657

747

912

228

307

362

982

842

783

348

298

400

1,639

1,589

1,695

576

605

762

Appendix 31-Contd

(Chapter 10: Public Order)

Number of crimes/offences

263

reported

1974

1975

1976

1974

Number of persons

prosecuted 1975

1976

Against the person

        Murder and manslaughter Attempted murder

102

105

82

82

75

59

8

5

3

12

4

Serious assaults

Abortion

Kidnapping

Criminal intimidation

Other offences

Sub-total

3,738

4,676

4,613

1,807

2,485

2,765

11

21

11

10

16

13

7

9

4

16

14

5

239

545

815

142

342

535

170

121

100

66

84

85

:

4,275

5,482

5,628

2,135

3,020

3,462

Against property

Robbery with firearms

33

66

57

13

65

21

Other robberies

12,754

11,054

8,838

2,198

1,758

1,278

All burglaries

6,328

6,368

5,665

712

548

471

Going equipped for stealing, etc

747

710

873

355

274

207

Blackmail

1,612

2,489

4,775

468

685

669

Theft from persons

1,511

1,720

1,647

358

384

394

Other thefts

15,741

13,540

16,598

5,011

3,935

3,851

All frauds

1,885

2,098

2,412

667

561

838

Handling stolen goods

165

167

271

146

112

142

Malicious damage to property

850

1,116

1,375

236

365

395

Unlawful possession

565

474

487

515

413

386

Possession of an unlawful instrument

163

120

333

99

70

113

Loitering and trespass

637

846

1,564

587

831

1,485

Sub-total

42,991

40,768

44,895

11,365

10,001

10,250

Other crimes

Forgery and coinage

384

463

413

68

96

113

Bribery and corruption

29

44

53

23

33

43

Possession of arms and ammunition

82

193

142

50

94

82

Conspiracy

233

226

138

246

334

226

Breach of deportation

8

5

5

8

4

3

Other crimes

162

158

118

82

72

62

Sub-total

898

1,089

869

477

633

529

Serious narcotic offences

1,461

1,621

2,717

1,785

1,801

3,129

Total

55,911

56,520

62,009

20,572

21,258

23,485

Crime detection rate

1974-46.0 per cent

1975-49.4 per cent

1976-59.7 per cent

Narcotic Offence Cases

Serious offences

Manufacturing

9

13

6

13

32

11

Trafficking (importing)

3

35

2

9

2

Other trafficking

8

108

238

49

96

267

Possession for purpose of trafficking

1,441

1,465

2,471

1,714

1,673

2,849

Sub-total

1,461

1,621

2,717

1,785

1,801

3,129

Opium

Possession of opium

1,932

787

586

1,745

526

428

Possession of equipment

233

280

238

88

97

93

Keeping a divan

265

258

114

259

244

101

Smoking opium

Other opium offences

Sub-total

7,725

3,135

2,082

7,619

3,164

2,062

22

9

6

:

10,177

4,469

3,026

9,712

4,031

2,684

264

Appendix 31-

Contd

(Chapter 10: Public Order)

Number of crimes/offences

Heroin

reported

Number of persons

prosecuted

1974

1975

1976

1974

1975

1976

...

6,084

6,440

5,627

5,397

6,131

5,405

424

565

771

228

343

394

5

11

2

7

1,386

1,353

1,100

1,235

1,225

799

40

67

111

11

14

15

:

7,934

8,430

7,620

6,871

7,715

6,620

98

91

139

66

72

114

15

5

8

8

5

6

14

13

9

11

8

3

127

109

156

85

85

123

19,699

14,629

13,519

18,453

13,632

12,556

ICAC Cases

Number of persons prosecuted

1976

1974§

1975

Pending

Convicted

Acquitted

Total

Possession of heroin

Possession of equipment

Keeping a divan

Smoking heroin

Other heroin offences

Sub-total

Other dangerous drugs

Possession

Smoking

Other offences

Sub-total

Total

Involving individuals employed in government

departments

Agriculture and Fisheries

Education

Fire Services

Housing

Immigration

Labour

Marine

Medical and Health

New Territories Administration

Post Office

Printing

Prisons

Public Works

Royal Hong Kong Police Force

Transport

Urban Services

Sub-total

| |"4 | | ।བ- 1 022 |ཟ༐ༀ |

1

2

1

1

2

1

12

30

1

2

་།།

1

1

1

1

1

2

13

13

2

2

1

1

1

1

1

1

5

4

10

18

19

18

55

2

2

4

3

2

w

23

48

25

518

96

Others

ICAC

Judiciary

Crown servants/private individuals*

Public bodiest

Public bodies/private individuals*

Private sector+t

Sub-total

Total

-182

35

།ཋ།ཆ

112017

44

123

218

1

7

49

1

2

90

141

189

་ །ཟ།ཋ།

* These are cases in which Crown/public servants and private individuals were involved.

