港史文本 - HK In Texts: Hong Kong Yearbook - Annual Report for the Year 1978

HONG KONG 1979

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HONG KONG 1979

Editor: Dianne Wood, Government Information Services

Designer: Arthur Hacker, Government Information Services

Photography: David H. P. Au and other staff photographers, Government Information Services

Printer and Publisher: D. R. Rick, Government Printer

Statistical Sources: Census and Statistics Department

Editor acknowledges all contributors and sources

URBAN COUNCIL PUBLIC LIBRARIES

Acc. No.

1299335

Class

951.25

Author

HON

HKC

Frontispiece: The symmetrical lines of an old fishing junk are set against sea, sky and steep hillside as it makes its way through the eastern approaches of Victoria Harbour.

Contents

Chapter

Page

HONG KONG'S NEW TOWNS

INDUSTRY AND TRADE

FINANCIAL STRUCTURE

EMPLOYMENT

PRIMARY PRODUCTION

EDUCATION

HEALTH

HOUSING AND LAND

SOCIAL WELFARE

111

PUBLIC ORDER

120

IMMIGRATION AND TOURISM

142

PUBLIC WORKS AND UTILITIES

147

COMMUNICATIONS AND TRANSPORT

156

THE MEDIA

175

THE ARMED SERVICES AND AUXILIARY SERVICES

183

RELIGION AND CUSTOM

188

RECREATION AND THE ARTS

194

THE ENVIRONMENT

207

POPULATION

220

NATURAL HISTORY

223

HISTORY

228

CONSTITUTION AND ADMINISTRATION

236

INDEX

295

Illustrations

Between pages

Frontispiece

Progress

vi-1

Water

4-5

Trade Promotion

12-3

Jewellery

44-5

People

92-3

Fire Services

124-5

Customs and Excise

156-7

Advertising

Filming

172-3

204-5

Farming

220-1

END-PAPER MAPS

Front:

Hong Kong, Kowloon and the New Territories

Back:

Geological Map of Hong Kong

Appendices

Appendix

Page

UNITS OF MEASUREMENT

OVERSEAS REPRESENTATION

252

253

3-4

INDUSTRY AND TRADE

254

5-12

FINANCIAL STRUCTURE

258

13-16

EMPLOYMENT

268

17-19

PRIMARY PRODUCTION

272

20-23

EDUCATION

274

24-27

HEALTH

276

28-29

HOUSING AND LAND

278

30-33

PUBLIC ORDER

280

PUBLIC WORKS AND UTILITIES

284

35-37

COMMUNICATIONS AND TRANSPORT

285

RECREATION AND THE ARTS

287

THE ENVIRONMENT

288

40-42

CONSTITUTION AND ADMINISTRATION

289

SOCIAL WELFARE

293

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 1978, the middle market rate was about HK$4.80=US$1.

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

PROGRESS

Previous page: Beyond Tsuen Wan New Town lies one of the world's busiest container terminals, with Stonecutters Island (left) and Hong Kong Island in the background. Above: A newly-completed 17-kilometre highway links Tsuen Wan and Tuen Mun.

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Tuen Mun New Town has a target population of 530,000 but the natural charm of the area is being maintained. While the town's fishing fleet lies at anchor, work proceeds on land reclamation projects in Castle Peak Bay.

100

　　　　　Housing and community amenities for 570,000 people are going ahead at Sha Tin New Town, transforming the once quiet valley into a modern urban centre. At the far end of the reclamation pictured is the new Sha Tin Racecourse.

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　　　　　Built on reclaimed land, the twin public housing estates of Wo Che and Lek Yuen at Sha Tin New Town look across the Shing Mun River to new expanses of reclamation and a majestic range of hills.

　　　　　More than 72,000 people live in Choi Hung and Ping Shek Estates, flanking the Choi Hung interchange. In the distance, on either side of Clear Water Bay Road, work continues on Choi Wan and Shun Lee Estates which will ultimately house 125,000 people.

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New sites for industrial use are being provided at the Tai Po Industrial Estate, allocating 15 hectares in 20 its first stage and 30 hectares in its second stage. In the foreground is the Tai Po Sewage Treatment Works.

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The extensive campus of the Chinese University of Hong Kong, covering 134 hectares, is set amid scenic surroundings near Sha Tin, with magnificent views of Tolo Harbour.

Hong Kong's New Towns

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HONG KONG is undergoing a period of dynamic change as far-reaching development programmes forge ahead to create new urban centres that will ultimately accommodate more than two million people.

Beyond the range of hills which separates the densely-populated areas of urban Kowloon from the largely rural expanse of the New Territories, three new towns are being created simultaneously in what is the largest project of its kind in the world. The three towns - Tsuen Wan, Tuen Mun and Sha Tin - have been planned as self-contained communities providing housing, hospitals, schools, shopping, com- munity amenities and light industry. Thousands of people each month are moving to these centres in one of the biggest social achievements in the history of Hong Kong. This ambitious programme is changing the face of the New Territories' mainland - a 730-square kilometre area reaching from Kowloon to the border with China. Until recently, the contrast between rural and urban Hong Kong has been marked; the ridge of 'dragon' hills has separated them; there has been no expansion north- wards and the crowded, noisy, energetic cities of modern high-rise development have been contained on each side of Victoria Harbour.

　　　　　　Much of the New Territories is steep, barren mountain and inhospitable rock, but there are green lowlands and fertile valleys that are farmed and cultivated; a patchwork of market gardens, vegetable fields and orchards is stitched across them. Some of the slopes are still grooved and fringed with the stepped contours of old hill cultivation, stamped and moulded over the centuries and now disused, overgrown and only a pattern on the rocky soil. There has been a drift away from the land as young people have struck out to the urban areas or migrated to London and Amsterdam to work in restaurants and family businesses. For the remaining villagers living in houses of stone and thick tiles, their traditional way of life has continued relatively undisturbed. In the hamlets that are clustered around market towns the seasonal rhythm of seed- time and harvest has not been interrupted. The New Territories has moved at a slower pace than Kowloon, only a short distance to the south, beyond the dividing hills, where in some areas people live in the most crowded square kilometres in the world.

　　　　　　The nine 'dragon' hills of Kowloon that separate the New Territories from the rest of Hong Kong imposed a formidable barrier to easy road construction. In the past five years, however, the area has become increasingly accessible through a major road building programme including the construction of a second Lion Rock Tunnel. While giving top priority to the development of new urban centres, the government is

NEW TOWNS

maintaining a rural balance, ensuring that part of the New Territories will continue to be used for farming to help supply some of Hong Kong's daily market needs. Large expanses have been designated as country parks, where people can enjoy the tran- quillity and beauty of unspoilt countryside. Urban growth is limited to designated areas in which government housing estates and private residential projects, landscaped to blend into the surroundings, are rapidly going ahead.

While the key development is taking place in the three new towns, the old market towns of Tai Po, Fanling-Sheung Shui-Shek Wu Hui, Yuen Long and several other rural townships have not been forgotten. They are being expanded, modernised and provided with additional amenities to meet present-day needs.

　　　　　　The New Territories building programme means that significant numbers of people from the cramped conurbations of Hong Kong Island and Kowloon are exchanging their former homes - in older resettlement blocks, tenements and squatter areas - for contemporary flats in public housing estates. For many this means a complete change of lifestyle. However Hong Kong people have demonstrated repeatedly during the territory's 137 years of history their ability to adjust to the new and unexpected. The new town scheme has several objectives: it will help solve the housing problem; attract industry to new areas; and alleviate Hong Kong's general problems of conges- tion by diffusing the pressures of urban development. Its implementation is being tackled with the same vigour and enterprise that have been features of Hong Kong's remarkable growth.

Scale and Speed

The government's large-scale housing plan, started in 1973, aims at providing by the mid-1980s enough permanent self-contained homes, with good amenities and in a reasonable environment, for every eligible family at present unsatisfactorily housed in Hong Kong. Because most of the usable land has already been developed on Hong Kong Island and in Kowloon, the high-rise blocks needed to carry out this plan have to be located in the New Territories.

　　　　　　Nowhere has such a programme proceeded on so great a scale or with such speed. Rarely, too, have the associated problems been so challenging. In most countries, a new town will be planned to accommodate from 50,000 to 100,000 people and phases will be scheduled over a period of 30 years or more. But many Hong Kong people need better homes in a shorter time and the new towns, which are scheduled for completion in less than a decade, are to house two million people.

The detailed planning of the new towns has required an appreciation of the needs of the people, vision and imagination. Hong Kong's growth has always been restricted by its rugged landscape and the territory has been forced to reclaim areas from the sea for its progress. In the new towns this pattern of development is continuing, with large areas reclaimed for site formation. Multi-storey housing blocks are inevitable because of space limitations but they are of a far better design than earlier housing estates. With Hong Kong's rising standard of living and people's increased expecta- tions, the flats are designed to fulfil the requirements of a more demanding generation. Density is about 2,470 people to one hectare compared with up to 7,000 people to the hectare in the older estates in the urban areas.

NEW TOWNS

Care is being exercised to ensure that at each stage the new towns are co-ordinated units, not only providing housing but other necessary amenities. To achieve integrated communities, a combination of government and private housing is being built to attract a spread of skilled, unskilled and professional income groups. The new towns are laid out as self-contained centres for convenient and agreeable living with special emphasis on landscaping to give streets, squares and river banks a pleasing appearance. There are sufficient sportsgrounds for the young and energetic, and open spaces for strolling under the trees or picnicking on the grass.

During their planning, much thought was given to the question of transport. The centres are being linked with other regions of the New Territories, Kowloon and Hong Kong Island by a modern road network on which much progress has already been made. Double-tracking and electrification is proceeding on the Kowloon-Canton Railway, which runs through Sha Tin, and the Tsuen Wan extension of the Mass Transit Railway will be operating by the end of 1982. Greater use of bicycles is being encouraged, with special paths both for recreation and going to work at the local factory or office.

The development of the new centres has varied according to each area's history and previous growth patterns. In building the new, it was essential that the most worth- while features of the old were preserved; consequently, these areas will not lose their traditional walled villages, peaceful temples and quiet pathways among wooded hills. The government also had to take into account the traditional requirements of fung shui - a type of geomancy with the literal meaning of 'wind' and 'water'. Fung shui has been used for thousands of years to determine the most advantageous location for a home or workplace, in relation to the surrounding topography. Features such as waterways, land form and vegetation are regarded as symbolic of the forces which affect the well-being, livelihood and good fortune of residents both in this life and in the afterlife.

In the early stages, the government considered not only the questions of altering land form and moving villages, but also the choice of sites and position of new housing blocks. The fung shui of a locality could not be disturbed unless the local spirits were appeased, often resulting in costly ceremonial rites as well as compensation for the residents. Where villages had burial grounds within their boundaries, much time was spent negotiating the transfer of graves and pots of ancestral bones.

Planning and Organisation

The planning and construction of the new towns is being carried out by the Public Works Department (PWD). To co-ordinate and supervise the many consulting engineers, private architects, PWD branches and other government departments employed on the various projects, the PWD set up a special New Territories Develop- ment Department (NTDD). The NTDD - headed by a director - consists mainly of senior professional officers who are charged with the overall planning, programming, supervision and implementation of the PWD effort.

　　　　　　Each of the three new towns has its own project manager who is responsible to the Director of the New Territories Development Department; the project manager's duty is to ensure that progress is maintained on all detailed planning and construction, so that the new town programme is kept on schedule. A works progress committee meets

NEW TOWNS

regularly and reports to the director on the state of site formation, construction, and the general pace and state of co-ordination of the overall project for each town.

The welfare of the residents is the province of the Secretary for the New Territories and his District Officers. The Secretary for the New Territories is also the authority for making available the land on which the new towns are built, and resuming land from former occupiers with suitable compensation arrangements. When the govern- ment makes land available for private development, the New Territories Adminis- tration lays down the terms of the leases.

　　　　　　Through the District Officers, the Secretary for the New Territories maintains a political and administrative presence in the towns. In Tsuen Wan, where 70 per cent of the present population of 553,000 lives in public housing, the District Officer's post has been upgraded to that of Town Manager, with special responsibilities to develop community relations. The District Officer or Town Manager heads a town management committee on which the main government departments - Public Works, Education, Medical and Health, Transport, Royal Hong Kong Police Force, Housing Authority, Urban Services, Fire Services, Social Welfare and Labour - are represented. He maintains close liaison with the project manager as the new town takes shape, keeps contact with new and old inhabitants, listens to complaints and suggestions, and explains government plans and policies.

　　　　　This has meant new consultative links. Traditionally in the New Territories, the villages have elected or appointed their representatives to committees which, in turn, formed the Heung Yee Kuk, a rural consultative council. The Heung Yee Kuk speaks for rural interests in discussions with the government over land sales and other matters of local concern.

　　　　　　But the growth of the new towns has brought changes to the rural scene and, to meet the needs of the new townspeople, Advisory Boards were formed in each of the seven districts of the New Territories in 1977. The chairman of the board is the District Officer or Town Manager; some members are government officials while the remainder are local residents representing a wide cross-section of the community such as headmasters, industrialists, village representatives and professional people. The role of the Advisory Boards is to advise the government on the provision and use of recreational and other public facilities, as well as the general well-being of their areas. Public funds are allocated to enable them to promote recreational, cultural and other activities. The unofficial members, through their regular contact with government officials from the various departments, speak for local people on such matters as sport, transport and general aspects of social life in the new communities.

　　　　　　During his speech at the opening of the Legislative Council in October, 1978, the Governor said that the Advisory Boards were beginning to provide the partnership between the people and the government so vitally needed in the development of the New Territories. This, in turn, had raised the need for some basic reorganisation of the New Territories Administration. The Governor said more government activities would be organised on a regional basis so that government departments could be more directly responsive to local needs.

　　　　　　As a result, the Secretary for the New Territories is delegating part of his work to four regional commissioners, leaving him more time to deal with broader issues. Representatives of government departments such as Urban Services, Transport, and

WATER

圖

Reservoirs in the sea

Water has always been a precious com- modity in Hong Kong and the government has had to devise major schemes to ensure that sufficient supplies are available for both domestic and industrial use. In November, the Governor officially opened High Island Reservoir, a massive engineer- ing feat which cost $1,350 million. High Island, with a projected storage capacity of 273 million cubic metres, was formed by damming and draining a channel between the island and the New Territories' main- land, and replacing the seawater with fresh water. It is Hong Kong's second reservoir reclaimed from the sea. The first, Plover Cove, with a present capacity of nearly 230 million cubic metres, was built in the 1960s and later expanded. In addition, Hong Kong has 15 conventional reservoirs and one of the world's largest desalination plants, together with treatment works, pumping stations and a network of under- ground tunnels and submarine pipelines. There is generally an abundant annual rainfall, but a change in the weather pattern can significantly affect water storage. At the start of 1978, residents had a limited water supply of 10 hours a day until restrictions were lifted in April. However it is seldom necessary to in- troduce water rationing, particularly as China now provides approximately 30 per cent of Hong Kong's needs. This results from a further agreement signed in November which will enable Hong Kong to meet consumption demands up to 1982. The Water Supplies Department is continuing to plan for the future by investigating proposals for recycling water, reverse osmosis for desalination and the development of minor catchment areas,

Previous page: Early in the year, the water level had dropped dramatically at this reser- voir at Tai Tam, on Hong Kong Island. Left: But umbrellas were necessary when early rains boosted water supplies.

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In July, at Tai Tam, water was flooding over a spillway as heavy rains quenched Hong Kong's thirst This group of swimmers found a novel way to cool off.

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The $1,350-million High Island Reservoir, officially opened in November, is Hong Kong's second reservoir reclaimed from the sea. It was built by joining an island to the New Territories' mainland.

NEW TOWNS

Medical and Health will be assigned to the new towns to deal with the problems relating to their particular fields. Voluntary welfare agencies are also being called upon to play a part in the fabric of the new towns.

Tsuen Wan: Tripartite Growth

　　　　　Lying to the north-west of Kowloon, Tsuen Wan New Town covers an area of approx- imately 2,700 hectares and comprises the three main districts of Tsuen Wan, Kwai Chung and Tsing Yi Island. "Tsuen Wan' derives its name from an earlier appellation, Ch'ien Wan, meaning 'shallow bay' in Cantonese; Ch'ien Wan is listed in very old Chinese gazetteers of the area and it is also inscribed on a bell found in the local Tin Hau temple, which is dated 1744. Archaeological finds suggest that aboriginal people lived in the area more than 2,000 years ago, with Chinese settlement beginning during the Tang Han Dynasty (25 to 220). The notable Lei Cheng Uk Tomb, discovered in 1955 at Cheung Sha Wan a nearby district in Kowloon, was probably constructed during this period.

At the end of 1978, Tsuen Wan New Town's population was 553,000 and it is planned to ultimately grow to 900,000. The development of Tsuen Wan Central and of Kwai Chung, where Hong Kong's container terminal is located, has been sub- stantially completed; the bulk of the new population is to be concentrated in Tsuen Wan North and Tsing Yi Island, where major engineering works are now taking place. Before Tsuen Wan gained new town status, there already was a large built-up area in existence. It was here that most of Hong Kong's important textile mills and clothing factories were established by businessmen who left Shanghai when a change of government seemed inevitable in the late 1940s. In those days, the needs of workers in Hong Kong were basic and many of the older areas of Tsuen Wan have lacked amenities such as parks, sufficient schools, adequate transport and cultural centres. Under the new town programme thorough surveys of every street, lane and corner have been undertaken in the older built-up areas and this is being followed up by a careful schedule of tree-planting, upgrading of markets and making the best use of any open space. Older housing blocks are being improved. The Tai Wo Estate, con- structed in 1961 to accommodate 46,000 people, is currently being redeveloped under a 10-year programme, bringing it into line with modern standards and reducing its population to 30,000.

The decision to extend the underground Mass Transit Railway to Tsuen Wan has necessitated the replanning of urban areas to accommodate stations, transport inter- changes and a depot. The railway extension, scheduled for completion in 1982, will provide a much-needed transport link for the area but the necessary acquisition of land has caused problems where people have bought their own flats, or where long- established squatter factories have had to be moved. The Tsuen Wan extension comprises five stations within the new town area, near the largest public housing estates. A private housing development to be built over the railway's maintenance depot will accommodate 20,000 people.

An extensive programme of school building is forging ahead in Tsuen Wan. At least 20 more secondary schools are needed and 16 will be built by 1982. Six secondary schools and the Kwai Chung Sportsground were completed during the year and construction work was proceeding on six other secondary schools. A 1,300-bed

NEW TOWNS

psychiatric wing at Princess Margaret Hospital, in Kwai Chung, is being built and will be completed by 1980.

　　　　　　Tsuen Wan is fortunate in that, like the other two new towns, it has a natural backdrop of mountain slopes; in the distance is Tai Mo Shan (958 metres), the highest point in Hong Kong, while the hills nearby are wooded and dotted with numerous temples. Some excavation of hill-slopes has been necessary because of construction work, but new sites are now being formed on more gentle slopes and vegetation is being replanted. Trees are preserved, wherever possible, and landscape consultants are keeping a close watch on the course of general development.

Tuen Mun: Keeping the Hills Green

　　　　　Tuen Mun New Town lies in a valley on the western side of the New Territories, about 32 kilometres from the Star Ferry, Kowloon, at the head of Castle Peak Bay. Foot-hills flank the town on the east while to the west the majestic Castle Peak rises to a height of 583 metres. The famous Tsing Shan Buddhist Monastery, established in the fifth century, nestles into the lower slopes of the mountain; it was here, accord- ing to legend, that a Buddhist saint named Pui To became abbot after a gruelling journey across the sea in a begging bowl.

　　　　　　In ancient days Tuen Mun was known throughout southern China as a prosperous trading port. War, invasion and harassment by pirates brought a decline in its fortunes, but early this century it was still well-known for its fishing fleet and even in recent years junks, with their bat-winged sails, were of a size resembling old-time Spanish galleons. Tuen Mun was also a small but prosperous agricultural centre.

　　　　　For the modern town planners and builders, the area has presented a great oppor- tunity. Here, in contrast to Tsuen Wan, they have been able to create a new environ- ment largely unencumbered by previous development. Some villages have been resumed while others are being preserved in a natural setting. Half the new town, which is divided by a realigned river channel, is being built on land reclaimed from Castle Peak Bay and the adjoining marshes. The Tuen Mun fishing fleet, while less than half the size of former days - in 1965 it numbered 1,500 junks and now there are less than 700 is continuing to have the facilities it needs, using the reclaimed waterfront and the new 40.5-hectare typhoon anchorage. Outside the anchorage, boatyards and timber-yards are to be accommodated.

Tuen Mun eventually will have a population of about 530,000 on almost 1,180 hectares of land, with a possible extension into the So Kwun Wat and Siu Lam areas to provide another 37 hectares of land for 30,000 people. Development has been planned in three stages and construction work on each of these stages is proceeding.

Many new factories are being built to provide work for the increasing number of people. About 90 per cent of the work-force will have jobs in light industry and the remainder, besides fishing, will work in service industries such as plumbing, car main- tenance and electrical repairs. Eight primary schools and eight secondary schools will be ready for use by 1980 to cater for young people, and the 1,300-bed Tuen Mun Hospital is to be completed by 1984.

In Tuen Mun, a pleasant scenic environment is being maintained through the preservation of attractive features already in existence such as Castle Peak, with its forested slopes and the Tsing Shan Buddhist Monastery; the long beaches stretching

NEW TOWNS

along Castle Peak Bay; and the green Tuen Mun valley. The objective is to develop civic pride and a sense of belonging. Alongside the town centre, with its public library, theatre, art gallery, exhibition halls and meeting rooms, is a large public park of 10.7 hectares. The emphasis is on open space about one-tenth of the new town is parkland with the town plan making ample provision for landscaped gardens, children's playgrounds and swimming pools.

Sha Tin: Vitalising a Valley

―

Sha Tin New Town lies along a valley at the southernmost inlet of Tolo Harbour, to the north of the Kowloon Peninsula. According to legend, the soil of this valley was so fertile in days gone by that rice from the local farms was carried thousands of kilometres north to Peking, to be served at the Emperor's table. For visitors travelling through Sha Tin on the Kowloon-Canton Railway it was, until quite recently, a picture of the traditional countryside, with lush rice paddies in sight of the sea and green wooded slopes rising to the barrier of hills that separates the valley from urban Kowloon.

When completed in the mid-1980s, Sha Tin will have a population of 570,000 on 1,720 hectares of developed land. The former farms, pig breeding concerns, squatter areas and villages are being rapidly replaced by a modern environment that includes both government and private high-rise housing blocks, schools, a large town centre, a 1,400-bed teaching hospital, parks, sportsgrounds, new roads and factories for light industry. The development has been planned in two stages; the second stage commenced during the year with the formation and reclamation of new areas.

There were many problems to be overcome in planning the new town and many local factors had to be considered. Because it is almost surrounded by steep hills, Sha Tin is vulnerable to smoke pollution; as a result only light industries are allowed and they must burn pollution-free fuels. The Shing Mun River running through the middle of the town is, at present, heavily polluted and the plan is to clean the river-bed entirely of its septic mud.

Disposal of sewage has posed another problem. Elsewhere in Hong Kong sewage can be screened and, after entering the sea through submarine outfalls, be swept away by the tides. But this is not feasible for Sha Tin because the adjacent waterway - Tolo Harbour is almost landlocked. A local sewage treatment plant is therefore being built at an estimated cost of $225 million.

Sha Tin also must plan against possible flooding. When a typhoon or severe tropical storm strikes Hong Kong, combined with certain conditions of wind and tide, the waters of narrower inlets can expect to undergo a so-called 'cyclonic surge', which unleashes tides three metres or more above normal. These 'surges' are infrequent - at intervals of about 30 years - but in the past, during Typhoon Wanda in 1961 and earlier in 1937, they caused serious flooding in the Sha Tin valley. This means reclama- tion levels in Sha Tin must be higher than normal, and special precautions have been taken to preserve such landmarks as low-lying Tsang Tai Uk, an old walled village near the Lion Rock Tunnel.

In its early stages, Sha Tin has been largely a 'dormitory' area for Kowloon and Hong Kong Island. But as local light industry develops, jobs will be provided for the new town's population. Three light industry zones have been planned and in the

NEW TOWNS

first of them Fo Tan, on the western side of the Kowloon-Canton Railway line a substantial number of sites have already been developed, serviced and sold. The development of a big oil storage depot at Fo Tan has greatly facilitated China's supply of oil to Hong Kong. The two other industrial zones will be at Siu Lek Yuen and Pak Shek.

In October, 1978, the Royal Hong Kong Jockey Club (RHKJC) opened Hong Kong's second racecourse at Sha Tin, on reclaimed land adjoining the Shing Mun River. Costing an estimated $550 million and covering 100 hectares, the racecourse has a 213 metre-long grandstand which can accommodate 30,000 people. Within the track, the RHKJC has built a public park with pools, shrubs and curving paths. The RHKJC and the government are also jointly developing the Jubilee Sports Centre which will provide training and coaching facilities for sportsmen and sportswomen on an international level.

The Smaller Centres

　　　　Beside the three new towns, three market centres are being greatly expanded and provided with modern buildings and facilities to accommodate approximately 500,000 people. The three market towns are Tai Po, Fanling-Sheung Shui-Shek Wu Hui, and Yuen Long.

The market towns were once important centres of Hong Kong life, but their growth in recent years has been overshadowed by the development of Kowloon and Hong Kong Island. Now they are re-emerging as vital industrial and trade centres. At Tai Po and Yuen Long the first two industrial estates in Hong Kong are being developed and high technology industry is receiving priority.

　　　　　Tai Po has a planned population of 220,000 and much of the new land for develop- ment is being reclaimed from the sea. The first stage has been the reclamation of 45 hectares of land on which the construction of a public housing estate, which will accommodate 30,000 people, is proceeding. Ultimately 103,500 people will live in public housing and Home Ownership Scheme flats, another 90,000 will make their homes in private residential buildings, while the remainder will live in villages or village-style housing.

　　　　　Tai Po will still be a farming centre where the produce from surrounding villages is marketed, but there is to be more stress on industry and commerce. New amenities being built include hospitals, schools, parks and recreation areas, a system of cycle- tracks, a stadium and a swimming pool complex.

Some eight kilometres inland from Tai Po, the neighbouring towns of Fanling, Sheung Shui and Shek Wu Hui are being developed for a combined population of 170,000; the present population is 43,000. Most of the new residents will be accom- modated at Sheung Shui where two public housing estates have been planned, and at Fanling where another public housing estate is to be built. Sites are being prepared for private residential development and there also will be land for village-type housing, light industries and an estate under the Home Ownership Scheme.

　　　　　　A large open space for recreation separates the areas zoned for development in Sheung Shui and Fanling. Both centres are served by the Kowloon-Canton Railway and the present railway stations are to be at the heart of the new communities.

NEW TOWNS

Improvements are also being carried out on roads, the Luen Wo Market and at the On Lok Tsuen industrial area.

　　　　　　Yuen Long, a lively prosperous town of about 37,000 people in the north-western region of the New Territories, is the market centre for the produce of local villages, farmlands and fishponds. In the next 10 to 15 years, the population will grow to approximately 95,000. By that time all the building land currently reserved for public and private housing and commercial premises will have been developed and occupied. The main objectives of the Yuen Long development programme are to supply public housing for 11,000 people; to provide more sites for private development; to develop open spaces with sufficient land reserved for light industry; and to set aside land for government buildings and community services.

　　　　　　One-fifth of Yuen Long's future population is expected to find work in labour- intensive light industries. In addition, Yuen Long's new industrial estate sited at Wan Chau, about three-quarters of a kilometre north of the town centre, will provide jobs for skilled workers.

Forging the Links

　　　　　The urban development of the New Territories hinges on a modern transport network linking the new towns, market towns and rural townships with Kowloon and Hong Kong Island. New motorways, modernisation of the Kowloon-Canton Railway and the Tsuen Wan extension of the Mass Transit Railway are being implemented to provide for the efficient transportation of people, goods and services.

　　　　　　The transport system developing in the New Territories is connected to the arterial road system in Kowloon and on Hong Kong Island. Through comprehensive planning, the whole of Hong Kong is being joined by a series of high-capacity motorways which are reducing travelling time and improving access.

　　　　　　During 1978, the traffic flow to Sha Tin and Tai Po was assisted by the opening of the second Lion Rock Tunnel, which is one of the main approaches to the New Territories from Kowloon. The first stage of the Tuen Mun Road, Hong Kong's first high-capacity limited-access rural highway linking Tuen Mun and Tsuen Wan, was opened in May. A 17-kilometre three-lane carriageway, the highway has helped to eliminate the bumper-to-bumper crawl by cars and lorries along Castle Peak Road. Work on the second stage comprising another three lanes is now proceeding. The Tsuen Wan By-pass is being built and will be in use by 1982, providing a direct link between Kwai Chung Road and Tuen Mun Road. This by-pass will span a reclamation area to the south of Tsuen Wan New Town and connect with the bridge to Tsing Yi Island and with Castle Peak Road at the end of the town. Sha Tin and Tai Po are also to be connected by a new major highway which will eventually extend to Yuen Long.

　　　　　　Railways are to play an increasingly important part in public transport, linking the expanding urban centres of the New Territories with Kowloon and Hong Kong Island and providing fast and dependable services. Double-tracking of the Kowloon- Canton Railway is proceeding, and the line will be electrified by mid-1981 enabling increased frequencies and quicker journeys. Work on the Tsuen Wan extension of the Mass Transit Railway is under way and the underground will be running by 1982;

NEW TOWNS

a trip from Tsuen Wan to Central District on Hong Kong Island will take a mere 28 minutes compared with an hour or more by road at present.

　　　　　　Within the new towns, careful consideration has been given to pathways, cycle routes and district roads as the means of access to planned areas, peripheral zones and to the main highways. Town planners have sought to avoid congestion and limit pollution while providing safe ways for residents to commute to work, home and recreational areas. At Tuen Mun a special public transport system, more than 11 kilometres long, has been incorporated in the town's development plan and it will give pedestrians and cyclists direct access to the countryside without crossing busy main highways. In Sha Tin, there will also be a system of walk-ways and cycle routes mostly kept apart from main roads. The smaller centres, in particular, are making provision for the cyclist and the pedestrian. A cycle route will link Tai Po with Fanling, and Yuen Long is to have a number of pedestrian precincts. All the towns are to have many bus stations, for buses will remain the main means of regional transport.

Looking to the 1980s

　　　　　The policy for Hong Kong in the 1980s is to meet the housing and work needs of an energetic and ambitious people, while providing a pleasant environment for com- munal and family life, and recreation when work is done. The creation and growth of the new towns are bringing many changes to the lives of more than two million people. Their development is also affecting the location and expansion of Hong Kong's industry.

　　　　　　While the process of urbanisation is going ahead, much care is being exercised to ensure that large areas of the New Territories are retaining their rural charm. The market gardens are continuing to supply fresh vegetables, fruit and flowers and large areas of countryside, gazetted as country parks, are being preserved for relaxation.

　　　　　　It is 30 years ago since Hong Kong was visited by Sir Patrick Abercrombie, who had drawn up plans for the rebuilding of London after World War II. Sir Patrick noted: 'In comparing Hong Kong with many other places, two special characteristics of its problems at once emerge first the shortage of land for any sort of urban expansion; secondly an unlimited reservoir of possible immigration.' He recom- mended the building of new towns on the outskirts of Kowloon and in the New Territories; the zoning of Hong Kong into industrial and residential areas; the removal of military bases from urban centres; and the construction of a cross- harbour tunnel. In 1948 these were drastic and very expensive measures which might have been feasible in a time of quiet and prosperity, but not when Hong Kong's planners were grappling with the problems of immigrants, trade embargoes and outside political pressures.

Today the story is different; for Hong Kong it is a time of tremendous progress and accomplishment.

Industry and Trade

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THE manufacturing industry in general continued to perform well in 1978 and achieved an overall rate of growth slightly higher than that in 1977.

　　　　　　The value of domestic exports in 1978 amounted to $40,711 million - 16 per cent more than in 1977.

　　　　　　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 containing Asia's only computerised cargo terminal, and excellent world-wide.com- munications. There are no import tariffs and revenue duties are levied only on tobacco, alcoholic liquors, methyl alcohol and some hydrocarbon oils. Tax also is payable on first registration of motor vehicles.

Apart from providing the infrastructure - either through direct services or by co- operation with public utility companies and autonomous bodies - the government's principal 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.

　　　　　　The Advisory Committee on Diversification, which was appointed by the Governor in late 1977, continued its work in 1978. The committee is to advise whether the process of diversification of the economy, with particular reference to the manufactur- ing sector, could be facilitated by the modification of existing policies or the introduc- tion of new policies. Its chairman is the Financial Secretary, and it includes 13 prominent representatives of industry, banking and business circles and two govern- ment officials. It is expected that the committee will conclude its work in 1979.

Industrial Development and Industrial Land

Light manufacturing industries, producing mainly consumer goods, predominate in Hong Kong. About 68 per cent of the total industrial work-force is employed in the textiles, clothing, electronics, plastic products, toys, and watches and clocks in- dustries. These industries accounted for about 73 per cent of Hong Kong's total domestic exports and are likely to continue to predominate, despite the development of more high-technology industries.

INDUSTRY AND TRADE

The first stage of the Tai Po Industrial Estate, the site formation work of which was completed in 1977, made available 15 hectares of land for allocation to heavier industries. A further 30 hectares were developed during 1978. The Tai Po Industrial Estate is managed by the Hong Kong Industrial Estates Corporation. By the end of 1978 sites had been offered to 13 companies. A second industrial estate, which is to be constructed at Yuen Long, will provide a further 72 hectares of land.

