港史文本 - HK In Texts: Hong Kong Yearbook - Annual Report for the Year 1977

HONG KONG 1978

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A review of 1977

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3 3288 02638909 O

HONG KONG 1978

Editor: Philip Rees, 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, with special

thanks to Mr Fung Hon-hau for designing the Chinese seals used to illustrate the chapter headings

Acc. No.

URBAN COUNCIL PUBLIC LIBRARIES

288938

Class

951.25

Author

HON

HKCr

　　　　Frontispiece: Dawn light adds the tranquility of a Chinese painting to this study of a lone egret near Yim Tso Ha, a protected egretry on the shores of Starling Inlet.

Contents

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

INDUSTRY AND TRADE

FINANCIAL STRUCTURE

EMPLOYMENT

PRIMARY PRODUCTION

EDUCATION

HEALTH

HOUSING AND LAND

SOCIAL WELFARE

109

PUBLIC ORDER

116

IMMIGRATION AND TOURISM

134

PUBLIC WORKS AND UTILITIES

139

COMMUNICATIONS AND TRANSPORT

148

THE MEDIA

164

THE ARMED SERVICES AND AUXILIARY SERVICES

172

RELIGION AND CUSTOM

177

RECREATION AND THE ARTS

182

THE ENVIRONMENT

189

POPULATION

201

NATURAL HISTORY

204

HISTORY

209

CONSTITUTION AND ADMINISTRATION

217

INDEX

275

Frontispiece

Silver Jubilee

Country Parks

Industry

Illustrations

vi-1

4-5

12-3

Fishing

44-5

Education

60-1

Medical Services

76-7

Police

124-5

Harbour

Urban Amenities

156-7

188-9

Around Hong Kong

204-5

END-PAPER MAPS

Front:

Hong Kong, Kowloon and the New Territories

Back:

Population Map of Hong Kong

Appendices

UNITS OF MEASUREMENT

232

OVERSEAS REPRESENTATION

233

3-4

INDUSTRY AND TRADE

234

5-12

FINANCIAL STRUCTURE

238

13-16

EMPLOYMENT

248

17-19

PRIMARY PRODUCTION

252

20-23

EDUCATION

254

24-27

HEALTH

256

28-29

HOUSING AND LAND

258

30-33

PUBLIC ORDER

260

PUBLIC WORKS AND UTILITIES

264

35-37

COMMUNICATIONS AND TRANSPORT

265

RECREATION AND THE ARTS

267

THE ENVIRONMENT

268

40-41

CONSTITUTION AND ADMINISTRATION

269

URBAN COUNCIL

272

SOCIAL WELFARE

273

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 1977, the middle market rate was about HK$4.62=US$1.

Metrication is being adopted by government depart- ments; for consistency, all reports have been presented in metric units, whether originating in metric units or otherwise.

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Salute to the Queen

The Silver Jubilee Year commemorating the 25th anniversary of the Queen's acces- sion to the throne proved an eventful one for Hong Kong both at home and abroad. Fittingly, Hong Kong's celebrations began on February 6 - the date of accession with a Thanksgiving Service in St John's Cathedral attended by Princess Alexandra. The spotlight moved to London later that month when the Hong Kong Government sent a 42-metre long 'silver' goodwill dragon to take part in festivities through- out the year. On April 21, the Queen's birthday, Hong Kong was the scene of a ma grand procession through the streets of Causeway Bay and Wan Chai. Then, in July and August, Hong Kong made a further contribution to Britain's jubilee celebrations when it sent a special team of dancers, singers and the Chinese Music Orchestra to the United Kingdom for a 10-city tour. Throughout the remainder of the year, Hong Kong marked the jubilee with special sporting and cultural events. The climax of the festivities was the Jubilee Pageant, held in the Government Stadium on six consecutive nights from November 20 to 25. About 150,000 people watched the pageant, which was specially designed to reflect the progress made by Hong Kong and its people during the Queen's reign. All proceeds from ticket sales went towards the building at Sha Tin of the Jubilee Sports Centre, a $50 million project that will serve as a permanent monument to the Silver Jubilee Year.

Previous page: A member of Britain's world- renowned Red Devils free fall parachute team, complete with Union Jack, weaves a smoky trail across the sky at a rehearsal for the Jubilee Pageant held in November. Left: Graceful dancers and colourful floats make their way through the streets of Causeway Bay during the Jubilee Procession, which coincided with the Queen's birthday.

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No celebration in Hong Kong is complete without a dragon - the traditional Chinese symbol of eternal life - and the Jubilee Procession was no exception.

PUBLIC

The Chinese Music Orchestra at one of the concerts it gave during a 10-city United Kingdom tour

with the Hong Kong Silver Jubilee Company.

Two views of the Hong Kong schools' Chinese dance team that toured England, Scotland and Wales with the Silver Jubilee Company.

***A youngster gets a helping hand on a trampoline during one of the many outdoor activities organised &

by the Council for Recreation and Sport.

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　　　　　Many sporting competitions, including volleyball, were held throughout Hong Kong Island, Kowloon and the New Territories to mark the Silver Jubilee.

Above: Pageant performers depict the Birthday of Tin Hau - goddess of seafarers - and the Mid-Autumn Festival.

Below: Window ladder and field gun displays gave the Royal Navy a chance to show its skill.

Outdoor Activities:

A fuller life for all

浩的亥

生會更湯的充

湣戸

動外

HONG KONG's greatest asset has always been its people. It is largely through their hard work and a strong measure of business acumen that the British territory has prospered.

But it would be wrong to assume that life in Hong Kong revolves only around work. For the past decade has produced a significant social development: an enormous growth in outdoor recreation among its more than 4.5 million people.

This phenomenon has largely been brought about by two factors. First, most people live in densely-populated urban areas where the high-rise environment produces stresses that make relief and diversion of crucial importance. Secondly, a rising stand- ard of living and legislation that assures workers of a week's paid annual leave, in addition to statutory public holidays, has given people the chance to enjoy a life in which material benefits are not the only goal.

　　　　　To give impetus to the outdoor leisure boom, the government - through the Country Parks Authority, the Urban Council and the Departments of Agriculture and Fisheries, Education and Social Welfare - together with numerous voluntary agencies, provide a wealth of recreational opportunities both within the urban area and in the countryside.

This widespread involvement enables not only the young and the fit, but also the old and the handicapped, to enjoy a fuller life by indulging in some form of outdoor activity.

The only problem now is to keep pace with demand. Much thought is being given to this under the aegis of the Council for Recreation and Sport, which was set up by the government in 1973 to foster and expand the use of recreational and sporting facilities, and to promote safety in outdoor pursuits.

Country Parks

　　　　　To cater for the increasing number of people who spend their leisure time in the countryside, the year-old Country Parks Authority moved into top gear in 1977 by formally designating five country parks covering an area of 4,023 hectares. They are Kam Shan, Shing Mun and Lion Rock in the New Territories, and Tai Tam and Aberdeen on Hong Kong Island. The government plans to designate four parks a year so that, by 1981, there will be about 20 covering virtually all of the territory's 730 square kilometres of countryside. Each park will have its own set of management buildings and staff.

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

Under the Country Parks Ordinance, the Director of Agriculture and Fisheries is the Country Parks Authority and is responsible for the management of country parks. Up to now, the Agriculture and Fisheries Department has managed about a quarter of the scenic countryside for recreational purposes. In 1977, visitors to these areas alone totalled more than 2.5 million. Many others took advantage of the generally un- restricted access to penetrate into remote areas.

　　　　　　Since 1972, the department has been expanding its basic management services by providing picnic sites with tables and benches, litter bins and children's play apparatus and, where it is safe, fireplaces for barbecues. Footpaths are being improved and waymarked, and there are nature trails with guidebooks for people who take their outings seriously. There also are 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 management centres and conducted by patrolling personnel. The department also safeguards the countryside against fire often caused by careless visitors and is responsible for landscape rehabilitation and the protection of flora and fauna.

―

Apart from the country parks, other places of great beauty and interest cater for naturalists on a restricted basis. These include Yim Tso Ha, Hong Kong's largest egretry, and the Mai Po marshes, with their abundant attractions for birdwatchers. Although permits are not required to visit the Tai Po Kau Special Area, a forested nature reserve managed by the Country Parks Authority, fires are forbidden. Picnic areas, however, have been provided along the walks. All wildlife at Tai Po Kau is protected, with the result that visitors can still occasionally catch a glimpse of such rare fauna as the Barking Deer and Chinese Pangolin.

Urban Council

The Urban Council, with its long experience in managing parks, playgrounds, swim- ming pools and beaches, and organising sport and entertainment, has played a vital role in community life. Its plans - both current and future reflect an increasingly sophisticated and innovative approach. New swimming pool complexes at Aberdeen, Hong Kong Island, and at Tai Wan Shan, Kowloon, feature facilities for the handi- capped and heated main pools for year-round use; traditional swings, slides and roundabouts at Tung Lo Wan Garden in Causeway Bay, Hong Kong Island, have been replaced by more imaginative - and safer - 'adventure' playground equipment; and footballers at Morse Park, Kowloon, are playing on artificial turf for the first time. Although the pitch is still experimental, artificial turf probably has a future in Hong Kong. Unlike grass, it requires no maintenance and it is not affected by the vagaries of the weather.

Providing open space for urban dwellers has always been one of the council's main priorities and several important new projects are planned. These include a recreation centre at the Wan Chai reclamation to be completed in three stages starting in 1978; a tennis complex at Wong Nai Chung Gap to be ready in 1979; facilities for pleasure boating at the Wong Nai Chung Reservoir Park; and Stage II of Kowloon Park, which will include sports facilities, a classical Chinese garden, an aviary, a music bowl

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

and a landscaped rest garden. When the mass transit railway vacates the former cricket ground in Central, Chater Garden will feature a promenade complete with landscaped garden, pond and fountains.

　　　　　　Swimming continues to be Hong Kong's favourite form of active recreation. With the majority of suitable beaches already under Urban Services Department manage- ment, greater emphasis is being placed on providing more swimming pools in an effort to relieve pressure on such favourite beaches as Repulse Bay, where crowds of 30,000 are common during the summer.

The opening of swimming pool complexes at Aberdeen and at Tai Wan Shan during 1977 brought to nine the number of pools now operated in the urban areas by the Urban Council. A 10th complex is managed by the Urban Services Department at Tsuen Wan in the New Territories. The Aberdeen and Tai Wan Shan complexes each have eight pools with facilities for diving, training, teaching and paddling.

Over the next four years, 15 more pools will be built - two on Hong Kong Island, two in Kowloon and 11 in the New Territories. The pools on the island will be located at Chai Wan and Wan Chai while those in Kowloon will be at Hammer Hill and Kowloon Park.

　　　　　　The New Territories expansion is part of a major effort to bring recreational amenities in country districts up to the level enjoyed in urban areas. North Kwai Chung, Tsing Yi, Fanling, Yuen Long and Tai Po will each get a pool while Tsuen Wan, Sha Tin and Tuen Mun will get two each.

During 1977, the Urban Services Department took over three more beaches in the New Territories, bringing to 40 the number of beaches under the management of the Urban Council and Urban Services Department. All are provided with life-saving staff and a range of facilities. A new system of warning flags was introduced at all beaches. Plans are in hand to provide additional motorised rescue boats, mechanical beach- cleaning equipment and fibreglass rafts.

　　　　　　Because of the huge attendances at both public pools and beaches an estimated 236 million swam at Hong Kong's 40 gazetted beaches in 1977 - the Urban Council goes to great lengths to promote water safety through learn-to-swim schemes, poster competitions and proficiency programmes. The results are encouraging; drownings at gazetted beaches dropped from 26 in 1976 to 16 in 1977, while those at public pools dropped from two to zero over the same period.

Like swimming, football continues to attract enormous numbers each year and the council's present facilities - two stadia, four complexes, 10 parks with pitches and 101 mini-soccer pitches - are in for a substantial boost. By 1982, the urban area will have the new Ho Man Tin Stadium and 23 additional pitches, of which seven will be full-sized and turfed.

　　　　　　Facilities for athletics, which at present comprise two stadia, five sports complexes and five running tracks, also will be expanded. By 1982, the council will be running three more complexes and double the number of tracks.

Apart from providing venues, the Urban Council plays a major role in promoting sport through competition. During 1977, about two million people took part in such events - a four-fold increase over 1976. Similarly, the council organises many free public entertainment programmes, including fun fairs, puppet shows, popular concerts, Chinese dance and folk-singing, plus annual events like the New Year Fiesta and the

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

Mid-Autumn Carnival. The council's comprehensive summer programme in 1977 included launch picnics, swimming parties and hikes.

To bring more colour and greenery to the crowded urban areas, more than 235,000 trees, shrubs and flowers were planted during the year. The Urban Council and Urban Services Department now manage a total of 663 hectares of public open space - 413 hectares in urban areas and the remainder in the New Territories.

Recreation and Sport Service

Since its inception in October, 1974, the Recreation and Sport Service of the Educa- tion Department has done much to boost healthy leisure activities.

The service, headed by a forward-thinking group of professionals drawn from the department's Physical Education Division, grew out of the urgent need to co- ordinate, direct and plan recreational activities. Although much was being done by both government and non-government bodies, efforts tended to be fragmented and the community's needs were clearly outstripping supply.

In just over three years, the Recreation and Sport Service has done much to make Hong Kong's expressed goal of 'recreation for everyone' a reality.

Staff stationed in 17 districts initiate and develop programmes for all ages and ability groups. Particular emphasis is placed on meeting the needs of young people, especially those living in housing estates or working in factories, and helping the community make maximum use of sporting facilities available in particular areas.

Activities include weekend camps and sports training courses, hikes, launch picnics, sports days for public housing estates, youth dances, large-scale district sports weeks, and recreational programmes for the handicapped and hospital groups. Special emphasis is placed on groups largely neglected in the past; fitness programmes for office workers, Tai Chi classes for the aged and convalescent, sports days for factory workers even games and fitness programmes designed for apprentices.

―

As a measure of its impact, more than 300,000 people took part in Recreation and Sport Service activities in 1977 - and the figure is expected to treble by 1981.

Accordingly, the service's staff has grown from an original nucleus of eight officers to its present complement of 173, including 129 government primary school teachers on temporary secondment. Many of these teachers are expected to be absorbed by the service on a permanent basis in 1978.

　　　　　　A Technical and Planning Section has been set up within the service to plan pro- grammes and to offer technical advice in the provision of more facilities. Further areas for development include an increase in the level of activities for rural areas, new towns and public housing estates; provision for more outdoor pursuits to cope with the increase in leisure time brought about by compulsory holidays; provision for better-qualified personnel to meet the demand for sports officials and to improve the quality of sports programmes; and the introduction of new sports and games.

Apart from organising recreational activities for specific community groups, the service helps governing sports bodies organise courses for training coaches, instructors and sports officials. Other regular programmes include projects aimed at introducing the public to less-popular sports like water polo, diving and five-a-side soccer; organising competitions and tournaments; and providing professional assistance to government departments and voluntary organisations.

COUNTRY PARKS

Lure of the outdoors

Although Hong Kong is regarded as one of the world's great cities, more than 70 per cent of its 1,045 square kilometres is countryside. In an effort to protect this natural asset and to provide more recrea- tional facilities for the territory's 4.5 million people, the government has set up a Country Parks Authority under the auspices of the Agricultural and Fisheries Department. So far the authority has formally designated five country parks covering an area of 4,023 hectares. They are Kam Shan, Shing Mun and Lion Rock in the New Territories, and Tai Tam and Aberdeen on Hong Kong Island. The government plans to designate four parks a year so that, by 1981, there will be about 20 covering virtually all of the territory's 730 square kilometres of countryside. At the end of 1977, plans were well advanced to designate areas westwards from Shing Mun towards Castle Peak; in the vicinity of Bride's Pool; and around the Sai Kung Peninsula. Other parks are planned for Lantau Island which, although sparsely populated, is twice the size of Hong Kong Island. During the past five years, the Agricultural and Fisheries Department has been expanding its management services in the countryside by providing picnic sites with tables and benches, litter bins and children's play apparatus and, where it is safe, fireplaces for barbecues. Footpaths are being improved and sign-posted, and there are nature trails with guide-books for people who take their outings seriously.

Previous page: The sun sets on an Inner Port Shelter seascape adjoining part of the Sai Kung Peninsula scheduled to become Hong Kong's largest country park early in 1978. Top (from left): The opening up of the countryside has generated considerable interest in camping; city dwellers mingle with country folk in the New Territories; picnickers enjoy a barbecue in the Aberdeen Country Park on Hong Kong Island.

Facilities provided by the Agricultural and Fisheries Department have made this part of the Sai Kung Peninsula, near Bride's Pool, a favourite weekend retreat.

This country park, surrounding the forest-clad slopes of Aberdeen Reservoir, provides a recreational

outlet within easy reach of urban areas on Hong Kong Island.

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

In addition, recreation workers and administrators can now take a part-time, eight- month course in recreation management jointly organised by the Extra-Mural Department of the University of Hong Kong and the Recreation and Sport Service. Of all its projects, perhaps the most significant has been the founding of an outdoor recreation centre at the former Sai Kung Army Camp, which was handed over to the service in May, 1976. Overnight accommodation at present is restricted to refurbished Nissen huts, but these will soon be replaced by more comfortable permanent buildings. Despite this, the attractions of a weekend in the countryside, coupled with comfortable bedding, good food and a multitude of activities ranging from swimming to canoeing, roller-skating, archery and hiking - all for a very moderate charge and supervised by skilled instructors - had proved irresistible to more than 22,000 people from all walks of life in the 10 months up to March, 1977.

　　　　　　For the year ending March, 1978, triple that number are expected to have stayed at the Sai Kung centre. All will have followed a carefully-structured programme cater- ing for specific groups, such as youths, factory and office workers, families and the handicapped.

　　　　　　So enthusiastic has been public response to the Sai Kung Outdoor Recreation Centre that what began as an experiment has become the basis of a sizeable programme. Over the next five years, the government plans to provide similar permanent facilities in some of Hong Kong's most scenic areas.

The first will be the Recreation and Sport Service's modern complex at the new Tso Kung Tam Park, in Tsuen Wan. As the government's first custom-built outdoor recreation centre, the Tso Kung Tam complex, due to open in 1979, will be run along similar lines to the Sai Kung centre and those taking advantage of the facilities will be able to take part in the Recreation and Sport Service programme. Features will include a dining hall, a multi-purpose games hall, tennis courts and dormitories for about 320 people. More than that number would defeat the purpose of the project - to provide, among other things, a tranquil respite from the crowded urban environment. The remainder of Tso Kung Tam Park will be managed by the Urban Services Department, which will be providing such facilities as amphi-theatres, water gardens, playgrounds and a picnic area for local residents.

　　　　　　A further 41 holiday camps providing more than 5,000 places are operated by social welfare agencies and several more are being planned by such organisations as the Hong Kong Buddhist Association, the Hong Kong Youth Hostels Association, the Hong Kong Federation of Youth Groups and the Po Leung Kuk.

Summer Youth Programme

The new steps now being taken by the government to establish more recreational facilities supplement an already extensive programme of youth activities. Special attention has been given to developing constructive outlets for youthful energy because half of Hong Kong's population is under the age of 24.

　　　　　　The 1977 Summer Youth Programme, the ninth planned by the Central Co- ordinating Committee for Youth Recreation and implemented through government and voluntary agencies, attracted more than two million participants. Although most were school-children and older students, the programme also produced a growing response from young working people.

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

Despite the immense task of planning some 8,000 events over a three-month period, the Summer Youth Programme offers not only popular activities like swimming, excursions, variety shows and youth dances, but many unusual ones. As a result, youngsters are given the chance to learn archery and canoeing, and to exercise their ingenuity by entering design competitions using only waste materials and photographic portrait contests.

　　　　　　As in past years, camping topped the popularity poll during the 1977 programme, reflecting the enormous attraction of the outdoors for young city-dwellers. Typical of the interest-packed programmes were the Education Department's two four-day secondary schools' outdoor co-educational camps held at Silvermine Bay, on Lantau Island. There, for a fee of only $5 each, 240 pupils from 12 schools were taught map and campass reading, first aid and rope work; taken on hikes and overnight bivouacs; offered a big range of land and water activities, including table tennis, roller-skating, diving and sailing; and provided with all equipment and food.

　　　　　Apart from providing these diversions, an important by-product of the Summer Youth Programme is its promotion of community education at many levels. There are specific courses in youth leadership; instruction in personal safety and care of the countryside are integral features of outdoor activities, and many programmes are designed to foster better understanding between the physically normal and the handicapped.

　　　　　At the end of the programme, three Royal Hong Kong Jockey Club scholarships were awarded to enable the best three youth leaders to attend standard courses at the Outward Bound School. Another three leaders were chosen and sponsored by the Central Co-ordinating Committee for Youth Recreation to take part in the 1978 youth leadership camps to be jointly run by the Armed Services and the Social Welfare Department. The awards were made in recognition of the efforts of the participants and to act as a stimulus to youth programmes.

Hong Kong Youth Hostels Association

　　　　One private organisation active in the outdoor recreation field is the Hong Kong Youth Hostels Association, which was established in 1973 with the primary aim of providing leisure opportunities for the one million youngsters in the 15 to 25 age group.

Secondary aims are, as part of the International Youth Hostels movement, to cater for overseas hostellers passing through the territory and to enable young travellers from Hong Kong to enjoy the thousands of hostels located across the world.

　　　　　Membership, which is open to all Hong Kong residents aged 14 and over, has grown rapidly. The association now operates five hostels - Wayfoong Hall at Plover Cove; Sze Lok Yuen on Tai Mo Shan; Pak Sha O Hostel; Cambrai Lodge at Nim Wan; and Bradbury Hall at Chek Keng.

　　　　　Further sites on Lantau Island and Hong Kong Island are to be developed soon, and the association eventually expects to have a chain of hostels providing more than 1,000 beds.

　　　　　The hostels provide inexpensive yet comfortable overnight accommodation under supervision, enabling all members - especially those of limited means to enjoy healthy recreation. The association particularly tries to foster appreciation and care

OUTDOOR ACTIVITIES: A FULLER LIFE for all

　　　　　of the natural environment, while promoting both local and international travel and friendship.

Outward Bound School

　　　　　The Outward Bound School at Tai Mong Tsai continues to provide Hong Kong with very high standards of character training and development. The school is still expand- ing, both in terms of the number of students attending courses and in the diversity of activities it provides.

　　　　　　One of the school's most important functions continues to be the support it gives the Recreation and Sport Service. This support, subsidised from government funds, enables the Recreation and Sport Service to use the school to supplement its extraor- dinarily wide programme of recreational activities, especially in high-risk sports, such as rock climbing, mountaineering and deep-sea canoeing. The staff of the Outward Bound School are particularly well qualified in these areas.

　　　　　　The school also is continuing to provide more special courses for both the young and the old - from children to business executives and even families. Greater provision is being made for the handicapped and plans are in hand to extend these facilities to include the educationally sub-normal. Special courses are being designed to allow these less fortunate children to develop recreational skills within their limitations.

　　　　　　More sea-based activities are planned for the standard 25-day courses, which are open to any healthy person aged from 16 to 26 and which are strongly supported by business houses, government departments and other organisations. Initially, these courses will be modified to include sail training, but it is hoped that other related activities will be added to build a programme befitting the heritage upon which Hong Kong was built.

Many clubs and associations are active in the recreation field. The range of sporting interests is growing fast and instruction is available in everything from the Korean martial art, Tae Kwon Do, to parachuting. More conventional sports, such as basket- ball, mini-soccer, volleyball and, increasingly, tennis have a large following. Water sports like water skiing and scuba diving also enjoy excellent facilities and standards in sailing are high as was proved by Hong Kong's impressive performance in the 1977 Admiral's Cup.

Programmes for Elderly and Disabled

One growing sector is the community's aged, whose numbers have shown a sharp in- crease in recent years. In 1961, only 2.8 per cent of the population was over 65. By 1976, the figure had risen to 5.5 per cent and it is expected to reach 7.4 per cent by 1986. This trend has not been overlooked. Activities, including excursions, harbour cruises, picnics and regular fitness programmes, are organised throughout the year by the Recreation and Sport Service, whose Tai Chi classes for the elderly alone attracted several hundred participants in 1977. Other programmes catering for the recreational needs of the aged also are provided by the Urban Council, the Social Welfare Department and many voluntary agencies.

Similarly, there is a growing appreciation of the needs of the handicapped, estimated to number about 320,000. The Recreation and Sport Service places special emphasis on designing imaginative programmes for paraplegics, the mentally handicapped, the

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

blind, the deaf and dumb, and tuberculosis and leprosy patients. At the Sai Kung Outdoor Recreation Centre, special swimming facilities are available for the handi- capped and these will be incorporated in future government outdoor recreation centres. Likewise, the Urban Council's recently-opened swimming pool complexes at Aberdeen and Tai Wan Shan have special ramps for wheelchairs and changing rooms reserved for the handicapped. The council plans to provide similar features in other swimming pools.

　　　　　　A wide variety of activities are provided by the Sports Association for the Physically Handicapped, which also sponsors teams to compete internationally. That Hong Kong can produce handicapped young athletes of a high calibre was proved by a woman swimmer who won a bronze medal in the backstroke event at the 1977 International Stoke-Mandeville Games in Britain. In 1976, Hong Kong competitors at the Olympiad for the Physically Disabled, held in Toronto, brought home silver and bronze medals for table tennis. That year also saw the first, highly-successful Hong Kong Special Olympics for the Mentally Handicapped, held at the Aberdeen Sports Ground for participants from 25 schools, workshops and centres.

　　　　　By far the most important project for the disabled, however, will be the new Physically Handicapped and Able-Bodied (PHAB) Camp and Recreation Centre, scheduled to open in October, 1978, at a site near the Pok Fu Lam Reservoir. Spon- sored jointly by the government, the Royal Hong Kong Jockey Club and PHAB, the camp will be the second of its type in the world and will become the permanent head- quarters for the Hong Kong branch of PHAB International. Facilities will include dormitories, a swimming pool, barbecue areas, a riding paddock, stabling for 24 horses and a host of recreational activities ranging from archery to badminton and basketball.

International Prospects

　　　　Hong Kong's governing sports bodies have for many years been striving to reach higher standards in particular sports, and have continued to take part regularly in Olympic, Commonwealth and Asian Games. In recent years, the government has provided assistance through a sports promotion vote, which is administered on the advice of the Council for Recreation and Sport and which helps sporting groups to host or to take part in international competitions. However, their efforts have generally foundered through a lack of facilities and expertise for high-level training and coaching. As a result, the latent ability undoubtedly available has not been developed to the full and Hong Kong's participation in some international events has been more of an exercise in goodwill than one offering any serious competition.

To help remedy the situation, the Jubilee Sports Centre will be built at Sha Tin on land reclaimed by the Royal Hong Kong Jockey Club (RHKJC) at a cost of $25 million. Initially this expenditure will be matched by the government with a further $25 million going towards construction costs. Additional funds will come from the proceeds of the Queen's Silver Jubilee Fund, which the RHKJC will match on dollar- for-dollar basis. Thereafter, the centre will be developed jointly by the government and the RHKJC, with the club meeting recurrent expenditure.

　　　　　The main purpose of the centre will be to provide training and coaching facilities. A team of coaches of international standing will train both promising sportsmen and

OUTDOOR ACTIVITIES: A FULLER LIFE for all

sports-women as well as local coaches. This, in time, should result in vastly-improved standards and boost Hong Kong's chances of making an international name for itself in sport.

　　　　　　As wide a range of sports as possible will be catered for at the centre. Preference will be given to those that enjoy high local participation, are most suited to local condi- tions and whose facilities can be shared. International competitions for sports lacking suitable venues and requiring only limited spectator facilities will be held at the centre. A further attraction will be free admission to people aged under-18. Those over 18 will be charged only a small fee.

In addition to the Jubilee Sports Centre, two stadia of international standard - the Hung Hom Stadium and the Queen Elizabeth Stadium (formerly the Morrison Hill Indoor Stadium) - are being built by the government to provide facilities for more sporting competitions.

Despite the present lack of sporting venues, Hong Kong hosted four regional championships - in basketball, volleyball, badminton and table tennis - during 1977. In addition, Hong Kong teams achieved considerable success in a number of over- seas sporting competitions. The most notable were winning six out of seven trophies at the fourth Commonwealth table tennis championships held in Guernsey; winning the team competition in the 110-kilometre road race in the eighth Asian cycling championships in the Philippines; winning the 1978 Football Association World Cup Asian Group I preliminary round tournament in Singapore; coming third in the Admiral's Cup yachting competition in Cowes; and winning the gold medal in the pairs' competition of the women's world lawn bowls championships in Worthing.

Ocean Park

Another important new addition to the outdoor activities scene is Ocean Park, a major draw for family outings. Developed by the Royal Hong Kong Jockey Club on 68 hectares of land provided as a free grant by the government, this non-profit-making venture has been aimed primarily at attracting local residents. The response so far has been gratifying. During its peak season, attendance often reaches 17,000 visitors on weekends and 8,000 during week days. Now a year old, Ocean Park is still a novel attraction and a long-range development plan will see many additions and improve-

ments.

The magnificent site, on the Brick Hill Peninsula between Aberdeen Channel and Deep Water Bay, offers many attractions unique to Hong Kong. They include a breathtaking ride on the world's largest-capacity cable car system; an innovative children's playground complete with an inflatable 'sea monster', trampolines and tether-ball; a touch-and-feed area where tame llamas, calves, kangaroos and sheep provide a valuable educational experience for children; and the park's three main oceanarium exhibits on the headland site.

At the 4,000-seat Ocean Theatre, the largest of its type in the world, visitors can delight in the skills and antics of performing marine mammals. Wave Cove, a feature unique to Ocean Park, is home to a multitude of aquatic birds and mammals. This simulated rocky coastline, with its man-made waves, represents the first successful intermingling of such widely diverse species as Stellar sealions from Canada, elephant seals and fur seals from South Africa, California sealions and endangered Australian

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

sealions. Several of the birds and mammals in this display have been donated to the park on condition that all information obtained about their development be made available to the scientific community.

Consequently, none of the animals is trained, although they are conditioned to accept certain areas of the display as 'home territory'. The design of the display permits the inhabitants to be seen from three different aspects: above water from an upper deck; at wave level; and underwater. The Atoll Reef, a giant aquarium also designed to simulate natural conditions, allows visitors to view, at four different levels, the full fascination of the underwater world. Some 300 fish species, ranging from 150-kilogram sharks to tiny, brilliantly-coloured coral fish, are on display and illuminated panels detail the ecology of marine life.

　　　　　　Great imagination has gone into the park's lowland site, where an area of rough ground has been transformed into a landscaped showpiece offering such diversions as performing macaws, martial art and dance displays, pop shows and Chinese opera. Night programmes are being introduced slowly and many special events are held throughout the year, including an annual chrysanthemum art exhibition that displays examples of this famous Chinese flower from around the world.

　　　　　　At a serious scientific level, Ocean Park already offers facilities to students. The Botany and Biology Departments of both the University of Hong Kong and the Chinese University of Hong Kong have begun carrying out study projects. Eventually, it is hoped the park will regularly host international meetings on botany and marine life and have its own research laboratories. Ocean Park is able to accept gifts from other countries and to develop exchange programmes with recognised zoological and oceanographic institutions around the world.

New Problems to Overcome

Inevitably, the growth of outdoor recreation at so many levels has brought with it corresponding problems and hazards, notably in the vast new areas of countryside open to the public. In a normal fire season - at least six months of every year - Hong Kong has an average of 500 forest fires and, under worse conditions, about three to six fires a day. The year 1977 was exceptionally bad. Before the season was half over, 1,200 fires - all man-made - had razed 607 hectares of managed land. During one weekend alone, 162 hill fires destroyed 32,000 trees. Most of the fires were caused by careless picnickers and smokers.

The other major problem besetting the Country Parks Authority is litter, which totals almost 500,000 kilograms a year. It has been estimated that each visitor carries an average of 0.23 kilograms of potential litter and, with more than 2.5 million visitors to the parks a year, the need for public co-operation is crucial. In an effort to control these problems, the authority is providing barbecue pits and anyone found lighting fires outside the approved sites is liable to prosecution. Thousands of bright orange litter bins have been placed throughout the parks and the situation seems to be im- proving due, in part, to the vigorous Keep Hong Kong Clean Campaign.

To prevent pollution of a more insidious kind, visitors are encouraged to use public transport to relieve traffic congestion and to minimise the unpleasant effects of exhaust fumes. One bus, it is contended, presents far less of an environmental intrusion than a score of private vehicles. To cater for visitors to the Sai Kung Country Park, due

OUTDOOR ACTIVITIES: A FULLER LIFE FOR ALL

to open in 1978, a double-decker bus service will be introduced to take passengers from Kowloon to the park. Those opting for private vehicles will have to leave them at a car park on the periphery of the gazetted area and use buses for the remainder of the journey.

To Hong Kong's credit, vandalism is not a major problem in the country parks, although both park rangers and police are constantly on the alert for more serious crimes.

Personal safety in a more immediate sense also is becoming increasingly important with the opening up of the countryside. Not all outdoor enthusiasts have had the benefit of courses run by the Recreation and Sport Service, Outward Bound or the Scouts and Girl Guides Associations, and there is considerable public ignorance when it comes to potentially-dangerous activities like hiking and rock climbing. Although search and rescue operations, including those supplied by the Civil Aid Services, are carried out quickly and efficiently, prevention is infinitely preferable to cure.

　　　　　As a result, a media-based compaign organised by the Council for Recreation and Sport will be held early in 1978 to focus attention on the need for safety in outdoor pursuits. A feature of the campaign will be a handbook giving advice on safety

measures.

　　　　　In the meantime, other organisations have become aware of the need for positive action. Among these is the Outward Bound School, which has just published a com- prehensive booklet entitled, Safety in the Hills.

It is surely a sign of the times that such detailed advice is necessary for Hong Kong.

Industry and Trade

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ALTHOUGH the overall rate of growth achieved in 1976 was not sustained in 1977, the manufacturing industry in general continued to perform well in 1977 apart from the textiles sector.

　　　　　The value of total domestic exports in 1977 amounted to $35,004 million - seven per cent more than in 1976.

　　　　　The major factors that have given Hong Kong its international reputation as a leading manufacturing and commercial centre are still at work. Among these are the consistent economic policies of free enterprise and free trade, an industrious work- force, a sophisticated commercial infrastructure, a modern and efficient seaport that includes one of the world's largest container terminals, a centrally-located airport and excellent worldwide communications. There are no import tariffs and revenue duties are levied only on tobacco, alcoholic liquors and some hydrocarbon oils. Tax also is payable on first registration of motor vehicles.

　　　　　Apart from providing the infra-structure - either through direct services or by co- operation with public utility companies and autonomous bodies the government's role in the economy is to ensure a stable framework in which commerce and industry can function efficiently and effectively with minimum interference. The government normally intervenes only in response to the pressure of economic and social needs, and neither protects nor subsidises manufactures.

Industrial Development and Industrial Land

Light manufacturing industries that produce mainly consumer goods predominate in Hong Kong. About 69 per cent of the total industrial workforce is employed in the textiles and clothing, electronics, plastic products, toys and watches, and clocks and accessories industries. These industries accounted for about 76 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 developed, especially in new industrial estates. The site formation work of the first stage of the Tai Po Industrial Estate has been completed and another estate is planned for Yuen Long. The estates are being planned by the Hong Kong Industrial Estates Corporation, which was established by statute on March 1, 1977, to take over the responsibilities of the former Hong Kong Industrial Estate Provisional Authority. Progress on reclamation and site formation at the Tai Po Industrial Estate was on schedule with some 15 hectares of land becoming available for allocation to sub-lessees at the end of the year. A further 30 hectares will be provided on completion of the estate in

INDUSTRY

Spotlight on investment

Hong Kong's unique position at the hub of Asia coupled with such obvious advan- tages as a young and dynamic workforce, excellent worldwide communications and transport facilities, and an efficient bank- ing system has resulted in large-scale

overseas investment in the territory's expanding manufacturing industry. More than 300 factories partly or wholly-owned by overseas companies have been set up at a total cost of more than $2,000 million. The principal industries are electronics and textiles, although more investments are now being made in light and medium engineering fields. The Department of Trade, Industry and Customs is doing much to encourage further industrial investment. New towns are being built in the largely-rural New Territories, north of Kowloon. All are being carefully zoned to ensure a balance between industrial, com- mercial and social requirements. Large areas of industrial land have already been developed in Tuen Mun and in Sha Tin. Besides the new towns, two industrial estates are being established. The first of these, for relatively heavy industries, is taking shape at Tai Po. Some 15 hectares of land has so far become available and a further 30 hectares will be provided on completion of the estate in 1980. Planning for the second industrial estate, to be located at Yuen Long, has already begun.

Previous page: A member of Hong Kong's skilled workforce assembles watch move- ments in a factory set up as a joint venture between British and Hong Kong interests. Left (from top): Watch movements are checked for accuracy; lenses made by a company specialising in the manufacture of photographic products; employees assemble electronic components at a factory operated by an American firm.

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Below: Precision engineering firms provide an essential service to many other industries.

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An employee tends an automatic reflector assembly machine in a plant that produces 30 million torches and lanterns a year.

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　　　　　Well-equipped mechanical and electrical engineering workshops at Hong Kong's major dockyards provide extensive repair facilities for shipping and other industries.

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A worker checks sophisticated machinery installed in an Anglo-French company that produces most of the industrial and medical gases used in Hong Kong.

INDUSTRY AND TRADE

　　　　　　1980. More than 70 applications for sites in the Tai Po Industrial Estate have been received and land has been offered for several projects.

　　　　　　　In the meantime, five more special industry projects were granted land by private treaty to operate on Tsing Yi Island. In February, a site of 12,000 square metres was granted to a firm setting up a machinery plant; another site of 4,790 square metres was granted to a local company to produce textile auxiliary chemicals. Later in the year, sites totalling more than 40 hectares on the west coast of Tsing Yi were granted for three shipyard projects. Land was made available in Kwai Chung for container maintenance and repair servicing, while applications for special industry sites for chlor-alkali manufacture, industrial gas production and food processing were under consideration at the year's end.

　　　　　　　The government also has decided to proceed with the construction of more flatted factory blocks to cater for squatter workshops and small operators in permanent buildings requiring clearance for public purposes. Several sites were selected.

　　　　　　　The average realised price of auctioned industrial sites, mostly located in urban areas such as Yau Tong and Shau Kei Wan, was slightly higher than in the previous year, indicating no slackening of demand for industrial land.

Hong Kong industrialists have responded to 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 com- ponent parts for existing lines are being produced locally and the quality of finished products continues to improve.

Industrial Investment Promotion

The Department of Trade, Industry and Customs continued to work closely with statutory and non-statutory trade and industrial organisations in the overseas promotion of industrial investment in Hong Kong. The major activities in 1977 included a series of industrial investment promotion missions to Australia, Britain, the Federal Republic of Germany, France, Japan, Switzerland and the United States. At the end of the year, there were at least 339 factories in Hong Kong either fully or partly-owned by overseas interests almost 17 per cent more than in 1976. These factories employed 74,758 workers or 9.8 per cent of the total workforce in the manu- facturing industry. The total direct investment involved was about $2,000 million. The main sources of such investment are the United States, Japan, Britain, the Netherlands and Australia. The principal industries involved are electronics and textiles, although there are new investments in fields such as light and medium engineering industries.

Textiles and Clothing

The textiles and clothing industry is Hong Kong's largest, employing about 45 per cent of the total industrial workforce and producing some 47 per cent of total domestic exports. Export performance in 1977 was, however, slack because overseas markets were weak, particularly those in Europe. The cotton spinning and weaving sector suffered most.

Production in the spinning sector was below capacity in 1977 and the output of cotton yarn decreased from 196.1 million kilograms in 1976 to 170.1 million kilograms.

INDUSTRY AND TRADE

　　　　　Production of man-made fibre yarn and cotton/man-made fibre blended yarn was 37.7 million kilograms in 1977, compared with 32.7 million kilograms in 1976, and production of woollen and worsted yarn was five million kilograms, compared with 7.1 million kilograms the previous year. Most of the yarn produced was used by local weavers.

　　　　　　The weaving sector, with 30,229 looms, produced 791 million square metres of woven fabrics of various fibres and blends, compared with 920 million square metres in 1976. As in previous years, the bulk of the production - 88 per cent was of cotton. The denim boom, which was largely responsible for the increase in the produc- tion of cotton fabrics in the first half of 1976, was over but denim remained an im- portant line of production, with the trend going towards higher quality fabrics.

　　　　　　In 1977, the knitting sector exported 7.9 million kilograms of knitted fabrics - of which 38 per cent was of man-made fibres or blended cotton/man-made fibres, and 60 per cent of cotton compared with nine million kilograms in 1976. In addition, a large quantity of knitted fabrics of all fibres was used by local clothing manu- facturers.

　　　　　　The finishing sector provides sophisticated supporting facilities to the spinning, weaving and knitting sectors. It handles a large amount of textile fabrics for bleach- ing, dyeing, printing and finishing. The processes performed include, among others, yarn texturising, multi-colour roller and screen printing, transfer printing, pre- shrinking, permanent pressing and polymerising.

　　　　　　The manufacture of clothing is the largest sector of the textiles industry, employing some 239,058 workers or about 32 per cent of the total industrial workforce. During the year, the clothing sector continued to keep up with the latest trends in fashion. But its performance also was affected by protectionist measures adopted by some importing countries and the general slow-down in world economic growth. Hong Kong's domestic exports of clothing in 1977 were valued at $13,908 million, com- pared with $14,288 million in 1976.

Other Light Industries

The electronics industry maintained its position as the second largest export-earner among Hong Kong's manufacturing industries, and recorded satisfactory growth. Domestic exports of electronic products in 1977 were valued at $4,436 million, a 12 per cent increase on the $3,971 million earned in 1976. The industry comprises 711 factories employing 70,188 workers. It produces a wide range of products, including transistor radios, computer memory systems, electronic calculators, transistors, in- tegrated circuits, semi-conductors, pre-packaged electronic modules, television sets, television games, smoke detectors and burglar alarm systems.

　　　　　　The plastics industry performed well in 1977. Domestic exports of plastic products were valued at $3,235 million, an increase of 28 per cent over the $2,531 million earned in 1976. The industry has 3,995 factories and 78,449 workers. Toys represent the bulk of the items produced and Hong Kong is now the world's largest supplier of toys.

The watches and clocks industry continued to expand in 1977. Production included both mechanical and electronic watches, clocks, watch cases, dials, metal watch bands, assembled watch movements and watch straps of various materials. Domestic

INDUSTRY AND TRADE

exports of these products during the year were valued at $1,881 million, compared with $1,393 million in 1976.

　　　　　　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

Shipbuilding and repairing remained an important heavy industry. Hong Kong ship- yards provide a competitive repair service and many of the smaller shipyards also build a variety of small vessels, particularly pleasure craft and yachts. Plans are in hand for the establishment of several large shipbuilding and repair yards on Tsing Yi Island. The Kwai Chung Container Terminal, which handled the equivalent of 1.2 million 20-foot containers in 1977, together with its complementary repair and manu- facturing facilities, also has enhanced Hong Kong's position as one of the leading ports in Asia.

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

The manufacture of machinery, machine tools and their parts provides useful support to other local industries, and also contributes to Hong Kong's export trade. Of particular importance are blow moulding, injection moulding and extrusion machines of up to 3,396-gram capacity for the plastics industry; power presses; lathes; shapers; printing presses; and textile knitting and warping machines.

External Trade

Total merchandise trade in 1977 amounted to $93,534 million, an increase of 10 per cent over 1976. Imports rose by 12 per cent to $48,701 million; domestic exports by seven per cent to $35,004 million; and re-exports by 10 per cent to $9,829 million. Compared with 1976, the growth rate of domestic exports showed a considerable levelling-off, mainly because of market conditions and increased import restrictions affecting textile sales. Appendices 3 and 4 provide summary statistics of external trade, including an analysis with breakdown by countries and comparisons with previous years.

Hong Kong is almost entirely dependent on imported resources to meet the needs of its 4.5 million people and the requirements of its diverse industries. In 1977, imports of raw materials and semi-manufactured goods totalled $20,391 million, representing 42 per cent of the year's total imports. The main items imported were fabrics of man-made fibres ($1,891 million), iron and steel ($1,369 million), raw cotton ($1,326 million), watches and clock movements and parts ($1,286 million), woven cotton fabrics ($1,267 million) and plastic moulding materials ($1,042 million). Imports of consumer goods valued at $11,436 million represented 23 per cent of total imports. The principal consumer products imported last year included diamonds ($2,060 million), clothing ($952 million), watches ($886 million), and radios, television sets, gramophones, records and tape recorders ($685 million). The total value of foodstuffs imported amounted to $7,541 million or 15 per cent of total imports. Imported foodstuffs consisted mainly of items such as fish and fish preparations ($977 million), fruit ($941 million), meat and meat preparations ($896 million), swine ($895 million)

URBAN COUNCIL | IBRARIES

INDUSTRY AND TRADE

and vegetables ($685 million). Imports of capital goods were valued at $6,500 million or 13 per cent of total imports. Imports of mineral fuels, lubricants and related materials were valued at $2,834 million - six per cent of total imports.

Japan continued to be the principal supplier of imports in 1977, providing 24 per cent of the total. China came second with 17 per cent of total imports and 45 per cent of all imported food and live animals. The United States supplied 13 per cent of total imports. Other important sources were Taiwan, Singapore, Britain, South Korea, West Germany and Switzerland.

Domestic exports consisted almost entirely of manufactured goods. Clothing, the leader, accounted for 40 per cent of total domestic exports valued at $13,908 million. Miscellaneous manufactured articles -- mainly plastic toys and dolls, jewellery and goldsmith and silversmith wares, and plastic flowers were valued at $6,001 million or 17 per cent of total domestic exports. Electrical machinery, apparatus and appliances - mainly transistor radios, electronic components and parts for computers, transistors, semi-conductor integrated circuits and diodes were valued at $5,123 million or 15 per cent of total domestic exports. Textile yarn, fabrics, made-up articles and related products worth $2,649 million represented eight per cent of total domestic exports. Other light manufactured articles, such as watches and clocks, metal products, travel goods, footwear and electronic calculators, also were im- portant exports.

The direction and level of Hong Kong's export trade are influenced principally by economic conditions and commercial policies in its main overseas markets. In 1977, 64 per cent of all domestic exports went to the United States and the European Economic Community (EEC). The United States absorbed 39 per cent. But West Germany and Britain, Hong Kong's second and third largest overseas markets after the United States, both dropped by eight per cent. The decline was mainly caused by a fall in exports of clothing. Other important markets were Japan, Australia, Canada, Singapore, the Netherlands and Sweden. Growth of exports to members of the Organisation of Petroleum Exporting Countries (OPEC) continued in 1977.

Re-exports during the year accounted for 22 per cent of the combined total of domestic exports and re-exports. The principal commodities re-exported were machinery and transport equipment; textiles and clothing; watches and clocks; diamonds; 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, Indonesia, the United States and Taiwan.

International Commercial Relations

Hong Kong's external commercial relations are conducted by the Trade, Industry and Customs 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 textile exports to most major trading partners. All these restraint arrangements come

INDUSTRY AND TRADE

under the umbrella of the Arrangement Regarding International Trade in Textiles, commonly known as the Multi-Fibre Arrangement (MFA). A feature of the MFA is the Textiles Surveillance Body (TSB), which supervises the implementation of the arrangement. A Hong Kong representative sat on the TSB as a full member in 1977. The MFA, to which Britain acceded on behalf of Hong Kong in 1974, expired on December 31, 1977. Long and intense discussions took place during late 1976 and 1977 in Geneva under the auspices of GATT to determine its future. As a result, it was agreed in mid-December, 1977, that the MFA should be extended for four years from January 1, 1978.

　　　　　　As a result of negotiations under the MFA, bilateral agreements were concluded during the year with Austria, Finland, Norway, Sweden, the European Economic Community and the United States. Under the terms of the agreements, exports of certain textiles from Hong Kong to these countries were placed under restraint.

　　　　　　The bilateral agreement between Hong Kong and the European Economic Com- munity, under which the bulk of Hong Kong's textiles and clothing exports to the EEC were subject to restraint, expired on December 31, 1977. Following negotiations under the MFA, a new and comprehensive bilateral agreement was concluded for five years from January 1, 1978.

　　　　　　At the conclusion of the negotiations, the Acting Governor said the outcome had been accepted 'reluctantly and with many misgivings.' He characterised certain aspects on which the EEC had insisted as manifestly unjust.

A new bilateral agreement with the United States has a duration of five years from January, 1978, and covers all of Hong Kong's exports of cotton, man-made fibre and wool textiles to the United States. The existing bilateral agreement with the United States, which was to have expired on September 30, 1977, was extended to December 31 with proportionate adjustments in the restraint limits.

　　　　　　In November, 1976, Canada unilaterally announced that export restraints on several clothing items, which formed the subject of two bilateral agreements concluded in August and October, 1976, would be superseded by global import restrictions. These global restrictions, which covered a wide range of clothing items, remained in force throughout 1977.

　　　　　　A seminar on international trade in textiles with particular reference to the MFA was held in Hong Kong in May, 1977. It was organised by the Commonwealth Secretariat with the co-operation of the United Nations Economic and Social Com- mission for Asia and the Pacific (ESCAP), the United Nations Conference on Trade and Development (UNCTAD) and the General Agreement on Tariffs and Trade (GATT), and was attended by more than 30 delegates from Commonwealth and ESCAP developing countries and territories. The seminar was designed to provide participants with an opportunity of exchanging views and identifying common in- terests and problems.

　　　　　　Work went on during 1977 on the Multilateral Trade Negotiations, which were launched in September, 1973, in Tokyo with the object of further liberalising world trade by removing or reducing tariff and non-tariff barriers. Again, little progress was made for the greater part of the year. In the last quarter, however, there was a significant acceleration in the pace of the negotiations, which are still continuing.

INDUSTRY AND TRADE

Various generalised preference schemes are operated by most developed countries to help the export of goods manufactured by 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 for 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. 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 close competitors.

In late 1977, the EEC announced its generalised preference scheme for 1978, which continues to exclude Hong Kong's leather footwear and what the EEC described as 'extremely sensitive textile products'. Efforts are continuing to have these products included for Hong Kong in the EEC's future schemes.

Documentation of Imports and Exports

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

With Hong Kong's dependence on the export of manufactured goods mostly made from imported materials - and on the substantial re-export trade, a certifica- tion of origin system to meet the requirements of overseas Customs authorities is important. The Trade, Industry and Customs Department issues certificates of origin and accepts responsibility for safeguarding the integrity of the entire Hong Kong certification system. To this end, close liaison is maintained with overseas authorities and with five authorised non-government certificate-issuing bodies - the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce in Hong Kong, the Federation 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 these six organisations during 1977 was estimated at $11,191 million, of which $7,489 million was covered by official certificates.

Form 'A' certificates are issued by the Trade, Industry and Customs Department for exports under claim to preferential entry into countries that 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. 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 covered by Form 'A' certificates in 1977 amounted to $6,981 million.

From July 1, 1977, Britain applied in full the European Economic Community common external tariff to imports from countries other than the EEC states and

INDUSTRY AND TRADE

abolished Commonwealth preference rates of duty. Nevertheless, 19 Commonwealth countries continue to grant Commonwealth preferential rates of duty to Hong Kong products. To support claims to preference for exports to nearly all of these countries, the Trade, Industry and Customs Department issues certificates of origin with an endorsement to show the Commonwealth content of the products. The value of exported goods covered by endorsed certificates of origin and Commonwealth preference certificates in 1977 was $677 million.

An estimated 53.8 per cent of Hong Kong's domestic exports are covered by cer- tificates of one type or another 43.1 per cent of them by government-issued certificates.

During the year, representatives of the Trade Facilitation Committee, an advisory body to the Director of Trade, Industry and Customs and to industrial and other organisations on standardising and simplifying trade documents and trade procedures, attended a series of international trade facilitation meetings. These provided oppor- tunities for Hong Kong to learn from, and exchange views with, national and inter- national bodies in the forefront of developing modern methods and techniques to handle trade documentation and trade procedures.

Trade, Industry and Customs Department

The Commerce and Industry Department was reorganised in July, 1977, and became the Trade, Industry and Customs Department. The responsibilities of the 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. The work of the department is complemented by several autonomous institutions either wholly or partly-financed from public funds.

On matters of policy affecting trade and industry other than textiles, the Director of Trade, Industry and Customs takes advice from the Trade and Industry Advisory Board, of which he is chairman. It comprises 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, also chaired by the director, and is consulted on matters affecting the textiles industry. It met on 58 occasions during 1977. Both these boards are served by specialist committees as the need arises.

　　　　　　The Trade, Industry and Customs Department is made up of two parts the Department of Trade, headed by the Director of Trade, and the Department of Industry and Customs, headed by the Commissioner of Industry and Customs. The department has three overseas offices in Brussels, Geneva and Washington - and

also is represented in the Hong Kong Government Office in London.

The Director of Trade is assisted by a deputy director and three assistant directors, who head two Commercial Relations Divisions and a Textile Controls Division respectively.

　　　　　　The Commercial Relations Divisions are responsible for preparing and conducting trade negotiations with other governments. They also collect and disseminate informa- tion on trade policy measures taken by other countries that may affect Hong Kong, and take part in the activities of international organisations.

INDUSTRY AND TRADE

The Textile Controls Division is responsible for the general licensing of textile exports and implementing restraint agreements reached with importing countries. This involves the calculation and allocation of quotas, as well as associated control procedures.

Steps are being taken to computerise the textile export quota control system to improve operational efficiency. A computer system has been developed and, from January 1, 1978, will run initially in parallel with the manual system for the operation of control procedures on textile exports to the United States.

　　　　　　The overseas offices are almost entirely concerned with commercial relations work. They represent Hong Kong interests on a day-to-day basis and provide information on international developments that may affect Hong Kong.

The Commissioner of Industry and Customs is assisted by the Deputy Com- missioner of Industry and the Deputy Commissioner of Controls and Customs, and three assistant commissioners who head the Industry Division, Trade Division and the Customs and Excise Service respectively.

The Industry Division provides liaison between industry and other government departments, promotes overseas investment in local industry and deals with specific industrial issues, such as infrastructure, special projects and land matters.

The Trade Division is responsible for certification and trade documentation procedures, including an import and export licensing system for commodities other than textiles. It operates a Trade Investigation Branch that undertakes regular inspec- tion of factories and goods, and carries out law enforcement functions, including prosecutions. The division also is responsible for handling trade complaints and controlling 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, although directly responsible to the Director of Trade, Industry and Customs, services both the Departments of Trade and of Industry and Customs. It deals with personnel, financial and general management of the depart- ment, and administrative liaison with overseas offices. The work of the Customs and Excise Service is described in detail in Chapter 10.

Hong Kong Trade Development Council

The Hong Kong Trade Development Council, a statutory body established 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 govern- ment officials and four nominated members. The council is financed by an annual grant from public funds.

Besides its headquarters in Hong Kong, the council maintains overseas offices in 17 key cities - London, Manchester, Frankfurt, Hamburg, Paris, Stockholm, Zurich, Vienna, Milan, Amsterdam, New York, Chicago, Los Angeles, Dallas, Toronto, Tokyo and Sydney. The Paris and Dallas offices were both opened during the year. The staff carried out an extensive trade promotion programme in 1977, organising more than 40 major international projects. These included a highly-successful fashion

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　　　　　presentation in Tokyo that received wide acclaim from the Japanese trade and mass media. Previously, in March, the same garments had been featured at the annual Hong Kong Ready-to-Wear Festival, attended by some 4,000 trade buyers from more than 30 countries. The festival is now recognised as a leading international fashion trade event.

　　　　　　Other promotional projects mounted during the year included Hong Kong's participation in the Nuremburg International Toy Fair, Cologne International House- ware Fair, Cologne International Hardware Fair, Frankfurt International Spring Fair, Spoga Fair, Leipzig International Trade Fair, Foire de Paris, Budapest Autumn Fair, Cairo International Trade Fair, Chicago Consumer Electronics Show, New York Jewellery Fair, American Toy Fair and Chicago National Sporting Goods Exposition.

　　　　　　The Trade Development Council organised business group visits to the Middle East on four occasions. Groups also toured Western and Eastern European countries, Britain, the United States, Canada, Australia, Malaysia, Singapore and Indonesia. The council helped organise two seminars in which local businessmen took part - an import seminar in Sydney and an industrial investment seminar in Zurich.

　　　　　　The Trade Development Council produces four regular publications mainly for circulation overseas. They are the monthly Hong Kong Enterprise, the half-yearly Hong Kong Apparel, the annual Hong Kong Toys and the monthly newspaper The Trader. A documentary video tape designed to promote buyer attendance at the 1978 Hong Kong Ready-to-Wear Festival also was produced during the year.

Hong Kong Export Credit Insurance Corporation

The Hong Kong Export Credit Insurance Corporation was set up by the government in 1966 to help and encourage exporters in overseas marketing ventures. The corpora- tion provides insurance protection for exporters against financial losses they might suffer through not being paid for goods and services supplied on credit to buyers abroad.

　　　　　　The inherent risks borne by the corporation are two-fold: the commercial causes of loss, such as overseas buyers' bankruptcy, insolvency, default or repudiation of contract; and the political causes of loss, such as war, internal strife, import restric- tions and lack of foreign exchange suffered in, or by, the country of destination for Hong Kong goods and services. The government owns the corporation and guarantees all its liabilities.

During the past 11 years, it has not been necessary to fall back on the government's guarantee and the corporation continues to pay its way in a commercial manner, without receiving any subvention or subsidy. Because it is not compulsory for an exporting company to insure its sales abroad, the corporation markets its services like any private enterprise.

　　　　　　The corporation is guided by an advisory board consisting of 12 members who occupy leading positions in the government and in the banking, manufacturing, exporting and insurance communities.

Since it was set up, the corporation has protected exports of goods and services from Hong Kong amounting to some $12.5 million; claims of $35 million have arisen, largely because of the bankruptcy and default of buyers in major and highly-

INDUSTRY AND TRADE

developed markets. The premia received by the corporation continues to average 0.5 per cent of declared and insured exports, and the total received since inception is about $60 million.

The corporation continued to make progress during the year. Close to $2 billion worth of exports were insured under almost 950 current policies representing more than 100,000 shipments. The growing liabilities undertaken required an increase in the statutory guarantee from $1,750 million to $2,000 million. This was approved by the government in August.

　　　　　　There was a reduction during the year in the insured exports of textile products in line with slower demand. Interesting increases were noted, however, in exports on credit terms of footwear, toys and electronics.

During 1977, several policies were issued to protect capital goods exports, and a number of unconditional guarantees were given by the corporation to various banks financing such projects.

For the past eight years, the corporation has been a member of the International Union of Credit and Investment Insurers (The Berne Union), which now has 34 members representing 26 countries. It also is a member of the union's specialised management committee. The 12-member committee met in Hong Kong for the first time in March at the invitation of the corporation.

Hong Kong Productivity Council and Centre

―

The Hong Kong Productivity Council was set up by statute in 1967 to promote the increased productivity of industry in Hong Kong. The council comprises a chairman and 20 members all appointed by the Governor. There are 14 members repre- senting management, labour, academic and professional interests. 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, which offers professional services in various fields to help management attain optimum use of resources - manpower, machines, capital and materials - by introducing up-to-date methods of analysis, and modern techniques and technology.

The centre conducts a wide range of training programmes in industrial technology, management techniques and electronic data processing. It provides industrial con- sultancy, technical help, and computer and research services to clients in industry. The centre also conducts techno-economic studies and innovative development pro- jects, collects and disseminates technical information on industrial productivity, organises industrial exhibitions and overseas study missions, and publishes a monthly bulletin and other technical reports.

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

　　　　　　In keeping with the increasing demand from industry for technological know-how to diversify into more sophisticated product lines, more emphasis has been placed on technological services in areas of training, consultancy and technical help. In 1977, the centre conducted 288 training programmes, with special emphasis on courses designed for specific sectors of industry, and provided 3,500 man-days of consultancy

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　　　　　and technical help. Intensified efforts have been made to promote improved mecha- nisation, appropriate application of modern technology and management techniques through the centre's consultancy and technology services. These have gained increasing acceptance by both local manufacturers and foreign investors.

　　　　　　The centre organised two industrial exhibitions during the year to help keep manu- facturers abreast of the latest developments in production machinery, manufacturing equipment, components and materials, as well as to improve sales contacts between manufacturers and suppliers.

　　　　　　　The 1977 edition of the Directory of Hong Kong Industries, which provides detailed reference to Hong Kong's manufacturing industries, was published with the help of the Census and Statistics Department. A salary report and industry data sheets for major industrial sectors also were published.

　　　　　　As a member of the Asian Productivity Organisation, Hong Kong was represented at the 1977 workshop meeting in Djakarta of heads of national productivity organisa- tions. The centre is a participating organisation of the Asian Network of Industrial Technology Information and Extension (Technonet Asia), set up under the auspices of the International Department Research Centre of Canada (IDRC). The Productivity Centre also is closely associated with a number of other technical and research associ- ations that provides it with technical information and other forms of technical help.

Other Trade and Industrial Organisations

The Hong Kong General Chamber of Commerce, founded in 1861, is the earliest established trade and industrial association in Hong Kong. Its membership, covering all branches of commerce and industry, is represented on a number of government boards and committees. It also is a member of the International Chamber of Com- merce. The chamber is involved in promoting Hong Kong trade and in attracting new industry 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. To encourage the development of better industrial design, the federation 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 Hong Kong Standards and Testing Centre of the federation provides testing, inspection, certification and related services. The centre can test most Hong Kong products. Its facilities include chemical, calibration, electrical, electronic, engineering, food, footwear, gemmological, microbiological, packaging, pharmaceutical, textile, toy and watch testing laboratories. Product-testing at the centre is carried out in line with recognised standards or individual specifications. Its services also include pre- shipment inspection, quality control, production inspection, industrial research, product development and technical consultancy.

　　　　　　　The Chinese Manufacturers' Association of Hong Kong has more than 2,000 mem- bers representing manufacturers and traders of all sizes. The association, a member of the International Chamber of Commerce, has played an important role in the

INDUSTRY AND TRADE

industrial development of Hong Kong. It is active in promoting new product develop- ment and has held an annual Hong Kong New Products Award Competition since 1970. It also takes a keen interest in industrial training and runs a prevocational school.

Consumer Council

The Consumer Council was established by the government in April, 1974, and became a statutory body in July, 1977, with the enactment of the Consumer Council Ordin- ance. It protects and promotes the interests of consumers of goods and services.

　　　　　　The council comprises a chairman and 12 members - all appointed by the Governor from a wide cross-section of the community. The executive director of the council is an ex-officio member. The council maintains an office with a staff of 43 and is financed by subventions from general revenue.

　　　　　　During 1977, the council received 4,594 complaints. There were relatively fewer complaints about excessive pricing and price differentials between shops, but com- plaints about household products especially electrical appliances and services increased. Traders on the whole were co-operative and it was possible to obtain reasonable and satisfactory redress to most consumers with genuine complaints. A number of cases that the council was unable to settle satisfactorily were resolved after consumers were advised to approach the Small Claims Tribunal.

The council's consumer advice centres dealt with about 1,000 inquiries a month in 1977. These centres offer pre-shopping advice on either goods or services or on the provisions of laws that protect the interests of consumers. The advice includes product information; precautions to be taken; pitfalls that may be expected in certain trans- actions; and reference to other government departments or to trade or commercial organisations that might have some specialised knowledge on a particular subject. The centres also receive complaints.

The council conducts regular price surveys and in-depth studies into areas of concern to consumers. During the year, two reports were completed and submitted to the government about hire purchase transactions and the sale and purchase of flats. In June, the council set up two legislation sub-committees to study the safety and health aspects of consumer products. An ad hoc committee formed to study complaints alleging malpractices by travel agents was preparing its final report.

　　　　　　Since November, 1976, the council has conducted tests on various consumer goods to establish their performance, quality and value. This information is published, together with the brand or manufacturer's name, in the council's monthly magazine, Choice. During the year, tests were carried out on kerosene cookers, laundry deter- gents, men's shirts, multiple adaptors, toilet rolls, corn oils, instant noodles, electric fans, sunglasses, toilet soaps and electric water heaters.

The council maintains contact with the local mass media in educating the public on consumer matters and on their rights and responsibilities as consumers. Following the inclusion of consumer education in school social studies syllabuses, the council, in conjunction with the Education Department, produced a teaching kit to help disseminate consumer knowledge among students. In November, the council organised its second annual consumer education seminar, which was attended by some 300 people, including educators and trade representatives.

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　　　　　Apart from co-ordination work with various government departments, the council continued to encourage business and professional associations to establish voluntary codes of practice benefiting 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 United Kingdom Trade Marks Act 1938. The procedure is laid down in the Trade Marks Rules, and the prescribed forms may be obtained free 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 registration. During 1977, 3,555 applications were received and 1,988, including many made in previous years, were accepted and allowed to be advertised. A total of 1,980 marks were registered. The principal countries of origin were:

Hong Kong United States

United Kingdom

Japan

France

466

443

281

195

114

West Germany

Switzerland

Italy Australia

The Netherlands

105

The total number of marks on the register at December 31, 1977, was 32,801.

　　　　　　During the year, the Trade Marks Ordinance and its rules were amended by the Trade Marks (Amendment) Ordinance 1977 and the Trade Marks (Amendment) Rules 1977 respectively to enable provisions of the International Convention for the Pro- tection of Industrial Property (the Paris Convention) to be extended to Hong Kong. Following the provisions of Article 24(1) and Article 24(3)(a) of the Paris Convention, Hong Kong acceded to the International Convention for the Protection of Industrial Property, as revised, from November 16, 1977, and an Order in Council was made in London declaring Hong Kong to be a convention territory for all purposes of the acts relating to patents, designs and trade marks. The order came into effect on November 16, 1977.

Although there is no original grant of patents in Hong Kong, the Registration of United Kingdom Patents Ordinance provides that any grantee of a United Kingdom patent may, within five years from the date of its issue, apply to have his patent regis- tered in Hong Kong. Registration of a United Kingdom patent in Hong Kong confers on the grantee the same privileges and rights as if the patent had been issued in the United Kingdom 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 638 patents were registered during the year, com- pared with 828 in 1976.

Companies

The Companies Registry of the Registrar General's Department keeps records of all companies incorporated in Hong Kong and those of all foreign corporations that 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

INDUSTRY AND TRADE

now replaced by the Companies Acts of 1948 and 1967. However, as a result of im- plementing 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. Considerable progress has been made in drafting a number of bills implementing other recommendations of the committee.

On incorporation, a company pays a registration fee of $300, plus $4 for every $1,000 of nominal capital. In 1977, 6,788 new companies were incorporated - 1,314 more than in 1976. The nominal capital of new companies registered totalled $2,552 million. Of the new companies, 98 had a nominal share capital of $5 million or more. During the year, 1,808 companies increased their nominal capital by amounts totalling $5,310 million, on which fees were paid at the same rate of $4 per $1,000. At the end of 1977, there were 49,896 local companies on the register, compared with 43,877 the previous year.

During the year, two ordinances dealing with company law were enacted. The Companies (Amendment) Ordinance 1977 is referred to later in this chapter under the heading, 'Bankruptcies and Liquidations'. The Companies (Amendment) (No. 2) Ordinance 1977 introduced a system for reserving, for a period of three months, the names of proposed new companies and name changes of existing companies. This replaced the previous non-statutory reservation system. A fee of $20 is payable for each inquiry about a proposed name. The legislation was brought into force in December, 1977.

　　　　　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, 120 such companies were registered and 51 ceased to operate. At the end of 1977, 1,009 com- panies were registered from 48 countries, including 257 from the United States, 128 from Britain and 116 from Japan.

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 Companies Ordinance or the Fire and Marine Insurance Companies Deposit Ordinance. In addi- tion to the filing of annual accounts, these ordinances require deposits to be made. with the Registrar of Companies, unless the company is exempt. This exemption depends on the obtaining of a certificate from the insurance division of the Department 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 Commonwealth. There are 316 insurance companies, including 147 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.

　　　　　　During the year, the fees payable in connection with these functions were increased by the Registered Trustees Incorporation Ordinance (Amendment of Second Schedule)

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　　　　　Order 1977, the Limited Partnerships (Amendment) Ordinance 1977 and the Money- Lenders (Registration) (Amendment) Regulations 1977 respectively.

Bankruptcies and Liquidations

　　　　　In Hong Kong, the number of business failures leading to formal insolvency pro- ceedings in court is always comparatively small in relation to the total number of businesses closing down. During the year, there were 67 petitions in bankruptcy and 82 petitions for the compulsory winding-up of companies. The court made 39 receiving orders, two administration orders, one order in aid and 70 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 1977 amounted to about $28 million. In addition to these compulsory windings-up, 396 companies went into voluntary liquidation - 372 by members' voluntary winding-up and 24 by creditors' voluntary winding-up.

　　　　　　The Bankruptcy (Amendment) Ordinance 1977 amended the provisions of the principal ordinance relating to the order in which debts are paid from the property of a bankrupt, and the Companies (Amendment) Ordinance 1977 introduced similar amendments for the winding-up of companies. These ordinances also raised the limit on priority debts for salaries, wages and severance payments to $8,000 for any one creditor.