† As defined in the Prevention of Bribery Ordinance 1971, Cap. 201.

These are cases in which only private individuals were involved.

§ From February 15 to December 31, 1974.

།ཋ」ཎ།།

1

63

1

2

96

163

259

265

Appendix 32

(Chapter 10: Public Order)

Cases in the Supreme Court, District Court,

Tenancy Tribunal, Labour Tribunal and Lands Tribunal

Supreme Court

Civil appeals

Criminal appeals

Original jurisdiction

Miscellaneous proceedings

Adoptions

Divorce

Criminal sessions

::

:

1974

1975

1976

57

62

67

1,154

1,151

1,338

3,154

3,165

2,822

488

552

771

411

450

392

50

45

39

142

123

149

139

156

154

1,880

2,113

2,140

57

96

64

75

95

73

7,607

8,008

8,009

668

490

950

20,821

24,356

18,971

296

259

302

2,136

2,562

2,032

92

789

893

1,054

1,031

24,802

28,560

24,340

708

559

304

146

141

187

114

63

16

968

763

507

:

:

:.

:

:

:

:

:

:

:

:

Admiralty jurisdiction

Probate grants Bankruptcy

Company winding-up

Total ...

District Court

Criminal jurisdiction Civil jurisdiction

Workmen's compensation Distress for rent

Rent increase application Divorce jurisdiction Small claims tribunal

Total ...

Tenancy Tribunal

Ordinary cases

Exemption cases

Demolished building cases

Total ...

Labour Tribunal

Claims dealt with

Lands Tribunal

Claims dealt with

:

1,908

2,027

1,982

10

Work in

the Magistracies

Summary matters (charges, summonses and applications,

etc)

Adult defendants

Adult defendants convicted

Juvenile defendants

Juvenile defendants convicted

Charge sheets issued

Summonses issued

Miscellaneous proceedings issued

537,258

558,497

630,016

773,923

581,917

641,917

508,826

536,310

604,982

3,787

3,540

4,387

3,615

3,252

4,074

189,726

174,527

191,130

...

::

...

342,691

377,967

433,340

4,841

6,003

5,546

266

Population of

Prisons

Training centres

Detention centres

Treatment centres

Discharges under aftercare

Appendix 33

(Chapter 10: Public Order)

Prisons

As at end of year

1974

1975

1976

5,775

6,237

5,907

610

581

423

255

183

191

1,581

1,496

1,646

3,006

3,159

2,950

Appendix 34

(Chapter 12: Public Works and Utilities) Electricity Consumption, 1976

Maximum

Sales per

Sales

Consumers

demand

head of population

MW

GW h

hundreds

kW h

China Light and Power Company

1,232

5,288

7,398

1,643

(1,086)

(4,627)

(7,086)

(1,441)

The Hong Kong Electric Company

Cheung Chau Electric Company

519

1,980

2,504

1,885

(460)

(1,790)

(2,406)

(1,721)

7

48

350

(7)

(46)

(340)

7,275

9,950

1,637

(6,424)

(9,538)

(1,461*)

Note:

Figures in brackets refer to 1975.

1 GW h=1,000,000 kW h.

* Revised figure.

Domestic

Industrial

Commercial

Street lighting

Total

Electricity Distribution

GW h

1974

1975

1976

1,393.72

1,529.75

1,649.92

2,319.10

2,456.47

2,926.31

2,178.71

2,408.74

2,668.67

25.60

5,917.13

29.02

6,423.98

30.18

7,275.08

Domestic Industrial Commercial

Total

Gas Consumption and Distribution

Therms

1974 7,485,945

1975 8,060,994

1976 8,813,890

984,960

1,136,552 1,517,723

5,516,096

6,053,062 7,590,612

13,987,001

15,250,608 17,922,225

Water Consumption

Million cubic metres

1974

1975

1976

Fresh water

349

361

405

Salt water (flushing purposes)

64

67

78

Note: The total fresh water supply bours for 1974 were only 8 540.