The number of sites made available for industrial use increased in 1978. There were 21 sites with an overall area of 56,324 square metres sold.

　　　　　Two sites sold were for buildings designed to cater for smaller factories. The government also proceeded with the construction of flatted factory blocks to accom- modate, in permanent buildings, squatter workshops and small operators to be cleared for public purposes. Two of these factory blocks are expected to be completed by mid-1979.

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

Industrial Investment Promotion

The Trade Industry and Customs Department continued to work closely with statutory and non-statutory trade and industrial organisations in the overseas pro- motion of industrial investment in Hong Kong. Major activities in 1978 included a series of industrial investment promotion missions to Britain, Denmark, the Federal Republic of Germany, Japan, the Netherlands and the United States.

Although the great majority of industrial enterprises are Hong Kong-financed and managed, at the end of the year there were at least 386 factories either fully or partly-owned by overseas interests 14 per cent more than in 1977. These factories employed 78,330 workers or 10 per cent of the total work-force in the manufacturing industry. The total direct investment involved was about $2,106 million. The main sources of such investment are the United States, Japan, Britain, the Netherlands and Switzerland. The principal industries are electronics and textiles, although there were new investments in other fields including the light and medium engineering industries. In November, the Trade Industry and Customs Department and the Hong Kong Trade Development Council jointly organised an economic mission to Japan. The high level mission included in its membership leaders in the fields of industry, trade, banking and shipping.

The four main objectives of the mission were to increase Japanese awareness of Hong Kong's economic potential; to explore jointly the opportunities existing in Hong Kong for industrial investment by Japanese companies and the acquisition of Japanese technology by Hong Kong companies; to encourage the expansion of two- way trade; and to foster good relations between Japan and Hong Kong at a senior level in both the public and private sectors.

While the mission was in Japan, it was joined by the Governor for two days of high level engagements, including calls on the Prime Minister, Finance Minister,

TRADE PROMOTION

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Developing trade

Without doubt, one of the key factors con- tributing to Hong Kong's impressive ex- port figures is the work of the Hong Kong Trade Development Council (TDC). Since it was established in 1966, this statutory body has secured a reputation as an aggres- sive, imaginative and effective promoter of goods made in Hong Kong. Its work has paralleled the growth of the territory's domestic exports which were valued at $35,438 million in the 1977-8 financial year. Hong Kong's most important export industry, by far, is clothing, and this is emphasised by the TDC's annual fashion spectacular, the Ready-to-Wear Festival. In 1978, more than 5,400 buyers attended the seven-day festival. Another major func- tion organised by the TDC is the Hong Kong Toy and Gift Fair which attracted nearly 4,000 buyers in 1978. The functions of the TDC include assisting companies to promote their products at international fairs, organising trade missions and intro- ducing potential buyers to manufacturers. During 1978, significant projects were a trade mission to Central and South America and, in association with the Trade Industry and Customs Department, an economic mission to Japan. Besides its headquarters, the TDC maintains 17 offices overseas and works to improve trade with countries which are either established or new cus- tomers of Hong Kong. While the territory's main markets are Western Europe and North America, the TDC is stressing the potential of smaller markets and the need for product diversification owing to in- creasing protectionism in some countries.

Previous page: The Ready-to-Wear Festi- val puts the spotlight on Hong Kong's high quality fashion and production capabilities. Left: The Trade Development Council's executive director and staff members inspect a model of the display unit designed for Caracas, Venezuela; a wide variety of Hong Kong goods was exhibited; a fine dragon was used in the promotion at Caracas.

　　　　　It took a skilled craftsman six weeks to construct this 35-metre dragon which was airfreighted to South "America for the TDC's five-day product display in Caracas. The craftsman built his splendid dragon

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Blowing bubbles and having fun is a group of young models who showed an imaginative range of children's clothes to an audience of overseas buyers and fashion writers at the 1978 Hong Kong Ready-to-Wear Festival.

Below: Graphic themes, which project Hong Kong's image as a progressive manufacturing centre, are designed for international trade fairs, promotions and

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　　　　　Above: At its head office, the Trade Development Council has a reference library containing some 5,500 trade directories and publications from all over the world.

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The Trade Development Council assists buyers who want to meet Hong Kong suppliers. The managing, director of an Australian toy company examines a battery-operated boat at one of Hong Kong's largest and most modern toy factories.

INDUSTRY AND TRADE

Foreign Minister, Minister of International Trade and Industry, and the Secretary of State for External Economic Affairs.

Textiles and Clothing

The textiles and clothing industries are Hong Kong's largest, together employing about 44 per cent of the total industrial work-force and producing some 46 per cent of total domestic exports. The export performance of the spinning and weaving sectors improved slightly in 1978 in relation to 1977. Exports by the clothing sector improved over 1977 despite the more restrictive terms of Hong Kong's new bilateral textiles agreements with the European Economic Community and the United States, largely because market conditions in 1977 had been depressed. Total domestic exports in 1978 were valued at $40,711 million, compared with $35,004 million in 1977.

Production in the spinning sector was still below capacity in 1978 but the output of cotton yarn increased slightly from 169 million kilograms in 1977 to 172 million kilograms. Production of man-made fibre yarn and cotton/man-made fibre blended yarn was 48 million kilograms in 1978, compared with 39 million kilograms in 1977, and production of woollen and worsted yarn was four million kilograms, compared with 4.8 million kilograms the previous year. Most of the yarn produced was used by local weavers.

　　　　　　The weaving sector, with 29,577 looms, produced 797 million square metres of woven fabrics of various fibres and blends, compared with 768 million square metres in 1977. As in previous years, the bulk of the production 84 per cent

was of cotton. Much of the fabric produced was exported in the piece, but local clothing manufacturers also used large quantities of locally woven and finished fabrics.

　　　　　The knitting sector exported 9.3 million kilograms of knitted fabrics of which 40 per cent were of man-made fibres or blended cotton/man-made fibres, and 59 per cent of cotton - compared with 7.9 million kilograms in 1977. In addition, a large quantity of knitted fabric of all fibres was used by local clothing manufacturers.

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

　　　　　　The manufacture of clothing is the largest sector of the industry, employing some 251,730 workers or about 31 per cent of the total industrial work-force. During the year the clothing sector continued to keep up with the latest trends in fashion. Hong Kong's domestic exports of clothing were valued at $15,709 million, compared with $13,908 million in 1977.

Other Light Industries

The electronics industry maintained its position as the second largest export-earner among Hong Kong's manufacturing industries. Domestic exports of electronic prod- ucts in 1978 were valued at $4,741 million, compared with $4,436 million in 1977. The industry comprises 793 factories employing 73,736 workers. It produces a wide range of products, including transistor radios, computer memory systems, electronic

INDUSTRY AND TRADE

calculators, transistors, integrated circuits, semi-conductors, pre-packaged electronic modules, television sets, smoke detectors and burglar alarm systems.

The plastics industry's performance was fair in 1978. Domestic exports of plastic products were valued at $3,561 million, compared with $3,235 million in 1977. The industry has 4,314 factories and 84,415 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 1978. Domestic exports during the year were valued at $2,983 million, compared with $1,881 million in 1977. The industry has 475 factories employing 20,296 workers. Production includes both mechanical and electronic watches, clocks, watch cases, dials, metal watch bands, assembled watch movements and watch straps of various materials.

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 shipyards also build a variety of small vessels. Several large shipbuilding and repair yards are being con- structed on Tsing Yi Island. The Kwai Chung Container Terminal, which handled the equivalent of 1.26 million 20-foot containers in 1978, together with its complementary repair and manufacturing facilities, has also 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 4,250-gram capacity for the plastics industry; power presses; lathes; shapers and drilling machines; polishing machines; printing presses; textile knitting and warping machines; and electroplating equipment.

External Trade

Total merchandise trade in 1978 was valued at $116,964 million, an increase of 25 per cent over 1977. Imports rose by 29 per cent to $63,056 million. There was a considerable growth of 16 per cent in domestic exports which totalled $40,711 million, while re-exports at $13,197 million showed a record increase of 34 per cent.

　　　　　　Appendices 3 and 4 provide summary statistics of external trade, including a break- down of countries and commodities, and comparative figures for recent years.

Hong Kong depends almost entirely on imported resources to meet the needs of its 4.7 million people and the requirements of its diverse industries. Imports of raw materials comprised 42 per cent of total imports in 1978. The major components were fabrics of man-made fibres ($2,572 million), iron and steel ($2,018 million), woven cotton fabrics ($1,850 million), watch and clock movements, cases and parts ($1,739 million) and raw cotton ($1,394 million).

INDUSTRY AND TRADE

　　　　　　Imports of consumer goods totalled $16,757 million, accounting for 27 per cent of total imports. The major consumer goods imported, many of which are, however, re-exported commercially or as tourist purchases, consisted of diamonds ($3,824 million), watches ($1,380 million), clothing ($1,297 million), radios, television sets, gramophones, records and tape recorders ($981 million) and jade and precious stones, ivory, jewellery, and goldsmiths' and silversmiths' wares ($797 million).

Imported foodstuffs were valued at $8,547 million or 14 per cent of total imports and comprised mainly fish and fish preparations ($1,161 million), fruits ($1,126 million), meat and meat preparations ($1,018 million) and swine ($923 million).

Imports of capital goods were valued at $8,165 million - 13 per cent of total imports. Major capital goods imported were electronic components and parts for machines ($1,531 million), transport equipment ($1,000 million) and electrical machinery ($778 million). Imports of mineral fuels, lubricants and related materials were valued at $2,962 million, comprising five per cent of total imports.

　　　　　Japan continued to be Hong Kong's principal supplier, contributing a 23 per cent share of overall imports. China was the second major supplying source, accounting for 17 per cent of total imports. China also supplied 45 per cent of total imported foodstuffs. Imports from Japan and China were valued at $14,405 million and $10,550 million respectively, showing corresponding increases of 25 per cent and 31 per cent. Imports from the United States, at $7,519 million, represented 12 per cent of the import share. Active increases were recorded in imports from the other sources includ- ing Taiwan, Switzerland, Britain, Israel and the Federal Republic of Germany.

Domestic exports consisted almost entirely of manufactured goods, emphasising the importance of the manufacturing industry to Hong Kong. The leading export, clothing, was valued at $15,709 million or 39 per cent of domestic exports, and registered a 13 per cent growth in 1978. The manufacture of textile yarn, fabrics, made-up articles and related products contributed seven per cent or $2,869 million of domestic exports. The other important domestic exports included watches and clocks ($2,734 million, seven per cent of the total), plastic toys and dolls ($2,596 million, six per cent), radio broadcast receivers ($1,523 million, four per cent), manufactures of metal ($1,124 million, three per cent), travel goods and handbags ($913 million, two per cent) and electronic components and parts for computers ($678 million, two per cent). The direction and level of Hong Kong's export trade are directly influenced by the economic conditions and commercial policies of its main overseas markets. During the year, 37 per cent or $15,125 million of domestic exports went to the United States, Hong Kong's largest overseas market, which registered a robust increase of 12 per cent over 1977. Domestic exports to the Federal Republic of Germany ($4,426 million, 11 per cent of total) and Britain ($3,871 million, 10 per cent) recovered considerably to record growth rates of 21 per cent and 28 per cent respectively. Export sales to the other markets also increased favourably, including Japan ($1,856 million), Australia ($1,494 million), Canada ($1,271 million), Singapore ($1,104 million), the Netherlands ($937 million), Switzerland ($683 million) and Nigeria ($581 million).

Re-exports increased significantly, accounting for 24 per cent of total exports. The principal commodities re-exported were machinery and transport equipment ($2,287 million), textile yarn, fabrics and made-up articles ($1,815 million), diamonds ($1,217 million) and watches and clocks ($874 million). Re-exports went mainly to the

HONG KONG PUBLIC LIBRARIES

INDUSTRY AND TRADE

Asian region which accounted for a 68 per cent share or $9,004 million of re-exports. Sizable increases were recorded in the re-exports to Japan (which reached a total of $2,282 million), Singapore ($1,390 million), Indonesia ($1,302 million) and the United States ($1,232 million). The main countries of origin of these re-exports were China, Japan and the United States.

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 under the umbrella of the Arrangement Regarding International Trade in Textiles, com- monly known as the Multi-Fibre Arrangement (MFA). A feature of the MFA is the Textiles Surveillance Body (TSB) which supervises its implementation. A Hong Kong representative sat on the TSB as a full member in 1977 and as an alternate member to the Republic of Korea in 1978.

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

　　　　　The current bilateral agreement with the European Economic Community (EEC) has a duration of five years from January, 1978, and covers all of Hong Kong's exports of cotton, man-made fibres and wool textiles to the EEC. Exports in 41 categories of textile products are under specific restraint, while exports in the remaining categories are subject to the Export Authorisation System operated by the Trade Industry and Customs Department.

A textile agreement between Hong Kong and the United States came into effect on January 1, 1978. The five-year agreement covers all of Hong Kong's exports of cotton, man-made fibres and wool textiles to the United States.

In 1978 Hong Kong held consultations with the United States, at the latter's request, on exports of non-rubber footwear from Hong Kong to the United States. As a result, exports of non-rubber footwear from Hong Kong became subject to export licensing as from October, 1978. Under this administrative arrangement, Hong Kong footwear for export to the United States must be covered by certificates of Hong Kong origin. However no quantitative limitation was imposed on exports.

　　　　　　Following the introduction by Norway of discriminatory restrictions on imports of certain textiles from Hong Kong at the beginning of the year, consultations were held between the two governments in May in an attempt to reach a mutually acceptable bilateral agreement. The consultations were inconclusive and Hong Kong referred the matter of the discriminatory restrictions to the GATT Council. On the council's recommendation, a further round of consultations was held at the end of June, after which Norway formally notified its decision to invoke Article XIX of the GATT and to introduce global import quotas on various textile items in 1979. As a substantial supplier of textiles to Norway, Hong Kong requested consultations with Norway

INDUSTRY AND TRADE

under the provisions of Article XIX of the GATT. These consultations were held in September, but failed to produce a mutual agreement on what Hong Kong considered its rights under the provisions of the GATT.

At the end of November, Norway notified the GATT Council of details of its action to be taken in 1979 under Article XIX. These were subsequently examined by Hong Kong to determine whether Norway's action was inconsistent with the provisions of the GATT and if so, what further action Hong Kong should take.

Work accelerated during 1978 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. Significant progress was made in the negotiations, especially in the second half of 1978. Hong Kong took an active part in several major areas.

Generalised preference schemes are operated by most developed countries to promote 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; but the form, coverage and other provisions differ from country to country. Hong Kong has been included as a beneficiary by all 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 Com- munity, Japan, Switzerland, Australia and Austria. Such difference in treatment is the subject of continuing official exchanges. Hong Kong has consistently made it clear to the countries concerned that it seeks no special advantages under these schemes; it only wants treatment similar to that accorded to close competitors.

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.

Steps are being taken to computerise the textile export control system to improve operational efficiency. In the initial phase, the control arrangements for the export of textiles to the United States are being computerised. The proving process was com- pleted in 1978. In 1979 consideration will be given to the next phase, which is the computerisation of the control arrangements for the export of textiles to the European Economic Community.

　　　　　　With Hong Kong's dependence on the export of manufactured goods - mostly made from imported materials - and on the substantial re-export trade, a certification of origin system to meet the requirements of overseas customs authorities is 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

INDUSTRY AND TRADE

exports covered by certificates of origin issued by these six organisations during 1978 was estimated at $14,380 million, of which $8,640 million was covered by government- issued certificates.

Form 'A' certificates are issued by the Trade Industry and Customs Department to support exports claiming preferential entry into countries that grant such treatment to Hong Kong under generalised preference schemes. These are Austria, Canada, the European Economic Community, Japan, New Zealand, Sweden, Switzerland and the United States. The authorised non-government certificate-issuing bodies have been approved to issue Form 'A' certificates for exports to Canada, Japan and Switzerland since the beginning of 1976 and to New Zealand as from June 1, 1978. The value of exports covered by Form 'A' certificates in 1978 amounted to $8,615 million.

　　　　　Although Britain abolished Commonwealth preferential rates of duty on July 1, 1977, 15 Commonwealth countries continue to grant Commonwealth preferential rates of duty to Hong Kong products. To support claims for 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 1978 was $60 million.

　　　　　An estimated 58.1 per cent of Hong Kong's domestic exports are covered by origin certificates of one type or another 43.4 per cent of them by government-issued certificates.

During the year, representatives of the Trade Facilitation Committee, a body advising the Director of Trade Industry and Customs and industrial and other organisations on standardising and simplifying trade documents and trade procedures, attended a series of international trade facilitation meetings in Europe and a regional trade facilitation conference in the Philippines. These provided opportunities for Hong Kong to learn from, and exchange views with, other bodies concerned with trade. documentation and trade procedures. One significant achievement of the Trade Facilitation Committee in 1978 was the completion of an aligned series of export document forms the 'Hong Kong Aligned Documents 1978 Recommendations' which are expected to be widely adopted by the trade.

Trade Industry and Customs Department

The responsibilities of the Trade Industry and Customs Department include the conduct of overseas commercial relations, industrial development and investment promotion, certification of origin, trade controls, the collection and protection of revenue from dutiable commodities, and the detection of contraband. 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 appointed by the Governor and usually meets once a month. The Textiles Advisory Board is a more specialised body, also chaired by the Director, that is consulted on

INDUSTRY AND TRADE

　　　　　matters affecting the textiles industry. It met on 33 occasions during 1978. 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 Depart- ment 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 four assistant directors, who head three 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.

　　　　　　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.

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 Commis- sioner of Industry, the Deputy Commissioner of Controls and Customs, and four assistant commissioners who head the Industrial Support Division, Industrial Develop- ment Division, Trade Controls Division and the Customs and Excise Service respec- tively.

　　　　　　The Industrial Support Division assists industry in its relations with other govern- ment departments and deals with specific issues affecting industry, such as infrastruc- ture and the health and safety standards set in Hong Kong's overseas markets.

The Industrial Development Division promotes overseas investment in local in- dustry by advising potential investors on Hong Kong's economy and infrastructure and assisting them in the evaluation and establishment of manufacturing projects in Hong Kong. The division encourages industrial co-operation between Hong Kong and overseas manufacturers, and liaises with the Hong Kong Trade Development Council and the Hong Kong General Chamber of Commerce in the organisation of industrial promotion programmes. It also advises the government on industrial land

matters.

The Trade Controls Division is responsible for certification and trade documenta- tion procedures, including an import and export licensing system for commodities other than textiles. It includes the Trade Investigation Branch which undertakes the regular inspection 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.

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The Administration Division is directly responsible to the Director of Trade Industry and Customs and services both the Departments of Trade and of Industry and Customs. It deals with personnel, financial and general management of the department as well as the administrative liaison with overseas offices.

The work of the Customs and Excise Service is described in detail in Public Order, 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 council 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 staff carried out an extensive trade promotion programme in 1978, organising around 40 major international projects. These included a VIP trade mission to Central and South America visiting Mexico, Panama and Venezuela. The mission culminated in a large week-long product display held in Caracas. The staff also participated in the organisation of the government-sponsored economic mission to Japan in Novem- ber, which included the Governor and the chairman and executive director among its members.

Other promotional projects mounted during the year included Hong Kong's participation in the Nuremberg International Toy Fair, Cologne International House- ware Fair, Cologne International Hardware Fair, Cairo International Trade Fair, Birmingham International Spring Fair, American Toy Fair, British Toy and Hobby Fair, Frankfurt Spring Fair, Spoga Fair, New York Jewellery Fair, Chicago Consumer Electronics Show and the New York Premium Show.

　　　　　The Trade Development Council organised business group visits to the Middle East on four occasions. Groups also toured Western and Eastern European countries and several African countries as well as the United States, Canada, Japan, Australia and New Zealand. Inward missions were also arranged for two groups of business- men, one from Middle Eastern countries and the other from Britain.

On the local scene the council organised the annual Ready-to-Wear Festival in January and the Toy and Gift Fair in October.

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 two-monthly news magazine, Hong Kong Trader. Two documentary films to promote Hong Kong's trade were produced during the year. The first film was designed to promote buyer attendance at the 1979 Hong Kong Ready-to-Wear Festival, while the second one was made to promote Hong Kong as a business and manufacturing centre.

INDUSTRY AND TRADE

Hong Kong Export Credit Insurance Corporation

Protecting Hong Kong's industrialists and merchants against the risks of not being paid for the goods and services they provide for overseas customers is the major function of the Hong Kong Export Credit Insurance Corporation (ECIC).

　　　　　　These risks arise from such customers' inability or unwillingness to pay because of bankruptcy, insolvency, default or repudiation, and include economic and political risks such as war, strikes, internal strife, blockage or delay of foreign exchange, cancellation of import licence and force majeure - in the country of destination, and in the countries through which these goods must pass to reach Hong Kong's

customers.

The corporation holds its policy holders indemnified for 90 per cent of their out- standing credits should such risks materialise. In addition the ECIC carries out a credit investigation and control function for its clients, and provides active support in resolving the payment difficulties they run into as well as advice on the economic position of their overseas markets.

　　　　　　The bankers of the ECIC's clients welcome this service as additional security for their advances to exporters. To encourage the export of capital goods, the corporation can make available to the exporter's banker its own unconditional guarantee, thus providing the bank with complete security.

As Hong Kong's official export credit insurer, the ECIC operates on commercial lines, on a break-even basis, taking one year with another. It markets its services like other enterprises do, and it is not compulsory for exporters to insure their outstanding credits abroad.

The corporation's protection is available to any company registered in Hong Kong, regardless of its origin or nationality. The corporation receives no subvention, it does not subsidise exports, and it is required to pay its own way. Its share capital of $20 million was provided by the government, which also guarantees the liabilities under- taken by the corporation in its insurance operations. This statutory guarantee stands at present at $2,000 million.

The corporation is guided in its operations by a 12-member advisory board, representing the government and the major private sectors of Hong Kong. Since 1968 it has been a member of the International Union of Credit and Investment Insurers (the Berne Union), which represents 35 fellow export credit insurers operating for the benefit of exporters in 27 major trading countries.

In 1978 the corporation insured some 150,000 shipments for more than 1,000 policy holders, representing Hong Kong exports worth more than $2,000 million. Diversifica- tion successes were noted; more insured exports went to Hong Kong's smaller markets, and the export of a growing range of more sophisticated products, such as cameras and domestic appliances, was protected by the corporation.

The premium received for the year ended March 31, 1978, amounted to $9 million, and in that year the 75 claims settled or provided for amounted to some $6.5 million. The corporation publishes a detailed annual report on its results.

The corporation is the only government-owned export credit insurer in the world which enjoys reinsurance facilities with one of the largest private reinsurance companies.

Hong Kong Productivity Council and Centre

INDUSTRY AND TRADE

The Hong Kong Productivity Council, a statutory organisation established in 1967, is responsible for promoting the increased productivity of industry in Hong Kong. The council comprises a chairman and 20 members, all appointed by the Governor. It is financed by an annual government subvention and by fees earned from services. The executive arm of the council is the Hong Kong Productivity Centre which provides technical help, industrial consultancy, and computer and economic research services to clients in industry. It also conducts a wide range of training programmes in industrial technology, management techniques and electronic data processing.

　　　　　　The centre's facilities include eight lecture rooms, a low cost automation unit, an industrial chemistry laboratory, a technical reference library and a computer system. An electronics unit has been set up to help upgrade the technology of this important industry and to promote the application of electronic equipment in process and quality control. Preparations are being made to establish heat treatment facilities in 1979. The United Nations Development Programme is providing technical assistance for the project.

　　　　　　An Industrial Development Division was set up during the year to concentrate on three major aspects: technical information services, techno-economic studies, and development projects which warrant priority attention in Hong Kong's industrial development such as environmental control services, waste treatment and recycling, and technology transfer.

　　　　　　The expansion of the centre's technical information services was marked by the publication of two specialised quarterly information bulletins on plastics and furniture. The publications, in English and Chinese, are being circulated to major manufacturers in the two industries in Hong Kong, as well as to interested parties overseas. The bulletins are complemented by the provision of a comprehensive literature research, technical enquiry and consultancy service. Acting as an agent for one of the inter- national technology transfer organisations, the centre introduced licensing, sub- contracting and other business opportunities to industrialists through the medium of a quarterly publication.

　　　　　　A start has been made in tackling productivity problems in various industry sectors. Following the setting up of the Federation of Hong Kong Furniture Manufacturers, the centre, in collaboration with other industry support organisations, began a pro- gramme to assist this industry to improve its productivity and export performance. Recognising the important role of the foundry industry in the industrial development of Hong Kong, the centre carried out a survey to identify the market for castings and to assess the potential for improving the technical capability of the industry.

During 1978, the centre conducted more than 300 training programmes and provided 2,800 man-days of consultancy and technical help. In keeping with the government's effort to attract investment in manufacturing industries, the centre played an important role in providing much-needed technical support services to industrialists establishing production operations in Hong Kong.

The centre organised two industrial exhibitions on production machinery and equip- ment, and four overseas study missions. The 1978 edition of the Directory of Hong Kong Industries, a salary report and industry data sheets were published.

INDUSTRY AND TRADE

As a member of the Asian Productivity Organisation (APO), Hong Kong was represented at the 1978 workshop meeting of national productivity centres in Nepal, and at the governing body meeting in Seoul. The APO Director of Hong Kong was elected the second vice-chairman of the APO for 1978.

　　　　　　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 Industrial Development Research Centre of Canada (IDRC). During the year, the centre transferred its membership of the Federation of International Documenta- tion (FID) to the Hong Kong Polytechnic library, but agreed to retain its membership of the FID Sub-committee on Information for Industry.

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 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 train- ing courses for in-service designers and promotes annual design competitions. The federation also established the Hong Kong Packaging Council to promote the develop- ment of packaging education and technology, and the development of skills and expertise in packaging.

　　　　　　The federation's Hong Kong Standards and Testing Centre provides testing, inspec- tion, 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 de- velopment 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 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. As part of its trade promotion activities, the association runs a Hong Kong products display centre.

Consumer Council

The Consumer Council protects and promotes the interests of consumers of goods. and services.

INDUSTRY AND TRADE

　　　　　The council, which comprises a chairman and 14 members, is appointed by the Governor from a wide cross-section of the community. The executive director is an ex-officio member of the council. The council maintains an office with a staff of 48 and is financed from general revenue.

　　　　　During 1978 the council received 5,948 complaints, representing an increase of 29 per cent over the figure for the previous year. Complaints were mostly about the quality of commodities sold and services rendered, over-charging, misrepresentation and late delivery, covering many household products, electrical appliances, photo- graphic and sound equipment, and travel services.

　　　　　　The council's three Advice Centres dealt with about 1,400 enquiries a month by individual consumers during 1978. Advice was mostly concerned with pre-shopping consultation, particulars about individual types of products and their availability, and so on.

　　　　　　The council conducts regular price surveys and research projects into areas of in- terest to consumers. During the year, reports were submitted to the government on the truncation of films by film distributors and on the operations of travel agents in Hong Kong. An ad hoc committee formed to study the charges of funeral homes was preparing a final report. A survey on the use of the metric system of measurement in consumer activities was conducted by the council on behalf of the Metrication Committee.

The council has continued to conduct tests on various consumer goods to assess their performance, quality and value for money. The results of the tests are published in the council's monthly magazine, Choice, which is becoming increasingly popular. During 1978, tests were carried out on cameras, milk products, oyster sauce, soy sauce, air-conditioners, ball-point pens, typewriters, tea bags, water heaters, light bulbs, dry cell batteries, emulsion paints, and other items.

In consultation with the Education Department, the council produced materials for consumer education in schools, and these are now used in the social studies syllabus of some schools. The council maintains constant contact with the news media to educate the public on consumer matters and on their rights and responsibilities as consumers. In December, the council organised its third annual consumer education seminar, which was attended by some 400 people.

Apart from co-ordination work with various government departments, the council continued to encourage business and professional associations to establish voluntary codes of practice for the benefit of the consumer. The Consumer Council is a council 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 1978, 4,162 applications were received and 1,632, including many made in previous years,

INDUSTRY AND TRADE

were accepted and allowed to be advertised. A total of 1,840 marks were registered. The principal countries of origin were:

Hong Kong

United States

Japan

United Kingdom

France

487

West Germany

393

Switzerland

250

Australia

176

The Netherlands

117

Singapore

114

22222

The total number of marks on the register at December 31, 1978, was 33,695.

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 the 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 758 patents were registered during the year, com- pared with 638 in 1977.

A Patents Working Party, set up by the government in March, 1978, held its first meeting on June 7, 1978. It was decided at the meeting to invite interested parties to submit written comments under the working party's terms of reference, which were published in the South China Morning Post and Wah Kiu Yat Po on June 28 and 30, 1978.

Companies

The Companies Registry of the Registrar General's Department keeps records of all companies incorporated in Hong Kong and 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 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 imple- menting other recommendations of the committee. It is expected that a lengthy bill incorporating most of the recommendations in the committee's Second Report, which have not been implemented already by legislation, will be presented to the Governor in Council during 1979.

On incorporation, a company pays a registration fee of $300, plus $4 for every $1,000 of nominal capital. In 1978, 8,846 new companies were incorporated - 2,058 more than in 1977. The nominal capital of new companies registered totalled $3,338 million. Of the new companies, 137 had a nominal share capital of $5 million or more. During the year, 2,486 companies increased their nominal capital by amounts totalling $7,748 million, on which fees were paid at the same rate of $4 per $1,000. At the end of 1978, there were 57,945 local companies on the register, compared with 49,896 in 1977.

INDUSTRY AND TRADE

The Companies (Amendment) Ordinance 1978, which came into force on July 7, 1978, implemented several recommendations of the Second Report (1973) of the Com- panies Law Revision Committee. These included: the extension of the power to dispense with the word 'Limited' in the name of companies about to be formed to companies already registered; the protection of interests of minority shareholders; and the exemption of solicitors, professional accountants, stock exchange members and other partnerships of a kind prescribed by the Governor in Council from the limitation on the number of partners imposed by the principal ordinance.

　　　　　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, 182 such companies were registered and 60 ceased to operate. At the end of 1978, 1,131 com- panies were registered from 50 countries, including 291 from the United States, 148 from Britain and 130 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 Com- panies 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 330 insurance companies, including 163 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.

　　　　　　From February 1, 1978, all insurance companies also had to comply with the provi- sions of the Insurance Companies (Capital Requirements) Ordinance 1978. This ordinance restricts the commencement of life, fire, marine or motor vehicle insurance business to companies formed or registered under the Companies Ordinance which have an issued capital of not less than $5 million fully paid up in cash. Companies which, prior to February 1, 1978, had met the then existing statutory requirements for the carrying on of those classes of insurance business, but had not yet commenced to carry on such business, and companies and members of Lloyds fully authorised to carry on similar lines of insurance business in Britain are, however, exempt from the restrictions of this ordinance.

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

Bankruptcies and Liquidations

　　　　　In Hong Kong, the number of business failures leading to formal insolvency proceed- ings in court is always comparatively small in relation to the total number of businesses closing down. During the year, there were 43 petitions in bankruptcy and 94 petitions for the compulsory winding-up of companies. The court made 41 receiving orders, two administration orders, and 71 winding-up orders. As in past years, the Official Receiver

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was appointed trustee or liquidator in almost every case. Assets realised by the Official Receiver during 1978 amounted to some $30 million. In addition to these compulsory windings-up, 396 companies went into voluntary liquidation 381 by members' voluntary winding-up and 15 by creditors' voluntary winding-up.

The Companies (Amendment) Ordinance 1978, which came into force on July 7, included certain amendments relating to liquidations, although these amendments were essentially in the context of protecting the interests of minority shareholders. Likewise, the Companies (Winding-up) (Amendment) Rules 1978, which were made by the Chief Justice on July 18, provided for the procedure applicable to petitions under the new Section 168A of the Companies Ordinance (protection of minority shareholders).

Financial Structure

黑

THE development of Hong Kong as an international financial centre was strengthened by the introduction, in March, of a new policy permitting well-established foreign banks to apply for licences to conduct banking business and operate as branches, rather than using non-bank subsidiaries. By the end of the year 27 new banking licences had been issued to foreign banks. At the same time, as available evidence indicated deposit-taking companies are dependent to a substantial degree on licensed banks as a source of funds, proposals were put forward to extend supervisory arrange- ments to deposit-taking companies, similar to those presently exercised over banks.

Further developments included the expansion of the foreign exchange market in Hong Kong, which now includes some 40 active institutions together with a number of international broking firms; the issue of certificates of deposits; the issue by the Mass Transit Railway Corporation of five-year government-guaranteed notes; and the provision of mortgage finance on favourable terms by commercial banks in connection with the Home Ownership Scheme. During the year, legislation was enacted to extend the charge to profits tax on banks and other financial institutions to include interest which a banking business operating in Hong Kong obtains, without the substantial intervention of any branch elsewhere. The Stamp Ordinance was reformed by reducing its ambit so that it applies to only three major sources of duty - contract notes on shares and marketable securities, assignments of immovable property, and leases and assignments of leases. With the abolition of stamp duty on foreign exchange trans- actions, it was possible to abolish the need to license money changers.

Further expansion of the Monetary Affairs Branch of the Government Secretariat, including a number of new posts in the Commissioner of Banking's Office, was neces- sary to enable the government to effectively discharge its role in relation to the rapidly growing financial sector.