The Companies (Winding-up) (Amendment) Rules 1977 were made by the Chief Justice on August 26. These rules made a number of administrative amendments to the principal rules, including increasing from $300 to $1,000 the deposit made by a petitioner with the Official Receiver. The amendments also introduced a new rule dealing with the administration of small liquidations.

Financial Structure

THE independence of Hong Kong's monetary system became more firmly established during the year. As a result of policies adopted by the United Kingdom Government to reduce the role of sterling as a reserve currency, Hong Kong's official holdings declined to the point where they ceased to be a dominant element in official external

reserves.

At the same time, financial institutions were becoming accustomed to operating in an environment of floating exchange rates, while the provision of banking and other financial services throughout South-east Asia by institutions established in Hong Kong continued to expand rapidly.

　　　　　　　To reflect these trends, a Monetary Affairs Branch was created within the Govern- ment Secretariat at the end of 1976 to bring together those central banking functions performed by the government - the management of the government's external assets, its borrowings, intervention in the foreign exchange market and policy towards the development of the financial sector. The Office of the Commissioner of Banking remains a self-contained unit within the branch, exercising statutory functions in connection with banks licensed under the Banking Ordinance and other financial institutions registered under the Deposit-Taking Companies Ordinance.

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, which are submitted to the Legislative Council each year. 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 $902 million for the 1976-7 financial year.

　　　　　　The Urban Council, operating through the Urban Services Department, also is 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 is responsible for the provision and management of public housing and its executive arm is the Housing Department. Under the Housing Ordin- ance, the authority is required to ensure that its income - derived mainly from rent

FINANCIAL STRUCTURE

and other sources - is sufficient to meet its recurrent expenditure on the management of public housing estates. In providing new housing estates under the government's public housing programme, the authority is provided with land - the value of which is reflected in the authority's balance sheet as a government contribution - and, where its cash flow is inadequate to meet construction costs, the authority may borrow from the Development Loan Fund. The Housing Authority also is the government's agents for squatter control, the clearance of squatters from Crown land required for develop- ment and the development of temporary housing areas. The cost of these activities is financed from general revenue.

Surpluses and Deficits

A small deficit in the government's accounts was returned in the first financial year after World War II. Subsequently - with the exception of 1959-60, 1965-6 and 1974-5 when there were deficits of some $45 million, $137 million and $380 million respec- tively - a series of surpluses, some of them substantial, were accumulated in the years up to, and including 1976-7. Such reserves are required to secure the government's contingent liabilities, to enable seasonal deficits to be met, and to ensure that the government is able to cope with short-lived tendencies for expenditure to exceed revenue or for revenue yields to fall below expectations.

This accumulation of reserves was achieved partially through a strong growth in revenue. Particularly during the earlier years, this was done without appreciable in- creases in tax rates because of exceptionally rapid increases in population and, con- sequently, in economic activity. Revenue expanded more than 22 times from $309 million in 1951-2 to $6,898 million in 1976-7. The rate of increase was affected by variations in such factors as the economic situation and inflows of capital, and by the introduction of an appropriations-in-aid system in 1976-7 whereby certain depart- mental receipts, recovered by departments in the process of providing services to the public, were used to offset approved expenditure. The upward trend has, however, been strong and continuous. In expenditure, there was inevitably a time-lag before the government could develop 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.

The pace of economic growth gave rise to surpluses from 1969-70 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 during 1975-6 and 1976-7, growth resumed and the accounts again returned to surplus. In 1976-7, revenue at $6,898 million (compared with the original estimate of $6,197 million) exceeded net expendi- ture (actual $5,996 million - original estimate $6,552 million) for the year by $902 million. Revenue and expenditure for the years 1975-6 and 1976-7, together with the estimates for 1977-8, 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 1977-8, the estimated revenue is $8,274 million and expenditure $8,245 million, giving an estimated surplus of $29 million for the year.

FINANCIAL STRUCTURE

Assets, Liabilities and Funds At March 31, 1977, net available public financial assets were $3,713 million, while the public debt was equivalent to some $396 million - about $88 per head of population. Indebtedness decreased some $7 million during 1976-7, principally due to the repay- ment of borrowings under the Asian Development Bank loan towards the construction of a seawater desalting works near Castle Peak in the New Territories, which is repayable over 10 years from January, 1976, and under the loan from Lloyds Bank International Limited, which is repayable by five equal annual tranches beginning in August, 1976. The issue of $250 million of government bonds made in 1975-6, on which interest at the rate of 6 per cent is payable half-yearly in May and November, is repayable at par in November, 1980. The 34 per cent 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 January, 1978. Its sinking fund stood at $35.7 million on March 31, 1977.

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, financed mainly by transfers from general revenue, interest payments and capital repayments, totalled $1,056.9 million at March 31, 1977. 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 9,406 students at universities, the polytechnic and a post-secondary college received interest-free loans totalling $27.9 million. At March 31, 1977, liquid assets totalled $239.2 million and outstanding commitments $334.9 million.

The Lotteries Fund, established in 1965, is mainly for financing by grants and loans the development of social welfare services. The fund started with a transfer from general revenue of $7.4 million and an additional $82.6 million was credited between 1965 and 1977 through the net proceeds of government lotteries, the Royal Hong Kong Jockey Club lotteries and the auction of special vehicle registration numbers. At March 31, 1977, grants and loans amounting to $67.9 million had been approved. A further sum of $1.1 million in unclaimed prizemoney was held on deposit.

Audit of Public Accounts

The audit of all government accounts and those of more than 80 statutory and non- statutory funds and public bodies, as well as a review of the accounts of the multi- farious subvented organisations operating in Hong Kong, 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 direction or control of any other person or authority, and 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 duties are charged on

FINANCIAL STRUCTURE

four groups of commodities - alcoholic liquors, tobacco, certain hydrocarbon oils and methyl alcohol - irrespective of whether they are imported or manufactured locally.

　　　　　　On liquors, the basic duty rates range in equivalence from $0.60 per litre on Hong Kong-brewed beer to $27.06 per litre on brandy. On tobacco, rates range in equival- ence from $8.16 per kilogram on Chinese-prepared tobacco to $43.65 per kilogram on cigars. Rates on hydrocarbon oils are equivalent to $0.35 per litre on diesel oil for road vehicles and $0.48 per litre on motor and aircraft spirits. The rate for methyl alcohol is equivalent to $2.18 per litre.

　　　　　　All firms engaged in the import, export, manufacture or sale of dutiable commodi- ties 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 is determined by resolution of the Legislative Council and, for the year beginning April 1, 1977, the urban rate was set at 11 per cent, with lower percentages applicable in the New Territories. This rate is apportioned as 74 per cent to general revenue and 4 per cent to the Urban Council to finance many of its activities. Urban Council rates are not levied in the New Territories because the council does not operate there. Some areas in the New Territories have not been rated, but it is government policy to bring all developed and developing parts into assessment by a phased programme. The fourth phase of this programme was assessed to rates with effect from April 1, 1977, and the whole programme is scheduled for completion in 1980.

　　　　　　New valuation lists are prepared periodically as ordered by the Governor. This enables all assessments to be reviewed and rateable values updated in accordance with current market levels. The last review was carried out in 1976-7 and new valuation lists came into force on April 1, 1977. Having regard to the movement of rentals since the previous lists were prepared, the review resulted in considerably increased rateable values for almost all rated property. To cushion the impact on ratepayers, the per- centage rate charges were substantially reduced and a scheme of rate reliefs intro- duced, whereby no ratepayer will pay in the years 1977-8 and 1978-9 more than 331 per cent of the rates payable in the immediately preceding year. In the case of pre-war rent-controlled properties, the scheme will extend beyond 1978-9 to alleviate the greatly increased rate charges payable in many instances, due to a change in the basis of assessment.

　　　　　　Rates are payable quarterly in advance and the law imposes penalties for late pay- ment. Exemptions from rates are few. But the government generally provides financial assistance to non-profit-making educational, charitable and welfare organisations towards the payment of rates where the premises they occupy are being run to further an approved target or policy. No refund of rates is made in the case of vacant domestic premises, but half of the amount of rates paid may be refunded where non-domestic premises are vacant.

The estimated revenue from rates for 1977-8 is $1,057 million, of which about $336 million will go to the Urban Council.

Internal Revenue

FINANCIAL STRUCTURE

Tax is levied only on specified sources of income arising in or derived from Hong Kong under the Inland Revenue Ordinance, namely, property, business profits, inter- est and salaries. The standard tax rate of 15 per cent has been in force since April 1, 1966.

　　　　　　Property Tax is charged at the standard rate on the owner of land and/or building in Hong Kong, but there are exemptions, including property occupied by the owner for his residential purposes, vacant premises and property in certain undeveloped parts of the New Territories. Properties owned by corporations carrying on business in Hong Kong are exempted from paying Property Tax because profits from their ownership are chargeable to Profits Tax.

Interest Tax is charged at the standard rate on interest arising in or derived from Hong Kong. This is basically a withholding tax deducted at source unless the interest 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 at a rate not exceed- ing 1 per cent a year by the government and licensed banks and 34 per cent by public utilities, is exempt. These rates have been effective from January 14, 1977, and March 1, 1975, respectively.

　　　　　　Profits Tax is charged on profits arising in or derived from Hong Kong from a trade or business carried on in Hong Kong. Profits of unincorporated businesses are chargeable to tax at the standard rate of 15 per cent and corporations at 17 per cent for the year of assessment beginning April 1, 1976, and onwards. Generally, all expenses, to the extent to which they have been incurred in the production of profits chargeable to tax, are deductible. Charitable donations up to a maximum of 10 per cent of net assessable profits also are deductible.

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 $10,000 for the taxpayer; $10,000 for his wife; $4,000 for his first child; $3,000 for his second child; and $2,000 for his third child. The allowance for the fourth to sixth child is $1,000 each and, for the seventh to ninth child, $500 each. From the year of assessment beginning April 1, 1976, single and married taxpayers are given an additional personal allowance of $2,500 and $5,000 respectively, but this allowance will be reduced by 15 per cent of the amount by which the taxpayer's income exceeds the supplemented allowance until the point is reached where the entire additional allowance disappears. Apart from the deduction of ex- penses necessarily incurred in production of the income and charitable donations up to 10 per cent of assessable income, there are no other allowances.

　　　　　　　A further feature of the Inland Revenue Ordinance is the right of a taxpayer to elect to be assessed on his total Hong Kong income under 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 allowances and sliding scale of tax as would be applicable for Salaries Tax purposes. A set-off of tax paid on the individual sources of income is allowed.

It is estimated that taxes on earnings and profits will yield $2,926 million in the 1977-8 financial year.

FINANCIAL STRUCTURE

　　　　　　Estate Duty is imposed on that part of a deceased person's estate situated in Hong Kong. The rates of duty charged range from a minimum of seven per cent on estates valued between $400,000 and $500,000 to 18 per cent on those in excess of $3 million. Estates valued at less than $400,000 are exempt from duty. The yield for the year ended March 31, 1978, is estimated at $88 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, 1978, is $445 million.

　　　　　　Entertainments Tax is imposed on the price of admissions to race meetings and cinemas at rates varying with the amount charged for admission. This averaged about 28 per cent in the case of race meetings and eight per cent in the case of cinemas. The estimated yield for 1977-8 is $24 million.

　　　　　　Betting Duty is imposed on bets made on authorised totalisators or pari-mutuels, on proceeds of lotteries conducted by the Hong Kong Lotteries Board and on contri- butions towards authorised cash sweeps. The rate of duty is charged at either 7 per cent or 11 per cent, depending on the type of bet placed, and at 25 per cent on cash sweep contributions and proceeds of lotteries. 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, 1978, is $275 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 paid by guests. For the 1977-8 financial year, this tax is estimated to yield $18 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 this fee is granted where the business is small. The total income from these fees, service charges for copies of documents and other fees for the 1977-8 fiscal year is expected to be $33 million.

Monetary System

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Bank notes are issued by three commercial banks the Hongkong and Shanghai Banking Corporation, the Chartered Bank and the Mercantile Bank. Coins of $5, $2, $1, 50 cents, 20 cents, 10 cents and five cents and currency notes of one cent denomina- tion are issued by the government. The second of a series of $1,000 gold coins to commemorate the Chinese Lunar New Year was issued early in 1977. The total currency in nominal circulation at the end of 1977 and details of its composition are shown in Appendix 11.

　　　　　　　Although Hong Kong has no central bank and its bank notes are issued by com- mercial banks, they are backed by the Exchange Fund, a government account set up in 1935 when the Hong Kong dollar ceased to be based on silver. Apart from small authorised issues, which are limited to $95 million and are issued against securities of a kind approved by the Secretary of State and deposited to the order of the govern- ment, bank notes may only be issued against holdings of certificates of indebtedness, which are liabilities of the Exchange Fund. These certificates are non-interest-bearing

FINANCIAL STRUCTURE

and are issued and redeemed as the value of notes in circulation rises and falls. The fund receives and makes payment in Hong Kong dollars through accounts it holds with the note-issuing banks. The fund bears the cost of maintaining the note issue except for a small proportion, equivalent to the proportion of authorised issues to the total note issue, which is met by the note-issuing banks. The bulk of the fund's resources are held in foreign currencies and are employed in a variety of deposits and investments denominated in several currencies. Until 1971, virtually all of those funds and those held by the general account as well, were in sterling. But since then, sterling holdings have been progressively diversified and, by the end of 1977, sterling accounted for less than 15 per cent with the balance in other major currencies. It is these resources that are used by the government to influence, when thought appropriate, the foreign exchange value of the Hong Kong dollar.

　　　　　　Since April 1, 1976, the fund also has held the bulk of the foreign exchange assets previously held in the general account and all the assets of the Coinage Security Fund. These 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 now accrue to the Exchange Fund, which was designed for the purpose of regulating the exchange value of Hong Kong currency. Consequently, the general revenue balance in the government's statement of assets and liabilities normally only reflects the difference between the government's cash receipts and pay- ments. It also is proposed to transfer the Hong Kong dollar balances in the general account, apart from small working balances, to the Exchange Fund. After this transfer, all the government's financial assets will be held by the fund, which will effectively become banker to the Treasury.

　　　　　　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 conjunction with the note-issuing banks. It weakened after the devaluation of the pound in 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 United States 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.

　　　　　　In the first quarter of 1977, the Hong Kong dollar continued to strengthen and appreciated against most currencies, despite some official intervention. Since then, however, with economic prospects not so favourable as in the previous year, the dollar weakened. At the end of 1977, the overall value of the Hong Kong dollar against the currencies of the territory's major trading partners, as measured by a trade-weighted index, was some seven per cent lower than at the end of 1976 and one per cent higher than in the period immediately before the currency floated.

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

FINANCIAL STRUCTURE

Banking

The Banking Ordinance provides for the supervision and inspection of banks by the Commissioner of Banking, and obliges banks to meet certain minimum requirements on capital and liquidity. At the end of 1977, there were 74 licensed banks with 803 banking offices.

Bank deposits increased during 1977 by 20 per cent to $53,019 million at December 31. Loans and advances increased by 30 per cent to reach $55,649 million. Banking statistics for the past three years are shown in Appendix 12.

　　　　　　At the end of 1977, there also were 100 representative offices of foreign banks which, where necessary, were permitted to use the word 'bank'. In addition, 201 companies were registered under the Deposit-taking Companies Ordinance, which allows them to take deposits from the public under certain restricted conditions. These companies include branches and subsidiaries of foreign banks, as well as other non-bank financial institutions engaged in various types of business.

Securities

　　　　　Considerable progress was made during the year towards the formation of one stock exchange in Hong Kong in place of the existing four exchanges. In May, 1977, a Working Party on Unification was formed at the request of the four stock exchanges. The Commissioner for Securities, at the invitation of the exchanges, chaired the working party, which has met regularly. At the first meeting in May, representatives of the four exchanges accepted that the aim of the working party was 'to agree on a schedule of steps (on an agreed timetable) to bring about the unification of the stock exchanges into one approved exchange'. In the last part of the year, there were talks between the Far East Exchange Ltd. and the Kowloon Stock Exchange Ltd. on a possible merger. The plan is still under discussion.

The commissioner's staff continued to scrutinise financial transactions involving securities and to monitor unusual movements in share prices, instituting further in- quiries where appropriate.

　　　　　　The introduction of the Securities (Amendment) Ordinance 1977 saw, among other things, the establishment of the Insider Dealing Tribunal.

It is now the function of the Office of the Commissioner for Securities to investigate matters that may involve insider dealings in securities to establish whether there is a prima facie case to be examined by the tribunal on reference from the Financial Secretary through the Securities Commission.

　　　　　　During 1977, there were 14 takeovers or mergers of companies listed on the stock exchanges, of which eight were achieved by schemes of arrangement. The Hong Kong Code on Takeovers and Mergers, which was drafted in 1975 and which does not have the force of law but has the support of those professionally involved in the securities industry, was subject to two amendments in June, 1976, and in September, 1977. It is now being reviewed and it is intended to publish a completely revised version.

　　　　　　The Office of the Commissioner for Securities has under preparation a Hong Kong Code on Unit Trusts and Mutual Funds. The drafting of this code, a task in which the unit trust industry gave invaluable assistance, had almost been completed by the end of 1977. Compliance with the code will be a necessary condition of granting authori- sation to a unit trust or mutual fund: it will be administered by a Committee on Unit Trusts, under the chairmanship of the Commissioner for Securities.

FINANCIAL STRUCTURE

　　　　　　The combined Stock Exchanges Compensation Fund - established to compensate those who suffer financial loss as a result of defaults by stockbrokers - amounted to $24.7 million at December 31, 1977. (Up to the end of 1977, no payments had been made from this fund.) Deposits lodged by dealers other than stockbrokers stood at $5.8 million. The purpose of the latter deposits is to give limited protection to investors against a defaulting dealer who is not a member of a stock exchange. Unlike the Compensation Fund, however, the dealers' deposits are not pooled. Both funds showed a surplus in the fiscal year to March 31, 1977. Some $2.3 million was subse- quently distributed proportionately to the four stock exchanges in respect of the surplus on the Compensation Fund, and some $555,000 was paid out to depositors in respect of the surplus on the Dealers' Deposit Fund.

　　　　　　At the end of 1977, 2,110 people were registered under the Securities (Dealers, Investment Advisers and Representatives) Regulations 1974. They included: 91 cor- porate dealers; 1,013 individual dealers, including 923 stockbrokers on the four stock exchanges; 47 corporate investment advisers; 81 individual investment advisers; 816 dealers' representatives; and 62 investment representatives. During the year, 20 corporations were declared exempt dealers and seven corporations were declared exempt investment advisers.

　　　　　　The turnovers for 1977 reported on the four exchanges were: Far East Exchange, $2,898.79 million; Hong Kong Stock Exchange, $1,621.08 million; Kam Ngan Stock Exchange, $1,575.40 million; and Kowloon Stock Exchange, $31.48 million. The total of $6,126.75 million is a decrease of 53.43 per cent on the previous year's figure.

Commodities Trading

Hong Kong advanced a step further in stature as a financial centre when the Hong Kong Commodity Exchange began business on May 9, 1977. The Hong Kong Com- modity Exchange Ltd. is the only company granted a licence to operate a commodity exchange in Hong Kong since the enactment of the Commodity Exchanges (Prohibi- tion) Ordinance in 1973. The contracts executed on the commodity exchange are cleared by the International Commodities Clearing House (HK) Ltd. One of the unique features of the commodity exchange is that it has procured the establishment of a guarantee corporation to guarantee the fulfilment of futures contracts in the event of default by either of the two parties to such contracts. Membership of the exchange is of two types - full membership and trade affiliated membership.

The first market operated by the commodity exchange trades in American or American-type raw cotton of any original of middling grade and 2.54-centimetre staple length. The second market, which began business in November, trades in sugar. The Commodities Trading Ordinance, Cap. 250, enacted to supervise the activities of the commodity exchange and to regulate the trading in commodity futures contracts in Hong Kong, has been brought into force with the exception of Section 50, which requires dealers to lodge annual accounts. Under Part II of the ordinance, the Com- modities Trading Commission - a supervisory body of seven people has been established. The Commissioner for Securities also has been appointed the Commis- sioner for Commodities Trading. At the end of 1977, 486 people were registered under the Commodities Trading (Dealers, Commodity Trading Advisers and Representa- tives) Regulations 1976. They included 117 commodity dealers (40 corporate dealers

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FINANCIAL STRUCTURE

337

and 77 individual dealers), of which 38 corporate dealers and 10 individual dealers were shareholders of the Hong Kong Commodity Exchange; 358 commodity dealers' representatives; three corporate commodity trading advisers; five individual com- modity trading advisers; and three commodity trading advisers' representatives.

The Commodity Exchange Compensation Fund, established to compensate those who suffer pecuniary loss as a result of default by shareholders of the exchange, amounted to $2.6 million at the end of the year.

　　　　　　Deposits lodged by dealers other than those members of the Hong Kong Commodity Exchange stood at $300,000. The purpose of the deposits is to give limited protection to investors against any default by dealers who are not members of the Hong Kong Commodity Exchange.

Gold and Silver Exchange

The 67-year-old Chinese Gold and Silver Exchange Society has emerged as one of the world's largest gold markets in recent years. It is engaged in active forward trading and arbitrage transactions. Many bankers, gold dealers and financiers from all over the world have established either a branch or a representative's office in Hong Kong to take part in the bullion trade.

The society has recently redeveloped an old four-storey building in Mercer Street, where the trading hall is situated, to cope with the increasing trade.

Employment

LABOUR legislation has been expanded and improved significantly over the past 10 years with the passing of 137 laws. To further improve the safety and welfare of workers, and their conditions of employment, 13 items of legislation were enacted during 1977. Legislation was enacted to allow, from January 1, 1978, seven days' paid annual leave to all employees covered by the Employment Ordinance.

　　　　　The Employment Ordinance also was amended to increase sickness allowance and severance pay. To provide further wage protection, a vicarious liability was imposed on principal contractors in the building and construction industry for outstanding wages to workers employed by sub-contractors.

　　　　　The Factories and Industrial Undertakings Regulations were amended to double the penalty for employing child labour. Two sets of safety regulations were introduced during the year, one to control the use of cartridge-operated fixing tools and the other to protect workers' eyes.

　　　　　Priority for workmen's compensation and wages claims in lieu of notice to rank equal with wages and severance pay over secured debts in the winding-up or bank- ruptcy of a company was provided by amendments to the Companies Ordinance, the Bankruptcy Ordinance and the Workmen's Compensation Ordinance.

　　　　　The Workmen's Compensation Ordinance was amended to require employers to pay the medical expenses of workers injured on the job.

　　　　　Provisions of the Trade Unions Ordinance covering office holders also were sim- plified.

　　　　　Industrial workers' wages continued to increase during 1977 following the recovery from the 1974-5 worldwide recession. By September, average daily wages - excluding fringe benefits - had increased by 38 per cent on the base period of July, 1973, to June, 1974. During the same time, the cost-of-living index went up by 18 per cent. The index of real average daily wages was 117, compared with the base index of 100 for the July, 1973, to June, 1974, period.

　　　　　In December, 1977, a total of 755,108 people were engaged in 37,568 establishments in the manufacturing sector. Some 353,734 - the largest section of the labour force - were engaged in weaving, spinning, knitting, and manufacturing garments and made-up textile goods. The electrical industry and the plastics industry were the next two largest employers. Details of the distribution of manufacturing establishments, 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 industrial development in the New

EMPLOYMENT

　　　　　Territories is increasing, particularly in the new towns of Tsuen Wan and Kwai Chung. Although most workers are engaged in modern manufacturing processes, traditional village industries still provide employment.

The 1976 by-census recorded a total working population of 1,867,480 - 1,209,590 males and 657,890 females. The distribution of the workforce was: agriculture, forestry, hunting and fishing, 48,500; mining and quarrying, 1,020; manufacturing, 845,920; electricity, gas and water, 9,710; construction, 104,040; wholesale and retail trade, and restaurants and hotels, 361,680; transport, storage and communication, 136,180; financing, insurance, real estate and business services, 62,090; community, social and personal services, 284,970; and unclassifiable activities, 13,370.

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 generally are paid less when working on a time basis. Wages may be calculated on an hourly, daily or monthly basis or, alternatively, on piece rates, when they are customarily paid every 10 or 15 days.

　　　　　　Daily wages for the manufacturing industries in September, 1977, ranged from $24 to $70.30 for skilled workers; $17 to $48.90 for semi-skilled workers; and $15.70 to $34.20 for unskilled workers. Many employers provide workers with free accom- modation, 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 households spending $400 to $1,499 a month. In December, 1977, this index stood at 117 (see Appendix 16). A consumer price index (B) also is compiled to show the effect of price changes on households spending $1,500 to $2,999 a month. Under the Factories and Industrial Undertakings Ordinance, and its regulations, women and young people aged 14 to 17 are permitted to work a maximum of eight hours a day and 48 hours a week. After not more than five hours' continuous work, women and young people aged 16 and 17 must be given at least a half-hour meal and rest break and young people aged 14 and 15 at least a one-hour break. Neither group can work more than six days a week. In addition, the regulations limit overtime for women to 200 hours a year. On January 1, 1977, new legislation came into effect to reduce overtime for young people aged 16 and 17 by stages of 50 hours a year until its abolition in 1980. Overtime employment for young people aged 14 and 15 has always been prohibited.

No child under the age of 14 is allowed to be employed in industry. In addition to 117,202 regular day and night inspections of industrial undertakings by the Labour Inspectorate, three special campaigns against child employment were mounted in 17,421 factories during the year. A total of 459 cases involving 568 children were brought before the courts.

　　　　　　Women and young people are prohibited from working at night, underground or in dangerous trades. Since 1970, a number of large factories - mostly those engaged in cotton spinning - have been granted special permission to employ women at night, subject to stringent conditions. This concession is reviewed annually.

EMPLOYMENT

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 in- dustry 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 1977, which came into effect on January 7, increased the daily rate of sickness allowance from half the normal wages to two- thirds. It also reduced the qualifying period from three months to one month, and increased the maximum possible accumulation of paid sickness days from 24 to 36 days.

　　　　　The Employment (Amendment) (No. 2) Ordinance 1977 increased the rate of severance pay from a third to half a month's pay for each year of valid service for monthly-rated employees and from 10 to 13 days' wages for daily-rated and piece- rated employees. The amendment ordinance, effective from June 3, 1977, also provides for counting valid service retrospectively to August 23, 1966 an increase of three years.

　　　　　The Employment (Amendment) (No. 3) Ordinance 1977 stipulates that, from January 1, 1978, all employees covered by the ordinance are entitled to seven con- secutive days' annual leave with pay after 12 months' employment under a 'continuous contract' with the same employer. At the request of the employee, four consecutive days of paid annual leave should be granted at one time, and the remaining days either consecutively or separately at another time within the relevant 12-month period. Payment in lieu for any part of annual leave is only allowed on termination of em- ployment.

　　　　　The Employment (Amendment) (No. 4) Ordinance 1977, effective from November 1, 1977, provides for the protection of up to two months' wages for employees of sub-contractors and nominated sub-contractors in the building and construction industry by imposing a vicarious liability on all principal contractors, nominated sub- contractors and superior sub-contractors in default of payment of wages to such workers.

　　　　　The Companies (Amendment) Ordinance 1977 and the Bankruptcy (Amendment) Ordinance 1977, effective from February 4, 1977, rank claims for wages in lieu of notice equal in priority with the payment of wages and salary, statutory Crown debts and severance pay in liquidation or bankruptcy, subject to a maximum of $2,000. With effect from April 1, 1977, the two separate ceilings on priority payment of wages and severance pay were raised from $6,000 to $8,000 for each employee. The two amendment ordinances incorporate the former provisions of the Workmen's Com- pensation Ordinance concerning priority payment of workmen's compensation.

Trade Unions

With the exception of a small, neutral and independent segment, most employee unions are either affiliated to, or associated with, one of two local federations registered

EMPLOYMENT

as societies and bearing allegiance to opposing political groups. Because of 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 take part in its activities. The Hong Kong and Kowloon Trades Union Council has right-wing sympathies. Most of the members of its 77 affiliated unions, and of the nine nominally-independent unions that generally support the Trades Union Council, are employed in the catering and building trades. The Trades Union Council is affiliated with the International Confederation of Free Trade Unions.

There are 131 independent unions, some of which continue to make improvements in their internal administration and in the services offered to members.

　　　　　　The legal requirements covering the registration and control of trade unions are specified in the Trade Unions Ordinance administered by the Registrar of Trade Unions. The Trade Unions (Amendment) Ordinance 1977, effective from March 18, 1977, facilitates the employment by unions of competent executive staff.

Of the 372 unions on the register at the end of the year, 313 were employee unions with an estimated membership of 388,200. A further 44 were merchant or employer organisations with an estimated membership of 4,850 and 15 were mixed organisations with an estimated membership of 5,820.

Labour Administration and Services

　　　　　The Labour Department, including the Mines Division, has an establishment of 1,129 to provide continually expanding services. 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 and also is 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 10 divisions: administration, apprenticeship, development, employment services, employment conditions, industrial health, training council, in- dustry, labour relations and mines.

　　　　　　The Labour Relations Ordinance, which became effective on August 1, 1975, pro- vides machinery for special conciliation, voluntary arbitration and boards of inquiry for settling trade disputes that cannot be resolved through ordinary conciliation. Since the ordinance came into operation, most of the 311 trade disputes have been settled by ordinary conciliation. It has not yet been found necessary to invoke special con- ciliation or to refer any trade dispute to arbitration or a board of inquiry.

　　　　　　In 1977, the Labour Relations Service dealt with 7,371 labour problems, most of which were grievances involving individuals with claims for wages in arrears, severance pay, wages in lieu of notice and holiday pay. There were 38 work stoppages. The num- ber of working days lost in these disputes totalled 10,814, compared with 4,751 in 15 work stoppages in 1976.

EMPLOYMENT

The Labour Tribunal, which is part of the Judiciary, has functioned successfully 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 1977, the tribunal dealt with 2,611 cases involving employees as claimants and a further 188 cases in which the claims were initiated by employers. More than $3.7 million was awarded by presiding officers. Of the cases dealt with by the tribunal, 93 per cent were referred from the Labour Relations Service after un- successful conciliation attempts.

By the end of the year, the Labour Department had recorded 54 formal joint con- sultative committees in 25 establishments. In addition, 59 firms were recorded as having some method of informal consultation. Most are working smoothly and are achieving the object of bringing management and employees together to improve relationships, and to allow each to benefit from the experience of the other. Similar committees established in certain government departments have discussed a wide range of administrative, welfare and organisational problems.

A total of 68 special visits were made during the year to employers to promote joint consultation and other good labour relations. The Code of Labour Relations Practice, published by the Labour Department in October, 1976, sets out the principal guidelines for promoting harmonious labour relations.

Safety

The Factory Inspectorate of the Labour Department's Industry Division is responsible for enforcing the Factories and Industrial Undertakings Ordinance and its subsidiary legislation. These provide 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 guarding dangerous machinery parts, adopting safe working practices, and laying out factories to achieve safer working conditions. The Factories and Industrial Undertakings (Dry Batteries) Regulations, which became effective on January 1, 1977, protect workers from health hazards arising from the manufacture of dry batteries.

The Factories and Industrial Undertakings (Guarding and Operation of Machinery) Regulations, effective from April 1, 1977, provide for the safety of people working at, and operating, certain types of dangerous machinery or plant. To publicise these regulations, the Labour Department staged a large-scale machinery-guarding exhibi- tion at the Hung Hom rail terminus from March 11 to 20. It attracted almost 40,000 visitors.

　　　　　The Factories and Industrial Undertakings (Cartridge-Operated Fixing Tools) Regulations came into operation on July 1, 1977. They impose, on the contractor or proprietor and the operator of the tool, certain safety and training requirements in the use of cartridge-operated fixing tools in construction work or other industrial under- takings.

　　　　　The Factories and Industrial Undertakings (Protection of Eyes) Regulations, which became effective on October 7, 1977, protect people employed in any industrial process that may give rise to eye injuries.

During the year, the Industrial Safety Training Centre provided courses for workers from various industries, and students from vocational training centres and schools.

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　　　　　The courses were held at a permanent exhibition centre, where a variety of machine guards, models depicting safe working practices on construction sites and personal protective equipment are on display. To help spread the message, new industrial safety posters also were distributed to industry.

Finding Employment

The local employment service operates a free placement service from eight offices. It caters for ordinary job-seekers as well as unemployed able-bodied adults receiving public assistance. During the year, the service helped 8,925 people find employment. In 1973, a special register was established to offer employment assistance to grad- uates of overseas and local universities, and to those who have completed post- secondary education. During 1977, 92 people were successfully placed in employment. The Contracts for Overseas Employment Ordinance controls contracts entered into in Hong Kong between overseas employers, or their authorised representatives, and all manual workers proceeding overseas for employment. Such contracts must be attested by the Commissioner for Labour before workers leave Hong Kong. During the year, 428 contracts were attested, compared with 490 in 1976.

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 that must be attested by the Labour Department. During the year, 2,658 such contracts were attested.

Under the Employment Ordinance, all profit-making employment agencies - unless in an excluded class are required to obtain a licence before beginning operation. During the year, the department issued 29 licences to employment agencies dealing with local employment and 10 to those catering for employment overseas.

The Youth Employment Advisory Service provides career information to students and young people by preparing and regularly revising career pamphlets and occupa- tion leaflets. It has so far produced 36 career pamphlets and 100 occupation leaflets, and more are being prepared. A Careers Newsletter also is produced and distributed to secondary schools, youth centres and other interested organisations.

　　　　　　In 1977, officers of the service gave 352 career talks to some 32,700 students in 139 schools. The service also organised seven seminars and took part in 17 other activities that provided career information to students, teachers, parents and interested indi- viduals.

The sixth careers exhibition was held at the Hung Hom rail terminus from Novem- ber 25 to December 4. Twenty-five exhibitors from commerce, industry and govern- ment took part in the exhibition, which attracted some 113,000 visitors. During the year, eight mini career exhibitions were staged on a specially-designed truck that visited housing estates, parks, community centres and schools.

Industrial Health and Hygiene

　　　　　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

EMPLOYMENT

unit is primarily concerned with protecting workers against physical, chemical and biological 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. A further check is kept through the statutory notification of occupational diseases. Control is achieved by environmental and biological investigation, monitoring, medical examination and health education.

In conjunction with the Industrial Hygiene Unit, the Industrial Health Unit also investigates industrial accidents and occupational diseases. Medical and pathological examinations are arranged for workers exposed to the risks of lead, fluoride, ionising radiation and other occupational hazards, and all government divers and people work- ing in compressed air.

　　　　　Responsibility for examining and assessing injured workers lies with medically- qualified industrial health officers. Visits to the homes and work places of injured workers are made by nurses and health visitors of the Industrial Health Unit.

The Industrial Hygiene Unit, established on October 1, 1976, is concerned with protecting workers against environmental conditions that may affect their health and well-being. The unit carries out field surveys to evaluate the working environment of industrial undertakings and recommends measures to reduce industrial hazards. It also investigates complaints about working conditions and injuries caused by chemicals. The determination of airborne contaminants form the major part of field work. This includes measuring lead, manganese, mercury, oxides of sulphur and nitrogen, chromic acid mist, solvent vapours, silica and other forms of dusts. Thermal comfort, ventilation, noise and lighting also are evaluated.

　　　　　The laboratory of the unit biologically monitors workers handling fluoride and government staff about to enter hyperbaric atmospheres. It also takes and analyses air samples conducted in the Air Pollution Monitoring Programme. The laboratory is collaborating in World Health Organisation Air Pollution Study.

　　　　　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 administering the Clean Air Ordinance, the Clean Air (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations and the Clean Air (Restriction and Measurement of Smoke Emission) Regulations. It offers to the industrial and commercial sectors free, con- structive advice and technical help on efficient fuel usage and on reducing smoke emissions and other aerial pollutants.

　　　　　The Workmen's Compensation Unit administers the Workmen's Compensation Ordinance. It is responsible for ensuring that injured workers or their dependants receive, as quickly as possible, compensation to which they are legally entitled. An amendment was made to the Workmen's Compensation Ordinance to require em- ployers to meet the cost of medical care. Other amendments to the ordinance still being considered by the Legislative Council were intended to raise the ceiling for non-manual workers to $5,000 a month; to extend to 24 months the time limit for applying for compensation; to impose a surcharge on delayed payment; and to attain uniformity in assessments for injury.

Industrial Training

In 1973, the Governor appointed the Hong Kong Training Council to advise him on

FISHING

CAPE ST.MARY

HÔNG XONG

Research key to future

resource

Hong Kong's multi-million-dollar fishing industry seems destined for an even more productive future. During 1977, the Agri- culture and Fisheries Department research ship, Cape St Mary, discovered what promises to be a considerable new marine schools of juvenile anchovies in the northern part of the continental shelf off the South China Coast. The find was made during the latest series of surveys undertaken to determine the distribution of unexploited midwater or pelagic fish stocks in the traditional fishing grounds of the Hong Kong fleet. Information gained from the surveys, coupled with the results of other wide-ranging research projects, will enable government experts to evaluate ways of keeping up with Hong Kong's appetite for fresh fish. Each of the territory's 4.5 million people eats an aver- age of 32 kilograms of fresh fish a year. Modern fishing techniques, introduced by the department over the past 15 years, enable the local fleet of 5,500 vessels to supply nine out of every 10 fresh marine fish consumed. In addition, mariculture the raising of marine fish in nets or cages suspended from rafts anchored in sheltered bays and fresh water pond fish farming are playing an increasing role in meeting the demand for fresh fish.

Previous page: A worker on a marine fish culture raft nets a mature fish raised from fry. Left (from top): Some of the sophis- ticated fish-finding gear on board the Agri- culture and Fisheries Department research ship, Cape St Mary; the Cape St Mary leaves its moorings alongside the Aberdeen Fisheries Research Station; a research offi-

· cer examines one of more than 1,000 species of marine fish preserved at the Aberdeen station.

***

Modern trawlers like this, designed by the Agriculture and Fisheries Department to suit local conditions, are helping to revolutionise the fishing industry with their improved efficiency.

XXX

* Staff at the Au Tau Fisheries Research Sub-Station, near Yuen Long, prepare to net pond fish being

used in experiments aimed at improving fish farm management.

www

A fisheries officer at Au Tau records the amount of weight gained by the pond fish in an effort to determine ways of increasing fish farm yields.

　　　　　Fresh water fish ponds covering some 1,800 hectares turn the New Territories landscape into a vast checker- board in this dramatic aerial photograph taken near Yuen Long.

　　　　　　4 fresh water fish farmer casts his net on one of the many privately-owned ponds located mainly in the north-west of the New Territories.

年

A telephoto lens creates a forest of masts in this view of fishing boats moored in Aberdeen Harbour, of Hong Kong's major fishing ports.

one

EMPLOYMENT

　　　　　measures necessary to ensure a comprehensive system of manpower training geared 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 help the council. The 10 training boards deal with the training needs and problems of 10 major industries: automobile repair and servicing; building and civil engineering; clothing; electrical; electronics; machine shop and metal working; plastics; printing; shipbuilding and ship repairs; and textiles. The five committees examine problems common to more than one industry, such as apprenticeship, instructor training, tech- nical training in institutions, translating 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 third report to the Governor in August, 1977. The Training Council Division of the Labour Department is the secretariat of the training council.

　　　　　　In 1977, manpower surveys were conducted by the five training boards covering the building and civil engineering, electrical, plastics, textile and clothing industries. The training council approved for publication several survey reports and manuals on job standards, many of which are on sale at the Government Publications Centre. The training council also completed a report on technical manpower that quantifies, for Hong Kong as a whole, the overall demand for technical manpower at different job levels in any branch of engineering or technology, and the supply from various tech- nical institutions necessary to meet this demand.

　　　　　　The Clothing Industry Training Authority and the Construction Industry Training Authority were appointed by the Governor in September, 1975, pursuant to the Indus- trial Training (Clothing Industry) Ordinance and the Industrial Training (Construc- tion Industry) Ordinance. The clothing industry authority is empowered to collect a training levy on the total export value of clothing items manufactured in, and exported from, Hong Kong; the construction industry authority collects a levy based on the value of all construction works undertaken in Hong Kong. The revenue is used to maintain, respectively, the Construction Industry Training Centre, opened in August, 1977, and the Clothing Industry Training Centre, opened in October, 1977. These training centres provide practical training in key occupations for the clothing and construction industries.

　　　　　　The Apprenticeship Ordinance, which came into force in July, 1976, provides a legal framework for training people aged between 14 and 18 working in designated trades. The essence of the ordinance is that an employer engaging a young person in a designated trade must enter into an apprenticeship contract with him unless he has already completed an apprenticeship in that trade. This employer also must register the contract with the Commissioner for Labour. Employers of apprentices engaged in non-designated trades, or of apprentices over the age of 18 years and engaged in designated trades, may send their contracts of apprenticeship to the Labour Depart- ment for voluntary registration. By the end of 1977, 23 designated trades and 3,171 apprentices were on the register. The latter included 1,189 apprentices registered voluntarily under this ordinance. It is planned to designate a further five trades in 1978.

　　　　　　The Apprenticeship Division of the Labour Department is responsible for admin- istering the ordinance. Its duties include: advising and helping employers train and

EMPLOYMENT

employ apprentices; ensuring that apprenticeship training is properly carried out; conciliating in disputes arising out of a registered apprenticeship contract; and co- operating with technical educational institutions to ensure that apprentices obtain the necessary instruction.

　　　　　Instruction courses for apprentices, normally on a part-time day-release basis, are provided at technician level at the polytechnic and at craft level mainly at technical institutes.

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

Primary Production

「擴菜陳

產

A SERIES of pelagic or mid-water fishery surveys, begun in 1976 to investigate the resources of the South China Sea within the range of the Hong Kong fleet, continued during 1977. This project follows earlier surveys and studies, which suggest that the traditional demersal or sea bottom fishing grounds have reached the point of max- imum sustainable economic yield, and that any increase in supply will have to be from the exploitation of other resources.

The aim of the surveys is to establish the temporal and geographic distribution of unexploited pelagic fish stocks in the Northern South China Sea to help determine what should be done to maintain an adequate supply of fish. By showing which are the most abundant species, the surveys also will help determine the most appropriate gear for exploitation.

The surveys are being carried out by the Agriculture and Fisheries Department research vessel Cape St Mary, on which a range of sophisticated acoustic equipment - some of it on permanent loan from the South China Sea Fisheries Development and Co-ordinating Programme - has been installed to locate shoals of fish.

In December, it was announced that the 26-year-old Cape St Mary would be replaced in mid-1979 by a 32-metre-long combination seiner/trawler to be built at a local shipyard at a cost of $10 million.

The new 867-tonne research vessel will have a cruising range of 8,000 nautical miles and be able to stay at sea for anything up to a month. It will be manned by a crew of 17 and five scientists, and be equipped with two laboratories.

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 require- ments, even though only 11 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 1976 by-census showed that farmers comprised only 1.36 per cent of the economically-active population, while fisherfolk made up another 1.19 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 12 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 43 per cent of the vegetables consumed, about 65 per cent of the total live chicken requirements and about 17 per cent of all pigs slaughtered.

The sudden increase in Hong Kong's population that occurred during the 1950s, following a large-scale influx of immigrants from China, gave considerable stimulus

PRIMARY PRODUCTION

to agricultural production - both because of the increased demand and because many of the new arrivals were skilled farmers. As a result, there was a rapid growth of intensively-cultivated vegetable farming added to which livestock production increased greatly.

Simultaneously, the fishing fleet developed from a migratory one made up of wind- driven junks to a mechanised fleet based in Hong Kong and catering for the marine food requirements of the expanding population. This ready market, along with government assistance, stimulated the mechanisation of the fleet and impressive advances have been made in the transition from junks to modern vessels using in- creasingly complex gear and equipment.

Traditional rice cultivation has continued to decrease as vegetable growing has ex- panded. The profit margin on rice cultivation has dropped sharply 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. The skilled cultivator can maintain a good standard of living from a half-hectare farm by using modern horticultural techniques, such as sprinkler irrigation, mechanised cultivation and 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 of im- ported swine and poultry and to fluctuations in the prices of feeding stuffs that are almost entirely imported. With lower feed prices and fair prices for poultry and pigs during the year, local production of pigs and poultry showed increases of 10 per cent and 24 per cent respectively above the levels of 1976.

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 con- sidered; 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 under- taken. All available statistical data on production factors and food supplies, including imports, are collected and analysed to help 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 market demand for foods are prepared. The projections are then related to the local primary production capacity, both actual and potential. New food supply sources also are examined. Detailed surveys and studies are carried out on distribution systems and on the dyna- mics of the wholesale marketing of foodstuffs so that long-term development decisions can be planned.

The department encourages optimum land usage by providing technical, develop- ment and advisory services to farmers. It manages large areas of open countryside and is responsible for soil and water conservation, fire fighting, woodland management, landscape repair and the development of recreational services for the public. The department also deals with the economic, social and technological development of the

PRIMARY PRODUCTION

Hong Kong fishing and agricultural industries. It handles the administrative organisa- tion 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 for each hectare of vegetables, flowers and fruit. The department advises livestock farmers on modern methods of animal production, helps them in the supply of improved and exotic breeds of pigs and poultry, and provides an artificial insemination service for pigs.

　　　　　　Fisheries research is primarily concerned with direct and indirect problems related to the need for information in the attainment of development objectives. These broadly include marine resources, aquaculture, hydrography and marine pollution problems. In marine resource research, emphasis is on recommending new fish stocks for com- mercial exploitation and monitoring the performance of existing capture fisheries and, therefore, known fish stocks. Aquaculture is concerned with culture system develop- ment aimed at increasing the average yield rate over a given area and time. Hydro- graphic investigations are designed to support the need for environmental information in an assortment of biological programmes. Marine pollution research covers a wide scope of problems primarily aimed at identifying the level of pollution and the principal indicators of various forms of pollution; it also serves an advisory function in many ways.

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 that 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 1977, there were 2,400 rotary cultivators and 1,350 sprinkler units in use on vegetable farms.

Teams of agricultural development officers are posted throughout the New Terri- tories to deal with farming and pollution problems 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. The agricultural development officers also help farmers in land development and land rehabilitation. In the rural development programme in 1977, more than 6,981 farmers attended farm discussion groups led by professional and technical officers from the Agriculture and Fisheries Department. Some 112 field demonstrations of chemical weed control were conducted in the main vegetable-growing areas for the benefit of farmers. Officers also made more than 123,436 visits to farmers and co-operative societies, and many farmers visited government experimental farms and farming projects.

　　　　　　　Fisheries development work involves modernising fishing craft and introducing 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 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

PRIMARY PRODUCTION

Marketing Organisation. At the end of 1977, 3,896 children were attending these schools. A further 36 were attending other schools on scholarships provided by the organisation.

Close contact with the fishing community is maintained through liaison with pro- ducer 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 three separate loan funds - the Kadoorie Agricultural Aid Loan Fund, the J. E. Joseph Trust Fund and the World Refugee Year Loan Fund. All are administered through the Agriculture and Fisheries Department. At December 31, 1977, loans issued since the inception of these three funds totalled almost $103 million. Of this, almost $98 million had been recovered.

The Fisheries Development Loan Fund, with a capital of $5 million, is admin- istered by the Director of Agriculture and Fisheries specifically for developing 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, also is 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, 1977, loans issued since the inception of these four funds totalled $79.32 million, of which $71.09 million had been repaid. In addition, a Fish Culture Development Loan Fund, with a capital of $1 million, is under consideration to provide loan finance for both marine fish and pond fish culturists.

　　　　　　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 registering co-operative societies and their by-laws, examining accounts, general supervision, and such matters as mediating in disputes when necessary. At December 31, 1977, some 11,623 farmers and more than 2,134 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 69 so- cieties and four federations supported by fisher-folk. A further 252 societies with about 8,429 members operate in the urban area. The bulk of these are 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.

　　　　　　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 relating to registering credit unions and their by-laws, examining accounts and general supervision. At the end of the year, 55 credit unions with 10,686 members were registered. There were 28 credit unions comprising groups of people having a common bond of association; 21 unions of people having bonds of employment; and six unions formed by groups each with a common bond of residence.

PRIMARY PRODUCTION

Land Usage

Hong Kong's land area totals 1,052 square kilometres. Only 10.6 per cent is used for farming, 75.8 per cent is marginal land with different degrees of sub-grade character, and built-up areas comprise the remaining 13.6 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 on agricultural 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.

Approximate

area

(square Percentage

Class

kilometres)

of whole

Remarks

Built-up (urban areas)

143

(ii) Woodlands

125

Grass and scrub lands

616

(iv) Badlands

(v) Swamp and mangrove lands

(vi) Arable

(vii) Fish ponds

920 # 22 2

13.6

11.9

58.6

Includes roads and railways. Natural and established woodlands. Natural grass and scrub, including

4.1

1.2

Plover Cove Reservoir.

Capable of regeneration.

Capable of reclamation.

Stripped of cover. Granite country.

8.8

Includes orchards and market

gardens.

1.8

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 usage 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 from $89 million in 1963 to $326 million in 1977 - a rise of 266 per cent. Vegetable production accounts for more than 85 per cent of the total value, having increased from $58 million in 1963 to $279 million in 1977.

　　　　　　Rice is the staple food of the southern Chinese. Two crops of rice a year can be grown on land with adequate water. The normal yield from half a hectare of two-crop rice land is about two tonnes or up to five tonnes with high fertiliser use and high- yielding strains. The amount of rice land has dropped from 9,450 hectares in 1954 to 330 hectares in 1977. 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. A wide range of exotic temperate vegetables, including tomato, sweet pepper, cabbage, celery, head lettuce, cauliflower and carrot are grown in winter. Straw mushroom also is produced, using industrial cotton waste as the growing medium. Among the common types of flowers, gladiolus

PRIMARY PRODUCTION

and chrysanthemum grow all the year round; dahlia, rose, aster, snapdragon and carnation in winter; and ginger lily and lotus flower in summer. A wide range of ornamental plants - including philodendron, dieffenbachia, bamboo palm and poin- settia - are produced in commercial nurseries. Peach blossom and ornamental citrus are grown specially for the Lunar New Year. The area of land under vegetables and flowers has increased from 910 hectares in 1954 to 4,160 hectares in 1977.

　　　　　　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 totalled 390 hectares; by 1977 it was 550 hectares.

　　　　　　Other field crops such as sweet potato, taro, yam and sugar cane are cultivated in the remote and drier areas where water and transport facilities are inadequate for growing vegetables or rice. Some 100 hectares were under rain-fed crops in 1977, compared with 1,410 hectares in 1954.

　　　　　　In an effort to control the import and sale of potentially-dangerous agricultural pesticides, the Agricultural Pesticides Ordinance came into effect on July 15, 1977. This ordinance, which supercedes the Pharmacy and Poisons (Agricultural Poisons) Regulations 1970, requires the registration of all agricultural pesticides and the licen- sing of all dealers who import, repack, supply or sell agricultural pesticides. It also lays down conditions for storing, packaging and labelling agricultural pesticides.

　　　　　　Because 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; pure strains of the Chinese type are becoming difficult to find. Although locally-produced pigs represented only 17 per cent of the total pigs killed in 1977, their value amounted to $163 million.

　　　　　　With an annual production value of $298 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 are successfully adap- ting 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 are in the New Territories. Regular tuberculin testing is carried out on all dairy animals.

　　　　　　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 Ranikhet and intranasal-drop vaccines. No outbreaks of Rinderpest have occurred since 1950. Tissue culture vaccine is still being used in some young dairy cattle to give life-long protection. Investigations to establish the incidence of intercurrent disease in both pigs and poultry are under- taken at the government's veterinary laboratory.

　　　　　　All imported dogs and cats, other than those 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 a rabies control policy. Any dog that bites a person is required to be detained for observation in government kennels.

　　　　　A Rabies Awareness Campaign designed to bring home to the public the ever-present dangers of the disease was launched in May. The campaign was accentuated by the

PRIMARY PRODUCTION

3333

tragic death of a young Gurkha soldier from the disease, which he contracted from a bite inflicted by a rabid dog in his native Nepal. During the eight-month campaign, a total of 28,208 dogs was inoculated against rabies - 34 times the normal figure for a similar period.

　　　　　　　All cattle and pigs imported for food also are quarantined on arrival in Hong Kong. Any imported for breeding purposes are subject to strict procedures.

Agricultural Waste Treatment

Streams in the New Territories are still heavily polluted mainly by pig manure and, to a lesser extent, by poultry manure hosed or dumped into watercourses by farmers seeking the easiest and cheapest means of disposal. These streams continued to be the main concern of the recently-established Agricultural Waste Treatment Unit and advice to farmers mainly centred around environmentally-acceptable means of waste disposal.

　　　　　　　A large majority of pigs in the New Territories are kept by smaller farmers - mainly with 50 to 100 pigs. These farmers, generally, cannot afford to treat slurry - manure mixed with water - in an acceptable manner. They are therefore advised to keep waste solids as dry as possible from origin to disposal, thereby becoming involved with another important aspect of the Waste Treatment Unit's work - finding ways of economically handling, collecting, treating and disposing of animal wastes in solid or partly-solid forms. Experimental work on manure slurry treatment and disposal, continuous-process drying into easily and cleanly-handled manure forms, and handling and transporting animal wastes was extended to include batch-drying into manure form, atmospheric pre-drying to lower the cost of machine drying, and biochemical filter treatment of liquid wastes.

Complementing these activities were selecting sites for collecting and storing manure, putting up the first structures for storing solid and liquid manures, and investigating outlets for the liquid and solid end-products of treated manures.

Fishing Industry

Marine fish form one of Hong Kong's most important primary products. More than 150 fish species of commercial importance frequent the waters of the adjacent con- tinental shelf. Most important of these, in terms of landed weight, are golden thread, scads, lizardfish, big-eyes, sardines, conger-pike eel and croakers.

　　　　　　　The total quantity of fish and fishery products has increased from 127,134 tonnes (valued at $349 million) in 1971 to 158,324 tonnes (valued at $733 million) in 1977. This is an increase of 25 per cent by quantity and 110 per cent by value. In 1977, marine fish landings amounted to 96,846 tonnes at a wholesale value of $390 million. This represented 92 per cent of the local consumer demand.

　　　　　　　The fishing fleet consists of 5,500 vessels, of which 93 per cent is mechanised. There are four major types of fishing in terms of gear: trawling, lining, gill-netting and purse- seining. Trawling is the most important, accounting for 65 per cent or 62,950 tonnes of marine fish landed in 1977. An estimated 35,700 fishermen work the fleet and a large proportion of the vessels are owner-operated.

　　　　　　　Pond fish farming is the most important culture activity. Fish ponds totalling 1,874 hectares are located in the New Territories, principally in the Yuen Long district.

PRIMARY PRODUCTION

There are some 500 pond fish farms, varying in size and number of ponds. Most are owner-operated and routine operations also are assisted by family labour. The main species raised is grey mullet, but also important are common carp, silver carp, big-head, grass carp, mud carp and edible goldfish. Total pond fish yield for 1977 was 4,176 tonnes valued at $41 million, which met 12 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 growing the fish from fry or fingerling stages to marketable size in cages suspended from rafts in numerous sheltered bays throughout the New Territories. A survey carried out in October, 1976, showed that a total of 983 families were engaged in this business. The area of surface water covered by rafts was estimated at 7.5 hectares. In addition, there were some 16 hectares of fish farms under impoundments. The total quantity of live marine culture fish marketed in 1977 was estimated at 563 tonnes valued at $20 million.

　　　　　　Legislation is being considered to license and protect marine fish culturists in des- ignated areas. A new section of the Agriculture and Fisheries Department was established in June, 1976, to carry out the initial implementation of the legislation.

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, 31 per cent of the total quantity of locally- produced vegetables and 80 per cent of the total landings of marine fish were wholesaled 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 transporting locally-produced vegetables from the New Territories to the wholesale market in Kowloon, providing marketing facilities, and supervising sales and financial trans- actions in the market. Revenue is obtained from a 10 per cent commission on sales. The organisation is non-profit-making and seeks to obtain maximum returns for growers by minimising marketing costs. During the year, 71,800 tonnes of vegetables valued at nearly $104 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 to provide convenient services to the public, the trade and the industry. Revenue is obtained from a six per cent commission on the proceeds of sales; 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, market and marketing im- provements, and support for the 13 schools managed for the benefit of fishermen's children. In 1977, the wholesale fish markets handled 89,500 tonnes, which were sold

PRIMARY PRODUCTION

for some $312 million. This included 460 tonnes of imported marine fish sold through these markets.

　　　　　　　Facilities in existing wholesale markets are inadequate for handling the ever- increasing quantities of imported fresh vegetables, fruit, poultry and eggs, freshwater fish and crustacea. There is widespread obstruction, traffic congestion and low market- ing efficiency at high costs. With the obvious need to improve these markets, detailed plans have been made for establishing new markets in Kowloon and on Hong Kong Island. They will be under the direct aegis of the Agriculture and Fisheries Department. Work on reclaiming sites for these market projects was started during the year.

　　　　　　　Because of the need for early action, it has proved necessary for the government to construct and use a number of temporary wholesale markets until permanent markets are built. Three are located in the Cheung Sha Wan district, adjacent to a site ear- marked for the permanent market project in Kowloon.

Mining

Kaolin, feldspar and quartz are mined by opencast methods. Most high-grade kaolin is exported to Japan and most feldspar to Taiwan. All quartz, some feldspar and about 14 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 Commis- sioner 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 1977, three mining leases, eight licences and two prospecting licences were valid for different

areas.

　　　　　　　The Mines Division of the Labour Department, in addition to dealing with mining and prospecting applications, controls the possession, conveyance, storage, manufac- ture and use of explosives on land in Hong Kong. It is responsible for inspecting mining and prospecting areas, stone quarries, blasting sites and explosives stores, and en- forcing mining and explosives legislation and safety regulations. It also issues shot- firers' blasting certificates, controls the delivery of explosives from government depots to blasting sites, and manages government explosives depots that provide bulk storage facilities for all explosives imported into Hong Kong.

　　　　　　　Under a continuing agreement with the Ministry of Defence, a quantity of explo- sives is stored at ammunition depots on Stonecutters Island to relieve the storage burden at government depots. Expansion of the explosives storage facilities on Stone- cutters Island to replace completely the Green Island Government Depot, as well as the establishment of a cartridged slurry explosive manufactory on the island, is expected to take place in late 1978 or early 1979.

Education

目路

　　　　　SOME $1,658 million - 20 per cent of the government's total expenditure - was invested on education in the 1977-8 financial year. This expenditure enabled about 30 per cent of the population to attend classes at some 2,500 schools, four technical institutes, three colleges of education, a technical teachers' college, a polytechnic and two uni- versities. Public expenditure on education will continue to rise in the years ahead to meet plans for the further expansion of educational opportunities.

　　　　　　From 1978, sufficient places will be made available for every primary school- leaver to proceed to three years of secondary education. This undertaking will be carried out through the provision of 51,480 additional junior secondary places and the construction of some 54 new schools, including conversions to primary schools. A further 48 new secondary schools are planned for completion between 1979 and 1981 to provide places of a better standard and to improve regional distribution.

The Governor announced in October, 1977, that junior secondary education would be made free and compulsory from September, 1978, with the abolition of the standard $400-a-year fee. Furthermore, the Director of Education's powers to serve a school attendance order on a parent who withholds a child from school without reasonable excuse will be extended. From September, 1979, these powers will cover children who have not yet reached the age of 14 and, from September, 1980, children under 15 who have not yet completed Form III. Prohibitions on the employment of children also will be extended to help enforce compulsory school attendance. Hong Kong children will thus receive nine years' free and compulsory education in primary and secondary schools, with appropriate prohibitions on employment during those years. In November, 1977, the government issued, for public comment, a Green Paper outlining proposals for developing senior secondary (Forms IV to VI) and tertiary education over the next 10 years. The government aims to provide a range of oppor- tunities, mainly in schools and technical institutes, to enable students to continue their education on a subsidised basis after completing Form III.

The Green Paper proposes that subsidised Form IV places should be provided in 1981 for 50 per cent of students in the 15-year-old age group instead of the 40 per cent recommended in the 1974 White Paper. At present, such places are available for only 17 per cent of this age group. Places in technical institutes, which provide the Form III leaver with full-time courses and also part-time courses in conjunction with em- ployment, will meet the educational needs of a further 14 per cent. This means that, in 1981, there will be subsidised places in schools and technical institutes together for 64 per cent of students in the 15-year-old age group.

EDUCATION

Because the number of teenagers in Hong Kong will decline during the 1980s, the number of Form IV places provided in 1981 will cater for an increasing proportion of the 15-year-old age group. In 1986, places will be available for 63 per cent of this age group. With the build-up of the four existing technical institutes and the opening of new ones in Kowloon Tong in 1979, and, subject to demand, at Tuen Mun in the early 1980s, there will be an opportunity for more than 80 per cent of the 15-year-old age group to continue their education in schools and technical institutes.

　　　　　　Other types of public-sector places will be provided for Form III leavers in adult education centres, in special schools and in certain specialist institutions. However, some students may choose to go to private independent schools even when sufficient publicly-provided places are available.

　　　　　　The government also will provide a subsidised Form VI place for a third of the students entering Form IV two years earlier. Therefore, by 1986, almost 20 per cent of students in the 17-year-old age group will be able to proceed to a subsidised Form VI education, compared with some five per cent at present.

The increase in the number of fully-aided and per caput grant schools will enable more students to receive their secondary education in schools with purpose-built accommodation, sufficient laboratory and workshop facilities, and the resources to employ trained teachers of good calibre. The Green Paper recommends the progressive increase of assistance to these schools to enable them to improve their standards, and also makes various proposals to improve the quality of secondary education at all stages, including:

　　　　• Extending educational television, in colour, to the senior secondary curriculum, and providing resources to develop other audio-visual services and to expand school libraries;

•

　　　Improving teacher training by raising entrance standards to the colleges of education and by extending the basic pre-service training course to three years;

　　　　• Encouraging university graduates who enter the teaching profession to take teacher-training courses; and

•

Developing a systematic in-service retraining programme for teachers.

　　　　　　The proportion of students taking up tertiary courses provided, or wholly sub- vented, by the government will almost double over the next decade. The university student population will rise to 10,330 by the 1980-1 academic year, and will thereafter increase by about three per cent a year so that it exceeds 12,000 by the mid-1980s. The polytechnic, which has expanded rapidly in recent years, is expected to register a growth rate of five per cent a year from 1978-81 before stabilising at a total population of about 29,600 students by all modes of attendance. It will continue to be the main provider of courses at technician level, although such courses also are provided by technical institutes. Colleges registered under the Post-Secondary Colleges Ordinance are to remain private institutions, and the government will continue to provide limited assistance to needy students.

The Green Paper also sets out proposals to improve the operating standards of the Education Department's adult education courses by keeping under review pay rates for teaching staff and by arranging for evening students to have access to school laboratories and other special facilities. In addition, the adult education curriculum will be further developed and the administration strengthened.

EDUCATION

A White Paper on Rehabilitation Services published in October, 1977, recom- mended considerable expansion of special education over the next decade. The main aims are to expand screening and group testing services to cover all primary school pupils; to increase to 50,800 the number of places in special schools and special classes in ordinary schools; to increase training to ensure that all who are involved in providing special education are suitably trained; and to provide services that will enable handicapped children to develop their capabilities to the full.

Emphasis also is being placed on pre-primary and primary education. The Governor announced to the Legislative Council in October that the Secretary for Social Services would chair a steering committee that would review all aspects of primary education, and the services for children below primary school age in kinder- gartens and child care centres.

The Education Department established an instrumental music unit in September to encourage the growth of instrumental music among young people. A distinguished violinist and conductor from the United Kingdom has been appointed music con- sultant.

The first stage of a reorganisation aimed at streamlining the directorate structure of the Education Department took effect in September, 1977. This involved the in- troduction of a unified regional, area and district administration of kindergartens, primary and secondary schools under a Schools Division, and the complete detach- ment of the Examinations Division from the department following the establishment of the Hong Kong Examinations Authority. Further stages of the reorganisation will take place within the next three years.

Kindergartens

A total of 786 kindergartens provide education for 171,879 children in the three to six-year-old age group - and enrolments are rising. These private institutions, which play a significant role in the education system, are registered with the Education Department and are supervised by the Advisory Inspectorate. The government gives assistance by providing reliable bodies with grants of Crown land, exempting non- profit-making groups from paying rates, allocating premises in public housing estates, and providing teacher training and related facilities. It also makes freely available professional advice to school managers, teachers, parents and members of the public.

Primary Education

Primary education has been free in all government schools and in most aided schools for the past six years. In the few aided primary schools where fees continue to be charged, fees may be remitted for up to 20 per cent of the total enrolment to meet cases of genuine hardship. To help needy parents further, an annual textbook and stationery grant of $30 a pupil is available to 20 per cent of pupils enrolled in govern- ment and aided primary schools. A minority of parents continues to send their children to private primary schools, although places are available for them in the public

sector.

There has been a downward trend in primary school enrolment in recent years following a decline in the birth rate. In September, 1977, primary school enrolments totalled 574,842, compared with 607,990 the previous year. In addition, 16,425

EDUCATION

pupils attended night schools. During the school year, 13,584 new primary places were provided in new and developing schools, compared with 15,120 the previous year. Further provision of places is planned to meet the needs of developing areas, partic- ularly the new towns in the New Territories.

Under the Education Ordinance, the Director of Education has the power to order parents to send children to primary school if it appears that they are being withheld without reasonable excuse. These powers are exercised only after careful investiga- tion of family circumstances and the needs of the child. Parents can appeal to a specially-constituted board of review.

　　　　　　During the year, 53 primary schools from different parts of Hong Kong, Kowloon and the New Territories were included in a school social work scheme organised jointly by the Education Department and the Social Welfare Department. The scheme provides help and guidance to pupils found to have learning, emotional and other problems arising from home circumstances.

Chinese is the language of instruction in most primary schools, while English is taught as a second language. Ten junior schools - five operated by the government, three by the government-subvented English Schools Foundation, and two by private bodies - cater for children whose first language is English.

Special Education

　　　　　Special education continued to expand in 1977, when the number of special places for handicapped children increased from 12,180 to 14,540. There are now 37 special schools - two for the blind, four for the deaf, 18 for the physically handicapped, six for the slow-learning and seven for the maladjusted and socially deprived. In addition, 145 special classes - 94 for the slow-learning, 27 for the partially hearing, five for the partially sighted and 19 for the maladjusted - are provided in ordinary government schools and 207 special classes 183 for the slow-learning and 24 for the maladjusted - in ordinary aided schools. More than 560 less severely physically handicapped children are in ordinary classes in government and aided schools.

The progress of these children is supervised regularly by the Education Department's Special Education Section, which also expanded its assessment and remedial services during the year. The assessment services include audiometric, vision and speech screening in primary schools; audiological testing; psychological testing; speech testing; and educational assessment. The remedial services include speech and auditory training; speech therapy; adjustment groups; and teacher and parent counselling. These services are provided in two special education centres - the Sir Ellis Kadoorie Government Primary School at Sai Ying Pun and the Perth Street Government Primary School at Ho Man Tin. These two centres dealt with more than 175,400 children in 1977.

The training programme for specialist staff also expanded. It now includes overseas training for specialist staff of the Special Education Section and local in-service courses for teachers in special schools and special classes. In addition, short courses, seminars and workshops are organised by the Special Education Section for teachers in ordinary schools and for trainee-teachers at colleges of education.

　　　　　　In April, 1977, the section established a Chinese Braille Unit, which has taken over the braille printing press from the Government Printer. The unit produces primary

EDUCATION

Chinese textbooks and supplementary readers in braille supplied to schools for the blind at one tenth of the actual cost.

Secondary Education

There are four main types of secondary schools - Anglo-Chinese secondary schools, Chinese middle schools, secondary technical schools and prevocational schools. The 302 Anglo-Chinese grammar day schools have enrolments totalling 331,036. The medium of instruction in these schools is mainly English, although due prominence is given to Chinese subjects taught in Chinese. Upon completion of Form V, students may take the Hong Kong Certificate of Education examination and candidates may go on to Form VI to prepare for university entrance. They also may study for the General Certificate of Education at both ordinary and advanced levels.

The 103 Chinese middle day schools accommodate 63,485 pupils. Students at these schools also take courses leading to the Hong Kong Certificate of Education examina- tion. Instruction is in Chinese and English is taught as a second language. A number of Chinese middle schools also offer a one-year Form VI matriculation course to prepare students for entrance to the Chinese University of Hong Kong.

A total of 18 secondary technical schools provide courses for 14,504 pupils. Ten of the schools are run by the government, six are subsidised and two are private. Instruction is in English, with Chinese taught as a second language. Like the Anglo- Chinese grammar schools, secondary technical establishments prepare their pupils for the Hong Kong Certificate of Education examination and suitable candidates can continue their studies in Form VI or at technical institutes, the polytechnic or the Technical Teachers' College.

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

Prevocational schools, all of which are fully subsidised by the government, provide a three-year secondary course made up 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 designed to introduce students to as wide a field of employment as possible. 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 encour- aged at this level. Instead, the aim is 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 to continue their studies in technical institutes. This form of technical training is fully supported by the Hong Kong Training Council and is becoming more accepted by industry.

With the completion of the Marden Foundation Caritas Prevocational School in Tuen Mun New Town and the conversion of the Tang King Po Trade School, the total number of prevocational schools has increased to 10, with a total student capacity of 7,800 places. A further three schools of this type are planned.