Appendix 35

(Chapter 13: Communications and Transport)

International Movements of Aircraft and Vessels

267

1974

1975

1976

Aircraft

Arrivals

26,469

25,545

25,096

Departures

26,460

25,549

25,098

Total

52,929

51,094

50,194

Ocean-going vessels

Arrivals

7,321

7,406

8,071

Departures

7,370

7,448

8,132

Total

14,691

14,854

16,203

River steamers, hydrofoil vessels, junks and launches

Arrivals

33,853

34,711

35,402

Departures

33,782

34,698

35,421

Total

67,635

69,409

70,823

Arrivals

International Movements of Passengers

(Immigration figures)

Air

Sea

Rail

Total

Departures

Air

Sea

Rail

Total

Note:

All figures quoted here exclude:-

i. Passengers in transit.

ii. Passengers refused permission to land.

iii. Military passengers.

Thousands

1,711

1,770

2,059

2,218

2,067

2,317

926

796

896

4,855

4,633

5,272

1,763

1,826

2,103

2,191

2,045

2,316

855

760

884

4,809

4,631

5,303

International Movements of Commercial Cargo

by Different Means of Transport

Air

Imports Exports

Total

Sea

Imports

Exports

Total

Rail

Imports* Exports

Total

:

::

:

: :

:

Tonnes

35 485

40 789

66 773

100 831

51 207 112 028

102 258

141 620

163 235

13 708 505 4 919 890

18 628 395

13 517 632 5 083 199

18 600 831

17 374 136 5 966 805

23 340 941

1 162 244 767

1 480 993 721

1 421 358 752

1 163 011

1 481 714

1 422 110

* Excluding livestock totalling 1 531 862 head in 1974, 1 725 222 head in 1975 and 1 741 510 head in 1976.

268

Appendix 36

(Chapter 13: Communications and Transport)

Registered Motor Vehicles

Public service vehicles

Public buses

    China Motor Bus Company Kowloon Motor Bus Company

New Lantao Bus Company

Others

Public light buses

Taxis

Public hire cars

Private vehicles

Motor cycles

Motor tricycles

1974

As at end of year

1975

1976

595

629

702

1,371

1,560

1,700

42

42

44

1,194

1,186

1,208

4,277

4,307

4,346

4,754

4,754

4,994

1,264

1,283

1,322

23,254

22,290

21,285

38

26

18

Private cars

119,273

114,260

113,665

Private buses

308

293

265

Private light buses

1,648

1,447

1,245

Goods vehicles

31,596

32,034

37,108

Crown vehicles (excluding vehicles of H M Forces)

Motor cycles

902

Other motor vehicles

2,923

Total

193,439

913 2,994 188,018

857

2,987 191,746

Tramcars

Hongkong Tramways Limited.

Tramcars

162

162

162

Trailers

22

22

22

22

Peak Tramways Company

Tramcars

3

3

3

Total

187

187

187

Public Transport: Passengers Carried by Undertaking

Thousand journeys

1974

1975

1976

Kowloon Motor Bus Company

564,488

634,562

716,430

China Motor Bus Company

181,172

215,761

230,556

Hongkong and Yaumati Ferry Company

153,397

143,467

135,324

Hongkong Tramways Limited...

147,588

144,011

128,163

'Star Ferry Company

50,465

53,197

50,700

Kowloon-Canton Railway

13,778

13,474

12,491

Peak Tramways Company

2,051

2,034

1,821

New Lantao Bus Company

1,225

1,373

1,685

Total

1,114,164

1,207,879

1,277,170

Public Transport: Passengers Carried by Area

Thousand journeys

Hong Kong Island

299,819

320,648

304,359

Kowloon

Cross Harbour

Ferry

Tunnel

New Territories

Urban

Rural

Ferry Total

Public Transport: Daily Average Number of Passengers

420,114

458,692

497,521

189,717

181,485

169,499

67,519

86,107

113,858

67,690

82,676

99,691

55,160

63,092

75,714

14,145

15,179

16,528

1,114,164

1,207,879

1,277,170

Carried by Different Modes of Transport

Thousand journeys

Bus

2,046

2,333

2,592

Public light bus*

1,332

1,434

1,595

Taxi*

563

563

591

Ferry

559

539

508

Tram

410

400

350

Public hire car*

Railway

Total

* Estimate

45

46

47

38

37

34

4,993

5,352

5,717

Appendix 37

(Chapter 13: Communications and Transport)

Communications

Postal traffic:

Letter mails (million articles)

posted to destinations abroad

posted for local delivery

received from abroad for local delivery

in transit

Parcels (thousands)

posted to destinations abroad

posted for local delivery

received from abroad for local delivery

in transit

Telecommunications traffic:

Telegrams (thousands)

accepted for transmission

received

in transit

Telex calls (thousand minutes)

outward

inward

International telephone calls (thousand minutes)

outward

inward

Radio pictures

transmitted

received

Broadcast and reception services (thousand hours)

press

meteorological

International telephone circuits

International telegraph circuits

Telex trunks

International leased circuits

voice grade

telegraph

Telephone exchanges

Exchange capacity (thousand lines)...

Subscribers (thousands)

Telephones (thousands)

Telephones per 100 population

Telecommunications licences (all types)

::

269

1974

1975

1976 Estimated

76.9

76.0

76.3

121.1

132.2

146.9

57.5

58.3

57.6

2,6

2.7

2.8

2,533

2,707

2,373

76

112

82

553

528

507

41

43

40

1,101

1,238

1,228

1,821

1,598

1,574

1,432

1,513

1,407

7,841

7,404

8,298

5,974

5,838

9,785

9,436

10,579

12,513

11,704

13,715

17,620

10,412

7,639

7,456

9,214

6,641

6,691

26

13

19

138

146

139

330

371

524

798

1,046

1,273

283

412

583

9

17

31

434

528

652

52

53

56

1,029

1,109

1,137

803

835

905

988

1,028

1,123

23.1

23.4

24.9

13,308

15,171

16,299

Appendix 38

(Chapter 17: Recreation)

Recreational Facilities Provided by the Urban Council

and Urban Services Department

Facilities

1974

1975

1976

Children's playgrounds

305

317

306

Parks and gardens

458

570

471

Grass games pitches

Hard-surface mini-soccer pitches

Basketball/volleyball/badminton courts

Tennis courts

51

62

53

99

98

115

412

436

430

36

36

36

Running tracks

9

12

9

Beaches

37

36

37

Swimming pools...

8

8

Multi-purpose indoor games halls

1

4

4

Obstacle golf course, squash courts, practice tennis court, bowling and

putting greens, roller-skating rinks, table tennis tables

Aviaries and mammal exhibits, concrete chess tables, model boat pools,

open-air theatre

112

525

57

64

67

128

60

Bandstand, barbecue pits, composite beach buildings, changing rooms, fountains, dog's gardens, refreshment kiosks, public toilets, public libraries, pavilions/shelters, spectator stands

481

583

1,232

*

Total acreage of public open space administered

***

1,570

1,628

1,620

270

Appendix 39

(Chapter 18: The Environment)

Climatological Summary, 1976

Maxi-

Month

Mean

pressure at mean sea level

mum air tempera- ture

Mean air tempera- ture

Mini- mum Mean Mean Mean Total air dew relative amount bright "tempera- point humidity of cloud sunshine

Total rainfall

Prevailing wind] mean wind speed

Royal

Observa-

Waglan

Island

ture

tory

millibars

°C

°C

°C

°C

per cent per cent

hours

mm

direction/knots

January

1 021.0

22.9

15.6

9.0

8.3

February

1 016.6

25.6

17.6 11.5

13.2

48

64

39

223.2

5.8

E/6.4 ENE/10.3

77

68

122.5

13.1

E/6.2 ENE/13.6

March

1 016.1

27.9

18.2

7.9

14.7

81

86

78.1

11.2

E/5.1 ENE/14.1

April

May

...

1 013.5

30.1

21.1

15.6

17.9

83

83

97.4

117.3

E/5.7 ENE/12.2

1 008.4

35.2

25.9

17.4

22.6

83

73

136.4

162.1

E/3.8

E/11.1

June

1 006.0

33.8

27.4

22.5

24.4

84

75

144.1

424.9 WSW/5.0

SW/11.7

July

1 006.1

33.9

28.1

24.4

24.9

83

67

183.0

426.8

E/7.5 SW/11.9

August

1 007.3

34.1

27.9

22.1

24.8

84

60

213.4 765.3

E/5.4 E/11.4

September

1 008.6

32.6

26.8

21.9

22.7

79

65

147.0

204.7

E/6.9

E/16.4

October

1 014.4

29.9

24.9

20.8 20.7

78

66

151.9

64.1

E/6.2

E/15.9

November

1 019.5

27.7

19.1

11.8

11.1

62

46

203.1

0.8

N/4.7

N/16.0

December

1 019.4

26.2

17.3

5.7

11.8

71

50

183.4

1.1

E/4.5 N/12.9

Mean

1 013.1

22.5

18.1

77

65

E/5.6 E/13.1

Total

1883.5 2 197.2

Climatological Normals

(1884-1939; 1947-60)