How Hong Kong Works

With the ultimate authority resting with the Legislative Council, Hong Kong has almost complete autonomy in financial matters 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 $1,236 million for the 1977-8 financial year.

FINANCIAL STRUCTURE

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. This expenditure is financed mainly through Urban Council rates and from other sources of revenue, such as fees and charges for 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 Ordinance, the authority is required to ensure that its income - derived mainly from rent and other sources - is sufficient to meet its recurrent expenditure on the manage- ment of public housing estates. In providing new housing estates under the govern- ment'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. Where its cash flow is inadequate to meet construction costs, the authority may borrow from the Development Loan Fund. Loans amounting to $300 million made to the authority for this purpose up to March 31, 1976, have been converted into a govern- ment contribution towards the provision of public housing in Hong Kong.

　　　　　The Housing Authority is also responsible for squatter control, the clearance of squatters from Crown land required for development, and the development of tem- porary housing areas. The cost of these activities is met in full from general revenue. The authority is the agent of the government in designing, constructing, marketing and managing the flats and commercial facilities under the Home Ownership Scheme; the flats are financed through the Home Ownership Fund, while the commercial facilities are financed from the Development Loan Fund.

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 respectively a series of surpluses, some of them substantial, were accumulated in the years up to and including 1977-8. Such reserves are required to secure the govern- ment'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 increases in tax rates because of exceptionally rapid increases in population and, consequently, in economic activity. Revenue expanded more than 30 times from $309 million in 1951-2 to $9,534 million in 1977-8. 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 however has been strong and continuous.

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

FINANCIAL STRUCTURE

welfare and university and polytechnic grants. But during 1975-6, 1976-7 and 1977-8, growth resumed and the accounts again returned to surplus. In 1977-8, revenue at $9,534 million (compared with the original estimate of $7,513 million) exceeded net expenditure (actual $8,298 million - original estimate $7,483 million) for the year by $1,236 million. Revenue and expenditure for the years 1976-7 and 1977-8, together with the estimates for 1978-9, 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 1978-9 the estimated revenue is $9,436 million and net expenditure $9,456 million, giving an estimated deficit of $20 million for the year.

Assets, Liabilities and Funds

At March 31, 1978, net available public financial assets were $4,948 million, while the public debt was equivalent to some $382 million - about $83 per head of population. Indebtedness decreased some $14 million during 1977-8, principally due to the repay- ment of the outstanding balance of government's 34 per cent Rehabilitation Loan issue amounting to $45 million on January 14, 1978, offset by drawings of $27 million from the Hongkong and Shanghai Banking Consortium loan facility. 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.

　　　　　　In addition to these assets and liabilities, there is a Development Loan Fund, a Home Ownership 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 $902.2 million at March 31, 1978. 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. However during the year, an amount of $36.1 million was allocated as interest-free loans to 10,400 students at universities, the polytechnic, and a post-secondary college. At March 31, 1978, liquid assets totalled $214.5 million and outstanding commitments, $1,472.5 million.

　　　　　　The Home Ownership Fund was established in 1977 to finance the construction of flats for sale to the public under a scheme designed to promote home ownership among families with a specified income level. A total of $587.1 million was transferred to the fund from general revenue during the 1977-8 financial year to meet land premia, building construction costs and other charges. At March 31, 1978, the fund's liquid assets totalled $35.3 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 $106.4 million was credited between 1965 and 1978 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, 1978, grants and loans amounting to $92.9 million had been approved.

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

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multifarious 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 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. It also prescribes certain safeguards against his dismissal or premature retirement.

　　　　　　　The year was marked by the establishment of a Public Accounts Committee of the Legislative Council, comprising a chairman and six members, all of whom are Unofficial Members of the Legislative Council nominated by the Governor. The committee is empowered under the Standing Orders of the Legislative Council to consider reports by the Director of Audit on the accounts of the government, on such other accounts required to be tabled in the Legislative Council as the committee thinks fit, and on any matter incidental to the performance of the Director of Audit's duties or the exercise of his powers. In the operation of its authority, the committee may call any public officer or other person concerned to give information and explanations and to produce such documents and records it may require.

The report by the Public Accounts Committee on the Director of Audit's report relating to the accounts of the government is tabled in the Legislative Council at the same time as the Director of Audit's report. Both reports are transmitted to the Secretary of State.

Duties

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

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On liquors, the basic duty rates (based on British imperial units) range in equivalence from $0.60 a litre on Hong Kong-brewed beer to $27.06 a litre on brandy. On tobacco, rates range in equivalence from $8.16 a kilogram on Chinese-prepared tobacco to $44.42 a kilogram on cigarettes. Rates on hydrocarbon oils are equivalent to $0.35 a litre on diesel oil for road vehicles and $0.48 a litre on motor and aircraft spirits. The rate for methyl alcohol is equivalent to $2.18 a litre.

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

Rates

Rates are levied on the occupation of landed property at an annual percentage of the assessed rateable value. The rateable value is, briefly, the annual rent at which a property might reasonably be expected to be let. The annual percentage is determined by resolution of the Legislative Council and, since April 1, 1977, has been 11 per cent in the urban areas, with lower percentages in the New Territories. This rate is apportioned as 72 per cent to general revenue and four per cent to the Urban Council. Urban Council rates are not levied in the New Territories because the council does not operate there. Although rating does not extend to all areas in the New Territories, it is government policy to bring all developed and developing parts of the New Territories into assessment by a phased programme. The fifth phase of this programme came into

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effect on April 1, 1978, completing the mainland sector. The final phase, covering certain outlying islands, is scheduled for 1980.

New valuation lists are prepared periodically, as ordered by the Governor, enabling assessments to be reviewed and rateable values to be updated in line with current market levels. The last review of rateable values was carried out in 1976. It resulted in greatly increased rateable values for almost all rated property included in the lists which came into force on April 1, 1977. To cushion the impact of the increase on ratepayers, the annual percentage charges were substantially reduced and a scheme of rate reliefs introduced, whereby no ratepayer will pay in the 1977-8 and 1978-9 financial years an increase of more than 33 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 which, due to a change in the basis of assessment, occurred in many instances.

Rates are payable quarterly in advance and the law imposes penalties for late payment. Exemptions from rates are few. However the government generally provides financial assistance towards the payment of rates to non-profit-making educational, charitable and welfare organisations if 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 valuation lists are continually growing in size to keep pace with building development, and the number of assessments now exceeds 500,000 with a total rateable value of more than $10,000 million. The estimated rates revenue for 1978-9 is $1,163 million, of which about $368 million will go to the Urban Council.

Internal Revenue

The taxes and duties making up internal revenue are collected by the Inland Revenue Department and consist of Earnings and Profits Tax, Estate Duty, Stamp Duty, Entertainments Tax, Betting Duty, Hotel Accommodation Tax and Business Regis- tration fees. Internal revenue is estimated to yield $5,070 million in the 1978-9 financial year, representing about 50 per cent of Hong Kong's expected total revenue and receipts for 1978-9.

Earnings and Profits Tax is levied under the Inland Revenue Ordinance upon speci- fied sources of income arising in or derived from Hong Kong namely business profits, salaries, property and interest. The current standard rate of 15 per cent has been in force since April 1, 1966. It is estimated that the taxes on earnings and profits will yield $3,990 million in the 1978-9 financial year.

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. 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 are also 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, that is, income after deduction of personal allowances. However,

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the overall effective rate of tax is limited to 15 per cent of the income before deducting personal allowances. These allowances are for the taxpayer $10,000; his wife $10,000; his first child $4,000; his second child $3,000; his third child $2,000. The allowance for the fourth to sixth child is $1,000 each, and for the seventh to ninth child $500 each. Single and married taxpayers are given an additional personal allowance of $2,500 and $5,000 respectively; however this allowance is 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 expenses necessarily incurred in production of the income, and charitable donations up to 10 per cent of assessable income, there are no other allowances.

Property Tax is charged at the standard rate on the owner of land and/or building in Hong Kong by reference to estimated rental values. However 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 by the government, licensed banks and public utilities, not exceeding 34 per cent per annum, is exempt. This rate has been effective since October 30, 1978, in the case of the government and licensed banks, and March 1, 1975, in the case of public utilities.

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.

Estate Duty is imposed on that part of a deceased person's estate which is 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, 1979, is estimated at $120 million.

　　　　　　With effect from March, 1978, Stamp Duty has been abolished on bank notes, cheques and bills of exchange, exchange contract cancellation notes, bonds, mortgages and deeds generally. Stamp Duty is now limited to duty on assignment of immovable property, leases, and share contract notes and transfers. The estimated yield for the year ended March 31, 1979, is $395 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 1978-9 is $28 million.

Betting Duty is imposed on bets made on authorised totalisators or pari-mutuels and on the proceeds of Mark Six lotteries conducted by the Royal Hong Kong Jockey Club on behalf of the Hong Kong Lotteries Board. The rate of duty is charged at

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either 74 per cent or 11 per cent, depending on the type of bet placed, and at 25 per cent on the proceeds of lotteries. The duty on bets and lotteries is recovered from the Royal Hong Kong Jockey Club which holds the monopoly for conducting such opera- tions, including off-course betting. The estimated yield for the year ending March 31, 1979, is $480 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 1978-9 financial year, this tax is estimated to yield $21 million.

Business Registration is compulsory for every company incorporated in Hong Kong, every overseas company with a place of business in Hong Kong and every business. operating in Hong Kong, except those carried on by charitable institutions. The annual registration fee is $150 but exemption from payment of the fee is granted where the business is small. The total income from these fees, service fees for copies of docu- ments and other fees for the 1978-9 fiscal year is expected to be $36 million.

Monetary System

　　　　　Bank notes are issued by two commercial banks - the Hongkong and Shanghai Banking Corporation and the Chartered Bank. Legislation empowering the Mercan- tile Bank to issue notes was repealed during the year. Mercantile Bank notes still in circulation are now legally the obligation of the Hongkong and Shanghai Banking Corporation which has taken over the Mercantile Bank's authorised note-issuing powers. Coins of $5, $2, $1, 50 cents, 20 cents, 10 cents and five cents and currency notes of one cent denomination are issued by the government. A new, smaller $1 coin was introduced in August as the last stage in the reform of Hong Kong's coinage recommended by the Coinage Review Committee in 1974. Consideration was also given to replacing the existing 10 cent coin. The third of a series of $1,000 gold coins to commemorate the Chinese Lunar New Year was issued early in 1978. The total currency in nominal circulation at the end of 1978 and details of its composition are shown in Appendix 11.

Hong Kong has no central bank but its bank notes, although issued by commercial banks, are backed by the Exchange Fund, a government account set up in 1935 when the Hong Kong dollar ceased to be based on silver. The Exchange Fund is managed by the Monetary Affairs Branch of the Government Secretariat. 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 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 re- sources 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 overseas assets held by the General Account as well, were in sterling. But since then, sterling holdings have been progressively diversified. Sterling now accounts

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for less than 15 per cent, with the balance in United States dollars and other major currencies.

Since April 1, 1976, the fund has also 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 certifi- cates denominated in Hong Kong dollars. The debt certificates issued to the General Account bear interest at appropriate market rates, but no interest is paid on certifi- cates held by the Coinage Security Fund because all coin issue maintenance costs are charged to the Exchange Fund. 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 established for the purpose of regulating the exchange value of the currency of Hong Kong. Consequently, the general revenue balance in the government's statement of assets and liabilities only reflects the difference between the government's cash receipts and payments. Since September, 1978, there has been a gradual transfer of the Hong Kong dollar balances of the General Account, apart from working balances, to the Exchange Fund. When this transfer has been completed the bulk of the government's financial assets will be held by the fund, which will effec- tively become banker to the Treasury.

　　　　　　The exchange value of the Hong Kong dollar was established in 1935 at 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 however was not a statutory one and it was established and maintained by the operations of the Exchange Fund in conjunc- tion with the note-issuing banks. It weakened after the devaluation of the pound in November, 1967, and 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.

During 1978 the overall value of the Hong Kong dollar in terms of the currencies of Hong Kong's major trading partners, as measured by a trade-weighted index, declined by some 12.6 per cent. At the end of 1978, its value was about 11.7 per cent lower than in the period immediately before the dollar floated in November, 1974. The decline reflected the wider trade deficit, itself the product of substantially more rapid growth in the domestic sector of the economy than in the export sector, and higher United States dollar interest rates.

At the end of 1978 the middle market rate for the United States dollar was about HK$4.80=US$1. Since the beginning of 1973, transactions between Hong Kong and overseas countries have been free of all exchange control restrictions.

Banking

Banks are licensed in Hong Kong under the Banking Ordinance which provides for their supervision and inspection by a Commissioner of Banking and imposes certain

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　　　　　minimum requirements on capital and liquidity. Only licensed banks and represen- tative offices of foreign banks may use the word 'bank'.

In 1965, a moratorium on the issue of new banking licences was imposed. Only one new licence was issued before the Financial Secretary announced on March 15, 1978, that consideration would be given to applications for banking licences from well-established foreign banks meeting a number of criteria relating to size and back- ground. Since the announcement, 27 new banking licences have been issued and by the end of 1978, there were 101 licensed banks in Hong Kong. At the end of 1978, there was a total of 878 banking offices and 106 representative offices of foreign banks.

　　　　　　Foreign bank-owned finance companies and other non-bank financial institutions which take deposits from the public are required to register under the Deposit-taking Companies Ordinance, which came into effect in April, 1976. At the end of 1978, 241 such companies were registered.

The money supply, broadly defined to include all bank deposits and notes and coins held outside the banking system, increased during 1978 by 26 per cent to $73,406 million at December 31. The major factor was a substantial increase in domestic loans and advances which rose by 43 per cent to reach $52,814 million. Banking statistics for the past three years are shown in Appendix 12.

Securities

Discussions between Hong Kong's four stock exchanges on proposals to merge into one exchange led in May, 1977, to the setting up of a Working Party on Unification with the stated aim of agreeing to a timetable to bring about the unification of the stock exchanges. During 1977 and 1978 the working party had 11 meetings and negotiations are continuing.

Staff of the Office of the Commissioner for Securities continued to scrutinise finan- cial transactions involving securities and to monitor unusual movements in share prices. More than 30 enquiries were instituted during the year resulting, in some cases, to changes in company plans and fuller disclosure of information to the investing public.

It is one of the functions of the Office of the Commissioner for Securities to investi- gate possible instances of insider dealings in securities to establish whether there is a prima facie case to be examined by the Insider Dealing Tribunal. The tribunal was not convened in 1978.

A revised edition of the Hong Kong Code on Takeovers and Mergers was published in May, 1978. Based on the original 1975 version, the revised code incorporates im- provements and amendments aimed at eliminating areas of ambiguity. During the year there were eight instances where control of a company changed hands. These included three outright takeovers, a rationalisation of four interlinked companies into one, and two changes of control where it was intended to retain the stock exchange listing. In addition, there were eight occasions when minority shareholders were bought out.

　　　　　　The Hong Kong Code on Unit Trusts and Mutual Funds came into force in June, 1978. The code is administered by the Committee on Unit Trusts, which is chaired by the Commissioner for Securities and includes representatives of the unit trust industry.

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The committee is also responsible for advising the Securities Commission on applica- tions for authorisation. The granting of authorisation by the Securities Commission to unit trusts and mutual funds is conditional on compliance with this code. Without it, a unit trust or mutual fund may not be marketed to the public in Hong Kong.

The combined Stock Exchanges Compensation Fund - established to compensate those who suffer financial loss as a result of defaults by stockbrokers - amounted to $24 million at December 31, 1978. No payments were made from this fund during the year. Deposits lodged by dealers other than stockbrokers stood at $6.7 million; the purpose of these deposits is to give limited protection to investors against a defaulting dealer who is not a member of a stock exchange. However, unlike the Compensation Fund, the dealers' deposits are not pooled. Both funds showed a sur- plus in the fiscal year to March 31, 1978. Some $1.8 million was subsequently dis- tributed proportionately to the four stock exchanges in respect of the surplus on the Compensation Fund, and some $296,000 was paid out to depositors in respect of the surplus on the Dealers' Deposit Fund.

At the end of 1978, 2,078 people were registered under the Securities (Dealers, Investment Advisers and Representatives) Regulations 1974. They included: 100 corporate dealers; 1,017 individual dealers including 906 stockbrokers on the four stock exchanges; 65 corporate investment advisers; 111 individual investment advisers; 717 dealers' representatives; and 68 investment representatives. During the year, 26 corporations were declared exempt dealers and seven corporations were declared exempt investment advisers.

The turnovers for 1978 reported on the four exchanges were: Far East Exchange, $13,728.25 million; Hong Kong Stock Exchange, $5,356.04 million; Kam Ngan Stock Exchange, $8,253.08 million; and Kowloon Stock Exchange, $120.52 million. The total of $27,457.89 million is an increase of 348 per cent on the previous year's figure.

Commodities Trading

The Hong Kong Commodity Exchange Limited is the only company which has been granted a licence to operate a commodity exchange in Hong Kong since the enactment of the Commodity Exchanges (Prohibition) Ordinance in 1973. It commenced business. on May 9, 1977. During 1978, business in the cotton and sugar markets remained moderate as the exchange's activity has been affected by the absence of any sharp movements in international cotton and sugar prices. To increase business, the exchange has been considering plans to add new commodities to the list of those currently traded.

At the end of 1978, 619 people were registered under the Commodities Trading (Dealers, Commodity Trading Advisers and Representatives) Regulations 1976. They included 118 commodity dealers (43 corporate dealers and 75 individual dealers), of which 40 corporate dealers and nine individual dealers were share holders of the Hong Kong Commodity Exchange; 476 commodity dealers' representatives; five corporate commodity trading advisers; nine individual commodity trading advisers; and 11 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 $2.9 million at the end of the year.

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　　　　　Deposits lodged by dealers other than those members of the Hong Kong Commodity Exchange stood at $400,000. 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 68-year-old Chinese Gold and Silver Exchange Society consists of 195 member firms (individuals cannot hold seats). Membership is currently closed.

　　　　　　Trading in gold remained very active during the year in line with the general trend of expansion in the international gold trade. The Hong Kong gold market is now the third largest in the world, after London and Zurich. The usual trading lot is 100 taels consisting of 20 five tael bars, with one tael being equal to 37.4290 grams of 99 per cent pure gold. The time zone position enables the Hong Kong market to trade while Europe is closed down and it completes the global 24-hour trading link between New York, London and Zurich.

　　　　　　On June 22, 1978, the exchange re-opened its silver market which had remained closed since the Pacific War. Each contract in the local market is of 5,000 ounces for New York delivery, priced in Hong Kong dollars. Prices are quoted for every 10 ounces of 99.9 per cent fine silver and a minimum fluctuation of five cents is provided for in the quotes. The trading procedure is the same as that for gold but delivery is based in New York and is handled by the Irving Trust and Co. and the Wing Hang Bank Consortium. With the resumption of silver trading in Hong Kong, a 24-hour global chain of silver trading was established.

HARG

Employment

FURTHER increases in wages were received by Hong Kong's industrial work-force during 1978, while 11 more items of labour legislation were enacted to provide generally for higher standards in the safety, health and welfare of workers. This brings to 143 the total number of items of labour legislation carried through in the past

10 years.

　　　　　Recent legislation has included provisions for seven days' paid annual leave after 12 months' continuous employment, the introduction of more industrial safety regulations and the further reduction of permitted overtime for young people.

　　　　　　Significant amendments to the Workmen's Compensation Ordinance in 1978 in- cluded a widening of the coverage of non-manual workers by raising the wage-ceiling from $2,000 to $5,000 a month, provisions for a surcharge to be imposed on delayed payments of workmen's compensation, and provisions for the establishment of a special workmen's compensation scheme for workers suffering from silicosis and asbestosis.

　　　　　Safety in the industrial working environment was stepped up by amendments to regulations to provide for improvements in the maintenance and safe use of lifting appliances and lifting gear, and safety on construction sites.

Amendments also were made to update the Boilers and Pressure Receivers Ordin-

ance.

　　　　　　Further improvements to the Employment Ordinance were under consideration during the year, including the raising of its wage ceiling applicable to non-manual employees from $2,000 to $5,000 a month.

The total working population recorded in the 1976 by-census was 1,867,480, com- prising 1,209,590 males and 657,890 females. The distribution of the work-force was: agriculture, forestry, hunting and fishing, 48,500; mining and quarrying, 1,020; manu- facturing, 845,920; electricity, gas and water, 9,710; construction, 104,040; wholesale and retail trade, and restaurants and hotels, 361,680; transport, storage and com- munication, 136,180; financing, insurance, real estate and business services, 62,090; community, social and personal services, 284,970; and unclassifiable activities, 13,370. In December, 1978, a total of 800,026 people were engaged in 39,606 establishments in the manufacturing sector. Some 363,460 - the largest section of the labour force -- were engaged in the textile and wearing apparel industries. The electrical industry and the plastics industry were the next two largest employers. Details of the distribu- tion of manufacturing establishments, and of people engaged in them, are given in Appendices 13 and 14.

EMPLOYMENT

　　　　　The bulk of the manufacturing work-force is concentrated in the urban areas of Hong Kong Island, Kowloon and New Kowloon. But industrial development in the New Territories is increasing and about one-quarter of the total manufacturing work- force is now employed there. Although most workers are engaged in modern manu- facturing processes, traditional village industries still provide some employment.

Wages and Conditions of Work

There is no legal minimum wage in Hong Kong and the wage level prevailing is essentially the result of an interplay of the economic forces of supply and demand. Wages are usually calculated on an hourly, daily or monthly basis or, alternatively, on piece-rates which are customarily paid every 10 or 15 days. Most semi-skilled and unskilled workers in the manufacturing industries are piece-rated, although daily rates of pay also are common. Monthly-rated industrial workers are usually employed in the skilled trades or in technical and supervisory capacities. Men and women receive the same rates for piece-work, but women are generally paid less when working on a time basis.

　　　　　Wages of industrial workers continued to increase during 1978. By September, average daily wages (excluding fringe benefits) had increased by 56 per cent on the base period of July, 1973, to June, 1974. During the same time, the cost-of-living index went up by 25 per cent, thereby giving an increase of 25 per cent for the index of real average daily wages.

　　　　　Daily wages in the manufacturing industries in September, 1978, ranged from $26.10 to $76.80 for skilled workers; $19 to $52.60 for semi-skilled workers; and $18 to $37.10 for unskilled workers. Many employers provide workers with sub- sidised meals or food allowances, good attendance bonuses, paid rest days, free medical treatment, and a Lunar New Year bonus of one month's pay or more. Some employers provide, in addition, free or subsidised accommodation and transport.

A consumer price index (A), based on a household expenditure survey conducted during the period July, 1973, to June, 1974, is compiled as an indication of the effect of price changes on households spending $400 to $1,499 a month. In December, 1978, this index stood at 127 (see Appendix 16). A consumer price index (B) is also compiled to show the effect of price changes on households spending $1,500 to $2,999 a month. On January 1, 1978, the Employment (Amendment) (No. 3) Ordinance 1977 came into effect, providing for all employees covered by the ordinance to have seven days' annual leave with pay after 12 months' employment under a 'continuous contract' with the same employer. Compliance with the new legislation was, on the whole, satisfactory. In the light of practical experience, a review of the legislation was conducted towards the end of the year, with a view to introducing certain minor amendments to improve its operation.

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. They cannot be employed for more than five hours continuously without a meal or rest break. In the case of women and young people aged 16 and 17, this break must be at least 30 minutes and in the case of young people aged 14 and 15, it must not be less than one hour. Neither group can work more than six days a week. In addition, the regulations limit overtime employment

EMPLOYMENT

for women to 200 hours a year. Since January 1, 1977, there has been legislation to reduce overtime employment 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.

Children under the age of 14 are not allowed to be employed in industry. In 1978, labour inspectors made 128,684 day and night inspections of industrial undertakings. In addition, three special campaigns against child employment were mounted in 16,126 factories. During the year, 336 cases involving 348 children were brought before the courts.

　　　　　Women and young people are prohibited from working at night, underground or in dangerous trades. Since 1970, some 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.

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　　　　　Although there are no legal restrictions on hours of work for men, it is common for men employed in industry to work eight or nine hours a day. Restrictions on the hours of work for women and young people in industry have, in most cases, resulted in shorter working hours for men employed alongside women and young people. Government employees and those working for better employers in the private sector may work shorter hours, but usually about seven hours a day. Under the Factories and Industrial Undertakings Regulations, no man may be employed to work under- ground in mines, quarries and industrial undertakings involving tunnelling operations unless he is first medically examined and certified fit for such work. Those under the age of 21 have to be medically re-examined at yearly intervals.

Trade Unions

With the exception of a growing independent segment, employee unions are either affiliated to, or associated with, one of two local federations registered 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 organisa- tions.

　　　　　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 76 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 Hong Kong and Kowloon Trades Union Council is affiliated with the International Con- federation of Free Trade Unions.

There are 146 independent unions, some of which continue to make improvements in their internal administration and in the services offered to members.

The statutory requirements covering the registration and control of trade unions are specified in the Trade Unions Ordinance administered by the Registrar of Trade Unions.

EMPLOYMENT

　　　　　　Of the 384 unions on the register at the end of the year, 327 were employee unions with an estimated membership of 407,400. A further 42 were merchant or employer organisations with an estimated membership of 4,610, and 15 were mixed organisa- tions with an estimated membership of 5,780.

Labour Administration and Services

The Labour Department has an establishment of 1,219 and its services are con- tinually expanding. Branch offices in the urban areas and the New Territories - all conveniently located - deal promptly with labour matters raised by local employers and employees.

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

The Labour Department initiates labour legislation. It also ensures that Hong Kong's obligations under international labour conventions are observed. The depart- ment is made up of 11 divisions: administration, apprenticeship, development, employment services, employment conditions, industrial health, workmen's com- pensation, training council, industry, labour relations and mines.

　　　　　　The Labour Relations Ordinance, which came into effect in 1975, provides machin- ery for special conciliation, voluntary arbitration and boards of inquiry for settling trade disputes that cannot be resolved through ordinary conciliation. Since the ordin- ance came into operation, most of the 501 trade disputes have been settled by ordinary conciliation. It has not yet been found necessary to invoke special conciliation or to refer any trade dispute to arbitration or a board of inquiry.

　　　　　　In 1978 the Labour Relations Service dealt with 9,462 labour problems, most of which were grievances involving individuals with claims for wages in arrears, severance pay, wages in lieu of notice, annual leave pay and holiday pay. There were 51 work stoppages. The number of working days lost in these disputes totalled 30,927, com- pared with 10,814 in 38 work stoppages in 1977.

The Labour Tribunal, which is part of the Judiciary, has functioned successfully since its inception in 1973. The tribunal complements the Labour Relations Service and in no way supersedes the existing conciliation services of the Labour Department. During 1978 the tribunal dealt with 3,216 cases involving employees as claimants and a further 292 cases in which the claims were initiated by employers. More than $5 million was awarded by presiding officers. Of the cases dealt with by the tribunal, 90 per cent were referred from the Labour Relations Service after unsuccessful con- ciliation attempts.

By the end of the year, the Labour Department had a record of 60 formal joint consultative committees in 25 establishments. In addition, 54 firms were recorded as having some form of informal consultation. Most are working smoothly and are achieving the objective of bringing management and employees together to improve relationships and facilitate communication. Similar committees established in certain government departments have discussed a wide range of administrative, welfare and organisational problems.

A total of 145 special visits were made during the year to employers to promote joint consultation and labour relations. The Code of Labour Relations Practice,

EMPLOYMENT

published by the Labour Department in 1976, sets out the principal guidelines for promoting harmonious labour relations.

Finding Employment

During the year the Labour Department's Local Employment Service established five additional offices at Hung Hom, Mong Kok, North Point, Chai Wan and Wong Chuk Hang. A facsimile system linking its 13 offices was installed to speed up distribu- tion of information on employment opportunities. A total of 15,566 job-seekers secured employment through this free placement service.

The Special Register, established in 1973, provides assistance to graduates of over- seas and local universities and those with post-secondary or professional qualifications. During the year 123 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 461 contracts were attested, compared with 428 in 1977.

　　　　　　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.

Administrative measures are in force 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, 5,191 such contracts were attested.

Under the Employment Ordinance, all profit-making employment agencies - unless in an excluded class are required to obtain a licence from the Commissioner for Labour before commencing operations. During the year the department issued 51 licences to employment agencies dealing with local employment and nine to those catering for employment overseas.

　　　　　The Youth Employment Advisory Service provides careers information to students and young people in a variety of ways. It has so far produced 37 careers pamphlets and 100 occupations leaflets, and more are being prepared. The service also produces a careers newsletter on a monthly basis and distributes copies to secondary schools, youth centres and other youth organisations.

In 1978, officers of the service gave 263 talks on careers to some 35,400 students in 138 schools. The service also organised 12 seminars and took part in 24 other activities to provide careers information to students, teachers, parents and interested individuals.

　　　　　　In September, the service set up its first careers information centre in Kowloon. The centre has a careers reference library with some 800 titles on careers and related subjects as well as audio-visual facilities for films, slide presentations, cassette record- ings and other resources.

The Labour Department's seventh careers exhibition was held at the Hung Hom rail terminus in November. A total of 25 exhibitors from commerce, industry and government took part in the exhibition, which attracted some 107,000 visitors. During the year, 12 mini careers exhibitions were staged on a specially-designed truck that visited housing estates, parks, community centres and schools.

EMPLOYMENT

　　　　Safety The Factory Inspectorate of the Labour Department is responsible for enforcing the Factories and Industrial Undertakings Ordinance and its subsidiary legislation. These provide for the health and safety of workers in factories, building and engineering construction sites, and other industrial undertakings. Advice and assistance also are given to management on guarding dangerous machinery parts, adopting safe working practices, and laying out new factories to achieve better working conditions.

　　　　　The Factories and Industrial Undertakings (Amendment) (No. 2) Ordinance 1977, effective from December 23, 1977, brought non-profit-making institutions within the scope of the ordinance, empowered the Commissioner for Labour to appoint con- sultants, and included 'airport' in the definition of 'industrial undertaking'.

Under the auspices of the Labour Advisory Board, the Committee on Industrial Safety and Accident Prevention was established in March, 1978. The committee - comprising representatives of workers, employers and the Labour Department - aims to promote voluntary participation and involvement in the field of industrial health and safety.

　　　　　Towards the end of the year the Factory Inspectorate, in conjunction with the Government Information Services, embarked upon a large-scale publicity campaign promoting industrial safety in which posters, leaflets and stickers were distributed to industry, television films were made and strip cartoons displayed.

　　　　　The Industrial Safety Training Centre, at the Labour Department's Kowloon regional office, provided courses during the year for workers from various industries and for students from vocational training centres and schools. The courses were held at the centre's permanent exhibition hall, where a variety of machine guards, models depicting safe working practices on construction sites, and personal protective equip- ment are on display.

Industrial Health and Hygiene

The Industrial Health Division of the Labour Department, comprising the Industrial Health Unit and the Industrial Hygiene Unit, provides an advisory service to the government and industry on matters relating to the health of workers. The division is primarily concerned with preventing occupational diseases and protecting workers against physical, chemical and biological hazards in their working environment. These hazards are detected through visits to industrial undertakings by officers of the divi- sion, reports by the Factory Inspectorate and statutory notification of occupational diseases. Control is achieved by environmental and biological investigations and monitoring, medical examinations and health education.

The Industrial Health Unit investigates industrial accidents and occupational diseases. It undertakes medical and pathological examinations of workers exposed to lead, fluoride, ionising radiation and other occupational hazards, and of govern- ment employees engaged in compressed air work or diving work.

　　　　　The responsibility for the medical examination and assessment of injured workers rests with medically-qualified industrial health officers. Visits to the homes and work places of injured workers are made by health visitors and nurses of the Industrial Health Unit.

JEWELLERY

Diamonds are bestsellers

The past decade has been a period of spectacular growth for Hong Kong's. jewellery industry. This has been matched with improved standards in design and craftsmanship. Hong Kong is now pro- ducing beautifully-designed and superbly crafted jewellery which is keenly competi- tive in world markets. The industry is based not only on a lucrative export market but also on the territory's distinction as a major jewellery centre: there is no sales tax or import duty on jewellery bought in Hong Kong. Many jewellery shops exist in Hong Kong where residents and tourists mingle, buying contemporary pieces or having jewellery made to their own speci- fications. Surveys show that tourists spend more money on jewellery than any other item. Hong Kong's main jewellery interest is diamonds. The territory ranks as the world's third largest diamond trading cen- tre behind the United States and Japan, importing diamonds valued at more than $2,000 million annually and selling more than half locally. Twenty years ago Hong Kong artisans were known for their skill working with jade and gold; today they are adept in the handling of all precious stones and semi-precious materials. Their expertise encompasses any component used in the production of high quality, fashion jewellery sought throughout the world.

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Previous page: The deft hands of an artisan work on a necklace made from diamonds, lapis lazuli and gold. Left: A technician examines the clarity and colour of a brilliant- cut diamond; stones are selected for a necklace; craftsman traces a vase on a piece of jade.

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Hong Kong designers have won an international reputation for their creative designs and their ability to work with a variety of precious and semi-precious materials.

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Surrounded by an assortment of semi-precious gemstones, a craftsman preparing the components for a necklace outlines a shape on a piece of malachite.

A master goldsmith, with more than 45 years' experience, uses a blowtorch on his magnificent creation, a gold dragon.

Below: Fine jade is polished to perfection. Right Cutting jade correctly is a skilled

art.