Some five subsidised secondary modern schools with an enrolment of 3,953 offer a three-year secondary course with a practical bias. There also are nine private and 10

EDUCATION

Ambitious programme

With about 30 per cent of Hong Kong's 4.5 million people enrolled in educational institutions, the government is pressing on with a massive expansion programme that will provide, by September, 1978, subsidised secondary education for every primary school-leaver. The programme calls for providing 51,480 additional junior secondary school places and building 54 new secondary schools, including conver- sions of surplus primary schools. A further 48 new secondary schools will be built between 1979 and 1981. The expansion will make available to every child nine years of subsidised education - six years primary and three years secondary. It also is proposed to provide, by 1981, subsidised Form IV places for 50 per cent of students in the 15-year-old age group; subsequently, up to one third of these students will be able to proceed to Form VI on a subsidised basis. In addition to secondary schools, fully-subsidised pre-vocational institutions provide three-year post-primary courses that serve as an introduction to craft apprenticeships. Students graduating from pre-vocational schools have a chance to continue their studies at four government- run technical institutes that provide full and part-time courses designed to meet new technological and industrial develop- ments. Higher education facilities, financed largely by public funds, are provided for more than 30,000 people at the Hong Kong Polytechnic, the University of Hong Kong and the Chinese University of Hong Kong.

IDEAL

Previous page: Clay models surround two youngsters enjoying an art class at a govern- ment-aided secondary school. Left (from top): A primary school class goes outdoors for an art lesson; a typing teacher gives a secondary school student a few pointers; pre-vocational textile craft students learn the functions of a machine used in the manu- facture of cotton yarn.

HEUX CURIES AND SQUARE THREADS

RIGHT HAND SING

EIGHT HAND HELDX

SHI

PUBLIC LI

Two students tackle a technical drawing assignment at one of the subsidised technical schools providing educational skills geared to the needs of Hong Kong's economy.

.::.

.::.:::

　　　　　　Multi-coloured yarn bobbins frame three students taking a textile industries course at one of the four well-equipped technical institutes operated by the government.

　　　　　A technician of tomorrow studies the workings of colour television in one of the many courses provided by the technical institutes on a full or part-time basis.

Many of the 100,000 volumes housed

in this spacious library at the Hong Kong Polytechnic were provided

by a £million grant from the British Government.

BANU DOK

圖

AUKTI

Samples of new product ideas exhibited at the 1977 Polydesign Show reflect the efforts being made in Hong Kong to produce more sophisticated items for world markets.

Preparative Separation Principles

in Biochemistry

HONG

IG LY

1 #

.....

　　　　　Researchers study the effects of hormones on male patients as part of a series of wide-ranging scientific projects being undertaken at Hong Kong's two universities.

EDUCATION

subsidised secondary schools with a total enrolment of 8,506 offering some form of technical and trade training that does not lead to the Certificate of Education examination.

There has been a steady increase in the number of pupils enrolled in all types of day-time secondary schools. In September, there were 420,635 such students, compared with 392,808 in 1976. During the 1976-7 school year, 9,823 new secondary places were provided in new school buildings. A total of 98,143 primary school pupils sat the last Secondary School Entrance examination in May, 1977. Of these, 73,693 or 75.1 per cent were awarded government or government-aided secondary places. A further 67,409 pupils attend tutorial or evening classes, where instruction is offered in secondary-level subjects. The most popular subject is English.

　　　　　　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. To meet the increasing demand for secondary school places expected over the next few years, five new classes began operating at the Island School in Sep- tember, 1977, to form the nucleus of a new school on Hong Kong Island. These schools cater for children in the 11 to 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 private secondary schools also offer courses suitable for English-speaking children.

Technical Institutes

Four technical institutes are run by the Education Department. They are the Morri- son Hill Technical Institute, established in 1969; the Kwai Chung and the Kwun Tong Technical Institutes, opened in September, 1975; and the Haking Wong Technical Institute at Cheung Sha Wan that started offering courses in September, 1977.

　　　　　　All four technical institutes are designed to provide courses at both craft and tech- nician level on a full-time, block-release, part-time day-release and evening basis. Special short courses also are offered to meet the specific requirements of industry and commerce.

　　　　　　　The institutes offer a wide variety of courses related to the needs of major industries. These include mechanical, electrical, electronic, building and civil engineering; plastics; shipbuilding and ship repairs; automobile repairs and servicing; printing; textiles and clothing; commerce; and service industries, including hotel keeping and tourism.

　　　　　　　The institutes maintain close links with commerce and industry, the Hong Kong Training Council, the Hong Kong Council of Social Service, the Hong Kong Poly- technic and the Labour Department in an effort to design and run courses related to specific industrial developments and manufacturing techniques.

　　　　　　Some 21,033 students were enrolled in technical institutes in September, 1977. The maximum practical student capacity at present is 30,080.

　　　　　　　Planning for a fifth technical institute, to be built in Kowloon Tong, is at an advanced stage and is expected to open in September, 1979. A wide range of new courses is envisaged, including aeronautical engineering, optical studies, horology, industrial and commercial design, electronic engineering, footwear technology, and heavy vehicle repairs and servicing.

Post-Secondary Education

―

EDUCATION

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, finance, educational facilities, the number and qualifications of staff, and the conditions for admitting students. The Hong Kong Baptist College and the Hong Kong Shue Yan College are the only institutions registered under this ordinance. The Hong Kong Baptist College, built 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 3,400 students. Fifteen depart- ments cover 18 major fields in three types of courses. The college receives some financial support from the government in the form of an interest-bearing loan - and students may apply for government-financed interest-free loans to help pay tuition fees. The Hong Kong Shue Yan College, registered in January, 1976, also is built on land made available by the government. It consists of three faculties arts, social sciences and commerce with a total of 10 departments. The college offers day and evening courses and has a total enrolment of about 1,900.

―

A number of private day and evening schools offer varying standards of post- secondary courses. None of these schools receives aid from the government.

Higher Education

Grants and interest-free loans for needy students at the University of Hong Kong and the Chinese University of Hong Kong are provided from public funds under a government scheme introduced in the 1969-70 academic year. The scheme, adminis- tered by a joint universities' committee, ensures that lack of means does not prevent students from taking up places in either of the two universities. The amount of public funds available for student financing has increased substantially over the years. For 1977-8, $6.8 million in grants and $23.4 million in interest-free loans has been provided.

　　　　　　The student financing scheme was extended to Hong Kong Polytechnic students in 1976-7. Some $1.1 million in grants and $14.6 million in loans were provided by the government for polytechnic students in 1977-8. The grants and loans are admin- istered 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 attached to developing university and polytechnic facilities and the sums of public money in- volved - the government relies on a University and Polytechnic Grants Committee appointed by the Governor to provide impartial and expert advice on the amount of finance required to develop or sustain any level of higher education activity. The committee also advises government on the allocation of funds among the universities and the polytechnic.

The Hong Kong Polytechnic

The Hong Kong Polytechnic was formally established in 1972, when it took 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.

EDUCATION

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 Tang Ping Yuan Building and the library completed in 1976. A sports centre, a community building and the Michael Clinton Memorial Swimming Pool now being built should be completed in the 1977-8 academic year.

In the 1977-8 academic year, 5,931 full-time, 2,589 part-time day-release and sand- wich, and 16,004 evening students were enrolled, compared with 5,651, 2,577 and 15,371 respectively in 1976-7.

　　　　　　The polytechnic has 15 teaching departments grouped under three divisions. They are: Applied Science Division (applied science, building and surveying, mathematical studies and nautical studies); Commerce and Design Division (accountancy, business and management studies, computing science, design and languages); and Engineering Division (civil and structural engineering, electrical engineering, electronic engineering, industrial centre, mechanical and marine engineering, and production and industrial engineering).

　　　　　　The Textile Industries Department will be reorganised in the 1977-8 academic year to become the Institute of Textiles and Clothing - the polytechnic's first institute. The Government Institute for Social Work Training was incorporated into the polytechnic in August, 1977, to form the School of Social Work.

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

　　　　　　The minimum entrance requirement for a full-time course is Grade E or above in at least five subjects in the Hong Kong Certificate of Education or an equivalent qualification. Candidates also must satisfy any additional requirements for admission into the courses for which they apply. Applicants for evening courses must hold the Hong Kong Certificate of Education with Grade E or above in at least four subjects or its equivalent. Mature students aged 25 or above, and those aged 21 or above recommended and sponsored by an employer, can seek exemption from the minimum entry requirements.

A number of British professional institutions exempt holders of polytechnic higher diplomas from certain parts of their examinations. Seven associateship courses - applied statistics, electrical engineering, electronic engineering, mechanical engineer- ing, production and industrial engineering, structural engineering and surveying - were offered in the 1977-8 academic year.

　　　　　　　Short full-time and part-time courses preparing candidates for professional exam- inations are organised throughout the year. Some of these lead to qualifications approved by the British Department of Trade and Industry for marine engineers, mates and masters. When there is a need for instruction in specific subjects of interest to 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,

EDUCATION

building technology, radar operation and textile studies were particularly popular during the year. Part-time day-release courses in technical and commercial subjects are offered through support provided by government departments and industrial or commercial concerns.

The University of Hong Kong

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

Numbers of undergraduate places in the various faculties in 1977-8 were: arts, 855; science, 517; medicine, 786; engineering and architecture, 931; and social sciences and law, 750. Of these, a total of 1,169 places were available for first-year students. There also were 854 places for post-graduate students - 450 reading for higher degrees and 404 for diplomas and certificates. In the Language Centre, 17 students were reading for the Certificate in Chinese Language. The number of full-time teaching posts including demonstratorships - at the beginning of the academic year was 575. 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 generally depends on successful results in this examination. Some 4,358 students met the minimum entry requirements in 1977.

　　　　　　The School of Education, officially inaugurated on September 1, 1976, on the occasion of the Silver Jubilee of the former Department of Education, offers graduates a one-year full-time or a two-year part-time curriculum leading to the Certificate in Education. Also offered from the 1977-8 academic year is the Advanced Diploma in Education, a prerequisite for admission to the curriculum leading to the Master of Education degree in the following year. The degrees of Master and Doctor of Phi- losophy in Education are available for specially-qualified and selected candidates. In addition, the university confers higher degrees, diplomas and certificates on suitable candidates for their research or for successful completion of a prescribed curriculum in other disciplines. These include degrees of Masters of Philosophy in Arts, Social Sciences and Law, Science, Medicine, and Engineering and Architecture, and the degrees of Masters of Arts, Science in Engineering, Social Sciences, Social Work, Business Administration, Medical Sciences and Surgery. Doctorial degrees awarded are in the spheres of Philosophy, Medicine, Surgery, Letters, Science, Social Sciences and Laws. Certificates are obtainable at post-graduate level in the fields of law, engineering subjects, Chinese language and medical sciences. Courses leading to a diploma in management studies and Chinese language also are offered.

　　　　　　During 1976, the university began planning a School of Dentistry, which is to be set up in association with its Faculty of Medicine in a programme to further develop Hong Kong's medical and health services. In association with the University and Polytechnic Grants Committee, the university appointed a Dental Academic Advisory Committee to plan the development and curriculum of the new dental school and to help in the appointment of a Dean. The pre-clinical section of the dental curriculum

EDUCATION

will be provided by the departments of the Faculty of Medicine in existing accom- modation, but the government is to build and maintain a new dental clinic in which the clinical side of the dental curriculum will be provided. It is planned to establish the dental school in 1980 and the first 60 dentists are expected to graduate in 1984.

In 1976-7, the Department of Extra-Mural Studies provided more than 450 evening and day courses for more than 13,000 adult students. Subjects offered by the depart- ment include art and design, business studies, economics, law, languages, oriental studies, a range of liberal arts courses, and a wide variety of vocational and pro- fessional courses. Most of these courses are conducted in English, but some are taught in Mandarin and a significant proportion are in Cantonese.

The general library contains almost 270,000 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 205,000 volumes contains many rare items. In addition, there are two branch libraries - the medical library with more than 42,000 volumes, including bound periodicals, and the law library, with about 15,000 volumes.

Research

The University of Hong Kong's Centre of Asian Studies continues to provide a central point for research within the university on Asia in general and on China and Hong Kong in particular. In 1977, it published a sociological study of the Hong Kong film industry and its audience; a catalogue of Chinese paintings in the Luis de Camos Museum, Macau, with commenting essays; a second edition of two com- memorative studies on Sun Yat-sen; and a volume of nine selected papers on the 'Gang of Four' from the contemporary China seminar. In response to demand, The Thought of Mao Tse-tung, Its Form and Content, is being translated into English and Japanese for wider circulation. New projects undertaken include a survey of Hong Kong temples; a study of the ceramic wares of Shek Wan; the annotation, editing and translation of the Chen Kung-po manuscript, Bitter Smile; and the prep- aration of a new edition of the centre's Directory of Current Hong Kong Research on Asian Topics. In addition, the centre acted as a base for overseas research groups, including a project on industrial relations in Hong Kong and a study in ocean architecture. During the year, the centre organised a series of seminars and centre fellows' lunch talks and, with the help of local experts in the field, the fifth Leverhulme regional conference on 'China: Development and Challenge'.

　　　　　　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 primarily concerned with Hong Kong history has been set up. Studies on China and South-east Asia - both at graduate and undergraduate levels - are a well-establish- ed feature of the work of the History and Geography Departments.

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The Faculty of Social Sciences and Law is conducting research projects relating to various fields. These cover mathematical economics; different aspects of the Hong Kong economy, such as income and employment, fiscal policy, the banking system, technology and growth; managerial beliefs in South-east Asia; small business in the Hong Kong environment; government and politics in Hong Kong; cultural/ social background of government decision-makers; social problems in Hong Kong;

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industrial relations in the textile industry; effects of television viewing; medical statistics; economic and demographic analysis; industrial quality control; stock market research; discriminant analysis; Chinese customary law and legal history; and international commercial transactions and taxation. A new publication series, Hong Kong Manage- ment Papers, was inaugurated by the newly-established Department of Management Studies. Legal and statistical advice are among the services rendered by the university to the community.

In the Faculty of Engineering and Architecture, research is being carried out on power apparatus and systems, electronics, solar energy, noise, mechanics, bio- engineering, soil and concrete, structural analysis, management, production and con- trol techniques, and computer applications, including computer-aided design and graphics in architectural studies.

　　　　　　Continuing projects in the Faculty of Science include the ecology of marine and freshwater organisms; pollution studies on Hong Kong roadside plants; cell and tissue culture of some local economically-important crop plants; investigations of agricultural pests; the physiology and metabolism of fish and its application in pond and mariculture; a survey of human and animal parasites; the endocrinology of re- production and foetal development; studies of local ionospheric, meteorological and cosmic ray phenomena; and the application of electrochemistry to plating and storage batteries. Investigations also are being carried out on fouling problems in freshwater pipelines and sea-water intakes. The Department of Chemistry is involved with studies of Hong Kong's atmosphere, particularly the amounts of sulphur dioxide, ozone, nitrogen oxide and solid particulates. The isolation of naturally-occurring substances from Hong Kong plant materials is continuing.

　　　　　　The Faculty of Medicine is engaged in many research projects of special significance to Hong Kong. They include studies on the growth and development of Chinese children; meningitis and other neuro-muscular disease in children; the role of hypo- coagulation in childhood cancers; temperament, parental expectations and social models affecting psychiatrically-disturbed Hong Kong children; a pilot screening project to determine the incidence of inborn errors of metabolism in Chinese newborn babies; correction of spinal deformities and disorders due to poliomyelitis; a pilot screening project to establish the incidence of limb and, especially, trunk deformities in Chinese school children; the pharmacology of 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 homosexuality.

The Chinese University of Hong Kong

The Chinese University of Hong Kong was inaugurated in 1963 as a federal univer- sity in which the principal language of instruction is Chinese. It is a self-governing

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corporation that draws its income mainly from government grants. The university comprises three constituent colleges - Chung Chi, New Asia and United. The campus. covers 134 hectares of land on Tai Po Road, near Sha Tin and overlooking Tolo Harbour.

Following the enactment of a new University Ordinance in December, 1976, teaching methods at the university were changed to provide a balance between 'subject- orientated' teaching and 'student-orientated' teaching in small groups carried out by each of the colleges. 'Student-orientated' teaching is designed to give the student habits and attitudes of mind characteristic of experts in their chosen field and to prepare them for the kind of problems they are likely to encounter later in life. It also equips students for a rapidly-changing world.

The university's four faculties

　　　　　　　　　　　　　　　　　　　　　　arts, business administration, science and social science offer a wide range of courses leading to Bachelor of Arts, Bachelor of Business Administration, Bachelor of Science and Bachelor of Social Science degrees. At post-graduate level, the Graduate School offers instruction through 17 divisions. Three types of graduate programmes, ranging from one to three years, are offered. These lead to degrees of Master of Philosophy in Humanities, Science or Social Science; Master of Business Administration; Master of Divinity; Master of Arts; and Master of Science. Courses on education are conducted by the School of Educa- tion, which provides professional training for graduates of approved universities to serve and teach in local secondary schools. Students taking courses may follow programmes leading to a Diploma in Education or a Degree of Master of Arts in Education.

In September, 1977, an international Asian studies programme was established at the university. The programme allows a selected number of students, research scholars and academics from overseas to take advantage of the university's resources and research facilities covering the broad field of Chinese and Asian studies. A total of 36 students from the United States, France, West Germany, Norway, Israel, the Philippines and Japan were enrolled for the first term.

　　　　　　During 1977, the university continued to make preparations for the Medical School to be established in 1981. The Medical Academic Advisory Committee, which is planning the development and curricula of the new school, again visited Hong Kong in April for further discussions. It is hoped the first pre-medical students will be admitted in the 1980-1 academic year.

The undergraduate enrolment in September, 1977, totalled 4,247 and comprised: arts, 1,056; science, 1,154; social science, 1,202; and business administration, 835. Some 468 students were enrolled in the university's graduate programme. The number of candidates who sat the matriculation examination in April, 1977, totalled 11,611, of which 3,056 passed. Of these, 1,177 were admitted for the 1977-8 academic year. A total of 833 students graduated from the university during the year. They included 52 Masters of Philosophy, 20 Masters of Business Administration, four Masters of Arts, one Master of Arts (Education), 183 Bachelors of Arts, 194 Bachelors of Science, 141 Bachelors of Business Administration and 238 Bachelors of Social Science.

The Department of Extra-Mural Studies offers more than 500 general courses in many subjects, some of which can be taken by correspondence. The department

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　　　　　also provides a number of intensive courses leading to certificates. The majority of the courses are conducted in Cantonese or Mandarin. Since 1975, the department has collaborated with Commercial Television and Radio Television Hong Kong in the production of instructional television and radio programmes.

　　　　　　The university library system comprises the university library and branch libraries at each of the three constituent colleges. The university library is used primarily for research and advanced studies. Besides general reference books, the branch libraries provide books and periodicals for undergraduate studies and general reading. The four libraries together hold 305,360 volumes in oriental languages and 218,458 in Western languages, and subscribe to 2,459 periodicals.

Research

Three institutes the Institute of Chinese Studies, the Institute of Science and Tech- nology, and the Institute of Social Studies and the Humanities provide research facilities that allow faculty members to keep up with, and contribute to, developments in their own fields.

　　　　　　The Institute of Chinese Studies is carrying out research in a broad but unified concept of Chinese studies, including what is traditionally known as Sinology. The institute has its own journal, of which eight volumes have been published. As a result. of research sponsored by the institute, seven books five on Chinese linguistics and one each on Chinese intellectual history and Chinese economic history - have been published in the past two years. The Chinese Linguistic Research Centre continues to undertake research in Chinese linguistics. The translation centre is printing a number of translated works and is preparing many others. The centre publishes, semi-annually, an English-language journal, Renditions, which is devoted to transla- tions of classical and contemporary Chinese material.

　　　　　　The Institute of Science and Technology promotes interdisciplinary research in the science faculty, with particular emphasis on projects with long-term regional significance or applied value. Two major research units one investigating Chinese medicinal materials and the other food protein production from wastes operate within the institute. The Chinese medicinal materials unit is making laboratory investigations into rationally-selected Chinese medical herbs to establish scientifically their true therapeutic value. Future plans include co-operation with the new medical school. The food protein production unit is following two main streams of research. They are, first, intensive aquaculture involving the use of sewage wastes on successive steps in the algae, shrimp and fish food chain, and producing vegetable crops in sewage sludge; and, secondly, growing straw mushrooms in cotton wastes and tea leaves. The mushroon project calls for a series of studies on factors affecting crop yields.

The Institute of Social Studies and the Humanities is undertaking a wide variety of research projects through its various centres. The Economic Research Centre is studying the Hong Kong economy and the economies of countries in the region that have close links with Hong Kong. Major areas of investigation include national income study, econometric forecasting of trade and employment, technological changes in manufacturing industries, labour market, and agricultural and industrial development in China. The Centre for Communication Studies has completed a pilot

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study on radio audiences. It has now launched a long-term project aimed at locating, annotating and, if funds are available, acquiring all Chinese journalism and com- munication materials published since the Ching Dynasty. The centre also has conducted a number of smaller research projects, including an Asia-wide study of the media's attitude towards women. For the past seven years, the Social Research Centre has been studying various aspects of social life in Hong Kong. These include 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 industries, and the impact of industrialisation 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 South-east Asia.

Teachers and Teacher Education

In March, 1977, 37,961 full-time and part-time teachers were employed in government and registered day schools. They included 9,292 university graduates and 19,784 non- graduates qualified for teaching. A further 6,457 teachers were engaged in tutorial and evening classes.

Except for technical teacher training, teacher education is provided at the Education Department's three colleges of education - Grantham, Northcote and Sir Robert Black. All three colleges offer two-year full-time courses designed to produce non- graduate teachers qualified to teach in primary schools and the lower forms of secondary schools. The colleges also have third-year courses 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 also are pro- vided to train practising teachers. In September, 1977, there were 635 students in the two-year courses, 108 students in the third-year courses, 57 qualified teachers under- going retraining courses, and 1,418 trainees in in-service training courses.

Technical teacher training is provided at the Hong Kong Technical Teachers' College, which also is administered by the Education Department. The college is temporarily housed in government primary school premises, but uses facilities at the Morrison Hill Technical Institute. The college trains technical teachers for secondary schools, prevocational schools and technical institutes. Several types of courses are offered. The one-year full-time course is intended for mature people who are well qualified and experienced in a technical field and who decide to take up technical teaching as a career. Generous grants are offered to attract suitable recruits 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 educa- tion.

　　　　　　The college also provides in-service courses of teacher training. In 1977-8, the college offered a two-year in-service course for teachers of technical subjects. This course serves to improve the techniques of teachers who have not received any formal teacher training. A supplementary 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

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training in design and technology. On completion of this course, graduates are able to teach technical subjects up to Certificate of Education level. The government primary school teachers' retraining course provides two-year full-time retraining in design and technology that allows such teachers to go on to 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 instruc- tional technique of supervisors and instructors employed by industry. In addition, the college provides short courses and seminars on specific topics tailored to the needs of various industries.

A developing Technical Teachers' Centre is associated with the Technical Teachers' College. The centre encourages activities that bring teachers interested in the teaching of technical subjects together to discuss common problems and to exchange ideas.

Adult Education

For young people who have left school and for adults, the Adult Education Section of the Education Department provides both formal and informal evening 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 courses that constitute the whole education ladder for adults - from literacy classes to secondary and post-secondary studies. The general background courses provide fundamental and elementary education at primary level, with special reference to adult needs and interests. Par- allel to these are the practical background courses which offer training in house- craft, sewing and knitting, and woodwork - to give adults certain basic practical skills for home 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 some practical bias for young primary school- leavers who do not anticipate further studies. However, to give students a chance of furthering their studies, the syllabus of the young people's course was revised recently to parallel levels of the secondary school courses and the middle school course for adults. Both the six-year secondary school courses and the five-year middle school course for adults provide full academic courses leading to the Hong Kong Certificate of Education examination. At post-secondary level, the teachers' courses provide additional in-service professional training in the teaching of English in primary schools, mathematics in junior secondary forms, physical education in secondary schools, and the teaching of art, art and craft, music, woodcraft, handicraft, gymnas- tics, modern educational dance, folk dance, oriental dance and educational com- munications and technology. English-language courses from Primary IV to Form V standard are offered to prepare adult students for the English syllabus of the Hong Kong Certificate of Education examination. Senior level classes of matriculation standard provide 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 sociol- ogy. Since September, 1976, specialised one-term courses have been offered on various aspects of Chinese classics and culture.

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The 14 adult education and recreation centres providing informal education, together with an attached centre at Cheung Chau, 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. Three of the centres have moved to Shau Kei Wan, Lok Fu and Kwun Tong to meet increased demand in those districts.

　　　　　　About 22,000 people are enrolled in the formal courses and about 32,000 in the informal courses. The Adult Education Section also helps the Prisons Department and the Social Welfare Department organise classes and provide professional expertise in general and practical subjects for inmates of various prisons, addiction treatment centres and rehabilitation homes.

Examinations

The secondary school entrance examination - which selected primary school leavers for places in government and aided secondary schools, and for assisted places in private secondary schools was conducted by the Education Department for the last time in May, 1977. Some 75.1 per cent of the 98,143 candidates who sat this examination were allocated public secondary school places. Form I places in secondary schools will be provided for all Primary VI leavers from 1978, and will be allocated under a new system based on internal assessment in schools and a centrally adminis- tered academic aptitude test.

An ordinance to provide for the establishment of an independent Hong Kong Examinations Authority was enacted on May 5, 1977. The authority, established on August 1, has taken over from the Education Department the responsibility for conducting the Hong Kong Certificate of Education examination, primarily held for students who have completed secondary education up to Form V. The authority also will administer the matriculation examination of the Chinese University of Hong Kong from 1979 and the advanced level examination of the University of Hong Kong from 1980.

　　　　　　On September 1, the authority also assumed the responsibility for conducting all overseas examinations previously held by the Education Department on behalf of various examining bodies in Britain and elsewhere. These examinations include the General Certificate of Education, the test of English as a foreign language and many others that enable students to acquire academic and professional qualifications. Appendix 21 lists the more important examinations held in Hong Kong in the past three years and the number of candidates who sat them.

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 specialist advisory inspectors, the development of advisory services and facilities, and the pro- vision of courses, seminars and workshops for practising teachers. The inspectorate also evaluates textbooks, new and existing courses and instructional materials, and carries out educational research and guidance and curriculum development. Close liaison with other bodies, such as the various local examination authorities, is main- tained.

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　　　　　　In 1977, the second year of a three-year trial period for implementing and evaluating a set of provisional syllabuses for junior secondary forms was completed. The feed- back so far has been very satisfactory.

　　　　　　A British expert on curriculum development gave advice to inspectors and prin- cipals of secondary schools at an eight-day seminar held in March. The role of the inspectorate also was explained at the seminar.

　　　　　　An encouraging development in primary education has been the wider acceptance among school authorities of an activity approach scheme aimed at bringing about a less formal approach to learning. 'Learning by doing' is the keynote of the scheme and children are given the opportunity to proceed at their own pace and according to their own abilities. During the year, special seminars and workshops were organised for teachers implementing the approach. In addition, a three-day exhibition was held in mid-July to introduce teachers to various aspects of the scheme. More than 3,000 people visited the exhibition.

　　　　　　The inspectorate's Textbooks Committee continued to give positive guidance to schools on the selection of books. A comprehensive list of recommended textbooks was issued to schools in May. In an effort to improve the quality of textbooks, the Textbooks Committee maintains close liaison with two educational publishers' associations the Anglo-Chinese Textbook Publishers' Organisation Ltd. and the Hong Kong Educational Publishers' Association Ltd.

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 May, the Kowloon Unit of the Chinese-Language Teaching Centre moved to the Ma Tau Kok Government Offices. During the year, 60 courses, seminars and workshops attended by 2,047 teachers from 1,484 schools were conducted on both sides of the harbour. A reference library containing reading materials and teaching resources was open to teachers throughout the year. Many schools, both primary and secondary, made good use of a free dubbing service for teaching tapes offered by the

centre.

The English-Language Teaching Centre organised 13 intensive courses on methodol- ogy or speech improvement, as well as 14 workshops and 15 special seminars for 941 teachers from 323 schools. Follow-up visits were made. Some 2,580 language tapes were supplied to 158 schools and two book exhibitions were held. A specialist library, which contains 3,800 books on English-language teaching and linguistics, and an English teaching materials display room were frequently visited by teachers, school principals, lecturers and members of the Advisory Inspectorate. In May, the Kowloon Unit of the English-Language Teaching Centre also moved to new premises in the Ma Tau Kok Government Offices.

　　　　　　The Mathematics Teaching Centre made considerable efforts in 1977 to seek teachers' views on new topics to be included in the Curriculum Development Council Form IV to V syllabus and to help teachers implement the Form I to III provisional mathematics syllabus. The centre held 45 seminars, 25 workshops, eight in-service

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courses and four exhibitions for both primary and secondary school teachers. A metrication box and posters were distributed to primary and secondary schools to promote the use of metric units and to familiarise teachers with metric terms.

Visual Education Centre

The Advisory Inspectorate's Visual Education Centre continued to lend to schools a wide range of audio-visual materials. These include 8 mm and 16 mm films, 35 mm filmstrips, slides, recorded tapes, photographs, overhead projector transparencies, study kits and learning packages. A total of 52,000 items were borrowed during the year.

　　　　　　　In co-operation with the subject advisers of the Advisory Inspectorate, the centre produces a variety of audio-visual materials for school use. Some of these materials -- slide and photograph sets are now being sold to schools through the Sale of Govern- ment Publications Section of the Information Services Department.

　　　　　　　Eight audio-visual instruction courses were conducted for in-service teachers. A series of seminars for school audio-visual co-ordinators took place at the beginning of the new academic year. The self-service Media Production Service Unit in Kowloon moved into the first floor of the Canton Road Police Primary School Building. The new premises provide more space and better facilities.

An Audio-Visual News Bulletin continued to be circulated quarterly to 2,000 schools and educational institutions.

Cultural Crafts Centre

The Education Department's Cultural Crafts Centre provides opportunities for teachers from both primary and secondary schools to update their knowledge and to exchange ideas on the teaching of art, crafts and home economics. During the year, courses, seminars and demonstrations were organised for about 1,500 teachers.

The annual exhibition of pupils' creative work continued to be a popular event and was attended by more than 2,000 visitors. An exhibition of art and design work selected from 31 pilot scheme secondary schools attracted more than 5,000 visitors. As in previous years, art work produced by local school-children was well received at many overseas exhibitions.

Educational Television

The Educational Television Service (ETV) programmes are produced locally, in colour, by the Education Department and Radio Television Hong Kong (RTHK). The programmes, transmitted by the three commercial television stations between 8 a.m. and 6 p.m. Monday to Friday, 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, notes for pupils also are provided. Evaluations supplied by teachers and questionnaires, visits to schools by ETV producers and ETV inspectors, and reports from inspectors of the Advisory Inspectorate have resulted in many improvements to ETV since its inception in 1971.

In September, ETV was extended to Form II pupils following the installation in secondary schools of a further 300 video cassette recorders and 600 colour television

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receivers. A new subject science also was introduced for Form I and II pupils. The service is expected to be extended to Form III in the 1978-9 academic year. The other programmes provided for Form I and II pupils cover the same four basic subjects Chinese, English, mathematics and social studies as those put out to Primary III to VI pupils.

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ETV's total audience during 1977 was estimated at 150,000 secondary and 400,000 primary school pupils.

Music

Seminars, refresher courses and music workshops organised by the Music Section of the Education Department were attended by more than 700 primary and secondary school teachers during the year. A secondary schools teachers' choir and orchestra were formed to give music teachers experience in rehearsing and performing sub- stantial works from the choral repertoire.

The Hong Kong Youth Choir toured the United Kingdom as part of a Hong Kong music and dance team chosen to take part in the Queen's Silver Jubilee celebrations. Six young musicians accompanied by an officer from the Music Section attended the First Regional Asian Youth Music Camp held at Mount Makiling in the Philippines. In conjunction with the Hong Kong Philharmonic Society, a series of concerts and open rehearsals for students was inaugurated. More than 92 schools have regis- tered with the Music Section for the current season's performances.

To encourage and develop the growth of instrumental music among young people, a new instrumental music unit was established within the Education Department. A distinguished violinist and conductor from the United Kingdom was appointed as the department's instrumental music consultant.

The 29th Hong Kong Schools Music Festival attracted more than 38,000 competi- tors in 246 classes held at 10 different centres. Five concerts by the prize-winners were given before capacity audiences at the City Hall.

The annual practical examinations of the Associated Board of the Royal Schools of Music attracted 7,418 entries and 3,125 candidates sat the theory examinations. Some 173 entries were received for the Trinity College of Music examinations and 1,250 ballet students took part in the Royal Academy of Dancing examinations.

Physical Education and Recreation

The Physical Education Section of the Education Department conducts school visits, allocates public sports grounds to schools and the public, and organises a great variety of refresher courses for physical education teachers and recreation activities for school children throughout the year. As a result of advice given to schools and teachers on expanding the scope of physical education and school recreational activi- ties, swimming and gymnastics are beginning to be recognised as new major activities in schools. Facilities for such activities are increasing.

　　　　　　The section also organises outdoor education camps, an extensive learn-to-swim scheme, canoeing and sailing, the Duke of Edinburgh's Award scheme, activities for handicapped children and a wide variety of other functions. Together with the Hong Kong Schools Sports Association and the New Territories Schools Sports Association, the section conducts the School Dance Festival and organises competitions in

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gymnastics, trampolining, canoeing, athletics and various games and sports for schools. More than 30,000 students took part in these activities during 1977.

　　　　　　The section also supported the Hong Kong Schools Sports Council in holding the inter-port schools' competitions between Macau and Hong Kong. The schools' international swimming championships for South-east Asian countries were held in Hong Kong from December 1 to 3.

The section was responsible for organising and co-ordinating Princess Alexandra's visit to Ocean Park on February 5, when 5,000 school children from Pok Fu Lam, Aberdeen and Wong Chuk Hang attended.

　　　　　　The Education Department organised a Hong Kong Schools' Chinese dance team to take part in the Queen's Silver Jubilee celebrations in the United Kingdom in late July. The team, comprising 12 girls and four boys from seven secondary schools, was led by two inspectors from the Physical Education Section. It toured 10 major cities in the United Kingdom and gave a total of 18 performances that were extremely well received. These school-based activities are separate from those of the Recreation and Sport Service, which are covered in Chapter One.

Hong Kong Students in Britain

The Student Section of the Hong Kong Government Office in London is responsible 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 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. It also advises on courses that will help students find employment in Hong Kong or elsewhere on completion of their studies. Nurses under training receive the same service.

　　　　　　　The Student Section maintains close relations with the government and, particularly, the Education Department in Hong Kong, the Overseas Development Administration and other British Government departments, the British Council, and educational establishments and hospitals where Hong Kong students are receiving training.

In December, 1977, the records listed some 9,624 students, including students on sandwich courses and nurse trainees. New arrivals during the academic year totalled 1,669, compared with 1,698 the previous year. The newcomers included 754 students for General Certificate of Education courses and 17 for basic or post-registration qualifications in nursing. Student visitors to the section totalled 988. Inquiries about financial assistance continued to figure high because of the effect of inflation in Britain and further proposed increases in tuition fees. In addition, a large number of students contacted the section for advice about the correct procedure to follow when applying to renew student visas and about employment prospects on returning to Hong Kong. During the academic year, 1,641 applications on behalf of 651 students were made to polytechnics and colleges. A total of 825 students made direct applications to uni- versities 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.

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The government-run Hong Kong Students' Centre, formerly Hong Kong House, is a residential and social centre in London for Hong Kong students in Britain. It accommodates 77 students and serves as a focal point and meeting place for many more. In September, work began on extensive modifications to the centre. When completed, these modifications will greatly increase study and recreational space and residents' cooking facilities, boost student accommodation to 90 places, and provide additional staff accommodation and a higher standard of safety against fire. The Hong Kong Commissioner in London administers the centre and is assisted by an advisory board that 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 helps students who wish to study overseas by providing information on educational estab- lishments in Britain and other English-speaking countries.

　　　　　　In addition to those who went to Britain during the year, 1,858 students went to Canada for secondary or higher education, 2,719 to the United States and 249 to Australia.

MEDICAL SERVICES

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Wide range of facilities

The Medical and Health Department, together with many medical practitioners and hospitals in the private sector, provides the people of Hong Kong with a com- prehensive medical service. There are 44 hospitals, of which 12 are run by the government, 21 by government-subvented voluntary organisations and 11 by private groups. In all, they provide more than 19,000 beds or 4.3 for every thousand of the population. A further 4,600 beds will become available in the next seven years with the building of two more hospitals - at Sha Tin and at Tuen Mun - the addition of a psychiatric wing to Princess Margaret Hospital and the completion of other projects. Patients in general wards of government hospitals are charged $5 a day for any form of treatment, but this payment can be waived in cases of hard- ship. In addition to hospital services, the Medical and Health Department runs 51 outpatient clinics and maintains services covering family, school, industrial and port health, and the control of epidemic and endemic diseases. During 1977, the fight against drug abuse was further streng- thened with the opening of the world's first outpatient acupuncture and electro- stimulation centre for the treatment of heroin, opium and morphine addicts. The centre augments outpatient methadone de- toxification and maintenance programmes run by the Medical and Health Depart- ment to treat drug addicts.

Previous page: A fish-eye lens captures an unusual view of an ultra-modern operating theatre in a government hospital. Left (from top): A floating clinic' brings medical treatment to people living in outlying islands; Queen Elizabeth Hospital, Hong Kong's largest medical institution; Royal Hong Kong Auxiliary Air Force helicopters fly government doctors to remote communi-

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The 1,250-bed Princess Margaret Hospital, one of four major regional hospitals, serves the fast-develop- ing new towns in the western New Territories.

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　　　　　Three government hospital schools of nursing, together with other approved training schools attached to government-assisted or private hospitals, ensure that nurses are trained to the highest standards.

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Hong Kong's infant mortality rate is lower than in many developed countries thanks ·

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to the expansion of maternal and child health services.

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Trainee physiotherapists study anatomy at the School of Physiotherapy run by the Medical and Health Department at Queen Elizabeth Hospital in Kowloon.

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On the road to recovery... a qualified physiotherapist helps a young patient regain the use of his leg muscles with a workout on a special exerciser.

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A nurse pauses to chat with two patients convalescing in the spacious tree-lined grounds of Kowloon Hospital, one of 12 operated by the government.

Health

THE development of medical and health services took another step forward in 1977 with the introduction of a programme that will provide, over the next seven years, more than 4,600 new hospital beds, five clinics, two polyclinics, two health centres, a second medical school and a dental school.

　　　　　　The first major hospital project to be completed will be a psychiatric wing at Princess Margaret Hospital, where the general block was opened in 1975. The new wing will provide 1,300 beds by 1980. A 1,400-bed hospital at Sha Tin, supported by a poly- clinic and a general clinic, is expected to become operational during 1982-3. The Tuen Mun Hospital, due to be completed in 1983-4, will provide 1,200 beds and be supported by a polyclinic. A further 700 hospital beds also will become available through other projects. Four more general clinics and two health centres are to be built in other areas of Kowloon and the New Territories.

　　　　　　　Hong Kong's second medical school is to be established at the Chinese University of Hong Kong. The first pre-clinical intake will be in 1981 and the school will even- tually produce 100 doctors a year. The new hospital at Sha Tin will serve 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 1985.

　　　　　　　A training school for dental nurses will be opened in Sai Ying Pun in 1978, with the first batch of graduates joining the dental service in 1980. It is envisaged that five dental clinics for school children will come into operation by 1985.

A third general nurses' training school is planned for a site adjacent to the Princess Margaret Hospital at Lai Chi Kok. It will have an annual intake of 150, beginning in 1982-3.

　　　　　　All these projects will require additional para-medical staff and, to ensure that qualified staff are available, a Health Services Division is being established at the Hong Kong Polytechnic to provide training courses. The first of the many courses to be run will begin in 1978.

　　　　　　　Further development of rehabilitation services for the disabled also is planned. A Green Paper outlining recommendations for the next 10 years was published for public comment in 1976. The views received led to the publication of a White Paper in October, 1977.

　　　　　　　Medical and health services in Hong Kong are the responsibility of the Medical and Health Department. To make more efficient use of hospital beds and medical

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facilities, the services were regionalised in April and the whole of Hong Kong was divided into four regions. The ultimate aim is to bring about a better appreciation of the medical and health needs of each of the main population centres through the provision of reasonably accessible services.

　　　　　　The results of regionalisation have so far been encouraging. Pressure on the two major hospitals - Queen Elizabeth Hospital and Queen Mary Hospital - has been reduced. Camp beds in these two hospitals have at last been virtually eliminated and bed occupancy in the various district hospitals, especially those in the subvented sector, has increased significantly.

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

　　　　　　For the 1977-8 financial year, the Medical and Health Department's estimated expenditure is $512 million. In addition, subventions totalling about $261.5 million are being made to many non-government medical institutions and organisations. The estimated capital expenditure on hospitals and other buildings, including furni- ture and equipment, is $30.3 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 main killer disease. The infant mortality rate is now lower than in many developed countries. This is due to an improved environment, the development of maternal and child health services, and increasing public appreciation of the value of these services.

Notifications of communicable diseases totalled 12,087 in 1977. No quarantinable diseases were reported.

The incidence and the number of deaths from tuberculosis continued to decline. About 99 per cent of new-born babies are vaccinated with BCG - probably the highest rate in the world. As a result, tuberculosis is now rare among those under 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 appreciable increase in the incidence of the disease in this group since 1971. Energetic control measures, such as contact tracing, following up defaulters and routine ante-natal blood tests, are all aimed at interrupting the chain of infection.

　　　　　　Leprosy has been brought under control. Patients who need hospitalisation are treated in the Lai Chi Kok Hospital, but the majority are treated as outpatients at special skin clinics.

Malaria transmission has ceased in Hong Kong. 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, screens on buildings and mosquito nets are the main preventive measures.

　　　　　　Mass immunisation against diptheria continued to maintain a high level of im- munity among children. Only one case in August - was reported.

　　　　　　Poliomyelitis has been eradicated for the past four years. Oral vaccine is offered at family health service centres throughout the year and a general immunisation cam-

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paign is carried out every January and March. About 97 per cent of infants receive one dose of polio vaccine soon after birth and 84 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 but, since the introduction of anti-measles vaccine in 1967, the pattern of infection is no longer biennial. A peak incidence was reported in March and gradually decreased to low levels in July. Immunisation campaigns were mounted to reduce the incidence.

　　　　　　Most cases of viral hepatitis, which shows a cyclic peak every third year, occurred among male adolescents and young adults. Scattered outbreaks of influenza were observed throughout the year.

Hospitals

There are 19,779 hospital beds in Hong Kong, representing 4.4 beds for each thousand of the population. This figure includes beds in private hospitals and maternity and nursing homes, but excludes those maintained by the Armed Forces.

There are four major acute hospitals serving as regional hospitals - Queen Mary Hospital, Queen Elizabeth Hospital, Kwong Wah Hospital and Princess Margaret Hospital.

　　　　　　Queen Mary Hospital, with 1,161 beds, is the regional hospital for Hong Kong Island. It also is the teaching hospital for the University of Hong Kong's Faculty of Medicine.

　　　　　　Queen Elizabeth Hospital, the largest general hospital in Hong Kong with 1,898 beds, is the regional hospital for East Kowloon and the eastern New Territories.

Kwong Wah Hospital, a government-assisted hospital with 1,552 beds, is the regional hospital for West Kowloon.

Princess Margaret Hospital, opened in 1975, has 1,250 beds. It serves as a regional hospital for the western New Territories and contains an infectious diseases unit and a geriatric unit.

In addition, there are a number of district, convalescent, maternity and special hospitals to support the regional hospitals. A number of treatment centres are main- tained in penal institutions.

　　　　　　In the voluntary sector, there are 21 hospitals with 8,199 beds. The voluntary organisations receive substantial financial help from the government each year. There also are 11 private hospitals with 2,289 beds.

Clinics

　　　　　Outpatient services provided by the government, subsidised organisations and private agencies are developing steadily. The government operates 52 general outpatient clinics and a number of polyclinics and specialist clinics. The second phase of the South Kwai Chung Polyclinic was completed in 1977, providing accommodation and facilities for a comprehensive range of specialist services. The first stage of the new East Kowloon Polyclinic began operating in phases in July and the Arran Street Child Assessment Clinic was opened later in the year. Mobile dispensaries 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 operated by the Royal Hong Kong Auxiliary Air Force.

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　　　　　　At the end of 1977, 405 clinics were registered under the Medical Clinics Ordinance. Of these, 84 clinics were under the control of a registered medical practitioner, as required under the ordinance, and 321 clinics were exempted from this requirement. 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

Since an integration programme that began in October, 1973, the Family Health Service has further expanded. It now provides a comprehensive health care programme for women of child-bearing age and for children from birth to five years. There are 38 maternal and child health centres and 41 family planning centres on Hong Kong Island and in Kowloon and the New Territories.

　　　　　　The government-subvented Family Planning Association of Hong Kong runs a further 26 clinics that provide vasectomy, female sterilisation and sub-fertility services as well as advice to youth. The association, a non-profit-making voluntary agency, has three main centres on Hong Kong Island, in Kowloon and in the New Terri- tories. In addition to running clinics, it conducts educational programmes for schools and community agencies; runs training programmes for professionals, such as mid- wives, teachers and social workers; organises information and publicity campaigns; and carries out clinical trials and surveys.

　　　　　　Motivational work also is done in marriage and birth registries and community centres, and among the floating and rural populations. Special efforts were made. during the year to promote male responsibility in family planning and to provide more services for youth.

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 for each pupil and also covers the board's adminis- trative expenses.

　　　　　　The School Health Service, a government responsibility, deals with the environ- mental health and sanitation of school premises and the control of communicable diseases. School health inspectors undertake routine school inspections while health officers immunise schoolchildren against infectious childhood diseases.

Mental Health

The Mental Health Service provides full-time care for all types of psychiatric patients at the 1,921-bed Castle Peak Hospital. A further 300 beds are available at the Lai Chi Kok Hospital for long-term patients. 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 now being built at Princess Margaret Hospital is expected to be completed in 1980.

　　　　　　The concept of treating patients at 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 hospital inpatient

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services. Occupational, social and recreational facilities are provided in all centres. Voluntary agencies also help rehabilitate patients before they resume 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 professional advice on matters affecting the health and safety of workers.

　　　　　　　In the construction of the mass transit railway, a large number of people are working in compressed air. All such workers are medically examined, and advised on the symptoms of decompression sickness and what to do if these occur. Hospitals and doctors also have been alerted to watch for decompression sickness.

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

Dental Service

The Government Dental Service operates 31 clinics. It undertakes dental care for all monthly-paid government servants and their dependants, and offers limited treatment for government hospital inpatients, prisoners and training centre inmates. Emergency treatment is provided for the public at certain clinics.

　　　　　　　Construction work on the eight-storey MacLehose Dental Centre in Morrison Hill, Wan Chai, began in June. It will be completed in September, 1978, and accom- modate dental surgeries, a training school for dental nurses and a children's dental clinic.

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

Port Health

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

　　　　　　It provides facilities for vaccinating and issuing International Vaccination Certi- ficates. It also inspects and eradicates rats from ships on international voyages and issues International Deratting Certificates. The service provides medical assistance to ships in the harbour and transmits free medical advice to ships at sea. It maintains a 24-hour service for inspecting incoming passengers by sea and air, and grants radio pratique to ships from clean ports.

　　　　　　　Epidemiological information is exchanged regularly with the World Health Organi- sation in Geneva and its western Pacific regional office in Manila, along with several neighbouring countries.

Special Services

The Institute of Pathology maintains clinical pathology and public health laboratory services for the government and a consultant service for the government-assisted

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sector. Vaccine is produced at the Institute of Immunology. Studies have been carried out on viral hepatitis, poliomyelitis, influenza and rubella.

　　　　　　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 hazard to the public. Research is being conducted on the epidemiology of nasopharyngeal carcinoma.

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

Drug Abuse

Drug abuse is a serious and long-standing problem in Hong Kong with social, cultural, economic, legal, medical and psychological implications. In recent years, Hong Kong has been relentlessly stepping up its anti-narcotics efforts and there are indications that the overall problem has been contained.

The exact number of addicts in Hong Kong is not known, but it has been estimated at between 60,000 and 100,000. Typically, the addicts are males over 21 from the lower income groups, working in unskilled occupations, and with five years or less education. They are generally single or, if married, are usually separated from their families. Most addicts in Hong Kong use 'hard' drugs. It is believed that about 90 per cent of the addicts are on heroin and the remainder mostly on opium. Based on a conservative estimate of 60,000 addicts each spending $30 a day on drugs, the total sum involved would come to a staggering $650 million a year. Although more addicts are using hypodermic needles to take heroin, most still use the traditional fume-inhalation method, commonly known as 'chasing the dragon'. The reasons generally given by addicts for experimenting with drugs are the influence of friends, curiosity and an urge for fun and 'kicks'. Some also say they use heroin to increase sexual ability and pleasure, to relieve fatigue, to mitigate the pain of certain diseases and to escape from the frustrations of life.

The government spends more than $44 million a year on anti-narcotics work, which can be broadly divided into four main areas - treatment and rehabilitation, law enforcement, preventive education and publicity, and international co-operation. Co-ordination of work in these four areas, carried out by various government depart- ments and government-subsidised voluntary agencies, is the responsibility of the Action Committee Against Narcotics (ACAN). The committee also is the sole advisory body to the government on all policy matters relating to narcotics and is serviced by the Narcotics Division headed by the Commissioner for Narcotics.

In the treatment and rehabilitation of addicts, the government adopts a multi- modality approach aimed at providing a wide range of treatment programmes to suit different categories of addicts. Under the out-patient methadone treatment pro- gramme run by the Narcotics and Drugs Administration Division of the Medical and Health Department, there are now four methadone maintenance centres and 17 methadone detoxification clinics, including one opened in Cheung Chau in October, 1977. As a result of successful law enforcement action, which has severely curtailed

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the supply of illicit drugs and forced prices up dramatically, the number of addicts seeking methadone treatment has been increasing steadily. During 1977, the total registration of addicts at the 17 detoxification centres rose from 7,102 in January to 10,638 in December. A total of 209 addicts completed their treatment and, at the end of the year, 2,194 addicts were still attending centres each day. The year also was busy for the methadone maintenance programme, with the number of patients rising to an all-time high. Some 1,616 patients were registered for treatment at the four methadone maintenance centres. The average daily attendance was 3,144 at the end of 1977, compared with 2,894 a year earlier. Although methadone maintenance and methadone detoxification differ from each other (the former offers methadone as a substitute for 'hard' drugs and the latter aims at weaning an addict off drugs by gradually reducing the daily dosage over a number of weeks), flexibility is exercised by permitting patients to switch from one programme to the other at their own request. The over-riding aim is to encourage patients to continue treatment for as long as their individual circumstances dictate.

The Society for the Aid and Rehabilitation of Drug Addicts (SARDA) provides a large-scale voluntary and residential treatment programme. SARDA has two in- patient treatment and rehabilitation centres one for up to 500 men on the outlying island of Shek Kwu Chau and the other for a maximum of 30 women on Hong Kong Island. Complementing the work of these two treatment centres are six regional aftercare centres, three intake units, two clinics and three hostels. The two treatment centres, which operate on an 'open-door' basis by allowing patients to leave at any time, provide treatment ranging from a week-long course that allows addicts to under- go physical withdrawal from drugs to a 180-day course that includes work therapy and rehabilitation.

　　　　　　A milestone in the development of Hong Kong's drug addiction treatment facilities came in July with the opening of the world's first out-patient acupuncture-electro- stimulation centre at the Tung Wah Hospital. This new method suppresses withdrawal symptoms through the electric stimulation of a pair of acupuncture needles inserted subcutaneously into the concha of both ears of a patient. The programme, which is being used to gauge the feasibility of making this type of treatment available on an out-patient basis, is sponsored by the United States National Institute on Drug Abuse (NIDA) and the Hong Kong Government. During the six months up to the end of 1977, some 505 addicts were admitted for treatment.

　　　　　　All these programmes, together with the Prisons Department's compulsory treat- ment programme carried out in four drug addiction treatment centres, are catering for more than 14,000 people at any one time, including those on aftercare.

　　　　　　Another major effort made during 1977 to boost Hong Kong's anti-narcotics tech- niques was the implementation of a plan to set up a computerised Central Registry of Drug Addicts. The new registry, which replaces the government's five-year-old registry system for drug addicts, promises to provide more accurate and up-to-date information on Hong Kong's overall drug problem. This will enable government policymakers to keep themselves ahead of the changing patterns of drug abuse. With the help of a Swedish consultant from New York, preparations for the new registry went into full swing in the second half of the year. When the registry becomes fully operational in mid-1978, it will be able to produce comprehensive statistical

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reports on a regular basis and reveal, among other things, the trends and character- istics of drug abuse and whether the problem is spreading to any new areas. Such information will be extremely useful to the government in planning its anti-narcotics efforts in the most cost-effective manner.

　　　　　　On the prevention of drug abuse, the government launched its biggest-ever pre- ventive education and publicity campaign in 1977. Work in this area focused on foster- ing public awareness of the problem and preventing young people from experimenting with drugs. The campaign consisted of a series of projects spread throughout the year and was aimed at different target audiences.

　　　　　　Externally, Hong Kong continued to play an active role in international action against drug trafficking and drug abuse. Close co-operation was maintained with the United Nations and other inter-governmental agencies such as the Colombo Plan and the International Criminal Police Organisation (Interpol). In November, the government sponsored a United Nations drug law enforcement training course in Hong Kong for senior police and Customs officers from various countries. In August, a government officer experienced in drug prevention was sent to Pakistan, where he attended a six-day national workshop on drug abuse prevention as a consultant. During the year, Hong Kong made its third annual contribution of $100,000 to the United Nations Fund for Drug Abuse Control (UNFDAC). The money will be used to support UNFDAC's worldwide control efforts, which include opium poppy crop substitution programmes being conducted in the so-called 'Golden Triangle'. This opium-growing area, where the borders of Thailand, Burma and Laos meet, supplies virtually all of Hong Kong's opiate drugs.

　　　　　　Although the abuse of psychotropic substances (commonly known as 'soft' or synthetic drugs) in Hong Kong is not yet a problem, the government believes that timely preventive measures must be taken. In January, the government took the first step to tighten controls on psychotropic substances by including amphetamines, a stimulant, and methaqualone, a tranquiliser, in the Dangerous Drugs Ordinance. Under this ordinance, penalties for serious offences involving amphetamines and methaqualone will be comparable to those involving opiates - a maximum of life imprisonment and a fine of $5 million.

Medical Fees

A nominal charge of $1 a visit is made at government general and specialist outpatient clinics for medicine and diagnostic investigations. No charge is made for people attending maternal and child health, tuberculosis, social hygiene and leprosy clinics. Treatment at certain remote clinics and on floating clinics also is free. The daily maintenance and treatment fee for patients admitted to the general wards of govern- ment hospitals was raised from $3 to $5 on April 1. For those who cannot pay this fee, provision has been made for it to be either waived or reduced. A limited number of 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 Bachelor of Surgery and Bachelor of Medicine degrees that have been recognised by the

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　　　　　　General Medical Council of Great Britain since 1911. Both the government and the university maintain a post-graduate training programme. Opportunities also are available for doctors to sit higher professional examinations in Hong Kong by arrangement with various bodies.

　　　　　　The university produces 150 doctors a year. A further 100 a year will eventually graduate from Hong Kong's second medical school, 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, from 1980, dentists will be trained at a dental school to be set up at the University of Hong Kong.

　　　　　　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. In addition, other officers are sent abroad to qualify as pharmacists, occupational therapists, dietitians, speech therapists, audiology tech- nicians, clinical psychologists, chemists and scientific officers.

　　　　　　　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 also are courses for training enrolled nurses in general nursing and psychiatric nursing. One-year courses in obstetric nursing for registered nurses are available.

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

Environmental Hygiene

The work of the Urban Services Department includes street cleaning, collecting and disposing of refuse and nightsoil, managing public toilets and bathhouses, and dis- posing of the dead. It operates as the executive arm of the Urban Council in the urban area and comes under the Director of Urban Services in the New Territories. Each day, the department collects an average of 2,450 tonnes of refuse and junk. Of this, about 1,500 tonnes is burnt at two refuse incinerators at Kennedy Town on Hong Kong Island and at Lai Chi Kok in Kowloon. The remainder is disposed of at controlled tipping sites. All streets and lanes are swept at least once a day. In some parts of the city, the frequency is stepped up to eight times a day. Streets are washed and road gullies emptied once a week. Nightsoil is collected free of charge. The need for this service is continuing to decline as old buildings are replaced by new buildings fitted with proper sewage disposal systems. Some 2.81 million gallons of nightsoil were collected in 1976-7. The department provides and maintains 198 public toilets and 57 public bathhouses in Hong Kong, Kowloon and the New Territories. Apart from a few coin-operated toilets, all these are open to the public without charge.

Controls

　　　　　　District supervisory staff, consisting of health inspectors, overseers and foremen, regularly patrol all public streets, lanes and other public places to ensure that street

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　　　　　and house refuse is promptly removed and that environmental cleanliness is main- tained.

The Food Section continues to monitor imported foods, such as meat, poultry, frozen confections and milk, to ensure that satisfactory standards of health and quality are maintained. Local food and animal products intended for export also are inspected and certificates issued where necessary. Food sampling for chemical analysis and microbiological tests are undertaken to protect public health.

Food laws are updated to keep abreast of new developments in the field of food technology. Recommendations and standards set by the World Health Organisation and countries that lead in this field are considered for local application to improve general standards of quality and control. During the past year, selected food inspec- tors attended a number of overseas courses to gain first-hand knowledge of the latest developments in food science and food control.

Rodents and major insect pests were controlled by regular systematic inspections and disinfestations, including the prevention of malarial mosquito breeding with source reduction methods and weekly larviciding on Hong Kong Island, in Kowloon and in some populous areas in the New Territories. In the urban areas, prosecutions were instituted against people who allowed mosquito breeding on premises under their control. The Pest Control Advisory Unit of the Urban Services Department provided the necessary technical advice.

Markets

Construction of the Bowrington Road Market began in July. This new market, costing an estimated $7.5 million, will replace the existing temporary market under the Canal Road flyover. The new structure will incorporate an innovation in market design: a cooked food centre, accessible by a passenger lift, is to be provided on the roof of one of the two two-storey market buildings, which will be connected by a pair of pedestrian footbridges over Wan Chai Road. The northern block of the market proper will be provided with an escalator from the ground to the first floor to enable customers to circulate more easily, and the southern block will be built on a semi-basement design to increase the viability of market stalls.

　　　　　　To ensure maximum use of scarce land resources in the urban areas, the Urban Council accepted the policy that as many additional Urban Council facilities as practicable be provided in future market buildings, including a restaurant. The first of the market buildings to incorporate a restaurant will be the Sham Shui Po Market, now under active planning.

Hawkers

Hawking remained a profitable activity during the year and there was no appreciable decrease in the number of street traders. Some improvement in environmental control over Hawker Permitted Areas and other concentrations of hawkers was achieved through enforcement action taken by general duties teams and the Hawker Control Force.

　　　　　　Towards the end of the year, consideration was being given to increasing the number of general duties teams to help bring about a more permanent improvement in the hawker situation.

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A survey of wall-stall hawkers was completed during the year and the operators were given an opportunity to apply for licences. The hawker records system was completely overhauled to provide an efficient means of processing applications and renewing hawker licences.

　　　　　　The Centre Street Hawker Centre, completed in September, is Hong Kong's first two-storey indoor hawker centre and the first to be equipped with custom-built hawker stalls featuring built-in electricity and water supply points. The split-level building has a hawker centre, a cooked food centre, a children's playground, a public toilet and a refuse collection point.

Abattoirs

―

The urban areas are served by two abattoirs at Kennedy Town on Hong Kong Island and at Cheung Sha Wan in Kowloon. Both are operated by the Urban Services Department on behalf of the Urban Council. During the year, 3,111,640 animals were slaughtered in the two abattoirs, a 2.6 per cent increase over the 1976 total.

　　　　　　To cope with the ever-increasing number of pigs being slaughtered, a site adjacent to the Cheung Sha Wan Abattoir was acquired for the construction of lairage space for an additional 4,000 pigs. Building work has begun and is expected to be com- pleted in mid-1978.

Work on mechanising the cattle dressing lines in the Kennedy Town Abattoir is now in hand. Once this is completed in mid-1978, similar work will be carried out at the Cheung Sha Wan Abattoir.

　　　　　　Production at the Kennedy Town by-products plant increased 30 per cent after it was modernised in March.

Services in the New Territories

　　　　　Unlike the other two regions covering Hong Kong and Kowloon, which are within the jurisdiction of the Urban Council, the New Territories Region of the Urban Services Department is under the direct jurisdiction of the government. The region looks after environmental hygiene, cleansing, hawkers and markets, slaughterhouses, recreation and amenities, pest control, and cemeteries and crematoria in the New Territories.

　　　　　　The region works closely with other government departments operating in the New Territories with a common aim of providing better services and facilities for residents. It also is the responsibility of the region to ensure that facilities and services are balanced against the rapid land and housing development being undertaken in the New Territories, particularly in the three new towns of Tsuen Wan, Tuen Mun and Sha Tin.

　　　　　　During the year, the New Territories Regional Headquarters were expanded con- siderably to improve the quality of services and to cope with the demand for new services. Additional posts were created in the Administration, Secretariat, Transport, Cleansing, Licensing, and Recreation and Amenities Sections. The enlarged headquar- ters will enable the region to play a more positive role in all policy and operational matters in the New Territories.

A 16-kilometre stretch of the Kam Tin River and its tributaries at Yuen Long that had long been polluted by wastes discharged from pigsties and farms was cleared

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during the year. The operation took a special taskforce of 25 men 50 days to complete. A similar clean-up along the section of the tributaries of the River Indus, between the Kowloon Canton Railway line and Tai Po Road to the east of Wo Hop Shek, started in June and was completed in October.

　　　　　　Some 29 Urban Services projects were completed during the year. These projects, mostly public works items, provided a wide range of urban services, including markets, cooked food bazaars, playgrounds, gardens and refuse collection points.

To cater for the popular pastime of swimming, 25 gazetted beaches in the New. Territories are managed by the Urban Services Department. During the year, Butterfly Beach, Pui O Beach and two beaches at Cheung Sha were provided with life-saving and first-aid 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 that provide free facilities for conducting inexpensive funeral services. The Tung Wah Group of Hospitals also provides facilities for funeral services on a non-profit-making basis. Construction of a new funeral depot to replace the one at Hung Hom is now under way.

　　　　　　It has been the policy of both the Urban Council and the government to promote cremation as an inexpensive but dignified method of disposing of the dead. During the year, 37 per cent of the dead were cremated. In July, work started at Kwai Chung on a crematorium that is expected to come into service in November, 1978. A start was made in November on another crematorium in Kowloon to replace the Diamond Hill crematorium. It is scheduled to be completed by mid-1979. These two projects, together with the existing crematorium at Cape Collinson, will provide an even distribution of cremation facilities throughout Hong Kong Island, the Kowloon Peninsula and the New Territories.

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Housing and Land

IN October, 1977, the Governor summed up the government housing drive when he said that the 'housing programme is now in top gear. From 14,000 flats this year, completion will rise to 20,000 next year and more than 40,000 in 1979-80 with capacity for about 250,000 people. About five to six years of this rate of completions should break the back of the problem as we have known it. This is a prodigious amount of housing by any standards - and it will certainly change Hong Kong. But I think we all agree that, in this respect, Hong Kong needs change.'

Hong Kong's housing problem has stemmed from the population increasing seven- fold since the end of World War II. In 1945, the population was 600,000; by the end of 1947 it was about 1.8 million; now it is more than 4.5 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 also was 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 1,012 square kilometres. Reclamation over the years has boosted this to about 1,045 square kilo- metres, 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 govern- ment stepped in and, just 53 days later, the Public Works Department had built 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 pro- gramme was under way.

　　　　　　Today, more than two million people, or 46 per cent of the population, live in government-subsidised accommodation in Hong Kong. During 1977, 101,900 people moved into Housing Authority accommodation, making a total of almost two million in the Housing Authority's 64 public housing estates, with a further 131,010 people 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 rent it can afford. This means

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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 accommodation and overcrowding is a serious problem.

Home Ownership

In 1976, the government announced its intention to promote home ownership in the lower-middle income groups by building 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.

The working party reported in September, 1976, that the purpose of the scheme was to provide flats for purchase by families with incomes up to $3,500 a month, and public housing tenants who were willing to surrender their existing tenancies irrespec- tive of income. Eligible buyers will be able to buy at prices below those prevailing in the open market. On the strength of a government partial guarantee against default, special mortgage arrangements have been negotiated with leading banks to provide for a standard repayment period of 15 years, interest rates of between 7 and 9 per cent a year, and a minimum down payment of 10 per cent of the sale price. These arrangements compare very favourably with open market terms.

The Housing Authority will act as the agent of the government in designing, develop- ing, marketing and managing the flats, and sites have been identified with a capacity of 35,000 flats. The programme envisages the completion of 8,500 flats in 1979-80 and between 5,000 to 6,000 in each of the successive years to 1985-6. The flats will range in size from 34 to 55 square metres, each having a living room, two or three bedrooms, kitchen, toilet, and bath or shower. The standards will compare with those produced by good private developers.

The Housing Authority

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 temporary housing, squatter control and clearance, and advises the government on housing policy.

　　　　　　The authority meets bi-monthly but, to ensure that business is despatched effec- tively, six committees have been set up: appeals, building, finance, management, operations and home ownership. The executive arm of the Housing Authority is the Housing Department.

During the year, the government introduced new financial arrangements for the Housing Authority to allow it to continue, without impediment, with its large and growing construction programme. The scale of operations, aimed at providing public housing for a further 1.5 million people in the next 10 years, is indicated by the fore- cast expenditure of nearly $4,000 million on housing projects, excluding land costs, over the period.

Previously, the authority was required to pay land premium at one third of the full market value less formation costs, and to pay interest of five per cent on money

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borrowed for construction. However, under the new arrangements, the authority's outstanding debts to the government were converted into a straight government con- tribution assessed conservatively at more than $5,000 million. In future, for the rented housing programme, land will be provided to the authority free of premium, and drawings from the Development Loan Fund for new constructions will be repaid over 40 years interest-free. On the other hand, the grants paid by the government to cover the recurrent deficits on the old resettlement estates have been withdrawn.

New Estates

During 1977, the Housing Department considerably expanded its construction staff

formation and building contracts were let, compared with a total of 25 in 1976.

　　　　　　During the year, six new public housing estates were opened, bringing the number under the management of the Housing Authority to 64 with 371,000 flats.

　　　　　　　Lai Yiu Estate in Tsuen Wan was opened in early January and building work was fully completed in August. It will house some 16,200 people in 2,411 flats. The three twin-tower blocks and one slab block of two-bedroom flats are built on a commanding site of 13.9 hectares above the Kwai Chung Valley, making this the least dense of all Housing Authority estates. Community facilities include two primary schools, two secondary schools and kindergartens. A centrally-situated commercial centre includes a market, shops, banks and three floors of parking, with restaurants at first-floor level. Residents can admire the view from a terrace in front of the complex.

　　　　　　The first phase of Cheung Ching Estate - the first on Tsing Yi Island, near Tsuen Wan - was completed in April. This phase comprises 3,039 self-contained flats in four twin-tower blocks and one slab block of two-bedroom flats for a population of some 19,500, and includes a local shopping centre with a market, a restaurant and car parking. Further contracts were let during the year, but a considerable amount of site formation and building remains to be done. When the whole estate is completed in 1981, it will house some 56,000 people in 12,000 flats.

Yue Wan Estate, the ninth public housing estate on Hong Kong Island, was opened in May, offering a total of 878 self-contained domestic flats in its first phase of con- struction. The entire estate, when fully developed in mid-1978, will house about 13,100 people in 2,220 flats built in three seven-storey blocks and one 22-storey building. As well as the usual shops, a free-standing community hall is a feature of this estate. The first phase of Nam Shan Estate in Kowloon, comprising 880 flats in three domestic blocks of 12 storeys, was opened in July. This estate is intended to be the first stage of the redevelopment of the old Mark I Tai Hang Tung Estate, with population of some 32,000. About 3,333 square metres of shopping space, eight cooked-food pavilions, a market and separate car parking are included in this first phase.

　　　　　　Building work for Wo Che Estate in Sha Tin is divided into four phases of which the first - totalling 2,169 flats in three twin-tower blocks - was opened in July. These flats vary from 32 to 39 square metres and are let at monthly rentals ranging from $285 to $345. A feature of this estate is the provision of pedestrian bridges and decks linking all the domestic blocks to the central shopping centre and commercial com- plex, thus providing maximum safety and convenience for residents. Other facilities

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will include three kindergartens, three primary schools, three secondary schools, a welfare hall, two children's centres, two youth centres, two nurseries and social welfare agencies. Wo Che Estate, when fully developed in 1979, will have 6,000 flats for 40,000 people and, together with the adjoining Lek Yuen Estate, will form a single community of more than 60,000 inhabitants.