Month

millibars

°C*

°C

°C*

°C per cent per cent hours

mm

direction/knots

January

1 019.9

26.9

15.4

0.0

11.1

75

64

145.4 31.7

E/7.7 E/12.8

February

1 018.4

27.8

15.2

2.4

11.7

79

75

100.2

46.9

E/8.9 E/12.6

March

1 016.1

30.1

17.5

6.2 14.8

April

1 012.7

33.4

21.3

9.9

18.8

863

83

85

888

82

94.7

72.2

E/9.4 ENE/11.9

80

114.6

135.8

E/8.7 E/10.6

May

1 009.2

35.5

25.2

15.4 22.4

85

76

156.1

292.7

E/8.3 E/10.5

June

1 005.9

35.6

27.3

19.2 24.2

84

78

159.9

401.2

E/7.6 SW/11.6

July

1 004,9

35.7

27.9 22.2 24.7

83

69

213.7

371.7

E/6.8 SW/10.1

August

...

1 004.9

36.1

27.7

21.6 24.6

84

67

200.9

370.8

E/6.5 SW/9.9

September

1 008.4

35.2

27.1 18.4

23.1

79

61

197.5 278.8

E/7.8 E/11.7

October

1 013.8

34.3

24.6

14.1

19.3

72

51

218.9

99.2

E/8.5 E/14.4

November

...

1 017.5

31.8

20.9

6.5

15.1

69

53

187.9

43.1

E/7.8 E/14.4

December

1 019.7 28.7 17.3

4.3

11.9

70

55

172.6

24.9

E/7.2 N/13.6

Mean

1 012.6

22.3

18.5

79

68

E/7.9

E/12.0

Total

...

[

I

1

1963.1 2168.8

* 1884-1939; 1947-76.

Type of appointment

Ex-officio

""

"

Nominated

Appendix 40

(Chapter 22: Constitution and Administration)

The Executive Council

Names of Members on January 2, 1977

Presided over by His Excellency the Governor,

Sir Crawford Murray MACLEHOSE, GBE, KCMG, KCVO

OFFICIAL MEMBERS:

His Excellency the Commander British Forces

Lieutenant General Sir Arthur John ARCHER, KCB, OBE

The Honourable the Chief Secretary

Sir Denys ROBERTS, KBE, QC, JP

The Honourable the Financial Secretary

Mr Charles Philip HADDON-CAVE, CMG, JP

The Honourable the Attorney General

Mr John William Dixon HOBLEY, CMG, QC, JP

The Honourable the Secretary for Home Affairs

Mr Denis Campbell BRAY, CVO, JP

The Honourable Li Fook-kow, CMG, JP

(Secretary for Social Services)

UNOFFICIAL MEMBERS:

Nominated

The Honourable Sir Yuet-keung KAN, CBE, JP

"

The Honourable Sir Sidney GORDON, CBE, JP

"

Dr the Honourable CHUNG Sze-yuen, CBE, JP

""

The Honourable ANN Tse-kai, CBE, JP

The Honourable G. M. SAYER, JP

The Honourable Oswald Victor CHEUNG, CBE, QC, JP

""

The Honourable LEE Quo-wei, OBE, JP

"

""

The Honourable Mrs Catherine Joyce SYMONS, OBE, JP

271

272

Type of appointment

Appendix 41

(Chapter 22: Constitution and Administration)

The Legislative Council

Names of Members on January 2, 1977

Ex-officio

His Excellency the Governor,

PRESIDENT:

""

"

Nominated

19

59

Nominated

55

55

45

タラ

37

"

Sir Crawford Murray MACLEHOSE, GBE, KCMG, KCVO

OFFICIAL MEMBERS:

The Honourable the Chief Secretary

Sir Denys ROBERTS, KBE, QC, JP

The Honourable the Financial Secretary

Mr Charles Philip HADDON-CAVE, CMG, JP

The Honourable the Attorney General

Mr John William Dixon HOBLEY, CMG, QC, JP The Honourable the Secretary for Home Affairs