Above: A technician engraves a piece of rose quartz. Left: Less valuable jade is sliced by automatic machine.

　　　　　Below: Aragonite beads are graded for necklaces. Right: Modern equipment like this casting machine assists jewellery production.

Above: Gold is weighed before being trans- formed into jewellery. Left: Handcrafting jewellery requires close concentration.

Below: Exquisite jewellery realised more than HK$8.6 million at an auction organised by Sotheby Parke Bernet (Hong Kong) Ltd and Lane Crawford Ltd.

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Above: Hong Kong's jewellery shops offer a wide range of contemporary jewellery.

EMPLOYMENT

The Industrial Hygiene Unit is concerned with protecting workers against environ- mental conditions which may adversely affect their health. The unit carries out field surveys to evaluate the working environment of industrial undertakings and recom- mends measures to reduce industrial hazards. It also investigates complaints about working conditions and injuries caused by chemicals.

　　　　　　Other main duties of the unit include the investigation of standards of thermal comfort, ventilation, noise and lighting, and the measurement of concentrations of airborne contaminants such as lead, manganese, mercury, oxides of sulphur and nitrogen, chromic acid mist, solvent vapours, silica and other forms of dust.

The laboratory of the Industrial Health Division is responsible for the biological monitoring of workers, such as those handling fluoride and lead. It conducts analyses. of samples taken for purposes of environmental monitoring. Collaborating in the World Health Organisation Air Pollution Study, the laboratory is responsible for the air pollution monitoring programme in Hong Kong.

Workmen's Compensation

The Workmen's Compensation Division administers the Workmen's Compensation Ordinance. It ensures that injured workers and dependants of deceased workers obtain from their employers, without undue delay, workmen's compensation in respect of injuries or death by accidents or occupational diseases arising out of, or in the course of, employment.

The Workmen's Compensation (Amendment) Ordinance 1978, which came into operation on January 13, 1978, raises the wage ceiling for non-manual workers to $5,000 a month. It also extends the time limit for applying for compensation to 24 months, imposes a surcharge on delayed payment of compensation, and provides for uniformity in assessment of injuries.

The Workmen's Compensation (Amendment) (No. 2) Ordinance 1978, which will come into effect on a date to be appointed, adds pneumoconiosis to the list of occupational diseases covered by the ordinance. The Workmen's Compensation (Pneumoconiosis) Unit, established in May, 1978, is making preparations to administer this amending ordinance.

　　　　　　In February, 1978, the Commissioner for Labour appointed a working party to review the Workmen's Compensation Ordinance with a view to ensuring that it meets present-day needs and circumstances. The working party met 14 times and considered a number of major issues. A report on its findings was submitted in December, 1978.

Industrial Training

The Hong Kong Training Council was appointed by the Governor in 1973 to advise him on the measures necessary to ensure a comprehensive system of manpower train- ing, geared to meet the developing needs of Hong Kong's economy. On the council's recommendation, the Governor appointed 10 industry training boards and five com- mittees to help the council. The 10 training boards deal with the training needs and problems of 10 major industries: automobile repairs and servicing; building and civil engineering; clothing; electrical; electronics; machine shop and metal working;

EMPLOYMENT

plastics; printing; shipbuilding and ship repairs; and textiles. The five committees examine problems common to more than one industry, such as apprenticeship, in- structor training, technical 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 fourth report to the Governor in June. The Training Council Division of the Labour Department is the secretariat of the training council.

During the year, manpower surveys were conducted by the five training boards covering printing, automobile repairs and servicing, shipbuilding and ship repairs, electronics and machine shop and metal working. The training council approved for publication several survey reports and manuals on job standards, model training programmes and trade tests, most of which are on sale at the Government Publica- tions Centre. The training council also published a report on technical manpower supply and demand 1977-82, which quantified for Hong Kong the overall demand for technical manpower at different levels in all branches of engineering and technology, and the supply from various technical 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 Industrial Training (Clothing Industry) Ordinance and the Industrial Training (Con- struction 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 Clothing Industry Training Centre and the Construction Industry Training Centre. These training centres provide practical train- ing in key occupations for the clothing and construction industries.

The Apprenticeship Ordinance, which came into effect in 1976, provides a legal framework for the training of craftsmen and technicians. The essence of the ordinance is that an employer, engaging a young person aged between 14 and 18 years in a designated trade, must enter into a contract of apprenticeship 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 engaged in designated trades, also may send their contracts of apprenticeship to the Labour Department for voluntary registration. Eight craft trades were designated in 1978, bringing the total number of designated trades to 31. By the end of the year, there were 6,281 apprentices being trained in accordance with the ordinance.

The Apprenticeship Division of the Labour Department is responsible for admin- istering the ordinance. Its duties include: advising and assisting employers in the training and employment of apprentices; ensuring that the training of apprentices is properly carried out; conciliating in disputes arising out of a registered contract of apprenticeship; and co-operating with technical educational institutes to ensure that apprentices obtain the necessary complementary technical education.

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

Primary Production

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In the production of fresh food such as vegetables, pigs, poultry and fish, Hong Kong meets a significant proportion of the community's requirements even though less than three per cent of the working population is involved in farming and fishing.

　　　　　　Farmers in the New Territories produce more than 40 per cent of the vegetables con- sumed, about 65 per cent of the total live chicken requirements and about 15 per cent of all pigs slaughtered. Hong Kong's fishing fleet catches about 90 per cent of all fresh marine fish eaten in the territory, and local pond fish farmers produce some 16 per cent of the freshwater fish consumed.

　　　　　　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.

　　　　　　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 1978. This project follows earlier surveys and studies which suggest that the traditional demersal or sea bottom fishing grounds have reached the point of maximum 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 are also helping to determine the most ap- propriate gear for exploitation.

The surveys are being carried out by the Agriculture and Fisheries Department's 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.

　　　　　　The 27-year-old Cape St Mary will be replaced in mid-1979 by a 32-metre com- bination seiner/trawler being built at a local shipyard at a cost of more than $10 million. This 867-tonne research vessel will have a cruising range of 8,000 nautical miles and be able to stay at sea for up to one month. It will be manned by a crew of 17 and five scientists, and is to be equipped with two laboratories.

Administration and Services

The Agriculture and Fisheries Department provides a development information service to the primary industries. Details of new projects put forward are carefully

PRIMARY PRODUCTION

considered; 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 formulate local production and marketing policies. Business efficiency of differing sectors and units within primary industries is 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 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 dynamics of the whole- sale 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, woodland management and landscape repair, as well as fire-fighting and the development of recreational services in country parks. The department also deals with the economic, social and technological develop- ment of Hong Kong's fishing and agricultural industries. It handles the administrative organisation and supervision of co-operative societies of all types and supervises credit unions.

Research programmes of the department extend to, and include, crop and animal husbandry as well as fisheries. On government farms experiments are conducted to improve the quality and yield 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 commercial exploitation and monitoring the performance of existing capture fisheries and, therefore, known fish stocks.

Aquaculture is concerned with culture system development aimed at increasing the average yield rate over a given area and time. Hydrographic investigations are de- signed to support the need for environmental information in an assortment of bio- logical 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

Due primarily to a shortage of rural labour and its rising cost, the main development in the agricultural industry has centred around the promotion of labour-saving devices. It is encouraging to note that farmers show an increasing interest and con- fidence in the use of pre-emergence herbicides for weed control in market garden crops, and there is greater use of small farm machines and sprinkler irrigation. At the

PRIMARY PRODUCTION

end of 1978 there were 2,850 rotary cultivators and 1,600 sprinkler units in use on vegetable farms.

The plastic net house, designed to aid vegetable growing in adverse weather, is the subject of an active development programme by the Agriculture and Fisheries Depart- ment. The impressive performance of a demonstration net house, erected in a farmer's field at Yuen Long, has strengthened farmers' confidence in the net house. Technical assistance, agricultural loans and related services have been made available to farmers, promoting the use of net houses.

Teams of agricultural development officers are posted throughout the New Ter- ritories to deal with farming and pollution problems, and with co-operative societies. Close contact with the farming community and liaison with local co-operative socie- ties 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 1978, more than 7,600 farmers attended farm discussion groups led by professional and technical officers from the Agriculture and Fisheries Department. Some 60 field demonstrations of chemical weed control were conducted in the main vegetable-growing areas for the benefit of farmers. Officers also made more than 160,000 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 demonstra- tions 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 Marketing Organisation. At the end of 1978, 3,686 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 producer associations and fishermen's co-operative societies. Nine liaison offices operate in the main fishing centres to provide a link with the fishermen.

Loans

Loans are available to the agricultural industry through 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, 1978, loans issued since the inception of these three funds totalled almost $109 million. Of this, almost $103 million had been recovered. The Fisheries Development Loan Fund, with a capital of $5 million, is administered 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

PRIMARY PRODUCTION

also administers a revolving loan fund, financed by the Co-operative for American Relief Everywhere (CARE), specifically for shrimp fishermen. At December 31, 1978, loans issued since the inception of these four funds totalled $85.03 million, of which $76.31 million had been repaid.

Co-operative societies operate under a Co-operative Societies Ordinance, which provides for the appointment of a registrar- the Director of Agriculture and Fisheries. His powers and duties relate to the registration of co-operative societies and their by-laws, the auditing of accounts, inspection and inquiry, general supervision of operations, and such matters as mediation in disputes and dissolution when necessary. At December 31, 1978, some 11,718 farmers and more than 2,030 fishermen were members of co-operative societies formed to serve their various needs. There were 79 societies and two federations among the farming community and 69 societies and four federations supported by fisherfolk. A further 252 societies with about 9,000 members operate in the urban area. The bulk of these are co-operative building societies formed by local civil servants in receipt of financial aid from the government. The movement includes societies with such diverse objects and activities as marketing, 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 in regard to the registration of credit unions and their by-laws, the examination of accounts, general supervision of operations, and dissolution. At the end of the year, 59 credit unions with about 11,898 members were registered. There were 30 credit unions comprising groups of people having a common bond of association; 23 unions of people having bonds of employment; and six unions formed by groups each with a common bond of residence.

Land Usage

Hong Kong's land area totals 1,052 square kilometres. Only 10 per cent is used for farming, 75.2 per cent is marginal land with different degrees of sub-grade char- acter, and built-up areas comprise the remaining 14.8 per cent. The need to establish new towns and residential areas that provide 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 the develop- ment of marginal land. The New Territories Administration is responsible for land tenure and certain aspects of land development in the New Territories.

Approximate

Class

(i) Built-up (urban areas)

(ii) Woodlands

(iii) Grass and scrub lands

(iv) Badlands

(v) Swamp and mangrove lands (vi) Arable

(vii) Fish ponds

area

kilometres)

(square Percentage of whole

Remarks

153

14.8

Includes roads and railways.

125

11.8

Natural and established woodlands.

616

58.4

Natural grass and scrub, including

Plover Cove Reservoir.

$ am 2

4.1

Stripped of cover. Granite country.

Capable of regeneration.

0.9

Capable of reclamation.

8.1

Includes orchards and market

gardens.

1.9

Fresh and brackish water fish

farming.

PRIMARY PRODUCTION

Agricultural Industry

The government's policy is to foster the development of the agricultural industry in Hong Kong, bearing in mind priorities in land usage and the economics of food production and supply in the region. Its objective is to ensure that the proportion of Hong Kong's food supply produced locally is maintained at a reasonable level.

　　　　　Common crops are vegetables, flowers, rice, fruit and other field crops. The value of crop production has increased from $89 million in 1963 to $404 million in 1978 - a rise of 354 per cent. Vegetable production accounts for more than 87 per cent of the total value, having increased from $58 million in 1963 to $354 million in 1978.

　　　　　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 higher fertiliser use and high- yielding strains. The amount of rice land has dropped from 9,450 hectares in 1954 to 110 hectares in 1978. 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, radishes, watercress, leaf mustard, spring onions and chives. They grow through- out the year, with peak production in the cooler months. Considerable quantities of water spinach, string beans, Chinese spinach, green cucumbers and many species of Chinese gourds are produced in summer. A wide range of exotic temperate vegeta- bles, including tomatoes, sweet peppers, cabbage, celery, head lettuce, cauliflower and carrots are grown in winter. Straw mushrooms also are produced, using industrial cotton waste as the growing medium. Among the common types of flowers, gladioli and chrysanthemums grow all the year round; dahlias, roses, asters, snapdragons and carnations in winter; and ginger lilies and lotus flowers in summer. A wide range of ornamental plants including philodendrons, dieffenbachia, bamboo palms and poinsettia 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 3,740 hectares in 1978.

　　　　　Various types of fruit are grown on the lower hill slopes. The principal crops are longan, lychees, wampei, tangerines, local lemons, bananas, guavas and pineapples. Land under orchards in 1954 totalled 390 hectares; by 1978 it was 510 hectares.

Other field crops such as sweet potatoes, taro, yams and sugar cane are cultivated in the remote and drier areas where water and transport facilities are inadequate for growing vegetables or rice. Some 90 hectares were under rain-fed crops in 1978, 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 supersedes the Pharmacy and Poisons (Agricultural Poisons) Regulations 1970, requires the registration of all agricultural pesticides and the licensing 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

PRIMARY PRODUCTION

　　　　　animals with exotic stock; pure strains of the Chinese type are becoming difficult to find. The value of locally-produced pigs killed in 1978 amounted to $200 million.

With an annual production value of $363 million, the poultry industry - including ducks, pigeons and quail - is continuing to develop. Farmers are adopting advanced methods of management and are successfully adapting them to local conditions, taking the process through from locally-bred chicks to table birds with both local breeds and imported hybrids.

Imported Friesians are kept by dairies. The largest dairy is on Hong Kong Island and others are located 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 undertaken at the government's veterinary laboratory.

All imported dogs and cats, other than those from Britain, 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. An annual rabies awareness cam- paign is designed to bring home to the public the dangers of the disease.

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

The Agricultural Waste Treatment Unit continued experimental work on the handling and treatment of solid manures, slurries and waste water, in order to make available to farmers information and advice on the environmentally and economically most acceptable means of handling, storing, transporting, treating and disposing of the components of their farm wastes after separation at source into liquid and solid products.

Data on solid waste handling and treatment was obtained from two approximately equal capacity pilot schemes: one a continuous-process rotary drying and bagging plant at Pat Heung and the other a batch-type drying and bagging plant at Sai Kung Government Farm. The dried products from these schemes are disposed of as fertiliser.

Trials with the air-drying of pig and poultry manures were made and possible sub- stantial savings in the costs of subsequent handling, transporting and thermal drying were proved.

　　　　　　　Work on the treatment of slurries and waste waters was extended to include experiments with additional aerating equipment and bio-filtration towers, incorporat- ing both commercially produced filter media and locally available recycled scrap materials, both organic and inorganic.

PRIMARY PRODUCTION

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　　　　　　Investigation of possible outlets for the end products, both solid and liquid, of the various treatment processes under trial continued. This resulted in the preparation of a scheme for the pelleting of dried manures along with other feedstuff constituents - the pellets to be fed initially to pond fish.

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 eels and croakers.

Total estimated production from the two major sectors - marine capture and culture fisheries - amounted to 162,500 tonnes with a wholesale value of $833 million in 1978. These figures represent increases of 2.7 per cent in weight and 13.6 per cent in value compared with the previous year. Of the total production, 96 per cent in weight came from marine capture and four per cent from culture fisheries. In terms of wholesale value, 89 per cent came from marine capture and 11 per cent from culture fisheries. An estimated 35,700 fishermen work a fleet of 5,500 vessels, of which 93 per cent are 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 67 per cent or 73,400 tonnes of marine fish landed in 1978. The total landed catch of live and fresh marine fish available for local consumption in 1978 amounted to 87,731 tonnes with a wholesale value of $386 million. This represented 91 per cent of the local consumer demand.

　　　　　　　Pond fish farming is the most important culture activity. Fish ponds totalling 1,975 hectares are located in the New Territories, principally in the Yuen Long district.

Traditional pond fish farming is similar to that practised in China for hundreds of years. Several different carp species are cultured in the same pond, each deriving its food from a different source and thus utilising to the utmost the nutrients introduced. Grey mullet is often cultured with carp, but the natural production of its fry, caught in the sea, was inadequate during the year. Ponds are generally rain-fed and pond fish farmers experienced the alternate effects of drought conditions in 1977 and heavy rains in 1978. More intensive forms of culture using snakehead and catfish, whose annual yield can be 10 times that of the carp-mullet culture, are gaining prominence. Despite the increasing urbanisation of the New Territories, the land area devoted to fish ponds has increased and they yielded 5,790 tonnes in 1978 or 16 per cent of the local consumption of freshwater fish.

　　　　　　The 1970s have witnessed the rapid development of marine fish culture, whereby young fish are captured from their natural environment and fattened in cages sus- pended from rafts in sheltered bays throughout Hong Kong, particularly in the eastern New Territories.

In late 1977, one of the largest of these centres was severely affected by an oil spillage from a grounded freighter on Lamma Island. The recent scarcity of young fish for rearing also has restricted the growth rate of the industry. Nevertheless in 1978, the total of live marine fish supplied by this activity from some 40 sites was 680 tonnes valued at $27.8 million.

PRIMARY PRODUCTION

　　　　　　Legislation is currently being drafted to allow the orderly development of the marine fish culture industry in the limited sea area available.

Marketing

Much of the wholesale marketing of primary products - particularly fresh foods --- is the 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 77 per cent of the total landings of marine fish were whole- saled through these two organisations.

The Vegetable Marketing Organisation operates under the Agricultural Products (Marketing) Ordinance, which provides for a board to advise the Director of Market- ing (the Director of Agriculture and Fisheries). Its main concerns are 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. It seeks to obtain maximum returns for grow- ers by minimising marketing costs and renders such ancillary services as the acquisition and sale of agricultural supplies to farmers and the awarding of scholarships to the dependants of farmers for tertiary education. During the year, 54,500 tonnes of vegetables valued at nearly $110 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 improvements, support for the 13 schools run for the benefit of fishermen's children and the award of scholarships for tertiary education.

　　　　　　　In 1978 the wholesale fish markets handled 89,700 tonnes, which were sold for some $347 million. This included 266 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 Depart- ment. Work on these market projects is proceeding.

Because of the need for early action, it became necessary for the government to construct and use a number of temporary wholesale markets until permanent markets

PRIMARY PRODUCTION

are built. Three are located in the Cheung Sha Wan district, adjacent to a site ear- marked for a permanent market in Kowloon.

Mining

　　　　　Opencast methods are employed to mine kaolin, feldspar and quartz. Japan and Taiwan remained the major markets respectively for high-grade kaolin and feldspar. Local light industries consumed all the quartz, more than half of the kaolin and some feldspar.

Under the Mining Ordinance the Crown has the ownership and control of minerals. The Land Officer is empowered to grant mining leases and the Commissioner 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 the year, two mining leases, five mining licences and three prospecting licences were valid for different areas.

The Mines Division of the Labour Department enforces legislation relating to mining and explosives, and safety regulations. It processes mining and prospecting applications, inspects mining and prospecting areas, stone quarries, blasting sites and explosive stores, and issues shotfirers' blasting certificates. The division also controls the possession, conveyance, storage, manufacture and use of explosives in Hong Kong, including the delivery of explosives from government depots to blasting sites. In addi- tion, it 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 storage facilities, including construction of a new government explosives depot on Stonecutters Island to replace the Green Island Government Explosives Depot, is underway. Construction of a cartridged slurry explosive manufactory on Stonecutters Island is also expected to proceed in early 1979.

Education

A MILESTONE in the development of Hong Kong's education system was achieved in 1978 with the introduction of nine years' free schooling for every child.

　　　　　From September the government was able to provide, in addition to six years' primary education, sufficient places for every primary school-leaver to proceed to three years of secondary education. This was made possible through the provision, since-1976, of 36,645 additional junior secondary places and the building of 51 new schools. A further 51 new secondary schools are planned for completion between 1979 and 1981 to provide places of a better standard and to improve regional distribution.

　　　　　With the provision of sufficient subsidised junior secondary places for all primary school-leavers, it was no longer necessary to select pupils by means of a competitive public examination. The Secondary School Entrance Examination (SSEE) was ac- cordingly replaced by a new system of allocating secondary school places to primary school-leavers. Known as the Secondary School Places Allocation (SSPA), the new system is based on internal school assessments scaled by a centrally-administered Academic Aptitude Test, parental choice of secondary schools, and the division of the territory into 24 school 'nets' or districts.

　　　　　In July, all of the 103,122 Primary 6-leavers participating in the SSPA in its first year of operation were allocated Form 1 places in schools in the public sector, which comprises places in government and aided schools, private non-profit-making schools in receipt of per caput grants, and private independent schools in the 'bought places' scheme.

Tuition fees were abolished as from September for all Form 1 to 3 pupils occupying places in the public sector. Only a small number of pupils continue to pay tuition fees. They are pupils in private schools who are not occupying bought places and pupils attending English-speaking schools, which have a different mode of financing. The abolition of fees will cost the government an estimated $39.1 million in the 1978-9 financial year. This cost is likely to rise to $73.3 million in 1982-3.

　　　　　The government intends to make junior secondary education not only universal and free in the public sector, but also compulsory. To ensure this, the Director of Educa- tion's power to serve a school attendance order on a parent who withholds a child from school without reasonable excuse will be extended to cover children in the junior secondary age range. From September, 1979, this power will cover children under 14 years of age and, from September, 1980, children under 15 who have not completed

EDUCATION

Form 3. Prohibition on employing children will also be extended to help enforce compulsory school attendance.

In May, the government announced that a full-scale public examination to select pupils for subsidised senior secondary education would not be held at the end of Form 3. Instead, a new system of selection and allocation for educational opportuni- ties beyond Form 3, based on the recommendations of the Working Party on Selection and Allocation for Post-Form 3 Education published in November, 1977, will be operating by 1981. The main feature of the system will be internal school assessments in a range of academic subjects scaled by a test in the basic subjects of Chinese, English and mathematics. It will apply for the first time to all Primary 6-leavers who, having entered secondary schools in September, 1978, are scheduled to complete their three-year junior secondary course in 1981.

A White Paper on The Development of Senior Secondary and Tertiary Education was published on October 18, 1978. It presented proposals for the expansion and qualitative improvement of all stages of education, in schools and other institutions, for those completing the nine-year period of compulsory and universal education.

The principal measures described in the White Paper are:

　　　　• Subsidised places in senior secondary forms, technical institutes and adult educa- tion centres to be expanded to the full extent of demand from suitable students from the early 1980s;

• Subsidised Form 6 places to be made available for up to one-third of students entering subsidised Form 4 places two years previously;

•

All private non-profit-making schools, which are suitable and willing, to be brought by stages within the full scheme of assistance provided under a common Code of Aid;

• The senior secondary curriculum to be broadened with greater emphasis on practical and technical subjects, and improved facilities and support services;

• An improved scheme of teacher training;

Ordinary technician and equivalent commercial programmes to be expanded through the technical institutes, thus enabling the Hong Kong Polytechnic to concentrate on programmes at the higher technician and technologist levels;

• The approved expansion programmes for sixth-form and tertiary education to be achieved partly through the post-secondary colleges, to which assistance will be provided in respect of places on two-year courses at sixth-form level, and on subsequent two-year courses directed towards professional and vocational qual- ifications;

• The number of students taking degree courses to be increased by an expansion of the two universities, by the introduction of part-time internal degrees at the universities and, subject to the advice of the University and Polytechnic Grants Committee, by a limited degree programme at the Hong Kong Polytechnic; Improvements to be made to the Education Department's adult education courses and assistance to be provided to selected adult education projects run by volun- tary agencies.

•

Implementation of these proposals will increase recurrent expenditure by more than $640 million by 1985-6. Total recurrent expenditure on education may be expected to

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rise from about $1,700 million in 1978-9 to more than $2,900 million in 1986-7. Total capital expenditure over the same period is expected to be about $2,101 million.

A review is currently being undertaken of primary education, and of the care and education of children below primary school age. The resultant proposals will be published in a Green Paper in 1979.

In his address to the Legislative Council in October, 1978, the Governor announced his intention to initiate a wide-ranging review covering the whole of the education system, its methods and its objectives. This review will be conducted primarily by overseas experts, together with local participation. The Governor said that this review will be a longer-term development to check the plans already prepared before they become too deeply entrenched.

The provision of special education continued to expand following the publication in October, 1977, of a White Paper on Rehabilitation Services. 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 or- dinary schools; to increase training services to ensure that all who are involved in the provision of special education services are suitably trained; and to provide other serv- ices that will enable handicapped children to develop their capabilities to the full. In May, a group of teachers, students and parents of a Catholic middle school, Precious Blood Golden Jubilee Secondary School, held demonstrations and sit-ins at the school and elsewhere to protest against alleged 'reprisals' against certain teachers and students who had earlier reported the school's mishandling of finances to the authorities. School activities were disrupted to such an extent that the Director of Education had to exercise his statutory power to order the school's closure. A three- person committee of inquiry chaired by the Vice-Chancellor of the University of Hong Kong, Dr Rayson Huang Lisung, who is also an Unofficial Member of the Legislative Council, was subsequently appointed by the Governor to recommend measures that should be taken to avoid a recurrence of a similar state of affairs in secondary schools in the public sector.

As a result of recommendations made by the committee in its interim report published in July, a new school was set up to accommodate those students who wished to continue their studies in another environment.

The final report of the committee of inquiry, published in October, listed among its recommendations the need to improve channels of communication between teaching staff, heads of schools, school managements and the Education Department. It also called for the greater involvement of parents in school affairs and urged the Education Department to examine whether it had sufficient capabilities in responding to grievances.

The government, in responding to the report, announced that the recommendations were generally acceptable and measures would be taken to implement them.

Kindergartens

A total of 788 kindergartens provide pre-school education for 186,130 children in the three to six year age group. These private institutions are supervised by officers of the Education Department, who make professional advice freely available to school man- agers, teachers, parents and members of the public. The government gives assistance

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by providing reliable bodies with grants of Crown land, reimbursing non-profit- making groups with payments of rates, allocating premises in public housing estates to suitable sponsoring bodies and providing in-service teacher training and related facilities.

Primary Education

Primary education has been free in all government schools and in most aided schools since September, 1971. 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 gov- ernment and aided primary schools. A minority of parents continue to send their children to private primary schools, although places are available for them in the public sector.

Following the decline in the birth rate in recent years, the downward trend in primary school enrolment has continued. In September, 1978, primary school enrol- ment totalled 549,967, compared with 574,842 in the previous year. In addition, 13,417 pupils attended night schools. During the school year, 15,570 new primary places were provided in new and developing schools. Further provision of places is planned to meet the needs of developing areas, particularly the new towns in the New Territories. Under the Education Ordinance, the Director of Education has the power to order parents to send their children to primary school if it appears to him that they are being withheld without reasonable excuse. These powers are exercised only after careful investigation of family circumstances and the needs of the child. Parents can appeal to a specially-constituted board of review.

　　　　　A new scheme of social work for primary schools was launched in December as part of a programme of personal social work among young people. Known as the Student Guidance Officer Scheme, it aims at providing educational and vocational guidance to all pupils and personal guidance to pupils who have learning difficulties and behavioural problems which are beyond the resources of teachers to handle. It is planned to expand this scheme to cover all primary schools by 1980.

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

Special Education

The provision of special education was stepped up in 1978. The number of special places for handicapped children increased from 14,540 to 19,160. There are now 44 special schools - two for the blind, four for the deaf, 18 for the physically handicapped, 12 for the slow-learning and eight for the maladjusted and socially deprived. In addition, there are 138 special classes in ordinary government school - 80 for the slow-learning, 28 for the partially-hearing, six for the partially-sighted and 24 for the maladjusted - and 318 special classes in ordinary aided schools - 291 for the slow- learning and 27 for the maladjusted. A total of 588 less severely physically handicapped children have been placed in ordinary classes in government and aided schools. The

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　　　　　progress of these children is supervised regularly by the Special Education Section of the Education Department.

Preventive measures in the form of assessment and remedial services offered by the Special Education Section also expanded. The assessment services include audiometric, vision and speech screening in primary schools; audiological testing; psychological testing; speech testing; and educational assessment. 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 - one at the Sir Ellis Kadoorie Government Primary School, Sai Ying Pun, and the other at the Perth Street Government Primary School in Ho Man Tin. In the course of the year, these two centres dealt with 231,888 children, either individually or in groups.

The expansion of special education has necessitated an increased effort in the train- ing of specialist staff. Overseas' training is provided for the specialist staff of the Special Education Section and local in-service courses are run 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 the colleges of education.

The Special Education Section also has a Chinese Braille Unit, which operates a braille printing press formerly used by the Government Printer. The unit produces primary Chinese textbooks and supplementary readers in braille, which are supplied to schools for the blind under government subsidy at one-tenth of the 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 330 Anglo-Chinese grammar day schools have enrolments totalling 375,470. They offer a five-year course in a broad range of academic subjects leading to the Hong Kong Certificate of Education examination. The medium of instruction is mainly English, although prominence is given to Chinese subjects taught in Chinese. Successful Cer- tificate of Education candidates may enter a two-year sixth-form course to prepare for the Advanced Level Examination of the University of Hong Kong. They may also study for the United Kingdom General Certificate of Education at both ordinary and advanced levels.

The 104 Chinese middle schools accommodate 58,548 pupils. Pupils at these schools also take courses leading to the Hong Kong Certificate of Education examination. Instruction is in Chinese and English is taught as a second language. A number of Chinese middle schools also offer a one-year Middle 6 matriculation course to prepare pupils for entrance to the Chinese University of Hong Kong.

A total of 23 secondary technical schools provide courses for 16,104 pupils. Ten of these schools are run by the government, 12 are aided and one is private. Instruc- tion is in English with Chinese taught as a second language. Secondary technical establishments prepare their pupils for the Hong Kong Certificate of Education ex- amination but more emphasis is given to technical and commercial subjects. Suitable candidates can continue their studies in Form 6 or at technical institutes, the polytech- nic or the Technical Teachers' College.

EDUCATION

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 in- dustrial or commercial activity, designed to introduce pupils 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 en- couraged at this level. Instead, the aim is to introduce basic knowledge and skills, and to help pupils 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 op- portunity 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 opening of Bishop Hall Memorial Prevocational School in September, 1978, the total number of prevocational schools has increased to 11, with a total pupil capacity of 8,800 places. A further 11 schools of this type are planned.

　　　　　　The five aided secondary modern schools that had previously provided a junior secondary course were expanded to enable them to offer senior secondary courses as well, from September, 1978. There are also 20 private and aided secondary schools, with a total enrolment of 9,533, offering some form of technical and trade training that does not lead to the Certificate of Education examination.

　　　　　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. A second school to be operated by the foundation is planned to be built and completed by 1981 on the south side of Hong Kong island. A nucleus of classes that will form this new school is already operating in temporary accommodation. There are also various private schools mainly catering for children from overseas.

　　　　　There has been a steady increase in the number of pupils enrolled in all types of day-time secondary schools. In September, 1978, there were 462,210 such pupils, compared with 420,635 in 1977. A further 67,502 pupils attended tutorial or evening classes, where instruction is offered in secondary-level subjects, the most popular of which is English. During the 1977-8 school year, 25,536 new secondary places were provided in new school buildings.

　　　　　From September, 1978, tuition fees were abolished in junior secondary forms Form/Middle 1 to 3 of government and aided schools, and in private secondary schools with bought places.

Technical Institutes

Four technical institutes are run by the Education Department. They provide courses at craft and technician levels on a full-time, part-time day-release, block-release and evening basis. The main areas covered are construction, electrical engineering, marine and fabrication, mechanical engineering, textiles and clothing, commercial studies, hotel-keeping and tourism, as well as general studies. Short courses are also offered to meet the specialised requirements of industry and commerce. The institutes maintain close links with commerce and industry, the Hong Kong Training Council, the Hong

EDUCATION

　　　　　Kong Polytechnic and the Labour Department in an effort to achieve co-ordinated development in technical education.

There were about 2,545 full-time students, 5,574 part-time day students and 13,375 part-time evening students in the 1978-9 session. The number of part-time day students has increased by more than 200 per cent during the past two years; this has been assisted by the designation of 31 trades under the Apprenticeship Ordinance.

The technical institutes since September, 1977, have adopted a credit-unit system for their technician study programmes. This provides greater flexibility and allows for the broadening of overseas' recognition of institute certificate and diploma awards through the Technician Education Council in Britain. The validated programmes carry accreditation and recognition from a large number of institutions and profes- sional societies, both locally and overseas.

A fifth technical institute, situated in Kowloon Tong, is expected to open on a limited scale in September, 1979, but the project will not be completed until 1980. It will offer courses in aeronautical engineering, electrical and electronic engineering, mechanical engineering, heavy vehicle repairs, horology, optical studies, footwear technology, commercial design and general studies. A sixth technical institute is planned for the new town of Tuen Mun in the New Territories.

Post-Secondary Education

A college can be registered under the Post-Secondary College 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, the Hong Kong Shue Yan College and Lingnan 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 3,473 students. Sixteen departments cover 18 major fields in three types of courses. The college receives an interest-bearing loan from the government and students may apply for interest-free loans to help pay tuition fees.

The Hong Kong Shue Yan College, registered in January, 1976, consists of three faculties arts, social sciences and commerce with an enrolment of 2,372 students. The college has 11 departments and offers day and evening courses.

Lingnan College was registered in October, 1978. It has faculties of arts, business and music with an enrolment of 409 students.