In August, the first batch of flats became available at Tai Hing Estate, at Tuen Mun New Town. A 30-storey cruciform block design was adopted by the Public Works Department for this estate, and new mechanised building methods were used in its construction at a cost of some $160 million. The first phase of Tai Hing offered 4,500 flats in three 30-storey cruciform blocks and one seven-storey slab block. Construc- tion work, to be carried out in two stages, is scheduled for completion in early 1979 with an eventual population of 55,000 people. General community facilities include a commercial complex, a large number of shops and shop stalls, banks, clinics, restaurants, a community centre, nurseries, recreation centres for children, educational services, a police station, and fire and ambulance units. A bus terminus will provide services to Yuen Long, Tsuen Wan New Town and other districts.

Estates Under Construction

At the end of the year, a further 17 estates were under construction, with four more under piling or site formation. Limited land resources in urban areas saw the exten- sion of public housing to various districts in the New Territories, mostly concentrated in three developing new towns - Sha Tin, Tsuen Wan and Tuen Mun. The authority also started building the first estates at Tai Po and on Ap Lei Chau Island, opposite Aberdeen. The Tai Yuen Estate at Tai Po, when fully developed in the middle of 1980, will have its own educational, commercial, social and welfare facilities and form a modern, self-contained township for 32,000 people, doubling the present population of the market town of Tai Po.

Construction work for Ap Lei Chau Estate is divided into two phases, with the first phase progressing smoothly. When fully completed in early 1981, this estate will house about 20,000 people in 3,809 flats. Commercial and social services will be centred in a three-storey commercial complex. To stimulate residential and industrial growth on Ap Lei Chau, a multi-million-dollar bridge is under construction to link the small island with Aberdeen.

In Tsuen Wan New Town, Cheung Shan Estate is expected to be finished by October, 1978. It will provide homes for 10,800 people in 1,600 flats. Three domestic blocks are being built on 5.5 hectares of land, giving a population density of about 790 people to half a hectare.

Also in Tsuen Wan, building work at Shek Wai Kok Estate began at the end of 1977, making this the 14th public housing estate to be constructed in this new town. Situated just below Cheung Shan Estate, construction is divided into four stages, of which the first will be completed by the end of 1979 and the last in 1981. There will be eight domestic blocks, providing a total of 5,677 flats for about 34,000 people.

In East Kowloon, three new estates are taking shape and will be ready in early 1980 and mid-1981, providing a total of 22,200 self-contained flats for 134,500 people. They are Shun Lee, Ngau Chi Wan and Fu Shan estates. Fu Shan, the smallest of the three, is expected to be fully completed in the middle of 1978 and offer some 1,600 flats.

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　　　　　　At the end of 1977, piling work began for the new Sha Kok Estate in Sha Tin - the third estate in the fast-expanding new town. Located across the Shing Mun River channel from Lek Yuen, the new estate occupies a site of about 10.5 hectares and, when completed in three phases, will accommodate about 40,000 people in more than 6,000 flats. This housing project is partially financed by a loan of US$20.5 million made to the Hong Kong Government by the Asian Development Bank.

At Tuen Mun New Town, two more sites have been allocated to the Housing Authority for the construction of the two adjoining estates of On Ting and Yau Oi. This will be a massive project housing up to 85,000 people in 18 domestic blocks linked by covered walkways, footbridges and subways to commercial areas.

On Hong Kong Island, the Wah Fu Estate extension will be completed in early 1978, providing 1,430 flats for about 10,700 people.

New Designs

Much thought has been given to the standards to which the authority's housing should be built for the future. It is difficult to keep a proper balance between the urgent needs of today, and the rising aspirations of tomorrow. As Hong Kong grows more prosperous, there will be an increasing demand for better homes, and the authority is determined to build flats that will be regarded as satisfactory for decades to come. Steady improvements are being made in the provision of fittings within flats. All new contracts include such items as folding security gates at flat entrances, wash basins on balconies and a communal television antenna. The standard of space alloca- tion also has been improving for some years, and it must be expected that the demand in future will be for more spacious standards.

The authority is constantly seeking new methods by which blocks of flats can be built more efficiently and, if possible, more cheaply and in a shorter time. Tenders have been framed to allow contractors to put forward modern construction systems involving the use of semi-industrialised components. One such scheme at Wah Fu Estate extension involves an experimental method using large metal formwork. Another scheme under the Public Works Department at Tai Hing Estate, Tuen Mun, involves pre-cast floor slabs as permanent formwork, in addition to large metal formwork.

Redevelopment

One of the authority's long-term policies is to improve and update the living environ- ment in older estates. The major aspect of this policy is the redevelopment of the 12 Mark I and II estates, which were built between 1954 and 1964 to rehouse fire victims and squatters, and which are still occupied by about 450,000 people. Projects in four estates Shek Kip Mei, Tai Hang Tung, Chai Wan and Tai Wo Hau - are being carried out.

At Shek Kip Mei/Pak Tin, where redevelopment was first introduced, three new blocks at Pak Tin will be completed in early 1978, while five new domestic blocks at Shek Kip Mei will be ready for occupation by nearly 10,000 people by early 1979. Eight old Mark I blocks have already been converted to provide self-contained flats and a further 10 will follow. Including Upper Pak Tin Estate, the total cost of this redevelopment scheme will be about $206 million which, on completion in 1981, will house about 62,000 people.

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In Hong Kong, four new domestic blocks will form Phase I of the redevelop- ment of Chai Wan West Estate. These blocks, built on the site of two demolished Mark I blocks and due for completion in 1979, will provide 900 flats for 5,500 people. Also included in this phase of development are 11 shops, sitting-out areas and recrea- tion grounds, with trees and playground equipment.

Work has begun on the first phase of redevelopment of Tai Wo Hau Estate to provide a total of 1,160 modern flats for 6,900 people.

This phase involves the construction of a double-H block of 26 to 28 storeys on a site made available by demolishing two old blocks. Also included in this phase is an 18-storey slab block to be built on a nearby site acquired from the Urban Services Department.

In addition to these redevelopment schemes, 80 new premises were provided during the year by the conversion, on a number of estates, of non-domestic areas into self- contained flats. An additional approach was developed during the year in Block II at Lok Fu Estate, where the original 121 Mark I small rooms were converted into 75 flats, each providing a living room, private balcony, sink and cooking bench with individual toilets in the centre of the block. The expense of this conversion can only be justified where the redevelopment of the block is not expected for some years. However, since many tenants in these older estates are eager to move to new estates, it may be possible to extend this scheme to other areas.

Eligibility

During the year, 79,500 eligible persons were allocated public housing in these categories: victims of fire and natural disasters; compassionate cases recommended by the Social Welfare Department or the Medical and Health Department; tenants of properties acquired for urban renewal; tenants of early housing estates under redevelopment; residents of temporary housing areas; relief of overcrowding in public housing estates; waiting-list applicants; junior civil servants and pensioners; and quarters for caretakers and shop tenants.

　　　　　　However, the normal way to obtain accommodation is through the waiting list. Any family of three people who are residents of Hong Kong can apply to the Housing Authority for accommodation. The waiting list is long; since 1967, when the general list was opened, 364,000 families have applied. Applications are considered in date order, but accommodation is only offered to those found, on investigation, to be living in poor housing conditions, and the family income has to be within a scale related to family size. This scale, which is adjusted periodically in accordance with the index of Nominal Average Daily Wages for Industrial Workers, was revised during the year. At the end of 1977, the scale ranged from $1,800 a month for a family of three to a maximum of $2,600 for a family of 10 or more.

The Housing Authority's Management Committee also amended the waiting list criteria to permit two-person households to register. In future, husband and wife couples, instead of the present minimum of three persons, will be able to register on the waiting list for public housing. This will enable newly-weds to delay starting their families for a few years, thus getting a better financial start to their marriage, rather than deciding to have a child soon after marriage so that they could apply under the three-person eligibility limit.

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Management

A number of management improvements were made during the year. The door-to- door system of rent collection has now been extended to all but the oldest Mark I and II estates, with a consequent improvement in arrears in the older estates to only 1.4 per cent of the monthly rent roll.

In August, 1977, the rents of seven flatted factory estates were increased for the first time. In November, the rents of two of the most popular estates, North Point and Sai Wan, also were increased by 10 per cent. However, the increase resulting from the 1977 rate revaluation for about 350,000 flats was borne either by the authority or the government.

Overcrowding in the older estates remains a major problem and some 30.2 per cent of families are still living in an area providing less than 2.2 square metres a person. However, with the increasing number of new estates being completed, all such families are now able to apply to transfer to new flats. The flats they vacate, being usually smaller and at a lower rent, are made available to the smaller families of new tenants. Other families wishing to move into a different flat can register with the Mutual Exchange Bureau.

Maintenance and improvements are major items, particularly in the older estates. Some $46 million was spent in 1976-7, mainly on planned preventive maintenance of both buildings and electrical systems, painting contracts, and estate improvements such as recreation areas and lighting. Some 216 small playgrounds in estates were taken over from the Urban Services Department. All estates are now cleaned by contract rather than direct labour, resulting in considerable savings.

Close contact is maintained with tenants through regular visits by estate staff. In addition, regular meetings are held with the 577 Mutual Aid Committees and other residents' associations provided for such purposes as the Keep Hong Kong Clean and Fight Violent Crime Campaigns. The authority is concerned that these contacts should be extended.

Temporary Housing

In addition to its estates, the Housing Authority also builds and manages temporary housing areas for homeless people not eligible for permanent housing. Over the years, considerable improvements have been made in this type of housing.

　　　　　　All temporary housing areas now provide the basic structure of a wooden frame with an asbestos roof. Space is allocated to families according to family size, and tenants construct their own internal and external walls. Facilities provided include concrete hardstanding; house water and electricity supply; central lavatory facilities, usually with water-borne sanitation; paved and grassed common areas; security guards; and comprehensive management services. Family units are let at a modest, monthly rental of 50 cents for each 929 square centimetres and are proving most acceptable to tenants.

During the year, 10 new temporary housing areas were completed, with a total capacity of 20,542 people. Some two older areas housing 3,778 people were closed and the sites used for permanent development or new temporary housing. A total of 22,439 people entered temporary housing, and improvements were made in the amenities of a number of areas by providing more recreational and sitting-out facilities.

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Transit Centres The authority also provides short-term accommodation in transit centres for people made homeless by fires or natural disasters. Because of the increased calls on tem- porary housing during the year, it was necessary to use transit centres to accommodate some people waiting for space in temporary housing areas. Two additional centres were opened, increasing total capacity to about 2,500 people. A programme of im- provements, including the provision of partitions, additional electric power points and ceiling fans in older centres, also was initiated.

Squatter Control

In Asia, and many other parts of the world, one consequence of rapid population growth and increasing urbanisation has been the proliferation of squatter areas in and around major cities. In Hong Kong, almost all unused Crown land is occupied by huts. The squatter problem has been tackled since the early 1950s by clearing ^ squatters only when the land they occupy is required for permanent development, and concentrating control measures aimed at preventing new squatting in areas required for future development. Coupled with a massive programme of public housing for low-income families, this policy aims at a gradual and steady reduction in the amount of squatting. Evidence of the soundness of this approach was provided by the 1976 Squatter Survey, which showed that squatter population in the urban areas, plus Tsuen Wan district, had been reduced by 137,000 since the last survey was made in 1964.

The primary purpose of squatter control is to contain the growth of new squatting on Crown land either by preventing the erection of new structures or by demolishing them as soon as possible after building starts. In 1976, a General Squatter Survey was carried out in the urban areas and in the Tsuen Wan district to create a new baseline for more effective squatter control, and to extend eligibility for ex-gratia allowance or factory reprovisioning on clearance to previously unsurveyed squatter shops and workshops. At the same time, the Executive Council approved a revised squatter control policy whereby certain areas susceptible to new squatting were designated as intensive patrol areas to be patrolled daily.

During the year, 8,882 new huts and illegal extensions to surveyed huts were demolished by the Squatter Control Division in the urban areas and Tsuen Wan district. The number demolished in 1976 was almost twice that figure, indicating a marked reduction in the pressure to squat.

　　　　　　As Hong Kong's economy emerged from the recession of the previous two years, the government accelerated its development of the infrastructure and many projects that had been deferred were added to the 1976-7 programme. Coupled with the recovery of private development activity, this meant that the demand for land clear- ances was considerably increased and altogether, 434 hectares were cleared, compared with 256 hectares in 1976.

Only squatters occupying structures surveyed in 1964 are eligible for direct public housing on clearance, while occupants of post-1964 huts are provided with temporary housing. Development clearances during the year involved the rehousing of 12,776 people in permanent public housing and a further 15,547 in temporary housing. A further 5,824 people were cleared from dangerous buildings, buildings involved in urban renewal, temporary housing areas and structures involved in natural disasters. Of these, 4,550 were allocated permanent housing and the balance temporary housing.

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Electrification of Squatter Areas

　　　　　The Lion Rock pilot scheme to provide a legal power supply to squatter structures was extended during 1977. At December 31, a total of 20,000 people living in 3,900 structures in 13 squatter areas were benefitting from the electrification scheme. In the past, the majority of residents lived without any power while the minority illegally tapped supplies from public lighting. The extension of a proper supply in these areas has greatly improved living conditions.

Town Planning

The overall objective of town planning in Hong Kong is to ensure that limited land resources are planned as far as possible to meet the competing needs of various users; to provide sufficient land for public and private housing, commerce and industry, recreation and community uses; and to improve the quality of the living environment for the population. There are 39 planning areas in the urban areas, of which 22 are now covered by draft or approved statutory plans.

　　　　　　The enactment of the Town Planning (Amendment and Validation) Ordinance introduced a new field of work into the Town Planning Board. Under the ordinance, the board may provide in the notes for each plan for itself to exercise a certain discre- tion over the use of land in each type of zoning indicated. Both draft and statutory plans had to be revised to include notes outlining what variations of the basic user could be included in building projects without the board's approval, and what varia- tions the board would consider permitting on application. Each plan had to be published with the new notes under the statutory procedure. During the year, some 80 applications for permission to include users, subject to the board's discretion, were considered. A considerable amount of planning work was involved in their processing. The number of applications appeared to increase with the revival of building development.

　　　　　　The board also spent much time considering objections to draft statutory plans, in- cluding hearings with objectors to a number of draft Outline Zoning Plans, including those for Tsim Sha Tsui, Aberdeen and Ap Lei Chau. Some amendments were pro- posed and revised plans were published for public inspection.

　　　　　　The Town Planning Office of the Public Works Department provides services to the Town Planning Board and to the Land Development Policy Committee and its sub- committees. The office prepares draft plans for existing and future urban areas, and provides planning advice to other government departments and advisory bodies. It also undertakes planning feasibility studies for new development areas, examines redevelopment proposals and carries out other development control duties.

　　　　　　During the year, planning studies for the future use of released military land were undertaken. Planning proposals for Victoria Barracks were prepared for the considera- tion of a special committee appointed by the Governor in Council to make proposals for the future use of Victoria Barracks. Similar investigations were being carried out at RAF Kai Tak, Sham Shui Po Army Camp and other areas.

　　　　　　　The government decided in early 1976 to proceed with a home ownership scheme to provide 30,000 flats for sale within the public housing sector. Numerous sites were investigated for this purpose. Feasibility studies and consultation work were carried out with the Housing Department and other PWD offices, and planning briefs were prepared and submitted to policy committees for approval.

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The Hong Kong Outline Plan, which provides the framework for all district plan- ning, was under active revision. The plan lays down general planning concepts and policies for future population distribution and land development. It also defines planning standards and locational factors for the provision of community facilities. Draft chapters of the plan were submitted to the Hong Kong Outline Plan Steering Group and to the Land Development Policy Committee for approval. Land use, floor area and building condition surveys were conducted to update the data bank of plan- ning information, and to provide background information for the preparation and revision of draft statutory plans and departmental plans. Background studies for six planning areas, and land use and building condition surveys for 38 planning units were completed.

Many departmental outline development and layout plans for new development areas were prepared and existing plans revised to take account of recent changes in planning policies, planning standards, population forecast, extension of the mass transit railway and other factors. These plans are prepared within the framework of statutory plans and the Hong Kong Outline Plan, and are normally drawn to larger scales and show more detailed planning proposals.

New Towns

The year saw Hong Kong's new town programme move into a new phase that has three different aspects. The first aspect is growth rate. Expressed either in expenditure or in terms of physical construction, figures achieved in 1977 are roughly double those of 1976, and represent a stage in growth where the yearly maximums expected in 1979 and for several years thereafter will be three times the 1977 figures. Growth in population is expected to follow a similar pattern, but two years later.

The second aspect is that of increasing ultimate size. In response to the growing need for public housing, studies continued throughout 1977 to determine the possi- bility of extending the development areas to accommodate larger populations. The studies are taking place wherever the physical constraints of the land appear to provide viable opportunities, such as in Sha Tin, Tuen Mun, Tai Po and Fanling.

　　　　　　The third aspect is that of increasing concern for the environment, both within the new urban areas and in the impact of urbanisation on the countryside and on com- munities. Studies in the development of the urban landscape and landscape impact have been commissioned and completed in Sha Tin, and are under way in Tuen Mun. In the new towns and market towns, the aim of development remains the establish- ment of balanced communities living in a civilised environment in both private and public housing, with adequate local employment and community facilities. J

　　　　　　In Tsuen Wan New Town, to the west of Kowloon, the ultimate planned popula- tion remains at about 900,000 people, compared with 550,000 at the end of 1977. The hinterland of the new town development area allows no scope for extension. The major areas for future development that remain are Tsing Yi Island and the northern area of Tsuen Wan. In the Lai Yiu and Cho Yiu (Phase I) Estates in Kwai Chung and the Cheung Ching (Phase IA) Estate on Tsing Yi Island, where the total ultimate population will be 40,000, the population at the end of 1977 was about 31,000. Major private residential development for 4,000 people at Chai Wan Kok was substantially completed. A redevelopment programme for the old, highly-congested Tai Wo Hau

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Estate completed its first year of work. The programme aims to reduce, within 12 years, the present population of 37,000 to 30,000 housed in new blocks.

Notable among community facility projects in the Tsuen Wan area is the Tso Kung Tam Park, for which the preliminary design has been completed. The park, lying in the northern foothills, will consist of a 38-hectare suburban park in an attractive valley setting and a special Sport and Recreation Centre serving the whole territory. The most significant industrial development has been the start of a 12-year programme to develop dockyards on Tsing Yi Island. Government also has agreed in principle to the extension of the mass transit railway system to Tsuen Wan.

Tuen Mun New Town, which lies at the western extremity of the New Territories, is planned to have an ultimate population of around 530,000 people on about 1,180 hectares of land. Further extension of Tuen Mun into the So Kwun Wat area, cur- rently the subject of a feasibility study, could create further land for additional population. The development of Tuen Mun is planned in three stages. The first stage, at the northern end of Castle Peak Bay, provides 93 hectares of land for a population of 50,000 people. Land reclamation and other engineering work has been completed, and both private residential and industrial development is proceeding rapidly. The first phase of the Tai Hing public housing estate for 24,000 people is complete and the second phase for 22,300 has begun.

　　　　　　　The second stage, which includes reclaiming 70 hectares of land in Castle Peak Bay, covers 124 hectares and will provide for a population of 150,000. The first and second stages will therefore accommodate a population of 200,000 people in a balanced township. Construction of the first public housing development in the second stage - the Sham Shing Estate - began during the year.

The third stage, on which design work has started, will create a further 43 hectares of land and bring the total population of Tuen Mun to 530,000. Landscape consult- ants appointed in 1977 have presented their interim proposals for a landscape master plan for Tuen Mun. Their final report and special area studies will be completed early in 1978. The first carriageway of the new road being built to connect Tuen Mun with Tsuen Wan is nearing completion.

Sha Tin lies at the south-western corner of Tolo Harbour, in the valley of the Shing Mun River and on both sides of Sha Tin Hoi. The development of Sha Tin New Town is divided into two stages, which together will provide 1,740 hectares of land for development and an eventual population of 550,000 people. During 1977, feasibility studies were carried out to consider both the Stage II development, centred mainly at the head of the Sha Tin valley and around Siu Lek Yuen, and two possible extension areas on either side of Sha Tin Hoi. These extension areas could provide a further 270 hectares of land for development and accommodate a population of about 130,000 people.

　　　　　　　Planning and engineering work for Stage I development is well in hand and will gain further impetus with the start of Stage II. Lek Yuen public housing estate, with a population of 18,300 people, was completed in 1976 and two secondary schools in the estate are under construction. Work on Phase 1A of the Wo Che Estate is substantially complete and provides for a population of 14,000 people. Primary and secondary schools are under construction. The combined population of Wo Che and Lek Yuen estates will be in the region of 58,000 people.

100

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Reclamation of 98 hectares of land for the Sha Tin Racecourse and the Jubilee Sports Centre has been completed. Some 51 hectares of land formed in the borrow areas for the racecourse reclamation will be handed back to the government for the Housing Authority home ownership scheme and for private residential development.... Reclamation by private developers is well under way to create 67 hectares of land, 47 hectares of which will be given back to the government for various uses, including a new hospital and land for industry. The remaining 20 hectares will be developed for residential use. During the year, two hectares of land were formed for light industry. The widening of the Sha Tin Bridge and the construction of the second Lion Rock Tunnel were completed, and refurbishing of the existing tunnel began. Major improve- ments to the Lion Rock Tunnel Road and the Tai Po Road to raise them to trunk road standards continued, A master plan for the Sha Tin Town Centre was com- missioned, and consultants completed a master landscape plan for Sha Tin New Town and the possible extension areas.

　　　　　　Besides the progress of the three new towns, planning and engineering work con- tinued in the market towns of Tai Po, Fanling, Shek Wu Hui and Yuen Long. At Tai Po, which will have an ultimate population of about 220,000 people, five hectares of land has been reclaimed for the first public housing estate, work on which has started. In the neighbouring towns of Fanling and Shek Wu Hui, development has begun to eventually join the two towns together to allow for a population of about 170,000 people. Construction of a temporary housing area begun in 1977 is almost complete. Work will shortly begin on the formation of commercial, residential and community sites. At Yuen Long, work has started on the provision of land for development for commercial, residential and community uses.

　　　　　　Development also is being carried out in other rural townships and on outlying islands. As with the new towns and market towns, the aim in these areas is to provide balanced communities related to public housing. At Sai Kung (Tui Min Hoi), the formation of land for light industry, a public housing estate and fishermen's housing is under way, and engineering works are in progress at Mui Wo, Tai O and Cheung Chau. The total planned population for these townships is 81,000 people. Their development forms part of the overall plan to provide an improved living environment for people in the rural areas of the New Territories.

Private Building

The improved financial and economic climate of 1976 was maintained in 1977. There was continuing investment in the real estate market, interest rates remained low and the supply of money, both from local and foreign sources, remained plentiful. This was reflected in 889 building proposals being submitted for approval during the year, compared with 807 in 1976. In terms of expenditure on completed buildings, the year recorded $2,435 million, representing an increase of 41 per cent over the 1976 figure.

　　　　　　The programme for the Acceleration of Private Development Scheme, which was introduced by the government in 1974 to stimulate private development during a period. of recession and which resulted in the establishment of the Priorities Committee of the Buildings Ordinance Office, was reviewed in April. Because of the significant improvement in the economic situation in Hong Kong, the original objectives of the programme had been overtaken. While the government recognised that a priorities

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system for dealing with certain projects was still necessary, the criteria for the award of priority needed revision. This revision resulted in a reduction in the number of priority cases to about 60 per cent of the original list.

The Centralised Processing System for dealing with new building plans, which came into being following the introduction in October, 1976, of amendments to a number of Building (Administration) Regulations, proved to be working smoothly and to be of benefit to private developers, authorised persons and registered structural engineers. From April 1, 1977, all plans submitted to the Building Authority for approval were required to be in metric units with the sole exception of those plans that related to documents previously submitted in Imperial measurements.

There were 20 meetings of the Authorised Persons' and Structural Engineers' Regis- tration Committee, which has the statutory function of helping the Building Authority consider applications for inclusion in the Authorised Persons' Register and the Structural Engineers' Register. There were 85 applications for inclusion in these two registers, compared with 111 in 1976. Graduates of the University of Hong Kong and overseas professionals intending to practise in Hong Kong continued to form a large percentage of the total number of applicants. A total of 45 new authorised persons and 26 new structural engineers were registered during the year.

Improved recruitment of staff for the Buildings Ordinance Office during the year allowed for the creation of two new divisions. This expansion enabled the Buildings Ordinance Office to increase the number of inspections of building works in progress and permitted a greater degree of attention to the control of unauthorised building works. The Soils Engineering Division was re-named the Geotechnical Engineering Division and became a part of the PWD's new Geotechnical Control Office. At the same time the division was expanded and became better able to handle the increased demands being made on its services in the private building sector.

'Building projects in the New Territories worth mentioning included the Sha Tin Racecourse of the Royal Hong Kong Jockey Club, which was in its final phases of construction, and the Sea Ranch Resort at Yi Long Wan, Lantau Island, on which site formation and infrastructure work had started. On Hong Kong Island, the Arts Centre and 12 residential tower blocks 28 to 29 storeys high in Tai Koo Shing and Tai Koo Valley, Quarry Bay, were completed. In addition, proposals were approved for the construction of two 42-storey blocks in Central to be known as New Gloucester Tower and New Marina Tower, for the 41-storey new Windsor House in Causeway Bay and for the 52-storey Sun Hung Kai Centre on the Wan Chai waterfront. The latter site realised the highest price ever at a government auction. On the other side of the harbour, Phase I of the Hong Kong Polytechnic development programme received its occupation permit and Phase II progressed steadily.

　　　　　　The Mass Transit Railway Corporation initiated several projects involving joint participation by private real estate developers in the construction of residential and commercial accommodation over its operational buildings. Plans were approved for buildings constituting a small township of about 25,000 people on a 10-hectare podium over the Kowloon Bay Depot, on which work was well advanced. Plans also were approved for a 28-storey commercial building on the site of the old General Post Office, which will be integrated with the future MTR Pedder Station, and for a twin-tower 36-storey commercial complex over the future Admiralty Station.

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The Dangerous Buildings Division of the Buildings Ordinance Office continued to deal with the demolition or repair of dangerous buildings, routine re-inspection of dilapidated buildings and repair of defective drainage systems. Following reports sub- mitted by the government's consulting engineers, more dangerous or potentially- dangerous slopes and retaining walls were identified. The proportion of post-war framed buildings inspected during the year showed an increase over that of pre-war structures. During the year, some 14 buildings were closed and demolished under statutory order, compared with 35 buildings in 1976. Repair notices amounted to 283, compared with 334 the previous year, and a total of 48 notices were served requiring the repair or renewal of defective or inadequate drainage systems.

Management of Buildings in Multiple Ownership

During 1977, 128 new owners' corporations were 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 to ensure its maintenance and to uphold environmental standards. By the end of 1977, the total number of corporations was 1,014. The City District Offices and the New Territories District Offices offer assistance and advice to owners either on incorporation or on the formation of Mutual Aid Committees in these buildings. Mutual Aid Committees have similar aims to owners' corporations; they are not, however, statutory bodies and membership is open to all residents of buildings, both owners and tenants. By the end of 1977, 2,466 Mutual Aid Commit- tees were 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 World War II and was later 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 pre-war levels (standard rent) while excluding from control any new or substantially reconstructed buildings.

Increases in rents are permitted periodically, the latest being in December, 1977, when the legislation was amended to provide for permitted increases to standard rent to be raised to 200 per cent in the case of domestic premises and 500 per cent for business premises. A Tenancy Tribunal is appointed to fix or determine the amount of rent payable for pre-war premises and to deal with other tenancy matters.

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

There is provision in the legislation for the exclusion of premises and so, year by year, the stock of pre-war buildings is gradually diminishing. The usual purpose of exclusion is redevelopment but, where premises are vacated, a landlord can re-let free from further control. Possession usually is only obtained subject to the payment of compensation to the protected tenants. The Rating and Valuation Department

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provides a mediatory and advisory service to deal with many of the practical problems arising from these controls and, in particular, where exclusion proceedings are launched to ensure that tenants and sub-tenants understand their rights.

Rent Control of Post-War Premises

Comprehensive legislation affecting post-war domestic premises in the private sector has been continuously in force in one form or another since 1962, apart from the period between 1966 and 1970, and is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinances. This legislation 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, nor to tenancies entered into after December 31, 1975, for a term of three or more years. Tenancies held in the names of public bodies, corporations, foreign or Commonwealth governments, partnerships or firms also are excluded. The life of the present legislation has been extended to December, 1979.

　　　　　　　For 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 commissioner for a 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 deter- mined by the commissioner, and the current rent and dividing by three. This is subject to a maximum increase of 21 per cent of the current rent for the majority of premises, other than certain larger houses and flats. No further such increase is permitted, other than by agreement, within a period of two years. However, the factor is variable and can be altered by resolution of the Legislative Council, as was done in 1977 when it was reduced from four to three. Increased rates charges may be passed on to tenants and sub-tenants as increases in rent and, where the landlord incurs expenditure of $5,000 or more on improvements, the rent may be increased by 20 per cent a year of the amount expended.

　　　　　　　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. The commissioner has wide powers under the ordinance and issues certificates to help in disputes about the primary user of premises. Where landlords or tenants are dis- satisfied 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, will have 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 help meet the shortage of domestic accommodation.

　　　　　　　The views of local associations and societies having an interest in property matters are made known to the government through meetings with their nominated repre- sentatives. In addition, a standing committee representing concerned government departments reports regularly to the Secretary for Housing on the working of the legislation.

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In May, 1977, the Governor appointed a Special Committee on Land Production, under the chairmanship of the Secretary for the Environment, to prepare a study of potential areas of development in Kowloon and the New Territories. The committee's report, published in November, 1977, showed that the existing programme of works provided for a fairly steady programme of land production up to 1981-2 and might be drawn out further than scheduled. The committee is examining how a continuing land production programme could be maintained to meet demand after 1981-2.

Administration

Land administration in Hong Kong Island, Kowloon and New Kowloon is the respon- sibility of the Director of Public Works, who also is the Building Authority and the chairman of the Town Planning Board. The Crown Lands and Survey Office of the Public Works Department, comprising the Land and Valuation Branches staffed by professional officers, is responsible for carrying out land sales, land and property valuations, land acquisition, estate management and clearance services in all three areas. A section that records and analyses all sales and lettings in the urban areas monitors market trends and factors affecting the value of land and buildings. The Secretary for the New Territories is responsible for land administration in the New Territories. His supporting staff for this purpose are professional officers seconded from the Crown Lands and Survey Office and assisted by departmental technical staff.

Policy

All land in Hong Kong is owned by the Crown, which sells or grants leasehold inter- ests. In the early days, 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 from July 1, 1898, and therefore terminate three days before the expiry of the lease from China.

The government's land policy is to optimise the use of land within the framework of development plans. Most land available for commercial, industrial or residential (other than public housing) development in the urban areas is sold by public auction, which ensures its most economic use. Regular auctions are held by the government and a six-monthly provisional Crown land sales forecast is published twice a year. In the New Territories towns, however, where much of the development land has to be resumed, a high proportion of development land is disposed of by exchanges to the former owners, who are thus enabled to take part in the development of the new town. Leases for certain special purposes, which have special site requirements or other factors that would make a public auction undesirable, are offered for sale by public tender. Among these special purposes are sales of land for capital intensive industries that introduce higher technology and more technological skills into Hong Kong and that could not be appropriately housed in multi-storey buildings. These sales are only initiated in response to a formal application, and in certain circumstances may be concluded by private treaty subject to the approval of the Governor in Council.

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Land for social purposes, such as schools and hospitals to be developed by private non-profit-making bodies, also is granted by private treaty. Land for public housing is allocated to the Housing Authority, and grants at a proportion of premium also are made to the Hong Kong Housing Society for the construction of low-rent housing. It also is government policy to modify, in certain areas, old lease conditions that severely restrict the development permitted on a lot to allow development complying with the town planning requirements applicable to that area. A premium equivalent to the difference in land value between the development permitted under the existing lease and that permissible under the new lease terms is normally payable for any modification granted.

　　　　　　A premium also is payable if a lot held on an expired lease is regranted to the former owners. Special arrangements have been introduced to deal with expired leases where the ownership was divided among a number of flat-owners on the lot. In the case of the owners of property, the leases of which give them the option to renew the lease for a further term, special legislation was enacted in 1973 to introduce a new Crown rent related to the rateable value of the property situated on the lot.

　　　　　　The premium for commercial and residential sites is usually payable soon after the sale. But where the premium exceeds $10 million, it may be paid by equal annual instalments bearing interest at 10 per cent a year. The premium for industrial sites, irrespective of the amount, can be paid either by four equal instalments over two years without interest or by 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 a year.

Important Transactions

Arrangements were made during the year for the handing back to the government of further areas of land previously used by the British Ministry of Defence, including an additional 2.11 hectares at Sham Shui Po Camp.

The private treaty grant of land at Brick Hill for Ocean Park was completed and this new major attraction opened to the public in January, 1977.

　　　　　　In the New Territories, a number of important land transactions for private residential and industrial projects took place during the year. Among these was the Hong Lok Yuen Garden Estate, two miles north of Tai Po, for which a lease was granted in March for the development of a private residential estate to provide accommodation in a rural garden setting for about 6,000 people. This project involves more than 51 hectares of former agricultural land. The owners will spend $30 million developing the site in three stages over an eight-year period. The development will include limited commercial facilities for the residents, as well as community and clubhouse facilities.

　　　　　　On Tsing Yi Island, two areas were granted in February for special industrial purposes. One involved some 4,790 square metres granted by private treaty to Chemsyn Limited for the manufacture and storage of chlorine, hydrogen and textile chemicals and ancillary purposes. The other was a parcel of foreshore and sea bed, 1.2 hectares in area, granted by private treaty to Tai Tung Industrial Equipment Limited for the manufacture, assembly and maintenance of machinery and industrial equipment, including the storage of such machinery and equipment and completed

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plant, components, materials and allied goods. A foundry may be permitted if required.

Revenue

During the 1976-7 financial year, revenue from land transactions in the urban area totalled $271.7 million, compared with $88 million the previous year. In the same period, revenue from land sales in the New Territories was $126.4 million. The demand for temporary occupation of Crown land continues and, when possible, such land is made available under the terms of a short-term tenancy. During 1976-7, revenue from this source of letting was $15.6 million in the urban areas and $17.6 million in the New Territories.

A further $8.6 million in revenue came from letting buildings owned wholly or partly by the government.

Control

The Government is continuing its policy of fencing vacant cleared sites 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 clearances to be effected more quickly, usually without litigation.

Land Office

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

Since early 1975, the Land Office has assumed responsibilities for the enforcement of covenants contained in Crown leases. Assistant registrars inspect certain classes of buildings periodically 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.

During the year, the number of instruments registered in the Land Office rose 20.5 per cent to bring the total to 133,638, compared with 110,936 in 1976. More detailed

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　　　　　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 321,822 people, an increase of 22,346 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 involving the complete redevelopment of one of the older areas in Hong Kong, the property acquisition programme and the construc- tion of the new road linking Hollywood Road and Queen's Road, Central, were completed during the year. Five sites were sold for a total of $81.15 million. The last stage of roads and drainage construction began in October and is expected to be finished in late 1978. The programme of clearance and demolition of properties, and the associated rehousing of occupants, continued and should be completed in 1978. Acquisition of land for open space and for government, institutional and com- munity uses continued in the densely-populated areas of Western district, Wan Chai and Yau Ma Tei. In the 1976-7 financial year, 31 properties were acquired by agree- ment at a cost of $16.3 million. In addition, nine properties were resumed at an estimated total compensation of $3.6 million. For the Hong Kong Housing Society's urban improvement scheme at First and Second Streets in Sai Ying Pun, 36 private lots were resumed during the year.

　　　　　　Private lots in areas zoned for open space and for government, institutional and community uses on outline zoning plans exhibited or approved under the Town Plan- ning Ordinance cannot be redeveloped unless permission is obtained from the Town Planning Board. Where such permission is refused by the board, owners wishing to dispose of their interests are invited to approach the Crown Lands and Survey Office to negotiate the surrender of their interests for cash compensation. Similarly, the Crown is prepared to open negotiations for the surrender of interests in lots zoned for a public purpose on a published town plan, without first requiring the owners to go through the Town Planning Ordinance permission procedure.

Acquisition for Public Purposes

The acquisition of private properties in both the urban areas and the New Territories is often unavoidable if public works projects are to be implemented. In particular, the new town development programme involves acquisition of large areas of agricultural land. Acquisition is carried out either by negotiation or by invoking powers under the Crown Lands Resumption Ordinance or, in cases of private properties required for the mass transit railway, the Mass Transit (Land Resumption and Related Provisions) Ordinance. If agreement cannot be reached on the compensation amounts, both ordinances make provision for such cases to be referred to the Lands Tribunal for determination. The tribunal was established in 1975 under the provisions of the Lands Tribunal Ordinance.

　　　　　　As mentioned earlier, large areas of land required for development in new towns in the New Territories are acquired by exchanging the land surrendered to the Crown for the right to develop sites in the new development areas.

The Streets (Alteration) Ordinance and the Public Reclamations and Works Ordi- nance also enable the government to undertake public works projects that may affect

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private property and private rights. Provision also is contained in these ordinances for disagreement over compensation to be referred to the Lands Tribunal.

　　　　　　During the 1976-7 financial year, a total of $15 million was paid in compensation for land and buildings required for government projects in the urban areas, excluding urban renewal and environmental improvement acquisition work. About 46.5 hectares of private land also were acquired for the implementation of new town layouts and public works projects in the New Territories.

Survey

The Survey Branch of the Crown Lands and Survey Office provides 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 Photogrammetric Unit moved into full production following the completion of a training programme for operators. The unit continued to work in two shifts throughout the year and, in completing some 30 mapping projects, managed to keep abreast of its priority schedule. In anticipation of future demand, an order was placed for a fifth plotting machine.

Connection of the existing traverse system to the revalued trigonometrical stations continued, and a programme of levelling to connect bench marks and trigonometrical stations was completed.

The demand for boundary surveys continued and, in the urban areas, was mainly concerned with government projects and redevelopment of private lots. As expected, the demand increased significantly in all districts of the New Territories in line with rapid developments.

　　　　　　On the map production side, further progress was made in converting topographic series to metric specifications, and 15 sheets comprising the new metric 1:20,000 dual language series of topographic maps were completed. Revision and improvement in specification is the next task in this series, coupled with the production of a monotone 1:10,000 to replace the Imperial unit L882 series. Volume 1 - Hong Kong and Islands - of the official guide book was well received and Volume 2 - Kowloon and the New Territories - was launched at the end of the year. Demand for the Countryside series remained at a high level, and all three sheets were revised and reprinted. The fourth sheet of the series, covering New Territories East, is programmed to start next year. The Official Guide Map remained the individual best-seller. Since its conception in 1972, 60,000 copies have been produced.

　　　　　　The production of basic maps at the S.I. Scale 1:1,000 continued during the year, but progress was disappointing mainly because of a shortage of cartographic staff. Production also was adversely affected by the non-availability of metric contours due to the heavy demand on the Photogrammetric Unit for plotting connected with urgent engineering and building projects. Revision of maps at the Imperial scales of 1:600 and 1:1,200 will be necessary for a number of years.

　　　　　　The Public Works Department 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, 134 officers attended various courses and de- partmental examinations were organised for 74 officers.

Social Welfare

福社

新會

THE government undertook a comprehensive review of social security and welfare services during 1977. Following the publication of a White Paper on Rehabilitation in October, three Green Papers dealing with the development of social security, serv- ices for the elderly, and personal social work among young people were published in November.

　　　　　　The White Paper on Rehabilitation heralds a 10-year development programme that envisages spending $126 million on capital works up to 1985-6, raising recurrent expenditure from $121 million in 1977-8 to $232 million in 1985-6, and more than doubling the number of staff engaged in the rehabilitation and care of the handicapped. Because the expansion programme will need to be carried out by several departments and involve participation by voluntary organisations, a Rehabilitation Development Co-ordinating Committee has been established to co-ordinate its implementation.

A review of social security carried out earlier in 1977 concluded that the public assistance scheme was generally sound and well suited to Hong Kong's requirements. However, the Green Paper on the Development of Social Security proposes some extensions and refinements. These include a monthly supplement - amounting to $200 for a family and $100 for a single person - for those forced to rely on public assistance for more than 18 months to meet essential household replacements; a monthly sup- plement of $100 for those on public assistance aged 60 and above, but not eligible for the non-means-tested infirmity allowance (now renamed 'old-age allowance') or dis- ability allowance; and lowering from 75 to 70 the qualifying age for the old-age allowance. Two other changes proposed in the Green Paper are that the old-age and disability allowances be extended to those living in institutions and that an allowance be paid to those who may not qualify for the disability allowance but who, through illness or infirmity, have been unable to work for at least 18 months. These three allow- ances are covered by the welfare allowance scheme as distinct from the means-tested Public Assistance scheme.

　　　　　　It also is recommended that an appeal board be set up as a means of redress for those dissatisfied with the Social Welfare Department's decisions about social security payments.

　　　　　　Hong Kong's social security schemes so far have been non-contributory and financed out of general revenue, with the addition of benefits provided by employers either statutorily or voluntarily. However, existing schemes cannot be relied on to assist those adversely affected by the prolonged sickness, injury or death of a wage earner, either because their incomes are above the Public Assistance level or because

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they do not belong to a clearly-defined vulnerable group. Because employers may be willing to play a more positive role in this area of social security, the Green Paper on Social Security Development proposes the introduction of a centrally-administered semi-voluntary contributory sickness, injury and death benefit scheme. The main aim of the scheme would be to provide a monthly benefit for those off work longer than the maximum period of 36 paid sickness days provided for under the Employment Ordinance, with a lump sum for the heirs of contributors dying before the age of 60. Other benefits payable will depend on actuarial advice. The intention is that the em- ployee should be free to decide whether to join the scheme but, if he does, his employer also would have to pay contributions unless he were contracted out of the scheme. Further consideration of this scheme will depend on public response to the Green Paper. If public reaction indicates widespread demand for such a scheme, the government will proceed to establish on an actuarial basis and will consult employers and employees on the details of the scheme.

　　　　　　The government's main objective in its plans for the elderly is to encourage families to continue to care for their elderly members. Apart from introducing new social security benefits for the elderly, the Green Paper on Services for the Elderly contains proposals to meet their medical and housing needs and for the expansion of home help services. Other proposals include setting up multi-service centres and social centres for the elderly and expanding institutional care, including care and attention facilities.

The rapid extension of recreational and cultural activities for the population as a whole, and particularly for young people, has proved to be highly beneficial to the development of young people into mature and responsible citizens. However, there still exists a small minority of young people who are vulnerable to delinquent influ- ences and who are not attracted to organised activities. The Green Paper on Personal Social Work Among Young People contains new proposals for comprehensive school social work services, a cautious expansion of outreaching social work and co- ordinated programmes of family life education.

The various proposals set out in the White Paper and the three Green Papers call for an additional 3,500 trained personnel by 1978-9, increasing to 6,400 in 1982-3. The main increase is in teachers, nurses and graduate and non-graduate social workers, with a small increase in the number of doctors and para-medical specialists deployed in the rehabilitation field. In 1977-8, funds provided for all the services covered by the White Paper and three Green Papers amounted to $407 million; the new package of proposals envisages recurrent expenditure rising to $719 million by 1982-3, with capital expenditure over the same period amounting to $178 million.

Social welfare development projects carried out in 1977 included the completion of five community halls; extending the public assistance scheme to cover the able-bodied unemployed; implementing the Child Care Centres Ordinance and opening six new government-subvented nurseries; making a start on a new institution to replace the Ma Tau Wei Girls' Home; establishing two homes and a hostel for the elderly; open- ing an advanced training centre for the mentally retarded; and providing more training places for mentally handicapped children.

Responsibility for implementing government policies on social security and welfare programmes rests with the Director of Social Welfare, whose department operates

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through five divisions. They are: the Group and Community Work Division, which aims at the development of social responsibility and community building; the Family Services Division, which is responsible for a wide range of services designed to help individual families and their members; the Rehabilitation Division, which provides services for the disabled; the Probation and Corrections Division, which operates a probation service, correctional institutions for young offenders and services for the courts; and the Social Security Division, which administers the public assistance and other social security schemes. These divisions are further supported by a number of smaller units dealing with training, planning and development, research and evalua- tion, and public relations.

Voluntary agencies also play a significant role in providing welfare services. The majority of these are affiliated with the Hong Kong Council of Social Service, and many are subvented by the government. With diminishing financial assistance from overseas, the voluntary sector has become increasingly dependent on local assistance from charitable funds and donations. The Community Chest of Hong Kong, to which some 72 welfare bodies belong, represents an endeavour by these organisations to co-ordinate their fund-raising activities.

　　　　　　In the 1976-7 financial year, government expenditure on social welfare increased to a total of $348 million.

Group and Community Work

　　　　　Group and community work aims at the social development of individuals, groups and communities, the cultivation of civic responsibilities, the development of leadership and volunteer activities, the improvement of the quality of life and the promotion of harmonious community living. The Group and Community Work Division of the Social Welfare Department operates through a network of community centres, estate welfare buildings and community halls. These bring together neighbourhood welfare services under one roof to offer facilities such as libraries, day nurseries, vocational training classes, clubs for different interest 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 that provides library, social and recreational services to people in remote and isolated villages. It also operates two youth hostels. With the help of the United Nations, an experimental community development project has been carried out in the Tsz Wan Shan Public Housing Estate.

　　　　　　Many voluntary agencies have made a substantial contribution towards the pro- vision of recreational and social services for young people. These agencies are particularly active in providing children's centres and youth centres. They also play an important role in organising play leadership programmes, detached work for young people and counselling services for youth.

Family Welfare Services

Family welfare services are provided to preserve the traditional family ties and to enable individuals and family members to deal with personal and family problems.

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The services are provided on a regional basis and are administered by the Family Services Division. They include counselling on such problems as inter-personal re- lationships, the abuse and ill-treatment of children, and difficulties arising from mental and physical disability, unemployment, illness and sudden loss of the family bread- winner. The division also provides care and protection for children and young girls exposed to moral and other dangers, and the placement of children as well as elderly and disabled people into appropriate institutions. For children found abandoned, lost or in need of protection, the division maintains a reception centre where they are provided with immediate temporary care.

The division also is responsible for exercising, on behalf of the Director of Social Welfare, certain statutory powers under the Protection of Women and Juveniles Ordinance (Cap. 213), the Adoption Ordinance (Cap. 290), the Marriage Ordinance (Cap. 181) and the Offences against the Person Ordinance (Cap. 211).

　　　　　　A new activity is the provision of school social work services to 85 schools. These services enable school children to make the best use of their educational opportunities, and help reduce the drop-out rate by providing advice and help to pupils who have personal or family problems.

　　　　　　A variety of services are provided by voluntary agencies, such as counselling on family and marriage, child care, home help services, foster care and institutions for children and young people with special behavioural and family problems.

Rehabilitation

With the objective of integrating disabled persons into the community through the development of their capabilities, rehabilitation services are provided at 18 centres and institutions run by the Rehabilitation Division and augmented by many voluntary agencies. In 1977, an average of 1,500 disabled people a day received full-day training of various descriptions or worked in sheltered workshops. A further 1,500 benefited by braille and mobility training, audio-metric testing, vocational guidance and em- ployment placement assistance. Residential care facilities are available in some of these centres for the more severely handicapped. Sheltered work places were increased by 100 with the opening of a new workshop at Lek Yuen Estate. Vocational training programmes were stepped up.

　　　　　　The division also is responsible for co-ordinating welfare services for the elderly through liaison with 31 homes and hostels catering for 3,836 people. This represents an increase of three homes or 338 places over 1976 figures. Of the 31 homes, 17 were receiving government subventions to cover recurrent expenses. The home help service was expanded with the participation of the Hong Kong Christian Service. In addition, 40 social clubs were run by the division and voluntary agencies in community centres to provide social and recreational activities for the elderly.

In the voluntary sector, sheltered club places for the mentally ill were considerably increased with the opening of a second sheltered workshop of the New Life Psychiatric Rehabilitation Association at Wong Chuk Hang Estate. Construction work was underway to provide a new training centre at Pok Fu Lam for the Ebenezer School and Home for the Aged Blind. A six-month experimental minibus scheme for the disabled, co-ordinated by the Hong Kong Council of Social Service Committee on Access, was evaluated and provided significant findings on the value of the service.

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　　　　　　However, the most significant development was the establishment, by the Po Leung Kuk, Mental Health Association of Hong Kong and Caritas, of three experimental centres for the severely mentally retarded. Capital and recurrent expenses for the first four years of operation of these centres are being met by the Lotteries Fund.

Probation and Corrections

The Probation and Corrections Division of the Social Welfare Department supervises offenders on probation, operates correctional institutions, and conducts social in- quiries directed by the courts to determine and review sentences. Probation officers are attached to the courts and their duties include supervising offenders, counselling probationers, and organising their participation in educational, social, recreational and community service activities.

　　　　　　To promote community involvement in the rehabilitation of probationers, a volun- teer pilot scheme for probationers was officially launched in October, 1976. This scheme allows a selected number of volunteers from all walks of life to befriend probationers and to give them moral support and practical assistance, such as private tutoring and guidance in the proper use of leisure time. Public response towards the scheme has been very encouraging.

　　　　　　　The division also operates five correctional institutions with a total capacity of 590 boys and girls of different age groups. They are the O Pui Shan and Castle Peak Boys' Homes, which are reformatory schools; the Begonia Road Boys' Home, which is a combination of a remand home, a probation home and a place of refuge; the Ma Tau Wei Girls' Home, which is being reprovisioned; and the Kwun Tong Hostel for work- ing male probationers. Aftercare is provided for boys discharged on licence from the reformatory schools.

Social Security

　　　　　　Social security is provided through the public assistance scheme, the welfare allowance scheme (covering the elderly aged 75 and over and those who are severely disabled), the criminal and law enforcement injuries compensation scheme, and emergency relief in both cash and material aid for victims of natural disasters.

　　　　　　　Public assistance is a means-tested, non-contributory scheme designed to help needy individuals and families who have lived in Hong Kong for at least one year and whose income has fallen below a prescribed level. The scales of assistance are reviewed regularly and adjusted in relation to the cost of living. At present, the rates of assistance are $200 for a single person, $145 for each of the first three eligible members of a family, $120 for the succeeding three and $90 for each eligible member thereafter. Rent, school fees, special diets and other essential expenses also are covered by the scheme.

　　　　　　　On April 1, 1977, public assistance was extended to unemployed able-bodied adults aged between 15 and 55 who, through no fault of their own, are unable to support themselves. To qualify for such assistance, applicants must have two years' continuous residence in Hong Kong and be able to prove that they are actively seeking employ- ment by registering with the Local Employment Service of the Labour Department. An applicant aged between 15 and 17 must apply as a dependent of his family.

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At the end of 1977, the number of active public assistance cases totalled 48,176, compared with 49,899 at the end of 1976. Expenditure on public assistance for the 1976-7 financial year amounted to $147.6 million.

　　　　　　　The welfare allowance scheme (previously known as the disability and infirmity allowance scheme) provides monthly allowances for members of specified vulnerable groups, irrespective of their means, so long as they do not receive care in any residential institution. At present, the scheme provides allowances at the basic rate of $100 a month for those aged 75 and over, and at a higher rate of $200 a month for those who are severely disabled. The number of people drawing such allowances at the end of 1977 was 78,735, an increase of 7,477 over last year's figure. Expenditure on payments in the 1976-7 financial year was $89.6 million, an increase of $11.4 million over the previous year.

　　　　　　The criminal and law enforcement injuries compensation scheme is designed to compensate victims of crimes of violence or those who are accidentally injured by law enforcement officers in the execution of their duties. This scheme also is non- means-tested and non-contributary. In 1977, a total of 220 awards amounting to $6.4 million were made.

Emergency Relief

The Social Welfare Department plays a key role in providing emergency relief to disaster victims. Such relief is provided in the form of hot meals, milk powder for infants and other basic essentials, including blankets, ground mats, eating utensils and toilet accessories. With the demolition of the Happy Valley kitchen in November, 1977, cooked meals were provided solely by the Kowloon kitchen. In addition to material assistance, injury, burial and death grants are available from the Emergency Relief Fund. During the year, assistance was given to 3,466 registered victims in- volved in 98 disasters. Payments made from the Emergency Relief Fund amounted to $2 million.

Training of Social Workers

Social work training is available in Hong Kong at degree, diploma and certificate levels. Both the University of Hong Kong and the Chinese University of Hong Kong award degrees and diplomas in social work. The Institute for Social Work Training, which offered a certificate course for social workers, has been integrated into the Hong Kong Polytechnic as the School of Social Work since September, 1977. The school runs a two-year, full-time training course for non-graduate social workers, a one-year course for child care workers, and other part-time day-release courses for experienced social workers.

The Training Section of the Social Welfare Department is responsible for providing in-service training, which includes refresher courses and staff development courses for social workers employed by the government or voluntary agencies. The Training Section also operates a demonstration nursery that provides a day care service for 100 children and, at the same time, serves as a training ground for child care workers. To help young people who wish to receive social work training, a number of bur- saries and scholarships is offered by the Social Work Training Fund, the Hongkong and Shanghai Banking Corporation, and private donors.

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　　　　　　During the year, a number of research studies were undertaken by the Social Welfare Department's Research and Evaluation Unit. The major projects were an investiga- tion into the potential demand for public assistance and other allowances under the social security scheme, and a study of cases handled by the Family Services Division. A joint venture, undertaken by the unit with the Hong Kong Council of Social Service, studied the social service needs of the elderly.

　　　　　　　In the voluntary sector, studies were made of the school social work programme and subvented nurseries.

Community Advice Bureau

Since the end of 1974, a special voluntary body -- the Community Advice Bureau - has offered help and advice to English-speaking newcomers to Hong Kong. There has been a rapid growth in demand for its services and, in 1977, it helped nearly 5,000 people - more than double the previous year's figure.

The bureau has built up a comprehensive range of information during its three years of operations, and prides itself on being able to give a quick response to virtually any question. During the year, it expanded its role to provide a special information service on summer holiday activities for children and young people. This met with such a warm response that it will become a regular part of the bureau's services. The bureau, which also runs a popular 'Discovering Hong Kong' course twice a year, operates five days a week throughout the year from an office near St John's Cathedral.

URBAN COUNCI | IBRARIES

Public Order

THE Royal Hong Kong Police Force, one of the largest law enforcement agencies in the world, is mainly responsible for maintaining public order among the territory's population of more than 4.5 million. But equally important contributions towards the safety and well-being of the community are made by the Customs and Excise Service - formerly the Preventive Service - the Independent Commission Against Corruption (ICAC), the Prisons Department and the Fire Services Department.

Police

The Royal Hong Kong Police Force became one of the best electronically-equipped law enforcement agencies in the world in 1977 when its second and third command and control centres - in Kowloon and in Kwai Chung - went into action.

The first centre began operating on Hong Kong Island at the end of 1976 and the three centres now cover all major urban areas with a $30 million radio and computer network for fighting crime. Its major feature is a beat radio system that provides instant communication between the control centres and any unit, police vehicle or man with a beat radio. More than 1,650 men on the beat are equipped with these radios.

Before they came into use, the average time taken for the police to reach a crime scene was about six minutes. This has been cut to such an extent that, in one robbery on Hong Kong Island, one constable with a beat radio was on the scene within one minute and four others arrived in the next 60 seconds.

Other developments included the establishment late in the year of a separate police division at Hong Kong International Airport. The move is designed to keep pace with the continued growth of the airport and a new police station will be built to house the greatly increased number of men and women on duty there.

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In line with the policy of bringing the police closer to the people, 24 reporting centres were opened in urban areas during the year 14 of them operating as Neighbourhood Policing Units (NPUs). There are now 87 reporting centres, with 30 of them operating as NPUS, and 46 police stations.

In the New Territories, plans are being made to equip and man four new police stations being built in new towns. Neighbourhood Policing Units and reporting centres also are being set up as the towns grow and a new concept in policing - the Rural Policing Unit is being expanded in an effort to improve law and order in villages. In addition, constables have been posted to live and work in two villages in an experiment that could lead to the introduction of village policemen on a permanent

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basis. The aim is to foster closer relations between the villagers and the police in the same way that Neighbourhood Policing Units operate in urban areas.

　　　　　　Public requests for police assistance throughout the year totalled 258,154 - an average of 707 a day. This was an increase of 15.9 per cent over 1976, reflecting the improved reporting facilities and procedures now available. About 14 per cent of the requests were connected with crime.

In April, the force embarked on its biggest recruiting campaign, with a target of enrolling 3,000 recruits at inspector, constable and cadet level by the end of the financial year. At the end of 1977, the number of applicants totalled 16,651, of which 2,264 were accepted.

In October and November, in a series of meetings, a large number of police rank and file expressed their opposition to the alleged methods adopted by the ICAC in its investigations into corruption in the force.

　　　　　　On October 28, these meetings culminated in a large assembly which marched to Police Headquarters and presented, to the commissioner, a petition summarising grievances against the ICAC. Shortly afterwards, a group of about 40 went to the Operations Department of the ICAC, where an affray took place.

　　　　　　During the following week, there was evidence of unrest in the force and some neglect of duty by its members. Early in November, the Governor announced a partial amnesty, for corruption offences, in the terms specified later in this chapter under the ICAC section.

　　　　　　Other measures which were taken included: the conferring on the Commissioner of Police power to dismiss summarily any officer who disobeys an order issued by him; and the formation of a Junior Police Officers' Association to represent the views of the police rank and file.

Crime

During the year, 56,749 crimes were reported to the police - 5,260 less than in 1976. Crimes that decreased were: robberies, 6,525 (8,895 in 1976); blackmail, 2,840 (4,775); trafficking in dangerous drugs, 1,661 (2,711); burglaries, 5,565 (5,665); and frauds 2,052 (2,412). On the increase were: miscellaneous thefts not associated with blackmail, 11,234 (8,745); serious assaults, 5,039 (4,613); criminal damage to prop- erty, 1,558 (1,375); and indecent assault on females 876 (850).

The overall crime detection rate was 60.6 per cent, compared with 59.7 per cent in 1976.

　　　　　　A total of 21,839 people were arrested, compared with 23,485 the previous year. The number of adult prosecutions decreased by eight per cent to 20,154, but juvenile prosecutions (under 16 years) rose by 7.5 per cent to 1,685.

Triad-Type Crime

Triad intelligence units in districts and divisions were increased during the year, bringing the total anti-triad structure to 532 officers. Of these, 157 are attached to the Triad Society Bureau, while the remainder operate from district headquarters and police stations.

　　　　　　The Triad Society Bureau concentrates on co-ordinating the drive against triad elements and taking offensive action against organised gangs operating territory-wide.

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The district and divisional units concentrate on triad and organised criminal activity within their boundaries. During the year, 1,766 people were arrested for triad-related offences.

Following the introduction of new gambling laws in February, 1977, the incidence of illegal gambling fell sharply, particularly casino gambling and off-course book- making. Raids on illegal gambling establishments resulted in the arrest of 13,522 people and the seizure of $863,821.

　　　　　　Police action was intensified against all types of vice establishments. Many were forced out of business while others adopted a low profile and operated under the guise of legitimate business. Some 3,593 people were charged with prostitution and related offences.

Special Crimes Bureau

The charter of the Special Crimes Bureau was widened during the year to include the investigation of all robberies involving the use of firearms and burglaries in which property in excess of $250,000 is stolen. This extra responsibility led to the strength of the bureau being increased from 43 to 111 personnel, including civilians.

The number of armed robberies totalled 24, compared with 57 in 1976. Some 167 serious crimes were solved, 48 people were arrested on 126 charges and 18 firearms, including imitation firearms, were seized. Notable successes included the seizure of forged United States currency with a face value of $4.2 million and the solving of five cases of police revolver-snatching.

Homicide Bureau

The Homicide Bureau completed investigations into 11 complex or lengthy cases during the year.

Commercial Crime Bureau

　　　　　The Commercial Crime Bureau was expanded in January, 1977, to further investiga- tions into large-scale frauds involving public companies whose shares were floated during the 1972-3 stock market boom. The expansion also provides for more speedy and efficient handling of any breaches of the law that might concern both local and international companies, banks and the investing public.

The Counterfeit and Forgery Section of the bureau met with considerable success throughout the year. Four large seizures were made of forged United States and Malaysian currency with a face value of almost $4 million. In two of these cases, equipment used for printing the notes also was recovered.

Narcotics Bureau

After eliminating several major drug trafficking syndicates between 1974-6, the Narcotics Bureau followed up in 1977 with seizures from among the 'opportunist' groups that formed to fill the vacuum in the illicit trade. The year saw police seize 38 kilograms of opium, 13.8 kilograms of morphine, 86.4 kilograms of heroin and 1.9 kilograms of other drugs.

Drug traffickers have become more cautious and security conscious, and street- level operators, in the main, sell only to known customers. Importers are bringing

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in much smaller consignments, exporters are largely non-existent, and it is now internationally-recognised that Hong Kong is no longer a major drug exporting

centre.

Identification Bureau

To cope with increasing demand, the Identification Bureau set up a fourth scenes of crime team, based at Yuen Long police station in the New Territories.

The Scenes of Crime Section attended 9,177 crime scenes during the year. They found 5,615 fingerprint impressions, of which 770 impressions were identified - involving 251 people in 416 cases.

Throughout the year, 43,334 arrest fingerprint forms were processed by the bureau's Main Fingerprint Collection Section and 23,559 people were identified as having previous convictions. The number of convicted people on record at the end of 1977 totalled 363,303. The section also carried out 26,790 security searches during the year. The Photographic Section supplied 358,433 photographs of crime scenes to divi- sions and units. The Document Examination Section handled 45 cases and examined 129 documents that resulted in 17 positive findings.

Criminal Records Bureau

The Criminal Records Bureau is studying the feasibility of computerising its nominal index, which now lists the names of 700,000 people.

The Modus Operandi Index, which lists the methods habitual criminals use to commit crimes, has already been computerised. Further emphasis was placed during the year on the bureau's microfilming programme, which is considerably relieving the problem of storing criminal records.

Criminal Intelligence Bureau

The Criminal Intelligence Bureau was reorganised in May, 1977. Its charter includes collating information on active criminals and crime with territory-wide implications, carrying out research into organised criminal activity and disseminating intelligence reports.

Ballistics Office

The Ballistics Office is Hong Kong's authority on arms, ammunition and related subjects. There has been a steady increase in crime involving firearms in recent years and case figures for 1977 were up more than 20 per cent on the previous year.

Weapons examined included revolvers, pistols, teargas guns, air guns, imitation firearms, home-made guns and toy cap guns that had been converted to fire missiles. During the year, nine outstanding armed robbery cases were solved by matching ammunition found at robbery scenes with guns seized at a later date.

Communications

The Communications and Transport Branch plans, installs and maintains a sophis- ticated 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 1,170 vehicles of 19

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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 1,516. Of these, 1,251 are drivers and most of the remainder are engaged in the communica- tions field. Personal beat radios are being phased into use in most urban areas and a computer-controlled command aspect was installed during 1977.

A special radio facility provides rapid contact with International Criminal Police Organisation (Interpol) stations throughout the world.

Traffic

Following an easing-off in recent years, the number of registered motor vehicles increased from 191,746 to 207,521 during 1977. This gives a traffic density of 190 vehicles for each of the 1,092 kilometres of road in Hong Kong. Although these figures reflect increasing prosperity, they have given rise to a number of traffic control and management problems.

　　　　　　A record 13,879 traffic accidents were reported and resulted in 380 people killed and 17,457 injured. These casualties were partly attributable to the increase in motor vehicles, but another factor was the disruption to traffic flow brought about by an unprecedented volume of construction work. Many diversions and obstructions affected both motorists and pedestrians, and the latter were responsible for a very high proportion of the accidents.

The enforcement of parking regulations continued to pose difficulties. Insufficient parking facilities are available for the number of motor vehicles and, for every 10 lorries, there is only one legitimate parking space. Because of these circumstances, police endeavour to use judgement and discretion.

　　　　　　To deal with the increasing problem of pollution caused by motor vehicles, legisla- tion was introduced to allow police to measure exhaust emissions with smoke meters. Some 5,962 prosecutions were made.

A total of 132,466 fixed penalty tickets were issued for moving traffic offences during the year. The tickets, introduced late in 1976, enable motorists to pay fixed fines for a number of minor traffic offences without having to appear in court. The system has resulted in a considerable saving of administration work for both the police and the

courts.

　　　　　　During the year, police began operating, on behalf of the Hong Kong Road Safety Association, a double-decker bus fitted out as a mobile road safety exhibition. Road safety lectures given in schools by police officers continued to play an important part of the road safety programme.

Marine Police

　　　　　The Marine District covers the main ports and 1,872 square kilometres of Hong Kong waters, and polices 243 islands and isolated communities. It has an establishment of 1,343 officers and men and a fleet of 45 launches.

In addition to coastguard and patrol duties, the launches frequently make casualty evacuations from outlying islands to hospitals in the urban areas. During the year, 367 mercy missions were carried out. Some 1,773 requests for police assistance, mostly from isolated areas and from pleasure craft in distress, were received and acted upon.

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　　　　　　Because of the rural nature of the outlying islands, crime levels in Marine District are lower than in the remainder of Hong Kong. In 1977, 284 crimes were reported and, of these, 173 were solved. An increasingly important aspect of policing the islands is the need to cope with the thousands of campers, hikers and picnickers who flock there at weekends and on holidays.

Marine CID investigates all forms of illegal immigration involving syndicates. A total of 151 illegal immigrants were arrested by marine police.

Community Relations

Emphasis continued to be placed during the year on the need to promote good rela- tions with the public. There are now 16 Police Community Relations Officers working throughout Hong Kong to bring about a closer understanding between the police and residents, business people and community organisations within particular areas. The Commissioner of Police frequently meets community leaders in all parts of the territory.

An important link with the future citizens of Hong Kong is the police-oriented youth organisation Junior Police Call, which marked its third anniversary in August with a membership of 200,000 and a week of celebrations. The main objectives of the club are to promote good citizenship, to provide a range of leisure activities for the young to encourage them to help people who are less fortunate, and to give them the opportunity to work with the police against crime. The club has weekly television and radio programmes in Chinese, and columns in the Chinese and English Press.

In addition, weekly police report programmes - 15 minutes in Chinese and 5 minutes in English - are screened on all five television channels. They feature crimes the public might help solve by coming forward with clues, information and other assistance.

The police and the Hong Kong General Chamber of Commerce together sponsor a Good Citizen Award scheme to encourage the public to help combat crime. Almost 500 people aged from 10 to 70 have received certificates and financial awards amount- ing to more than $500,000 since the scheme began in 1973.

During the year, preparations were made for a third Young People's Help the Police Competition to be launched in April, 1978. The four major prizewinners will receive a two-week holiday in the United States. The winners of the two previous competitions visited Britain and Australia.

　　　　　Members of the public are able to register complaints about police procedures or misconduct by police officers through a Complaints Against Police Office.

The Complaints Against Police Office was expanded in September, 1977, from 10 to more than 40 police and civilian personnel. The office monitors all investigations into complaints made against members of the force, and investigates all complaints of misconduct by police officers other than those which allege criminal offences (which are passed to the CID).

Also in September, at the request of the Commissioner of Police, the UMELCO Police Complaints Group, an independent body with the task of reviewing the hand- ling of such complaints, was established. The group comprises six unofficial members of the Executive and Legislative Councils, the Solicitor General and two senior police officers, with the administrative secretary of the UMELCO Office and a police officer serving as joint secretaries. The group meets fortnightly.

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The force establishment at the end of the year totalled 22,164 all ranks, an increase of 1,506 on the 1976 figure. Strength increased by 1,503 to total 20,814 at the end of the year - 6.09 per cent short of the authorised establishment. The women police element of the force is set at 10 per cent of the overall establishment. During the year, 41 women inspectors and 244 women constables were taken on strength, lifting the total complement of women to 1,738. The number of civilian staff rose by 153 to 3,217.

　　　　　　To keep pace with continuing expansion, extensive recruitment throughout the year achieved a total of 10,465 applications for constable appointments and 3,696 for local inspectorate appointments. Some 341 inspectors, including 193 from over- seas, were taken on strength, compared with 211 in 1976, 153 in 1975 and 168 in 1974. The number of constables taken on totalled 1,795, compared with 1,738 in 1976, 1,454 in 1975 and 2,222 in 1974. The educational qualifications of recruit constables continued to improve. Of those appointed, 1,432 had secondary education qualifica- tions and a further 186 possessed the qualifications required for recruit inspectors.

Training

The Police Cadet School doubled its strength of cadets to almost 600 following the opening of a second school site at Dodwell's Ridge, Sheung Shui, at the beginning of the year. The extra cadets were admitted at intervals in five intakes at Dodwell's Ridge and at the main school site at Fan Gardens, Fanling. It was the school's first departure from an annual intake and, in the long term, it is intended to accept new cadets every two months.

Both the Fanling and Sheung Shui sites are temporary pending the building at Shuen Wan, near Plover Cove, of a permanent school to hold 1,200 cadets. Work on the site formation is expected to begin soon and the permanent school should be completed late in 1980.

At Fan Gardens, the school's fourth anniversary was marked in September with the passing out of the third group of cadets to complete two years' training.

Of the 146 cadets, 123 went on to join the police as constables. All but one of the remainder opted to join either the Customs and Excise Service, the Fire Services Department or the Prisons Department. The exception - the first cadet to opt not to join any of the disciplined services went to England to continue his studies. He hopes to return to Hong Kong later and join the police as an inspector.