Mr Denis Campbell BRAY, CVO, JP

The Honourable Ian MacDonald LIGHTBODY, CMG, JP

(Secretary for Housing)

The Honourable David Harold JORDAN, CMG, MBE, JP

(Director of Commerce and Industry)

The Honourable Li Fook-kow, CMG, JP

(Secretary for Social Services)

The Honourable David AKERS-JONES, JP

(Secretary for the New Territories)

The Honourable Lewis Mervyn DAVIES, CMG, OBE, JP

(Secretary for Security)

The Honourable David Wylie MCDONALD, JP

(Director of Public Works)

The Honourable Kenneth Wallis Joseph TOPLEY, CMG, JP

(Director of Education)

The Honourable Ian Robert PRICE, CBE, TD, JP

(Commissioner for Labour)

The Honourable David Gregory JEAFFRESON, JP

(Secretary for Economic Services)

The Honourable Alan James SCOTT, JP

(Secretary for the Civil Service)

The Honourable Garth Cecil THORNTON, QC

(Solicitor General)

The Honourable Edward Hewitt NICHOLS, OBE, JP

(Director of Agriculture and Fisheries)

The Honourable Thomas LEE Chun-yon, JP

(Director of Social Welfare)

The Honourable Derek John Claremont JONES, JP

(Secretary for the Environment)

Dr the Honourable THONG Kah-leong, JP

(Director of Medical and Health Services)

UNOFFICIAL MEMBERS:

Dr the Honourable CHUNG Sze-yuen, CBE, JP The Honourable LEE Quo-wei, OBE, JP The Honourable Oswald Victor CHEUNG, CBE, QC, JP The Honourable Rogerio Hyndman LOBO, OBE, JP The Honourable Peter Gordon WILLIAMS, OBE, JP The Honourable James Wu Man-hon, OBE, JP The Honourable Hilton CHEONG-LEEN, OBE, JP

The Honourable Li Fook-wo, OBE, JP

The Honourable John Henry BREMRIDGE, OBE, JP

Dr the Honourable Harry FANG Sin-yang, OBĖ, JP The Honourable Mrs KWAN Ko Siu-wah, OBE, JP

The Honourable Lo Tak-shing, OBE, JP

The Honourable Francis Yuan-hao TIEN, OBE, JP

The Honourable Alex Wu Shu-chih, OBĖ, JP

The Rev the Honourable Joyce Mary BENNETT, JP

The Honourable CHEN Shou-lum, JP

The Honourable Miss Lydia DUNN, JP

Dr the Honourable Henry Hu Hung-lick, OBE, JP

The Honourable LEUNG Tat-shing, JP

The Rev the Honourable Patrick Terence McGOVERN, SJ, JP The Honourable Peter C. WONG, JP

The Honourable WONG Lam, JP

Type of appointment

Appendix 42

(Chapter 22: Constitution and Administration)

Urban Council

Names of Members on January 2, 1977

CHAIRMAN:

Elected by Urban Council

Mr Arnaldo de Oliveira SALES, CBE(H), JP (A)

VICE-CHAIRMAN:

Dr the Honourable Henry Hu Hung-lick, OBE(H), JP (E)

MEMBERS:

Mr Brook Antony BERNACCHI, OBE, QC, JP (E)

The Honourable Hilton CHEONG-LEEN, OBE, JP (E)

Mrs Elsie ELLIOTT (E)

The Honourable Rogerio Hyndman LOBO, OBE, JP (A)

Mr Hugh Moss Gerald FORSGATE, OBE, JP (A)

Mr Kenneth Lo Tak-cheung, OBE, JP (A)

Dr Denny HUANG Mong-hwa (E)

Mr Peter CHAN Po-fun, JP (A)

Mr Peter CHAN Chi-kwan (E)

Mr John MACKENZIE, JP (A)

Miss Cecilia YEUNG Lai-yin (E)

Mr TSIN Sai-nin (E)

Mr Edmund CHOW Wai-hung (E)

Mr Ambrose CHOI Kwok-ching (E)

Dr WONG Pun-cheuk (E)

Mr Hu Fa-kuang (A)

Mr WONG Shiu-cheuck, MBE, JP (A)

Mr SHUM Choi-sang, MBE, JP (A)

Mrs Grace Ho, JP (A)

Mr Henry LUK Hoi-on (E)

Mr Lawrence FUNG Hing-lun (A)

Mr Kim CHAM Yau-sum (A)

Note: (E)-Elected

(A)=Appointed

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