In the 1978 White Paper on The Development of Senior Secondary and Tertiary Education, the approved post-secondary colleges were invited to restructure their courses to provide two-year courses at the sixth-form level, followed by further two- year courses at the post-Form 6 level leading to professional or vocational qualifica- tions. Financial assistance is to be provided to the colleges in respect of students en- rolled on these courses. The colleges may also offer additional one-year courses for students completing the two-year post-Form 6 courses who have demonstrated the ability to proceed to a higher award. There will be a student finance scheme for those at the post-Form 6 level.

EDUCATION

A number of private day and evening schools offer varying standards of post- secondary courses. None of these schools receives aid from the government and they will not be covered by the proposals described in the White Paper on The Develop- ment of Senior Secondary and Tertiary Education.

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 gov- ernment scheme introduced in the 1969-70 academic year. The scheme, administered by the Joint Universities' Committee on Student Finance, 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 1978-9, $7.1 million in grants and $27.1 million in interest-free loans have been provided.

　　　　　The student financing scheme was extended to Hong Kong Polytechnic students in 1976-7. Some $1.1 million in grants and $16.9 million in loans were provided by the government for polytechnic students in 1978-9. The grants and loans are administered 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 the 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 the government on the allocation of funds among the univer- sities and the polytechnic.

The Hong Kong Polytechnic

The Hong Kong Polytechnic, which was established in 1972, developed from the former Hong Kong Technical College. The bulk of the polytechnic's finances comes from the government through the University and Polytechnic Grants Committee.

　　　　　In 1978, major events included the opening of the Polytechnic Community Centre and the Michael Clinton Swimming Pool, and the enrolment of students in the newly- established Institute of Medical and Health Care.

The Polytechnic Community Centre, designed for use by students and staff, consists of two adjacent buildings, the Sports Centre and the Amenities Building. The Sports Centre comprises three gymnasia, a table-tennis area, five squash courts and two tennis courts on the roof top. The Amenities Building houses the Student Welfare Unit, Staff Association and Students' Union offices, canteens, common rooms and a commercial area accommodating a bookstore, a coffee shop and a small bank. The community centre was officially opened by the Financial Secretary in May.

The swimming pool, a gift from donors, is dedicated to the late Michael Clinton in memory of his outstanding administrative services in the government. It was officially opened by the Chief Secretary in April.

　　　　　The polytechnic campus is located in Hung Hom, Kowloon, on a site adjacent to the Cross Harbour Tunnel. Since the 1973-4 academic year when the polytechnic had

EDUCATION

approximately 2,200 full-time, 11,200 part-time evening and 1,200 part-time day release students, the total enrolment has increased substantially. In the 1978-9 academic year, there were approximately 6,500 full-time, 16,700 part-time evening and 2,800 part-time day release students.

　　　　　　The polytechnic has three divisions which consist of various teaching departments. They are: Division of Applied Science (applied science, building and surveying, mathematical studies, nautical studies and School of Social Work); Division of Com- merce and Design (accountancy, business and management studies, computing science, design and languages), Division of Engineering (civil and structural engineering, electrical engineering, electronic engineering, industrial centre, mechanical and marine engineering, and production and industrial engineering).

Two institutes also have been established. The Institute of Textiles and Clothing was formed as a result of the re-organisation of the former Department of Textile Industries. In late 1977, the Institute of Medical and Health Care was established with four full-time diploma and higher diploma courses offered for the first time to students in October, 1978. The courses, providing training for paramedical staff, cover radiography, physiotherapy, occupational therapy and medical laboratory science.

The polytechnic offers full-time study programmes of two and three years' duration, leading to the award of a diploma and higher diploma, and one-year full-time post- higher diploma programmes leading to an Associateship of the Hong Kong Poly- technic - AP(HK).

Part-time day release, sandwich and part-time evening programmes, varying in duration from one to four years, lead to the awards of certificate, higher certificate, various endorsements and other qualifications. They are offered in a wide range of technical and commercial subjects.

Short courses preparing candidates for professional examinations are organised throughout the year. Courses in accountancy, building technology, radar operation and textile studies were particularly popular in 1978. Details of courses offered, along with entrance requirements and fees, are given in the polytechnic prospectus.

Financial awards are available to full-time students of the polytechnic, depending on academic merit as well as financial need. These awards are mostly donated by local organisations, firms, professional bodies and individuals and their value ranges from $400 to $5,000 each per annum. In the 1978-9 academic year, more than 400 scholarships, bursaries and prizes were offered to full-time students.

To cater for the increasing demand for library facilities as a result of expansion and reorganisation, the polytechnic library, covering an area of more than 17,800 square metres, has now become fully operational. The library has a collection of 100,000 volumes and an additional 20,000 volumes are being added each year. Eventually, the library will have one of the largest collections of scientific, engineering and business materials in the Far East, with an approximate size of half a million volumes. A messenger service between the University of Hong Kong, the Chinese University of Hong Kong and the polytechnic has been introduced to facilitate loans among the three institutions.

The polytechnic maintains close liaison with the community through various channels. Advisory committees are set up for every department, centre and institute, and prominent people from commerce and industry, the civil service and the

EDUCATION

　　　　　universities, with wide knowledge and experience in their fields, are appointed as mem- bers. Liaison and joint consultative committees have been formed with the Education Department, aimed at achieving co-ordination between developments of the poly- technic and the technical institutes. Regular contact with the two local universities continued during the year. Apart from being members of the polytechnic advisory committees, professors and senior academic staff of the two universities serve as external examiners of the polytechnic in the same way as polytechnic staff members serve on the examination subject committees of the two universities.

　　　　　　Members of the polytechnic staff also are engaged in consultancy and investiga- tional work for commerce and industry. A handbook entitled Polytechnic Services to the Community, giving details of the expertise and facilities available and the type of consultancy services offered by the polytechnic, is published regularly by the Poly- technic Standing Committee on Consultancy and Investigational Work. Members of the polytechnic are also actively engaged in research work and technology transfer.

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 1978-9 were: arts, 938; science, 581; medicine, 750; engineering, 725; architecture, 239; social sciences, 676; and law, 157. Of these, a total of 1,345 places were available for first-year stu- dents. There also were 670 places for post-graduate students - 400 reading for higher degrees and 370 for diplomas and certificates. In the Language Centre, 10 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 592. 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 General Certificate of Education advanced level. Entry to the university generally depends on successful results in this examina- tion. Some 5,514 students met the minimum entry requirements in 1978.

The School of Education offers graduates a two-year part-time curriculum leading to the Certificate in Education. Also offered 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 Philosophy in Education are available for specially-qualified and selected candidates.

　　　　　　In addition, the university confers higher degrees, diplomas and certificates on suit- able candidates for their research or for successful completion of a prescribed curric- ulum in other disciplines. These include degrees of Masters of Philosophy in Arts, Science, Medicine, Engineering, Social Sciences, Architecture and Law, 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 Law. Certificates are obtainable at post-graduate level in the fields of law,

EDUCATION

engineering subjects, Chinese language and medical sciences. Courses leading to a diploma in management studies and Chinese language also are offered.

A recent addition to the Faculty of Arts is the Department of Fine Arts which will offer undergraduate courses in both Chinese and Western art history and appreciation. The other departments in the faculty are Chinese Language and Literature, English Studies and Comparative Literature, History, Geography and Geology, and Philos- ophy.

The development of dental education in Hong Kong gained impetus during 1978. The Dean of Dental Studies and the Professor of Conservative Dentistry took up their posts in July and the Senior Dental Technologist began work in September. All assisted the Hong Kong Polytechnic to introduce its diploma course in dental tech- nology in October. Three more dental clinical professors were appointed on a pro- leptic basis and became actively involved in the design of the dental curriculum. The university's dental school will enrol its first students in 1980. The building programme associated with the dental project continued according to plan, with the commence- ment of construction work on the substructure of the dental hospital, in Hospital Road, Sai Ying Pun, and on the new animal house and amenities building in Sassoon Road, Pok Fu Lam.

In July, 1978, the Departments of Architecture and Law separated from their parent bodies to become the School of Architecture and the School of Law.

In 1977-8, the Department of Extra-Mural Studies provided more than 500 evening and day courses for more than 13,000 adult students. The year saw the opening of a new town centre in Central District with a classroom capacity for 600 students. Subjects offered by the department include art and design, business studies, economics, law, languages, oriental studies, a range of liberal arts courses, and a wide variety of vocational and professional courses. Most of these courses are conducted in English, but some are taught in Mandarin and a significant proportion are in Cantonese.

　　　　　　The general library contains almost 290,000 volumes, including the Robert Mor- rison 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 210,000 volumes, contains many rare items. In addition, there are two branch libraries - the medical library with more than 45,000 volumes, including bound periodicals, and the law library, with about 16,000 volumes.

Research

The Centre of Asian Studies continues to serve as a focal point for the academic community working on research projects on Asia and, in particular, China and Hong Kong. In 1978, the centre published a linguistic study of the style of Lu Hsun; a historical study of early Ch'ing Dynasty Chinese censers; an annotated catalogue in- cluding critical essays on wooden-fish books collected in the centre and the Fung Ping Shan Library; and a socio-legal study of the Hong Kong Labour Tribunal.

　　　　　　The centre also edited a Directory of Current Hong Kong Research on Asian Topics 1978, with an appendix on Macau and, in response to demand, produced a second impression with minor corrections of the Gang of Four: First Essays after the Fall. The proceedings of the fifth Leverhulme regional conference on 'China: Development and Challenge', in four volumes, was prepared for publication.

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The translation into English of The Thought of Mao Tse-tung: Form and Content, was finished by mid-year; also in manuscript form were a study of Chinese temples on Hong Kong Island and a bio-bibliographical study of Robert M. Martin. As a base for several projects, the centre helped to facilitate a study on small-scale industries in Hong Kong, funded by the International Development Research Centre, Ottawa. Other major projects included a study of the new town development of Tsuen Wan; preliminary work for a possible historical study of the Hongkong and Shanghai Bank; and the continuation of business management studies in Hong Kong and Southeast Asia.

The centre also held a series of centre fellows' lunch talks and seminars, including a seminar on China and modernisation. The first stage of the conference on 'South- east Asian Chinese Tradition: State, Role and Impact,' organised by the University of Malaya, was held at the centre in early December. The latest research tool acquired by the centre was a set of card-catalogues on the university library's collection of Far Eastern materials.

In the Departments of Chinese, and English Studies and Comparative Literature, research is in progress into aspects of both languages and literatures; the philosophy of language is also one of the research interests of the Department of Philosophy. The Department of Geography and Geology's research interests include soil conditions, meteorology and biogeography as well as transportation, population geography and urban development. Both the Departments of Chinese and History undertake re- search into the history of China up to the present; the Department of History also researches Hong Kong's history.

The Faculty of Social Sciences and the School of Law are conducting research. projects relating to various fields. These cover mathematical economics; different aspects of the Hong Kong economy such as income and employment, fiscal and monetary policy, the banking system, technology and growth; managerial beliefs in Southeast Asia; small business in the Hong Kong environment; government and politics in Hong Kong; radical politics in China; public budgeting and analytical political theory; cultural/social background of government decision makers; crises in social work; industrial relations in the textile industry; female expatriate adjustment in Hong Kong; computer applications in psychology; medical statistics; economic and demographic analysis; industrial quality control; stock market research; dis- criminant analysis; the business environment in Hong Kong; local trends in industrial relations; skills training for managers; Chinese customary law and legal history; and international commercial transactions and taxation. Legal and statistical advice is provided by the university to the community.

In the Faculty of Engineering, research is being carried out on power apparatus and systems, electronics, solar energy, noise, mechanics, bio-engineering, soil and con- crete, structural analysis, management, production and control techniques, and com- puter applications.

The Faculty of Medicine is engaged in many research projects of special significance to Hong Kong. They include the validation of developmental screening and assessment protocols for use in Chinese children; the role of inhibitors of fibrinolysis in childhood cancers; the pattern of neuro-muscular diseases in Chinese children; screening projects to determine the incidence of inborn errors of metabolism and of congenital

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hypothyroidism in Chinese new-born babies; correction of spinal deformities and dis- orders due to poliomyelitis; an ongoing mass school screening programme for spinal and other orthopaedic deformities; a longitudinal study of growth and development in children with adolescent idiopathic scoliosis compared with normal 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; aetiology of bacterial and viral diseases; 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; cardio-vascular risk of oral contraceptive pills and thrombo-embolic disorders in the Chinese; treat- ment of hypertension and various forms of heart failure; peptic ulcers in the Chinese; viral hepatitis and therapeutic responses; cirrhosis and cancer of the liver; the im- munopathology of leprosy; the immune response to infectious diseases; common hereditary anaemias in the Chinese; immunological changes in collagen-vascular disorders; aetiology and treatment of cancer of the oesophagus, liver and urinary bladder; peripheral arterial diseases and venous thrombotic problems in Chinese; aetiology and management of peptic ulcers and of malignant blood diseases; con- traception; psychiatric sequelae of therapeutic abortion; aspects of female homo- sexuality among the Chinese; psychopathology in the Chinese as revealed by group psychotherapy; attempted suicide; and EEG characteristics of children with febrile convulsions.

Within the Faculty of Science, projects in the Department of Zoology include in- vestigations into the ecology of marine and freshwater organisms; the physiology and metabolism of fish with application to pond and marine culture; a survey of parasites in humans and animals; the endocrinology of reproduction and foetal development; investigations into agricultural pests; nerve endings in back muscles of scoliotic patients; the structure and function of avian muscle stretch receptors; the genetics, development and cell biology of unicellular animals. Investigations are also being carried out on fouling problems in freshwater pipelines and sea-water intakes.

　　　　　　The Department of Botany is proceeding with projects on pollution studies on Hong Kong roadside plants and the cell and tissue culture of some important local crop plants.

The Department of Physics has projects on studies of astrophysics, cosmic rays, local ionospheric and meteorological phenomena; research in solid state physics in- cluding luminescence, semiconductors, amorphous solids and gemmology; plasma physics and application to radio-astronomy; and the application of electro-chemistry to plating and storage batteries.

The Department of Chemistry is involved with studies of Hong Kong's atmosphere, particularly the amounts of sulphur dioxide, ozone, nitrogen oxide and solid partic- ulates. The isolation of naturally-occurring substances from Hong Kong plant ma- terials is continuing.

　　　　　　In the School of Architecture research is being undertaken relating to densities in urban areas; rural Chinese architecture; space utilisation in buildings; the phrase- ology of the Hong Kong Standard Form of Contract; the building industry with reference to construction costs, resources and industrial capacity; and the urban landscape.

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　　　　　The Chinese University of Hong Kong The Chinese University of Hong Kong was inaugurated in 1963 as a federal university in which the principal language of instruction is Chinese. It is a self-governing corp- oration which draws its income mainly from government grants. The university com- prises three constituent colleges - Chung Chi, New Asia and United. The campus covers 134 hectares of land to the east side of Tai Po Road near Sha Tin and over- looks Tolo Harbour.

　　　　　　Following the enactment of a new university ordinance in December, 1976, teaching at the university has been geared towards providing a balance between 'subject- orientated' teaching and 'student-orientated' teaching in small groups, carried out by each of the three colleges. 'Student-orientated' teaching is designed to foster in students 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 is also meant to equip 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 the 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 19 divisions. Three types of graduate programmes, ranging from one to three years, are offered. These lead to the degrees of Master of Philosophy in Humanities, Science or Social Science; Master of Business Administration; Master of Divinity; Master of Arts; Master of Science; and Master of Social Work. Courses on education are conducted by the School of Education, which provides professional training for graduates of approved universities. Students taking courses may follow programmes leading to a Diploma in Education or a Master of Arts in Education.

During 1978, preparation for the university's new medical school continued. The Medical Academic Advisory Committee, which is advising the university on the development and curriculum planning necessary for the new school, held its third meeting in Hong Kong in February and March. In July, the foundation stone of the basic medical sciences building was laid by the retiring Vice-Chancellor, Dr C. M. Li, after whom the building has been named. Planning of the 1,400-bed teaching hospital in Sha Tin has now reached an advanced stage. The medical school's first pre-clinical intake will be in 1981.

Undergraduate places available in September, 1978, totalled 4,375 and comprised the following: arts, 1,076; business administration, 844; science, 1,228; and social science, 1,227. Some 416 students were enrolled in the university's graduate pro- gramme. A total of 12,124 candidates sat for the matriculation examination in April, 1978, of which 3,743 passed. Of these, 1,307 were admitted for the 1978-9 academic year.

　　　　　　A total of 1,003 students graduated from the university in 1978. They included 50 Masters of Philosophy, 27 Masters of Business Administration, two Masters of Arts, two Masters of Arts (Education), two Masters of Divinity, 225 Bachelors of Arts, 195 Bachelors of Business Administration, 229 Bachelors of Science and 271 Bachelors of Social Science.

　　　　　　In line with the university's objective to promote Chinese culture, an International Asian Studies Programme was established in September, 1977. The programme

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　　　　　enables a selected number of students, research scholars and academics from overseas to share the university's resources and research facilities. In addition to the regular academic terms, the programme also organises summer sessions. A total of 113 students and scholars from Austria, France, Indonesia, Israel, Iran, Japan, Korea, Malaysia, Norway, the Philippines, Thailand, West Germany and the United States were enrolled in 1978.

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 also provides a number of intensive courses leading to the award of certificates. The majority of the courses are conducted in Cantonese or Mandarin. The department collaborated with Commercial Television, before it ceased transmission in August, 1978, and with Radio Television Hong Kong in the production of instructional television and radio programmes.

The 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. As well as general reference books, the branch libraries provide books and periodicals for undergraduate studies and general reading. The four libraries together hold 326,017 volumes in oriental languages and 274,100 in western languages, and subscribe to 3,801 periodicals.

Research

Four institutes

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the Institute of Business Management Studies, the Institute of Chinese Studies, the Institute of Science and Technology, 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 fields.

The Institute of Business Management Studies, the youngest research institute among the four, was established in March, 1978. The objectives of the institute are to provide the necessary facilities and to promote an atmosphere conducive to research work by members of the Faculty of Business Administration; to provide an appropriate channel for faculty members to co-operate among themselves or with researchers of other disciplines to take up worthwhile joint projects; to encourage, in particular, investigations into problems of special significance and relevance to the local scene; and to assist researchers in seeking grants from various sources to support meaningful programmes. In addition to research, the institute also organises seminars, lectures and other activities, not only to promote interests in this field, but also for the exchange of new and advanced ideas.

　　　　　　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 nine volumes have been published. As a result of research sponsored by the institute, eight books - five on Chinese linguistics, two on Chinese intellectual history and one on Chinese economic history have been published in the past four years. The Comparative Literature and 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 translations of classical and contemporary Chinese material.

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　　　　　　The Centre for Chinese Archaeology and Art was launched in February, 1978, to make surveys of archaeological sites and to carry out excavations in Hong Kong; to organise periodic exhibitions and symposiums on special subjects in association with the university's Art Gallery and the Departments of Fine Arts and History; and to provide graduate students with field work training in Chinese art and archaeology. The centre is conducting a number of research projects.

The Art Gallery's collection of paintings and calligraphy, produced mainly by native scholars of Kwangtung Province, continues to grow. An annexe to the Art Gallery was officially opened in April, 1978. The annexe is equipped with up-to-date facilities for the photography and mounting of Chinese scrolls and the restoration of porcelain.

The Institute of Science and Technology promotes inter-disciplinary research in the science faculty, with particular emphasis on projects with long-term regional signi- ficance or applied value. There are two research units and one research centre under the aegis of the institute.

The Chinese Medicinal Material Research Unit was established in 1974, with the objective of undertaking laboratory investigation of certain rationally selected Chinese herbs, in order to establish their true therapeutic value on a scientific basis. In addition to functioning as one of the six research centres in the world chosen by the World Health Organisation to carry out research on the biological effects and chemical constituents of potential anti-fertility plants, the unit also receives support from various international organisations.

　　　　　　The other research unit under the Institute of Science and Technology is the Food Protein Production Unit which, since its establishment in 1977, has been pursuing two main areas of research. The first project is intensive aquaculture involving the use of sewage wastes through successive steps in the algae, shrimp and fish food chain, and the production of vegetable crops in sewage sludge. The other project is the growing of straw mushrooms from cotton wastes and tea leaves.

　　　　　　As a result of a donation made by the Hung On To Memorial Fund, the Hung On To Centre for Machine Translation Research, which originated from the Machine Translation Project initiated in 1969, was established in March, 1978. Before the centre opened, a system capable of translating Chinese mathematical texts into readable English had already been built up. With the aid of the Chinese-English glossary of mathematical science which the project group compiled, 13 issues of Acta Mathematica Sinica, two issues of Acta Physica Sinica and many articles in biochemistry were translated from Chinese into English. The centre is currently investigating the translation of other language pairs as well as simultaneous transla- tion of multi-linguals.

　　　　　　Within the Institute of Social Studies and the Humanities, the Economic Research Centre is studying the Hong Kong economy and the economies of some countries in the neighbouring region. Major areas of investigation include national income study, econometric forecasting of trade and employment, technological changes in manufacturing industries, the labour market, and agricultural and industrial develop- ment in China.

The Centre for Communication Studies is working on a long-term project aimed

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at locating, annotating and, if funds are available, acquiring all Chinese journalism and communication materials published since the Ch'ing Dynasty.

　　　　　　For the past eight years, the Social Research Centre has been studying various aspects of social life in Hong Kong including new town planning and development; juvenile delinquency; housing problems; 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 Southeast Asia.

　　　　　　The Public Affairs Research Centre was established in 1977 and is engaged in studies relating to public affairs in Hong Kong, China and Southeast Asia.

Teachers and Teacher Education

In March, 1978, 38,745 teachers were employed in government and registered day schools. They included 9,963 university graduates and 20,032 non-graduates qualified for teaching. In addition, there were 3,428 teachers in subsidised night schools, private tutorial and evening classes. A further 3,666 teachers were engaged in the Evening Institute, the Evening School of Higher Chinese Studies, the Technical Institute Evening Department, in-service courses in the colleges of education and Technical Teachers' College, and private evening colleges and adult classes. Most of these teachers also taught in day schools. It addition, 368 teachers were in special schools.

Except for technical teacher training, teacher education is provided at the Educa- tion Department's three colleges of education - Grantham, Northcote and Sir Robert Black. All three colleges offer two-year full-time courses designed to produce non- graduate teachers qualified to teach in primary schools and the junior forms of secondary schools. The colleges also offer third-year courses aimed at providing more advanced training, both for trained serving teachers and students entering directly after completion of the two-year course. In addition to the specialist subjects of art and design, physical education, music and home economics, the third-year courses cover a wide range of academic subjects. Part-time courses are also provided to train practising teachers. In September, 1978, there were 676 students in the two- year courses, 111 in the third-year courses and 1,077 in the in-service training courses. Technical teacher training is provided at the Hong Kong Technical Teachers' College, also 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 who have decided to take up technical teaching as a career. Generous grants are offered to attract suitable recruits from commerce and industry. To meet the needs of the new technical institute opening at Kowloon Tong in 1979, some staff have already been appointed and enrolled at the college in the one-year pre-service course. The two-year full-time course accepts secondary

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technical school-leavers who have a genuine interest in, and a desire to serve, technical education.

The Hong Kong Technical Teachers' College also provides a variety of in-service courses of teacher training. In 1978-9, the college offered a three-year part-time in- service course for technical teachers in prevocational schools. This course serves to improve the techniques of technical teachers who have not received any formal teacher training. On completion of the course, these teachers will be awarded a certificate which carries 'qualified teacher' status.

The industrial trade instructors' courses, offered in the part-time day release, evening and block-release modes of study, aim to improve the instructional technique of supervisors and instructors employed by industry. In addition, the college pro- vides short courses and seminars on specific topics tailored to the needs of various industries.

Proposals in the 1978 White Paper on The Development of Senior Secondary and Tertiary Education seek to improve the quality of teacher training by extending initial training courses to three years, except for those who enter with advanced level qualifications, and by introducing a systematic programme of refresher training for serving teachers.

Adult Education

For young people who have left school and for adults, the Adult Education Section of the Education Department provides both formal and non-formal evening educa- tion through the Evening Institute, the Evening School of Higher Chinese Studies, and 16 Adult Education and Recreation Centres.

The Evening Institute offers eight types of formal courses ranging from literacy classes to secondary and post-secondary studies. The general background adult education courses provide fundamental and elementary education at primary level, with special reference to adult needs and interests. Parallel to these are the practical background courses offering training in housecraft, sewing and knitting, and wood- work 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 syllabuses of the young people's course have been brought into line with those 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 studies leading to the Hong Kong Certificate of Education examination.

At post-secondary level, teachers' courses provide additional in-service professional training in the teaching of English in primary schools and junior secondary forms; mathematics in junior secondary forms; physical education in secondary schools; and the teaching of art, art and craft, music, woodcraft, handicraft, gymnastics, modern educational dance, folk dance, oriental dance, and educational communica- tion and technology. English courses from Primary 4 to Form 5 standard are offered to prepare adult students for the English-language syllabus of the Hong Kong

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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 sociology. Specialised three-month courses are offered on various aspects of Chinese classics and culture. From October, 1978, short courses on the appreciation of Chinese antiques and art objects were organised.

In providing non-formal education, the 16 Adult Education and Recreation Centres organise a wide variety of cultural, social and recreational activities designed to stimulate individual awareness within the community, to cultivate creative ability and to develop individual talents.

　　　　　About 23,000 people are enrolled in the formal courses and about 44,000 in the non-formal courses. The Adult Education Section also helps the Royal Hong Kong Police Force, the Prisons Department and the Social Welfare Department organise classes and provides professional expertise in general and practical subjects for the self advancement of police officers, and for the inmates of various prisons, and addiction treatment and rehabilitation centres.

Many voluntary agencies also provide a wide range of courses for adults. The 1978 White Paper on The Development of Senior Secondary and Tertiary Education proposed that the main thrust of the government's policy for developing retrieval adult education courses should be directed at assisting voluntary organisations to complement and supplement the Education Department's own courses. Suitable courses for subvention under these arrangements have been suggested.

Examinations

　　　　The Hong Kong Examinations Authority took over the responsibility for conducting the Hong Kong Certificate of Education examination for the first time in 1978. The authority will administer the Hong Kong higher level examination replacing the matriculation examination of the Chinese University of Hong Kong from 1979, and the Hong Kong advanced level examination replacing the advanced level examina- tion of the University of Hong Kong from 1980.

　　　　　　The authority has also assumed the responsibility for conducting a great number of overseas' examinations on behalf of various examining bodies in Britain and else- where. 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 subject inspectors, the development of advisory services and facilities, and the provision of courses, seminars and workshops for practising teachers. The inspectorate also evaluates textbooks and instructional materials, and carries out educational research and guidance and curriculum development. Close liaison is maintained with other

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bodies such as the various local examination authorities, other government depart- ments, the British Council and the Consumer Council.

In 1978, a three-year trial period for implementing and evaluating a set of pro- visional syllabuses for junior secondary forms was completed. The feedback has been very satisfactory and, after careful review by the Curriculum Development Committee (CDC), the syllabuses have been modified accordingly. Courses, con- ferences, seminars and workshops are being organised regularly for primary and secondary teachers to introduce, consolidate and evaluate new curricula and approaches. CDC journals, newsletters, bulletins and pamphlets have been published for distribution to schools to keep teachers abreast of new developments in various subject areas.

　　　　　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 courses, seminars and workshops were organised for teachers implementing the approach.

The inspectorate's Textbooks Committee continues to give positive guidance to schools on the selection of books. A comprehensive list of recommended textbooks for kindergartens, primary and secondary schools is updated and issued twice a year in May and November - to schools for information and guidance. In an effort to improve the quality of textbooks, the Textbooks Committee maintains close liaison with two educational publishers' associations - the Anglo-Chinese Textbooks Publishers' Organisation Limited and the Hong Kong Educational Publishers' Association Limited.

Teaching Centres

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

The Chinese Language Teaching Centre continues to work towards improving teaching methods and promoting the general standard of Chinese in secondary and primary schools. During the year, 60 courses, seminars and workshops attended by 2,100 teachers were conducted in Kowloon and on Hong Kong Island. A number of inter-school competitions were organised to encourage schools to place greater emphasis on speech training and to support extra-curricular activities in connection with Chinese-language teaching. Teachers showed keen interest in the centre's permanent display of teaching materials, aids and projects. Many schools, both primary and secondary, benefited from the free dubbing service for teaching tapes offered by the centre.

　　　　　The English Language Teaching Centre organised 19 intensive courses on methodology or speech improvement, as well as 13 workshops and five special seminars for 1,547 teachers. Some 420 follow-up visits were made. More than 3,000 language tapes were supplied to 190 schools and two exhibitions featuring aids to English were held. A specialist library, which contains 4,500 books on English- language teaching and linguistics, and an English teaching materials display room

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were frequently visited by teachers, school principals, lecturers and members of the Advisory Inspectorate.

　　　　　　To help implement the new syllabuses, the Mathematics Teaching Centre held 16 seminars and 25 workshops for secondary school teachers. More than 20 school representatives visited the centre and had access to resource materials on various mathematics projects. The centre sponsored the First Joint Schools' Mathematics Exhibition in Hong Kong. In addition, metrication seminars are run frequently to help teachers 'think metric' and promote metrication in schools.

Visual Education Centre

　　　　　In April, 1978, new loan procedures for the Visual Education Centre's audio-visual resources library were introduced to cope with increasing demands from schools for the loan of 16mm films, 35mm filmstrips, slides, recorded tapes, photographs, over- head projector transparencies, study kits and learning packages. About 3,000 copies of each issue of the section's Audio-Visual News Bulletin were circulated to schools and other educational institutions.

　　　　　　　The centre's Media Production Services Unit, located at 182 Canton Road, Kowloon, provides facilities for the preparation of inexpensive resource materials by teachers.

　　　　　　Twenty-five sessions of eight practical audio-visual workshops were held for 500 primary and secondary school teachers at the unit during the year. A series of seminars were held for 150 secondary school audio-visual co-ordinators responsible for the overall control and organisation of audio-visual resources in schools. During July, these co-ordinators were invited to attend a 'dialogue' on the role of the school media resources officer, conducted by a Home Office project director responsible for the production of educational material for use in secondary schools in the United King- dom and a former media resources officer for the London Educational Authority.

Cultural Crafts Centre

The Education Department's Cultural Crafts Centre, established in 1971, accom- modates sections of the Advisory Inspectorate responsible for art and design, crafts and home economics. It provides facilities in well-equipped workshops for running in-service courses in these subjects for teachers in primary and secondary schools. During the year, a wide variety of courses, demonstrations and seminars were or- ganised for about 2,000 teachers. These activities provided an opportunity for teachers to update their knowledge and to exchange ideas on modern teaching methods.

The annual exhibition of Art, Crafts and Home Economics was held in February at the Cultural Crafts Centre. In September, an Art and Design Exhibition was held in the Hong Kong Arts Centre. This exhibition, the largest held since the establishment of the Cultural Crafts Centre, was open to the public for a week. The exhibits, selected from more than 4,000 entries submitted by secondary school students, included two- dimensional and three-dimensional work in a wide variety of materials.

Music

During the year, more than 500 primary and secondary teachers attended seminars, refresher courses and music workshops organised by the Music Advisory Inspectorate

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of the Education Department. One of these, a three-day course on the teaching of Chinese music in secondary schools, was the first step towards the promotion of Chinese music education in Hong Kong. The secondary school teachers' choir and orchestra continued to give music teachers experience in rehearsing and performing substantial works from the choral repertoire.

About 50,000 students took part in the 30th Annual Schools Music Festival in 272 classes at 10 different centres. Six prize-winners' concerts were given before capacity audiences.

In August, the Hong Kong Children's Choir made a Canadian tour, performing at the 13th Conference of the International Society for Music Education in London, Ontario.

　　　　　　The annual practical examination of the Associated Board of the Royal Schools of Music attracted 10,083 entries and 2,353 candidates sat the theory examinations. Some 101 entries were received for the Trinity College of Music examinations and 1,212 ballet students took part in the Royal Academy of Dancing examination.

Physical Education

The Physical Education Section of the Education Department conducts regular school visits, during which advice and supervision on physical education is given to prin- cipals, heads and physical education teachers. Refresher courses, residential courses, seminars, conferences and camps relating to the teaching of physical education are also organised throughout the year for teachers at various levels. The allocation to schools of Urban Council recreation grounds, games halls, athletic fields and swim- ming pools forms part of the duties of the section.

　　　　　　Organised activities for schoolchildren, such as outdoor educational camps, canoe- ing, sailing, a learn-to-swim scheme and the Duke of Edinburgh's Award Scheme, are well supported by schools. Similar activities for handicapped children, the mentally retarded and slow learning children are also organised and supervised by the Section.

In conjunction with the Hong Kong Schools Sports Association and the New Ter- ritories Schools Sports Association, the Physical Education Section continues to run competitions such as gymnastics, trampolining, canoeing and dance for schools. The section also helps to promote school sports at inter-port and international levels.

During the summer, the Physical Education Section once again received a sub- vention from the government and the Royal Hong Kong Jockey Club to operate a summer recreation programme for about 400,000 children from both primary and secondary schools.

The Hong Kong Schools' Chinese Dance Team, organised by the Physical Educa- tion Section, took part in the Commonwealth Carnival held in Edmonton, Canada, as part of the 11th Commonwealth Games. The team, comprising 15 girls, five boys, two teachers and six officials, was extremely well received.