　　　　　The Police Training School at Aberdeen was reorganised during the year to provide for most forms of basic and continuation training including detective training previously handled by the Detective Training School. Only marine police and drivers are now trained elsewhere.

　　　　　　At the end of 1977, there were 977 recruit constables and 220 probationary inspec- tors in the school, and a further 88 officers of all ranks were under continuation training. The school operated at full capacity during the year. Throughput totalled 2,780 constables and 488 inspectors for basic training, and 399 all ranks for continua- tion training.

Standard basic training lasts 20 weeks for recruit constables and 36 weeks for probationary inspectors, including eight weeks' Cantonese tuition for overseas officers.

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The syllabus was further revised to give more practical and leadership training, with greater emphasis on community involvement and police-public relations. Continua- tion training aims to bring serving officers up to date on new legislation, procedures and techniques, and to reinforce their earlier training and experience.

　　　　　　Among the police who attended the year's detective training courses were officers from the Immigration Department and the Customs and Excise Service, as well as officers from overseas police forces. Representatives from a number of overseas governments and police forces also visited the school to study training methods.

The Police Tactical Unit, based at Fanling, trains members of the force in all aspects of crowd control and internal security. It also provides a reserve of manpower to deal with situations requiring large numbers of trained police.

During the year, 1,320 men and 168 women underwent training at the unit, which gives all members of the force a thorough grounding in anti-riot and crowd control tactics. In addition to performing crowd control duties at the racecourse and football matches, members of the unit carry out house-to-house inquiries, searches for missing persons and general anti-crime operations. The Blue Berets, as they are widely known, are invariably at the scene of any kind of trouble.

The unit is recognised as one of the world's leading internal security training centres. During the year, police officers from Brunei, Fiji, Jamaica and the Bahamas took part in courses. A number of shorter visits also were made by representatives of several other police and armed forces, predominantly from South-east Asia.

The Marine Police Training School provides full-time in-service training for both regular personnel and for auxiliary police undertaking marine work. During the year, 296 regular officers of all ranks and 61 auxiliaries completed courses on seaman- ship, engineering, wireless telegraphy and coastal navigation. In addition, 47 officers and men took specialised courses at the Hong Kong Polytechnic, where new radar navigation training courses for marine launch commanders and senior non-commis- sioned officers were introduced in August.

Auxiliary Police

The Royal Hong Kong Auxiliary Police Force is made up of 4,236 part-time men and women police. Throughout 1977, a daily average of 834 auxiliary officers carried out a wide variety of constabulary duties alongside the regular police. Some 48 officers received commendations for good work.

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.

Customs and Excise Service

The Preventive Service was renamed the Customs and Excise Service in August to bring it into line with the functions of its counterparts overseas, and to give it a formal title that is recognised throughout the world.

The name change has not affected Hong Kong's free trade policies. The absence of a general Customs tariff and the unrestricted movement of cargo in and out of Hong Kong continues, except where control is necessary for a specific reason.

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The Customs and Excise Service, a disciplined force controlled by the Director of Trade, Industry and Customs, is made up of 1,271 officers.

The service collects and protects revenue derived from four dutiable commodities - 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 under the Dutiable Commodities Ordinance, which is administered by the service. Some $680 million in revenue was collected on dutiable commodities in 1976-7, compared with $558 million in 1975-6. Seizures and confiscations involved four illicit stills, 454 litres of fermenting materials, 1,128 kilograms of tobacco, 25,005 litres of liquor and 114,284 litres of diesel oil. A total of 627 people were arrested or summonsed, and fines amounting to $351,000 were imposed by the courts.

The service also is responsible for preventing and suppressing illicit trafficking in narcotics, other dangerous drugs and acetylating substances under the Dangerous Drugs Ordinance, the Pharmacy and Poisons Ordinance and the Acetylating Sub- stances (Control) Ordinance. More than half of the service is committed to anti- narcotics activities. Apart from intercepting 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 307 kilograms of dangerous drugs - including 93 kilograms of heroin and 84 kilograms of morphine - and 944 litres of acetic anhydride. A total of 1,260 people were arrested for narcotics offences. Of these, six were charged with manufacturing dangerous drugs and 11 with trafficking. The remainder were charged with simple possession or with smoking dangerous drugs in a divan. The market value of the narcotics and acetic anhydride seized totalled more than $16 million.

The service is the sole agency for enforcing the Copyright Ordinance. During the year, a special unit handled 20 cases connected with copyright infringement. This resulted in the seizure of 257 tape recorders, 1,441 records, 68,537 pirated tapes, and 891 pirated books. A total of 63 people were convicted of various copyright offences and fines amounting to $563,147 were imposed by the courts.

Independent Commission Against Corruption

The Independent Commission Against Corruption (ICAC), set up by law in February, 1974, investigates suspected corruption offences, prevents corruption and promotes higher social ethics. The commissioner is directly responsible to the Governor and his staff are not subject to the purview of the Public Services Commission: the ICAC engages its own staff and is financed from general revenue.

The commissioner is advised by the Advisory Committee on Corruption - consisting mainly of leading citizens - on policy matters affecting the commission's staffing, financial estimates, administration and related matters. The three functional branches of the commission - operations, corruption prevention and community relations each have an advisory committee made up of members drawn from the community and based on expertise in specialised fields.

The establishment of the commission is 1,080 posts, of which 623 are in operations, 104 in corruption prevention, 275 in community relations and 78 in administration. At the end of the year, 903 posts were filled (569 in operations, 77 in corruption prevention, 201 in community relations and 56 in administration).

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Radio boosts efficiency

The Royal Hong Kong Police Force has developed into one of the world's best equipped and most efficient law enforce- ment agencies in the past 135 years. In 1842, the year the force was set up, it had just 34 men to police an infant entrepot of 30,000; today it has an authorised strength of more than 18,000 to maintain law and order in a leading industrial and financial centre that has become home to 4.5 million. Because of the problems created by so many people living in what is largely a high-rise environment, the force has, through necessity, become an innovator rather than an imitator in the crime- fighting field. Its most recent innovation is a $30 million beat radio and c computer network regarded as the most modern and effective in the world today. The force has gone to great lengths over the past few years to bring the police closer to the people. This has been achieved through the opening of a network of Neighbour- hood Policing Units and reporting centres and through the appointment of 16 com- munity relations officers tasked with pro- moting closer ties with all levels of society. In addition, the force produces weekly police reports for Chinese and English television, as well as radio and TV shows for Junior Police Call, a youth organisa- tion that has attracted more than 200,000 members in just three years.

Previous page: Woman Police Constable on beat duty with a male counterpart reflects the degree of integration that women have achieved in the Royal Hong Kong Police Force. Left (from top): Modern divisional police station in Kwai Chung; the force's Honorary Commandant, Princess Alexan- dra, at the Police Cadet School: a fleet of 45 launches patrols the 1,872 square kilo- metres of Hong Kong waters.

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The skyscrapers of Causeway Bay and Central districts rise in the background as an instructor from the Police Driving School briefs a trainee motor cyclist.

　　　　　Right: Oriental Identikit picture takes shape. Below: The Governor, Sir Murray. MacLehose, examines seized fake coins.

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Left: Traffic police analyse accident black spots. Above: New beat radio is boon to men on patrol.

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Below: Inside a beat radio control centre.

Right: Forensic scientist examines crime victim's shirt.

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Above: Fingerprint expert on the job. Left: Hong Kong's direct radio link with Interpol.

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　　　　　Below and right: Reporting centres and community relations staff are bringing police closer to people.

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POLICING UNIT

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Left: Sir Murray visits Neighbourhood

Policing Unit. Above: On duty at mobile reporting centre.

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Youngsters enjoy themselves at a fun fair organised by Junior Police Call, a police-oriented youth organisation with more than 200,000 members.

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Members of the Village Patrol Unit take time out to chat with villagers in a remote part of the New

Territories.

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Operations

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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 ICAC Ordinance. In 1977, 1,700 reports alleging corruption were received from members of the public. Of these, 331 or 19 per cent were made by people who identified themselves or who went in person to the commission's main report centre or to the referral offices of ICAC local offices; 274 by telephone and 72 by letter. The commission also received 191 reports from government departments.

All reports of corruption are considered by the Operations Target Committee, which meets under the chairmanship of the commissioner and consists of private citizens and senior public servants. A sub-committee examines all anonymous allega- tions made to the commission. A total of 777 investigations were completed in 1977 and, at the end of the year, 270 allegations of corruption were still being investigated. A senior officer from the Attorney General's Chambers, supported by Crown Counsel, is attached to the Operations Department and directs the prosecution of corruption cases on behalf of the Attorney General. During the year, 272 prosecutions were made under the Prevention of Bribery Ordinance and for related offences. Among these were 48 on-street arrests by police of people who attempted to offer them bribes. Some 145 convictions were recorded and a further 73 cases were still pending.

The offensive launched in 1976 against corruption syndicates operating within the civil service intensified in an effort to overcome the worst of the problem. As a result of this pressure, all major syndicates were believed to have ceased operations by the end of 1977. Those that remained were either dormant or had been shattered into smaller and, therefore, financially less rewarding groups. Some 122 people were prosecuted during the year for conspiring in syndicated corruption and, at December 31, four syndicates were still before the courts.

　　　　　　　On November 5, the Governor directed that the ICAC would in future not normally act on complaints or evidence relating to offences committed before January 1, 1977, except in relation to persons who had already been interviewed, persons against whom warrants had been issued, persons outside Hong Kong or if evidence came to light of a crime so heinous that it would be unthinkable to refrain from action.

Corruption Prevention

The Corruption Prevention Department examines the procedures and practices of government departments and public bodies and recommends changes in work methods that may provide opportunities for corruption. It also advises and helps people who seek advice on how to eliminate corrupt practices.

Studies undertaken by the Corruption Prevention Department are mainly based on information received from members of the public, the Operations Target Com- mittee, government departments, public bodies and private organisations. The com- mission's own staff may, in the course of their duties, also come across activities requiring the department's attention.

The Corruption Prevention Advisory Committee advises the Commissioner on the work of the department, including the degree of priority that should be accorded to areas awaiting examination. During the year, 71 studies were completed and the reports forwarded to relevant organisations for consideration. Of these studies, 63

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related to government departments. At the end of the year, 16 studies were under preparation and 157 areas of activity were awaiting study.

　　　　　　As the department broadens its scope of activity, and refines its methods of identi- fying corruption opportunities and devising preventive measures, more advice is being given by letter. This takes much less time than a full-scale study and allows a much wider field to be covered. This type of work may well form the bulk of corrup- tion prevention activity in the long term.

Community Relations

The task of educating the public against the evils of corruption and enlisting their support rests with the Community Relations Department. These aims are far-reaching and involve not only the promotion of greater civic awareness, but also greater faith in good government and, inevitably, higher social ethics. The department is guided by the Citizens' Advisory Committee on Community Relations, whose members come from a cross-section of the community.

　　　　　　The department's activities fall into two broad categories - public information and education through the mass media; and personal contact with the public, individually or in groups, mainly through local offices.

The seven local offices, situated in densely-populated areas, are open from 8 a.m. to 10 p.m. every day of the year to take reports about corruption, to answer questions and to liaise with the public. A further two offices are planned.

　　　　　　During the year, contact was made with different sectors of the community through a programme of liaison talks and through 5,409 visits and meetings. As a result of these activities, many community groups joined forces to promote the need to combat corruption and to foster higher social ethics.

Work with educational institutions and the teaching profession highlighted the need to introduce into classrooms the aims and aspirations of the commission and, more importantly, positive values and social attitudes.

　　　　　　The department's liaison effort is complemented by public education through the mass media. This involves the dissemination of information through the Press, radio and television, and through other graphic or written material.

A Community Research Unit monitors public attitudes towards corruption and the impact of the commission's education programme. At the end of the year, the unit was collating and analysing research findings that will be used to help plan the future development and direction of the department.

In December, an ICAC Complaints Committee was set up to monitor complaints against the commission. The committee is made up of seven unofficial members of the Executive and Legislative Councils and a law officer, with the administrative secretary of the UMELCO Office and an ICAC official serving as joint secretaries.

　　　　　　　The committee's terms of reference are to monitor and, where it considers appro- priate, to review the handling by the ICAC of complaints by anyone against the ICAC and its officers; identify any faults in ICAC procedures that lead or might lead to complaints; and, when it considers appropriate, to make recommendations to the Commissioner of the ICAC or, when necessary, to the Governor.

　　　　　　　The committee is to submit a summary of cases it has considered to the Governor within six months and thereafter once a year.

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Prisons Department

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A welcome levelling-off of the penal population in 1977 enabled the Prisons Depart- ment to concentrate more fully on strengthening, expanding and consolidating a wide range of rehabilitative programmes and facilities.

　　　　　　　Major highlights of the year included the opening of the Lai Chi Kok Reception Centre, a maximum security prison for 960 men; the permanent allocation of Hei Ling Chau for the development of penal institutions; the opening of an extension to the Sha Tsui Detention Centre to cater for the 21 to 25 age group; and the creation of a post of general manager for prison industries.

　　　　　　　The Commissioner of Prisons is responsible for the overall administration of 17 penal institutions, a half-way house and a Staff Training Institute.

Prisons

The long-awaited Lai Chi Kok Reception Centre, first conceived more than a decade ago, came into operation in December. It has taken over the role of the grossly- overcrowded Victoria Reception Centre and is a holding prison for all males on remand and convicted prisoners awaiting classification and allocation. It also has improved the accommodation situation in Stanley Prison which, in the past, had the additional burden of detaining high-risk prisoners held on remand.

　　　　　　　The new reception centre, comprising two nine-storey cellular blocks and an adjoining eight-storey dormitory block, is one of the few high-rise penal institutions in the world. It features closed-circuit television, an internal radio communication network and electronically-controlled main gates. On admission, all prisoners under- go a thorough medical examination, including an X-ray. Those who have been con- victed attend a classification board to determine the type of institution to which they will be sent. The board takes into consideration such factors as physical fitness, security requirement, the type of offence committed, sentence and previous criminal history.

The long-standing problem of overcrowding in Stanley, a maximum security prison built in 1937 to accommodate 1,605 prisoners, eased in 1977. The daily average popu- lation dropped to 1,974, compared with 2,314 in 1976 and 2,666 in 1975.

　　　　　　　Although a vital function of a maximum security institution is to protect the com- munity from the more violent and dangerous criminal, the principal aim is that of correction and rehabilitation. As a result, Stanley has a comprehensive industrial section with reasonably large and well-equipped workshops. Prison industries include tailoring, carpentry, shoemaking, silk screening, fibre-glass moulding and laundry work.

　　　　　　　Siu Lam Psychiatric Centre, in the New Territories, also is a maximum security prison. It has accommodation for 120 inmates who require psychiatric treatment under special security conditions because of their dangerous, violent and criminal tendencies. Prisoners in other penal institutions requiring psychiatric treatment are referred to this centre for treatment. Those remanded by the courts for psychiatric reports also are accommodated. The centre has modern equipment and is manned by trained staff, with two psychiatrists in attendance daily.

　　　　　　　Siu Lam also features two special wings - one for top security female prisoners and the other for those requiring special segregation in high security conditions.

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　　　　　　As a result of the opening of the Lai Chi Kok Reception Centre, the Victoria Recep- tion Centre has reverted to a medium security prison to cater for minor offenders serving sentences of less than 18 months.

　　　　　　　Ma Po Ping Prison, built on Lantau Island in 1967, is being converted into a medium security prison. The majority of the 575 inmates are employed inside the prison on metal-work, carpentry, tailoring, laundry, fibreglass moulding and making rattan furniture. Outside working parties are largely engaged in projects designed to benefit the local community.

　　　　　　Three minimum security prisons provide accommodation for a total of 1,346 prisoners. Chi Ma Wan Prison, on Lantau Island, caters mainly for first offenders serving sentences of less than three years. The prisoners are employed on constructive projects, such as afforestation, reclamation, drainage, building and road works. Two other similar institutions are Pik Uk, in the New Territories, and Ma Hang, situated about one mile from Stanley Prison. Pik Uk was opened in 1975 and mainly accom- modates recidivists serving sentences of less than 18 months. Ma Hang features a geriatric wing for prisoners serving terms of less than three years and also caters for prisoners who have less than 18 months to serve. These prisoners mainly carry out general maintenance work at Ma Hang and outside Stanley Prison.

Female offenders, apart from those held at Siu Lam, are accommodated at the 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 female offenders in the 14 to 21 age group and a treatment centre for female drug dependants. The Chatham Road Centre in Kowloon is mainly for offenders remanded by the courts on minor charges. It is a medium security institution that has a small section catering for prisoners under 21 with less than a year to serve. The centre also houses a geriatric unit.

Training Centres

The Pik Uk Correctional Institution, a maximum security facility in the New Terri- tories that became operational in January, 1976, has continued to play an important role in housing the more intractable delinquents aged between 14 and 21. The institu- tion, which serves as both a prison and a training centre, can accommodate 385 youngsters. It also caters for young prisoners on remand and those remanded by the courts for a report on their suitability for sentencing to a training or detention centre. Two other training centres are located on Hong Kong Island. The centre at Cape Collinson caters mainly for the 17 to 21 age group while that at Tai Tam Gap accom- modates those aged between 14 and 17. Both 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 skills, from tailoring and carpentry to building maintenance, metal work and panel beating. Those committed to training centres serve sentences ranging from a minimum of six months up to a maximum of three years. No inmate is released until he has a job to go to or arrangements have been made for him to further his education. Release is followed by three years' compulsory supervision.

Detention Centre

The Sha Tsui Detention Centre, on Lantau Island, provides the courts with yet another alternative to imprisoning young offenders aged between 14 and 21. The centre is

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intended for the first offender or those with a short criminal history. The emphasis is on strict discipline, hard work and few privileges. The centre has achieved highly satisfactory results in the five years since it was opened. Sentences in Sha Tsui range from a minimum of one month to a maximum of six months, depending on the in- mate's progress. Release is followed by 12 months' compulsory supervision under an aftercare officer.

　　　　　　The Young Adult Unit, which began operating in Sha Tsui in August, 1977, has accommodation for 70 detainees aged between 21 and 25. Although run separately, the unit's programme is similar to that used in the centre - strenuous manual labour, and drill and deportment training. Emphasis is put on strict discipline and impeccable conduct at all times. Those who are medically unfit or who have previously been in a penal institution are not accepted.

　　　　　　Remedial education, and individual and group counselling also form part of the programme. A sentence runs from a minimum of three months to a maximum of 12 months, depending on the detainee's response to the training programme. Release is followed by a period of 12 months' aftercare.

Drug Addiction Treatment Centres

The Prisons Department has the reputation of running very effective and successful treatment and rehabilitation programmes for drug addicts. Its success in this field is widely recognised.

　　　　　　Before the addiction treatment centres were pioneered back in 1958, more than 90 per cent of those sent to prison were found to be drug dependants. This figure has now dropped to 40.9 per cent. The five centres run by the department provide the courts with an alternative to imprisoning drug dependants found guilty of minor offences, such as possession of drugs for their own consumption.

　　　　　　　The Tai Lam Addiction Treatment Centre, along with the two centres on Hei Ling Chau and the Tong Fuk Centre on Lantau Island, have accommodation for a total of 1,562 male inmates. All female drug dependants are treated at the Tai Lam Centre for Women.

　　　　　　The enactment of the Drug Addiction Treatment Centres Ordinance has greatly reduced the number of drug addicts sentenced to imprisonment when simply found in possession of drugs for their own consumption. Other drug dependants convicted of minor offences, which are not always connected with drugs, also have been able to benefit from the treatment and rehabilitation programmes provided in these centres. The programme consists of medical care, followed by an active life with plenty of constructive work in an outdoor environment. Results show that drug addicts can be restored to health quickly and, once they have regained their strength, can tackle some of the hardest tasks.

An excellent example of this is a venture undertaken by young inmates from the Tong Fuk Treatment Centre. In a remote corner of Hei Ling Chau, they have trans- formed three old bungalows on an overgrown hillside into another treatment centre catering for those aged under 21. This ongoing project also has enabled the department to use Tong Fuk to treat those aged between 21 and 25 in a special programme.

The existing facilities at the adult centre on Hei Ling Chau are being expanded and will eventually have accommodation for 1,250 inmates, compared with the 762 at present.

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　　　　　　All persons discharged from a treatment centre are supervised by Prisons Depart- ment staff for a year. Those considered to be still in need of close support or who need help in resuming a full life in the community, may be required to live in a half- way house named New Life House as a condition of the supervision order.

Prison Industries

　　　　　Prison industries play an important role in rehabilitation. The articles produced meet the needs of government and government-subvented organisations, and bring about a saving in government expenditure. Some $14.9 million worth of items were made in 1977, compared with the $5 million worth produced in 1970. As an interim measure, $1.4 million is being spent on expanding prison industries. Plans for a full-scale expansion are at an advanced stage and the creation of the post of general manager is an important step in this direction. With the necessary input of capital and manage- ment resources, prison industries are expected to be producing items worth $26 million by 1980.

Aftercare

Aftercare is provided under three ordinances and is carried out by Prisons Department officers. It plays a key role in rehabilitating inmates of treatment, training and deten- tion centres. Aftercare begins soon after an inmate is admitted to a centre, when mutual trust and respect is fostered between the case worker and his client. If neces- sary, an aftercare officer can recommend the recall of an inmate for further training or treatment.

Staff Training

The Staff Training Institute at Stanley provides 12 months' orientation training for newly-recruited officers and assistant officers. The course includes periods of field training and introduces trainees to all aspects of correctional work. An intermediate examination, followed by a passing-out parade, mark the completion of six months' basic training. An advanced examination is held at the end of the course. Other short orientation courses are held periodically for specialist staff.

　　　　　　Many different types of development courses also are conducted. These include a middle-management course to prepare principal officers for managerial roles; senior officers' seminars that provide opportunities for views to be exchanged on specially-selected aspects of the duties of chief officers and superintendents; and special courses for staff being posted to institutions with specialised functions, such as treatment or detention centres, or for those required to perform aftercare and security duties. All prisons staff attend refresher course every two years.

Fire Services

During 1977, the Fire Services Department dealt with a record 175,688 emergencies - 11,082 fires, 160,562 ambulance calls and 4,044 special service calls. The number of fires represented an 18 per cent increase over 1976. Calls for ambulance and special services also went up by 10 per cent and 13 per cent respectively.

Fires caused 47 deaths and injured 700 people, including 53 members of the depart- ment. In addition, 540 people were rescued by firemen. This figure did not include several hundred more led to safety by fire personnel.

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　　　　　　　Carelessness continued to be the main cause of fires. No less than 38 per cent of fires - or 4,233 - were attributed to carelessness and negligence. Defective electrical units were the second major cause and accounted for 15 per cent of the fires. In an effort to counter these causes, fully-manned fire appliances made regular patrols of various districts, particularly squatter areas, to demonstrate to residents the variety of perils they expose themselves to by failing to take commonsense fire precautions. The patrols also enabled crews to pinpoint tactical problems presented by property in their station areas.

　　　　　　The department continued with its expansion programme to keep pace with rapid social and economic progress. A new fire station and an ambulance depot were commissioned at Tsing Yi and Lei Muk Shue, bringing the total number to 39 fire stations and 10 ambulance depots/stations. A number of divisional fire stations and ambulance depots planned for high-risk areas has been included in various categories of the public works programme.

　　　　　　At the end of the year, 1,137 departmental quarters were occupied or available for occupation. Work on building 380 additional married quarters in Tsuen Wan and 600 in Sha Tin for the firemen/ambulancemen grade has already started. The projects are scheduled to be completed by 1978-9.

Communications System

The rapid development of Hong Kong, along with such factors as the creation of new towns in the New Territories, the growing number of multi-storey buildings and increased traffic, has led to a four-fold increase in the number of calls received by the department over the past 10 years. Although these problems have been partly over- come by expansion and the provision of more sophisticated appliances and equipment, effective control over fire-fighting and rescue operations hinges on modern and efficient communications.

　　　　　　　Work on implementing the first phase of a communications system approved by the Finance Committee in July, 1976, is now underway.

　　　　　　This new system, costing $5.5 million, will centralise all fire-fighting and ambulance control activities. It also will provide a direct audio call-out device for fire and am- bulance stations, and semi-automatic vehicle location and status-indicating equipment to improve ambulance usage. The first phase of the system will result in a faster turnout of appliances that will counter, to some extent, the effects of slower travelling speeds on congested roads.

Appliances

Some 38 additional or replacement appliances and units of various types were com- missioned during the year, and 31 appliances and vehicles were taken out of service. Among the more important appliances commissioned were nine major pumps, three pump escapes/rescue escapes and 10 light pumping appliances.

　　　　　　　A new fireboat also was put into service to replace the outdated No. 3 fireboat that had served Aberdeen Harbour since 1950. To provide adequate fire cover at the Kwai Chung Container Terminal and at nearby industrial areas, a specially-designed fireboat with an elevated platform is planned.

　　　　　　　Orders have been placed for three additional major pumps, which should arrive early in 1978. A total of 511 fire appliances and vehicles were in service at the end of 1977.

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Fire Prevention Bureau Because of increasing industrial sophistication and rising living standards, fire protec- tion duties and disciplines must advance and expand to keep pace with the quest for new materials, processes and building trends.

　　　　　　　In 1977, the Fire Prevention Bureau's workload increased substantially. Fire prevention lectures, exhibitions and campaigns, mounted in conjunction with kai fongs and government departments, concentrated on life hazards created by obstruc- tions on escape routes inside buildings.

Some 4,848 complaints were received from members of the public by letter, telephone and personal visits to fire stations. Most concerned obstructions, indicating the public's growing awareness of potential fire hazards and its willingness to report them.

　　　　　　The bureau carried out 269,006 inspections in schools, factories, places of public entertainment, restaurants, child-care centres and many other types of premises during 1977. The total represented a 8.7 per cent increase over the number of inspec- tions made in 1976. The bureau vetted an average of 683 building plans a month, compared with 628 in 1976, and there are indications that the number will increase steadily.

　　　　　　　Fire officers served 10,852 Fire Hazard Abatement Notices on people contravening fire services regulations and took out 3,404 prosecutions against those who failed to comply with such notices. Fines totalling $1,313,060 were subsequently imposed.

　　　　　　　In-service courses for bureau staff were held at all levels. Training also was given to officers of other government departments, factory workers, hospital staff and groups from firms employing security staff.

Ambulance Command

The Ambulance Command has been subjected to a continually increasing workload - and the pressure is expected to increase further, particularly as more people overcome their reluctance to use an ambulance.

　　　　　　　During 1977, the command answered 160,562 calls, of which 138,000 were emer- gencies. A total of 204,609 patients was carried.

　　　　　　　Although incidents involving more than one casualty continued to strain am- bulance resources, the command met these demands with a minimum of delay. About 10 per cent of the incidents were traffic accidents. At one major fire as many as 100 casualties requiring treatment and transportation were encountered, but multiple casualty incidents were less frequent.

The command has a strength of 850 all ranks and operates a fleet of 99 ambulances. Some 20 ambulances of an improved type are expected to be delivered by mid-1978. A new ambulance depot was commissioned at Lei Muk Shue towards the end of the year with an establishment of six ambulances and crews. This depot serves the ex- panding Tsuen Wan - Kwai Chung district and is expected to handle more than 1,800 calls a month.

　　　　　　　In-service and external training commitments and requirements continued to absorb considerable time and effort. Ambulance personnel were attached to hospitals for practical training in casualty treatment and other medical work that could not be provided within the department.

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Recruitment and Training

133

　　　　　A number of recruitment exercises were held throughout the year and the response was generally satisfactory. Of the 4,023 applications received for positions as opera- tional or marine firemen, senior ambulancemen and ambulancemen, 301 were accepted. In addition, 21 were appointed assistant station officers. At the end of the year, the department was still 1,069 under strength.

All recruits undergo initial training at the Fire Services Training School at Pat Heung in the New Territories. Courses vary in length and content with the type of recruits, lasting from 26 weeks for operational fire officers and firemen to eight weeks for ambulancemen and workshop firemen. The course for those recruited into the rank of senior ambulancemen lasts 12 weeks. The throughput of students during 1977 totalled 312 all ranks.

　　　　　　The school's facilities and curricula are revised periodically to cater for new tech- niques. Apart from training new recruits, the school conducts in-service refresher courses for serving officers. In 1977, school staff also gave fire-fighting and fire protection courses lasting from one to 10 days to 1,677 staff of government depart- ments and private organisations mainly connected with shipping.

Establishment

The establishment of the Fire Services Department at the end of 1977 totalled 4,632 all ranks - an increase of 889 over the previous year. Strength was 3,563, made up of 376 officers and 3,187 other ranks. The number of civilian staff rose by 29 to 375. During the year, 21 officers and 301 other ranks were appointed, but the services of 257 men were lost through death, dismissal, retirement and resignation.

事入

旅務境

遊和

Immigration and Tourism

A TOTAL of 11.9 million people passed through immigration control as they entered or left Hong Kong during 1977. This was 13 per cent more than in 1976, reflecting an improvement in the economic climate.

　　　　　　The Hong Kong-Macau Ferry Terminal was again the busiest control point with 43 per cent of the total. Next was Hong Kong International Airport with 38 per cent followed by Lo Wu, on the Sino-British border, with 18 per cent. Local residents accounted for 56 per cent of all travellers; the remainder were mostly short-term tourists or business visitors.

　　　　　　After balancing immigration against emigration for the year, there was an estimated gain in population from migration of 33,000. Over the same period, there was a natural population increase of about 55,000 as a result of births exceeding deaths.

Immigration

　　　　　On April 20, the Registration of Persons Department, whose main responsibility is the issue of identity cards, was amalgamated with the Immigration Department. The Director of Immigration was simultaneously appointed Commissioner of Registra- tion. Administration of identity card and travel document services by a single authority will lead to much simplification and, eventually, allow the public to conduct both types of business at one office.

　　　　　　The Immigration Department has a staff of 1,550, of whom 800 are uniformed officers. The work of the department falls into two main streams - controlling people moving in and out of Hong Kong, and providing identity cards and travel documents for local residents.

Immigration Control

　　　　　Extreme pressure of population has led Hong Kong to operate much tighter immigra- tion controls than most countries. These are designed to ensure that population growth through immigration is kept to a minimum but, at the same time, to facilitate the entry of people who have a positive contribution to make to Hong Kong's economic, social or cultural development.

Computerised records are kept of all people arriving and departing, thus providing the basic data required for effective immigration control as well as a wealth of infor- mation useful to the police and other law enforcement agencies. Large numbers of people attempt to enter Hong Kong unlawfully often with the aid of forged travel documents and supporting papers. To combat this, the Immigration Department has increased its intelligence and investigatory effort.

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China is the main source of people coming to Hong Kong for settlement. After reaching a peak of 77,000 people in 1973, the inflow dropped to 27,500 during 1976. The total for 1977 was estimated at about 34,000. During 1977, 1,779 illegal immi- grants were detected and repatriated to China, and 154 to Taiwan and 525 to Macau. The policy of deporting aliens convicted of criminal activities continued during the year and the Governor in Council made 79 deportation orders.

The plight of Hong Kong residents and dependants in Vietnam led to the creation of a special unit to handle all aspects of the re-unification of families in Hong Kong. By the end of the year, the unit had received 34,000 applications to enter the territory. Priority was given to those with close links with Hong Kong, such as wives joining husbands or elderly parents joining grown-up children. The task was complicated by widespread forgeries of Vietnamese documents.

　　　　　　　Because scheduled air services between Hong Kong and Vietnam remain suspended, the Immigration Department organised 22 charter flights from Ho Chi Minh City. Immigration officers travelled on these flights and were able to resolve many problems with the Vietnamese authorities and British Embassy staff. By the end of the year, 200 Hong Kong residents and 3,242 dependants had been carried on these special flights. Fares were paid in advance by local sponsors.

　　　　　　Hong Kong continued to offer temporary sanctuary to people escaping from Vietnam by sea. They numbered 567 rescued at sea by ocean-going vessels bound for Hong Kong and 434 who arrived directly from Vietnam in small craft. Close liaison was maintained with the United Nations High Commission for Refugees and the Inter-Governmental Committee for European Migration, which looked after the refugees during their stay in Hong Kong and arranged their onward journeys, in most cases to the United States.

Personal Documentation

The Immigration Department handles about two million document applications every year. Many of these relate to Hong Kong Identity Cards, possession of which is a legal requirement for most residents over the age of 11. But the greatest number of applications relate to Hong Kong British passports and other travel documents: about 80 per cent all adults in Hong Kong hold valid travel documents - and use them.

　　　　　　The Immigration Department devotes a great deal of effort to ensure the integrity of Hong Kong travel documents because this affects the ease with which residents can travel overseas.

　　　　　　One problem that Hong Kong shares with most other countries is the substitution of photographs in travel documents. In an attempt to prevent this, Hong Kong is pioneering the use of a new technology by which photographs are engraved on to special paper instead of affixed by adhesive. Trials have started on Hong Kong Certi- ficates of Identity. If these prove successful, it is hoped to extend photo-engraving to other important documents.

Tourism

Hong Kong received 1.75 million visitors during 1977 - a 12.6 per cent increase over 1976. Tourism was once again a major source of foreign exchange earnings, with revenue from the tourism industry amounting to about $4.2 billion.

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　　　　　　More visitors came from Japan than any other country, comprising 27.6 per cent of the total. South-east Asia followed with 24 per cent, the United States with 14.5 per cent, Western Europe with 12.5 per cent, and Australia/New Zealand with 10.1 per cent.

Hong Kong Tourist Association

The activities of the Hong Kong Tourist Association (HKTA) fall into four broad areas - promoting Hong Kong as a tourist destination to overseas markets; providing information to visitors once they are in Hong Kong; co-ordinating the industry's activities; and working for the improvement and development of Hong Kong's tourism industry for the greater enjoyment of visitors and benefit of local residents.

　　　　　　The HKTA has staff stationed in many parts of the world. The head office is in Connaught Centre, on the waterfront on Hong Kong Island. There are nine overseas representative offices in London, Paris, Frankfurt, New York, San Francisco, Johannesburg, Tokyo, Sydney and Singapore. The HKTA also is represented by Cathay Pacific Airways throughout South-east Asia and in Japan, the United States, Australia and Bahrain. Information offices in Hong Kong are located at Hong Kong International Airport, at the Star Ferry concourse in Kowloon and in the Government Publications Centre in the General Post Office building on Hong Kong Island. An information counter also is located at the World Trade Centre in Causeway Bay.

　　　　　　A Membership Department is responsible for liaison with members of the associa- tion and also deals with any complaints that visitors may have about goods or services. Membership in 1977 was 1,224, of whom 279 were ordinary members and 945 were associate members.

　　　　　　A number of publications are produced by the HKTA. Some are for the interna- tional travel trade and for the local tourist industry; others are for visitors. They include a range of 12 information leaflets, a guidebook, maps and many special publications - some of which have been translated into Japanese, Chinese, German, Spanish, French, Malay, Thai and Arabic.

Promotions

　　　　　The HKTA's promotional work during 1977 focused on a full schedule of travel trade and consumer promotions, as well as expanded consumer, travel trade and co-operative advertising campaigns.

　　　　　　The 1977 Pacific Area Travel Association (PATA) Conference, held in Hong Kong in February, was one of the outstanding travel events of the year for the local tourism industry. The conference took place in the Hong Kong Convention Centre and was attended by 2,000 travel industry members from Pacific countries. PATA delegates spent an estimated $5 million during their three-day stay.

　　　　　　Another important tourism event was a promotion mounted in the Middle East in October. It covered Bahrain, Kuwait and Dubai, and took the form of gala dinner shows in leading hotels and sales calls to top travel agents. The promotion aimed to introduce Hong Kong as an exciting and sophisticated travel and holiday destination, with a wide variety of attractions and facilities.

　　　　　　A two-week tourism mission to Japan in August visited five key cities, including Tokyo and Osaka. There were audio-visual presentations, seminars, luncheons and receptions at which the Hong Kong tourist industry delegation met members of the

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Japanese travel trade and the news media. HKTA members also took part in the Osaka Trade Fair in April-May.

Again in Japan, a team of ice-carvers from the Mandarin Hotel took second prize in an ice-carving competition organised for the Sapporo Snow Festival. They were part of a Hong Kong travel industry team that visited Japan to promote Hong Kong at the festival and at subsequent travel trade presentations in Tokyo, Osaka, Fukuoka and Nagoya.

　　　　　　A very well-received 'Fascinating Hong Kong' promotion was held in Kuala Lumpur and Penang in September. The promotion featured Hong Kong craftsmen, chefs and a superb display of Hong Kong-made jewellery, and highlighted the great importance placed on South-east Asia as a rapidly-developing travel market.

　　　　　　In the United States, there was HKTA representation at the prestigeous American Society of Association Executives' (ASAE) annual conference in Phoenix, Arizona. A travel industry team promoted Hong Kong as an ideal meetings destination during a series of pre-conference trade calls to New York, Washington, Illinois and California, and a concerted effort was made to sell Hong Kong as an exciting destination for incentive travel business.

　　　　　　A series of joint HKTA-Cathay Pacific promotions was organised in Australia during June. They included consumer and travel trade events and covered Sydney, Melbourne, Brisbane, Adelaide and Perth. The Perth Royal Show in September featured a Hong Kong stand where Chinese traditional fanmaking and calligraphy were displayed. The show was organised by the Rural and Industrial Bank of Western Australia, and Hong Kong participated in co-operation with Cathay Pacific. A series of joint HKTA-Air New Zealand promotions also were held in New Zealand in September. The HKTA was represented at the Australian Federation of Travel Agents (AFTA) Conference in Hobart in July.

Other major overseas travel events at which the HKTA and the Hong Kong tourist industry were represented were the International Tourism Exchange (ITB) in Berlin in February, the American Society of Travel Agents (ASTA) Conference in Madrid in October-November, the Association of British Travel Agents (ABTA) Conference in Lisbon in November, and the International Congress and Convention Association (ICCA) Conference in Singapore in November. Hong Kong took part at ITB as a member of the East Asia Travel Association (EATA).

Public Relations

A successful 'one thousand smiles' competition was organised during the PATA Conference to encourage greater courtesy to visitors. An overseas holiday and cash vouchers were offered as prizes to Hong Kong people who earned the most 'smile' votes from conference delegates.

For the second year running, a team of Peiron rowers from Japan was invited to Hong Kong to take part in the Dragon Boat Festival races at Shau Kei Wan. A team of rowers from Malaysia also competed. Much favourable publicity resulted in Japan and Malaysia, with more than two hours of television coverage in Japan alone. A carefully-planned schedule of media familiarisation visits continued to generate film, television, radio, magazine and newspaper coverage for Hong Kong in all major visitor-generating markets.

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　　　　　　Special events for which media visitors came to Hong Kong included the Hong Kong Arts Festival, the Asian Hairstylists' Competition and the Asian Arts Festival. A total of 573 media visitors came to Hong Kong during the year.

Travel Trade

The Marketing Services Department organised familiarisation visits for 2,390 travel trade members from major tourist markets. The department's terms of reference extend from planning, implementing and appraising major trade and consumer promotional activities in all markets to collecting and disseminating market research and intelligence data. Executives of the department make regular sales calls in particular markets and on HKTA members in Hong Kong who handle incoming business from those markets.

　　　　　　A Conferences and Meetings Department was established to attract more of this lucrative tourism business to Hong Kong. The department helps meeting planners with aspects of planning, promoting and organising meetings in the territory.

Product Development

The HKTA continued its efforts to develop Hong Kong as a visitor destination, and to improve existing attractions, facilities and services. The Visitors Amenities Com- mittee monitored a wide range of problems faced by the visitor, of which the most persistent was touting.

Service industry training included refresher courses for tourist guides and counter sales staff employed by retail shop members.

A tours section was created to operate special familiarisation and experimental tours, and to conduct more effective guide training. The preparation of commentary scripts for standard tours marketed by Hong Kong tour operators was a priority task, and the main tours have already been completed and published in English and Chinese.

雪味

Public Works and Utilities

　　　　　EXPENDITURE on public works, invariably the government's greatest single financial commitment, covers the reclamation of land and the construction of all types of public buildings, as well as the provision of roads, sewers, piers and reservoirs.

Approved expenditure on public capital works for the 1977-8 financial year is $1,464 million - almost one-fifth of total government expenditure. Of this sum, $256 million is being spent on roads, $183 million on water supplies and $129 million on public housing, in addition to that being spent by the Housing Authority.

Geotechnical Control

　　　　　Following special reports prepared by consulting engineers and an independent review panel of international experts appointed to investigate the 1976 landslips at Sau Mau Ping, a new Geotechnical Control Office was established within the Public Works Department. The prime task of the new office is to ensure the safety of existing and future slopes on both private and Crown land around inhabited areas.

　　　　　　The new office will approve the design of new slopes and adjacent buildings both in the private and public sectors, and police the standard of supervision on work sites to ensure that works are safely executed. It also will inspect all existing slopes regularly and, if necessary, arrange for landslip preventive works to be carried out.

Buildings

The revival in the building industry that began in 1976 gathered further momentum during the year. With even greater building activity forecast in the public and private sector over the next few years, the industry is now enjoying a boom that is likely to continue for some time. This vastly increased activity in the construction industry has resulted in an acute shortage of skilled labour and led to an overall increase in wage rates of about 25 per cent. This inflationary increase, coupled with the larger volume of work now available to contractors, pushed up tender prices by an estimated 30 per cent over the year. The increase could have been substantially higher had it not been for the fact that, because of a recession in the building industry elsewhere coupled with the strength of the Hong Kong dollar, Hong Kong has had the advantage of being able to obtain building materials at very competitive prices. In fact, the Building Materials Price Index showed a five per cent decrease during the year. Despite the boom conditions, interest in government tenders remained fairly high throughout most of the year, particularly among the smaller firms of contractors. But towards the end of the year, it became evident that even a number of these firms were almost fully

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extended and were becoming more selective in the contracts for which they were prepared to tender. Indications are that although tender prices have not yet attained the peak of the 1974 boom, it is extremely probable that this level will be exceeded early in 1978.

The weather was extremely dry for most of the year, enabling work on most govern- ment projects to progress satisfactorily. However, towards the end of the year, a shortage of labour, particularly in the New Territories, caused a number of contracts to fall somewhat behind schedule. Maintenance work on buildings continued to expand and, for the most part, construction of buildings for the Property Services Agency of the Department of the Environment progressed satisfactorily. Private quantity surveyors and, to a lesser extent, private architects and consultant engineers continued to help in the public building programme.

During the year, expenditure on public housing and associated building work amounted to $142 million and, on all other projects, to $384 million.

　　　　　　　As part of the 10-year housing programme, seven housing blocks providing accom- modation for 33,594 people were completed. Also completed were two welfare halls, five 24-classroom estate primary schools, three kindergartens, part of a commercial- communal complex at Tai Hing Housing Estate, and two restaurants and one work- shop block at Shek Kip Mei.

By the end of the year, work was progressing on 17 domestic blocks at five public housing estates which, when completed, will provide 72,989 individual units of accommodation. Four 24-classroom estate primary schools, five kindergartens, one welfare hall and four large commercial-communal complexes also were in the course of construction. The second stage of a fishermen's housing project that will provide accommodation for 1,728 people displaced by the High Island water scheme was under construction. In addition, planning or preparation work was in progress on the balance of the conversion and redevelopment of Shek Kip Mei Estate which, on com- pletion, will provide a further 23,657 individual units of accommodation.

　　　　　　　Of the varied projects completed during the year, the most notable on Hong Kong Island were a radar equipment building on Mount Parker, a fire station at Chung Hom Kok, a swimming pool complex at Aberdeen, stores and departmental quarters at Pok Fu Lam for the Urban Services Department, and married soldiers' quarters and squash courts at Stanley Fort.

Among the buildings completed in Kowloon were: the extension of the terminal building at Hong Kong International Airport, including new arrival and departure facilities and a computerised baggage-handling system; a technical institute at Cheung Sha Wan; a Prisons Department Reception Centre at Lai Chi Kok; a swimming pool complex and park at Tai Wan Shan; the first phase of the second stage of Kowloon Park in Tsim Sha Tsui; the second stage of Hoi Sham Park, To Kwa Wan; a Gurkha sergeants' mess; a new telephone exchange at Osborn Barracks; and several other buildings for the Army.

　　　　　　Work completed in the New Territories included: a secondary technical school at Ha Kwai Chung; a ship fire-fighting training aid at the Fire Services Training School at Pat Heung; an ambulance depot at Kwai Chung; sub-divisional fire stations at Lei Muk Shue and Tsing Yi Island; a temporary fire services workshop at Kwai Chung; a clubhouse for the staff of the Castle Peak Hospital; staff quarters for the

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Tai Lam Addiction Treatment Centre; a new cell block at Sha Tsui Detention Centre; community halls at Kwai Fong and Shek Yam Housing Estates; a swimming pool at the Sai Kung Outdoor Recreation Centre; the first stage of the Cheung Chau Recrea- tion Ground; playgrounds at Kwai Chung and Tsuen Wan; local open spaces at Kwai Chung and Tuen Mun; a beach building at Cafeteria Beach; a temporary market at Tsuen Wan; village houses at Wo Yi Hop Road as part of the Tsuen Wan-Kwai Chung clearances; Sham Tseng Village rehousing as part of the first stage of Tuen Mun Road; junior staff quarters at Kwai Chung for the staff of the desalting plant at Lok On Pai; 64 married soldiers' quarters and Gurkha sergeants' messes at Sek Kong and Borneo Lines; a high school for Gurkha children at Sek Kong; and additional kennels, pharmacy and surgery facilities for the Hong Kong Dog Company of the Royal Military Police at Borneo Lines.

　　　　　　Projects under construction at the end of the year included: the extension of the office block over the Hong Kong International Airport terminal building and the access flyover from Prince Edward Road to the terminal building, both as part of the terminal building modifications; site formation work for the reprovisioning of Victoria Technical School; piling work for a fire station at San Hui, for a divisional fire station and New Territories fire command headquarters, and for an ambulance depot at Sha Tin; fire services rank and file quarters at Tsuen Wan and Sha Tin; police rank and file quarters at Ho Man Tin, Kwai Chung and Sha Tin; secondary schools at Kwai Chung, Sha Tin and Tuen Mun; a judiciary building at Gascoigne Road; the first phase of the second mental hospital at Lai Chi Kok; a dental nurses' training school; staff quarters at Queen Mary Hospital; government office buildings at Tai Po and Tuen Mun; a divisional headquarters and police station at Fanling; divisional police stations at Ho Man Tin, Cheung Sha Wan, Sha Tin and Tuen Mun; and a sub- divisional police station at Sheung Kwai Chung. Also under construction were: the reprovisioning of Stanley Training Centre; improvements to Hei Ling Chau Drug Addiction Treatment Centre and Ma Po Ping Prison; non-departmental quarters at Borrett Road and Mount Butler, Hong Kong, and Broadcast Drive, Kowloon; the reprovisioning of Ma Tau Wai Girls' Home; an indoor games centre at Morrison Hill; the superstructure of the indoor stadium at Hung Hom; site formation work for a swimming pool complex and park at Chai Wan; a public garden on the site of the former Hong Kong Cricket Club ground in Central district; the first stage of a recreation centre on the Wan Chai reclamation; a planetarium in Tsim Sha Tsui; a swimming pool complex at Fanling; a sports ground at Kwai Chung; married soldiers' quarters at Sek Kong; married officers' quarters at Victoria Barracks and Sek Kong; new headquarters for the British Forces in Hong Kong at HMS Tamar together with a number of other projects associated with the transfer of military facilities from Victoria Barracks to HMS Tamar and the Royal Air Force facilities from Kai Tak to Sek Kong. Several playgrounds, amenity areas, latrines, hawker bazaars and flood- lighting schemes also were in hand.

　　　　　　　At the end of the year, design, working drawings or contract documents were being prepared for more than 200 projects. They included a new restaurant and kitchen block, a new arrivals hall, the western half of the vehicular deck and passenger piers, apron decks and air bridges for Stands I and II - all as part of the airport terminal building modifications; the first stage of a technical institute at Kowloon Tong;

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primary and secondary schools in Tsuen Wan; fire stations at Kotewall Road, Wong Tai Sin and at the airport; an extension to the Public Works Department's electrical and mechanical office workshop at Sung Wong Toi Road; an amenities building at the Wan Chai public cargo handling basin; the second phase of the second mental hospital at Lai Chi Kok; the second stage of the Kowloon East Polyclinic; standard urban clinics at Ngau Tau Kok and Lei Muk Shue; a medical department laundry at Pik Uk Prison; a dental teaching clinic; a hospital in East Kowloon; a general clinic in Sha Tin; alterations and additions to Fanling Hospital; government offices at Sai Kung; a maximum security prison at Shek Pik; additional staff quarters at Sha Tsui Detention Centre; the second phase of the second stage of Kowloon Park; play- grounds at Cha Kwo Ling Road and Sau Nga Road; parks at Sheung Shing Street and Welfare Road; recreation grounds at To Kwa Wan and Cheung Chau; a sports ground at Cheung Sha Wan; an extension to Aberdeen Sports Ground; a promenade on the waterfront in Central district; a swimming pool complex at Yuen Long; and district open spaces at various locations in Tuen Mun and Tsuen Wan. Other projects in the planning or pre-contract stages included: a crematorium and columbarium at Tsuen Wan; a market and bazaar at Sai Kung; staff quarters for the Kowloon-Canton Railway; departmental quarters at the Kwai Chung incinerator; reprovisioning of the headquarters of the Royal Hong Kong Regiment; a Gurkha temple, a Gurkha families community and welfare centre and Gurkha married soldiers' quarters, all at Gun Club Hill Barracks; and improvements to HMS Tamar. Several other recreation grounds, as well as beach buildings, markets and off-street refuse collection centres, also were being planned.

Metrication

The metrication of the workings of the various offices in the Public Works Depart- ment, which was begun in 1972, has been completed.

　　　　　　　The enactment, in July, 1976, of the Metrication Ordinance opened the way for the metrication of the Buildings Ordinance as well as other ordinances. From April 1, 1977, it has been mandatory for all new plans submitted for the approval of the Building Authority to be in metric form.

Land Development

In Kowloon, development of land included about 1.6 hectares for the Kowloon Tong Technical Institute and 0.6 of a hectare for the Diamond Hill Crematorium. Con- struction of a new three-kilometre section of road within the Clear Water Bay Road development area was well advanced and construction of the major road bridges and road junctions continued. Reclamation continued at Kowloon Bay, where some two hectares was formed for public roads and industrial development. Under the pro- gramme for formation of land for expansion of airport facilities at Kai Tak, the final half hectare was reclaimed. Reclamation began at Lai Chi Kok Bay, where some five hectares was formed for recreational use and open space.

　　　　　　　On Hong Kong Island, reclamation continued with the formation of 0.6 of a hectare in Central for roads and community use; 3.9 hectares at Chai Wan for housing, in- dustrial and cargo-handling uses; and 2.1 hectares at Aldrich Bay for roads, boatyards and a ferry concourse. At Aberdeen, 0.8 of a hectare was formed for the construction

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　　　　　of a sewage screening plant and 0.9 of a hectare for the construction of a road. On the waterfront at Western, one hectare was reclaimed for the construction of roads, a wholesale market and cargo handling uses. At Lei Yue Mun Bay, 1.3 hectares was reclaimed for possible future use for a mass transit railway depot. At Mount Butler, 1.4 hectares was formed for government staff quarters and, at Chai Wan, three hectares was formed for a swimming pool.

In the New Territories, reclamation continued in Tai Po Hoi for the first stage of the Tai Po Industrial Estate and some 21 hectares was formed. Reclamation for the second stage also began. Some 1.1 hectares of land was formed for the Police Cadet School at Tai Po. At Sek Kong Village, 1.6 hectares was formed for married soldiers' quarters and, on Lantau, 0.8 of a hectare was formed for the Shek Pik maximum security prison. At Tuen Mun New Town, construction of Pillar Point Road from Pillar Point to Siu Lang Shui was completed. Consultants also were appointed to in- vestigate the feasibility of developing Junk Bay to provide additional land for both industry and housing.

Drainage and Anti-pollution Projects

　　　　　Sewage from the urban areas is 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 and visible solids. The construction of submarine outfalls at Kwai Chung, Chai Wan and Repulse Bay was in progress, and the laying of new sewers was started in Ap Lei Chau, Hung Hom, Kwai Chung and Yuen Long.

　　　　　　Experimental work to assess the suitability of various sewage treatment methods was completed at the Shek Wu Hui pilot sewage treatment plant. Additional experi- ments on a high-rate biological filter were being carried out. The construction of new sewage treatment works at Tai Po, Yuen Long, Aberdeen and Repulse Bay continued. Consulting engineers continued with the design of Stage I sewage treatment and dis- posal works for North-West Kowloon. At Sha Tin, the interim sewage treatment works to serve the new town was completed and commissioned and, at the end of the year, civil engineering works for the permanent sewage treatment works were about to start.

　　　　　　Monitoring of water quality in local waters continued to obtain long-term data for the design for new facilities for sewage treatment and disposal, and to establish pollu- tion levels and trends. A data report summarising all monitoring results to the end of 1976 was prepared. A technical report discussing the monitoring results summarised in the previous data report also was prepared.

River training works at Tung Chung and duplication of stormwater drains in Kwun Tong Road were started while extension of arterial drains in the Western reclamation continued. Other works completed during the year included extension of stormwater drains in Chai Wan and Tong Mi Road reclamation, repair works at Shing Mun River and drainage improvement works at Ma Hang, Stanley.

　　　　　　About 950,000 tonnes of solid wastes were treated at the five controlled tipping sites at Sai Tso Wan, Ngau Chi Wan, Gin Drinkers Bay, Ma Tso Lung and Shuen Wan. Planning of replacement tips at Junk Bay, Ma Tau Tong and Siu Lang Shui was in progress. Construction of the refuse incinerator at Kwai Chung continued, and the design of Hong Kong's first full-scale refuse composting plant at Chai Wan was com-

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　　　　　pleted. The refuse composting plant at Sha Tin and the pilot scheme for a high-density baling plant at Sai Tso Wan were being put in hand.

Port Works

　　　　　　On Hong Kong Island, a total of 760 metres of seawall to retain reclamations for cargo-handling activities at Chai Wan and for roads and boatyards at Aldrich Bay was completed. Construction work for a total of 1,840 metres of seawall and reclamation for various places continued at Aldrich Bay, Western district and Po Chong Wan, Aberdeen. A contract was let for the construction of 200 metres of seawall at Shek Pai Wan, Aberdeen, to retain a reclamation for roads and local open space. A start was made on the construction of a second passenger ferry pier at North Point.

　　　　　　In Kowloon, the construction of a new ferry pier and concourse at Sham Shui Po to replace and improve existing facilities at Pei Ho Street was nearing completion. The construction of the seawall foundation at Cheung Sha Wan was well advanced. A new passenger ferry pier at Hung Hom to replace and improve the existing ferry facilities was under construction. Two outfalls, forming part of the drainage development works in Kowloon Bay, were completed. A start was made on the construction of the last section of seawall at Kowloon Bay. Site investigation by geophysical survey and marine boring for the North-West Kowloon district sewage treatment and disposal scheme was under way.

In the New Territories, the extension of the Cheung Chau ferry pier was completed. Reclamation work continued in a small section of Rambler Channel typhoon shelter to provide land for cargo handling. A contract was let for the construction of 1,100 metres of seawall at Tai Po to retain a reclamation for the future industrial estate.

　　　　　　In the harbour, dredging was completed to reduce, to its original level, the sea bed at the mooring areas south of Stonecutters Island. At Cheung Chau, dredging work was carried out to the fairway leading to the ferry pier and the public pier.

Quarrying

With the continued improvement in construction activity, the demand for aggregates and sand further increased during 1977. A total of 7,150,000 cubic metres of crushed rock aggregates was produced in the two government and six private contract quarries and on development sites. Some 108,600 cubic metres of manufactured sand also was produced in one of the private quarries. In addition, a total of 922,200 cubic metres of marine dredged sand was sold through the government sand monopoly. Tenders were invited for a second contract to supply manufactured sand.

　　　　　　　To meet the forecast higher demand in the coming years, tenders were invited inter- nationally for a contract to operate a large modern quarry on the mainland, and preparations were being made for another large quarry contract on one of the outlying islands. In the contract conditions for these quarries, much emphasis was placed on environmental considerations.

　　　　　　　A contract was let for the construction of a new permanent sand monopoly depot to facilitate the sale of manufactured sand on the mainland.

　　　　　　　The whole of the quarries section was absorbed into the new Geotechnical Control Office of the Public Works Department, and major expansion of the materials-testing laboratories was being planned with particular emphasis on soils and slope stability

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problems. During the year, the existing laboratories were again fully utilised and some 112,927 tests were carried out. Of these, about four per cent were for private firms.

Water Supplies

The continuous water supply enjoyed for the previous two years came to an end on June 1 when, as a result of below average rainfall, water restrictions had to be imposed. At the beginning of 1977, there were 238 million cubic metres in storage, compared with 274 million cubic metres at the start of the previous year. Rainfall during the year was below the average of 2,169 millimetres, with a total of 1,680 mm being recorded. Rainfall in the first nine months amounted to only 1,470 mm and Hong Kong entered the dry season in October with its reservoirs only 59.6 per cent full. Consequently, there were only 182 million cubic metres in storage on October 1 (ex- cluding 20 million cubic metres stored in High Island Reservoir), compared with 293 million cubic metres at the same time in 1976. A 16-hour daily supply from 6 a.m. to 10 p.m. was introduced on June 1. This was further reduced on July 5 to 10 hours' supply in two periods - from 6 a.m. to 10 a.m. and 4 p.m. to 10 p.m. Despite these restrictions, a continuous supply was maintained to hospitals, industrial areas and other consumers with essential needs.

On January 1, 197 million cubic metres of water were stored in Plover Cove. Despite the reduced inflow during the summer months, there was no significant increase in salinity of the impounded water and, at the end of the year, the salinity was 94 parts per million. The quality of the abstracted water remained satisfactory throughout the year.

By a supplementary agreement with the Bureau of Water Conservancy and Hydro- Electric Power, Kwantung Province, 16 million cubic metres of water were piped from China to Hong Kong, in addition to the agreed annual supply of 109 million cubic metres. This was achieved by extending the supply period from July 31 to August 31. Water consumption varied only slightly from the previous year, due mainly to the effect of water restrictions. Average consumption throughout the year was 1.06 million cubic metres a day, compared with 1.1 million cubic metres a day in 1976. A total of 387 million cubic metres of potable water was consumed, compared with 405 million cubic metres in 1976. In addition, 75 million cubic metres of salt water for flushing were supplied.

Work progressed satisfactorily at High Island Reservoir in the New Territories. Construction of the east dam core and the supporting rockfill reached a height of 54 metres above principal datum, and the west dam was built to its final elevation. All eight lowland pumping stations were commissioned. The main tunnel system also was commissioned and the yield from the associated intakes began contributing to total resources in June. The uprating of the filters at Sha Tin treatment works from 0.8 to 1.1 million cubic metres a day was completed and the plant commissioned. Work on constructing a 96,000-cubic metre service reservoir at Lion Rock was substantially completed.

The Lok On Pai desalting plant, which can produce 182,000 cubic metres of water a day, was completed. All six desalter units, and associated electrical and instrumenta- tion equipment were finally taken over during the year on completion of their main- tenance periods. The numerous operational problems, apart from a shortage of staff,

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had been substantially solved. Because of the low rainfall recorded in the early part of the wet season and the subsequent need to impose restrictions, all six units were brought into operation by September, 1977. To achieve this, it was necessary to enter into service contracts for the provision of operational and maintenance staff while the recruitment of permanent staff proceeded. The assembly of information on future 'mothballing' continued. Tentative works programmes for future desalting projects were finalised and investigations on various desalting processes, plant designs and types of fuel continued in an effort to assess the most economical means of producing fresh water from the sea.

In addition to the major water schemes, work continued on other projects designed to meet increasing demands in existing and new areas of development. During the year, planning studies on the improvement of water supplies to Ap Lei Chau, Repulse Bay, Stanley, Cheung Chau, Mui Wo, Tai O and Sai Kung were completed. Further water supply proposals to cater for development in the new towns and market towns were formulated, including new systems to serve the high level areas to the north of Sha Tin. Detailed studies were made on the development of two minor catchments one to the north-east of Plover Cove and the other in the River Ganges Basin. Design works on new water supply systems for the Fei Ngo Shan and Sai Kung areas was put in hand. Construction work for new water supply systems for Sha Tin, Tuen Mun and Tsuen Wan new towns, as well as those for the Tai Po Industrial Estate and Tsing Yi, progressed steadily to keep pace with the general development programme. On Hong Kong Island, further work to improve the water supply in the Pok Fu Lam area began. Work to improve the salt water flushing system for the Mid-Levels district was completed.

Detailed studies and examinations were continued to ensure the safety of reservoirs. Remedial works were completed at some of the older dams and initiated at others.

　　　　　　It became apparent during the last half of 1976 that the extensive and accelerated development programme for new towns and market towns in the New Territories, coupled with urban expansion and water resources development schemes, would impose a commitment beyond the capacity of existing staff resources. To meet these commitments, considerable expansion and reorganisation took place.

After a series of system tests, the computer package for water billing and related procedures was adopted for billing trade accounts involving some 74,000 consumers. In July, the first computer bills were issued to trade consumers. Conversion of basic data for domestic, construction and other supplies was scheduled to begin as soon as all trade accounts had been successfully computerised. Steps have been taken to im- prove consumer services following the appointment of a customer relations officer to take charge of a Complaints and Inquiries Section in the Waterworks Office.

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 Limited while Kowloon and the New Territories - including Lantau and a number of outlying islands - receive supplies from the China Light and Power Company Limited. The island of Cheung

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Chau is served by the Cheung Chau Electric Company Limited. In addition, minor enterprises, such as some village co-operatives, produce current for remote localities. The three companies are investor-owned and do not operate under franchise. How- ever, the government does exercise a measure of profit control over the two main undertakings.

　　　　　　　The China Light and Power Company supplies electricity to Kowloon and the New Territories, including Lantau and a number of outlying islands.

Generation of electricity is carried out partly by China Light and partly by the Peninsula Electric Power Company Limited (PEPCO), an enterprise financed 60 per cent by Esso and 40 per cent by China Light. PEPCO owns the power stations at Tsing Yi 'A' (720 MW), Tsing Yi 'B' (842 MW) and Hok Un 'C' (240 MW). Operation of these plants is in the hands of China Light, which also has its own stations at Hok Un 'A' and 'B' (total 410 MW) and a number of diesel sets (total 6 MW).

　　　　　　　Hong Kong Electric has generating stations at North Point (271 MW) and Ap Lei Chau (631 MW). A generating plant capable of producing a further 125 MW is due to be commissioned at Ap Lei Chau in March, 1978. The installed capacity of the Cheung Chau Electric Company is 7 MW. In all, the three undertakings have a com- bined capacity of 3,127 MW.

　　　　　　　Transmission is carried out at 132 kV and 66 kV, while distribution is effected mainly at 33 kV, 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 available at 33 kV and 11 kV.

Main electricity statistics for 1977, as well as electricity sales figures for the years 1975 to 1977, are shown in Appendix 34.

Gas

The Hong Kong and China Gas Company Limited supplies Towngas to Hong Kong Island, Kowloon and the New Territories. The supply is available throughout the urban areas, including Aberdeen, Repulse Bay and Stanley on Hong Kong Island, and the industrial towns of Kwun Tong, Kwai Chung, Tsuen Wan and neighbouring Tsing Yi Island. Towngas also has expanded to the area north of Lion Rock with the installation of a gas main along the second Lion Rock Tunnel to serve the Sha Tin area. At the end of 1977, the Towngas distribution network totalled 613 kilometres.

　　　　　　　A significant development is the availability of Towngas to residents in the new Housing Authority estates. Lai Yiu Estate, overlook Tsuen Wan, was piped first followed by Cheung Ching Estate on Tsing Yi Island, Yue Wan Estate in Chai Wan, Nam Shan Estate in Tai Hang Tung and Wo Che Estate in Sha Tin. Additionally, the new Ngau Chi Wan, Pak Tin and Shun Lee estates, as well as the Fu Shan Estate in Hammer Hill, are now being piped for Towngas.

Towngas production is centred at Ma Tau Kok in Kowloon. Hong Kong Island is supplied by two submarine gas mains across the harbour. The total installed capacity of the station is 900,000 cubic metres a day, produced by six naphtha plants.

Gas is sold on a thermal basis (one therm=106 megajoules). The heat content value of Towngas is 17 megajoules per cubic metre. The total quantity of gas sold in 1977 was 2.1 million gigajoules, compared with 1.9 million in 1976. The number of Towngas customers increased from 64,362 to 80,026 during 1977.

Communications and Transport

訊

HONG KONG'S position as a major centre of industry, trade and finance owes a great deal to its highly-efficient communications and transport system.

　　　　　　Public transport is constantly being improved, along with facilities catering for international shipping, air travel and general transport. In the telecommunications field, the territory has long made use of satellite earth stations, computers and other highly-complex electronic equipment.

Postal Services

With the opening of a new post office at Tsing Yi in September, there are now 73 post offices in the territory, including one mobile facility that serves the remote parts of the New Territories.

　　　　　　Further progress was made on the $43 million International Mail Centre with the signing, in October, of the contract for the construction of the building. The centre, due to be completed in 1979, will be the major mail processing unit in the territory and will handle all international mail.

In most areas of Hong Kong, there are two mail deliveries a day from Monday to Saturday. The Post Office aims to deliver mail not later than one working day after the date of posting, and it is largely successful in meeting this target.

　　　　　　The volume of mail in general continued to increase during the year. An estimated 305 million letters, registered articles and parcels were handled - 5.6 per cent more than in 1976. Apart from a 5.8 per cent increase in mail posted for local delivery, the weight of air-mail parcels to overseas destinations increased by 26 per cent and other categories of air-mail by 9.2 per cent. The number of parcels posted to other countries by surface mail increased by one per cent, thus reversing a trend that had been evident since 1974.

　　　　　　On average, about 8.8 tonnes of air-mail were despatched daily throughout 1977. Most surface mail despatched to other countries is containerised and an average of two full container loads were made up each day of the year.

　　　　　　There was a further growth in the use of the Speedpost service, which is available to Australia, Belgium, Brazil, France, Britain, Japan, the Netherlands and the United States. The number of items handled increased to 45,000, compared with 28,000 in the previous year. Express mail traffic also continued to increase, with some 732,000 items being despatched 18.8 per cent more than in 1976.

―

There were four issues of commemorative postage stamps in 1977. Two stamps were issued in January to mark the Lunar New Year - the Year of the Snake. This was the

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　　　　　　11th in the series of Lunar New Year stamps. In February, three stamps were issued to form part of an omnibus series of Commonwealth stamps commemorating the Queen's Silver Jubilee. Four stamps with the theme of tourism were issued in June, and three depicting orchids that grow wild in the Hong Kong countryside were issued in October.

Agency services carried out by the Post Office on behalf of other government departments included the payment of social welfare benefits amounting to $12 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. He acts as adviser to the government on general technical matters concerning the provision of all types of telecommunica- tions services, including the operation of the public telephone network, the provision of television services, and the provision of telecommunications 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, where necessary, instigates legal proceedings. It also is responsible for the control of radio frequencies in Hong Kong and the investigation of complaints about 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 mainte- nance services for a large number of telecommunications and electronic systems and items of equipment used by government departments, including the Medical and Health Department.

Telephone services and various other telecommunications facilities within Hong Kong are provided by the Hong Kong Telephone Company. The telephone system is fully automatic and a flat rate charging arrangement for the local service allows an unlimited number of calls to be made within Hong Kong.

With more than 27 telephones for every 100 people, Hong Kong has the second highest telephone density in Asia and continues to show a steady growth pattern. Telephone service is generally available on demand anywhere in Hong Kong, and the company has extended service to remote areas and smaller offshore islands. By the end of 1977, following the opening of exchanges in Kennedy Town, Ko Tong, Ma On Shan, Tung Chung, Tsing Yi Island and Lai Chi Wo, there was a total of 62 telephone exchanges, with equipment ranging from electro-mechanical switching systems to the latest design of common control semi-electronic apparatus. A ships telephone service is available to enable calls to be made into the public telephone network within minutes of a ship mooring in the harbour.

　　　　　　　Telephone service to the rest of the world is available, in conjunction with Cable and Wireless Limited, by means of both operator and subscriber dialled services. Since the introduction of international direct dialling in 1976, it has been extended to some 40 countries, including most of Western Europe, East Africa, North America,

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Australia, New Zealand, Taiwan, Singapore, Japan and Israel. International direct dialling was initially introduced to four telephone exchange areas, but plans are now well advanced to extend the availability of this service to all areas.

　　　　　　Hong Kong's international telecommunication services are provided by Cable and Wireless. Services available include public telegram, international and local telex, international telephone, data transmission, leased circuits for private communication networks, international television and voicecast, photo-telegram and facsimile. These are provided via various communication systems, such as the international satellite communication system, submarine and land telephone cables, tropospheric scatter system, micro-wave and high frequency radio.

　　　　　　Automatic switching of telegraph and telex messages is provided by computers. The automatic telex exchange has a capacity for 10,500 subscribers. There were 7,147 sub- scribers at the end of 1977.

Civil Aviation

Hong Kong continued to play an important role in the world of aviation in 1977. Because of its strategic position at the hub of the South-east Asian air route network, the aviation industry contributes significantly to the general economy of the territory. During the year, passenger traffic totalled a record 4,899,000, of which about 65 per cent were tourists. This represented an increase of about 600,000 passengers on the previous year's figure.

Freight carried by scheduled and non-scheduled aircraft registered an increase of 6.5 per cent over 1976. In terms of value, this accounted for more than one-fifth of Hong Kong's total domestic exports, about one-sixth of imports and almost one-third of re-exports. In 1977, air-borne goods exported and re-exported were valued at almost $11,000 million.

　　　　　　　At the end of the year, some 30 airlines were operating more than 900 scheduled services each week between Hong Kong and South-east Asian countries, the Middle East, Europe, North America, Africa, Australia and New Zealand. In addition, about the same number of airlines operated non-scheduled passenger and freight services.

　　　　　　Hong Kong International Airport, one of the busiest airports in the Far East, was extended and further improved during the year to keep pace with the rapid growth in air passenger traffic.

　　　　　　A $300 million programme to improve passenger-handling capacity forged ahead. In mid-August, a new departure concourse was opened with two check-in islands providing a total of 48 check-in positions, each equipped with an intercom system and a built-in position for the security examination of passengers' baggage. These check-in positions are linked to a semi-automatic system through which baggage is channelled to a computerised sorting system in the basement that directs bags to a location designated for each flight.

A large number of immigration clearance counters was added to complement the extended processing controls for departing passengers.

This was followed by the opening of the new arriving passenger processing area at the extended terminal building in early September. Again, more immigration desks and Customs benches equipped with conveyor belts were brought into use to process arriving passengers quickly.

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Two new baggage reclaim units with automatic displays to indicate the location of arriving passengers' baggage were brought into operation to complement the two existing baggage reclaim units.

　　　　　　Passenger handling capacity was increased from 2,200 to 4,500 people an hour. On completion of the improvement programme in late 1979, it is expected that the capacity will be further increased to 5,500 people an hour.

The computerised automated flight information display system was brought into full operation during the year. Relevant information about incoming and outgoing flights is processed by a computer and displayed on large flapboards and television monitors at a number of strategic positions in the arrival and departure halls.

　　　　　　To improve air traffic control, a new long-range radar was being installed on Mount Parker to control, at extended ranges, aircraft flying on airways to and from Hong Kong.

This radar, which is expected to be functional by April, 1978, will give precise posi- tions of aircraft within 250 nautical miles and at altitudes up to 18,300 metres. The data collected by the radar will be conveyed to the Air Traffic Control Centre at the airport by a micro-wave radio link. It will complement the high-resolution approach radar on Beacon Hill that controls aircraft within 60 nautical miles of the airport, the precision approach radar at the airport that guides aircraft within 10 nautical miles to the runway during poor visibility, and the secondary surveillance radar on Mount Parker that provides identification and altitude information on commercial aircraft. A sequenced strobe-lights system installed on the curved approach to runway 13 became operational late in the year. Adjustments were still being made to achieve optimum light output as seen from the air and minimal light spectrum as seen from the ground.

Shipping

The Kwai Chung Container Terminal, which ranks among the top four container terminals in the world, handled the equivalent of 1.2 million 20-foot containers in 1977. The terminal has six berths totalling more than 1,800 metres fronting on to more than 60 hectares of cargo-handling space, which includes container yards and container freight stations. Up to six 'third-generation' containerships can be simultaneously accommodated and worked at these berths, all of which are operated by private com- panies or consortia.

　　　　　　　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 1.6 to 9.6 kilo- metres and having an area of some 6,000 hectares. Besides its container-handling capacities, the port caters for all the requirements of modern shipping. Hong Kong is prominent as a pivotal port in South-east Asia, with a considerable 'feeder' trade being conducted principally with ports in Taiwan, the Philippines and Korea. The port is state-owned and administered by the Director of Marine. He is advised by the Port Executive Committee on the shipping, commercial and other changing needs of the port. The Port Committee advises the Governor on all long-term planning aspects.

　　　　　　　In 1977, some 8,700 calls at Hong Kong were made by ocean-going vessels. The total deadweight tonnage of cargo imported and exported through the port by such vessels was more than 23 million tonnes. This included almost 17.5 million tonnes of

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　　　　　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 has levelled off at about 41 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 that helps to achieve the rapid turnround of ships has been brought into use by the wharf and godown companies. A mobile floating roll-on-roll-off ramp is operated by one of the Kwai Chung Container Terminal operators. Nearby, at Tsuen Wan, there is a 16-storey godown with a usable floor area of 140,000 square metres; this godown is equipped with container lifts serving all floors.

Most wharves and terminals are provided and operated by private enterprise, and they are capable of accommodating vessels of up to 305 metres in length with draughts of up to 12.2 metres. 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 continued provision of public cargo working areas throughout Hong Kong to keep internal cargo movement swift and efficient.

Within the port, there are 72 mooring buoys operated and maintained by the Marine Department for ocean-going vessels. Of these buoys, 43 are suitable for vessels up to 183 metres in length and the rest for ships up to 135 metres in length. The moorings include 64 special typhoon buoys, which are located so that ships can remain secured to them during tropical storms. This obviates unnecessary ship movements, thus help- ing to maintain efficiency and reduce operational costs. 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. In 1977, more than 5.2 million passengers were carried by the jetfoils, hydrofoils and traditional ferries plying this route.

For ships calling at Hong Kong, quarantine and immigration facilities are available on a 24-hour basis at the Western Quarantine Anchorage and, from 6.30 a.m. to 6 p.m., at the Eastern Quarantine Anchorage. Ships are normally cleared inwards on arrival and large passenger vessels are processed on the way to their allocated berths. Advance immigration clearance and radio pratique may be obtained by certain vessels on application.

Pilotage in Hong Kong is not compulsory, but is considered advisable because of the density of traffic and the scale of harbour works continually 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 lit 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 international maritime frequencies, which gives comprehensive marine communications throughout the harbour and approaches. There also is a continuously monitored disaster network

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that 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 1,300 kilometres of Hong Kong, the Marine Department is able to act as a rescue co-ordinating centre. In September, a consultant firm began a six-month study on vessel traffic management for the waters of Hong Kong.

A watch on shipping, fairways, typhoon shelters and cargo working areas is kept 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 wharves at oil terminals or from a fleet of harbour oilers. Fresh water is obtainable at commercial wharves or from water boats that service vessels at anchor or at government mooring buoys. A harbour telephone service is available either at buoys or at wharves.

There are extensive facilities in Hong Kong for repairing, maintaining and dry- docking or slipping all types and classes of vessels up to about 35,500 tonnes dead- weight and up to 228 metres in length and 26.8 metres beam. Plans are going ahead 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, at the same time establishing new facilities there. There is already a floating dry dock off Tsing Yi with a lifting capacity of 100,000 tonnes deadweight. Hong Kong has more than 130 minor shipyards equipped to undertake repairs to small vessels. These yards also build specialised craft, partic- ularly sophisticated pleasure craft and yachts.

Hong Kong is a prominent centre for recruiting seamen. More than 26,000 Hong Kong seamen serve on board some 1,500 foreign-going vessels of various nationalities. The Seamen's Recruiting Office and the Mercantile Marine Office register and super- vise the employment of seamen on board vessels of all flags. In March, the Governor in Council ordered that a Hong Kong Merchant Navy Training Board be established to assess the training needs of local seamen and to consider measures that would improve their training standards and thereby enhance their employment prospects. The board has 16 members, including representatives of relevant government departments, sea- men's training schools and employer and employee associations. Six specialist sub- committees, each dealing with a separate area in the training of seafarers, have since been formed under the board.

The Mariners' Clubs in Kowloon and Kwai Chung provide recreational and welfare facilities of a high standard for visiting seamen of all nationalities.

Transport in Hong Kong

Sometimes it must seem that all of Hong Kong's population of more than 4.5 million is out on the roads. The pavements of the urban areas are crowded with pedestrians at all hours of the day and, to move further afield, these 4.5 million people make 6.1 million public transport trips each day. They travel by ferry, rail, bus or any other of the varied

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public transport road vehicles available. In addition, a fleet of 42,798 commercial vehicles is constantly moving goods essential to the economy and 122,858 private vehicles contribute to ever-growing usage of the territory's 1,092 kilometres of roads. More people and more movement have made suffocating road congestion in the near future a major threat that the government is having to face. Hence the decision in 1975 to proceed with the initial system of the mass transit railway for the most seriously threatened urban areas and in July, 1977, to extend this system westward across crowded Kowloon. Hence also the Report on the Comprehensive Transport Study, published in late 1976, as a framework for future transport planning and management. Using these starting points and recognising that careful planning for the future is essential, a number of other major traffic and transport studies have been put in hand. These include investigation of the problems of the northern coastal corridor of Hong Kong Island and proposals for modernising and expanding the surface railway system. All the material thus derived is being sythesised into a White Paper on Transport Policy to present plans for transport facilities for the years ahead.

Roads

As a result of the exceptionally dry summer, progress on highway works was very good. During the year, $270.6 million was spent on major projects and $45.2 million on improvements and maintenance. The total length of roads maintained by the Public Works Department now stands at 1,092 kilometres, of which 343 km are on Hong Kong Island, 330 km in Kowloon and 419 km in the New Territories.

　　　　　　On Hong Kong Island, work began on constructing the Ap Lei Chau Bridge, which will link the island of Ap Lei Chau with Aberdeen and facilitate industrial and residential development there. Construction also began on a further stage of the new road through Aberdeen, from Shek Pai Wan Road to the wholesale fish market. Improvements to the road link between Aberdeen and Western district continued in the form of widening Pok Fu Lam Road from Mount Davis Road to Pok Fu Lam Reservoir Road, while work started on constructing a flyover connecting Pok Fu Lam Road with Des Voeux Road West. As part of a scheme designed to improve traffic flow between Central and the Mid-Levels, the construction of flyovers at both the upper and lower ends of Garden Road progressed satisfactorily; the Robinson Road - Castle Road junction improvements were completed and opened for use and con- struction started on an elevated road and flyovers at the Robinson Road - Old Peak Road - Glenealy junctions. Good progress was maintained on extending the Canal Road flyover into Happy Valley and on improving the Queen's Road East - Stubbs Road junction and the widening of Tin Lok Lane and Morrison Hill Road. Good progress also was made on the detailed design of Stage I of the Island Eastern Corridor, forming the first part of a new road from Causeway Bay to Shau Kei Wan.

In Kowloon, traffic flow in the Tsim Sha Tsui and Yau Ma Tei districts was im- proved with the completion of an elevated road from Gascoigne Road to Tong Mi Road. Other projects completed in this area included the Salisbury Road extension and the U-turning loop at the Chatham Road interchange. Improvement and recon- struction works were completed in Canton Road, Cornwall Street and Lung Cheung Road, and new roads and drains were provided for the Cheung Sha Wan industrial area. Work continued on the East Kowloon way project with the completion of a

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　　　　　section of dual carriageway on the Kowloon Bay reclamation, east of the Airport Tunnel, and a start on the San Shan and Wu Hu Street interchanges between the tunnel and Hung Hom. Work began on a section of the elevated road along Lai Chi Kok Road forming part of the West Kowloon Corridor which, on completion, will extend from Yau Ma Tei to Lai Chi Kok. Good progress was maintained on improving Castle Peak Road north of the Lai Chi Kok interchange and constructing the Hoi Bun Road extension and the Kwun Tong cargo handling area.

　　　　　　　The major project under construction in the New Territories was Tuen Mun Road Stage I. This was substantially completed by the end of the year and is expected to be opened to traffic early in 1978. Design work on the second three-lane carriageway, which forms Stage II of the project and which is needed to cope with the increase in traffic brought about by the development of Tuen Mun New Town, was virtually completed.

　　　　　　　Design work for the new road that will run along the coast between Sha Tin and Tai Po was well advanced. Projects completed during the year included a new railway bridge at the 174-milestone in Tai Po Road with associated road improvement works; duplication of the existing road bridge over the Shing Mun River at Sha Tin; roads and drains for Kwai Shing and Ha Kwai Chung Housing Estates; a footbridge over Castle Peak Road at Chung On Street in Tsuen Wan; and improvement of the South Lantau Island Road between Cheung Sha and Tong Fuk. Satisfactory progress was maintained on improving the existing Tai Po Road between the Chinese University and the Tai Po Market level-crossing, and constructing the second carriageway of Lion Rock Tunnel Road, the flyover across Kwai Chung Road connecting Kwai Fuk Road with Lai King Hill Road, and a new link road between Kwai Fuk Road and Texaco Road to replace the existing narrow Gin Drinker's Bay Road. Construction was started on Stage I of the Tsuen Wan by-pass from Kwai Chung Road to Texaco Road, the grade-separated intersection at Castle Peak - Texaco Road and widening Castle Peak Road from Texaco Road to Chai Wan Kok Street and Ting Kok Road from Tai Po Market to Ha Hang.

Road Tunnels

The Lion Rock Tunnel, opened in 1967, was Hong Kong's first road tunnel. It is managed by the Transport Department and links Kowloon with Sha Tin and other parts of the New Territories. A second tube is under construction and due for com- pletion in January, 1978. The old tube will then be closed for renovation and the twin tube complex, with two lanes in each direction, will be in full operation by October, 1978. In 1977, the tunnel was used by 6.4 million vehicles and revenue from toll fees, which vary from $1 to $2, totalled $7.9 million.

　　　　　　　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 1977, some 21.9 million vehicles used the tunnel and revenue from toll fees amount- ed to $135.5 million. The fees vary from $2 for motorcycles to $20 for heavy goods vehicles.

　　　　　　　The Kai Tak Tunnel is a twin tube, four-lane government project connecting To Kwa Wan with Kwun Tong under the airport runway. The tubes were completed in 1976 and sealed off awaiting road connections. The remaining works and electrical

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installations were begun in late 1977 and are expected to be completed in early 1980. The tunnel will be managed by the Transport Department.

　　　　　　The Aberdeen Tunnel, another twin tube, four-lane government project, will connect Aberdeen with Happy Valley. Excavation work on the tunnel began in 1977 as did construction of the Canal Road flyover extension, which will connect the tunnel to other major traffic arteries. The tunnel is due to be opened in mid-1980. This toll facility will be managed by the Transport Department.

Public Transport

Few other countries can rival the intensity and diversity of Hong Kong's public trans- port system. Every conceivable mode of transport has developed and survived with a minimum of government regulation and an absence of state subvention. The com- prehensive range of transport services includes 2,508 buses, 4,350 minibuses, 6,203 taxis, 162 double-deck tram cars with 22 trailers, 93 ferries, a funicular railway on one of the world's steepest gradients, the Kowloon-Canton Railway (British Section), a cable-car system and a mass transit railway under construction. With its unique geographical setting and the complex interaction of commercial and industrial activity, all forms of public transport are viable and are operated at a level of efficiency that is the envy of any of the world's capital cities. Almost 90 per cent of the population relies on public transport and demand usually outstrips supply. Since the economic recession and fuel crises of 1973, passenger traffic has grown by almost 28 per cent. Traffic figures for the various transport modes are detailed in Appendix 36.

Buses

Public omnibus services in Hong Kong are operated under franchises granted by the Public Omnibus Services Ordinance. 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, vehicle allocation and carrying capacity. The franchised companies carry an average of 2.9 million passengers a day.

　　　　　　　The Kowloon Motor Bus Company (1933) Limited operates services throughout Kowloon and the New Territories, as well as joint services through the cross-harbour tunnel with the China Motor Bus Company Limited on a pooled mileage basis. On urban bus routes, flat fares of 20, 30, 40 or 50 cents are charged according to route distance, while on rural bus routes the fares range from 20 cents to $1.50. Fares remained unchanged during the year.

The company poineered the introduction of express coach services in 1975, using single-deck coaches that guarantee an armchair seat as an attractive alternative to the private car. There are now 16 coach routes in operation. Two of these routes serve 'Hong Kong International Airport - one linking with Tsim Sha Tsui and the other through the cross-harbour tunnel to Central district. Three routes operate to the New Territories on Sundays and public holidays. Fares are $1 on Kowloon routes and $2 on cross-harbour and New Territories routes.

　　　　　　　With a licensed fleet of 1,708 vehicles (1,225 double-deck, 381 single-deck and 102 coaches) operating 159 routes, the company is the largest road passenger transport operator in South-east Asia. The company's vehicles travelled 73.26 million miles in

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　　　　　　1977 and carried an average of 2.22 million passengers a day. Most of the new vehicles entering service are 123-passenger double-deckers. The total licensed fleet has a capacity of 154,838, of which 84 per cent of the vehicles are one-man operated, using an exact fare system. Vehicles under construction or on order at the end of 1977 will increase capacity to 196,819.

　　　　　　　The China Motor Bus Company Limited operates 70 services on Hong Kong Island, carrying 0.66 million passengers daily. On urban routes, fares are 30, 40 or 50 cents while on suburban routes the fares range from 30 cents to $1 according to distance. The licensed fleet comprises 751 vehicles (739 double-deck and 12 single- deck), of which 98 per cent are one-man operated using an exact fare system. On average, each bus travels 120 miles and carries 1,120 passengers a day. The fleet carrying capacity is 70,812. The company is standardising on a complete double-deck fleet with the exception of a 'midibus' and one coach used for private hire work.

　　　　　　The two companies operate an extensive network of 14 joint services through the cross-harbour tunnel under a pooled mileage scheme based on route length. The 205 high-capacity double-deckers allocated carry an average of 350,115 passengers a day. Two all-night services operate on a daily basis.

　　　　　　　The New Lantao Bus Company (1973) Limited operates five services on Lantau Island, carrying 5,497 passengers daily. Almost 37 per cent of the weekly traffic is carried on Sundays and public holidays. Recreational demand on fine weekends exerts heavy pressure on the fleet of 45 single-deck buses, whose carrying capacity is only 1,790. Road improvements are now underway on the island to permit double-deck operation.

Minibuses

Public light buses are 14-seat minibuses introduced in 1969 to replace the former dual- purpose vans. The fleet has now been fixed at a maximum of 4,350 vehicles, most of which are individually owned. Apart from eight services operating at fixed fares on fixed routes on Hong Kong Island, minibuses are free to operate anywhere and drivers can decide their own fares and stopping places.

　　　　　　　To reduce traffic obstruction caused by the constant kerbside stopping and lane changing of minibuses in urban areas, a number of prohibited and restricted zones has been introduced, involving either an entry prohibition or restriction on picking up and setting down activities. Minibuses are prohibited from operating on Lantau and Tsing Yi Islands and in the Tsim Sha Tsui district.

　　　　　　　Fares range from 30 cents to $1.50 on urban routes and are $2 on routes to the New Territories or through the cross-harbour tunnel. During peak hours and on festival days, most fares are at least doubled. Minibuses tend to ply for hire on about 170 routes in direct competition with the bus and tram services, but steps are being taken to divert operation into a complementary feeder role in areas unsuited to conventional buses. About 1.62 million passengers are carried daily by minibuses throughout the territory.

　　　　　　Apart from the bus companies and minibuses, there are 2,569 buses and coaches used mainly for tourist sightseeing, carrying factory workers or conveying children to and from school. Certain private housing blocks operate private bus services exclu- sively for residents.

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　　　　　Hongkong Tramways Limited operates a tram service on five routes along the urban north shore of Hong Kong Island. There are 162 double-deck cars with 22 trailers operating the 30-kilometre double-track system between Shau Kei Wan and Kennedy Town and a single loop around Happy Valley. A flat fare of 30 cents is charged and all cars are one-man operated with passengers paying into a fare box on exit. The average daily passenger volume is 0.37 million - 2,274 a car and the highest utilisation of any road passenger transport service in Hong Kong.

The Peak Tramways Company Limited operates a funicular tram service stopping at five intermediate stations between Garden Road and Victoria Peak, 397 metres above sea level. It is considered to be the second steepest funicular railway in the world, using steel wire ropes as its sole means of haulage with the steepest gradient being one in two. The service began in 1888 and the two service cars (a third is used as a main- tenance spare) carry 5,319 passengers a day. The full distance fare is $1.50 with $1 charged for part-distance journeys.

Aerial Ropeways

A new mode of transport for Hong Kong was inaugurated on January 10, 1977, with the opening by the Governor of Ocean Park at Aberdeen, which contains the world's largest capacity passenger-carrying aerial ropeway.

　　　　　　During the preceding months, staff from the Electrical and Mechanical Office of the Public Works Department worked to provide the details for the enactment of the Aerial Ropeway (Safety) Ordinance and subsidiary legislation. They also ensured that the installation had been satisfactorily carried out and tested, and that the Ocean Park staff were competent to operate this new mode of transport.

The staff of the Electrical and Mechanical Office have continued to carry out periodic inspections and to check the competence of new staff at Ocean Park, and also to ensure that the annual survey and overhaul of the ropeway is of the necessarily high standard for the public's continued safety.

During the first six months of operation, a total of 2,292,256 people were carried by the ropeway.

Ferries

The Star Ferry Company Limited operates two passenger ferry services linking Central district on Hong Kong Island with Tsim Sha Tsui and Hung Hom in Kowloon. The 10 vessels provide frequent sailings and carry 139,620 passengers a day. Fares charged on the seven-minute crossing to Tsim Sha Tsui are 30 cents (upper deck) and 20 cents (lower deck). A flat fare of 50 cents is charged on the Hung Hom crossing.

　　　　　　The Hongkong and Yaumati Ferry Company Limited provides a comprehensive network of ferry services across the harbour and linking Hong Kong Island with the outlying districts and islands. Three cross-harbour vehicular ferry services carry 9,972 vehicles a day at charges ranging from $1 (motor cycle), $3 (motor car) to $9 (heavy goods vehicle). There are 14 cross-harbour passenger services, all but three of which charge a 40-cent fare for both decks. The remaining routes upon which deluxe class vessels are operated charge 50 cents and $1 according to the type of accommodation. There are 13 routes operating daily to and within the New Territories, and providing

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the only transport link to Cheung Chau, Lantau, Lamma, Peng Chau, Ma Wan, Po Toi, Hei Ling Chau, Ping Chau and Tap Mun islands. Fares range from 30 cents to $2 according to distance. Excursion services are operated on Sundays and on public holidays.

　　　　　　The company operates a fleet of 83 vessels - 36 double-deck, eight triple-deck, 11 water 'buses', 11 water 'taxis', five hoverferries, 11 vehicular ferries and a 397-seater deluxe vessel suitable for open waters. In addition to their use on ordinary passenger services, the triple-deck vessels are employed on harbour cruises, and the airconditioned top deck has restaurant and night-club facilities. Carrying an average of 365,596 pas- sengers daily, the company is the largest ferry operator in the world.

A number of minor ferry services are provided by small independent operators in various parts of the territory. 'Walla-walla' boats operate to ships anchored in the harbour and also provide a cross-harbour service at night when the ordinary ferry services cease operation.

Taxis

There are 5,465 taxis licensed to operate in the urban areas, including all Hong Kong Island, Kowloon and the new towns of Tsuen Wan and Sha Tin in the New Terri- tories. Fares are fixed and charged by metered tariff, equivalent to $2 for the first 1.61 kilometres and 20 cents for each subsequent fifth or part of that distance. A surcharge of $10 is made for cross-harbour journeys through the tunnel or by ferry. About 628,000 people use taxi services each day at fares that are among the cheapest in the world. Many vehicles are airconditioned and the larger taxi companies operate a radio control system to cater for pre-booking arrangements.

The rural areas of the New Territories outside Tsuen Wan and Sha Tin have a fleet of 738 taxis, which charge a standard fare equivalent to $1 for each 1.61 kilometres. Hire cars are available on a pre-arranged basis, the charges being negotiated between the hirer and the operators. However, since many of these vehicles have attempted to operate similar to taxis by touting at the kerbside, steps are being taken to convert the fleet of 916 public hire cars into taxis at a conversion premium.

Transport Administration

The Governor in Council is advised by a government-appointed Transport Advisory Committee on broad issues of transport policy aimed at improving the movement of people and freight. The Commissioner for Transport is the statutory authority respon- sible for planning and regulating public transport services. Apart from the management of road tunnels, vehicle registration and licensing, driving tests and vehicle inspections, he carries out statutory functions under the Road Traffic Ordinance and other legisla- tion relating to individual public transport companies.

　　　　　　　During the year, a number of amendments were made to road traffic and transport legislation. These related to the production of a valid third party insurance certificate by a buyer of a registered vehicle; route alterations and temporary services of ferries operated by the Star Ferry Company and the Hongkong and Yaumati Ferry Company; limiting the carriage of passengers in a public service vehicle according to the registered seating capacity; converting public cars into urban taxis; issuing hire car permits; and the setting up of Transport Tribunals to be chaired by the

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Commissioner for Transport to hear cases involving suspension of motor vehicle licen- ces because of illegal operation of the vehicles.

Traffic Management and Planning

Application of traffic management techniques continued in an effort to facilitate move- ment on the existing road network and to meet changes in traffic demands. A major scheme was introduced in Western district involving changes in the traffic routing of a number of streets and the installation of light signals at the junction of Des Voeux Road West and Connaught Road West. Elsewhere, vehicular movements were helped with the introduction of clearways, junction improvements, traffic signals, road widen- ing schemes and traffic re-routing. Footbridges and subways were constructed and zebra and light signal crossings were installed to aid pedestrians.

By the end of the year, 352 sets of traffic signals were in operation and the street lighting system also had been expanded with the addition of 1,223 new lamps. A major advance in the rationalisation of traffic signal operation was the commissioning in March of the area traffic control computer system in West Kowloon. The system monitors and controls traffic signals at 83 junctions in a busy commercial area. It also provides for the automatic collection of traffic data, for automatic fault reporting and for the institution of signal settings giving a 'green wave' through adjacent junctions to eliminate delays to emergency vehicles.

　　　　　　In the field of transport planning and surveys, a team of engineers and statisticians updated various aspects of the Hong Kong Comprehensive Transport Study as cir- cumstances changed and new proposals for development were put forward. A report was published on a study of the traffic implications of the construction of a bridge linking Lantau Island with the mainland, including the implications of proposals to develop an international airport and other facilities on the island. Good progress was made on transportation studies in Tuen Mun New Town. Studies of car journey times, speed limits, goods vehicle movements at the new air cargo terminal, and the origin and destination of passenger trips on cross-harbour ferries also were completed.

　　　　　　The rapidly-changing problems associated with the construction of the mass transit railway in Hong Kong and Kowloon involved the multi-disciplinary traffic manage- ment group in a number of radical changes in the strategic traffic plan designed to facilitate the building of the railway. These were successfully introduced, monitored and amended throughout the year as part of a programme of activity undertaken to reduce potential sources of delay in the construction of the railway. The planning and co-ordination of traffic management schemes to facilitate the construction of the mass transit railway extension to Lai Chi Kok and Tsuen Wan began early in the year in anticipation of the start of construction work in mid-1978.

Licensing

At the Transport Department's vehicle examination centre, 44,569 vehicles were in- spected during the year for various purposes, but mainly in connection with registra- tion and re-licensing of vehicles.

　　　　　　The number of registered vehicles, which dropped for two consecutive years in 1974 and 1975, rose again in 1976 and the upward trend was maintained during the year, rising to 207,521. This was 15,775 more than in 1976. The bulk of the increase was

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in goods vehicles (from 37,108 to 42,798) and private cars (from 113,665 to 122,858). Vehicle statistics are given in Appendix 36. Because of a change of policy in March, 1977, that allows local residents with acceptable overseas driving licences to obtain a full Hong Kong driving licence without a test, more new driving licences were issued in 1977. They totalled 78,509, compared with 75,492 in 1976.

　　　　　　As a result of a switch-over to a new computer with greater capacity, the computer system for the registration and licensing of vehicles has been deferred and its imple- mentation is now expected to take place in 1979.

　　　　　　　Altogether 18 training courses for 3,030 learner drivers were held at the Transport Department's indoor driving instruction centre. Since the opening of the centre in 1974, 11,339 people have been trained in basic driving techniques with the aid of 16 driving simulators, films and a computerised control panel.

　　　　　　　New provisions in the Road Traffic Ordinance (Cap. 220) were enacted in June, 1977, to enable the Commissioner for Transport to re-register public cars as urban taxis on payment of a fixed premium of $75,000 or to re-classify such vehicles as private cars with a hire car permit at the option of the registered owners. When completed in mid-1978, this conversion scheme will result in the abolition of public cars and the introduction of hire car permits enabling the holders of such permits to use their private cars to provide personalised transport services on a contract hire basis.

Parking

The government provides parking facilities in eight multi-storey car parks and in four temporary open-air car parks, two of which cater for commercial vehicles. The multi-storey car parks have a total capacity of 5,059 vehicles, while there are 1,070 spaces in the temporary car parks.

Off-street parking facilities also are operated by private enterprise in 46 multi- storey car parks with spaces for 7,350 vehicles - mostly in the commercial-residential areas of Causeway Bay, North Point, Tsim Sha Tsui, Mong Kok and San Po Kong. On-street parking spaces are provided where they do not cause traffic obstruction. In areas with limited available spaces but with high demand, the spaces are metered to deter long-term parking. There are 10,849 metered spaces, of which 1,025 cater specially for goods vehicles. Payment is required from 8 a.m. to midnight. In many areas, parking is controlled by traffic wardens who, with the police, operate a fixed penalty system for parking offences.

Kowloon-Canton Railway

Work on laying a double-track on the main line from Hung Hom to Sha Tin (excluding the Beacon Hill Tunnel), which began in October, 1975, was completed in December. The associated coloured light signalling scheme, controlled from a signal control centre at Hung Hom, Kowloon, was partly installed during the year. It will be partially in use in October, 1978, with full operation by February, 1979. Approval was granted by the government in July to double-track the second one-third of the main line from Sha Tin to Tai Po Market. Work will begin early in 1978 and is expected to be com- pleted in mid-1979. Plans also are being prepared for double-tracking the remainder of the line to Lo Wu at the border.

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The construction of two new sidings at Fo Tan, near Sha Tin, for unloading oil and dry goods imported from China was completed in July. The oil siding was opened in May for unloading rail-borne petroleum products from China, which began exporting oil to Hong Kong in 1974.

　　　　　　Work on the construction of a new loop line and station near the railway workshops at Ho Tung Lau, Sha Tin, started in March to service the new Sha Tin racecourse. It is expected to be completed by September, 1978, in time for the opening of the new racecourse in October.

A marshalling yard at Lo Wu, consisting of seven tracks with an overall trackage of 3,140 metres, was partially opened in November and will be completed in mid-1978. This will take over the marshalling of goods wagons arriving from China, a service that the People's Republic of China formerly provided.

　　　　　　International tenders were called in June to build a new tunnel through Beacon Hill to accommodate two railway tracks with lower approach gradients. Construction work will begin in January, 1978.

　　　　　　To raise the standard of the track for faster and heavier trains, reballasting under the existing track to a greater depth started in September. Heavier 54 kilogram per metre rails resting on concrete sleepers with long welded sections are being introduced progressively to replace 43 kilogram per metre rails on wooden sleepers. This project will be completed in 1982.

　　　　　　The remodelling of the Mong Kok and Sha Tin stations both started in October. The Sha Tin station and the first phase of the Mong Kok station will be completed about the end of 1979. As a result of the remodelling of Mong Kok station, the unloading of livestock imported from China formerly dealt with in Mong Kok was transferred to new sidings at Ho Man Tin from September. Ho Man Tin was partly opened in October, 1976.

Tendering for the remodelling of the Sheung Shui station is still in progress and construction will start about the beginning of 1978. The work consists of building a new passing loop line 609 metres long, an additional sheltered platform 365 metres long, and a footbridge linking the new platform with the old platform. It is expected to be completed in October, 1978.

　　　　　　Four air-conditioned coaches were put into service in February, 1977. Tenders were called in the middle of the year to provide air-conditioning for four more coaches and it is hoped that they can be put into service before next summer. Plans also are in hand to have three more coaches air-conditioned during the 1978-9 financial year.

Two new locomotives, each of 1,492 kW, arrived in March and were put into service immediately. As a result, the number of daily passenger trains was increased from 20 to 22 on April 18, and the number of possible goods trains increased to 10 each way. Six new rapid ticket-issuing machines, each capable of issuing about 200 tickets a minute, were installed in the booking office in April.

In January, a British consultancy firm was appointed to carry out a study on the possible electrification of the main line, and the technical and economic feasibility of a number of railway extensions. A report on the findings was submitted to the government in October and the recommendations are now being studied.

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Civil engineering construction work for the modified initial system of the mass transit railway was more than 40 per cent complete by the end of the year.

The 15.6-kilometre modified initial system will link the Central district of Hong Kong Island with Kwun Tong in Kowloon. There will be 12 stations underground and three overhead. The line is being built by the Mass Transit Railway Corporation, a public corporation owned by the government, which undertook to provide $800 million in return for equity when the corporation was established in September, 1975. The total cost of building and equipping the modified initial system is $5,000 million at prices adjusted for escalation to 1980, when the system will become fully operational. The total cost of the system, including land and other costs, will be about $5,800 million.

Money to finance the project has been raised by export credit finance and by loans from both local and international financial markets. All debts are expected to be repaid by 1991-2.

During the year, the Mass Transit Railway Corporation entered into joint ventures with local property developers to develop the space above Chater and Admiralty stations into commercial and office tower blocks. These developments, together with an earlier agreement to build a residential and commercial complex with homes for about 25,000 people above the railway depot at Kowloon Bay, will provide an addi- tional 'cushion' for the financial viability of the project.

The corporation also began to recruit and train staff to run the railway. Fourteen senior operational staff underwent a three-month training course with the London Underground.

Close liaison was constantly maintained between the corporation and various government departments concerned with the construction of the railway. Particular attention was paid to informing the public about the construction work and to minimising inconvenience and disturbance arising from it.

The advance compensation scheme for loss of business caused by the railway con- struction continued to operate. The scheme was designed to alleviate hardship for small business operators occupying premises with a rateable value of less than $250,000.

In July, the Governor in Council approved a proposal by the Mass Transit Railway Corporation to extend the modified initial system to the growing town of Tsuen Wan. The extension will be 10.7 kilometres long and have 11 stations. Work on the exten- sion is expected to begin in mid-1978 and be completed at the end of 1982. The estimated cost, including an escalation factor for inflation, but excluding interest pay- able, finance charges and Crown land premia, is $4,100 million. It will be financed entirely with loans raised by the corporation.

The Media

黒復

淄

　　　　　HONG KONG has a thriving free Press made up of 388 publications - and newspaper readership figures put the population among the world's most avid readers.

　　　　　　　There are three commercial television stations that reach an estimated three million viewers a day, and two radio stations that 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 121 of the 388 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 to every 1,000 people.

Hong Kong's newspapers include four English dailies and 107 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 1.6 million. Four of the Chinese dailies sell more than 100,000 copies each.

　　　　　　Periodicals represent a main sector of the Press. There are 267 periodicals - 194 Chinese, 50 English and 23 bi-lingual. 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 in journalism and also counsels its members involved in disputes with employers.

　　　　　　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 club.

　　　　　　Chinese and English language newspapers are represented by the Newspaper Society of Hong Kong, which has 14 members and three associate members. It is empowered 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 develop and expand the Press in Asia. The PFA is an association of Asian publishers and editors representing 300 publica- tions. It co-ordinates the functions of seven national Press institutes - from New Delhi to Korea.

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　　　　　　Hong Kong is the base of South-east 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 that 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 excellent distribution and communication facilities are readily available. In 1977, exports of printed matter amounted to some $246 million, com- pared 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; others con- centrate 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 print- ing machines are widely used and leading printers introduced eight-colour rotary and web-offset machines as early as 1962. During the first seven months of 1977, Hong Kong used 35,229 tonnes of newsprint valued at $59,784,132.

　　　　　　The other 75 per cent of printing firms use the letter-press method and generally produce small-scale printing, such as letterheads, posters, wrappers and some textbooks.

　　　　　　Since the 1960s, many overseas publishers have set up offices or regional head- quarters in Hong Kong. Educational book publishers who have done so include Heinemann Educational Books, the Oxford University Press, McGraw-Hill Far Eastern 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.

Television

Hong Kong has three commercial wireless television stations - Television Broadcasts, Rediffusion Television and Commercial Television. They are usually referred to as TVB, RTV and CTV. TVB and RTV operate both Chinese language and English language services, while CTV operates a single Chinese language service.

　　　　　　　The UHF, 625-line PAL colour system is standard and the three stations maintain well-equipped studio and office complexes using the latest production and trans- mission facilities and techniques. Virtually all transmissions are in colour.

　　　　　　Each day, the stations broadcast a total of about 65 hours of programmes to an estimated 3.2 million viewers. Some 90 per cent of Hong Kong homes have televi- sion sets, of which 48 per cent are colour.

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Imported programmes from many parts of the world have a wide following and are broadcast either in their original language or dubbed into Cantonese. However, the most popular programmes are the locally-produced drama and variety series. Because of this preference in local tastes, the stations produce from their own resources a remarkable quantity and variety of entertainment programming, ranging from spectacular costumed historical dramas to elaborate variety shows competing for the attention of viewers. It is now common practice by the stations to send production crews to many parts of the world to obtain footage for inclusion in these programmes or to film complete programmes overseas for local screening.

　　　　　　　The television stations are licensed to operate under the provisions of the Television Ordinance, which is administered by the Government Television Authority. This office is vested in the Commissioner for Television and Entertainment Licensing, who is responsible for the regulation of station licences and the enforcement of the pro- gramme, advertising and technical standards required of the licensees.

　　　　　　　In addition to its major function as a source of entertainment, television also plays an important role in Hong Kong in the sphere of education. The Government Educa- tional Television Service (ETV), which utilises the transmission facilities of the com- mercial licensees, is watched by 500,000 children in both primary and secondary schools. The programmes are written by specialist Education Department staff, who provide schools with the associated programme literature and follow-up work. The programmes are produced by the government station, Radio Television Hong Kong, and are made in colour using film animation, drama and documentary techniques. During the year, secondary school ETV was extended to Form II and received and recorded on video cassette machines by more than 300 schools.

　　　　　　　Further educational programming is provided by CTV. It broadcasts a two-hour period of special instructional programmes each week night, during which commercial advertising is excluded. Subjects covered during the year were commercial design, office practice, foreign languages and Chinese painting and calligraphy.

The government also is active in the area of public affairs programming and all three stations are required to provide air time for government-produced programmes. The Government Information Services produces topical features and public service information messages, but the majority of government programmes are produced by the television production unit of Radio Television Hong Kong (RTHK). In 1977, the output of this unit remained at about four hours a week, taking up eight hours of time on the five commercial channels. There were, however, significant changes in that the quality of output was upgraded and greater emphasis was placed on programmes for youth. The highly-successful Below the Lion Rock drama series, which had been running for five years, was replaced by a weekly play about children living in the new town of Sha Tin. Within weeks, the new series had become one of the most popular local programmes.

　　　　　　　The Youth Call programme aimed at children up to early teens was doubled in length to include Urban Council sports and recreation activities. The Junior Police Call programme, which now has a club membership of more than 200,000, celebrated its third birthday.

　　　　　　　The programme duration of the RTHK English-language series on weekday even- ings was doubled, with greater emphasis on programmes that explained to expatriate audiences local social problems and attitudes to events.

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　　　　　　For the third year running, RTHK won a prize at the Asia-Pacific Broadcasting Union Young Film Makers' Competition at Shiraz. The award, the Fereidum Rahnema Golden Prize, was for the 50-minute drama, Wild Children, in which young children were used as actors. The film was one of two RTHK drama episodes shown at the National Film Theatre as part of the London Film Festival in November.

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 in both the FM and AM wavebands. The station's role is to produce radio and television pro- grammes that inform, educate and entertain. It operates under its own management.

　　　　　　　RTHK's four radio channels broadcast almost 600 hours of varied programmes a week covering the full entertainment and information spectrum - popular music shows, drama, variety, and news and public affairs features.

　　　　　　During the year, news and current affairs programmes expanded to almost 10 hours a day, a proportion relayed from the BBC's World Service, but the majority locally produced. Major changes were made to the peak morning time with the introduction of Hong Kong Today in Chinese and Today on the English radio service. Both half- hour programmes introduced local and overseas news, and news-features in a bright, informative style. Daily reviews of the Hong Kong Press and the business scene proved particularly successful.

　　　　　　The popular news magazine, Insight, was re-introduced after a short rest and resumed its in-depth treatment of major local issues. Sports programmes also were expanded and the station continued to provide 'live' coverage of Legislative Council proceedings.

　　　　　　A range of new feature programmes were introduced during 1977, covering con- sumer affairs, motoring, books and the arts. But by far the most popular expansion in both Chinese and English radio was in access programmes. More listeners than ever took the opportunity to phone-in and seek advice, lodge complaints and ask questions on a range of subjects from public housing to pet care.

　　　　　　Community involvement was again a keynote to the broadcasting year. The station's staff took part in sponsored walks, sold recipes, read fortunes, organised a mammoth raffle and, finally, presented its largest ever donation to the Community Chest of Hong Kong.

The FM stereo service, introduced in 1976, was improved by the addition of two low-powered transmitters. Most of the urban area can now receive a perfect signal. During 1977, Commercial Radio's two Chinese channels arranged their program- ming to meet the information and entertainment requirements of as wide a spread of the public as possible. The first service's format was completely changed and now features magazine-style programmes of interviews, music and drama, and talk-back shows. The second service became entirely youth-oriented in April, and its emphasis is on music and personality disc jockey shows.

　　　　　　The English service's programming is built round an extensive play-list reflecting the latest and best in popular music. In association with the Hong Kong Tourist

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Association, it produces a two-hour programme each evening aimed at visitors to Hong Kong. The programme includes a half-hour segment in Japanese by a Japanese radio personality specially brought to Hong Kong by the tourist association.

　　　　　　　The English service also featured outside broadcasts of sporting events throughout the year, with on-the-spot reports from the Wimbledon tennis championships, the British Open golf championships, and the World Cup golf championship in Manila. Local events covered 'live' by the station included the Ready-to-Wear Festival, the Arts Festival and the opening of the Arts Centre.

The channel's popular and sometimes controversial talk-back shows were extended to six mornings a week.

Commercial Radio continued its involvement in community affairs, and staged several successful charity events in conjunction with the Urban Council. It raised more than $300,000 for the Community Chest in sponsored walks, and its annual Songs to Remember concerts raised more than $35,000 for the Ebenezer School and Home for the Blind.

Government Information Services

The Government Information Services (GIS) 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.

A network of information units has been established in key government depart- ments to develop closer relations with both the Press and public. There are now 16 of these units staffed by information grade officers.

The department maintains close relations with the Hong Kong Government Office in London, which it supplies with a daily news round-up by telex and fuller details by airmail.

News Division

The News Division is responsible for channelling to the media all government informa- tion, 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 tele- printer and fascimile networks, which operate daily round the clock, including weekends and on public holidays. As news in English is transmitted over the tele- printer 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.

　　　　　　The News Division also operates an inquiry desk that deals day and night with queries, primarily from journalists, on various aspects of government work. A research unit has been established to produce background information and briefing material on major matters of public interest. This provides a 'bank' of knowledge for use when dealing with the Press. A comprehensive Press and reference library also is maintained and is used daily by many local and overseas journalists and also by school by students.

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During typhoons, severe rainstorms or any other emergency, the division is quickly transformed into a communications centre manned by teams of officers working in shifts to keep the public informed, through the media, of up-to-the-minute develop- ments. Liaison officers also are deployed to key departments directly involved to ensure a comprehensive flow of information.

　　　　　　Another responsibility of the News Division is to produce television newsclips for showing over Hong Kong's five television channels. Two or three newsclips a week are produced in both languages on many aspects of government activity.

Publicity Division

The Publicity Division consists of three sub-divisions: publicity and marketing, crea- tive, and editorial and publications. The various services provided by the division are available to all government departments requiring specialist advice and help on publicity matters.

The Publicity and Marketing Sub-division is responsible for co-ordinating a large number of government campaigns on subjects such as crime prevention, road safety, fire prevention, anti-narcotics and police recruitment. The sub-division also promotes the Clean Hong Kong Campaign sponsored by the Urban Council. Other commit- ments include publicity for the annual Hong Kong Arts Festival and for the Urban Council's Festival of Asian Arts.

　　　　　　The organisation of visits to Britain by cultural groups from Hong Kong has become another major activity for the sub-division. A special troupe, the Hong Kong Silver Jubilee Company, was formed to make a nation-wide tour of Britain to mark the Queen's Silver Jubilee Year. The sub-division also was closely involved with arrangements for Silver Jubilee celebrations in Hong Kong.

　　　　　　The Creative Sub-division provides specialised publicity services covering many fields of visual presentation, including displays, exhibitions, posters, photographs and film material.

　　　　　　　Extensive use of these services is made for promoting government campaigns, in- cluding the production of public message commercials for showing on television. The sub-division also is responsible for devising layouts and cover illustrations for a wide range of government publications.

　　　　　　The Editorial and Publications Sub-division is responsible for producing publica- tions about Hong Kong and selling those printed for sale. A new series of books under the general title, This is Hong Kong, is now being developed. The aim is to dis- seminate information about features of Hong Kong that have not been widely publicised. Five books in this series are in various stages of production; the first to be published is on Chinese temples.

　　　　　　A new government publications centre has been opened to provide the public with modern bookshop facilities. Publications produced by the government also are available through a chain of outlets that include leading book stores, City District Offices and District Offices in the New Territories.

Public Relations Division

The major function of the Public Relations Division is to promote understanding and to improve the relationship between the government and the people. Its responsibility

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is to help explain government policies to the people on the one hand and reflect public opinion to the departments concerned on the other. The division's role is similar to that of the City District Office, but instead of making direct contact with individuals, it concentrates on newspapers, television and radio.

　　　　　　More than 20 Chinese newspapers are examined every day by the division. Major news items and other reports on public affairs are surveyed, translated into English and published in a two-page tabloid newspaper, the GIST, which is circulated to government officials the same day. A weekly review of Chinese Press comment, called Opinion, is prepared in English for circulation to some 200 senior government officers. The division also draws the attention of government departments to letters published in the correspondence columns of newspapers. In addition, special research papers are produced to keep senior levels of the government advised on issues that arouse strong public debate.

The division also produces material for a weekly television programme that reviews editorial comment in the Chinese Press. This is shown on the English networks so that members of the community who do not read Chinese can keep abreast of local opinion expressed through Chinese newspapers.

Hong Kong Chinese living abroad, and Hong Kong seamen serving in various parts of the world are kept informed of events in Hong Kong by a 12-page fortnightly news- paper in Chinese, the Hong Kong News Digest. This is compiled in the division and 33,000 copies of each edition are distributed free overseas.

During the year, an Overseas Public Relations Section was established to help visiting journalists and film teams, and to liaise with journalists overseas.

Departmental Units

Much progress has been made in establishing departmental units to improve the flow of information to the Press and to promote closer relations with the public.

There are now units functioning in 15 departments - Agriculture and Fisheries, Civil Aviation, Trade, Industry and Customs, Education, Fire Services, Housing, Labour, Medical and Health, New Territories Administration, Police, Prisons, Public Works, Social Welfare, Transport, and Urban Services. There also is a unit to service the various branches of the Government Secretariat, and an officer in the Security Branch to co-ordinate Press and publicity activities for anti-narcotics work. An information officer also has been added to the staff of the UMELCO Office.

Some of these units have been, or are being, expanded in the larger departments where a fuller range of Press and publicity services is required to develop work in the information field. The emphasis of work depends on the different type of service the department provides. Generally, it includes answering Press inquiries, issuing Press releases, arranging Press interviews, co-ordinating publicity activities, providing public relations courses for departmental staff and preparing specialised publications. The units also contribute to the publicity effort overseas by preparing feature articles on subjects of international interest.

The centralised resources of GIS are available at all times to departmental units, which receive help in arranging Press facilities, publicity campaigns, exhibitions and displays, and production of publications and films.

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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 that 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 releases sent by mail; and through personal contact with journalists. The London Office depends heavily on news and other information supplied by GIS. Inquiries from the media are answered by the London Office information staff, although queries are occasionally referred to Hong Kong by the direct telex link with GIS.

　　　　　　　In 1977, the Information Section of the London Office was responsible for planning the United Kingdom tour of the Hong Kong Silver Jubilee Company, which was designed to associate Hong Kong with the Queen's Silver Jubilee celebrations. The company consisted of the Hong Kong Schools Chinese Dance Team, a choir known as the Hong Kong Silver Jubilee Singers, and the Hong Kong Chinese Music Orchestra.

Film Industry

Hong Kong continued to be among the world's major film-producing countries in terms of the number of films produced annually. A considerable number of films in Mandarin intended for use locally and in other parts of Asia were made in 1977 but, because of shrinking markets, there were fewer of these than in previous years.

However, the number of films produced locally with international actors and in- tended for markets in the West increased. This aspect of the local film industry is expected to expand if Hong Kong can continue to provide finance and its efficient and relatively inexpensive film production facilities.

Among the Chinese-language films, a notable feature was the resurgence of interest in the production of Kung Fu films after a two-year fall-off.

As in previous years, the number of cinemas again declined. At the end of 1977, 75 cinemas were operating, compared with 83 the previous year. Cinema attendances, however, continued to be high and totalled 60 million. The three top-grossing films of 1977 were The Private Eyes, The Spy Who Loved Me and The Pilferer's Progress, with box office receipts of $8.5 million, $5.3 million and $5.1 million respectively.

All films intended for public exhibition in Hong Kong must be submitted to a panel of film censors. Censorship standards are drawn from ascertained community views. During the year, 92 members of the public joined a public advisory group to help the Film Censorship Authority reflect community views on the levels of acceptability in film entertainment.

The Armed Services

and Auxiliary Services

和三

輔軍隊助

THE British Army, Navy and Air Force are all represented in Hong Kong under the overall command of the Commander British Forces.

　　　　　　　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 help the government maintain security and stability, and to sustain confidence in the United Kingdom's intention to maintain its position.

　　　　　　The size and composition of the garrison, and the contribution Hong Kong makes towards the cost of maintaining it, is determined by an agreement between the Hong Kong and United Kingdom Governments known as the Defence Costs Agreement.

　　　　　　　The current agreement came into effect on April 1, 1976, and will run for seven years; under its terms, the garrison comprises 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. The United Kingdom has undertaken to reinforce these forces should the circum- stances so dictate.

As a result of the agreement, the Royal Air Force will relinquish its station at Kai Tak and move to Sek Kong where new facilities, due for completion by March 31, 1978, are under construction and Headquarters British Forces will release Victoria Barracks by March 31, 1979, and move into a new tower block at HMS Tamar.

The five Royal Navy patrol craft comprising the Hong Kong Squadron come under the operational control of the Captain-in-Charge, Hong Kong, who also commands the naval base, HMS Tamar. The Hong Kong Squadron acts in support of the govern- ment within the territory's coastal waters, liaising closely with the marine division. of the Royal Hong Kong Police and other appropriate departments. It also has a responsibility for search and rescue in the South China Sea and has recently been involved in the salvage of two merchant ships and rescued the crew of a third.

　　　　　　The Royal Navy employs 265 locally-entered Chinese ratings in various capacities. They include cooks, stewards, technicians and seamen, some of whom help to man ships in the squadron. A further 700 locally-recruited merchant seamen and store- housemen serve worldwide in 11 ships of the Royal Fleet Auxiliary Service, providing logistic support for ships of Her Majesty's Fleet. Laundering, tailoring, shoemaking and hairdressing facilities are provided for the fleet by 258 Hong Kong Chinese sea- going civilians. Within HMS Tamar, a work-force of 60 civilians is employed mainly on clerical, storekeeping, transport and labour tasks.

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In keeping with long-standing tradition, the Royal Navy provides much help to villagers in rural areas, particularly on the Sai Kung and Tolo Peninsulas and nearby islands. This has included assistance in refurbishing generators and electric cables to restore power and light in Yim Tin Tsai and Leung Sham Wan. In recognition of its efforts, the Hong Kong Squadron was awarded the Wilkinson Sword of Peace in July, 1977. Other tasks have included the renovation of rain shelters, underwater inspec- tions and beach cleaning. Social and welfare activities have included medical and dental assistance, sea training days for boys from the Hong Kong Sea School, and helping the St John Ambulance Brigade and the Red Cross with medical and dental treatment.

　　　　　　The Army provides the bulk of the forces in Hong Kong, under the direct command of the Commander British Forces. Operational units are concentrated into one forma- tion - the Gurkha Field Force - and logistic units are grouped as support troops under the command of the Deputy Commander British Forces.

Units stationed in Hong Kong during 1977 were: 1st Battalion the Light Infantry; 1st Battalion of the 2nd King Edward VII's Own Gurkha Rifles; 2nd Battalion of the 2nd King Edward VII's 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 the outlying islands, the Army, in conjunction with the police, has been closely associated with government efforts to prevent illegal immigration. Patrols are carried out regularly in the more inaccessible areas of the New Territories and outlying islands. Apart from its military activities, the Army also has provided support in the form of emergency fire-fighting units for hill and forest fires, and support and assistance in anti-drought measures.

Community relations projects undertaken by Army units included two three-week youth leadership camps based at Erskine Camp on the Sai Kung Peninsula 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.

　　　　　　No. 28 Squadron, based at RAF 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 help with local civil engineering projects by lifting into position heavy items of equipment that would be difficult to handle by other means.

　　　　　　　On March 31, 1978, after more than 50 years at Kai Tak, the Royal Air Force will hand over the station to the Hong Kong Government and move to its new base at Sek Kong. RAF aircraft of No. 28 Squadron operated regularly from Sek Kong in the 1950s and 1960s; thus the squadron is now returning to its former base, although the roles of the present-day Wessex are, of course, very different from those of the earlier De Havilland Vampires, Venoms and Hawker Hunters. RAF Sek Kong will be co-located with the headquarters and main depot of the Gurkha Field Force, where it will be in an ideal position to operate in its primary role with the Army.

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　　　　　　During the past year, the sports ground and other facilities at RAF Kai Tak were made available regularly to the community for such events as youth camps, school visits, an international Air Cadet exchange camp and Junior Police Call activities.

　　　　　　　The year 1977 has not been easy for the Services. As the closure of RAF Kai Tak and Victoria Barracks comes closer, planning for these two major moves is becoming more detailed and consuming more staff effort. The ramifications are spreading well beyond those directly involved as transport, housing and social welfare implications become clearer. Moreover, the forces are still adjusting to their lower force levels, which inevitably require a thorough re-examination of commitments. However, 1977 has been a productive year, and efficiency and operational readiness have been sustained at a high level.

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 Auxiliary Air Force. Both are administered by the Hong Kong Government, but would come under the Commander British Forces and the appropriate Service commanders if called out.

　　　　　　The Royal Hong Kong Regiment is a light reconnaissance regiment that operates in support of the British Armed Forces in Hong Kong in both internal security and reconnaissance roles. It numbers about 600 volunteers. The regiment consists of four reconnaissance squadrons, a headquarters squadron and a home guard squadron. There also is a junior leaders' squadron of 135 boys aged between 14 and 17 who are trained in youth activities and leadership. On average, volunteers train for two even- ings and one weekend a month, with a 15-day annual camp. When possible, volunteers are attached to regular battalions of the British Forces for overseas training.

　　　　　　The regiment helps government departments during natural disasters and provides other assistance to the community by actively supporting many organisations and charities.

　　　　　　The Royal Hong Kong Auxiliary Air Force is the only remaining operational auxiliary air force squadron in the Commonwealth. It is based near the civil airport and has an establishment of 111 volunteers and 54 permanent staff. It operates a twin-engined Britten Norman Islander, a Beechcraft Musketeer light aircraft and three Alouette Mark III helicopters. Two Bulldog training aircraft were added to the fleet during 1977, making a total of seven aircraft.

　　　　　　The unit works seven days a week and can operate round the clock in an emergency. Its main role is internal security. The unit also operates as a communication squadron by carrying out medical evacuation flights, search and rescue operations, aerial surveys, a flying doctor service, surveillance flights to hinder illegal activities, training air traffic controllers of the Civil Aviation Department to private pilot standard, and flying government officers to outlying areas. More than 150 casualties were carried to Queen Elizabeth Hospital for treatment during the year.

Civil Aid Services

The Civil Aid Services, a uniformed, disciplined volunteer service, was formed in January, 1952, essentially for civil defence work. Over the years, its role has changed,

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however, and the main operational tasks now performed, by adult volunteers, are in support of the Fire Services, Social Welfare, Agriculture and Fisheries and Marine Departments and the Royal Hong Kong Police. These tasks include: forest fire- fighting; tropical cyclone duty; heavy and light rescue from confined spaces and in landslips; registration, feeding and providing relief for victims of natural disasters; anti-oil pollution duties; search and rescue of persons lost and injured in mountainous regions; evacuating people from threatened or dangerous buildings; clearing blocked roads; providing emergency communications and a despatch rider service; and anti- crime patrolling in remote recreational areas. The Civil Aid Services also provides assistance in government campaigns, civil charity drives and in crowd control duties at sporting and civic functions.

The adult establishment of the Civil Aid Services, comprising volunteers from most walks of life, was increased from 2,300 in 1976 to 2,750 in 1977 to permit greater flexibility in the mobilisation of manpower and to undertake new operational and civic tasks. Volunteers undergo six months' initial basic training in discipline, first aid and rescue duties. After transfer to an operational unit, they are prepared to perform arduous and often difficult tasks at any time and in any weather. In 1977, a strike force of 300 volunteers was formed so that members can be called upon from their normal place of duty at very short notice to undertake any urgent emergency rescue task. Members of the specialised mountain rescue unit also are always on one-hour standby in case of emergency.

The junior wing of the Civil Aid Services, the Cadet Corps made up of youths aged between 14 and 18, was increased from 2,020 to 2,222 during 1977. Two new units were formed in the developing towns of Tuen Mun and Yuen Long in the New Territories. Recruits are mostly from low-cost housing estates and other heavily- populated urban areas. They are posted to a cadet unit in the area in which they live. 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. Cadets are taught basic skills similar to those conducted in the adult service, as well as forestry conservation, rural area patrolling, mountain craft, life-saving, camping and trekking. The more advanced cadets learn fibreglassing, canoe-making, mechanical engineering and welding. A cadet retires from the Cadet Corps at the age of 18. But he then has the opportunity of volunteering to join either the adult service or any other government disciplined service.

　　　　　　　A 20-hectare camp for land-based activities involving both cadets and adults was opened by the Governor in April, 1977. The camp, situated on a plateau 230 metres above Tsing Lung Tau on Castle Peak Road, has basic facilities, including a camp centre, swimming pool, basketball court and an old, abandoned village that is being renovated, partly by the cadets themselves. A three-hectare site, granted for a second camp for water-based activities, is under planning at Tai Tan on the Sai Kung Peninsula.

Auxiliary Medical Service

The Auxiliary Medical Service, which celebrated its 27th anniversary in December, 1977, maintains a membership of more than 5,500 volunteers, many of whom are young men and women aged between 18 and 28. Members comprise doctors, nurses,

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dispensers, radiographers and others in the para-medical profession, but the majority of members are laymen. With the exception of doctors and nurses, each member is required to pass a basic first-aid training course. Further training is given in nursing, casualty handling, ambulance manning and life-saving.

　　　　　　In its operational role, the Auxiliary Medical Service may be mobilised in an emergency to augment medical and health services and to reinforce the regular ambulance service. In minor emergencies, it provides trained staff to treat the injured on the spot, to take casualties to hospitals and to care for patients in hospitals. Throughout the year, members help regularly in some of the major hospitals and assist Urban Services Department life guards on duty at public beaches and swimming pools. Since 1976, 17 methadone detoxification centres have been staffed and controlled by Auxiliary Medical Service volunteers. Other members also assist at four major methadone maintenance day centres conducted by the Medical and Health Department. As part of its non-operational role, the Auxiliary Medical Service pro- vides first aid parties and mans sick-bays at civic and other large functions. The permanent staff of the Auxiliary Medical Service undertake the training of government officers in first-aid.

Nes

Religion and Custom

OF the seven major religions practised in Hong Kong, Buddhism and Taoism have by far the greatest numbers of followers. They worship on any day of the week in more than 600 temples. Some of these are ancient and contain invaluable antiques; others are magnificent new temples built along traditional Chinese architectural lines.

　　　　　　　Hong Kong also has almost 600 Christian churches and chapels, four Muslim mosques, a Hindu temple, a Jewish synagogue and places of worship for a variety of other religions.

Buddhism and Taoism

　　　　　　Among the Buddhist and Taoist believers, almost every household has its ancestral 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 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 on holidays. Sightseers and devotees also are attracted to Ching Shan Tsz and Tsing 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, Buddhist Ching She (Places for Spiritual Cultivation), Fat Tong (Buddha Halls) and To Yuen (Places for Taoist Worship) have been established in residential flats to cater for the spiritual needs of city dwellers. Various Buddhist in- stitutions hold gatherings where the sutras are expounded. The Man Mo Temple, dedicated to the Gods of Literary Attainment and Martial Valour, is situated in a densely-populated area in Hollywood Road. It is run by the Tung Wah Group of Hospitals, one of the largest and oldest of local charitable organisations, and is extremely popular.

　　　　　　Almost all monasteries and temples are open to the public. The temples are crowded at festivals and on the first and 15th days of the lunar month. Although each temple is normally dedicated to one major deity and occasionally two it is usual to find the images of many deities in most temples.

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Since Hong Kong has always depended on the sea for fishing and for trade, the most popular deities are those connected with the sea and the weather. Tin Hau, the Queen of Heaven and Protector of Seafarers, is said to be worshipped by 250,000 people. There are at least 24 Tin Hau temples in Hong Kong, the most famous of which is located at Fat Tong Mun in Joss House Bay. Because of land reclamation, many of the Tin Hau temples originally established by the sea are now some distance inland. Other leading deities include Kwun Yum, the Buddhist Goddess of Mercy; Kwai Tai, the 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 built in his honour, around which a public housing estate has been constructed, is of Chinese traditional style - as are several other new temples.

Taoist and Buddhist organisations help to meet welfare, educational and medical needs in Hong Kong 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 venerated. 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 placed at the foot of certain rocks and trees within which spirits are believed to dwell. It is especially common among Hakka villagers.

　　　　　　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 the spring, ancestral graves are visited. In early summer, the Dragon Boat Festival is celebrated with dragon boat races and by eating rice cooked 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 also are visited on this day.

Christian Community

The total Christian community - Protestant and Roman Catholic is estimated at about 10 per cent of the population. Of these 450,000, the Roman Catholic Church makes up more than half while the remainder are Protestants.

Protestant

The year 1977 was one of anniversaries for the Protestant community. Highlighting these were the 90th anniversary celebrations of the Alice Ho Miu Ling Nethersole Hospital and the Chinese Christian Literature Council. Nethersole Hospital was the first hospital in Hong Kong using western methods of medicine to open to the public. The hospital group started the first medical training (among whose first students was Dr Sun Yat-sen), began the first nurses' training and started the first training in mid- wifery. Nethersole was founded by the London Missionary Society. In 1923, it came

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under its own direction and is now related to the Hong Kong Christian Council. The Chinese Christian Literature Council is the successor to the Christian Literature Society of Shanghai, the oldest full-scale publishing house in China. One of the events marking the council's 90th anniversary was the publication of the revised Hymns of Universal Praise, first published in 1936 and the first union hymnal used across de- nominational lines.

　　　　　　　The Protestant community is made up of almost 50 denominations and sects. There are the familiar major denominations, such as Adventists, Anglican (Episcopal), Alliance, Baptist, Lutheran, Methodist, Salvation Army and Pentecostal. The Church of Christ in China represents the Presbyterian and Congregational traditions. In addition, there are many independent groups.

　　　　　　These churches are responsible for more than 250 primary schools and about 130 middle schools, and two post-secondary colleges. The training of ministers and leaders for the churches is carried out by several seminaries and Bible schools. The year 1977 saw the inauguration of the united Lutheran Theological Seminary, which succeeded the former seminaries of the Evangelical Lutheran Church of Hong Kong and the Tsung Tsin Mission.

　　　　　　　The Christian churches sponsor a wide variety of service programmes. These include clinics, homes for the aged, vocational training centres, family service centres, aid for the handicapped, hospitals and community health programmes.

　　　　　　　The Hong Kong Chinese Christian Churches Union is one of the two major co- operative Christian organisations. Organised on lines of congregational membership, it has a total of 200 members. Its departments are evangelism, charity, cemeteries, christian education, publicity and information. A campaign for the building of a second home for the elderly raised $3 million.

　　　　　　　The Hong Kong Christian Council is the other inter-denominational association. The major denominations, together with such organisations as the YWCA, the YMCA, the Bible Society and the Chinese Christian Literature Council, work together in the council. It promotes ecumenical concerns in Christian service, industrial mission, Christian education and communications. The year marked the third year of a systematic campaign among the churches to spotlight world hunger. As a result, the churches and community have contributed more than $500,000 to freedom from hunger groups.

There is a good spirit of ecumenism in Hong Kong. Almost every major committee of the Christian Council has official voting representatives from the Roman Catholic Diocese. Similarly, members of the council are invited to serve as voting members on various Roman Catholic diocesan committees. Throughout the year, Protestants and Roman Catholics carry out joint programmes, such as the religious broadcasts aired by Radio Television Hong Kong.

Roman Catholic

　　　　　　Pope Gregory XVI established the Apostolic Prefecture of Hong Kong in April, 1841. 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 training Chinese priests and persuaded religious sisters to come to Hong Kong to start schools, hospitals, creches and other welfare work.

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　　　　　　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-peng Hsu as the first Chinese Bishop of the Roman Catholic Diocese of Hong Kong.

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 the following year, aged 51. The third Chinese Bishop of Hong Kong, Bishop John Baptist Cheng-chung Wu, was conse- crated and installed by Cardinal Angelo Rossi in the Hong Kong Catholic Cathedral on July 25, 1975.

In addition to its pastoral and apostolic work, the Church engages in a wide variety of work in education, health care and social welfare. There are now 310 Catholic schools, with more than 274,000 students. Vocational education is being developed.

　　　　　　Catholic social and health services include eight social centres emphasising voca- tional and adult education, six hospitals, 13 hostels for students and workers, a maternity home, 20 general clinics, six dental clinics, two mobile clinics, 17 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 338 priests (129 Chinese and 209 of 15 other nationalities), 83 Brothers (33 Chinese and 50 of other nationalities) and 770 Sisters (453 Chinese and 318 of other nationalities). There are 54 parishes with resident priests. Services in almost all churches and chapels are conducted in Chinese, with a few providing some services in English. In one church on Hong Kong Island, all services are in English.

Muslim Community

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 Wong Nai Chung Road Mosque will have to be demolished by December, 1978, to make way for the Aberdeen tunnel project. However, the government has made available a site in Oi Kwan Road for a new mosque.

　　　　　　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, where another mosque is located.

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 represen- tatives of the various sects within the Muslim community, is responsible for the

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management and maintenance of mosques and cemeteries. The trustees also are re- sponsible for organising the celebration of Muslim festivals and other religious events. Charitable 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.

Other Religious Communities

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 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 also are 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 also is used for meditation periods, yoga classes and teaching Hindi to the Indian community. Namings, engagements and marriages are performed at the temple according to Hindu customs. Religious music and recitals are performed every Sunday morning and Monday evening.

The Sikhs, numbering more than 2,000, are perhaps one of Hong Kong's most colourful minorities. Sporting stylised turbans and unshorn hair, they first came to Hong Kong in the early days as members of the British Armed Forces. Before World War II, a large segment of the Royal Hong Kong Police comprised Sikhs. Today members of the community are engaged in a variety of occupations.

The centre of their religious and cultural activities is the Sikh Temple in Wan Chai. A unique feature of the temple is that it provides free meals and short-term accom- modation to overseas visitors of any faith. The main holy days and festivals observed are the birthdays of Guru Nanak (founder of the faith), Guru Gobind Singh (the 10th and last Guru) and Baisakhi (the birthday of all Sikhs). During these celebra- tions, all those attending take part in community feasts prepared and served by mem- bers of the congregation.

Hong Kong's Jewish community worships on Friday evenings, Saturday mornings and Jewish holidays 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 site includes a rabbi's residence as well as a recreation club for the 500 people in the congregation. These families originate from various parts of the world.

Recreation and the Arts

THE year 1977 was one of achievement in the arts for Hong Kong. The $30 million Arts Centre opened its doors, the Hong Kong Chinese Music Orchestra and Hong Kong Repertory Theatre became professional and the Hong Kong Arts Festival and the Second Festival of Asian Arts drew record audiences.

The rapid development of Hong Kong's cultural scene in the 1970s has occurred in parallel with the development of recreational facilities and programmes, which are dealt with in detail in Chapter One. Apart from the events mentioned above, 1977 also saw the expansion of music education and cultural activities in schools, visits to Hong Kong by a wide range of overseas artists and a continuing interest in all forms of art by all age groups.

Arts Centre

The official opening of the Hong Kong Arts Centre by the Governor on October 14 marked the fulfilment of many years' planning and fund-raising, and the beginning of a new chapter in Hong Kong's cultural history. The Arts Centre contains three auditoria the Shouson Theatre for drama, lyric theatre, music and films; a recital hall for music and films; and a studio theatre for small-scale drama, experimental drama and workshops. The centre also accommodates the Pao Siu Loong Galleries, where exhibitions are displayed on two inter-connecting floors, one of which is adjoined by an outdoor sculpture terrace.