　　　　　　The dance team was also invited by the Hong Kong Tourist Association and the Urban Council to take part in the Victoria Park Lantern Carnival in September and the Third Festival of Asian Arts in October.

Community Youth Club

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The Community Youth Club (CYC) movement has attracted a total of 21,450 mem- bers since it was launched late in 1977 with the support of the government and a donation from Lions International District 303.

　　　　　　The movement aims to involve young people, mainly Primary 4 to Form 3 pupils, in various community projects. Most of the CYC groups take the form of school clubs engaged in extra-curricular activities at three levels school, district and territory- wide. School-based activities are organised by one or more groups within a school and are advised and assisted by the CYC Section of the Education Department. Projects include cleaning beaches, picnic grounds and buildings; visits; first-aid training courses; and training camps.

District activities see a group of schools join together for more ambitious projects, such as the Wong Tai Sin District Civic Week, the Tsuen Wan District Joint Schools Science Exhibition and the Tai Po District Action Committee Against Narcotics Publicity Campaign. Territory-wide projects involving the whole CYC movement include Walks for a Million, the CYC Chinese Slogan Competition, the CYC Original Song Competition, a general knowledge quiz and inter-school road safety project design competitions.

New clubs are serviced by a small permanent unit at the Education Department and are organised by a committee comprising representatives of the Education Depart- ment, the Government Information Services, the Home Affairs Department, the New Territories Administration, Lions Clubs, and secondary and primary schools.

Educational Television

The Educational Television Service (ETV) programmes are produced locally, in col- our, by the Education Department and Radio Television Hong Kong (RTHK). The programmes, which are transmitted by the commercial television stations, 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, questionnaires, visits to schools by ETV producers and inspectors, and reports from inspectors of the Advisory Inspectorate have re- sulted in many improvements to ETV since its inception in 1971.

　　　　　　In September, ETV was extended to Form 3 pupils following the installation in secondary schools of a further 280 video cassette recorders and 370 colour television receivers.

Primary school ETV programmes cover the four basic subject areas of Chinese, English, mathematics and social studies taught at Primary 3 to 6. Secondary school programmes are produced for Forms 1 to 3 in the same four subjects plus science. ETV's total audience during 1978 was estimated at 260,000 secondary and 360,000 primary school pupils.

Hong Kong Students in Britain

　　　　　The Student Section of the Hong Kong Government Office in London is responsible for keeping records of Hong Kong students and nurse trainees in Britain who register with the Education Department before leaving Hong Kong. The section helps students

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find places in universities, polytechnics, technical colleges, colleges of further educa- tion 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.

The Student Section works closely with the Education Department in Hong Kong and other departments. In the United Kingdom, it maintains close relations with departments of the British Government, local education authorities, the British Coun- cil, educational establishments and hospitals.

　　　　　　In December, 1978, the records listed some 11,025 students, including students on sandwich courses and nurses in training. New arrivals during the calendar year totalled 2,566, compared with 1,859 the previous year. The newcomers included 1,975 students for General Certificate of Education courses and 48 for basic or post- registration qualifications in nursing. Student visitors to the section totalled 906. Inquiries about sources of financial assistance continued to be received owing to inflation in Britain and increases in tuition fees. To mitigate hardship, a Student Emergency Loan Fund has recently been introduced. A number of students also 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, 3,050 applications on behalf of 1,202 students were made to polytechnics and colleges. A total of 1,233 students made direct applications to universities through the Universities Central Council on Admissions under the guid- ance of the Education Department in Hong Kong.

The government-run Hong Kong Students' Centre, formerly known as Hong Kong House, is a residential and social centre in London for Hong Kong students in Britain. It accommodates 90 students and serves as a focal point and meeting place for many of its 6,000 members. Building modifications completed during the year have produced increased space for study and recreation, a new dining room, a com- mittee room and self-serve kitchens. The Hong Kong Commissioner in London administers the centre and is assisted by an advisory board that includes two student representatives.

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, 2,061 students went to Canada for secondary or higher education, 2,605 to the United States and 215 to Australia.

Health

THE development of Hong Kong's medical and health services is geared towards a balanced provision of services to meet the many needs of the community. The gov- ernment has committed itself to a substantial expansion programme covering a wide range of services including primary health care, the provision of more hospital beds, increased rehabilitation facilities and a certain number of specialised treatment units. Important achievements in 1978 included the establishment of a Central Health Education Unit within the Medical and Health Department. The unit is providing professional advice to other government departments and voluntary organisations which are interested in carrying out health education programmes in their special fields.

Construction of an 11-storey clinical pathology building at Kwong Wah Hospital commenced in late 1978. When completed, it will provide a much larger range of clinical services greatly enhancing the facilities of Kwong Wah Hospital, which is the regional hospital for west Kowloon.

A further step forward in the provision of medical care for the residents of Tsuen Wan and Kwai Chung is being achieved with the construction of an extension to Yan Chai Hospital, which commenced in mid-1978. A total of 50 beds are being provided in the first stage of the expansion project with additional beds, supporting facilities and staff quarters planned for subsequent stages of development.

In the New Territories, construction of the Fanling Hospital Extension commenced in August, 1978. The extension will bring the hospital to district hospital capability. During the year the MacLehose Dental Centre, which accommodates a training school for dental therapists and dental hygienists, a schoolchildren's dental clinic and other dental surgeries, was completed. The first intake of student dental therapists and hygienists took place in October, 1978, and the first schoolchildren's dental clinic will open in 1980. It is envisaged that five dental clinics for schoolchildren will come into operation by 1984.

In the next few years a number of major projects, as outlined in the government's 10-year Medical Development Plan to 1987, are expected to be completed. The 1,300- bed psychiatric wing of the Princess Margaret Hospital, which serves as a regional hospital for the west New Territories, will be completed by 1980. Site formation work for the 1,400-bed teaching hospital at Sha Tin has commenced and it is expected to become operational in 1982. Preparatory work on another important hospital, the 1,300-bed Tuen Mun Hospital, has started. This project is scheduled for completion by 1984. More than 10 clinics, polyclinics and health centres will be completed and

HEALTH

brought into use over the next five years, starting with the Sha Tin general clinic in 1980.

A second medical school in Hong Kong is to be established at the Chinese Uni- versity of Hong Kong. The first pre-clinical intake will be in 1981 and the school will eventually produce 100 doctors a year. The new hospital at Sha Tin will serve as the teaching hospital. Two more nurse training schools are also planned over the next five years.

At the University of Hong Kong, which has had a medical school since its founda- tion in 1911, it is planned to establish a dental school in 1980. The first 60 dentists are expected to graduate early in 1985.

　　　　　　To ensure the efficient use of hospital beds and medical facilities, medical and health services have been regionalised since April, 1977, with the territory being divided into four regions. The objective is to bring about a better appreciation of the medical and health needs of the main population centres. The results of regionalisation have been encouraging. Although the demand for services at two regional hospitals - Queen Elizabeth Hospital and Queen Mary Hospital - still remains high, congestion has been relieved and bed occupancy in the various district hospitals has increased significantly.

In addition to hospitals and clinics, the Medical and Health Department provides services covering family health, school health, mental health, industrial health, port health and the control of communicable diseases.

　　　　　　For the 1978-9 financial year the Medical and Health Department's estimated expenditure is $560 million. In addition, subventions totalling about $295.6 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 $44.8 million.

Health of the Community

The Hong Kong community overall enjoys good health as evidenced by its low mortality rates and a continued decline in the incidence of communicable diseases. This decline is attributable to improved environmental conditions, the development of maternal and child health services, and an increasing public awareness of the value of these services.

There were two cholera cases reported in 1978. Appropriate precautionary measures were taken to prevent the spread of the disease.

Cancer and heart diseases are the main causes of death in Hong Kong. The in- cidence of and the number of deaths from tuberculosis continued to drop. About 98 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. A case-finding campaign that was undertaken in April, 1978, achieved a good response and there are plans to launch another major campaign in 1979.

Venereal diseases are treated free at social hygiene clinics. A very small percentage of the patients are teenagers. Energetic control measures such as contact tracing, following up defaulters and routine antenatal blood testing are directed at interrupting the chain of infection.

HEALTH

　　　　　　Malaria transmission has practically ceased in Hong Kong. However anti-larval operations such as the draining and clearing of streams and oiling are still carried out. Poliomyelitis has been eradicated for the past five years. Oral vaccines are offered at family health centres.

Measles was at one time prevalent among children under five but, since the in- troduction of an anti-measles vaccine in 1967, its incidence has been drastically reduced. A small outbreak in the children of Armed Forces' personnel was noted in June and July. In September rubella vaccination was introduced into the immunisa- tion programme. The immunisation was directed at girls aged 11 to 14 years and women of childbearing age.

Hospitals

　　　　　There are three types of hospitals in Hong Kong - government, government-assisted and private, with a total of 20,135 beds representing 4.4 beds per thousand of the population. Institutions operated by the Armed Forces are excluded. The four major regional hospitals are Queen Mary, Queen Elizabeth, Kwong Wah and Princess Margaret Hospitals.

Queen Mary Hospital, with 1,179 beds, is the regional hospital for Hong Kong Island. It is the teaching hospital for the Faculty of Medicine at the University of Hong Kong.

Queen Elizabeth Hospital, the largest general hospital in Kowloon with 1,938 beds, is the regional hospital for east Kowloon and the east New Territories.

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

Princess Margaret Hospital has 1,260 beds. It serves as a regional hospital for the west New Territories and contains an infectious diseases unit and a geriatric unit. As a result of the regionalisation scheme, the bed occupancy rates of government- assisted hospitals such as Pok Oi, Buddhist, Tung Wah and Yan Chai Hospitals have been brought up to more than 80 per cent.

Clinics

Out-patient services provided by the government, subsidised organisations and private agencies are developing steadily. The government operates 52 general out-patient clinics and a number of polyclinics and specialist clinics. During the year demand remained high at these clinics. Evening, Sunday and public holiday sessions continued at clinics situated in the more densely populated areas.

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 with assistance from the Royal Hong Kong Auxiliary Air Force.

At the end of 1978, 403 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 319 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, continued to operate during the year.

HEALTH

Family Health

　　　　　The Family Health Service operates a total of 38 centres, each of which provides a comprehensive health care programme for women of child-bearing age and children up to five years. Family planning is an important component of the Family Health Service. In 1978, more than 90 per cent of new-born babies were taken to a centre for attention and advice on at least one occasion. A comprehensive observation scheme was introduced in April, 1978, to provide special attention to infants and children with a higher than average risk of developing disabilities, so that early remedial action can be taken.

The government-subvented Family Planning Association of Hong Kong runs a further 22 clinics that provide vasectomy, female sterilisation and sub-fertility services as well as advice to young people. It conducts educational programmes for schools and community agencies; runs training programmes for midwives, teachers and social workers; organises information and publicity campaigns; and carries out clinical trials and surveys.

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 $30 a year for each pupil enrolled and also covers the board's administrative 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 inspections and health officers immunise schoolchildren against childhood infectious diseases. During the year, rubella vaccination was introduced into the school immunisation programme.

Mental Health

The Mental Health Service provides full-time care for 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 psy- chiatric service in a general hospital setting. The 1,300-bed psychiatric wing now being built at Princess Margaret Hospital will be completed by 1980.

Supplementing hospital treatment are five day centres the Hong Kong Psy- chiatric Centre, the psychiatric unit in Kowloon Hospital, the Yau Ma Tei Psy- chiatric Centre, the Chai Wan Psychiatric Centre and the South Kwai Chung Psy- chiatric Centre. Occupational, social and recreational therapies are provided at the centres. Severely sub-normal patients are cared for at Siu Lam Hospital. At the end of the year, the Caritas Medical Centre extension was completed and it will provide 288 additional beds for mentally retarded children who require hospital treatment. Voluntary agencies are working closely with the Mental Health Service to assist in the rehabilitation of patients before they return to full-time activities in the community.

Industrial Health

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 work- ing in compressed air. All such workers are medically examined and advised on the symptoms of decompression sickness and what to do if they 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 undertakes dental care for all monthly-paid gov- ernment servants and their dependants and offers limited treatment for government hospital in-patients, 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, was completed in October, 1978.

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

Port Health

　　　　The Port Health Service is responsible for enforcing control measures to prevent the introduction of diseases, which are subject to the International Health Regula- tions, into Hong Kong by sea, land, or air.

　　　　　It provides facilities for vaccination and the issuing of international vaccination certificates. It also inspects and eradicates rats from ships on international voyages. The service provides medical assistance to ships in the harbour, transmits medical advice to ships at sea, operates a 24-hour health clearance service for all incoming vessels, and grants radio pratique to ships from clean ports.

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

Special Services

The Institute of Pathology runs clinical pathology and public health laboratory services for the government and a consultant service for the government-assisted sector. Vaccines are produced at the Institute of Immunology. Various virus studies on hepatitis, poliomyelitis, influenza and rubella are continually undertaken.

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 medical, commercial and industrial premises to inspect the working conditions of radiation workers and to

HEALTH

ensure that radioactive equipment and substances pose no hazard. Research is being carried out on the epidemiology of nasopharyngeal carcinoma.

　　　　　　The Forensic Pathology Service of the Medical and Health Department works closely with the Royal Hong Kong Police Force on the medical aspects of criminology.

Medical Fees

The government charges $1 for each consultation at a government clinic and this fee includes medicine as well as X-ray examinations and laboratory tests. If a patient requires a specialist's opinion, he is referred to a polyclinic for consultation which also costs him $1 per visit. This charge is waived for some patients. Treatment for tuberculosis, leprosy and venereal diseases is free and so is maternal and child health guidance including antenatal and post-natal care for the mother and immunisation for the child.

　　　　　　Patients in the general wards of government hospitals are charged $5 a day for diet, X-ray examinations, laboratory tests, drugs, surgery, and any other forms of special treatment required. Again this daily maintenance charge may be waived. A limited number of private rooms are provided at major hospitals. The maintenance charges for these are much higher and additional charges are made for treatment procedures.

Training

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

The University of Hong Kong 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 1980.

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

A new Institute of Medical and Health Care was established at the Hong Kong Polytechnic to provide training for paramedical staff. Four courses were set up in October, 1978: radiography, physiotherapy, occupational therapy and medical laboratory science.

There are three government hospital schools of nursing for registered nurses. Two are for general nursing and one is for psychiatric nursing. Other approved nurse training schools are attached to government-assisted or private hospitals. The government also runs courses for training enrolled nurses in general nursing and psychiatric nursing and a one-year course in obstetric nursing for registered nurses. The government conducts a continuous post-graduate overseas training programme for qualified nurses as well as in-service training in various fields. It also runs training courses for student health visitors and health nurses engaged in public health work.

Government Laboratory

HEALTH

　　　　The Government Laboratory is an independent agency providing practical and advisory services to government and the private sector in the field of applied chemistry and related scientific disciplines.

　　　　　The General Division of the Laboratory is responsible for examining food, dutiable products, pharmaceuticals and a wide range of commodities and materials. The division is also responsible for providing analytical support services to environmental protection activities, in particular the more complex determinations that are required and pilot scale work for the pollution monitoring units of the government.

　　　　　The Law and Order Support Group is embodied in the Forensic Division of the Laboratory which provides scientific services to the Royal Hong Kong Police Force, the Customs and Excise Service, the Independent Commission Against Corruption, the Immigration Department and other law enforcement organisations. This division. is responsible for work in such areas as narcotics, toxicology, scheduled poisons and general forensic science. The General Forensic Science Section includes a questioned. document laboratory, a new forensic blood matching unit, and an arson investiga- tion group: broadly it deals with the scientific investigation of crimes against both property and people.

　　　　　A special unit carries out urinalysis of patients attending the methadone mainten- ance and detoxification centres.

Drug Abuse

Drug abuse is a serious and long-standing problem in Hong Kong with social, cultural, legal, medical and psychological implications. In recent years, Hong Kong has been relentlessly dealing with the problem of drug abuse and trafficking. With the continuing advance on all fronts of its anti-narcotics work, Hong Kong can justifiably claim that it is containing the number of its existing addicts, has prac- tically eliminated the use of the territory as an export source of opiate drugs, and is making significant progress in preventing the spread of drugs among young people. An important development in anti-narcotics efforts during 1978 was completing the reorganisation and computerisation of the Central Registry of Drug Addicts which was started in September, 1976. With the help of two consultants from New York, the registry came into full operation in August. This is a major step forward as the flow from it of regular computerised reports will provide the government and voluntary agencies with a better insight into Hong Kong's overall drug problems and enable them to assess the effectiveness of various prevention and treatment

programmes.

　　　　　A preliminary analysis report from the registry, based on 58,900 records sheets collected between September, 1976, and June, 1978, indicates that the number of Hong Kong's drug dependants may be less than the estimate of 50,000 to 100,000 which has hitherto been commonly quoted. The report confirms that heroin is the main drug of abuse in Hong Kong. Results indicate that 83 per cent of the addicts use heroin, 12 per cent use opium, and the remaining five per cent use other drugs. With regard to geographical distribution of addicts, 36 per cent live in New Kowloon, 24 per cent in Kowloon, 22 per cent on Hong Kong Island, 17 per cent in the New Territories and on outlying islands, and 0.2 per cent in marine areas. Sixty-five per

HEALTH

cent of them are 30 years and over; 32 per cent are in the 20 to 29 age bracket and only three per cent are aged 19 or under.

　　　　　　The report also indicated a marked increase in the proportion of addicts injecting heroin. Although the majority of addicts in Hong Kong still use the fume inhalation method, commonly known as 'chasing the dragon', statistics show that about 32 per cent are using the injection method compared with 14 per cent in 1972 to 1974. The increase is probably due to some addicts trying to get greater mileage out of their limited and expensive supplies.

Typical addicts are males more than 21 in the lower income group, generally employed as unskilled or semi-skilled labourers or factory process workers, with five or less years' education, and living in overcrowded accommodation. They are generally single or, if married, usually separated from their families. The reasons mostly given by addicts experimenting with drugs were the influence of their friends, curiosity and an urge for fun and 'kicks'. Some addicts mentioned their initiation into heroin use as a means to increase sexual ability and pleasure, to relieve fatigue, to mitigate pain caused by certain diseases and to escape from the frustrations of life. On an average, an addict is now spending $30 to $50 a day to maintain his drug- taking habit. This means if 35,000 addicts are each spending $30 a day on drugs, the total sum involved would be about $380 million a year.

Besides the cost of addiction to the addicts themselves, the government at present is spending $158 million a year on the fight against narcotics. Efforts in this field are carried out according to an overall strategy which consists of four main elements - law enforcement, treatment and rehabilitation, preventive education and publicity, and international action. These efforts, carried out by various government depart- ments and government-subvented voluntary agencies, are co-ordinated by the Action Committee Against Narcotics (ACAN), a non-statutory body comprising officials from government departments and voluntary agencies and community represent- atives. The committee is serviced by the Narcotics Division of the Government Secretariat, which is headed by the Commissioner for Narcotics.

In its treatment and rehabilitation of addicts Hong Kong has developed, over the years, a range of programmes.

　　　　　　The Narcotics and Drugs Administration Division of the Medical and Health Department operates four methadone maintenance centres and 17 methadone detoxification clinics throughout Hong Kong. By the end of the year, a total of 7,721 patients had registered for treatment in both programmes with 5,163 of them still attending, representing an attendance rate of 67 per cent. Although it is rec- ognised that methadone detoxification and methadone maintenance are types of treatment with different objectives 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 - flexibility is exercised between the two programmes. The avail- ability of methadone treatment facilities in convenient locations, coupled with the scarce supply and high price of drugs, has induced many addicts to seek treatment at these centres. It is significant that the methadone programmes now deal with two-and-a-half times more patients than the combined total of other treatment facilities.

HEALTH

The Society for the Aid and Rehabilitation of Drug Addicts (SARDA), which is subvented by the government, operates the largest voluntary in-patient treatment programme in Hong Kong. It has two in-patient treatment and rehabilitation centres, one for men on the outlying island of Shek Kwu Chau and the other for women in Wan Chai. Linked with these two centres are six regional after-care centres, three units for the intake of patients and three hostels. The two centres, which operate an 'open door' policy by allowing patients to leave any time they wish, provide treatment ranging from a week-long course purely for physical withdrawal from drugs to a full course of 20 weeks which includes work therapy and rehabilitation. During 1978 2,767 patients, including 88 females, were admitted to SARDA's two centres. During 1978, the one-year pilot project on acupuncture - electro-stimulation which started in July, 1977, was extended for six months. The extension was to allow sufficient time for the final report of the pilot scheme to be studied and a decision to be made in respect of long-term arrangements. By the end of 1978, a total of 1,025 patients were admitted for treatment.

　　　　　Under these programmes and the Prisons Department's compulsory treatment programme being carried out in four treatment centres, there are about 14,000 people receiving some form of treatment, rehabilitation and after-care every day, compared with about 6,000 five years ago. The expansion of treatment facilities has contributed to a major decrease in the number of those convicted of minor drug offences, from 16,200 in 1974 to 6,700 in 1977.

　　　　　Also playing an important role in Hong Kong's fight against drug abuse is pre- ventive education and publicity. Work in this area is focused on fostering public awareness of the dangers of drug abuse, promoting community involvement to deal with the problem and preventing young people from experimenting with drugs. In 1978, the government launched its largest-ever preventive education and publicity campaign. Events organised within the period included three intensive month-long district anti-drug campaigns in Tai Po, Aberdeen and Wong Tai Sin, a study camp for youth leaders, a drug education display competition for secondary students as well as the production and use of various publicity materials such as television clips and dramas, leaflets and posters. In addition, exhibitions and mobile street theatres were employed.

　　　　　The Drug Abuse Telephone Enquiry Service, which started in September, 1977, continued to operate in 1978. By the end of the year, 151⁄2 months after it began, a total of 7,841 enquiries had been received.

　　　　　Externally Hong Kong continued to give unstinted support to international action against drug abuse and trafficking. For many years Hong Kong has maintained close links with the United Nations, with inter-governmental agencies such as the Colombo Plan Bureau and Interpol, and with individual governments in Southeast Asia, Europe and North America. During 1978, Hong Kong took part in 11 international meetings which were concerned with anti-drug law enforcement, treatment and rehabilitation, and preventive education. In the same year, Hong Kong made its fourth annual contribution of $100,000 to the United Nations Fund for Drug Abuse Control (UNFDAC) in support of its world-wide control efforts, which include the opium poppy crop substitution programmes being conducted in the 'Golden Triangle' region, where the boundaries of Burma, Laos and Thailand meet. It is

HEALTH

from this area that most of Hong Kong's opiate drugs come. The advanced tech- niques and methods used in anti-narcotics work in Hong Kong have made the territory an increasingly important venue for the training of anti-narcotics officials from other countries. During 1978, Hong Kong arranged training attachments and instructional visits for a total of 96 officers from all over the world.

On legislation against drug abuse, an important amendment which became law in June, 1978, was an updating of the definition of 'cannabis' to cover the entire plant. While there is no widespread abuse of cannabis in Hong Kong, the government is of the view that timely preventive measures must be taken.

Environmental Hygiene

The work of the Urban Services Department includes street cleaning, the collection and removal of refuse and nightsoil, the management of public toilets and bathhouses, and the disposal of the dead. In the urban areas the department operates as the executive arm of the Urban Council, whereas the authority for the New Territories is the Director of Urban Services.

Special vehicles collect about 2,800 tonnes of household refuse daily. Of this, some 1,500 tonnes are incinerated and the rest is disposed of at controlled tipping sites. There is also a nightsoil collection service for the few remaining areas of Hong Kong which have no water-borne sewage disposal system.

　　　　　　All streets are swept at least once a day, either manually or mechanically, while busier thoroughfares are swept more frequently. All streets are washed by special vehicles once a week. Despite this, and the provision of about 32,000 litter bins and containers, litter remains a problem. The 'Keep Hong Kong Clean Campaign' has therefore continued with particular emphasis on public education, community involvement and enforcement of legislation. More than 41,310 people were fined for litter offences during the year.

Controls

District health inspectors continued to take action to ensure that standards of hygiene were maintained at satisfactory levels. During the year they carried out regular inspections of licensed premises, residential and commercial buildings, construction sites, and dealt with vermin infestation and complaints about unhygienic conditions. In appropriate cases arrests were made and summary action was taken if public health laws had been contravened.

The Food Section operates a food safety programme which monitors food products offered for sale. To increase efficiency food inspection units in Hong Kong, Kowloon and the New Territories were centralised at the beginning of the year, enabling the section to take emergency action where necessary. In addition to routine food sampl- ing and testing, the section sets out to obtain the co-operation of food traders in the promotion of food safety. Importers are advised of the precautions needed to minimise the amount of contaminated foods offered for sale, and manufacturers are warned of the possible hazards associated with food processing and how best to overcome them.

In 1978, the Health Education Section produced features on health topics which were publicised through the mass media. In addition lectures were given to school-

children, members of the catering trade and voluntary welfare agencies.

HEALTH

Licensing of premises under the Public Health and Urban Services Ordinance and the Places of Public Entertainment Ordinance is now carried out by a central licensing unit.

Inspections and preventive measures to control rodents and major insect nuisances continued. Source reduction methods and regular larviciding were carried out on potential breeding grounds for malarial mosquitoes. The control of mosquitoes in the urban areas was supplemented by new legislative measures. The Pest Control Advisory Unit continued to provide technical advice to departments and the public. During the year 11 health inspectors were sent abroad to undergo more specialised training in health education, noise control, administration, food technology, and cemetery and crematorium management.

Markets

Several innovations in market design are featured in the Yue Wan Estate Market at Chai Wan which was completed in November at a cost of $5.7 million. The market complex includes a public library, sitting-out area, children's play area, cooked food centre, and an Urban Services district sub-office. Suggestions from the trade associa- tions representing meat, fish, poultry, vegetable and fruit dealers were considered during the planning of the market, resulting in the provision of partition walls for small stalls and working benches of varying sizes to suit different types of stalls. In order to speed up the construction of new retail markets, private architectural consultants have been engaged to design and build two multi-purpose market buildings in Tin Wan and Aberdeen. Both projects are at an advanced stage of planning.

Hawkers

The number of hawkers in Hong Kong is estimated to be about 43,000. It seems unlikely that this number will diminish significantly until more off-street markets are provided and hawkers can become market stall-holders.

　　　　　　　In June, the Urban Council elected to disband the Hawker Control Force and to create additional General Duties Teams to control hawkers. To meet part of in- creasing management costs, licence fees for fixed pitch stalls and mobile vans were increased. The last increase took place in December, 1975.

　　　　　　As a matter of general policy, the Urban Council has decided that hawking should be regarded as a business and that welfare considerations should not influence the granting of hawker licences. Needy families are being encouraged to seek help through public assistance and other services provided by the government and voluntary welfare agencies.

Abattoirs

　　　　　More than three million pigs and 162,000 cattle were slaughtered in the two abattoirs at Kennedy Town, on Hong Kong Island, and Cheung Sha Wan, in Kowloon, in 1978. The cattle dressing lines in the Kennedy Town Abattoir were fully mechanised in November and mechanisation at Cheung Sha Wan is proceeding. An additional

HEALTH

lairage for 4,000 pigs at the Cheung Sha Wan Abattoir was completed in September, bringing the pig lairage capacity to 14,000.

There are two licensed private slaughterhouses at Yuen Long and Tai Po in the New Territories, where health inspectors of the Urban Services Department supervise activities.

Services in the New Territories

The Urban Council Ordinance limits the functions and responsibilities of the Urban Council to the urban areas of Hong Kong Island and Kowloon. In the New Ter- ritories, excluding New Kowloon, these functions are the responsibility of the Director of Urban Services and are discharged by staff of the New Territories Region of the Urban Services Department.

The Urban Services Department is responsible for the maintenance of adequate standards of public health and the administration of such services as cemeteries and crematoria, cleansing and pest control, hawkers, the management of public markets and the provision of recreational and cultural amenities.

　　　　　　With the rapid development of the New Territories, a large number of additional posts have been created within the Urban Services Department for the expansion of cleansing services, library facilities, hawker management, and for the manning of new projects.

Additional staff were also provided for the establishment of regional offices at Kwai Chung, Tuen Mun and Sha Tin. In the past, departmental services for these areas operated from Tsuen Wan, Yuen Long and Tai Po Urban Services offices.

During the year, 11 capital projects were completed. These projects covered a wide range of services including markets, cooked food bazaars, playgrounds, gardens, swimming pools, beach buildings and refuse collection points.

On the operational side, efforts were directed towards the raising of standards of hygiene and improving recreational services. An extensive exercise was carried out to tidy up and strengthen control of licensed premises. In the area of cleansing, emphasis was placed on the clearance of polluted streams, choked nullahs, and the maintenance of popular picnic areas and gazetted beaches which attract many visitors at weekends and on public holidays.

Cemeteries and Crematoria

The Urban Council provides inexpensive and, if necessary, free funeral facilities in the urban areas. In June, a new public funeral hall came into operation at Hung Hom. The Tung Wah Group of Hospitals also provides non-profit-making funeral services.

　　　　　　The officially-encouraged trend towards cremation instead of burial continues, and the ratio of cremations to burials in 1978 was 44:56. A new crematorium at Kwai Chung is expected to come into service in mid-1979, and a replacement for the existing Diamond Hill Crematorium in Kowloon is due for completion ahead of schedule in early 1979. The urban areas have five public cemeteries, two public crematoria and 19 private cemeteries, and the New Territories have five public cemeteries, one public crematorium and eight private cemeteries.

Housing and Land

THE

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DURING 1978 the government's housing programme gained momentum with con- struction proceeding on 57 projects with a contract value of more than $2,200 million. In October, 1978, in his annual address to the Legislative Council, the Governor said: 'All the laborious work of site acquisition, preparation, design and construction is at last reaching fruition and completions will rise from 18,000 flats this year to 45,000 next year. The Governor said a level of 40,000 to 45,000 flats would be maintained until 1985, providing housing each year for about 250,000 people.

　　　　　　Hong Kong's public housing programme was launched in early 1954 following a disastrous fire on Christmas Day, 1953, in the Shek Kip Mei squatter area which left 50,000 people homeless.

When the public housing programme started, the situation appeared desperate indeed. An immense influx of immigrants had boosted the population from 600,000 to more than two million. The excess of births over deaths was more than 1,000 a week and there was nowhere to live. The stock of some 170,000 dwellings, mostly in substandard pre-war tenement buildings devoid of proper sanitary and living facilities, was pitifully inadequate. Division and further subdivision into cubicles and bedspaces had robbed their floors of any light and air they once might have possessed. The late-comers, and those who could not bear the overcrowding or afford the soaring rents, took to the paddy fields and steep hillsides where they built flimsy huts of tin, wood and cardboard which, at that time, housed one-quarter of the population. It was in these crowded areas that the squatter fires were so prevalent in the dry winter

season.

　　　　　　Only 53 days after the great Shek Kip Mei fire the decision to provide government housing had been taken, and the Public Works Department had built two-storey emergency blocks sufficient to house 35,000 people. These soon gave way to the six and seven-storey Mark I resettlement blocks which are still a feature of the urban scene and still house more than 400,000 people.

　　　　　　In 1954, the Resettlement Department was formed to clear and rehouse squatters and to manage the new blocks. The Housing Authority was also established to build and manage a rather better type of public housing for which tenement dwellers, in crowded conditions and with low incomes, could apply on a waiting list. Both types of housing were in overwhelming demand.

　　　　　　Today more than two million people, or about 46 per cent of the population, live in some 400,000 government-provided or subsidised flats. Another two million live in private sector accommodation in some 400,000 flats which are mostly self-contained,

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Previous page: Stirred by the rhythmic beat of their drummers, crews compete in the International Dragon Boat Races held in Victoria Harbour. Above: The Governor, Sir Murray MacLehose buys tangerine tree at the Lunar New Year Fair in Victoria Park.

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　　　　　Chanting Taoist priests celebrate Yue Lan, the Festival of the Hungry Ghosts, while a musician (below) accompanies them on a 'duen tung'. During Yue Lan in August, all the souls in the underworld are believed to return to earth for a holiday.

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Above: A woman and her two small children

burn joss sticks and offer food to a paper image of a deity who protects against evil spirits during Yue Lan.

Below: The vibrant hues of azaleas contrast with the white backdrop of Government

House during an 'Open Day' in March.

Above: Even the leafy attractions of the Urban Council's 11th annual flower show could not keep this toddler awake.

Below: An exhibition of toys made by viewers of Radio Television Hong Kong's 'Youth Call' programme captured the rapt attention of these girls at Victoria Park.

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dús to copyright restrictions. To view the image, please

contact library staff for a printed copy of the copyright work.

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Fierce young female warriors, handsomely attired, ride in a procession at Yuen Long commemorating the

birthday of the sea goddess Tin Hau, who is known as the Queen of Heaven.

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Bold flags bearing the names of martial arts clubs are carried through Chai Wan by straw-hatted youngsters

during the celebrations for Yue Lan, the Hungry Ghosts Festival.

تان

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　　　　　The Royal Hong Kong Police Force Band and a team of women police ribbon dancers received an enthusiastic reception when they performed at the Edinburgh Military Tattoo held in Edinburgh Castle, Scotland.

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an enormous improvement in living facilities and in densities. The remainder of the population lives in housing of non-permanent materials, but about half of this is in the rural areas and occupied by the farming and fishing communities.

Nonetheless, the problem is far from solved. The government's target is to ensure that every family has a permanent, self-contained home at a rent it can afford. This means replacing inadequate housing in the remaining squatter areas, private tene- ments and the early resettlement estates - and also building new homes to meet the needs of population growth and continuing immigration.