All of these areas were used extensively during the four weeks of celebrations that followed the official opening. An international exhibition included paintings con- tributed by 12 countries on four continents, with an especially fine contribution of impressionist paintings from France. The exhibition also featured paintings and sculptures by more than 80 leading Hong Kong artists. More than 150 events were held in the three auditoria during the opening celebrations. These included Chinese opera, Western and Asian music, Cantonese and English drama, films and lectures, Indian and contemporary dance, traditional arts and modern musical compositions. The juxtaposition of many cultural traditions - from Hong Kong, Australia, Japan, England, India and many other nations and the presence of amateur performers, along with such world famous names as the Amadeus Quartet, gave an indication of the way in which the Arts Centre would stimulate cultural development in the future. The galleries and auditoria cater for the arts in their finished form, but the Arts Centre also aims to encourage practice, study and teaching. Facilities include an artists' studio, music practice rooms, a record listening library, a crafts workshop and a picture-lending library. The 19-storey building also houses a number of other

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cultural and educational organisations, each providing courses of instruction and arts facilities. It also has European and Chinese restaurants and, on the top floor, a members' club equipped with its own lounge, library and bar.

　　　　　　The Arts Centre is an independent enterprise. It is not subsidised from public funds, although the government provided the site and guaranteed final building costs. The opening of the centre has been made possible largely through the donations of individuals and companies in Hong Kong - and this support is continuing.

　　　　　　The provision of such an important cultural facility without subsidies is a considerable achievement and one of which Hong Kong feels particularly proud.

City Hall

Hong Kong's foremost - and oldest - cultural centre is the City Hall which, unlike similar centres overseas, is almost entirely devoted to the arts. The cultural life of Hong Kong has centred around the City Hall since it opened in 1962. The two build- ings that make up the City Hall - the High and Low Blocks -- are administered by the Urban Council.

　　　　　　　Located in the City Hall are a 1,500-seat concert hall that can be quickly converted for opera and drama productions; an intimate 470-seat theatre that doubles as a cinema; two exhibition halls; lecture rooms; conference and class space; two restau- rants; two bars; the Hong Kong Museum of Art and libraries. With the ever- increasing interest in cultural activities in Hong Kong, a new recital hall has been added to the existing facilities and, since the inaugural concert in the hall in 1976, many events have been staged there.

　　　　　　In 1977, 74 overseas performers, some of whom appeared with the assistance of various consulates and national cultural organisations - including the Goethe Institute, the Alliance Francaise and the Dante Alighieri Society - appeared at the City Hall. Among them were the Sydney String Quartet; the Barrel-house Jazzband of Frankfurt; the Music Group of London; pianists Rafael Orozco and Michel Beroff; the Seoul Philharmonic Orchestra; the Alvin Ailey American Dance Theatre; the Viennese Operetta Festival; the Italian Film Festival; the Theatre of Silence Dance Company from France; the Dublin Theatre Festival Company; guitarist Jean-Pierre Jumez and flautist Karl-Bernard Sebon.

　　　　　　　The Urban Council takes an active interest in promoting local artistic talent. Local performers appear regularly at the City Hall and the demand for the facilities there is heavy. During the year, the Urban Council promoted local artists in 47 concerts of Chinese and Western music and in 59 productions of opera, drama and dance. The Hong Kong Philharmonic, in its fourth professional season, performed 24 different programmes in 46 concerts.

In addition to Urban Council presentations, local music groups and soloists gave 216 concerts at the City Hall. Chinese and English drama groups, both amateur and professional, presented 158 performances.

Two major ventures by the Urban Council in 1977 were decisions to set up the Hong Kong Chinese Music Orchestra and the Hong Kong Repertory Company on a professional basis. The orchestra made its debut at the Urban Council's Second Festival of Asian Arts and since then has given a number of concerts. The aim is to develop Chinese music using traditional instruments.

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　　　　　　The Hong Kong Repertory Company produces traditional and modern drama in Cantonese. During the Festival of Asian Arts, the company presented two modern Chinese plays, Wu Kwei Bridge and Fragrant Rice.

　　　　　　In an effort to promote interest in the cinema, the Urban Council presented the First International Film Festival of Hong Kong during 1977. More than 40 films from 14 countries were shown alongside local films at the City Hall Theatre in an attempt to put Hong Kong on the international film festival map.

　　　　　　The Urban Council also places great importance on its extensive programme of free, open-air entertainment. In 1977, 757 of these performances were provided at locations throughout Hong Kong and Kowloon. On the programme were operas, puppets, singers, dramas, comedies, acrobatics and martial arts. More than 600,000 people attended these performances during the year.

Festival of Asian Arts

Performers from nine Asian nations travelled to Hong Kong in 1977 to take part in the Urban Council's Second Festival of Asian Arts. They came from India, Indonesia, Japan, Korea, Malaysia, Nepal, the Philippines, Sri Lanka and Thailand. Hong Kong was well represented with groups performing Cantonese and Peking opera, Cantonese drama, Chinese folk dance, choral singing and puppet shows. The Hong Kong Philharmonic presented a special programme of works by Asian composers and the Chinese Music Orchestra made its debut. In addition, there were no less than five exhibitions featuring Japanese Ukiyo-e woodblock prints, Hong Kong contemporary art, Chinese snuff bottles, Shek Wan pottery and Malaysian textiles.

Hong Kong Arts Festival

The Hong Kong Arts Festival has now become a major event, not only on the Asian cultural calendar, but throughout the world, where it now ranks among the leading festivals of its kind.

　　　　　　Since the first festival in 1973, the unique blend of Western and Eastern art has stimulated and entertained local audiences and overseas visitors alike.

The 1977 festival was opened by Princess Alexandra. Among those performing were the Radio Symphony Orchestra of Berlin, the Hong Kong Philharmonic Orchestra, the Hong Kong Chinese Music Orchestra, the BBC Scottish Symphony Orchestra, jazz violinist Stephane Grappelli, pianist Tamas Vasary, dancers Manolita and Rafael Aguilar, mime artiste Bernard Rolli, the Thorndike Theatre and Victoria de los Angeles.

　　　　　　Preparations also are now under way for the 1978 festival. Among those invited to take part are the Bournemouth Symphony Orchestra, the Lucerne Festival Strings, pianist Peter Frankl, the Ballet Folklorico de Mexico, Dionne Warwick, the Com- pagnie Philippe Genty, Hinge and Bracket, and the Charlie Byrd Trio.

Tsim Sha Tsui Cultural Complex

The Tsim Sha Tsui Cultural Complex is an ambitious project of the Urban Council and the government to further improve facilities for the arts in Hong Kong. It will comprise one large and one small auditorium, a museum, an art gallery, a library, a res- taurant, an open-air theatre, a garden and a space museum, including a planetarium.

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　　　　　　The small auditorium, with a seating capacity of 1,500 people, has been designed to suit the staging of opera, ballet, drama and chamber music, recitals, and film and variety shows. A special feature will be a multi-purpose stage and orchestra pit that can be raised to form part of a protruding stage suited for theatrical presentations. The large auditorium will seat 2,500 people and its main function will be to hold orchestral and operatic performances, using the hall's natural acoustics to full advantage.

　　　　　　The administration building will provide the Cultural Services Division of the Urban Services Department with its headquarters and will house an arts library of 925 square metres. Both the Museum of Art and the Museum of History will be housed in the new museum building and the entire complex will be fully operational by 1983.

Hong Kong Museum of Art

At present, the Hong Kong Museum of Art is located on the top three floors of the City Hall High Block. It collects and exhibits contemporary and historical works.

　　　　　　　Some 18 exhibitions of Chinese and Western art from Hong Kong and overseas were staged in 1977. The overseas exhibitions included 'International Children's Art', 'Austria Presents Hundertwasser' and 'Contemporary German Art'. Some displays in the exhibitions of Ukiyo-e woodblock prints and of Shek Wan pottery came from overseas. In October, four art exhibitions were presented simultaneously by the museum in conjunction with the Second Festival of Asian Arts. During the year, 254,574 people visited exhibitions - an average of 697 a day.

　　　　　　　In an extension of the museum's activities, small travelling exhibitions have been set up and these are loaned, without charge, to schools, libraries and cultural institu- tions. During the year, the Urban Council presented 12 art awards to prominent local artists.

　　　　　　　Some significant acquisitions were made by the museum in 1977. These included a saucer-shaped green dragon dish of the Cheng Te period (1506 to 1521); a Ting-yao dish of the Sung Dynasty (960 to 1279) featuring a moulded design of two fish in a lotus pond; 206 embroidered buttons, buckles, perfume lockets and hair pins; a rare Wu-tsai fish bowl of the Wan-li period (1573 to 1620); a large blue and white vase and an unusual Tou-tsai-type bowl of the Ch'en Lung period (1736 to 1795); and two pink ground bowls of the Tao Kuan period (1821 to 1850).

Six illustrated exhibition catalogues on monochrome ceramics, fan paintings, contemporary Hong Kong art, Ukiyo-e, Shek Wan pottery and snuff bottles were produced. These have been added to the libraries of many museums and universities around the world. The catalogues on monochrome ceramics and Shek Wan pottery were produced in colour.

Hong Kong Museum of History

Staff of the Museum of History, in Star House, Kowloon, were active throughout 1977 collecting and documenting material for the ethnographic and local history collections.

　　　　　　　In April and May, a three-week archaeological investigation at a site near the village of Sha Tsui, High Island, resulted in important new discoveries.

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　　　　　　Major progress has been made in studying, documenting and preserving archaeo- logical and historical remains in Hong Kong following the establishment of an Anti- quities and Monuments Section under an executive secretary.

The work of the section arises from the 1976 Antiquities and Monuments Ordinance, and involves such matters as processing licences to excavate and search for antiquities and the protection of monuments.

　　　　　　　Since the ordinance came into effect, the section has been documenting historical buildings and sites, and recording antiquities. An architectural and historical survey of the Sai Kung district was successfully completed with the help of staff and students of the University of Hong Kong. The survey will be the subject of a special report.

　　　　　　Several important additions to the museum's collections were made during the year. Some 34 new items were added to the collection of traditional Chinese musical in- struments and four detailed models of 19th century merchant vessels that played a role in Hong Kong's maritime history were commissioned.

　　　　　　A major project to record Hong Kong's prehistoric rock carvings with rubber latex moulds was successfully completed and a set of polyester resin casts produced. The replicas were the focus of a special exhibition. The problem of preserving the rock carvings themselves was examined by an expert advisory group. It is hoped that its recommendations will be carried out soon.

　　　　　　During the Festival of Asian Arts, the museum organised a special exhibition of Malaysian traditional resist-dyed textiles drawn from the collections of the National Museum in Kuala Lumpur, the Sarawak Museum and the Kuching and Sabah Museum in Kota Kinabalu. The exhibition was supported by demonstrations of ikat weaving and batek making by Malaysian craftsmen.

During the year, five exhibitions were held and attendance figures were high. The museum was visited by 317,327 people a daily average of 1,090.

　　　　　　　Unexpected conservation problems encountered during the renovation of the Han Tomb at the Lei Cheng Uk Branch Museum were remedied by the installation of a specially-designed air-conditioner and dehumidifier. It was not possible to re-open the museum during 1977 because of the priority given to preserving the tomb.

Hong Kong Philharmonic Orchestra

The Hong Kong Philharmonic Orchestra has gone from strength to strength since it took on professional status under the auspices of the Urban Council in 1973. The 1977-8 season of the orchestra offered 88 concerts, including regular City Hall con- certs, special shows and performances in the New Territories - a new development aimed at taking music to the people.

　　　　　　The orchestra receives a great deal of support from the young people of Hong Kong, with 75 to 80 per cent of each audience having an average age of 25.

　　　　　　The orchestra has almost 70 full-time players. The future looks very promising and members hope eventually to tour other countries and to see the establishment of a music conservatory in Hong Kong.

　　　　　　Almost half the budget for the 1977-8 season was provided by the Urban Council and further support came from personal, corporate and government subventions. With arts programmes in many countries coming under economic pressure, Hong Kong is proud of its ability to fully support its own professional orchestra.

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　　　　　Government efforts to promote the arts have concentrated on schools with the em- phasis on musical development and training, music being the area where interest is highest and where potential is greatest.

　　　　　　The schools Music and Speech Festivals, which attract some 50,000 participants, have been particularly successful.

In late 1976, a review was made of how best to encourage the musical talent that clearly exists among Hong Kong youth.

　　　　　　　The review recommended the establishment of a government instrumental training scheme designed to provide further training for young musicians; lead to the setting up of one or more youth orchestras; and provide instrumental training for selected primary school children.

　　　　　　　To plan for the implementation of these proposals, an Instrumental Music Unit was established within the Education Department during 1977 and a music consultant appointed.

　　　　　　The Royal Hong Kong Jockey Club has pledged more than $10 million to set up a trust fund for music. This will greatly help develop a greater appreciation of music among young people and help to further their training.

　　　　　　　The Hong Kong Conservatory of Music is at present a voluntary organisation, but a grant of $430,000 has been made to enable the conservatory to set itself up in the Arts Centre, where it will be able to develop to the full.

Other Art Forms

A wide range of other art forms flourish in Hong Kong. These include Cantonese, Peking and Chiu Chow operas; Soochow story-telling; Fukienese glove puppets; Cantonese stick puppets; choral and instrumental music; modern and classical dance; calligraphy; photography and film; poetry; and amateur dramatics.

Libraries

The year 1977 was particularly noteworthy for the number of new libraries established. In the urban areas, the Urban Council established static libraries in the Western district of Hong Kong Island and in Sham Shui Po, Kowloon, and a mobile library service for the Eastern district of Hong Kong Island. In addition, the council estab- lished two music listening libraries at its Yau Ma Tei and Kwun Tong libraries, and extended the Kowloon mobile library service to other districts of Kowloon without a public library service. In the New Territories, the Urban Services Department established new libraries at Tai Po, Sha Tin, Sheung Shui and Tuen Mun, as well as a 'book box service' on the island of Cheung Chau.

During the year, 87,870 new books were acquired, bringing the total book stock to 758,571. The libraries also stock 3,297 reels of microfilm, 6,245 gramophone records and cassette tapes, and subscribe to 600 newspapers and periodicals. A total of 3,430 new publications were registered under the Books Registration Ordinance.

Some 55,623 people registered as library members in 1977, bringing the total mem- bership to 666,331. The lending libraries issued 3,128,511 books, while a further 402,602 books were consulted in the reference libraries and 2,338,822 were read in the libraries.

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The regular programme of extension activities was further expanded during 1977 to provide a book report competition for children, lectures on popular science, Chinese classics for adults and two major competitions. Some 23,458 people attended or took part in these activities.

Plans are well advanced for new libraries at Mei Foo Sun Chuen in Kowloon, Chai Wan on Hong Kong Island and Kwai Chung in the New Territories. These libraries, together with a video cassette library at the Yau Ma Tei library, are expected to come into operation in 1978.

The British Council

Valuable contributions to the educational and cultural activities of Hong Kong were made by the British Council during 1977. 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. The council also continued to arrange for specialists from Britain to visit Hong Kong for consultation with govern- ment departments, the universities and with local experts in their fields.

Two British Council scholarships were awarded for training overseas in the teaching of English. Acting for the Sino-British Fellowship Trust, the council arranged four scholarships for post-graduate studies in Britain. The council also completed placing and travel arrangements for 12 British Commonwealth fellows and scholars from Hong Kong going to Britain.

　　　　　　　The council continued to give advice and information to students leaving for further studies in Britain. There was close co-operation with Hong Kong's Education Depart- ment, and a large number of students were met by British Council officers and helped with accommodation on their arrival in London.

The British Council also continued to run English-language courses for teachers of English and students who wished to take part in the first and proficiency certificate examinations of the Cambridge Local Examination Syndicate. Some 4,000 students attended these courses during the year. In April, a new centre was opened in the Easey Commercial Building in Wan Chai. The main administration office was trans- ferred to the Hong Kong Centre, while the library and a sub-office remained in Star House, Kowloon.

To fit into the programme of direct English teaching, the British Council library was reorganised to house only books on English language teaching, English literature, fiction and reference subjects. Books on other subjects were presented to the colleges of education and Urban Council libraries.

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Providing for the people

The range of cultural events, entertainment programmes and public amenities provided for the people of Hong Kong is continuing to grow. This is due largely to the vigorous efforts of the Urban Council, whose many different functions enhance the fabric of everyday life in the urban areas. The council comprises both elected and ap- pointed members of the community. Its policies, development schemes and muni- cipal services are put into effect by the 18,900-strong Urban Services Department, the second largest government department. Tasks carried out extend from the daily protection of public health - through street cleaning, for example - to planning and managing markets, libraries, theatres, museums, swimming pools, sports grounds, parks and other open spaces. The council also has played a leading role in the development of the arts in the 1970s through its administration of the City Hall, Hong Kong's foremost and oldest cultural centre, located on the waterfront in Central district. In 1977, the City Hall was the scene of the second highly- successful Festival of Asian Arts a venture the council pioneered in 1975. In addition, a year-round programme of free public entertainment is staged every evening in one or other of the urban districts. The council is combining with the government to build a new cultural complex now taking shape in Tsim Sha Tsui.

Previous page: A Mid-Autumn Lantern Festival, one of the many events on the free, open-air entertainment programme provided by the Urban Council, adds a fairly-tale touch to Victoria Park. Left (from top); Staff at the Museum of History open a time capsule dating from 1897; models of fishing junks on display at the museum; Shek Wan pottery exhibition presented as part of the Festival of Asian Årts.

The City Hall exhibition rooms, which are used to stage events like this ribbon flower show, draw daily crowds, including hundreds of young people.

　　　　　Above: Kandyan dancers and drummers from Sri Lanka delighted Festival of Asian

Arts audiences.

Below: Balinese dance and music groups were another major attraction at the 1977 festival.

　　　　　　Above: Hong Kong's contribution to the festival included Peking and Cantonese

opera performances.

Below: A Japanese troupe presented Noh theatre, an ancient form of masked song and dance drama.

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Youngsters cool off at the Urban Council-managed Aberdeen swimming pool, one of two multi-pool complexes opened during 1977 to provide more recreational facilities.

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Lifeguards keep watch over the safety of the millions of people who each summer descend on beaches administered by the Urban Council and Urban Services Department.

This pair of playful jaguars, acquired in 1977, delights visitors to the Zoological and Botanical Gardens,

located near Central district's busy streets.

The Environment

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TEI

　　　　　SIGNIFICANT developments in pollution control beyond the usual drafting of laws and the introduction of additional means of protecting the environment occurred during 1977.

　　　　　　A 21-year consultancy study, completed during the last half of the year, made recommendations for comprehensive environmental protection legislation together with a programme for establishing the organisation required to control pollution. An environmental protection adviser was recruited during the year to head a new Environmental Protection Unit that will be responsible for developing environmental protection policy; establishing priorities and guidelines for pollution control; co- ordinating pollution control efforts; providing technical expertise on pollution control; and ensuring that the provisions of environmental protection legislation are properly implemented.

Pollution Control Organisation

The policy-making and co-ordinating body responsible for the environment is the Environment Branch of the Government Secretariat. As well as pollution and conservation, its responsibilities broadly cover land matters, overall planning, new towns, urban services and transport.

　　　　　　　The Secretary for the Environment's task is to encourage and oversee development and, at the same time, to ensure that the environment is protected. He also considers ways of tackling existing pollution and guarding against potential pollution from sophisticated new industries. A wide range of pollution control legislation has existed in Hong Kong for many years. But this grew in a somewhat piecemeal fashion and was enforced by a number of departments without any overall co-ordination. Although this proved effective in such areas as smoke control, water pollution, oil spills and the management of waste disposal, both the legislation and the fragmented control are now considered to be generally inadequate.

　　　　　　　For this reason, environmental consultants were engaged in 1974 to study the situation and advise on the general approach to be adopted towards environmental protection. The consultants also were asked to draw up detailed recommendations for monitoring the environment, and for the legislation, organisation and strategy required for its implementation. Their recommendations will form the basis for comprehensive environmental protection legislation. Earlier advice put forward by the consultants led to the establishment of the Environmental Protection Unit, which has a professional adviser as its head and for which qualified staff are being recruited.

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During its second term of office, the Advisory Committee on Environmental Pollution (EPCOM) continued to steer the consultancy by keeping a constant watch on the environment and advising the Secretary for the Environment on measures to combat pollution.

Water Pollution

　　　　　At present, most domestic sewage from the urban area is discharged untreated, after screening, into the sea via submarine outfalls. To prevent water quality in the harbour from deteriorating further, work continued during 1977 on a 10-year programme to identify the sewage treatment and disposal needs of Hong Kong. In addition, work went ahead on the building of sewage treatment plants at Sha Tin New Town and at the Tai Po Industrial Estate.

Industrial effluent largely comes from the bleaching and dyeing industry, and most is discharged untreated. However, the need to provide legislative control over industrial discharges has been identified and will be given priority in the drafting of legislation to control water pollution.

Considerable efforts were made during 1977 to combat oil spills. Legislation was passed to increase to $200,000 and a year's imprisonment the maximum penalty for polluting the waters of Hong Kong with oil or a mixture containing oil. The law allows for recouping costs incurred in clearing or dispersing oil pollution.

　　　　　　The Marine Department, the authority for dealing with oil spills, strengthened its oil pollution control team by buying a shallow-draught craft specially designed for working close to beaches and a mechanical skimming device capable of collecting 10 tonnes of oil an hour in waters where it is neither feasible nor practicable to disperse oil with chemicals. These two purchases will augment a purpose-built launch equipped with modern pollution control facilities.

　　　　　　In addition, the department maintains stocks of oil-dispersing chemicals and oil containment booms, and 20 government craft can be equipped at short notice with pumps and spraying gear. All the equipment provided is operated by personnel trained to deal with oil spills and aware of the inherent dangers of pollution. To protect recreational amenities and the marine environment generally from the damag- ing effects of floating oil, an oil contingency plan has been prepared and is continually updated. It enables all government departments, commercial interests, auxiliary services and defence forces to be aware of procedures for dealing with a major oil spill and the equipment available. The oil pollution contingency plan was last put into operation in September, 1977, when a large container ship ran aground at the northern tip of Lamma Island and spilled oil in adjacent waters.

As a result of Hong Kong's agreeing in 1976 to take part in three international conventions on marine pollution, the use of oil dispersants has been restricted to approved types with a low toxicity for marine life. From January, 1979, users of dis- persants in Hong Kong waters will be required to obtain a licence from the Marine Department.

　　　　　　Another aspect of marine pollution handled by the Marine Department's Pollu- tion Control Unit is the removal of floating refuse from the waters of Hong Kong. Harbour cleansing fleets operate scavenging services in Victoria and Aberdeen harbours; inside the Yau Ma Tei and Causeway Bay typhoon shelters; and at Tsuen

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Wan, Chai Wan, Junk Bay and the vicinity of Kowloon Bay; plus a ship-to-ship domestic refuse collection service. In July, two motorised sampans were added to the Aberdeen Harbour service and two fleets - each consisting of a mechanised cargo boat and three non-motorised sampans - began operating on a flexible working area basis within Victoria Harbour. Both are expected to lead to a definite improvement in the cleanliness of these waters. The harbour cleansing service is carried out by more than 50 mechanised cargo boats and sampans owned and crewed by private contrac- tors, but supervised by staff of the Pollution Control Unit. Public tenders for these services are invited annually, ensuring a fair and reasonable cost to the government. An average of 16 tonnes of wet refuse is lifted from the sea each working day while the ship-to-ship service collects about 2 tonnes of refuse daily from ocean-going ships. Medium-term proposals call for establishing a mechanised and fully integrated sea-land refuse collection and disposal system covering the entire waters of Hong Kong and the phasing out of manually-operated services.

　　　　　　In the seven years since it was formed, the Pollution Control Unit has successfully prosecuted many who have caused pollution; fines totalling about $150,000 were imposed during the year.

　　　　　　The Marine Pollution Section of the Agriculture and Fisheries Department resumed its fortnightly plankton sampling programme in Tolo Harbour in late 1976 in colla- boration with the marine science laboratory of the Chinese University of Hong Kong. Sampling at the innermost station was abandoned as reclamation work approached in April, but a station was added on a new spoil dumping ground off Flat Island. A number of red tides were observed in the inner harbour in the spring, and a major fish kill occurred in Tai Po Hoi at the end of May after heavy rains washed accumulated organic wastes out of the Lam Tsuen River.

A new programme of fortnightly plankton sampling, initiated late in 1976, covers 12 stations in Port Shelter, Junk Bay, Victoria Harbour and its western and south- western approaches. Intensive sampling was undertaken in Junk Bay in July and August to investigate its long-term capacity to receive effluent discharges.

A benthic or sea-bottom survey, undertaken in collaboration with a research student from the University of Hong Kong, was completed in August and the results have been presented in thesis form. An additional survey of Tolo Harbour was made as a part of the university's malacological workshop in early April. Surveys of sea urchin and sea fan abundance on rocky bottoms are being made in co-operation with amateur divers as a local contribution to Underwater Conservation Year.

　　　　　　Long-term monitoring of toxic metal loads in inshore fish and shellfish was initiated in the autumn as a sequel to last year's preliminary survey. The major object is to determine long-term trends in contamination levels.

　　　　　　In an effort to curb pollution that farmers cause by hosing and dumping livestock manures into New Territories streams and watercourses, the Agriculture and Fisheries Department Waste Treatment Unit spent most of the year tackling problems the polluters will face when they change their unsatisfactory manure-handling and dis- posal practices.

　　　　　　Pilot schemes run by the department to help solve these problems include a rotary-type drier at Pat Heung that continued to convert poultry manure into fertiliser, and a batch-type drier at Sai Kung that was commissioned in the last half of the year.

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The first trials with the batch-type drier were made with pig manure and the results compared with those from the rotary-type drier. At the Ta Kwu Ling Pig Breeding Centre, investigations into slurry treatment continued and, in September, work was completed on an extension that included a second aeration pond and two biochemical filter towers for improving farm liquid wastes.

Work on manure handling, storage and transport problems involved the siting and building of the first collection and storage bunkers, designed for both solids and liquids, and manure pre-drying trials aimed at cheapening treatment by driers.

Air Pollution

　　　　　Records taken at the four daily monitoring stations operated by the Labour Depart- ment Air Pollution Control Unit during 1977 continued to show a significant reduction in sulphur dioxide concentrations. At Hung Hom, the level of sulphur dioxide was about one 60th of the maximum permitted level of 1,310 ug/m3. Readings at the Queen Elizabeth Hospital station were about 43 ug/m3 while readings at Sham Shui Po and at the Central Market were about 12 ug/m3. Smoke density readings at the four stations showed no substantial increase over the previous year's figures.

　　　　　　A three-month environmental survey of pollution levels, similar to that carried out in 1976, was jointly conducted by staff of the Air Pollution Control Unit and second-year students of the University of Hong Kong chemistry department. Con- centrations of sulphur dioxide, nitrogen oxide, carbon monoxide and particulates were monitored at different levels in busy streets and in industrial areas.

　　　　　　During the year, the unit handled 1,029 air pollution complaints from the public. Although the unit finds that constructive advice is usually more effective than stringent enforcement, prosecutions under the Clean Air Ordinance and its subsidiary regula- tions against persistent offenders are still necessary. In 1977, there were 73 convictions with fines ranging from $100 to $2,150.

Chimneys at the Kennedy Town incinerator were fitted with nozzles to improve dis- persion during the year. Work to raise by 30 metres the height of the chimney at the Lai Chi Kok incinerator began in September. The dispersion of waste gases will be much improved when the work is completed by mid-1978. A new incinerator, equipped with modern pollution-reducing equipment, is being built at Kwai Chung. Sections of the Road Traffic (Construction and Use) Regulations were amended in March to allow the police to make roadside checks on vehicles emitting excessive exhaust smoke. A publicity campaign, organised jointly by the government and EPCOM, was held to publicise the new regulations and to impress on motorists that properly maintained vehicles emit less exhaust smoke. Under the new legislation, an owner can be summonsed if a vehicle emits smoke above the permitted level.

Noise Pollution

Legislation to control noise from air-conditioning plants came into force in February, 1977. Special training courses on noise control were arranged for Urban Services Department health inspectors to enable them to enforce the legislation and to prepare them for future responsibilities in controlling noise pollution from stationary sources. With the recovery of the economy, public and private building accelerated during the year. As a result, the problem of construction noise attracted many complaints,

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　　　　　pointing to the need for further legislative controls on construction noise. In addition to the proposed introduction of further restrictions on operating hours for construc- tion equipment, the government is consulting with the building industry to establish a code of practice that will require noise reduction measures to be implemented at construction sites.

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 rise from sea-level to 600 and 900 metres 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 4,050 hectares of woodland - much of it the result of afforestation programmes. The woodlands not only beautify the countryside but also are important in the management of water catchments.

The Country Parks Ordinance, which came into effect in early 1976, gave a fresh impetus to a five-year-old programme to develop the recreational potential of the countryside. The legislation provides for the designation, control and management of the most important areas of the countryside as country parks, and it enables them to be developed for recreational and tourism purposes. It also gives particular pro- tection to vegetation and wildlife.

　　　　　　During the year, five country parks and three special areas were formally designated under the Country Parks Ordinance. These included the Tai Po Kau forest plantation, the scenic countryside around the Shing Mun reservoir, the Kowloon group of reservoirs, Lion Rock, and the Tai Tam and Aberdeen reservoirs.

　　　　　　The Agriculture and Fisheries Department has long been responsible for con- servation and forestry work and for relatively intensive management of countryside areas. Since 1972, it has been carrying out a programme to improve footpaths and to provide picnic and barbecue places, shelters, information and education services, and other facilities. Road access to the countryside also is being improved to enable management services to deal more effectively with fire and litter the most serious problems created by visitors.

　　　　　　The department also is 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 on bird and wild mammal hunting and carrying firearms. Overall enforcement of the Wild Animals Protection Ordinance is carried out by eight full-time game wardens. They are supported by 331 other government officials with powers of game wardens and by 31 honorary game wardens. In addition, 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 of special interest to ecologists, such

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　　　　　as a site where a rare tree or a rare species of butterfly can be found. Up to Decem- ber 31, 1977, a total of 11 of these sites had been identified for future conservation action.

Topography and Geology

Hong Kong lies on the edge of an eroded mountain chain that extends along the south coast of China and is largely composed of folded and metamorphosed volcanic and sedimentary rocks with younger intrusions of granitic rocks mostly of the Juras- sic 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.

Because of 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 five or 71⁄2 centimetres. 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, bringing about the necessity 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. Following 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. Fish ponds also are an important form of rural land use.

Climate

　　　　　Hong Kong lies within the tropics but, unlike many other tropical places, it experiences distinct seasonal changes in weather. The winter months are characterised by frequent outbreaks of cold and often dry air originating from the Asian continental anti- cyclone. It is not uncommon during January, February and March to have tem- peratures below 10 degrees Celsius, although the mean temperatures from December to March are around 15 to 17°C. During outbreaks of cold air, the winds often become strong from the north or east. The prevailing wind during winter, and for most of the year, is a moderate easterly.

　　　　　　In summer, the weather is tropical: hot and humid with occasional showers or thunderstorms. Winds are often light and variable, although the south-west monsoon is the prevailing wind affecting South-east Asia. Afternoon temperatures frequently exceed 32°C between June and September with mean temperatures of 27 to 28°C. Tropical cyclones are most common between July and September. In an average year,

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　　　　　about five can be expected to cause strong winds in Hong Kong and about one gale- force winds or higher. Tropical cyclones occur in the Pacific and the South China Sea throughout the entire year, although none has caused gales in Hong Kong between December and April. When a tropical cyclone is about 600 to 800 kilometres from Hong Kong, the weather is usually fine and very hot. As it moves closer, winds increase and rain becomes heavy and widespread. The severe weather associated with a tropical cyclone usually affects Hong Kong for one to three days.

　　　　　　Spring is characterised by cloudy skies, periods of light rain or drizzle and, occa- sionally, very humid conditions with coastal fog. Temperatures tend to fluctuate widely from day to day, but show a marked increase over the season. Autumn is usually sunny and dry and only occasionally interrupted by tropical cyclones or outbreaks of cold air, making it generally the best time for visiting Hong Kong.

　　　　　　　The mean annual rainfall is 2,168.8 millimetres, of which about 80 per cent falls between May and September. The wettest month of the year is June, when rain occurs about two days out of three and the average monthly rainfall amounts to 401.2 mm. The driest month is December, when the monthly average is only 24.9 mm and when rain usually falls on only about five days in the month. Climatological informa- tion on Hong Kong's weather is given in Appendix 39.

　　　　　　　The severe weather phenomena that can affect Hong Kong include tropical cyclones between May and November, strong winds from the winter monsoon between October and March, frost and ice on hills and inland in the New Territories between December and February, and thunderstorms that occur most frequently between April and September. Waterspouts, hailstorms and snow are comparatively rare. Although the lowest temperature recorded at the observatory in Tsim Sha Tsui was 0°C, sub-zero temperatures are recorded at times at higher elevations and in the New Territories.

The Year's Weather

The year's total rainfall of 1,680 millimetres represented only 77 per cent of the average value and was the lowest since 1967. Conditions were extremely dry during the first four months of the year and the rainfall for the five-month period ending March 31 amounted to only 29.2 mm- the lowest ever recorded for that period. During the prolonged drought, there were Press reports of heavy losses among farmers, flower growers and fish breeders. Large stretches of farm land in the New Territories were abandoned because of the lack of water as wells and streams dried up. The year as a whole was sunnier and warmer than usual. The year's mean tem- perature of 23.3°C ranked second highest on record, but was equalled in 1963 and 1973; the warmest year was 1966 with a mean temperature of 23.8°C. The summer was rather hot but not very humid. The annual mean atmospheric pressure of 1,013.5 millibars equalled the highest on record.

　　　　　　　During the year, 21 tropical cyclones were reported over the western North Pacific and the South China Sea. Although tropical cyclone warning signals were displayed on eight occasions in Hong Kong, very little damage was reported. Severe Tropical Storm Freda, the only tropical cyclone for which gale or storm signals were hoisted, passed about 128 kilometres to the south-south-west of Hong Kong on September 24 and resulted in gale-force winds.

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　　　　　　January was much colder than usual. There were 18 days with minimum tempera- tures below 10°C and the month was the coldest January since 1934. On the morning of January 5, the air temperature fell to a minimum of 6.2°C, the lowest recorded in the year. Because of the cold weather, 11 people were reported to have died in the urban areas. Farmers in the New Territories reported heavy losses of piglets and chickens. The rainfall for both months was much below average. Conditions were very dry in February and, although many fire danger warnings were issued, numerous fires broke out both in buildings and in forest areas. On the last three days of February, a humid airstream from the Pacific caused widespread fog in coastal areas.

　　　　　　Rainfall was very much below average in March and April. Both months were sunnier and warmer than usual. The mean relative humidity of 73 per cent in March was the lowest on record for March, while the mean temperatures in April were the highest on record for April. Persistent and widespread fog was reported in coastal areas on March 2 and a triple-decker ferry sank after colliding with a hydrofoil near Hei Ling Chau. Heavy showers on April 28 brought a welcome relief and enabled farmers to start transplanting some crops.

The dry conditions came to an end in the middle of May, which was the first month since August, 1976, with above average rainfall. The first half of the month was fine and sunny, but an active trough of low pressure remained close to Hong Kong for the remainder of the month, which was cloudy with frequent heavy showers and scattered thunderstorms.

Rainfall was below average in June, July and August and these months were much hotter than usual. On the afternoon of August 24, the air temperature rose to a maximum of 34.9°C-the highest recorded in the year. The first tropical cyclone of the year for which signals were displayed in Hong Kong was Tropical Storm Ruth. It passed about 320 kilometres to the east of Hong Kong on June 16 and had little effect on local weather. In July, signals were hoisted for three tropical cyclones and two of them caused heavy squally showers and strong winds in Hong Kong. Signals also were hoisted for Tropical Storm Amy in August. However, when it was about 400 kilometres east of Hong Kong late on August 21, it recurved into the Taiwan Strait and left Hong Kong unaffected.

　　　　　　Rainfall in September was about 50 per cent above average. Five tropical cyclones developed over the western North Pacific and the South China Sea during the month and local signals were hoisted for three of them. Tropical Storm Carla, the wettest tropical cyclone of the year, passed about 380 kilometres south of Hong Kong on September 3 and winds in Hong Kong were strong easterly from the evening until the following afternoon. Between September 4 and 6, as Carla moved over Vietnam, an active rainband stayed near Hong Kong and resulted in 268.4 mm of rainfall at the Royal Observatory. Typhoon Dinah stayed over the northern part of the South China Sea from September 16 to 22 and the standby signal remained hoisted for a record 124 hours and 40 minutes. On September 24, Severe Tropical Storm Freda moved rapidly across the South China Sea and passed within 128 kilometres of Hong Kong. It was the only tropical cyclone for which gale or storm signals were hoisted during the year. Although no significant damage was reported, all public transport services and air traffic were disrupted and 37 casualties were reported.

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October rainfall was almost double the average for the month and particularly heavy rain was experienced on October 26, when 51.7 mm of rainfall were recorded at the Royal Observatory between 11 a.m. and noon. No tropical cyclones affected Hong Kong during the month. However, the strong monsoon signal was hoisted for about nine hours on October 11 to warn of strong easterly winds.

Because of the persistence of the continental anticyclone over China, November was sunnier, slightly cooler and much drier than usual. There were only three days with measurable rain at the Royal Observatory and the humidity was very low.

December was sunny, mild and dry. The month was about two degrees warmer than usual and was the warmest December since 1968.

The Royal Observatory

The Royal Observatory was established in 1883. Apart from the war years of 1940-6, it has been making meteorological observations at its Tsim Sha Tsui location since January 1, 1884. The observatory's main responsibility is meteorology and geophy- sics. Forecasting services and storm warnings are provided for the people of Hong Kong and for shipping and aviation, on which trade and tourism so largely depend. Because of Hong Kong's unique situation, the observatory performs the functions of a municipal, national and international weather service. Locally, it maintains a 24-hour watch on the weather and routinely issues both public and individual fore- casts. The observatory is responsible for Hong Kong's Time Service. Six-pip signals are broadcast every 15 minutes on a frequency of 95 megahertz and are relayed by radio and television stations. During the last part of 1977, the observatory started an experimental weather broadcast on the same frequency.

As a national weather service, the observatory operates five meteorological stations in Hong Kong and an extensive system of special observing stations manned pri- marily by volunteers. These include a dense network of more than 100 rainfall stations and an array of seven tide gauges. There also are a number of individual observers from schools, government departments, industry and the general public. Records from these observations are routinely collected and analysed. Various weather summaries, weather charts and reports on tropical cyclones affecting Hong Kong are published yearly.

The international responsibilities of the observatory are primarily centred around aviation and shipping. Aircraft leaving Hong Kong are given briefings, forecasts and copies of weather charts. About 75 flights a day are supplied with meteorological documents. In addition, a continuous watch is kept on the weather at other airports and along air routes.

The observatory provides instruments for 44 selected ships and an average of 50 weather reports are received each day through Hong Kong's two coastal radio stations. All reports are disseminated to other countries and punched on to cards for computer use. Special weather bulletins are issued twice daily for international shipping and four times daily for fishermen. Yachtsmen also are provided with weather bulletins during weekends and on public holidays.

All weather services provided by the observatory depend on efficient communica- tions. Each day, about 10,000 weather reports are received from land stations, ships

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and aircraft. The coded meteorological information is passed to a computer system for sorting, decoding, printing and archiving. Automatic message switching of meteorological data between Hong Kong, Peking, Bangkok and Tokyo is done by computer.

　　　　　　Both visible and infra-red photographs are received daily from polar-orbiting weather satellites. More of these pictures will soon be received several times a day from a geostationary meteorological satellite launched by Japan during the year.

　　　　　　The tropical cyclone warning service is one of the observatory's most important functions. Tropical cyclones are tracked by radar, satellite pictures and from aircraft and ship reports. Once a tropical cyclone has formed and moved into the area between latitudes 10°-30°N and longitudes 105°-125°E, the observatory prepares bulletins on the position, intensity and movement of the tropical cyclone, and issues 24-hour forecasts. These statements are disseminated to the public through the media, to shipping companies and airlines, and to neighbouring countries. Objective forecasts of tropical cyclone movements are made four times a day by computer. These fore- casts are used by the observatory and also are sent to other countries. This year, objective forecasts were computed for the additional area of latitudes 10°-20°N and longitudes 125°-135°E.

When tropical cyclones approach Hong Kong, warnings are distributed by visual signals, telephone, radio and television. Information and forecasts are broadcast at frequent intervals, along with advisory bulletins and precautionary announcements. The observatory displays signals for various stages of alert when tropical cyclones come within 600 kilometres of Hong Kong. The signals are based on the forecast or actual affect of the tropical cyclone on Hong Kong. If the centre of a tropical cyclone comes within 400 kilometres of Hong Kong, it can normally be seen on the observatory's radar installations mounted on top of Tate's Cairn, 580 metres above mean sea level. Time-lapse films of the radar display are taken during tropical cy- clones and, this year, a video time-lapse system was used in the Central Forecasting Office to record and play back the radar display in real-time.

Instruments and Measurements

The Seismology Section of the observatory operates six seismographs in a specially- constructed cellar at the Tsim Sha Tsui headquarters. These instruments record long and short period vibrations transmitted through the ground. On average, tremors from about 800 earthquakes all over the world are detected and analysed each year. Other tremors from underground nuclear explosions, storm microseisms, local blasting or pile-driving - also are recorded. Hong Kong lies just outside the circum- Pacific seismic belt and has not suffered significant earthquake damage since 1918. However, an average of two to three minor tremors are felt each year by residents in certain locations, specially in high-rise buildings. One such tremor, which occurred on May 12, 1977, registered an intensity of three to four on the modified Mercalli Scale of 12.

The observatory takes part in the Tsunami Warning System for the Pacific region. Tsunamis are seismic sea waves caused by earthquakes. A special warning is issued whenever an intense earthquake is recorded with an epicentre in the Pacific Ocean or the South China Sea.

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A telemetry network of three modern short-period seismographs is being set up at Tsim Bei Tsui, Chi Ma Wan and Yuen Ng Fan to improve knowledge of regional seismology and to adequately monitor seismic activity. The seismographs will be installed in early 1978.

Three strong-motion accelerographs also will be installed on bedrock, decomposed granite and reclaimed land to study the response of different geological structures to seismic waves. Sites have been chosen at Tate's Cairn, the observatory headquarters and the Royal Hong Kong Auxiliary Police Headquarters in Wan Chai.

In co-operation with the University of Hong Kong, the observatory continued to take geomagnetic measurements during the year at a station near Tate's Cairn. 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 radioac- tivity for the first part of 1977 was low, although a marked increase was noted after the Chinese nuclear explosion in September.

　　　　　　Daily air pollution measurements at King's Park were started during the year to measure the concentration of particulates and sulphur dioxide in the atmosphere. This information is needed for a scientific study on the effects of local weather on the concentration of pollutants. A Pollution Meteorology Unit within the observatory is planned to study microscale meteorology in places ear-marked for development as part of environmental impact investigations.

The observatory maintains meteorological instruments at various locations through- out Hong Kong. Anemometers at 12 sites record wind information, which is specially important during tropical cyclones and also useful in connection with a variety of engineering projects. The observatory co-operates with the University of Hong Kong in operating wind towers at Cape D'Aguilar to record the vertical structure of winds, particularly in relation to wind stress on buildings. Because the majority of these instruments both electronic and non-electronic are unique in Hong Kong, all repairs, calibration and maintenance are done by observatory staff.

　　　　　　Special meteorological instruments are operated at Hong Kong International Airport, where the safety of aircraft depends on reliable and accurate meteorological measurements. Three anemometers will soon be installed in the aircraft approaches as part of an operational wind shear project. When fully operational, the project will provide pilots with warnings on variations in winds during the critical take-off and landing periods.

Research

　　　　　Investigations and basic research in applied meteorology and geophysics were carried out during the year in support of local industry and government activities. Mete- orological data and climatological information were routinely supplied to other government departments, and to local and overseas institutes and organisations. More than 220 technical papers have been published by the observatory on various aspects of local weather and on a wide variety of geophysical subjects.

　　　　　　In 1977, the observatory was involved in numerical modelling by computer of storm surges - abnormal tide levels that occur during tropical cyclones. The findings will be used to produce the best design levels for sea walls, reclamation and drainage

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at Sha Tin New Town. Data from seven tide gauges and three wave recorders in different parts of Hong Kong were used in this investigation, along with a hydrody- namical storm surge model for open sea and bays.

A numerical barotropic model was developed to produce prognostic upper-air weather charts aimed at improving day-to-day weather forecasts and predicting tropical cyclone movements. Intensive efforts also were devoted to the study of the effect of heavy rain on soil movement and for formulating landslip prediction pro- cedures. Nomograms were constructed to estimate short-period rainfall amounts during tropical cyclones and new probability techniques were developed for use in forecasting the onset of gales and hurricane-force winds over Hong Kong. In addition, climatological studies were made to relate past tropical cyclone positions and their effect on winds and rainfall in Hong Kong. The observatory also assisted in a region- wide evaluation of objective techniques for predicting tropical cyclone movements. The observatory reference library contains more than 12,000 volumes of textbooks and periodicals. Besides staff members, the library is used by students, teachers, engineers and research workers from local universities and schools. The library also keeps microfilmed copies of historical weather charts and records, and a comprehen- sive collection of satellite photographs and time-lapse radar films of meteorological phenomena.

Population

Ꮜ

THE total estimated population at the end of 1977 was 4,566,900, comprising 2,337,600 males and 2,229,300 females. This represents an increase of 21 per cent on the 1967 population estimate of 3,760,600.

The average annual rate of increase over the 10-year period was two per cent, with the rate fluctuating year by year because of changes in migration flow. But the rate of natural increase dropped steadily over the period from 18.3 to 12.5 per thousand. This was the result of the birth rate declining from 23.7 per thousand in 1967 to 17.7 per thousand in 1977. The death rate remained stable at about five per thousand.

In the first half of the 10-year period, the decline in the birth rate was caused by a decrease in the number of married women in the prime child-bearing age groups and by women having fewer children; in the second half, it was mainly the result of fewer births. In recent years, later marriages also have contributed to this trend, along with improvements in education and job opportunities.

　　　　　　　This is a favourable trend. But, reflecting the baby boom of the 1950s, it is estimated that the number of women in the fertile age group between 20 and 35 will increase substantially from 528,000 in 1977 to 782,700 by 1987. To counter an anticipated large increase in the number of births during this period, the government plans to make available to those who desire them a whole range of family planning services. The intention is to develop existing services and to increase publicity and research.

　　　　　　Hong Kong, with a land area of only 1,049 square kilometres, is one of the most densely-populated places in the world. The overall density per square kilometre at the end of 1977 was 4,354. But this figure includes a wide variety of densities by in- dividual areas. According to the 1976 by-census, the density for the metropolitan areas of Hong Kong Island, Kowloon, New Kowloon and Tsuen Wan was 25,400; but for the New Territories it was 554 per square kilometre. These area densities will, of course, change with the development of more new towns in the New Territories - notably at Tsuen Wan/Kwai Chung, Sha Tin and Tuen Mun. They are being developed to alleviate high densities in the urban areas and to cope with the prospect of providing an increasing population with better housing, education and other social services.

The population of Hong Kong is still very young - in 1977 about 41 per cent was below the age of 20. But the median age of the population was 24.2, compared with 20.4 10 years ago. The proportions between the different sections of the population also have changed considerably. In 1967, 40 per cent of the population was under 15; now it is 29.1 per cent. The relative figure for those aged 65 and over has risen from 3.9 per cent to 5.7 per cent. This shows that there is a greater potentially-productive

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population (those aged 15 to 64) available to support infants and those who are being educated or who have retired. The dependency ratio - the ratio of the young and the retired to those in the 15 to 64 age group - dropped from 784 per thousand in 1967 to 533 per thousand in 1977.

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 1977, the number of non-Hong Kong Commonwealth citizens living in Hong Kong totalled 53,686. These comprised: British 24,564 (excluding members of the Armed Forces); Indian 8,233; Australian 5,701; Singaporean 3,143; Canadian 2,815; and other Commonwealth countries 9,230. The number of non-Commonwealth alien residents was 29,381. Of these, the largest groups were: American 6,248; Portuguese 3,681; Pakistani 3,890; Filipino 3,174; Japanese 1,184; Indonesian 1,552; German 1,176; Korean 750; French 702; and Dutch 542.

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 Kwantung Province in China. The Cantonese group forms the largest community. The second largest group is Sze Yap, followed by the Chiu Chow group. The remaining Chinese popula- tion have their Heung Ha, or origins, in other parts 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, at least 15 days' notice of an intended marriage must be given to the Registrar of Marriages. The registrar has discretionary powers to reduce the period of notice in special circumstances or to grant a special licence dispensing with notice altogether. But this is rarely done and then only in the most exceptional circumstances.

Marriages may take place either at places of public worship licensed for the celebra- tion of marriages or at any of the 12 full-time marriage registries and four part-time sub-registries located in the main urban districts and rural centres. During the year, 37,881 marriages were performed in the registries and 2,502 at licensed places of worship. The total of 40,383 was 683 more than in 1976. All records are maintained 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 accord- ance 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, 80 customary and 27 modern marriages were post-registered, including 32 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

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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 com- mittee 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. There is no registration fee. However, 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, 78,807 live births and 23,459 deaths were registered, com- pared with 76,342 and 23,195 respectively in 1976. These figures, when adjusted for under-registration, gave a natural increase in population for 1977 of about 56,482. Illegitimate births registered during the year totalled 6,774, compared with 6,650 in 1976.

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. During the year, 1,643 births were post-registered, including 447 in the New Territories. The principal reason given for non-registration at the time of birth was simple negligence, but a number of applications for post-registration of adults continues to be lodged because registration facilities were not available until 1932. In addition, some cases relate to births which occurred during the war years, when there was no registration. But, in most cases during the year, applications for post-registration related to 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.

BIEDTH

Natural History

DESPITE the rapid spread of urbanisation in recent years, Hong Kong still has a large area of countryside in which the public can enjoy an interesting range of wildlife and plants.

To safeguard this natural asset, the greater part of the countryside is under one or another protection order, such as the Forests and Countryside Ordinance, the Wild Animals Protection Ordinance and the Country Parks Ordinance. New regulations under the Country Parks Ordinance were drawn up and enacted during 1977 to generally provide for the management and control of country parks and special areas. These include specifically the prohibition of hunting and damage to vegetation.

During the year, the list of species, or parts and derivatives of species contained in the Animals and Plants (Protection of Endangered Species) Ordinance was amended to bring Hong Kong into line with the 1976 Conference of Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

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 - Chinese Pond Heron, Night Heron, Cattle and Little Egrets, and the rare Swinhoe's Egret - nest there regularly. About 1,000 egrets can be found in the egretry during the nesting season between April and September, but only people with permits are allowed access. 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 hectares of mudflats, shrimp ponds and mangrove form a very rich habitat, particularly for ducks and waders. Three of the species recently added to the list of birds seen in Hong Kong - European Spoonbill, Long-tailed Skua and Chestnut- cheeked Starling - were recorded there.

　　　　　　Of the larger indigenous mammals, the Chinese Pangolin (Scaly Anteater) is seen. occasionally. It grows to a length of about one metre and is protected by horny scales. Areas around the Kowloon reservoirs are inhabited by monkeys that 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

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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 law. But the numbers increased to such an extent that crop damage caused by wild pigs 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. In an effort to cull the wild pig population, strictly- controlled shooting by licensed hunters is now permitted during the winter, when most damage to crops takes place.

　　　　　　　Indigenous mammals that 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 once plentiful Barking Deer 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 also are various species of terrapins and turtles, although none is 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 venomous than others, is not easily seen and strikes readily if closely approached. The 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 more than 200 recorded species and forms of colourful butterflies, several in their larval forms cause considerable damage to farmers' crops. These include the two com- monly-found species of Cabbage Whites, the Swallowtails, and the beautiful but less common Small Blue. Among the many local moths are the giant silk worm moths. These include the Cynthia, the Fawn and Golden Emperor, and the Atlas and Moon moths. The Atlas has an average wing span of 23 centimetres and the Moon 18 cen- timetres. Two 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 forehead. Dragon and damsel flies are common, 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, and again in 1977, the snails were late in emerging after the winter and were reported in much lower numbers than in previous years. The shortage of rain in the first half of 1977 also inhibited some of the six other

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species of snails that are common vegetable pests. Farmers are troubled by several slugs; one of these - Veronicella - is a large black slug sufficiently different from all other slugs to be placed in a separate family.

Aquatic Life

　　　　　Geographically, the seas around Hong Kong are a transient region, covering the northern limit of the tropical Indo-Pacific, and the southern limit of the temperate Chinese and Japanese marine life. Because of the presence of large coral reefs, there are more than 2,000 fish species; these are especially diverse in form, variety and colour. Many are exploited commercially. Of note is the large number of colourful coral reef fishes recently introduced to, and well established in, the live marine fish trade.

The waters of Hong Kong can be broadly divided into a western sector, influenced by the Pearl River and predominantly brackish, and an eastern sector, subject to the influence of the open sea. They provide natural propagation and nursery grounds for many commercial species of fish, crustacea and molluscs, and provide seasonal feed- ing for large transient predators, such as the Little Tuna, Dolphinfish, Sailfish and sharks. The Whale Shark, one of the largest fish in the world, has been observed in Mirs Bay.

Under the circumstances, the high productivity of local waters results in the seasonal occurrence of many commercial marine fishes either in juvenile to late juvenile forms, or of species low in the food chain, such as the clupeioids. These, and the transient predators, form very rich fish resources for commercial exploitation.

The presence of abundant fry and fingerling stocks of many percoid fishes has stimulated the development of lucrative floating cage culture fisheries. In 1977, produc- tion was estimated at 563 tonnes.

　　　　　　However, increasing land development activities through reclamation and dredging of the sea, with consequent dumping of spoil at sea, have already given clear indica- tions of adverse effects on the well-being and survival of marine life in these waters.

Dolphins continue to frequent Hong Kong waters seasonally. The green turtle has been reported to have returned to one of the islands, though in small numbers.

The culture of the Japanese oyster in Deep Bay continues. The abundance of the green mussel in Hong Kong waters suggests that this fast-growing bivalve mollusc also could be cultivated for commercial purposes.

The freshwater fauna of Hong Kong is poor by virtue of the artificial destruction of natural freshwater systems and geographic limitations. Freshwater fish culture follows traditional Chinese systems and has continued to expand, while improved management has led to higher unit yields.

Flora

　　　　　For so small an area, Hong Kong has a large and diverse flora. The territory is situated near the northern limit of the distribution of tropical Asian flora. It is estimated that there are about 2,500 species of vascular plants, native and introduced. Except for the most recent discoveries, these are listed in the Check List of Hong Kong Plants (Agriculture and Fisheries Department, 1974). A new illustrated book, the Wild Flowers of Hong Kong, by B. M. Walden and S. Y. Hu, was published early in the year.

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　　　　　　Before conservation, countless hillsides had been left bare of all trees through cen- turies of cutting, burning and exposure to the elements. Their only cover was grass- land or scrubland with patches of coarse grass. But now many slopes, particularly 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 steep ravines. These have survived the destructive influences 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 also are small areas of well-grown woodlands near the older villages and temples. These fung shui, 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 Man- grove Association occasionally occurs. There also are patches of vegetation peculiar to sandy beaches. 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 that serve as important sources of food for birds and animals.

Many villagers have a good working knowledge of the usefulness of a number of local plants. Aquilari sinensis is used in the manufacture of scented joss sticks. 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. New species of plant previously 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 was named Cymbidium maclehoseae in honour of Lady MacLehose, a keen naturalist.

　　　　　　　　The Hong Kong Herbarium, established in 1878, contains a collection of about 33,000 plant specimens. This government institution is responsible for collecting, classifying and maintaining authoritative preserved plant specimens representative of Hong Kong flora. It disseminates knowledge and information about the plants, and maintains an index of Latin, Chinese and common names. The herbarium, situated at the headquarters of the Agriculture and Fisheries Department in the Canton Road Government Offices in Kowloon, 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 seven-hectare gardens is strictly formal, with wide paths, pavilions, flower beds and a central fountain. Near the main entrance is a plant house where tropical, shade- loving plants are cultivated, and on the lawns and grass slopes many trees and flower- ing 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,

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Golden Agoutis, Prevost's Tree Squirrels, raccoons and pumas. Their enclosures, designed to encourage breeding, are attractively laid out within a botanical setting. Notable additions to the mammal collection during 1977 were a pair of young jaguars acquired from the Netherlands.

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 12 years, and many of them distributed to zoos and bird collections throughout the world. There was an exchange of rare birds with the Peking Zoo in 1977, and, during the summer, the flock of flamingos produced two chicks that were reared successfully. This was a happy sequel to the hatching in 1976 of the first flamingo chick, only to be lost through an apparent act of vandalism. Security arrangements in the gardens were tightened during 1977 through the employment of extra park keepers and guards, and the start of work on strengthening the perimeter fence. In addition, an effective publicity campaign was mounted to get public co-operation in combating vandalism that has damaged or threatened plant and animal life.

History

正

HONG KONG'S success in establishing itself as one of the world's great trading centres is rooted in the history of its people. It was they who laid the foundations for the development of Hong Kong and they who are continuing to build on these founda- tions.

Until 1841, Hong Kong had always seemed a particularly uninviting prospect for settlement, being mountainous and short of fertile land and water. In that year, however, the British colony was established and the development of Hong Kong began.

　　　　　　　The one outstanding asset possessed by Hong Kong was its harbour - largely the reason for the British presence. In a few years ships from all over the world were using Victoria Harbour as they engaged in the China trade.

Hong Kong's second great asset - its people - then began to appear. Chinese began to move to the new settlement and provide the services and infrastructure that allowed the territory to develop.

　　　　　　　In the 136 years since the founding of Hong Kong, many changes have taken place but these two assets remain. The harbour is continuing to grow in importance on world trade routes and an industrious population continues to build economic and social success.

The Post-War Years

Following the Japanese surrender in 1945, Chinese civilians - many of whom had moved into China during the war returned at almost 100,000 a month and the population, which by August, 1945, had been reduced to about 600,000, rose by the end of 1947 to an estimated 1.8 million. Then, in the period 1948-9, as the forces of the Chinese Nationalist Government began to face defeat in civil war at the hands of the communists, Hong Kong received an influx of people unparalleled in its history.

About three quarters of a million, mainly from Kwangtung province, Shanghai and other commercial centres, entered during 1949 and the spring of 1950. By the end of 1950 the population was estimated to be 2.3 million. Since then it has continued to rise and in 1977 totalled more than 4.5 million.

After a period of economic stagnation caused by the United Nations embargo on trade with China, Hong Kong began to industrialise. No longer could the territory rely solely on its port to provide prosperity for its greatly-increased population. From the start, the industrial revolution was based on cotton textiles, gradually adding

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woollens and, in the late 1960s, man-made fibres and made-up garments. In 1959, 53 per cent of Hong Kong's total domestic exports were textiles and clothing, com- pared with 47 per cent in 1977, showing economy's continued dependence on textiles. While textiles remain the mainstay of Hong Kong's economy, major contributions are made by plastic goods, electronic products and other industries.

As the volume of trade has increased so has the level of product design and sophistication. Quality standards and production methods have greatly improved with mechanisation being increasingly adopted as growth leads to higher labour costs. Economic expansion has enabled the government to increase its social and other services to match overall growth. The first public housing estate was built in 1954 after 50,000 squatters lost their homes in a Christmas Day fire at Shek Kip Mei in Kowloon. These housing blocks had only basic facilities and were intended to provide quickly a large number of homes at low rents. Standards have greatly improved since then.

　　　　　　A new, unified Housing Authority was formed in April, 1973, with the respon- sibility of planning, building and managing all public housing estates in Hong Kong. It is served by the Housing Department. Today more than two million people - 46 per cent of the population - live in government-subsidised accommodation. During 1977, 101,900 people moved into Housing Authority accommodation, making a total of almost two million in the authority's 64 estates with a further 131,010 in subsidised housing provided by the Hong Kong Housing Society - a voluntary government-aided organisation.

The design and layout of public housing estates, particularly in the provision of social and commercial facilities, has been greatly improved. Older estates are being upgraded and the Housing Authority has made a start on the government's plan to build homes for sale within the public housing sector.

Expenditure on education has increased enormously over recent years - forming 20 per cent of total government expenditure in the 1977-8 financial year. There are now 2,500 schools, four technical institutes, three colleges of education, a technical teachers' college, a polytechnic and two universities.

The government has announced that, from 1978, sufficient places will be made available for every primary school-leaver to complete three years of secondary educa- tion. In October, 1977, the Governor announced that junior secondary education would be made free and compulsory with the abolition of the standard $400-a-year fee. In November, 1977, a Green Paper issued for discussion outlined proposals for developing senior secondary and tertiary education over the next 10 years.

University education has expanded greatly since World War II. The University of Hong Kong re-opened in 1946 with 109 students. In 1977-8, there were 3,839 under- graduate places and 854 post-graduate places. The Chinese University of Hong Kong, which opened in 1963, had an enrolment of 4,247 undergraduates in September, 1977, with a further 468 students enrolled in the graduate programme.

Enormous strides have been made in social welfare in Hong Kong and a com- prehensive review of social security and welfare services was undertaken during 1977. Following the publication of a White Paper on Rehabilitation in October, three Green Papers dealing with the development of social security, services for the elderly and personal social work among young people were published in November.

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　　　　　　Social welfare development projects carried out in 1977 included the completion of five community halls; extending the public assistance scheme to cover the able-bodied unemployed; implementing the Child Care Centres Ordinances and opening six new government-subvented nurseries; making a start on a new institution to replace the Ma Tau Wei Girls' Home; establishing two homes and a hostel for the elderly; opening an advanced training centre for the mentally retarded; and providing more training places for mentally handicapped children.

　　　　　　In the 1976-7 financial year, government expenditure on social welfare increased to a total of $348 million.

　　　　　　Medical and health services have been continually improved. In 1977, a programme was introduced that will provide, over the next seven years, more than 4,600 additional hospital beds, five clinics, two polyclinics, two health centres, a second medical school and a dental school.

The development of maternal and child health services has been mainly responsible for reducing the infant mortality rate to a level now lower than in many developed countries, and a wide variety of services has brought about a generally good state of health throughout the community. A decade ago, tuberculosis was a major health problem in Hong Kong, accounting for more sickness and deaths than all other communicable diseases combined. Today, tuberculosis is no longer a problem and cancer and heart disease are the main causes of death.

　　　　　　During the post-war years, a comprehensive system of protection for wages, rest days, holidays with pay, maternity leave, sick pay and severance payments has been built up. In 1977, provision was made to grant, from January 1, 1978, seven days' paid annual leave to all employees covered by the Employment Ordinance. Sickness allowances and severance pay also were increased and further wage protection provided. Penalties for employing child labour were doubled and new safety regula- tions introduced. Better protection for workers injured on the job was provided by an amendment to the Workmen's Compensation Ordinance. Industrial workers' wages continued to rise during 1977. In September, 1977, the average daily wage, excluding fringe benefits, had increased by 37 per cent on the base period of July, 1973, to June, 1974. During the same period the cost of living index went up by 19 per cent.

New roads and flyovers have completely transformed road travel in the post-war era. In 1977, extensive improvements to the road systems of Hong Kong Island, Kowloon and the New Territories were being carried out. A second tube was laid in the Lion Rock Tunnel during 1977 and was due for completion in January, 1978. In 1977, some 21.9 million vehicles used the Cross Harbour Tunnel and revenue from toll fees amounted to $135.5 million. The Kai Tak Tunnel, a twin-tube, four-lane government project linking To Kwa Wan with Kwun Tong under the airport run- way, will be completed in early 1980. On Hong Kong Island, excavation work on the Aberdeen Tunnel, which will connect Aberdeen with Happy Valley, started in 1977. Work on the modified initial system of the mass transit railway was 40 per cent complete by the end of 1977. The 15.6-kilometre system will link the Central district of Hong Kong Island with Kwun Tong in Kowloon. There will be 12 stations under- ground and three above ground. The total cost of the system will be about $5,800 million.

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　　　　　　Double-tracking of the Kowloon-Canton Railway line from Hung Hom to Sha Tin was completed in December, 1977, and work on a new loop line and station to serve the new Sha Tin Racecourse began. Work also started on other improvements.

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 them- selves 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.

A Place from which to Trade

Hong Kong's development into a commercial centre began with its founding as a British colony in 1841. 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 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.

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　　　　　　But Elliot 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 settle- ment 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 that 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 that had been demanded as an alternative to a com- mercial treaty.

　　　　　　'You have treated my instructions as if they were waste paper,' Palmerston 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 interpreta- tion 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

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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.

Initial Growth

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 because 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 currency 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 Councils 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.

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　　　　　　The British residents on a number of occasions strongly pressed for self-government, 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.

　　　　　　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 in Hong Kong. Britain, with the largest foreign stake in China, was the main target of this anti-foreign sentiment, but Japan soon replaced her.

The 1930s and World War II

During World War I, Japan had presented its '21 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, 500,000 in 1938 and 150,000 in 1939, bringing the population at the outbreak of World War II to an estimated 1.6 million. It was thought that at the height of the influx about half a million were sleeping in the streets.

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HISTORY

Japan entered World War II with its attack on Pearl Harbour and an attack on Hong Kong the following day, December 8, 1841. 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 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 that is now an integral part of modern Hong Kong.

Constitution and Administration

UR TH

не

HONG KONG is administered by the Hong Kong Government and organised along the lines traditional for a British Colony. The local head of the government is the Governor. The central government is served by two main advisory bodies the Executive Council and the Legislative Council - the composition and functions of which are described later in this chapter. The British Government's policy towards Hong Kong is that there shall be no fundamental constitutional changes for which there is, in any event, little or no popular pressure.

The Governor

The Governor is the representative of the Queen. As head of the government, he presides at meetings of both the Executive and Legislative Councils. 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 and thus exerts considerable influence on the way Hong Kong is run.

The Governor is appointed by the Queen and derives his authority from the Letters Patent passed under the Great Seal of the United Kingdom. The Letters Patent create the Office of Governor and Commander-in-Chief of Hong Kong, and require him to observe its law and instructions given him by the Queen or Secretary of State. They also deal in general terms with such matters as the establishment of the Executive and Legislative Councils, the Governor's powers in relation to legislation, disposal of land, appointment of judges and public officers and pardons, and the tenure of office of Supreme or District Court Judges.

　　　　　　　Among the more important of the Standing Instructions are the Royal Instructions, which deal in more detail with the composition, powers and procedures of the two major councils, and the Governor's relationship to them, and powers and procedures relating to the passage of legislation and Colonial Regulations.

Executive Council

The Executive Council consists of five ex-officio members (the Commander British Forces, the Chief Secretary, the Financial Secretary, the Attorney General and the Secretary for Home Affairs) plus other members appointed by the Queen, or the Governor on the instructions of the Secretary of State. At present, there are nine appointed members - one official and eight unofficial - in addition to the five ex- officio members. The Governor presides at meetings of the council, although he is not a member.

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The council usually meets once a week throughout the year. Its 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 cases of extreme urgency.

　　　　　　In accordance with Royal Instructions, the Governor decides on matters to be put before the council. However, should he not agree to a request by a member for discussion of a particular matter, a record of both request and refusal must be entered in the minutes of the council should the member so desire.

Decisions on matters considered by the council are taken by the Governor. But if he decides to act against the advice of 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 council also is 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

The maximum potential membership of the Legislative Council is 50, made up of 25 official members (including the Governor and four ex-officio members, the Chief Secretary, the Financial Secretary, the Attorney General and the Secretary for Home Affairs) and 25 unofficial members. Present actual membership is 21 official and 24 unofficial members, thus leaving room for expansion within the approved maximum when the need arises. All members, except the Governor and other ex-officio members, are appointed by the Queen or the Governor on the instructions of the Secretary of State.

　　　　　　The primary functions of the Legislative Council are the enactment of legislation and control over 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 also may 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 council meets in public once every two weeks throughout the year, except for a recess of about two months in August and September. A wide-ranging debate on government policy follows the Governor's address at the opening of the new session of the council in October each year. The Budget debate on financial and economic affairs takes place in February and March each year during the second reading of the Appropriation Bill.

The Finance Committee of the council - consisting of the Chief Secretary (chair- man), the Financial Secretary, the Director of Public Works and all the unofficial members of the Legislative Council - considers requests for public expenditure and the supplementary provision of funds. The committee meets in private.

UMELCO

The Unofficial Members of the Executive and Legislative Councils (UMELCO) play an important part in helping to shape government policies, enact legislation, and bring about improvements in the public administration of Hong Kong. In addition

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219

to their membership of the Executive and Legislative Councils, all are leading members of the community who participate widely in public and community affairs. Between them, they hold many seats on the extensive network of government and community committees and boards that play such an important part in the running of Hong Kong. Because of their wide experience, their views carry considerable weight. In recent years, unofficial members have been selected from an increasingly wide spectrum of society a process that may be expected to continue.

The unofficial members have their own office, which provides them with adminis- trative services and, under their direction, handles complaints and representations from the public on the whole range of government activity. This latter service is an important part of the duties of UMELCO. In carrying it out, unofficial members have access both to government papers and senior officials, and also may raise questions in the two councils. Hundreds of individual grievances and complaints have been rectified in this way.