　　　　　　The age structure of the population indicates that the number of households will continue to grow from one million at present to 1.3 million in 1983, although the average size of households will diminish. Most of these new households will want, and will be able to afford, self-contained flats which will need to be built by both the government and the private sector.

The Housing Authority

　　　　　In 1973, the Resettlement Department and old Housing Authority were amalgamated into a new Housing Authority. This 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 works mainly through six committees: finance, building, management, operations, home ownership and appeals. The decisions of the Housing Authority are carried out by the Housing Department.

In 1977, revised financial arrangements between the government and the Housing Authority were drawn up. The authority is no longer required to pay any premium for the grant of land for public housing purposes but land value, derived from the residual method of valuation, is written into the Housing Authority's balance sheet as a government contribution. Drawings from the Development Loan Fund for new con- structions will be repaid over 40 years, interest-free. The current programme aims at producing 163,000 new rental flats over the next five years, by which time more than 60 per cent of the population will be in public housing.

Home Ownership Scheme

In 1977, on the advice of a government working party, the Housing Authority was invited to build, allocate and manage a new Home Ownership Scheme which envisages the construction of 42,000 flats by 1986. In December, 1977, the authority let building contracts for the first phase of the scheme which will provide 8,300 flats on six sites, to be completed in 1979-80. The flats will range in size from 37 to 60 square metres and each will have a living room, two or three bedrooms, a kitchen and bathroom. Finishes will be comparable to good private development, and will include teak parquet floors and closed circuit television door-telephones.

Selling prices, ranging from $93,000 to $186,000, are fixed on a non-profit-making basis. Special mortgage arrangements have been negotiated with leading banks and lending institutes and, on the strength of a government partial guarantee against

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default, the terms for mortgage loans provide for a minimum down payment of 10 per cent of the purchase price, a maximum repayment period of 15 years, and interest rates which will be kept within the range of 71⁄2 to nine per cent per annum.

Approximately 27,800 applications were received from eligible families with house- hold incomes of less than $3,500 per month, together with another 8,000 from the authority's tenants. A ballot was held in May to decide the priority for allocation of the 8,300 flats in the first scheme and they were allocated equally between these two

groups.

　　　　　　The sale conditions include the prohibition of resale within the first five years, and management by Housing Authority staff.

　　　　　　Planning is in progress for the second phase of the scheme covering 4,400 flats on six sites, to be completed in 1980-1. In addition, private developers have been invited to construct some 3,100 flats on three sites to similar specifications, which will be allocated at the same time.

Urban Housing and Redevelopment

　　　　　Private development and some 50 public housing estates occupy most of the develop- able land on Hong Kong Island and Kowloon, where population densities are among the highest in the world. However, every effort is being made to extract the maximum development potential from the remaining sites, many of which are occupied by squatter huts and resettlement cottages built in the 1950s. It is anticipated that some 60,000 public sector rental flats plus some 20,000 flats for home ownership will be built in the urban areas up to 1984.

During the year, 1,342 flats were taken over from the Public Works Department in the second phase of Yue Wan Estate in Chai Wan. This area already contains some 20,000 Housing Authority flats of varying ages, and redevelopment of the old Mark I and II blocks, built in 1959-63, is proceeding. Contracts were let for a new estate, Hing Man, in three 38-storey tower blocks.

　　　　　　In Aberdeen, the Housing Authority completed a two-block extension of 1,434 flats to its Wah Fu Estate, bringing the population to 64,800 on this popular sea-front site, which now contains two comprehensive shopping centres. Construction continued on the first estate of 3,800 flats on Ap Lei Chau, which will be linked to Aberdeen by a bridge.

　　　　　　In east Kowloon, a large number of flats, 8,927, were completed in four new estates. Fu Shan, a pleasant self-contained estate, was initially not the most popular owing to its location near a cemetery, but its 1,569 flats were nevertheless rapidly filled. The 2,193 flats at Choi Wan, together with a market and shopping centre, are the first phase of a large scheme which eventually will contain 8,860 flats and greatly expanded commercial and community areas.

Occupation of the first phase of Shun Lee Estate, with 2,000 flats in three twin- towers and a progressive multi-storey podium commercial centre, began in the second half of the year. With the 3,000 flats in two Public Works Department 30-storey cruciform blocks in neighbouring Shun On Estate, these developments comprise the first phase of what ultimately will be a self-contained township housing more than 60,000 people, in the foothills east of Kowloon.

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　　　　　　In west Kowloon, the Public Works Department completed six blocks of 2,400 flats in Upper Pak Tin Estate. This enabled the continuation of redevelopment of the Housing Authority's oldest Mark I estate, Shek Kip Mei, which was built in 1954-8. More than half the population of Shek Kip Mei Estate, or 33,000 people, have now been rehoused in improved self-contained flats. Nearby, 704 new flats in the second phase of Nam Shan Estate enabled other families to move from the second oldest Mark I Tai Hang Tung Estate (1955-6). The completion and occupation of a new commercial centre in this estate mark an important milestone in the authority's ambitious redevelopment programme, which will eventually remodel and completely change the environment of the 12 early estates. Meanwhile, however, the installation of water supplies and sanitary facilities to individual flats, the conversion of roof-tops to domestic flats, and a number of environmental improvements are making these older estates better places in which to live.

Housing in the New Towns

However, the bulk of public housing to be built over the next 10 years will be in the three new towns of Tsuen Wan, Sha Tin and Tuen Mun in the New Territories. While these three new towns are comprehensively planned as self-contained communities, the authority's new estates are also integrated neighbourhoods with a full range of schools, kindergartens, playgrounds and large shopping areas, as well as community and welfare centres, government offices and other facilities to meet the daily require- ments of residents.

Tsuen Wan New Town already contains 13 Housing Authority estates, with a further six under construction. On Tsing Yi Island the second phase of Cheung Ching Estate, with 1,460 flats in two twin-tower blocks, was completed. Further phases of this very large residential complex are still under construction. Work on Cheung Shan (Elephant Hill) Estate, attractively situated in the north Tsuen Wan hills, was nearing completion. Below Cheung Shan Estate, in the valley close to the future Tsuen Wan Mass Transit Railway terminus, Shek Wai Kok Estate was taking shape. In Sha Tin, the reclamation of Tide Cove is dominated by the two linked estates of Lek Yuen (completed in 1976) and Wo Che, which is currently under construction. A further nine Housing Authority estates are under construction or are being planned for Sha Tin New Town.

In Tuen Mun, 2,263 flats in Tai Hing Estate and a commercial centre were handed over by the Public Works Department during the year, completing the first phase. The flats in the three dominating 30-storey cruciform blocks in this estate were in con- siderable demand, both from applicants from urban areas as well as local families being rehoused in connection with the new town development. Another three blocks in Tai Hing Estate were under construction. Elsewhere in Tuen Mun New Town, two further estates were being built. Tuen Mun will eventually contain nine Housing Authority estates.

During the year, construction work also got under way on estates in the market towns of Tai Po, Yuen Long and Shek Wu Hui, as well as rural estates at Mui Wo and Tai O on Lantau Island.

Allocations

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The Housing Authority possesses a stock of 380,700 domestic flats, of widely varying sizes, amenities and rent levels. A large number of casual vacancies at existing estates became available for allocation during the year, either through tenants moving out (4,321 flats) or their moving to new larger accommodation (2,541 flats). It was there- fore possible to offer several alternatives to new tenants, as well as offering additional units to existing tenants to relieve overcrowding.

　　　　　　During the year 15,941 flats were allocated to 79,229 eligible people in the following 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. A total of 5,609 flats were allocated to families rendered homeless by development clearances, while 3,572 were allocated to the waiting list.

　　　　　　Any family of three people or a married couple who are residents of Hong Kong may register on the waiting list for public housing. The waiting list is long; since 1967, 387,535 families have applied, of whom 61,525 have been rehoused with another 184,125 found to be ineligible for public housing. Applications are considered in dated order but accommodation is only offered to those found, on investigation, to be living in poor housing conditions, whose family income is within a scale related to family size. This scale was revised at the end of 1977 and now ranges from $2,000 a month for a family of three to a maximum of $2,850 for a family of 10 or more.

Management

Management improvements, particularly in the older estates, continued to be made during the year. The door-to-door system of rent collection, which has been extended to all estates, ensures not only an enviable rent collection record (less than one per cent monthly arrears) but also is an important means of keeping in touch with public housing tenants who form nearly half the community.

Overcrowding in the older estates remains a major problem and some 51,600 families are still living in an area providing less than 2.2 square metres a person. However, with an increasing number of new estates being completed, all such families are now able to apply for transfer to new flats. The flats they vacate, usually being smaller and having a lower rent, are made available to smaller families. Other families wishing to move into a different flat can register with the Mutual Exchange Bureau or, if having substantial reasons other than overcrowding for moving, can request a transfer to a flat of the same size.

　　　　　　The authority is also quite an important commercial landlord, with 12,000 shops, banks and restaurant tenancies of various sizes. Most new commercial lettings are made by lump sum premium tendering; these continue to rise, in spite of the fact that new rents are set very close to market levels. Banks and some larger tenancies have been let following rental tendering, and the authority recently started to use this method, as an experiment, for smaller commercial lettings. New shop lettings are normally on three-year agreements, with provisions for rent review on renewal, while

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banks and restaurants are let for five years. However, some 10,000 former resettlement shops remain on monthly tenancies at low rents; an increase during the year brought their rents to about one-quarter of current market levels. The authority also manages 3,880 factory tenancies in 27 purpose-built blocks, and 7,590 cottages in various districts.

　　　　　　The authority lets about 230 premises on estates for various welfare and community purposes. These include primary and secondary schools, kindergartens, clinics, and child and youth centres. Hostels and centres are provided in some estates for the elderly and for mentally and physically retarded children and adults. Estate kaifong and residents' associations and block mutual aid committees are also provided with premises in most cases. Premises for police posts and offices for various government departments are generally let at commercial rents.

　　　　　　During the year, the Housing Ordinance was amended and by-laws enacted to give the authority greater power to control car parking on estate roads. Car ownership continues to increase and charges in future will be made for kerbside parking as is already the case for multi-storey carparks.

Maintenance and improvements are major items, particularly in the older estates. During the year, some $26 million was spent on contract cleansing and $80 million was spent on maintenance improvements, mainly painting contracts, planned pre- ventive maintenance of buildings and electrical systems, and estate improvements such as recreation areas and lighting. Closer control was also exercised over hawkers, both resited and mobile.

　　　　　　Close contact is maintained with tenants through regular visits by estate staff. In addition, regular meetings are held with more than 600 Mutual Aid Committees and other residents' associations established for purposes such as the 'Keep Hong Kong Clean' and 'Fight 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 $5.38 for each square metre.

During the year, 15 new temporary housing areas were completed, with a total capacity of 27,695 people. Seven older areas housing 9,360 people were closed, and the sites used for permanent development or new temporary housing. A total of 23,500 people entered temporary housing and improvements were made in the amenities of a number of areas through the provision of 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. The total capacity of the transit centres is about 1,700 people. A programme of improvements, including the provision of partitions, additional electric power points and ceiling fans in older centres, was completed and the centres now have resident caretakers.

Squatter Control and Clearance

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 an 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, 10,752 new huts and illegal extensions to surveyed huts were demolished by the Squatter Control Division in the urban areas and the Tsuen Wan district. The number demolished two years ago was almost twice that figure, indicating less pressure to build squatter dwellings.

　　　　　　As Hong Kong's economy continues to expand, so does the community's ability to improve and develop the scarce land resources available. However, with suitable land for development in the urban areas fast running out, the use of any urban land remain- ing usually entails the clearance of squatters first. In 1978, the clearance programme thus involved the removal of some 30,845 people in 159 clearance operations, yielding a total of about 343 hectares for development.

　　　　　　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 19,083 people in permanent public housing and a further 11,762 in temporary housing. A further 5,005 people were cleared from dangerous buildings, buildings involved in urban renewal, temporary housing areas and structures affected by natural disasters. Of these, 2,804 were allocated permanent housing and the balance temporary housing.

Town Planning

The overall objective of town planning in Hong Kong is to ensure that the limited land resources are planned to meet the competing needs of various uses. Sufficient land has to be provided for public and private housing, commerce and industry, recreation and community uses while the quality of the living and working environ- ment for the population is improved.

Statutory plans are prepared under the provisions of the Town Planning Ordinance. The Town Planning Board is responsible for the preparation and revision of draft statutory plans for existing and potential urban areas. During the year, the board

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published for public inspection 14 draft statutory plans including draft outline zoning plans for Diamond Hill, Tze Wan Shan, San Po Kong and Sha Tin. Following con- sideration of objections by the public and the holding of hearings for objectors, the board amended some of the draft plans and exhibited the revised plans for further public inspection.

Of the 39 planning areas in the urban areas, 24 are now covered by draft or approved statutory plans. In the New Territories, the new towns of Tsuen Wan and Sha Tin are covered by draft statutory plans and a draft plan for Tuen Mun New Town is under preparation.

The notes attached to a statutory plan provide for uses which are permitted in a particular zone and other uses for which the Town Planning Board's permission must be sought under Section 16 of the Town Planning Ordinance. This procedure allows greater flexibility in land use planning and the development control process to meet changing requirements. During the year, the board received and considered 90 applications for such permission, the processing of which involved a considerable amount of planning work. The present trend indicates that the number of applications is likely to increase with the revival of building development and the property market. The Town Planning Office of the Public Works Department provides services to the Town Planning Board, the Land Development Policy Committee and the New Terri- tories Development Progress Committee. The office prepares draft outline zoning plans for the Town Planning Board, and departmental outline development and layout plans and planning guides for the Land Development Policy Committee and the New Territories Development Progress Committee. It is responsible for develop- ment control and for the reservation of sites for government departments, utility com- panies and other community uses, and it provides planning advice to government departments, advisory bodies and the public.

Planning studies for the future use of released military lands continued in 1978. Planning proposals and layout plans for the use of the former Royal Air Force station at Kai Tak, Sham Shui Po Army Camp and Victoria Barracks were prepared.

Site investigations were carried out and planning briefs were produced for the processing of sites for the development of public housing estates, Home Ownership Scheme projects, and private sector participation in schemes to meet the government's housing target. Feasibility studies were also carried out and the Housing Department and other departments were consulted where necessary.

The Hong Kong Outline Plan, which provides the framework for district planning, was under active revision in the Town Planning Office. The plan lays down general planning concepts and guidelines for future population distribution and land develop- ment, and defines planning standards and locational factors for the provision of com- munity facilities. Most of the chapters of the plan were brought up to date and approved by the Hong Kong Outline Plan Steering Group and the Land Development Policy Committee. Land use, floor area and building condition surveys were carried out to update the data bank of planning information, and to provide background in- formation for the revision of statutory plans and departmental plans.

Many departmental plans for new development areas were prepared and existing plans were revised to take into account recent changes in planning policies, planning standards, population estimates, extension of the Mass Transit Railway and other

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trends. An up-to-date schedule of all existing statutory outline zoning plans, depart- mental outline development plans and layout plans is issued half-yearly to other government departments, utility companies and certain non-government organisations for their information.

Private Building

The boom conditions in the real estate industry generated in 1977 resulted in a sustain- ed high level of building activity in 1978, particularly in the domestic sector. Easy loan repayment terms at low interest rates stimulated demand for small-sized domestic units for both personal use and letting. The total usable domestic floor area provided in new buildings was 946,000 square metres; some 214,000 square metres more than in 1977. Ever-increasing land prices tended to put the small speculative developer at a disadvantage and a high proportion of development was carried out by large com- panies and consortia. Building projects tended towards a grander scale and com- plexity than those of recent years, and the task of scrutinising plans submitted to the Building Authority for approval became more exacting. In a number of submissions, computer calculations were used by registered structural engineers for the analysis of structures and the design of tall buildings. This made it necessary for the staff of the Buildings Ordinance Office to utilise a computer for checking computer-aided plan submissions. The total reported cost of new private buildings at the end of the year amounted to $3,022 million, an increase of 24 per cent over the previous year.

　　　　　　Several notable projects were under construction during the year. These included Chi Fu Fa Yuen, a high-rise residential complex at Pok Fu Lam, complete with in- tegrated commercial, transport, community and recreational facilities, which will ultimately house some 30,000 people; Causeway Centre, a 42-storey building on the waterfront at Wan Chai which, when completed, will be the tallest residential building in Hong Kong; and Fairview Park, located north of Yuen Long in the New Terri- tories, a large-scale project consisting of some 5,000 semi-detached houses with a town. centre built around an artificial lake. Fairview Park is of particular interest in that most of houses are to be of pre-cast concrete construction, with components fabricated on site in a large workshop.

　　　　　　Perhaps the completed project that attracted the most attention during the year was Stage I of the Royal Hong Kong Jockey Club's new racecourse at Sha Tin. The site of more than 100 hectares was reclaimed from the sea and the project comprises tracks for racing and training, stabling for 500 horses, a grandstand to accommodate 30,000 people, quarters for staff, an administration block and ancillary facilities.

Hotel schemes were very much in evidence; some 2,000 hotel rooms were under construction and a further 2,000 were in the planning stage. Other specialist projects being built included two ship-repairing yards on Tsing Yi Island.

　　　　　　The Temporary Restriction of Building Development (Mid-Levels) Ordinance expired on April 30, 1978, enabling the Building Authority to recommence processing applications relating to new buildings in the Mid-Levels area, for the first time since July 4, 1973. The Buildings (Amendment) Ordinance 1978 extended the definition of 'building' in the principal ordinance to include 'oil storage installation'. The Building (Oil Storage Installations) Regulations 1978 came into effect on May 1, 1978, with the object of minimising the risk of environmental pollution by regulating the design,

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construction, licensing, inspection, testing and maintenance of oil storage installations containing tanks with a capacity in excess of 110,000 litres.

　　　　　　Progress continued to be made in the control of unauthorised building works, with attention being directed mainly at buildings completed after July 31, 1975. The objective is to keep all buildings in this category under regular surveillance, with a view to instituting early action when irregularities are observed. By the end of 1978 the total number of such buildings under observation stood at 2,014. The extension of planned surveillance operations to embrace buildings constructed before August, 1975, was beyond available manpower resources, and statutory action in respect of these buildings was limited to instances of reported infringements which presented a serious hazard. Statutory action generally was directed at contraventions affecting areas of buildings in common use. The more prevalent offences were interference with means of escape arrangements, unlawful construction of balconies and the erection of unlawful structures on rooftops. A total of 1,500 notices were served, compared with 330 in the previous year.

The increased level of activity in the control and enforcement field highlighted a number of problems, of which one of the most frequently encountered was general ignorance of the law. To overcome this particular aspect, a working party was estab- lished to explore ways and means of increasing public awareness of the laws relating to building, and the dangers associated with illegal building works. As a first step, a series of illustrated explanatory leaflets was produced for distribution. These depict the more common types of unauthorised building works and highlight the associated dangers.

In February, 1978, a registered contractor lost his appeal against conviction for the unauthorised erection of a factory building in the New Territories, and the sentence of one month's imprisonment imposed by a lower court was upheld. The case was significant in that it represented the first occasion that a custodial sentence had been imposed for a breach of the Buildings Ordinance. Later in the year, a director and foreman of another construction company were also jailed for one month, having lost their appeals against conviction for offences under the Buildings Ordinance. In this instance, a 14-storey industrial building had to be demolished in 1977 after a life of only seven years. It was declared dangerous by the Building Authority after it was determined that seriously substandard concrete allegedly had been used in the construction.

The Specialist Branch of the Buildings Ordinance Office, comprising the Dangerous Buildings and Works Divisions, continued its principal role of seeking out and dealing with potentially dangerous private buildings, and carrying out building works on behalf of owners who failed to comply with statutory notices. Both divisions were heavily committed following Severe Tropical Storm Agnes in July. Two pre-war buildings partially collapsed in Central District during the storm, and the excep- tionally heavy rainfall weakened a number of other old buildings to the extent that they had to be statutorily closed and subsequently demolished.

　　　　　　Earlier in July, in Western District, the wall of a partially demolished three-storey building collapsed during demolition work, killing three people and injuring a number of others. Following an inquest into the deaths of the three people, a building con- tractor was charged with manslaughter.

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　　　　　　The Mass Transit Division continued to examine Mass Transit Railway proposals, in order to safeguard buildings adjacent to railway construction and to administer the Buildings Ordinance in respect of property development by the Mass Transit Railway Corporation.

Management of Buildings in Multiple Ownership

During 1978, 180 new owners' corporations were formed under the Multi-storey Buildings (Owners' Incorporation) Ordinance. This legislation, passed in 1970, enables owners of a building in multiple ownership to incorporate themselves and appoint a committee for the better management of their building, particularly to ensure its main- tenance and to uphold environmental standards. By the end of 1978, the total number of corporations was 1,234.

The City District Offices and the New Territories District Offices offer assistance and advice to owners and tenants, either on incorporation or on the formation of Mutual Aid Committees. Mutual Aid Committees have similar aims to owners' cor- porations but they are not statutory incorporated bodies or legal entities in themselves. Membership is open to all residents of a particular building. By the end of 1978, 3,455 Mutual Aid Committees 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 providing for exclusion from control of 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 in respect of 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 are also permitted where the landlord bears the rates and the rates liability is increased.

　　　　　　There is provision in the legislation for the exclusion from control of premises on account of redevelopment and so, year by year, the stock of pre-war buildings is gradually diminishing. Generally, possession is obtained subject to the payment of compensation to the protected tenants. The Rating and Valuation Department pro- vides a mediatory and advisory service to deal with many of the practical problems arising from these controls and, in particular, where exclusion proceedings are commenced or where buildings are declared dangerous by the Building Authority, to ensure that tenants and sub-tenants understand their rights.

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　　　　　　As a further step to improve its service to members of the public, the Rating and Valuation Department launched a Rent Officer Scheme in April, 1978. Under the scheme, rent officers attend selected City District Offices on set days each week to deal with referred cases and to answer enquiries on landlord and tenant matters relating to both pre-war and post-war premises.

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) Ordinance. 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 years or more. Tenancies held in the names of public bodies, corporations, foreign or Commonwealth governments, partnerships or firms are also excluded. The life of the present legislation has been extended to December, 1979.

For existing tenancies, landlords and tenants are free to agree to 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 his certificate of what increase may be made to the current rent. The amount of this in- crease is arrived at by taking the difference between the fair market rent, as determined 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 luxurious 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 on the rent payable but have to inform the commissioner. The commissioner has wide powers under the ordinance and issues certificates to assist 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 current shortage of domestic accommodation.

The views of local associations and societies that have an interest in property matters are made known to the government through meetings with their nominated representatives.

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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 development areas in Kowloon and the New Territories. The committee's report, published in November, 1977, showed that the existing programme of works provided a fairly steady programme of land production up to 1981-2 and could 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 on Hong Kong Island, Kowloon and New Kowloon is the responsibility 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. One section records and analyses all sales and lettings in the urban areas, in order to monitor 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 comprises professional officers seconded from the Crown Lands and Survey Office, assisted by his own departmental 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 towns of the New Territories 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 able to take part in the progress of the area.

　　　　　　Leases for certain special purposes, which have particular site requirements or other factors which would make a public auction undesirable, are offered for sale by public tender. These special purposes include capital-intensive industries, which introduce higher technology and more technological skills into Hong Kong, that could not be appropriately housed in multi-storey buildings. These sales are initiated only in

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response to a formal application, and in certain circumstances may be concluded by private treaty, subject to the approval of the Governor in Council.

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 are also made to the Hong Kong Housing Society for the construction of low-rent housing. It is also government policy, in certain areas, to modify old lease conditions which severely restrict the development permitted on a lot, in order 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 is divided among a number of owners. 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. At the start of 1978, where the premium exceeded $10 million, it could be paid by a down payment of $1 million followed by 10 equal annual instalments bearing interest at 10 per cent per annum. However, in the middle of the year, the Governor in Council altered the payment terms for such sites, increasing the amount of the initial down payment to $5 million plus a further 20 per cent of the difference between this sum and the sale price.

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 per annum.

Important Transactions

The highlight of the year's transactions was undoubtedly in August when the govern- ment sold, by public auction, a non-industrial site on Queensway, Central District, for $585 million. This was a record price of just over $146,000 per square metre.

Seven prime sites in Tsim Sha Tsui East were also auctioned by the government with unit sale prices ranging between $51,500 per square metre and $90,000 per square metre. The highest sale price was $415 million paid in September for a lot of 6,062 square metres.

　　　　　During 1978, four urban sites on Hong Kong Island and in Kowloon were granted to the Housing Authority for the Home Ownership Scheme. An additional urban site in Yau Tong was sold by tender to a private developer for development under the framework of the Home Ownership Scheme. Further areas of land previously used by the British Ministry of Defence, including 43 hectares at the former RAF Camp, Kai Tak, were handed back to the government.

　　　　　In the New Territories, master development plans for Hong Lok Yuen Garden Estate and the Discovery Bay Resort project were approved by the Secretary for the

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New Territories. The Hong Lok Yuen Garden Estate, a private development located three kilometres north of Tai Po, is 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 Discovery Bay Resort Project will provide holiday flats, garden houses, a hotel, a commercial area and resort facilities including a cable car, golf courses, sports and swimming areas.

　　　　　　Two sites in the New Territories, one in Lai King and one in Sha Tin, were granted to the Housing Authority for the Home Ownership Scheme. The Lai King site has an area of 1.75 hectares and will provide 700 flats. The Sha Tin site is larger, being in excess of 7.6 hectares, and has the potential for 3,500 flats. A lot of 1.61 hectares was offered by tender in Tuen Mun to a private developer to build flats for the Home Ownership Scheme.

Revenue

During 1978, revenue received by the government from land transactions in the urban area totalled $881.8 million, compared with $628.6 million in 1977. In the same period, revenue from land sales in the New Territories was $137 million. (Revenue includes premiums and instalments paid - not the total sale price achieved.)

　　　　　　The demand for temporary occupation of Crown land continues and, where possible, such land is made available under the terms of a short-term tenancy. However during the year, a new system was introduced in the urban areas whereby sites for open storage or parking of vehicles were offered on a competitive basis by open tender. For the year, revenue from the letting of tenancies amounted to $26.3 million in the urban areas and $17.2 million in the New Territories.

　　　　　　A further $7.6 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 are 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, New Kowloon (with a few exceptions) and some of 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, operated by the New Territories Administration.

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

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Since 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 fees or a premium. A special Home Ownership Section was established in the Land Office during the year to provide a conveyancing service for the Housing Authority, in connection with the sale of flats built under the Home Ownership Scheme. The section is responsible for completing the assignment of flats to successful applicants under the scheme. At the end of the year, 5,497 assignments had been completed.

　　　　　　The Land Registration Ordinance provides that all instruments registered under it shall have priority according to their respective dates of registration. This provision applies unless they are registered within certain time limits mentioned in the ordinance, in which case priority generally relates back to the date of the instrument. The ordinance 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. Registra- tion is therefore essential to the protection of title, but does not guarantee it.

　　　　　　During the year, the Land Registration Ordinance was amended by the Land Registration (Amendment) Ordinance 1978 which introduced a uniform period of one month after the time of execution for the registration of instruments, whether they are executed within Hong Kong or overseas. Special provisions were also made for the priority of charging orders and pending actions. For these two classes of instrument, priority runs from the commencement of the day following the date of actual registration.

During the year, the number of instruments registered in the Land Office rose 27.7 per cent to bring the total to 170,715, compared with 133,638 in 1977. More detailed statistics and comparisons with previous years are contained in Appendix 29. At the end of the year, the card index of property owners contained the names of 337,869 people, an increase of 22,028 over the previous year. Some own several properties, but most are owners or part-owners of small, individual flats.

Urban Renewal and Environmental Improvement

The complete redevelopment of old properties under the Urban Renewal Pilot Scheme, in an area bounded by Queen's Road Central, Queen's Road West, Hollywood Road, Shing Wong Street and Gough Street, has advanced to the stage where all private lots affected have been acquired and substantially cleared. With the land acquisition programme completed, the last stage of roadworks, consisting of the widening of two existing streets and the construction of a pedestrian promenade, is expected to be finished in mid-1979. Two sites were sold for a total of $49 million, adding to the accumulated revenue of $155.9 million derived from auction sales of sites within the scheme. It is planned to release further sites within this area for sale by public auction at regular intervals.

　　　　　　The purchase continued of privately-owned property zoned for open space and government, institutional and community uses in the town plans for Western District, Wan Chai and Yau Ma Tei. During the year, 68 properties were acquired at a cost of $39.4 million. In addition, the leases of 12 properties in the Yau Ma Tei district

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expired and the properties reverted to the Crown. Ex-gratia compensation was offered to the former owners of these properties and all eligible tenants were offered rehousing and given ex-gratia compensation. The cleared sites will be developed and managed by the Urban Council as open space areas.

In order to improve the general environment and market facilities in the Sheung Wan district, the government plans to acquire 13 private properties in connection with the Urban Council's proposal for the complete redevelopment of the existing Western Market, and the associated widening of Morrison Street abutting the pro- posed market complex. The complex, which is expected to be completed in 1982, will include a modern market, a district library, indoor games halls and other facilities for Urban Council activities.

The 36 properties resumed in 1977 in connection with the Hong Kong Housing Society's Urban Improvement Scheme at First and Second Streets, Sai Ying Pun, were cleared by July, 1978. The amount of compensation paid to former owners was settled either by agreement or by reference to the Lands Tribunal. All eligible former occupiers were rehoused and given ex-gratia compensation. The site will be developed as a modern complex comprising housing and a shopping area. It will also provide much needed community facilities to cater for the requirements of Sai Ying Pun residents.

The construction of the Canal Road Flyover Extension will necessitate the dis- placement of the existing Canal Road Hawker Bazaar. In order to facilitate this clearance and also to provide additional market space for the relocation of 'on street' hawkers, new market premises are being constructed on two sites bounded by Bowrington Road, Wan Chai Road, Chi Shing Lane and Chan Tong Lane. The two market sites will be linked by a pedestrian bridge across Wan Chai Road. The resumption, clearance and demolition of all properties involved in the scheme was completed during 1978. Construction of the new markets commenced and they are expected to be completed between May and August, 1979.

Acquisition for Public Purposes

The acquisition of private properties in 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 the acquisition of large areas of agricul- tural 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 Railway (Land Resumption and Related Provisions) Ordinance. If agreement cannot be reached on the amount of compensation, 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.

Large areas of land required for development in the new towns in the New Terri- tories are acquired by exchanging the land surrendered to the Crown, for land exchange entitlements conferring the right to develop sites in the new development

areas.

The Streets (Alteration) Ordinance and the Public Reclamations and Works Ordin- ance enable the government to undertake public works projects which may affect

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　　　　　private property and private rights. Provision is also contained in these ordinances for disagreement over compensation to be referred to the Lands Tribunal. The Streets (Alteration) Ordinance is being amended with a view to introducing a 'notice of intention to claim' procedure. This will enable people to make a more accurate estimate of their alleged losses once an undertaking has been completed.

During the year, $9.2 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 180 hectares of private land were also resumed for the implementation of new town layouts and public works projects in the New Territories.

In November, 1977, the Governor set up the Working Group on New Territories Urban Land Acquisition to examine land resumption methods in the New Territories. The working group submitted a report to the government on April 20, 1978, proposing, inter alia, changes in the Letter B exchange system and compensation rates. In general, the recommendations were accepted by the government and the new compensation terms were announced on July 14, 1978. Certain other recommendations made by the working group are being further studied by the government.

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.

Production from the Photogrammetric Unit increased during the year, following the introduction of a fifth plotting machine and an increase in the number of staff. However the demand for detailed survey plots, especially for engineering purposes, plus the requirement for terrestrial photogrammetric plotting in connection with the Geotechnical Control Office's studies, have led to a request for funds to purchase a sixth plotting machine. Consideration is also being given to increasing the output of the unit through a computerised system.

　　　　　Aerial photography for photogrammetric plotting purposes, engineering and environmental studies continued to be supplied by the Air Survey Unit. Use was made of the Royal Hong Kong Auxiliary Air Force's Islander aircraft in which air survey equipment is mounted.

Following a detailed assessment of the requirements for a more precise control system throughout Hong Kong - especially in connection with some of the major engineering projects envisaged - it was decided to re-observe the entire primary trigonometrical network, with subsequent breakdown to the second order network. A trilateration system involving the precise measurement of the lines between intervisible trigonometrical stations was employed. The trilateration scheme was completed late in the year, and the results are expected to be computed early in 1979. The demand for boundary surveys increased during the year. Title surveys are be- coming more complex as the density of development increases, particularly in the New Territories where a great problem exists regarding agreement on common boundaries between adjoining owners.

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　　　　　　Metrication of the 1:20,000 topographic dual language map series was completed and second editions to an improved specification were produced for three sheets. Production of the 1:10,000 monotone series was deferred pending availability of staff.

Volume Two of the Official Streets and Places Guide Book - Kowloon and the New Territories - was launched in August after considerable delay owing to more pressing priorities within the Survey Branch and at the Government Printer.

　　　　　　Two of the 'Countryside' series maps were revised and reprinted and compilation of the fourth in the series - Sai Kung and Clear Water Bay - commenced. The Official Guide Map was again revised and reprinted and remains a best seller. Cartographic illustrations were produced for several Information Services Department publications, including two booklets on market towns and rural townships. A new harbour chart and geological map were also completed. A colourful guide map of Central District - of the 'You are here' type -- to assist tourists and local people was displayed at the Star Ferry Concourse and work on a similar guide to Tsim Sha Tsui started. It is intended to display these maps at centres where they might be of interest and assistance to the public.