In addition to their formal, public contribution to the consideration and enactment of legislation at meetings of the Legislative Council, unofficial members also spend a great deal of additional time examining draft legislation in informal groups set up for this purpose. Public views, as known to members, are taken into account during these examinations, which not infrequently result in suggestions for amendments. 1 There is substantial informal day-to-day contact between unofficial members and government officials, during which matters of public concern and individual grievances are aired.

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, of whom 12 are appointed by the Governor and 12 are 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-chair- man is elected from among the 24 members of the council.

　　　　　　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 that meet, on average, once a month. In addition, there are 20 sub-committees, boards and panels. Select committees and sub-committees co-opt such officials and other persons as are necessary, but each select committee is chaired by an urban councillor.

　　　　　　The Urban Council's responsibilities are restricted to Hong Kong Island, Kowloon and New Kowloon, which have a population of about 3.5 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, crematoria 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 and squash courts, games

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halls, sports grounds, playgrounds and parks; provision and patronage of cultural services and outdoor entertainment; and the licensing of places of public entertainment and liquor licensing. In all of 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 34.8 per cent share of the yield from rates in the urban area. Fees and charges provide other sources of income. In the 1977-8 financial year, the council worked to an overall budget of $446 million.

　　　　　　The council moved to its new specially-designed chambers adjacent to the City Hall in March, and the first public meeting was held there in April.

In addition to their more formal activities, an important part of the work of urban councillors is the operation of a ward system for dealing with complaints from the public. Under this system, councillors are responsible for dealing with complaints on a district basis, with two councillors looking after each district. A large number of questions and complaints is dealt with in this way, either by councillors dealing with matters themselves informally or by an approach to the government department concerned or raising the matter formally in the Urban Council.

Advisory Committees

An important aim of the government is that of improving its contacts with the popu- lation at large. The government also is concerned to ensure that it acts on the best advice available and that its actions are understood and accepted by those affected. An important part of the effort to achieve this aim is a comprehensive network of more than 100 advisory bodies. These bodies, which include both government em- ployees and members of the public, are a distinctive feature of the system of govern- ment in Hong Kong. Practically all government departments and areas of activity are assisted by advisory bodies of one sort or another.

　　　　　　Advisory bodies may be based on the common interests of a particular locality (as in the case of Mutual Aid Committees or the Rural Committees in the New Terri- tories), or a particular industry (such as the Textiles Advisory Board), or deal with a particular area of community concern (such as the Action Committee Against Narcotics) or of government activity (such as the Transport Advisory Committee). Other examples of such bodies are the Board of Education, the Medical Development Advisory Committee, the Social Welfare Advisory Committee, the Labour Advisory Board, and the Trade and Industry Advisory Board.

Civil Service

The civil service provides the staff for all government departments, sub-departments and other units of the administration. During 1976-7, the civil service began to grow again to enable departments to implement many important government programmes, some of which had been deferred or slowed down during the period of severe con- straint caused by the economic and financial situation of 1974-5. The total number of posts - usually called the establishment - grew from 114,100 on April 1, 1976, to 117,800 on April 1, 1977. Recruitment resumed at an increasingly rapid pace and, during the year, the strength rose from 104,200 to 108,400, of whom 105,800 were local officers.

CONSTITUTION AND ADMINISTRATION

221

This indicates that about one person in every 18 of the estimated adult working population or one in 40 of the total population is employed by the government. There is a large proportion of labouring staff, and 35,800 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 somewhat 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. Elsewhere, 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 (15,700), the Public Works Department (15,600), the Urban Ser- vices Department (18,900) and the Royal Hong Kong Police (20,500) account for a total of 70,700 posts - or about 60 per cent of the total establishment of the service. The service has grown from 17,500 in 1949 to about 69,000 in 1967 and now to more than 108,000. This reflects both the continuing expansion of existing services, in line with the increasing population, and the development of new services to meet changing needs.

　　　　　　The cost of the civil service is reflected in the expenditure on personal emoluments. For the year 1977-8, this is estimated to be about $2,421 million, excluding pensions. This is about 39 per cent of the total estimated recurrent expenditure for the year.

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 are properly utilised and that new posts are provided only when necessary.

　　　　　　Recruitment and promotions in the civil service are, with a few exceptions, subject to the advice of the Public Services Commission. This was set up in 1950 and is in- dependent of the government. The commission also advises the government on dis- cipline cases. There is a 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, accommo- dation, pay, training, discipline and structure of the civil service lies with the Civil Service Branch of the Government Secretariat. Further information on the civil service is given in the annual Report on the Civil Service.

Government Secretariat

The Chief Secretary is the Governor's principal adviser on policy, the chief executive of the government, the head of the civil service and the chief government spokesman. 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 seven 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, Social Services, and

222

CONSTITUTION AND ADMINISTRATION

Monetary Affairs. 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 po- litical aspects of government policies.

London Office

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 commissioner based there is directly responsible to the Chief Secretary. The commissioner provides a point of direct contact in London between Hong Kong and various ministries 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 industrial developments and official thinking on worldwide trade policies, and advises the Hong Kong Government about 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 helps with problems arising from their living 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 in Britain.

The Appointments Division of the London Office is responsible for all government recruitment in Britain. The division also recruits people of Hong Kong origin in the United Kingdom to the public service, and liaises closely with various official bodies in Britain concerned with recruiting expatriate staff.

　　　　　　The London Office is responsible for a training course in Oxford designed for young Chinese administrative officers on probation. They study management, economics and government for one academic year.

In 1977, a subsidiary office was opened in Edinburgh to enable the London Office to develop its welfare and liaison services among the Hong Kong Chinese community in Scotland. The subsidiary office in Liverpool was moved to Manchester to provide a wider coverage of these services in north-west England.

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 responsibili- ties covering all Hong Kong. This form of organisation, rather than one based on authorities with responsibilities for limited geographical areas, is considered to be the most appropriate for this small, compact territory, although there is a necessary regional element in the way in which many departments are organised.

Home Affairs Department

The main function of the Home Affairs Department is to assess the overall impact of government policies and activities - and current affairs - and to advise the government on public opinion trends. The department is expected to stand apart from the main executive machinery of government by keeping in touch with most sectors of the

CONSTITUTION AND ADMINISTRATION

223

population. It maintains close contact with many unofficial bodies, such as the Tung Wah Group of Hospitals, Po Leung Kuk, kaifong associations, district and clansmen associations, Mutual Aid Committees, multi-storey building owners' corporations, and religious and charitable organisations. However, most of its efforts are aimed at maintaining person-to-person contact with the poorer people of Hong Kong, finding out what their problems and needs are, and putting them in direct touch with govern- ment agencies that can help them.

　　　　　　The department runs the City District Office scheme, which was introduced in 1968 to improve communication between the government and people. There are 10 City District Offices and 12 sub-offices in the most crowded urban areas of Kowloon and Hong Kong Island. Throughout the urban areas, these offices provide a point of contact with the government where even the humblest citizen can go for help in the knowledge that he will be courteously treated, patiently heard and helpfully advised. A variety of services is offered, the most well known being the public inquiry service, which dealt with more than 2.5 million inquiries in 1977. This counter service can advise a citizen on almost any aspect of government policy and procedure, provide any forms needed and help fill them in. It also operates a 24-hour weather information service during typhoons when the City District Offices are kept open for people in need.

　　　　　　The City District Officers and their staff see the government at work from the point of the man in the street. They are, therefore, well placed to advise government depart- ments on any deficiencies in departmental services or activities that could cause disruption or inconvenience. They report these deficiencies and friction areas to the government agencies concerned and, if possible, resolve the problem by convening meetings to co-ordinate remedial government action.

　　　　　　Through the City District Office, the office staff and people of each district are involved in community-orientated projects, such as campaigns for fighting violent crime and cleaning the city, and providing recreational and cultural activities princi- pally for young people. It is the responsibility of the City District Officer to co-ordinate this work. They also are involved in the discussion of public affairs through the medium of Area Committees serviced by the City District Officer and his staff.

Much of the communication and community involvement work undertaken by the City District Office is done through a network of Mutual Aid Committees. These were first formed in 1973 to encourage residents of multi-storey buildings to co-operate in tackling common problems of security and cleanliness. At the end of 1977, there were 2,468 of these committees an increase of 252 over the previous year's figure. Furthermore, the scheme has provided 2,073,000 people with a formal- ised system of communication with the government distinct from, and in addition to, the many other channels for complaint or redress of grievance available to every citizen.

Use of the Chinese Language

The steady growth of public business and the consequent increase in correspond- ence between government departments and the public, and the appointment of non- English-speaking persons to serve on advisory boards and committees, has increased the demand for translations and interpretations of a high standard.

224

CONSTITUTION AND ADMINISTRATION

　　　　　　The government's policy is to accord Chinese equal status with English in govern- ment communications with the public and to promote the widest possible use of Chinese in government departments. To ensure conformity with the policy, a pro- gramme of regular inspections of government departments was started in June, 1977, to monitor performance and evaluate the quality of the services provided.

Throughout the year, the Chinese Language Division of the Home Affairs Depart- ment continued to undertake advanced translations of documents of major signific- ance. Assignments included the Governor's policy speech at the opening of the Legis- lative Council; the Financial Secretary's Budget Speech; the Hong Kong Annual Report (Hong Kong 1978); the White Paper on the further development of rehabili- tation services in Hong Kong; the Hong Kong Narcotics Report 1976-7; the Report on the Slope Failure at Sau Mau Ping in August, 1976; the British Nationality Law-Discussion of Possible Changes; the Green Paper on Senior Secondary and Tertiary Education; and other Green Papers.

　　　　　　The division also continued to sponsor a Hong Kong-wide youth cultural and arts competition that included contests in translation, Chinese writing, speech making, inter-school debate, Chinese calligraphy and painting, and radio quizzes on the know- ledge of Chinese philosophy, culture and literature. These contests aim at promoting public interest in the study of the Chinese language and culture, and raising the standards of Chinese among the younger members of the community.

New Territories Administration

The Secretary for the New Territories is generally responsible to the government on New Territories affairs and for the promotion of the welfare of its inhabitants. Working to the secretary are District Officers in charge of the seven geographical districts in the New Territories - Islands, Sai Kung, Sha Tin, Tai Po, Tsuen Wan, Tuen Mun and Yuen Long. The secretary is the land authority in the New Territories, which means that the main executive functions of the New Territories Administration are bound to the allocation, disposal, acquisition and control of land.

　　　　　　　The political role of the Secretary for the New Territories complements that played by the Secretary for Home Affairs in the urban areas. He especially must ensure that government policies and decisions are explained to, and fully understood by, the people affected. To this end, the District Offices are at the core of a well-developed and expanding system of contacts between the people and the government.

　　　　　　　Each of the 651 villages of the New Territories has one or more 'Village Represent- atives' elected or otherwise nominated from among household heads. These villages are grouped into 27 Rural Committee areas, each with its own Rural Committee chairman. The Village Representatives and Rural Committee chairmen maintain a channel of communication between their communities and the District Offices, arbitrate in clan and family disputes, and give advice and help to the people in their villages. The Rural Committees also carry out minor works and other tasks on behalf of the government, receiving a small monthly subvention to help cover expenses. The chairmen and vice-chairmen of the Rural Committees, along with certain other community leaders in the New Territories, form the Heung Yee Kuk or Rural Consultative Council - a statutory body established to advise government on New Territories matters. The Secretary for the New Territories and the Kuk meet regularly

CONSTITUTION AND ADMINISTRATION

225

in open session to discuss problems and policies. Senior members of the Kuk also sit on government sub-committees dealing with land and other policy matters.

With the increasing urbanisation of large areas of the New Territories, especially in the new towns, an increasing number of residents fall outside the scope of the rural representative system. Many new urban-based organisations, such as Mutual Aid Committees and District Fight Violent Crime Committees, have sprung up in recent years and government keeps in close touch with them through the District Offices. In Tsuen Wan, where 70 per cent of the town's population of just on 500,000 lives in public housing, the District Officer's post has been upgraded to that of a Town Manager, who has special responsibilities to build community facilities and community involvement in the new town. Two Town Offices, similar to the City District Offices in the urban areas, have been set up in Tsuen Wan to assist in the community building and involvement process. A Recreation and Amenities (Ad- visory) Committee, with a majority of unofficial membership drawn from a wide cross-section of the local community, was established in 1976 to advise the Town Manager on aspects of the town's development.

　　　　　　　The committee has proved a success, and in his address to the Legislative Council in October, 1977, the Governor announced the formation of advisory boards in all the seven districts of the New Territories to give local advice on the provision and use of recreational and other public facilities. Each board is to be given funds by the government to enable them to promote and support recreational, cultural and other activities in their districts. The boards are not designed to supplant or dispense with the Rural Committees and Village Representatives, but to fill a gap in consultation between the government and the people largely created by the rapid urban develop- ments in the New Territories.

Foreign Relations

The foreign relations of the Hong Kong Government are the responsibility of the British Government, but Hong Kong is permitted a considerable degree of latitude with external trade. 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.

Judiciary

Under powers conferred on the Governor by the Supreme Court Ordinance, 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 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

226

CONSTITUTION AND ADMINISTRATION

legislative 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 Tribunal, the Labour Tribunal, the Lands Tribunal and the Small Claims Tribunal.

Magistrates exercise criminal jurisdiction over a wide range of indictable and sum- mary 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 inquiries to decide whether persons accused of the most serious offences should be committed for trial in 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 trying 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 in Tenancy Tribunal matters, Labour Tribunal matters, and ordinary jurisdiction under the Distress for Rent Ordinance and the Workmen's Compensation Ordinance. Trial in both civil and criminal proceedings 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 1975-7 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.

　　　　　　The Labour Tribunal, which complements the Labour Relations Service of the Labour Department, provides speedy settlements to individual money claims arising from contracts of employment.

　　　　　　　The Lands Tribunal adjudicates on all statutory claims for compensation over 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 established a tribunal with jurisdiction to deal with monetary claims involving amounts not exceeding $3,000. The procedure

CONSTITUTION AND ADMINISTRATION

227

in the tribunal - one on Hong Kong Island and one in Kowloon is simple and informal, and legal representation is not allowed.

Legal Aid

　　　　　Legal aid is available in Hong Kong for both civil and criminal trials and appeals in the Court of Appeal, the High Court and the District Court. Anyone can qualify for legal aid by passing a merits test and a means test.

　　　　　　Aid is provided either free or on payment (usually by monthly instalments) of a prescribed graduated financial contribution depending on the aided person's means.

Administration of the Legal Aid Schemes

The Legal Aid Department, headed by the Director of Legal Aid and staffed by qualified lawyers with supporting staff, administers legal aid. The legislation governing civil legal aid is in the Legal Aid Ordinance, Chapter 91, and regulations made there- under and, for criminal cases, in the Legal Aid in Criminal Cases Rules, Chapter 221. Where aid is granted, cases are assigned either to lawyers in private practice or to professional officers of the department.

Civil Legal Aid Scheme

　　　　　Legal aid is available for most kinds of civil proceedings and appeals. To qualify for aid, an applicant must satisfy the director that he has a reasonable chance of succeed- ing in his case, and his monthly disposable income and disposable capital must not exceed $1,000 and $10,000 respectively. In calculating disposable income and dispos- able capital, allowances are made based on the number of dependants and domestic rent paid by the applicant. A person with a gross monthly income and capital con- siderably above the figures mentioned may therefore qualify for aid under this scheme.

　　　　　　Most legally-aided civil cases fall into one of the following categories: matrimonial proceedings; wages claims involving bringing bankruptcy or company winding-up proceedings; workmen's compensation applications; claims for damages for personal injury or death in traffic or industrial accidents; and tenancy matters. In the past 12 months, about $18 million in damages, workmen's compensation and maintenance has been awarded and recovered for aided persons.

Criminal Legal Aid Scheme

Legal representation is available for all trials in the High Court and for trials in the District Court where the maximum penalty for the offences charged is not less than 14 years' imprisonment, thus applying to about 70 per cent of all District Court criminal cases. The extension of aid to cover all District Court cases is under con- sideration. Aid also is available for criminal appeals from all trial courts.

　　　　　　The means test limits for legal aid for criminal cases are a monthly disposable income and disposable capital not exceeding $1,500 and $10,000 respectively. As in the civil legal aid scheme, allowances are made in calculating an applicant's dis- posable income and disposable capital. Most applicants aided under this scheme are eligible for, and given, free legal aid. During the past 12 months, 1,014 defendants and appellants have been aided under this scheme.

228

Legal Representation

CONSTITUTION AND ADMINISTRATION

　　　　Legally-aided persons are represented by solicitors and barristers in private practice, or by departmental lawyers who brief barristers in private practice for advocacy work in civil cases wherever it is normal practice for barristers to appear. Barristers in private practice are briefed in all criminal cases.

The Cost of Legal Aid

Aided persons with an annual disposable income and disposable capital not exceed- ing $4,000 and $3,000 respectively receive legal representation free of charge. Those with higher disposable income and disposable capital pay graduated contributions towards their legal costs, usually by monthly instalments. In civil cases, these con- tributions are often refunded if the aided person wins and the department can recover costs from the losing side.

Fees of barristers and solicitors in private practice who act in legal aid cases are paid by the Legal Aid Department. The total approved expenditure for the financial year 1977-8 is $4.2 million for civil cases and $2.8 million for criminal cases.

The Benefits of Legal Aid

Civil legal aid is essential so that people who cannot afford the high cost of litigation in Hong Kong have access to the courts and can meet the opposing party there on equal terms.

It enables people to appreciate the advantages of using the established judicial system and it reduces the chances of people taking the law into their own hands.

In many instances, it ensures, for example, that women whose marriages have broken up receive from their husbands financial support for themselves and their children, and that accident victims are compensated.

In criminal cases involving the possibility of heavy sentences, it is clearly in the interests of justice that defendants and appellants are legally represented. It also is of considerable assistance to the court.

On June 1, 1977, the means test limits for civil legal aid were raised to their present levels. As a result, an increase in the number of applications for aid is expected. Additional professional posts have recently been approved to cope with this increase, to provide a task force to deal with the most urgent and complex cases of the Litiga- tion Section, and to act as a leave reserve. Law clerks and other supporting staff also will be recruited in the near future.

　　　　　　A branch office of the department will soon be opened in the Mong Kok district of Kowloon.

Following the expansion and improvement of legal aid services in 1977, about 67 per cent of the total population of more than 4.5 million now come within the scope of the legal aid schemes.

APPENDICES

Appendices

1 2 3 4

Units of Measurement

Overseas Representation

Hong Kong's External Trade by Major Trading Partners Hong Kong's External Trade by SITC Commodity Section/

Division

232

233

234

235

Exchange Value of the Hong Kong Dollar

238

Expenditure on the Gross Domestic Product at Current Market

Prices

239

Expenditure on the Gross Domestic Product at Constant Market

Prices of 1966

239

Government Revenue and Receipts by Source

240

Government Revenue and Receipts by Source (Chart)

241

Government Expenditure by Function

242

Government Expenditure by Function (Chart)

243

Comparative Statement of Recurrent and Capital Income and

Expenditure

244

Revenue from Duties

246

Licence Fees under the Dutiable Commodities Ordinance

246

Miscellaneous Fees (Commerce and Industry)

246

123

Money Supply

247

Banking: Liabilities and Assets

247

Number of Establishments and Employment in Manufacturing

Industry Analysed by Main Industrial Groups

248

Number of Establishments and Employment in Selected

249

Manufacturing Industries

Reported Occupational Accidents

250

Consumer Price Index (A)

251

Consumer Price Index (B)

251

Hang Seng Consumer Price Index

251

Estimated Local Production of Crops, Livestock, Poultry and Fish

252

Local Production and Imports of Ores and Minerals

252

Imports of Crops, Livestock, Poultry and Fish

253

Categories of Registered Schools

254

School Enrolment

254

Overseas Examinations

254

231

223

2 2 2 2 28

Hong Kong Students in Britain

255

Students leaving Hong Kong for Overseas Studies

255

Expenditure on Education

255

Vital Statistics

256

Causes of Death

256

Hospital Beds

257

Professional Medical Personnel

257

Number of Quarters and Estimated Persons Accommodated as at

258

March 31, 1977

Land Office

259

Considerations in Instruments Registered in Land Office

259

30%

Traffic Accidents

260

Traffic Casualties

260

Crime

260

Cases in the Supreme Court, District Court, Tenancy Tribunal,

263

Labour Tribunal and Lands Tribunal

Work in the Magistracies

263

Prisons

264

Electricity Consumption, 1977

264

Electricity Distribution

264

Gas Consumption and Distribution

264

Water Consumption

264

International Movements of Aircraft and Vessels

265

International Movements of Passengers

265

International Movements of Commercial Cargo by Different

265

Means of Transport

Registered Motor Vehicles

266

Public Transport: Passengers Carried by Undertaking

266

Public Transport: Passengers Carried by Area

266

Public Transport: Daily Average Number of Passengers Carried

by Different Modes of Transport

266

Communications

267

Recreational Facilities Provided by the Urban Council and

267

Urban Services Department

Climatological Summary, 1977

268

Climatological Normals

268

The Executive Council

-269

The Legislative Council

270

Urban Council

272

The Hong Kong Council of Social Service

273

The Community Chest of Hong Kong

274

232

Appendix 1

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 1 ounce.

Chinese Units

Length

10 fan

Metric equivalents

1 tsün (Chinese inch)

37.147 5 mm

10 tsün

- 1 chek (Chinese foot)

0.371 475 m

Mass

10 fan (candareen)

= 1 tsin (mace)

10 tsin

- 1 leung (tael)

3.779 94 g

37.799 4 g

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.

Appendix 2

Overseas Representation

I. Commonwealth Countries

233

Countries

Represented by

Australia

Commissioner

Countries Mauritius

Represented by

Honorary Consul

Bangladesh

Trade

Nauru

Honorary Consul

Commissioner

New Zealand

Commissioner

Canada

Commissioner

Nigeria

Commissioner

India

Commissioner

Singapore

Commissioner

Malaysia

Commissioner

(There also is a British Senior Trade Commissioner)

II. Foreign Countries

Countries

Represented by

Countries

Represented by

Argentina

Consul-General

Italy

Consul-General

Austria

Consul-General

Japan

Consul-General

Belgium

Consul-General

Jordan

Honorary Consul

Bolivia

Honorary Consul

Korea

Consul-General

Brazil

Consul-General

Lebanon

Honorary Consul

Burma

Consul-General

Liberia

Honorary Consul

Colombia

Consul-General

Mexico

Consul-General

Costa Rica

Consul-General

Monaco

Honorary Consul

Cuba

Consul-General

Netherlands

Consul-General

Denmark

Honorary

Nicaragua

Honorary Consul

Consul-General

Norway

Consul-General

Dominican Republic

Consul-General

Pakistan

Consul-General

Ecuador

Honorary Consul

Panama

Consul-General

Egypt, Arab

Consul-General

Peru

Consul-General

Republic of

Philippines

Consul-General

El Salvador

Honorary Consul

Portugal

Consul-General

Finland

Honorary

Republic of South

Consul-General

Africa

France

Consul-General

Spain

Consul-General

Germany

Consul-General

Sweden

Consul-General

Greece

Honorary

Switzerland

Consul-General

Thailand

Consul-General

Guatemala

Honorary Consul

Turkey

Consul-General

Indonesia

Consul-General

United States of

Consul-General

Iran

Consul-General

America

Irish Republic

Honorary Consul

Uruguay

Consul-General

Israel

Honorary

Consul-General

Venezuela

Consul-General

234

Appendix 3

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by Major Trading Partners

Imports

1975

1976

1977

Source/destination

$ million

Per cent

$ million

Per cent

million

Per cent

1976-7

change in

per cent

Japan

6991

20.9

9 348

21.6

11 547

23.7

++-23.5

China

6805

20.3

7761

17.9

8 082

16.6

+ 4·1

United States

3961

11-8

5 309

12.3

6093

12.5

+-14-8

Taiwan

1943

5.8

3 057

7.1

3 254

6-7

+ 6·4

Singapore

1921

5.7

2517

5.8

2 888

5.9

+14-8

Britain

1715

5.1

1 833

4.2

2 192

4-5

+19.6

Republic of Korea (South Korea)

935

2.8

1 636

3.8

1 682

3.5

+ 2.8

Germany, Federal Republic

1 034

3.1

1 309

3.0

1 463

3.0

+11.7

Switzerland and Liechtenstein

943

2.8

1 140

2.6

1 292

2.7

+13.3

Australia

742

2.2

929

2.2

956

2.0

+ 3·0

Others

6481

19.4

8 454

19.5

9 252

19.0

+ 9.4

Merchandise total

33 472

100.0

43 293

100-0

48 701

100-0

+12.5

Domestic Exports

United States

7 334

32.1

11236

34.4

13 552

38.7

+20.6

Germany, Federal Republic

2860

12.5

3995

12.2

3 669

10.5

8.2

Britain

2778

12.2

3286

10.1

3 035

8.7

7.6

Japan

956

4-2

1 400

4.3

1386

4.0

- 1.0

Australia

1 034

4-5

1 368

4.2

1 247

3-6

8.8

Canada

775

3.4

1396

4.3

1 171

3.3

- 16.1

Singapore

624

2.7

782

2.4

904

2.6

+15.5

Netherlands

496

2.2

756

2.3

763

2.2

+1.0

Sweden

471

2.1

713

2.2

600

1.7

-15.9

Switzerland and Liechtenstein

Others

410

1.8

663

2.0

572

1.6

-13.7

5 123

22.4

7 034

21.6

8 105

23.2

+15.2

Merchandise total

22 859

100.0

32 629

100.0

35 004

100.0

+ 7.3

Re-exports

Japan

964

13.8

1 500

16.8

1 339

13.6

-10-7

Singapore

928

13.3

938

10.5

1 063

10.8

+13.3

Indonesia

589

8.5

708

7.9

1 059

10.8

+49.6

United States

555

8.0

855

9.6

883

9.0

+ 3.3

Taiwan

600

8.6

815

9.1

872

8.9

+ 7·0

Republic of Korea (South Korea)

286

4.1

385

4.3

456

4.6

+18.3

Thailand

247

3.5

386

4.3

360

3.7

6.8

Philippines

231

3.3

278

3.1

331

3.4

+18-7

Macau

211

3.0

282

3.2

318

3-2

+12.5

Australia

173

2.5

252

2.8

222

2.3

- 12.0

Others

2190

31.4

2 528

28.3

2926

29.8

+15-7

Merchandise total

6973

100.0

8 928

100.0

9 829

100.0

+10-1

Appendix 4

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by SITC Commodity Section/Division

Imports

235

Section/division

1975

1976

$ Million 1977

Food

Live animals

Meat and meat preparations

Fish and fish preparations

Cereals and cereal preparations Fruit and vegetables

Others

Sub-total

1 149

1 201

1 232

675

837

896

662

880

987

1 087

1 010

967

1 267

1 387

1 626

1273

1 371

1 521

6 113

6 687

7 230

Beverages and tobacco

Beverages

Others

318

368

410

265

365

326

Sub-total

583

733

736

Crude materials, inedible, excluding fuels

Wood, lumber and cork

123

190

210

Textile fibres and their waste

1 523

1976

1 738

Crude animal and vegetable materials, n e s Others

616

818

1 063

239

343

311

Sub-total

2 500

3 328

3322

Mineral fuels, lubricants and related materials

Petroleum and petroleum products

2 048

2 589

2907

Others

Sub-total

Animal and vegetable oils and fats

Fixed vegetable oils and fats

Others

Sub-total

2126

2 680

2995

210

212

247

213

217

251

Chemicals

Dyeing, tanning and colouring materials

477

708

598

Medicinal and pharmaceutical products

412

514

623

Plastic materials, regenerated cellulose and artificial resins Others

702

1011

1 042

905

1 187

1 370

Sub-total

2 496

3 419

3 633

Manufactured goods classified chiefly by material

Paper, paperboard and manufactures thereof

710

975

995

Textile yarn, fabrics, made-up articles and related products Non-metallic mineral manufactures, n e s

4 792

6 632

6 539

2 186

2 673

3 283

Iron and steel

713

1 143

1 369

Others

1 427

1944

2 280

Sub-total

Machinery and transport equipment

Machinery, other than electric

Electrical machinery, apparatus and appliances Others

Sub-total

9 828

13 367

14 466

2015

2 606

2 859

2 885

4 341

5 023

743

754

1 448

5 643

7701

9 331

Miscellaneous manufactured articles

Clothing

Professional, scientific and controlling instruments;

photographic and optical goods; watches and clocks Miscellaneous manufactured articles, nes

Others

Sub-total

518

710

954

1 828

2 353

3 159

1 168

1537

1 890

379

474

3 892

Commodities and transactions not classified according to kind Total merchandise

33 472

Transactions in gold and current coin

Grand total

548

34 020

2284

45 577

5 075

43 293

652

6 655

48 701

626

49 327

236

Appendix 4

· Contd (Chapter 2: Industry and Trade)

Domestic exports

Section/division

Food

Fish and fish preparations

Fruit and vegetables

Miscellaneous food preparations

Others

Sub-total

Beverages and tobacco

Tobacco and tobacco manufactures Others

Sub-total

1975

1976

$ Million 1977

183

351

384

638+

101

351

།སྦ། ཆ།ཆ།

བྷ」 །༄」

Others

Crude materials, inedible, excluding fuels

Pulp and waste paper

Metalliferous ores and metal scrap

117

142

160

Crude animal and vegetable materials, nes

105

Others

Sub-total

215

296

380

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

55 84

Sub-total

192

235

Manufactured goods classified chiefly by material

Textile yarn,

fabrics, made-up articles and related products

2 145

3 051

Non-metallic mineral manufactures, n e s

174

207

Iron and steel

Manufactures of metal, n es

605

19 844

Others

139

188

Sub-total

3 079

4308

Machinery and transport equipment

Machinery, other than electric

Electrical machinery, apparatus and appliances

Others

Sub-total

Miscellaneous manufactured articles

487 2787

543 4 196

3 332

4 791

　　　　　　　Sanitary, plumbing, heating and lighting fixtures and fittings Travel goods, handbags and similar articles

251

336

455

690

Clothing

10 202

14 288

Footwear

256

341

Professional, scientific and controlling instruments;

　　　　　　　　　photographic and optical goods; watches and clocks Miscellaneous manufactured articles, nes

893

1 570

Others

3 357 151

4 870

228

Sub-total

Commodities and transactions not classified according to kind

15 565

22 322

Total merchandise

22 859

32 629

35 004

Transactions in gold and current coin

Grand total

22 859

32 629

35 004

*Less than HK$0.5 million.

༄ ཀྑཎ」8། དྷཱུཏིཀི83」ུ」 བྦཱནཾ། ཆོ=བྷཱ བྷཱབྷུདྷ བྷཱཐ

Appendix 4

- Contd (Chapter 2: Industry and Trade)

237

Re-exports

Section/division

1975

1976

$ Million 1977

Food

Fish and fish preparations

145

223

227

Cereals and cereal preparations

Fruit and vegetables

188

232

243

Coffee, tea, cocoa, spices and manufactures thereof

350

240

Others

125

Sub-total

559

928

823

Beverages and tobacco

Beverages

Others

22 71

Sub-total

108

Crude materials, inedible, excluding fuels

Wood, lumber and cork

Textile fibres and their waste

279

236

Crude animal and vegetable materials, nes

360

538

544

Others

Sub-total

538

910

877

Mineral fuels, lubricants and related materials Petroleum and petroleum products

118

159

Others

Sub-total

121

163

Animal and vegetable oils and fats

Chemicals

Chemical elements and compounds

143

151

197

Dyeing, tanning and colouring materials

252

339

323

Medicinal and pharmaceutical products

258

356

366

Plastic materials, regenerated cellulose and artificial resins Others

163

245

287

Sub-total

902

1 169

1267

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

790

958

1 192

1 132

1 351

1 247

Manufactures of metal, nes

101

123

158

Others

173

174

206

Sub-total

Machinery and transport equipment

Machinery, other than electric

Electrical machinery, apparatus, and appliances Others

Sub-total

Miscellaneous manufactured articles

2 259

2677

2 882

480

491

611

451

635

817

104

215

1035

1210

1643

Clothing

216

289

309

Professional, scientific and controlling instruments;

　　　　　　　　　photographic and optical goods; watches and clocks Miscellaneous manufactured articles, n es

841

918

1 092

341

434

459

Others

112

176

Sub-total

1 485

1752

2 036

Commodities and transactions not classified according to kind

Total merchandise

6973

8 928

9 829

Transactions in gold and current coin

1 623

240

Grand total

8 596

9168

9 841

238

Appendix 5

(Chapter 3: Financial Structure)

Exchange Value of the Hong Kong Dollar

Par value of

December 18, 1946

IMF parity established

the HK$ in

grams of

fine gold, as

HK$1=

£1=

US$1=

SDRI=

reported to

the IMF

US$

SDR

HK$

0.223 834

0.062 5

0.251 9

16.00

3.970 22

September 18, 1949

Hong Kong dollar devalued by 30.5% pari passu with the pound sterling

0.155 517

0.062 5

0.175

16.00

5.714 29

November 20, 1967

　　　　　　　Hong Kong dollar devalued by 14.3% pari passu with the pound sterling

0.133 300

0.062 5 0.15

16.00

6.666 67

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

0.146 631

0-068 75

0.165

14-5455 6.060 61

0.146 631

0.068 75

0.179 14

0.165

14.545 5 5.582 13

6.060 61

July 6, 1972

　　　　　　　Following the floating of the pound sterling in June 1972, the Hong Kong dollar was pegged to the US dollar

0.146 631*

0.17699

0.163 018

5.65

6.134 29

February 14, 1973

Following the US dollar devaluation,

the US$/HK$ central rate was adjusted 0.146631*

0-196 657 0.163 018

5.085

6.134 29

November 26, 1974

Hong Kong dollar allowed to float,

ie 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

0.146 631*

*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

239

$ Million

GDP component

1974

1975

1976*

Private consumption expenditure

26 520

28 505

33 102

Government consumption expenditure

2493

2711

3 120

Gross domestic fixed capital formation

Increase in stocks

7683

7798

9 727

352

138

674

Exports less imports of goods and services

-1796

-1884

706

Gross domestic product at current market prices

35 252

37268

47 329

Less indirect taxes less subsidies

1749

2096

2655

Gross domestic product at current factor cost

33 503

35 172

44 674

Expenditure on the Gross Domestic Product

at Constant Market Prices of 1966

Private consumption expenditure

Government consumption expenditure

Gross domestic fixed capital formation

Increase in stocks

Exports less imports of goods and services

16475

17062

19 197

1385

1451

1 570

4175

4062

4793

145

130

336

-2523

-2475

-2241

Gross domestic product at constant market prices

19 657

20 230

23 655

* Provisional estimate.

240

Appendix 7

(Chapter 3: Financial Structure)

Government Revenue and Receipts by Source (note 1)

(See also Appendix 7a)

Actual 1975-6

Actual 1976-7

$ Million

Estimate 1977-8

Recur-

Item

rent Capital Total

rent Capital

Total

rent Capital

Total

Direct taxes

Earnings and profits tax

2234.0

Estate duty

Sub-total

2 234.0

64.6

64.6 2298.6

2 234.0 64.6

2 698.7

85.2

85.2 2783-9

2 698.7 85.2

2926.0

2926.0 88.0 88.0

2 926.0

88.0 3 014-0

Indirect taxes

General rates

534.4

534-4

618-7

721.0

Excise duties

558.3

680.7

680-7

730.1

730-1

Royalties and concessions

101.6

113.1

117.9 110.0

227.9

Stamp duties

Other taxes (note 2)

Sub-total

382.6

427.7

427-7

445-0

445.0

237-7

237.7

404.6

437.0

437-0

1 814.6

1814.6

2 244.8

2 451.0

110.0 2561-0

Other revenue

Fines, forfeitures and penalties

Licences

Provision of goods and services

54-7

219.5

70-5 240.0

73.5 269.5

73.5 269-5

924.9

1 089.5

1089.5

1 144-7

Income from properties and investments

466-7 345.9 812.6

368.3

557-3 925:6

334.6

736-0 1070.6

Sub-total

1665-8 345-9 2011-7

1 768-3

557.3 2325-6

1822-3 736-0 2558-3

　　　　　　　　Reimbursements, contributions and loan repayments

Reimbursements

Contributions

Loan repayments

Sub-total

Grants and loans

Grants

Loans

Sub-total

Total

96.8

101.4

103.3

32.2

36.2

36.3

1.7

1-7

1.6

129.0

1.7

130-7

137.6

1.6 139.2

139.6

1.6 141.2

1.4

262.5

Development loan fund receipts

Land sale premia, Kwun Tong reclamation Loan repayments

263.9 263.9

5 843-4 676-1 6519-5 6 849.4 644-1 7493-5

7338.9

935-6 8274-5

0.5

0-5

0.2

17.4

23.8

23-8

0-1 23.8 23.8

0.1

Interest on investments and loans

50.0

43.0

65.2

Transfer from Revenue Reward Fund

3-3

3.3

0.2

0.1

Transfer from General Account

125.0

Realisation of investments

0.4

Sub-total

50.0

146.6 196.6

43.0

24.2

67.2

65.2

24.0

89.2

Lotteries fund receipts

Net proceeds from Government lotteries

5.8

12.2

5.4

Loan repayments

0.6

0.7

0.9

Interest

1.5

1.0

1.1

Other

0.6

1-2

1.2

0.8

Sub-total

7.9

0.6 8.5

14.4

0.7 15.1

7.3

0.9

8.2

Grand total

5 901.3 823-3 6724-6

6 906.8

669.0 7575-8 7411.4 960-5 8 371-9

Note: 1 Government revenue excludes the income of the Housing Authority and the Urban Council.

2 Other taxes comprise taxes on bets and sweeps, entertainment, hotel accommodation and motor vehicles.

Appendix 7a

Government Revenue and Receipts by Source

HKS milion

9 000

8 000

7. 000

Actual

6 000

$ 000

$2 299

$2 784 million 37%

million 34%

4 000

3.000

$1 815 million 27%

$2 245 million 30%

2 000

1.000

Actual

$3 014 million 36%

$2 561 million 31%

Estimate

$2 611 million

$2 547 million

$2.797

million

39%

33%

1975-6

1976-7

1977-8

Direct taxes

Indirect taxes

Other

revenue

241

242

Appendix 8

(Chapter 3: Financial Structure)

Government Expenditure by Function (note 1) (See also Appendix 8a)

Item.

General services Administration

Law and order

Defence

Primary products

Airport and harbour

Commeren and industry

Communications

Other

Sub-total

Community services

Water

173-2 - 312-6_485-8

$ Million

Aerial 1975-6

Actual 1976-7

Estimate

1977-8

Recur

Recta

Recur.

rent Capital Total

109:5 10-8 120-3 396-1

60-4

40-2 48.3 116-7

637-0

704-8

212-1

127-5 12.1 140-3

59-2 40-5 252-6

157-3

179-8

764-0

829-4

952-0

267-5 9.0

366-5

Public relations

Revenus collection and foancial control

Sub-total

Acpnomic services

23.3

0-8 24-1 88.5

30-7

8-5 39.2

42-7 2:8

45.4

106-1

0.4 106-5

123-7 2-9 126-6

886-T 100-5_9866

11812

121-4 1302-6

1420-6 249-8 1 670-4

31.1

3.5'

35-9

1.7

37-6

43-0

23-6 66-6

36-8

€2.5

61-6

66-0

127-

70-3 72-0 142-3

21-2

0-5

25-1

0.1

25.9

31-9

0-8 32-7

189-1

$8-3-247-4

201.6

36-8

238-4

225.7

59-1

283.8

107.4 22-1

122-2

2-6

191-9

2.4

154-3

405-4 146-9 552-5

447-1 113-2

522-8 156-9

679-7

Transport, roads and civil engineering (nate 2) 192-4 447-4 639-8

203-6

535-0_738-6

191-1 771:8 962-5

433.5

Fire Services

80-2

9-890-0

Amenities and related services

48-7

57.6

Sub-totul

494-5 778-7 1 273-2

182-4 294-1 476-5 91.3 9.1 100-4 75.3 40-3 115-6 552-6=-878-5 1431-1

Social Services

Education

1 121-0

147-1 1268-1.

1319-6

Medical and health

550.3

11-6-361-9

633-7

1465

83-1 1 402-7

643-2› ̧

1 507-0

714-5

Housing

101-6

937-3 ` -438-9′′

97-6

119.9 ~217-4

112-7

238-5 195-0 102-1 44-0

71-6 $5-1 126-7 603-3 1065-9 1 669-2

151-6 1 628-6

66-0 780-1 231-6 344-3

146-1

Social welfare (none 3)

348-4

-3-5351-9

356-3

2-8 359-1., ' 425-7

7.4433-1

Labour

16-7

19-6

27-0 0-6 27.6

Sub-total

2 138-0

2637-5

2426-8 230-3 7647-1

2786-9

457-2 3 244-1

Cononon samparting services.

Government launches and dockyard

20-4

24-3

.1-9 26-2

23-0 4-2

Governmmt printing

22-4

20-7

0-3... 21-0

23-3

Government supplies

1.5 7.9

21-4

Building development and electrics

mechanical engineering offices'

179-0

25-2 204-2

198-7

་

164 · 215-1

293-3

22-7

316-0

Sub-total

214-4

31-0 245-4

250-1

20-1 270-2

361-4

31.2

392-6

Unallocable expenditure

Government quarters

28-0 23:7 51-7

30-6

7.9. 38-5

42-7

24-1

66-8

Passages, telephones telegracia, etc

116-1

Sub-total

144-1

0:3 1164.

24-0 168-1 151.7

121-1

2.5. 123-6

249.7

10-5 260-2

10-4 162-1

292-4

34-6 327-0

Other financial obligations

Public debt

Pensions and granities

1-6 1.5 165-8

Sub-total

167-4

165-8

168-

20-1 193-8

3-6

PRO

23-7 193.8

19-8 229.

13.3 33.1

229.1

213.9

3.6 217-5

249-9 13.3 262-2

Tomi

Development loan find expenditure

450-1 | 582-3 6 032-2

5 223-4 1367·5_6590-9

236-3 2008-9 8245-2

Economic services

Social servion

Sub-total

Lotteries find expendinre

Social welfare grants and loans

Grand total

1-0 39-8

10.1 10-1

53-5 53.5

32-3

102-4 102-4

42.4

185-9 155-9

7.3

4.450-1. 1630-2 €080-3

5223-4 1415-9 6639-3

2-4 6236-3 2167-2·8 403-6

2.4

Note: 1 Government expenditure exaludes the expenditure of the Housing Authority and the Urban Council.

2. Excluding civil engineering works directly allocable to other services. 3 Including expenditure on disability and infirmity allowance.

Appendix 8a

Government Expenditure by Function

HK$ milion

9 000

8 000

7 000

Actual

6 000

5 000

$2 647 million 40%

Actual

$3 244 million 39%

Estimate

Social services

General services

243

4 000

$2 637

million 44%

$1 671 million 20%

3 000

$1 303 million

5987 million 16%

20%

Community services

$1 669

million

2.000

20%

$1 273

$17431

million

21%

22%

$680 million

Economic services

$553

$560

1 000

million

$630

million

10%

$698 milton 10%

$1 140

Other expenditure

million 13%

1975-6

1976-7

1977-8

244

Appendix 9

(Chapter 3: Financial Structure)

Comparative Statement of Recurrent and Capital Income and Expenditure

245

$ Million

Actual 1975-6

Actual Estimate 1976-7

Actual

Estimate

1975-6

1976-7

1977-8

Recurrent Account

Direct taxes

Personal emoluments

1 781.5

2135.0

2421.0

Earnings and profits tax

2234-0

2 698-7

2926-0

Departmental recurrent expenditure

781.2

793.8

991.3

Indirect taxes

Public Works Recurrent

277.4

287.1

360.4

Duties

558-3

680-7

730-1

Subventions

949.5

1 121.7

1 295.5

General rates

534-4

618-7

721-0

Internal revenue (note 1)

571-5

730-3

762-0

University and Polytechnic Grants Committee

216.8

255.4

293.9

Motor vehicles taxes

48-8

102.0

120-0

Defence

51.4

194.8

252.6

Franchises

50-9

51.3

57.9

Airport concessions

50-7

61.8

60.0

Pensions

165.8

193.9

229.1

Other revenue

Miscellaneous

226.5

241.7

392.5

Fines, forfeitures and penalties

54-7

70-5

73-5

Transfer to Capital Account

906.0

723.4

1073.3

Licences (note 2)

218-7

237-0

267-4

Foes and receipts

339-0

417-4

459-4

Surplus

487.3

902.6

29.3

Revenue from properties and investments

411-5

322-9

289-8

Reimbursements

130-7

140-0

142.0

Water

187-3

222-2

250-2

Postal services

250-5

288-0

249.7

Airport and air services

167.8

175.2

186-6

Kowloon-Canton Railway

34-6

32-7

43.3

5843-4

6849-4

7338-9

5 843-4

6849.4

7338.9

Capital Account

Direct taxes

Estate duty

Indirect taxes

Taxi concessions

Other revenue

Capital Account

Public Works Programme (other than New Towns and

Housing)

64.6

85.2

88-0

Building

116.4

143.7

226.8

Engineering

308.8

254.9

369.2

110-0

Waterworks

295.6

268.4

147.0

Public Works Non-recurrent: Headquarters

38.2

60.1

90.1

Land sales

345-9

Loan repayments

1-7

557-3 1.6

736-0

1.6

Public Works Programme (New Towns and Housing) Transfer to Development Loan Fund for Housing Authority

387.8

400.9

631.0

125.0

Loans and grants

263-9

Transfer to Home Ownership Fund

102.5

Deficit on Capital Account met by transfer from Revenue

Account

Other capital expenditure

906-0

723.4

1073-3

Subventions

44.3

32.1

88-3

University and Polytechnic Grants Committee

92.6

40.1

57.0

Departmental special expenditure

69.3

74.4

158.3

Defence Cost Agreement: Capital works

44·4

22.0

28.3

Miscellaneous (including public debt)

59.7

70.9

110.4

1582.1

1367.5

2008-9

1582-1

1367-5

2008-9

Note: 1 Compriting taxes on bots and sweeps, entertainment, hotel accommodation and stamp duties,

2 Including business registration fees,

246

Appendix 10

(Chapter 3: Financial Structure)

Revenue from Duties*

Item

Import duty on

Actual

Estimate

1975-6 $

1976-7

1977-8

Hydrocarbon oils

141 683 897

188 522038

202 000 000

Intoxicating liquor

168 275 456

202 765 090

215 000 000

Liquor other than intoxicating liquor

3 241 010

Tobacco

217 865 907

3971 171

250 381 960

5 000 000

268 000 000

Duty on

Locally manufactured liquor Methyl alcohol

27 229 599

34874088

145 873

40 000 000

143 000

Total

558 295 869

680 660 220

730 143 000

* 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

200933

4 641 395

833 242

4662

213 653

4682043

817031

11 592

220 000

4743 000

820000

3000

5 680 232

5724319

5786000

Miscellaneous Fees (Commerce and Industry)

Denaturing

Bonded warehouse supervision

Total

214514

425 587

260000

1617817

1968 818

1995 000

1832331

2394 405

2255 000

Appendix 11

(Chapter 3: Financial Structure)

247

Money Supply

$ Million

As at end of year

1975

1976

1977

Legal tender coins and notes in circulation

Commercial bank issues (A)

The Hongkong and Shanghai Banking Corporation

3316.00

3942.00

4729.00

The Chartered Bank

723.76

785.03

1000-48

Mercantile Bank

28.64

29.47

29.14

Government issues (B)

One-thousand-dollar gold coins

19.97

35.46

58.23

Five-dollar coins

45.00

115.50

Two-dollar coins

30.50

46.50

64.50

One-dollar coins

170-89

161.37

192.82

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)

48413.07

18081-21

58 450-21

* Figures revised due to deposits at 7 days' notice or less previously included under demand deposits are now included

under time deposits.

Appendix 12

(Chapter 3: Financial Structure)

136.54

131.48

164.77

0-71

0.76

0.77

7760.00*

9667.00*

12650.00

15780.00*

18423.00*

19616.00

12803.00

15940.00

20 753.00

775.00

794.00

924.00

11412.01*

14050-07*

39 995.01

Banking: Liabilities and Assets

$ Million

1975

As at end of year 1976

Number of licensed banks

1977 74

Liabilities

Deposits:

Demand

Time

Savings

7760*

9667*

12650

15780*

18423*

19616

12803

15940

20753

Amount due to banks abroad

21 243

27 598

36850

Other liabilities

Total liabilities

Assets

8011

8170

10497

65 597

79 798

100 366

Cash (legal tender notes and coins)

775

794

924

Amount due from banks abroad:

Demand and short term claims Time deposits

19044

22448

2001

3 301

28952 5 200

Abroad

Loans and advances:

Hong Kong

Investments:

Hong Kong

Abroad

Other assets:

Hong Kong

24998

29 480

10077

13 255

36856 18793

2891

3251

3836

101

Abroad

Total assets

3 525 2236

65 597

3 666

4218

3 529

1 486

79 798

100 366

* Figures revised due to deposits at 7 days' notice or less previously included under demand deposits are now included

under time deposits.

248

Appendix 13

(Chapter 4: Employment)

Number of Establishments and Employment in Manufacturing Industry Analysed by Main Industrial Groups

Establishments

Persons engaged

Industry

Food products

Beverages

Tobacco

Dec 1975 Dec 1976 Dec 1977

1 114

1 190

1 117

14 347

15 209

15 274

2 682

2958

3 260

795

784

774

Textiles

3411

3902

3 721

112922

115 912

102 461

Wearing apparel, except footwear

7073

8 622

8714

238 958

265 913

251 273

Leather and leather products, except footwear

and wearing apparel

168

138

132

2 462

2.359

2075

Footwear except rubber, plastic and wooden

footwear

450

468

452

4 335

4976

5 001

Wood and cork products, except furniture

1 159

1 223

1288

7 595

7 691

7 868

Furniture and fixtures, except primarily of metal

1 178

1236

1 299

7 534

8 494

8 732

Paper and paper products

915

1 009

1 086

7 442

9 002

9 619

Printing, publishing and allied industries

1 578

1 881

2 062

19 812

22 353

22 091

Chemicals and chemical products

420

439

447

5 197

5 534

5 822

Products of petroleum and coal

Rubber products

336

359

372

6 101

6312

5 394

Plastic products

3 437

3 844

3 995

63 706

76994

78 449

Non-metallic mineral products, except products

of petroleum and coal

274

303

332

3 347

3 947

4 056

Basic metal industries

251

302

326

3 106

3 807

4 100

Fabricated metal products, except machinery

and equipment

4974

6 113

6481

57 322

69 781

70931

Machinery except electrical

1 228

1 354

1386

11926

11971

11967

Electrical machinery, apparatus, appliances and

supplies

891

1 228

1 332

66 353

88 057

89 525

Transport equipment

217

248

270

11 133

11 810

12 205

Professional and scientific, measuring and

controlling equipment, and photographic and optical goods

318

442

470

13 177

18 449

20 635

Other manufacturing industries

1 609

1968

2251

18 590

21 415

23 572

Total

31 034

36 303

37 568

678 857

773 746

755 108

Note: Figures refer to all manufacturing establishments known to the Census and Statistics Department, including those

registered with or recorded by the Labour Department.

Appendix 14

(Chapter 4: Employment)

　　　　Number of Establishments and Employment in Selected Manufacturing Industries

249

Establishments

Persons engaged

Industry

Textiles

Dec 1975 Dec 1976 Dec 1977

Bleaching, dyeing and finishing

520

640

603

16 123

17 720

16994

Cotton knitting

258

329

299

6225

7 086

6 052

Cotton spinning

21 040

20 464

18 892

Cotton weaving

340

418

382

29 967

32 769

25 167

Made-up textile goods except wearing apparel

360

408

389

4 722

4 743

4461

Wool spinning

1 522

1 478

1 538

Woollen knitting

1 049

1 098

1 046

18 388

16 789

15 796

Wearing apparel, except footwear

Garments

5 370

6 596

6 519

Gloves

291

354

374

189 661 10 029

211 098

198 519

12 256

11 395

Footwear except rubber, plastic and wooden

footwear

Shoes

415

422

395

3 840

4 246

3 927

Furniture and fixtures, except primarily of metal

Wooden furniture

878

920

961

5 837

6 450

6 701

Paper and paper products

Paper boxes

646

708

762

5 632

6956

7 205

Printing, publishing and allied industries

Job printing

1212

1 399

1 542

13 441

14 661

14 554

Newspaper printing

3 036

3 583

3 602

Rubber products

Rubber footwear

167

168

171

4783

4 799

3 858

Plastic products

Plastic flowers and foliage

390

406

422

5 656

6 885

6 865

Plastic toys

1214

1 364

1 400

33 591

41 119

42 369

Plastic products (miscellaneous)

Fabricated metal products, except machinery and

1 797

2014

2117

24 098

28 525

28 765

equipment

Aluminium ware

Electroplating

Metal toys

Padlocks and bolts

Pressure stoves and lanterns

Tools and dies

Torch cases

Wrist watch bands

Electrical machinery, apparatus, appliances and

supplies

Dry batteries

Electric bulbs

Electronics

Transport equipment

Aircraft repairing

Ship building and repairing

Professional and scientific, measuring and

controlling equipment, and photographic and

optical goods

Cameras

Watches and clocks

Other manufacturing industries

Jewellery and related articles

Wigs

2755

2706

2836

364

484

505

3 219

4 352

4 442

117

127

2 337

3 853

3 438

108

124

136

2037

2067

2 289

1 625

1 581

1 678

565

816

953

3 151

4 320

4973

1 826

3 745

3 732

234

285

305

6 390

6 443

6 650

460

ww goog

672

18222

2 208

2 283

2 663

3 839

2 203

2 520

711

51 570

70 998

70 188

2680

2 598

2876

2 846

7 005

7 062

7 244

237

345

368

2863 9 393

4 388 12 880

4 133 15 326

500

609

668

6052 1 398

7 328

938

7 849 826

Note: Figures refer to all manufacturing establishments known to the Census and Statistics Department, including those

registered with or recorded by the Labour Department.

250

Appendix 15

(Chapter 4: Employment)

Reported Occupational Accidents

Cause

1975

1976

1977

Non-

Fatal

fatal

Total

Fatal

fatal

Total

Fatal

fatal

Total

Machinery: power driven

7 408

7417

9 894

9 906

9 178

9 186

Machinery: other

446

724

624

625

Transport

Explosions or fires

Hot or corrosive substances

Gassing, poisoning and other

toxic substances

1 201

1 243

1 703

1 749

1 139

1 189

297

305

333

243

250

1 601

2080

2261

2 263

Electricity

102

118

124

Falls of persons

3915

3 970

4 639

4 684

5 167

5 223

Stepping on or striking

against objects

6 619

6 626

8 862

8 863

12 753

12 764

Falling objects

2040

2049

2354

2368

2742

2768

Falls of grounds

Handling without machinery

4 021

4 022

5765

5 768

6617

6 618

Hand tools

Miscellaneous

Causes not yet ascertained

Total

3 449

4 379

4 141

3 047

3 122

3 963

4 053

1 838

1915

2681

2 698

212

34 193

34 405

249

44 808

45 057

265

49 589

49 854

Note: Figures for 1977 are subject to amendments.

Appendix 16

(Chapter 4: Employment)

　　　　Consumer Price Index (A) (July 1973-June 1974-100)

251

Monthly average

Index for December

Item

Weight

1975

1976

1977

1975

1976

1977

All items

100.00

107.5

111.2

117-7

108

112

117

Foodstuffs

56.60

103-2

106.3

113.5

102

106

111

Housing

14-08

110-7

115.8

124-3

113

121

127

Fuel and light

3.39

129.3

132.6

134.9

134

132

135

Alcoholic drinks and tobacco

2.65

120.5

129.1

133.4

128

131

137

Clothing and footwear

3.82

98.0

97.9

100-8

101

103

Durable goods

1-41

105.8

106.4

109.2

105

107

110

Miscellaneous goods

4.58

115.3

119-8

124.7

117

123

125

Transport and vehicles

4.36

107.6

111.9

115.3

109

113

117

Services

9.11

116.8

123.3

129.9

120

126

133

Note: The weights are derived from households with monthly expenditure between $400 and $1 499 in 1973-4.

Consumer Price Index (B) (July 1973-June 1974-100)

Monthly average

Index for December

Item

All items

Weight

1975

1976

1977

1975

1976

1977

100.00

107.5

111.8

117.9

108

113

118

Foodstuffs

47.82

103.6

107.0

114.3

103

107

112

Housing

16.79

110.2

115-0

123.1

112

119

126

Fuel and light

2-71

128.6

131.5

133.9

133

131

134

Alcoholic drinks and tobacco

2.04

117.7

125.7

130-1

124

128

133

Clothing and footwear

5.92

97.7

97.6

100.3

100

102

Durable goods

2.97

104.3

104.6

106.8

104

105

107

Miscellaneous goods

5.17

113.9

117-2

121.3

115

120

122

Transport and vehicles

5.11

111.7

116.3

119.9

113

118

121

Services

11.47

115.1

122.4

130.3

119

125

134

Note: The weights are derived from households with monthly expenditure between $1 500 and $2999 in 1973-4.

Hang Seng Consumer Price Index

(July 1973-June 1974-100)

Monthly average

Index for December

Item

All items

Weight

1975

1976

1977

1975

1976

1977

100.00

105.3

109.7

115.3

107

111

116

Foodstuffs

26.27

102.4

106.6

113-4

103

107

112

Housing

28.14

103.2

105.0

107.8

104

106

110

Fuel and light

2-53

128.3

128.5

130-3

130

128

131

Alcoholic drinks and tobacco

0.73

113.9

121.8

125.3

119

124

127

Clothing and footwear

6.11

95.4

98.2

101.5

106

Durable goods

3.88

102.1

101.4

102.9

101

102

104

Miscellaneous goods

4.36

110-8

113.5

117.3

111

116

118

Transport and vehicles

7.47

117.7

124.2

127.8

119

126

129

Services

20.51

106.3

116.2

127.0

109

119

130

Note: The weights are derived from households with monthly expenditure between $3 000 and $9 999 in 1973-4.

252

Appendix 17

(Chapter 5: Primary Production)

Estimated Local Production of Crops, Livestock, Poultry and Fish

Item

Crops

Unit

1975

1976

1977

Rice (unhusked)

tonne

3.500

3.400

1 400

Other field crops

tonne

7700

7 500

Vegetables (fresh, frozen or simply preserved)

tonne

180 000

186 000

3 500

194 000

Fresh fruits and nuts

tonne

2100

2 600

Flowers

$ thousand

21 559

31 753

3 100 34 698

Livestock and poultry

Cattle

Sheep, lambs and goats

Pigs*

Chicken

Other poultry

Dairy products and eggs

Milk (fresh)

Eggs (fresh)

Fish and fish preparations

head

1 500

2 200

1900

head

―

thousand head

307

367

403

tonne

18 400+

21 600+

27 100

tonne

5 400

6 000

7 200

tonne

thousand number

4 600 150912

4 800 140 256

4 500

165 600

Fish (fresh, chilled or frozen)

Marine water fisht

tonne

111 800

Fresh water fish

tonne

4 500

113 400

5 200

118 200

4 180

Fish (dried, salted or smoked)

Marine water fish

tonne

4 400

4 100

4 160

Crustacea and molluscs (fresh, frozen, dried, salted, etc)

tonne

22 300

26 000

23 640

Fish products and preparations

tonne

2900

1 800

1 550

Crustacean and mollusc products and preparations

tonne

300

230

440

Meals (animal feeding-stuffs)

tonne

4 600

6200

6 060

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

1975

Production 1976

1977

Tonnes

Imports

1975

1976

1977

Iron ore

167 200

37 058

―

Quartz

Feldspar

761

2059

982

2062

1 387

2 090

2973

2 299

3 378

1911

2312

3 975

Graphite

2891

2171

1 344

Clay and kaolin

1 490

1 305

2466

13 121

17 682

22 612

Appendix 19

(Chapter 5: Primary Production)

Imports of Crops, Livestock, Poultry and Fish

Item

Unit

253

1975

1976

1977

Crops

Rice (unhusked)

tonne

343 782

361 916

340 924

Wheat

tonne

103 872

132 260

147 164

Other cereals and cereal preparations

tonne

258 215

322 642

374 517

Other field crops

tonne

42 234

52 709

47 655

Vegetables (fresh, frozen or simply preserved)

tonne

299 239

297 825

314977

Vegetables (preserved or prepared)

tonne

67 476

76 305

73 904

Fresh fruits and nuts

tonne

350988

340 536

353 205

Dried fruits and fruit preparations

tonne

30 195

32 496

40 905

Flowers

Sugar and honey

Coffee

$ thousand

3916

4 760

6 602

tonne

91 098

102 787

113 488

tonne

17 301

17 477

11 212

Cocoa

tonne

272

278

212

tonne

7 034

9 765

11 351

Tea and mate

Livestock and poultry

Cattle

head

208 674

Sheep, lambs and goats

head

19 340

202 661

16739

203 031

17 097

Pigs

thousand head

2 644

2 826

2 857

Chicken

Other poultry

Live animals

tonne

12832

13 273

14 354

tonne

14970

12 890

11 251

tonne

858

899

1 070

tonne

104 424

120 338

131 486

Meat and meat preparations

Dairy products and eggs

Milk (fresh)

tonne

3 425

4 633

5 354

Cream (fresh)

tonne

423

Milk and cream (evaporated, condensed, powdered, etc)

tonne

30 319

629

33 204

817

34 121

Butter, cheese and curd

tonne

Eggs (fresh)

Eggs (preserved)

thousand number

4 409

958 032

79 200

4 625

895 680

105 408

6 050

1 043 980

89 087

Fish and fish preparations

Fish (fresh, chilled or frozen)

Marine water fish

tonne

Fresh water fish

tonne

9 810

33 235

9 253 30 842

8 321 29 833

Fish (dried, salted or smoked)

Marine water fish

tonne

Fresh water fish

tonne

7 296

6419

6 940

119

Crustacea and molluscs (fresh, frozen, dried, salted, etc)

tonne

22 194

28 682

213

26 600

Fish products and preparations

tonne

3 861

3445

2 335

Crustacean and mollusc products and preparations

tonne

2006

1 823

2 252

Oil and fats (crude or refined)

tonne

119

114

Meals (animal feeding-stuffs)

tonne

4 782

6 028

7 827

254

Appendix 20

(Chapter 6: Education)

Categories of Registered Schools

Government

Grant

1975

114

As at September 30

1976

109

Subsidised

738

Private

1 897

Special education

Total

2 805

2 814

741 1909

2 765

1977

112

756

1 840 35

School Enrolment

Kindergarten

Private

146 965

161 471

171 879

Primary

Government and aided

548 215

521 574

Private

112707

102 167

495 846 95 421

Sub-total

660 922

623 741

591 267

Secondary

Government and aided

114 908

125 308

Assisted private

49 400

50 107

138 996 50 694

Other private

251 383

278 376

298 354

Sub-total

415 691

453 791

488 044

Post-secondary

Government*

Private

Sub-total

3 613

7971

2840 8 735

2 656 9 323

11 584

11 575

11 979

Adult education

Government*

29 730

30 097

37 450

Private

35 351

36748

37 831

Sub-total

Special education

Government and aided

Private

Sub-total

Total

65 081

66 845

75 281

5 654

5 675

6 698

5 675

6 698

1 305 918

1 323 098

1 345 148

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

Examination

Conducted by Hong Kong Examinations Authority:

London Chamber of Commerce

University of London, General Certificate of Education

Test of English as a Foreign Language (TOEFL)

Pitman Examinations Institute, typewriting

1975

Entries 1976

1977

33 226

36 198

41 725

21 341

18 827

18 519

13 177

11 406

9 728

3705

5 038

5 512

Pitman Examinations Institute, shorthand

3 173

4908

5 158

Association of Certified Accountants

2939

2758

3 139

Pitman Examinations Institute, other subjects

1 643

3 194

2830

Associated Examining Board, General Certificate of Education Association of International Accountants

1396

1 531

2336

2718

2716

2 127

Chartered Institute of Secretaries and Administrators

1735

1873

1775

Institute of Cost and Management Accountants

574

563

637

University of London, external degree

408

522

575

Cambridge University Certificate of Proficiency in English

218

195

Royal Society of Arts

130

123

122

Cambridge University First Certificate in English

168

Canadian English Language Achievement Test

Canadian Scholastic Aptitude Test

Others

834

638

1 048

Conducted by Hong Kong Polytechnic:

City and Guilds of London Institute Technological Examinations Total

2100

1950

89 485

92 374

1950 97 448

Appendix 22

(Chapter 6: Education)

Hong Kong Students in Britain

255

Course attending

1975

As at December 1976

1977

Professional courses

Engineering

797

1 018

1 151

Secretarial

272

340

391

Nursing

839

610

387

Science

159

188

335

Management and business studies

227

289

307

English Language

156

222

275

Accountancy

111

141

158

Computer science

103

141

Law

122

136

129

Medical science

137

Pharmacy

Economics

Textiles

Education

Social science

Arts

Art and design

Architecture

Dentistry

Music

106

119

115

Hotel and catering

Others

161

138

Sub-total

3 510

3 955

4 119

General Certificate of Education

School children

Total

2960

3 143

1 053

1 449

3 585 1920

7 523

8 547

9 624

Students Leaving Hong Kong for Overseas Studies

Country

Britain

United States

Canada

Australia

Appendix 23

(Chapter 6: Education)

Expenditure on Education

1974-5

1975-6

1 348 2 601

3 909

139

1 698 3 121 2215 225

1976-7

1 669 2719

1858

249

School year Aug-July

$ Thousand

Recurrent expenditure

1974-5

202 525

1975-6

1976-7

213 233

229 540

Capital expenditure

8 922

12 535

13 710

Grants and subsidies

713 781

755 542

869 362

Grants to Universities and Polytechnic (including rates)

240 694

303 017

306 854

University and Polytechnic Grants Committee (including university

student grants)

4 868

5 924

7811

Total

1 170 790

1 290 251

1 427 277

Education expenditure by other departments

12 371

14 399

15 804

256

Appendix 24

(Chapter 7: Health)

Vital Statistics

Estimated mid-year population

Births:

Known live births

Crude birth rate (per 1000 population)

Deaths:

Known deaths

　　　　　　Crude death rate (per 1000 population) Infant mortality rate (per 1000 live births) Neo-natal mortality rate (per 1000 live births) Maternal mortality rate (per 1000 total births) *Revised rate.

Appendix 25

(Chapter 7: Health)

Causes of Death

1975

4 395 800

1976

4443 800

1977

4 513 900

79 790

18.2

78486 17.7

79 888

17.7

21 597

22 692

23 406

4.9

5.1

5.2

15.0

14.3

13.9

10.3

9.1

8.9

0.03

0.18*

0.16

1974

1975

1976

Infective and parasitic

1281

854

757

Tuberculosis, all forms

974

646

568

Neoplasms

4710

5 126

5382

Malignant, including neoplasms of lymphatic and

haematopoietic tissues

4 683

5 105

5368

Endocrine, nutritional, metabolic and blood

264

314

396

Diabetes mellitus

183

215

288

Nervous system, sense organs and mental disorders

202

185

207

Circulatory system

5604

5865

6699

Heart diseases, including hypertensive diseases

3270

3311

3967

Cerebrovascular diseases

Respiratory system

Pneumonia, all forms

Bronchitis, emphysema and asthma

Digestive system

2105

2336

2 520

3795

3340

3368

2563

2188

2119

937

873

961

1115

980

1158

Peptic ulcer

183

164

194

Cirrhosis of liver

372

337

383

Genito-urinary system

373

427

506

Complications of pregnancy, childbirth and the

puerperium

Skin, subcutaneous tissues, musculoskeletal system

and connective tissues

Congenital anomalies

398

395

377

Certain causes of perinatal morbidity and mortality

552

538

493

Symptoms and ill-defined conditions

1928

1682

1865

Accidents, poisonings and violence

1748

1420

1887

All accidents

Suicide and self-inflicted injuries

1 127 481

780

951

535

654

Total deaths

22 050

21 191

23 195

Appendix 26 (Chapter 7: Health)

Hospital Beds

Category of hospitals

As at end of year

257

1975

1976

1977

Government hospitals

8 108

8618

8788

Government dispensaries

425

423

393

Government-assisted hospitals

7849

7913

8 199

Private hospitals

2023

2175

2289

Private maternity homes

113

Private nursing/maternity homes

Total

18561

19 270

19 779

Appendix 27

(Chapter 7: Health)

Professional Medical Personnel

As at end of year

In Government service

Total registered

1975

1976 1977

1975

1976

1977

Medical doctors

767*

792*

850*

2880

3 127

3356

Provisionally registered medical doctors

(house officers)

116

155

122

199

210

202

Dentists

541

576

633

Pharmacists

234

258

284

Midwives (without nursing qualifications)

312

345

348

931

974

982

Nurses (general, male and female,

excluding student nurses)

2543

2758

3099

7581

8226

8919

with midwifery qualifications

1 391†

1 489+

1 555

4691

4931

5179

without midwifery qualifications

1 152†

1 269†

1544

2890 3295

3740

Nurses (psychiatric, male and female,

excluding student nurses)

238

243

258

265

282

302

* Including unregistrable assistant medical officers.

† Revised figures.

258

Appendix 28

(Chapter 8: Housing and Land)

Number of Quarters and Estimated Persons Accommodated

as at March 31, 1977

Number of Quarters

Rest of

Urban

Tsuen

New