Design work was carried out for the proposed 1:5,000 series of New Territories maps which it is hoped to commence in 1979. Nine maps relevant to new legislation regarding height restrictions at Hong Kong International Airport were completed. The production of metric basic maps at 1:1,000 was disappointingly slow during the first half of the year. A policy change then was made to metricate on a crash programme, utilising the imperial contours with converted metric values only. The coverage can therefore be completed in three years, while the normal, completely metricated pro- duction will proceed on a routine basis geared to a longer term programme.

The Public Works Department's Survey Training School provides training for both the survey and cartographic disciplines within the department, as well as cartographic training for the New Territories Administration and specialist courses for other departments. During the year, 291 officers attended various courses at the school.

Social Welfare

福社

新藥

ONCE again 1978 was a year of substantial progress for Hong Kong's social welfare services. Following a thorough and wide-ranging review in 1977 of social security and welfare services, plans were implemented to extend public assistance and old age allowances, to develop more rehabilitation facilities and to increase social work among young people.

Essentially in 1978 the foundation for a broader social welfare initiative was laid. A comprehensive White Paper forming the basis for considerable development and expansion of social welfare services was compiled. The White Paper incorporates the proposals contained in the 1977 Green Papers dealing with development of social security, services for the elderly, and personal social work among Hong Kong's youth. Some $535 million - $528 million in recurrent expenditure and $6.8 million in capital expenditure is being spent on social welfare in the 1978-9 financial year. During the next five years, $223 million in capital expenditure and an increase of $513 million in the level of recurrent expenditure will be invested in social welfare programmes.

Responsibility for implementing government policies on social security and welfare rests with the Director of Social Welfare, who heads the Social Welfare Department. The government's key areas of interest have been the social security system, services for the aged, increased facilities for the rehabilitation and support of the mentally and physically handicapped, and improved services for certain categories of young people. Major achievements in 1978 included the extension of public assistance to cover the able-bodied unemployed; an 11 per cent increase in all social security payments; the lowering of the minimum age for the old age allowance from 75 to 70; and the in- troduction of an old age supplement for public assistance recipients between the ages of 60 and 70. A scheme has also been introduced in which the marginal earnings of those who are not normally expected to be in full-time employment can be disregarded in assessing entitlement for public assistance. As well, people who have been on public assistance for more than 12 months can now draw a long-term supplement. For those who are dissatisfied with the decisions of social security officials, an independent appeal board has been established. Finally, people who are under residential institu- tional care can now draw a disability or old age allowance, in spite of being in such

care.

Important projects during the year have mainly been in pursuit of the aims of the Social Welfare Five-Year Development Plan and include three new community halls, each serving about 30,000 people in public housing estates; a new, improved design for larger community centres; 1,000 more subvented nursery places, including the first

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nursery to be set up in a temporary housing area; and a new girls' home at Ma Tau Wai with accommodation for 144 girls, more than twice that of the previous home. A sheltered workshop, a hostel for old people, and a care and attention home for the elderly have also come into operation. Two residential and day centres for severely mentally retarded children were also established with a total of 100 residential and 80 day care places.

　　　　　　Because of expanding social welfare activities both within the department and in the voluntary sector, the Social Welfare Department is being reorganised to emphasise a more comprehensive and better co-ordinated approach to the delivery of services. The existing divisional organisation, which has resulted in a large number of frag- mented and specialised facilities in the field, is giving way to a regional management structure. Four regions are to be established with 11 district offices in Hong Kong, Kowloon and the New Territories. The main point of contact with people will be the social welfare district or sub-district office, where all front-line services will be placed under one roof. The department plans to convert to a full regional organisation in April, 1979.

A review of training needs and the social work profession has also been undertaken. Its objective is to ensure a steady improvement in the performance of people working in the profession, both in the public and voluntary sectors, and to provide a reasonable career structure suited to the scope of the duties involved.

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

　　　　　　While the divisional structure of the Social Welfare Department is soon to be replaced by a regional organisation, basic tasks in the field will remain. In 1978 the Social Welfare Department operated through six divisions: the Group and Community Work Division, which aims to develop social responsibility and coherent community groups; the Family Services Division, which is responsible for a wide range of services designed to help families and family members; the Rehabilitation Division, which serves the disabled; the Probation and Corrections Division, which provides services for the courts and operates correctional institutions for young offenders; the Social Security Division, which is responsible for the public assistance and other social security schemes; and the Elderly Division, a new division set up in August, 1978, to develop services and facilities for the elderly. These divisions are supported by units dealing with training, planning and development, research and evaluation, and public relations.

Voluntary agencies play a vital role in the provision of social welfare services. Most voluntary agencies are affiliated to the Hong Kong Council of Social Service and many are assisted by annual subventions from the government, which amounted to $100 million for the 1978-9 financial year. With a dwindling flow of aid from overseas, the voluntary sector has become increasingly dependent on this assistance and the help of charitable funds and donations within Hong Kong.

　　　　　　The Community Chest of Hong Kong, to which some 73 welfare bodies belong, represents an endeavour by these organisations to co-ordinate their local fund-raising

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　　　　　activities. The Community Chest raised $13.8 million for welfare in 1977-8, compared with $11.8 million in 1976-7.

Social Security

　　　　　Social Security is provided through the public assistance scheme, the special needs allowance scheme, the criminal and law enforcement injuries compensation scheme and emergency relief, all of which are administered by the Social Security Division of the department.

Public assistance, which is means-tested and non-contributory, is designed to help needy individuals and families by bringing their income up to a prescribed level. To be eligible for public assistance, applicants who are under 15 or more than 59 years (this was revised from 54 to 59 in April, 1978) must have lived in Hong Kong for at least one year. Able-bodied unemployed applicants, aged between 15 and 59, must have two years' residence in Hong Kong and also must be registered with the Local Employment Service of the Labour Department for employment. Young persons aged between 15 and 17 must apply within families as dependants.

　　　　　　The scales of assistance are regularly reviewed and were adjusted on February 1, 1978. The existing monthly basic scale rate of assistance is $200 for a single person; $145 for each of the first three eligible members of a family; $120 for each of the succeeding three; and $90 for each eligible member thereafter. Old age supplement and long-term supplement benefits were introduced on April 1, 1978. An old age supplement of $100 a month is given to public assistance recipients aged 60 and above, provided that they are not already receiving a special needs allowance. An annual long-term supplement of $500 for a family and $250 for a single person is given to public assistance recipients who have relied on the scheme for more than 12 months. In addition, supplementary assistance for rent, school expenses, special diets and other essential expenses also are covered by the scheme.

In order to promote self-help, recipients who are not expected to seek work as a condition of receiving public assistance may now retain their marginal earnings up to $150 a month. Any earnings exceeding $250 a month are taken into account in assess- ing entitlement for public assistance.

　　　　　　At the end of 1978, the number of active public assistance cases was 47,150 com- pared with 48,176 in 1977. Expenditure on public assistance for the 1977-8 financial year totalled $143.7 million.

　　　　　　The Special Needs Allowance Scheme (previously called the Welfare Allowance Scheme) provides a cash allowance on top of the public assistance payment to the severely disabled or elderly infirm. From February 1, 1978, the allowances were revised to $200 a month for the disability allowance and $100 a month for the old age allowance. In April, these allowances were further extended to those in residential institutional accommodation. Special needs allowances are non-means tested and non-contributory. However they are subject to regular reviews to determine that the beneficiaries continue to be eligible. The qualifying age for the old age allowance was lowered from 75 to 70 on October 1, 1978. The number of people drawing disability and old age allowances at the end of the year was 149,189, compared with 78,735 at the end of 1977. Expenditure on payments in the 1977-8 financial year totalled $99.8 million, an increase of $10.2 million over the previous year.

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Due to the growing complexity of the public assistance and special needs allowance schemes, a special investigation team, which was established in July, 1977, was further expanded in June, 1978. The team investigates suspected fraudulent cases as well as overpayment cases, where there are difficulties in obtaining repayment. During the year the team completed investigation of 148 cases, some of which were referred to the Attorney General for possible prosecution.

In response to recommendations made in the Green Paper on the Development of Social Security published in November, 1977, an independent appeal board was set up in May, 1978, to consider individual appeals against the decision of the Director of Social Welfare regarding the payment of social security benefits. The board consists of an unofficial chairman and two unofficial members, appointed by the Governor. The board's hearings are informal and appellants can use whatever language or dialect is convenient for them. During the year a total of 30 cases, of which 24 were public assistance cases and six were special needs allowance cases, were heard by the board. The Criminal and Law Enforcement Injuries Compensation Scheme provides ex- gratia compensation to those injured in crimes of violence and by weapons used by law enforcement officers in the execution of their duties. Decisions on claims are made by the Criminal Injuries Compensation Board and the Law Enforcement Injuries Compensation Board, whose members are appointed by the Governor. In the 1977-8 financial year, payments totalling $1.4 million were made compared with $1.5 million in 1976-7.

Planning has commenced on implementing a scheme for compensating the victims of traffic accidents, on a no-fault basis. The scheme, which will come into operation in April, 1979, will be administered by the Social Welfare Department.

The Elderly

The Elderly Services Division was set up in August, 1978, to expedite the development of services and facilities for the elderly and to co-ordinate and review existing welfare services for them. Current facilities for the elderly include 34 residential homes with more than 3,900 places, six centres providing home-help services, three district multi- service centres which provide comprehensive community services, and some 60 social centres and clubs with a total membership of about 6,000.

The number of people aged 60 years and above has grown from 152,000 in 1961 to 424,000 in 1978, that is from 4.8 per cent to 9.24 per cent of the total population. Government policy is that more must be done for the elderly to make it easier for them to continue life within their family or community. In addition to extending the old age allowance, a range of services will be established in the next 10 years. These include the provision of special places in public housing, the expansion of community nursing services and day hospitals, and more geriatric beds. For people who are unable to look after themselves or to be cared for by their families, 1,000 additional care and attention places and 1,000 additional places in homes for the elderly are expected to be provided by 1980-1, when provision for subsequent years will be reviewed.

Most elderly people are expected to remain with their families, but there will be a range of supporting services to help them do so. The focal point of these services will be the 11 district multi-purpose centres and 245 social centres which will provide a

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base for organising home help, laundry services, counselling, and social and recrea- tional activities.

Group and Community Work

The Social Welfare Department's Group and Community Work Division operates through a network of seven community centres, eight estate community centres and 10 community halls. Neighbourhood welfare services provided in these buildings in- clude libraries, day nurseries, vocational training, interest groups, social clubs for different age groups and family counselling. There are 14 community and youth officers in the field who are responsible for promoting, developing and co-ordinating community and youth services in their districts. They also assist in the implementation of the Summer Youth Programme, which is organised by the Central Co-ordinating Committee for Youth Recreation. Also operating within the division are three rural mobile service teams which provide cultural, group and community work services to remote villages in the New Territories.

During 1978, 10 Family Life Education Officers organised various educational programmes for families to help them more fully understand their roles and re- sponsibilities. The officers also provide a preventive service which aims at reducing the number of broken families as well as problem youths.

A substantial contribution towards providing recreational and social services for young people is made by voluntary agencies, which run a number of children's and youth centres. They play an important part in organising play-leadership programmes, arranging detached work for young people and providing counselling services.

Family Welfare Services

Family welfare services are designed to assist individuals and family members to handle and solve their personal and family problems. These services are provided by the Social Welfare Department through a network of 17 casework units, and assistance is available to any family or individual requesting help. Some voluntary agencies also provide similar services.

The work of the Social Welfare Department's Family Services Division includes counselling on family problems and inter-personal relationships, cases of abuse and ill-treatment of children, and difficulties arising from mental and physical disability, old age, unemployment, desertion, illness and death of family members. Other services include the care and protection of children and young women exposed to moral or physical danger and making referrals for schooling, employment, special training, housing, financial assistance, home-help, legal advice, medical attention and place- ments in appropriate institutions for selected vulnerable groups, such as unmarried mothers and their children, the aged and the disabled. The number of families and individuals assisted in 1978 totalled 14,852.

　　　　　　The department also exercises statutory functions in this field under a number of ordinances, such as the Protection of Women and Juveniles Ordinance, the Guardian- ship of Minors Ordinance No. 12 of 1977, the Marriage Ordinance, and the Offences Against the Person Ordinance. In accordance with the Adoption Ordinance, legal adoptions both locally and overseas are arranged in co-operation with the Interna- tional Social Service and Caritas - Hong Kong. With the amendment of the Protection

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of Women and Juveniles Ordinance on May 12, 1978, the upper age limit of placing a young person under a supervision order was raised from 14 to 18 years, and the supervision of a female must be undertaken by a female officer.

　　　　　　The School Social Work Project, one of the projects included in the Green Paper on Development of Personal Social Work Among Young People published in Novem- ber, 1977, is a joint venture between the Social Welfare Department and the Education Department. School social work services were provided at 85 schools by 17 social workers working full-time in the 1977-8 academic year. During the 1978-9 academic year, the school social workers of the Family Services Division are limiting their activities to secondary schools. Assistance has been given to the Education Depart- ment to develop its own team of student guidance officers to handle the problems of pupils in the primary school sector, with the Social Welfare Department's social workers providing advice or taking over cases from the student guidance officers when complicated problems are encountered.

There is also a children's reception centre in which children up to eight years, normal or handicapped, are provided with temporary shelter and care. These children are generally admitted to the centre through police referral or referrals from various casework units. They are children who are found wandering, are abandoned, or are otherwise in need of care and protection.

　　　　　　The Child Care Centres Advisory Inspectorate is responsible for enforcing the Child Care Centres Ordinance 1975 and Regulations 1976 which provide for the registra- tion, control and inspection of child care centres to ensure that children receive a satisfactory standard of care. The ordinance became effective on June 1, 1976, and the regulations are expected to be fully implemented by June, 1979. The legislation is currently under review in the light of operating experience.

Two self-supporting but non-profit-making child care centres were established by two voluntary agencies during the year. Another two day care centres for children aged between two and six years are being provided at temporary housing areas at Ha Kwai Chung and Kwun Tong. The former is already operational and the latter is scheduled for completion in early 1979.

　　　　　　With the assistance of subventions, voluntary agencies supplement government services and are mainly responsible for operating child care centres; residential institutions for children and young people in need of care and protection; providing home-help services; and running experimental projects. Close liaison is maintained by government officers who serve on the agencies' committees and provide regular consultative services upon request. Furthermore, to ensure that a reasonably good standard of service is maintained in voluntary homes and institutions, the Institutions Liaison Unit maintains regular contact with these agencies and gives advice and guidance where necessary.

Rehabilitation

Rehabilitation services are designed to help the disabled to become independent and contributing members of the community. Such services are provided at the Social Welfare Department's homes and institutions and are augmented by the work of many voluntary agencies. In 1978, an average of 1,600 disabled persons a day received full-day training or worked in sheltered workshops. A further 1,500 benefited from braille and

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mobility training, audiometric testing, vocational guidance and employment place- ment assistance. Residential care facilities are available in some centres for the more severely handicapped. With more educational facilities provided for deaf children, the demand for deaf children's clubs declined; hence two deaf clubs, in addition to three deaf clubs in 1977, were converted to training the moderate-grade mentally retarded. Evening recreational activities were provided for 200 young deaf adults at five children's training centres. Sheltered workshop places were increased by 140 with the opening of a new workshop in Pak Tin Estate.

　　　　　　During 1978, the department's rehabilitation staff was involved in reviewing and advising on the implementation and development of rehabilitation services in accord- ance with the objectives of the White Paper on Rehabilitation.

　　　　　　In the voluntary sector, services for the medium-grade mentally retarded as well as severe-grade mentally retarded adults were further promoted. The opening of the Cliff Road Caritas Centre in Kowloon provided 40 more places for vocational training and 60 more places for sheltered work for the medium-grade mentally retarded. The Hong Kong Society of Homes for the Handicapped's Chai Wan Centre provides residential care for 32 severe-grade mentally retarded young adults in addition to day care for 18 adults. The Kowloon Union Church has established a day centre for 50 borderline medium-severe grade mentally retarded young adults. Training places for the physi- cally disabled also increased with the expansion of the Spastics Association of Hong Kong's Sau Mau Ping Training Centre from a capacity of 35 to 50 and the Hong Kong Christian Service's Princess Alexandra children's centre from a capacity of 36 to 44.

　　　　　　Sports and recreational services for the disabled were substantially increased during the year with the establishment of both the Pok Fu Lam Centre and the East Kowloon Centre of the Hong Kong Physically Handicapped and Able-Bodied Association, the Lam Tin Activities Centre of the Hong Kong Federation of Handicapped Youth and the Oi Man Estate Recreation Centre of the Hong Kong Society for the Deaf.

Probation and Corrections

Probation and corrections work is concerned with treating and rehabilitating offenders and the Probation and Corrections Division provides a probation service, residential training and after-care services.

　　　　　　The probation service, which is governed by the Probation of Offenders Ordinance and Regulations, has 13 probation offices serving the Magistrates' Courts and the District and Supreme Courts. Probation officers undertake statutory supervision of probationers, assist them in job or school placements, encourage their participation in social and recreational activities, and provide them with family and group counsel- ling. Another aspect of probation officers' work is to conduct enquiries into the back- ground of offenders for the purpose of determining and reviewing sentences or in connection with petitions.

To promote greater community involvement in rehabilitating probationers, a volunteer scheme was launched in October, 1976. Under the scheme, selected volunteers from all walks of life provide probationers with moral support and practical assistance, such as private tuition and guidance in the proper use of leisure.

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　　　　　　Residential training is provided in five correctional institutions established under various ordinances. Academic, prevocational, social and recreational training is de- signed to facilitate the character reform and social readjustment of juvenile offenders and young people in care.

The Castle Peak Boys' Home and the O Pui Shan Boys' Home are reformatory schools catering for juvenile offenders aged between 14 and 16 and seven and 17 respectively. In these schools, relatively long-term treatment programmes are designed for the residents, and after-care services are provided upon discharge.

　　　　　　The Ma Tau Wai Girls' Home and the Begonia Road Boys' Home are multi- functional residential institutions for short-term training. They serve as places of detention for those held in remand before appearing in court, as probation homes for probationers requiring residential treatment, and as places of refuge for juveniles considered by the court to be in need of care and protection.

Due to the inadequate facilities of the Ma Tau Wai Girls' Home, a new home replacing it has been built at 51 Sheung Shing Street, Kowloon. The home, which became fully operational in September, 1978, is a purpose-built complex for 144 girls. The Kwun Tong Hostel caters for male probationers, aged between 16 and 21 years, placed under residential order by the court. Residents are given career guidance and training on social responsibilities, budgeting and saving, and most have outside em- ployment during the day.

Apart from the services provided by the division, voluntary agencies such as the Hong Kong Juvenile Care Centre, the Society of Boys' Centres and the Rennie's Mill Student Aid Project also provide care and training for children who come from broken homes or have behavioural and other problems.

Emergency Relief

For those who are affected by disasters, emergency relief is given in the form of hot meals, milk powder for infants, and other basic essentials such as blankets, sleeping mats, eating utensils and toilet accessories. In addition, injury, burial and death grants from the Emergency Relief Fund are paid to victims or their families.

During the year assistance was given to 5,885 registered victims involved in 116 disasters. Payments made from the Emergency Relief Fund amounted to $2.2 million. Relief was also given to 6,387 Vietnamese refugees immediately after their arrival in Hong Kong.

Training of Social Workers

The Training Section of the Social Welfare Department provides in-service training, refresher courses and staff development programmes to social welfare workers employed by the government and voluntary agencies. The School of Social Work at the Hong Kong Polytechnic provides a two-year full-time training course for front line social workers, a three-year part-time course in social work for Form 5 graduates, a one-year course for child care workers, and other part-time day-release courses for social workers. The Director of Social Welfare is the Chairman of the Advisory Committee on the School of Social Work.

The department's Training Section operates a demonstration nursery which serves the dual purpose of providing day care for 100 children aged two to five years as well

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as being a training ground for nursery and creche workers. A total of 50 courses, seminars and workshops were organised during the year.

The section contributes to the general training of social workers by providing field work placement and supervision to social work students from the territory's two universities, the Hong Kong Polytechnic, the Hong Kong Baptist College and Shue Yan College. Sixty-seven students were supervised and placed in the Social Welfare Department in 1978.

To assist young people who want to obtain social work training, a number of bursaries and scholarships are available from the Social Work Training Fund, the government, and the Hongkong and Shanghai Banking Corporation and other private donors.

Research and Evaluation

A number of studies were conducted during the year by the Social Welfare Depart- ment's Research and Evaluation Unit on the possible demand for various services. Data was collected and analysed to show trends in social security schemes, child care services and to gauge the use of community centres. A joint venture, by the depart- ment and the Hong Kong Council of Social Service, was a study of the social service needs of the elderly.

Public Order

FOR Hong Kong's law enforcement agencies, 1978 was a year of consolidation, steady progress and accomplishment. The Royal Hong Kong Police Force, a well-equipped and efficient police force, is mainly responsible for maintaining public order through- out the territory. However, significant contributions towards the safety and welfare of the community are also made by the Customs and Excise Service, the Independent Commission Against Corruption (ICAC), the Prisons Department and the Fire Services Department.

Police Force

The Royal Hong Kong Police Force will best remember 1978 as a year of expansion and reorganisation reaching to the topmost echelons and touching on most formations within the force.

A further restructuring of Police Headquarters allowed for even greater emphasis to be placed on personnel and management services, training, staff relations, discipline and planning, and research. To implement this, the creation of 11 new posts was approved by government at directorate and gazetted officer level.

Early in the year a Home Office team of three police experts, headed by Mr J. W. D. Crane, Inspector of Constabulary for Wales and South East England, was assigned to advise the Commissioner of Police on the organisation and operation of the force with particular regard to discipline, staff management and morale, chain of command and channels of communication at all levels, sources and standard of recruitment, and relationship with the Independent Commission Against Corruption.

　　　　　　As a result of this consultation, it was determined that there had been some imbalance in organisation, man-management and control due, in the main, to the force's rapid expansion and modernisation in recent years. Although many of the recommendations were already under review, proposals put forward formed the basis of subsequent changes in areas such as management, development, housing, welfare, staff relations, promotion systems and internal communications.

The year was also notable for the number of new police stations opened; of the five new premises which came into operation, four were in the New Territories where the need for more adequate policing has been brought about by the development of rural areas. Also in the new buildings programme, the first of the current steps in solving the housing problems of junior officers was taken with the opening of 400 units in Kwai Chung late in the year. Other junior officers' married quarters are under con- struction in Sha Tin and Ho Man Tin.

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The policy of bringing the police closer to the people continued with the opening of a further 19 reporting centres in urban areas during the year; 11 of which operate as Neighbourhood Policing Units (NPUs). There are now 106 reporting centres (41 of them operating as NPUs) and 48 police stations.

Public requests for assistance throughout the year totalled 112,257 - an average of 307 a day. This was an increase of 12 per cent over 1977.

Recruiting remained a priority within the force and the campaign launched in 1977 was extended with a target of enrolling 2,210 recruits at inspectorate and constable level by the end of the 1978-9 financial year. A valuable asset in achieving this was the completion of a purpose-built air-conditioned mobile recruitment and display centre, which has the capability of carrying out on-the-spot initial recruitment procedures.

An innovation in Marine District during 1978 was the introduction of woman con- stables, 10 of whom were appointed as wireless/telegraphy operators after successfully completing a six-months training course. A further 10 woman constables were taken on strength and are undertaking the same training. The district has also appointed six woman constables on a trial basis to crew harbour launches, performing the same duties as their male counterparts.

Administration

By December 31, 1978, the police officer establishment of the force had risen to 19,064, an increase of 485 over the corresponding figure in 1977. In addition the force had an establishment of 3,846 civilians, representing 20.2 per cent of the overall establishment.

To keep pace with the increased establishment, extensive recruitment was under- taken and 8,282 applications for constable appointment and 2,114 for local inspec- torate appointment were received. Some 216 inspectors, of whom 91 were from overseas, were taken on strength, compared with 341 in 1977, 211 in 1976 and 153 in 1975. The number of constables taken on strength was 1,733 compared with 1,795 in 1977, 1,783 in 1976 and 1,454 in 1975.

The industrial action undertaken by a large number of police interpreters in September, 1977, came to a head with a one-day strike in February, 1978. Normal work resumed after it was decided that a special team would examine their pay and conditions of work. However, by the end of the year they had recommenced industrial action because of dissatisfaction with the results of the review.

Crime

During the year 57,076 crimes were reported to the police - 327 more than in the pre- vious year. Crimes on the decrease were robberies, 5,660 (6,525 in 1977); blackmail, 2,678 (2,840); burglaries, 5,412 (5,565); frauds 1,942 (2,052); and indecent assault on females, 710 (876).

On the increase were: miscellaneous thefts not associated with blackmail, 12,989 (11,234); serious assaults, 5,206 (5,039); and criminal damage to property, 1,852 (1,558).

The overall crime detection rate (excluding blackmail and associated thefts) was 56.3 per cent, compared with 57 per cent the previous year.

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　　　　　A total of 21,533 persons were arrested, compared with 21,839 in 1977. The number of adult prosecutions decreased by 1.1 per cent to 19,936, and juvenile prosecutions (under 16 years) by 5.2 per cent to 1,597.

Triad-type Crime

The anti-triad structure was adjusted during the year to 455 officers. Of these, 90 are attached to the Triad Society Bureau while the remainder operate from district head- quarters and police stations and augment regular Criminal Investigation Department and Uniform Branch officers in the fight against triads and crime.

The Triad Society Bureau concentrates on high-level triad personalities and taking offensive action against organised gangs operating territory-wide. The district and divisional units concentrate on triad and organised criminal activity within their boundaries. During the year, 1,763 people were arrested for triad-related offences.

Owing to the effects of the new gambling laws introduced in February, 1977, and vigorous enforcement efforts, the scale of illegal gambling, particularly casino gam- bling and off-course bookmaking, was considerably reduced in comparison with previous years. Anti-gambling operations resulted in the arrest of 13,861 people and the seizure of $1,517,000.

　　　　　Sustained police action against vice establishments forced many out of business. Those that remained adopted a low profile and operated under the guise of legitimate business. There were 3,078 people charged with prostitution and related offences.

Special Crimes Bureau

The Special Crimes Bureau is responsible for crimes categorised as 'special' by nature of the high value of the property stolen (in excess of $250,000) or the brutality or ingenuity of the criminals. This includes unusual or spectacular crimes distinguished from the ordinary by special factors such as the use of firearms and/or explosives.

　　　　　During 1978, the bureau undertook 299 investigations resulting in 44 persons being charged with a total of 45 various offences. The unit seized five firearms, nine modified firearms and recovered cash totalling $2,153,915.

　　　　　One case of particular significance was a cash-in-transit holdup in which three men hijacked a security van outside the Chartered Bank, Queen's Road, Central District, escaping with $2 million. As a result of relentless efforts, four people were arrested and more than 50 per cent of the money was recovered. One .38 revolver and six rounds of ammunition were also recovered.

　　　　　The bureau has an index of information on crimes, personalities and modus operandi, and keeps a particular watch on the activities of the Mainland China gang known as 'Dai Huen Chais'. These criminals are ruthless and prone to the use of firearms. Special operations have been mounted, all code-named, resulting from information gathered by Special Crime Bureau personnel with the aim of identifying personalities who may be planning to commit, or have committed, serious crimes.

Homicide Bureau

Established in 1974 to investigate homicide cases requiring lengthy and complex en- quiries, the Homicide Bureau has built up a high degree of expertise and profession- alism and has scored many noticeable successes. The bureau is now at full strength

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with 84 officers which will, in future, enable it to undertake approximately 50 per cent of all homicide investigations, thus relieving the pressure on districts.

The number of homicides reported in 1978 was 63, compared with 57 in the previous year. Of this total, 41 were solved and 15 were investigated by the Homicide Bureau. Among the more outstanding cases solved by the bureau during the year were the murder of a European woman who was killed in her home during a robbery; the shooting of an off-duty police sergeant during the robbery of an illegal gambling casino; and a gruesome case in which the dismembered body of a man was found packed into two suitcases abandoned in a Kowloon flat.

Commercial Crime Bureau

The year has been one of consolidation for the Commercial Crime Bureau with efforts being made to fully utilise the increase in establishment approved in 1977.

　　　　　　The Company Fraud Sections investigated several large-scale company frauds which followed the 1972-3 stock market boom. These have been or will soon be completed and prosecutions are expected to follow in some cases.

In the General Fraud Sections, frauds concerning letters of credit and dishonoured cheques continued to form the bulk of investigations undertaken. Unfortunately, in this field, a great deal of the bureau's time and effort is expended without result as the guilty parties have absconded by the time the case is reported to the police.

　　　　　　During the year, the bureau's Counterfeit and Forgery Section had considerable success with action being taken against both possessors and producers of counterfeit currency, including the neutralisation of a workshop producing $5 counterfeit coins.

Narcotics Bureau

　　　　　Continued vigorous enforcement against drug syndicates by the Narcotics Bureau and the force generally resulted in a dramatic rise in the overall price of narcotics. At the same time, the average purity of heroin available for sale to the addict dropped to about 21 per cent, compared with 30 per cent in 1976. There is now no major or large-scale drug syndicate known to be operating in Hong Kong. There are, however, a number of smaller, fragmented syndicates in operation. These syndicates have adopted much stricter security measures and consequently detection is more difficult than ever before.

　　　　　　The bureau's major accomplishment during the year was the neutralisation of the last remaining large-scale narcotics syndicate. Up to 1973, this syndicate was alleged to be Hong Kong's largest importer of bulk opium and morphine. Police pressure then disrupted the syndicate's established operations, although individual members continued to traffic in smaller quantities. In this latest operation, 10 people were arrested and charged with offences relating mainly to the period of heavy importation between 1967 and 1973.

　　　　　　During the year, a laboratory used for the manufacture of amphetamines and methyl-amphetamines was discovered and made ineffective. This is the first of its kind discovered in Hong Kong.

　　　　　　The latest trend is to import heroin or esters of morphine, as opposed to morphine base or salts of morphine. This reduces considerably the difficulties of, and time taken

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in, the manufacture of illegal drugs in Hong Kong and also lessens the risk of detection.

　　　　　　The main method of entry of drugs into the territory is Hong Kong International Airport, Kai Tak, but illegal importation by ship is also carried out.

Criminal Records Bureau

The Criminal Records Bureau is the sole repository in Hong Kong of criminal records and a large proportion of its information has been placed on microfilm. During the year, a feasibility study on computerisation was completed. It recommended that the nominal index of some 700,000 names be computerised to modernise and streamline the support service given to officers in the field, and to create a cornerstone on which a total criminal information service could be based.

Criminal Intelligence Bureau

The Criminal Intelligence Bureau is responsible for the collection, collation, assess- ment and dissemination of criminal information and intelligence throughout the Royal Hong Kong Police Force. Formed in May, 1977, the bureau has gained valuable experience in its first 18 months of operation. Considerable emphasis has been placed on the recruitment of suitable personnel and on the provision of necessary support equipment.

Ballistics Office

　　　　　One of the smaller formations in the force, the Ballistics Office comprises two qualified civilian ballistics officers, two trainees and one sergeant. It is a very busy section and carries a high and varied case load.

Weapons examined during the year ranged from very crude home-made revolvers and 'cigarette lighter' guns from Thailand, to modern Russian and American military hand guns from Vietnam. However, the work of the section is not limited to the exami- nation of firearms; it ranges through all aspects of forensic ballistics to the testing and evaluation of various bullet-proof materials.

During 1978, a considerable amount of sophisticated equipment was purchased by the Ballistics Office including a chronograph, which enables the speed and power of a bullet to be measured, and a comprehensive mini-computer which is used for com- plicated ballistic calculations.

Identification Bureau

The Identification Bureau is a highly specialised unit dealing with fingerprint techno- logy and forensic photography. During the year, staff increases were implemented to cope with an increasing demand for its services and to provide a more efficient field service.

The Scenes of Crime Section attended 9,757 crime scenes to search for fingerprint traces and found 16,158 fingerprint impressions. This resulted in the identification of 237 people in connection with 302 cases. The section has field units manned by fingerprint/photographic technicians at Criminal Investigation Department Head- quarters, Kowloon District Headquarters, Kwai Chung Police Station, Yuen Long Police Station and Frontier Divisional Headquarters.

FIRE SERVICES

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Ready for any emergency

The Fire Services Department's policy of development and expansion is linked with the progress of Hong Kong. Such factors as the creation of new towns in the New Territories, the development of multi-storey buildings and traffic patterns play a vital part in determining the location of fire and ambulance stations. The continuing objec- tive of the department is to base men with equipment where they can most effectively respond to emergencies. Hong Kong has more than 600 ambulance personnel and 3,000 firemen. Ready to fight fires and aid the sick and injured, no matter how difficult the conditions, it is their skill and deter- mination which is the Fire Services Depart- ment's greatest asset. A high standard of physical fitness is the prerequisite for firemen who, on recruitment, complete a 26 weeks' training course at Pat Heung in the New Territories. On graduation, they are qualified in all aspects of fire- fighting including rescue methods, aircraft crash and fire procedures, the use of breathing apparatus and communications. Hong Kong has one of the most modern, well-equipped fire departments in the world. Because of the territory's high-rise development, it is essential to have sophisticated equipment which can cope with the features of these buildings. As well as fire-fighting, the Fire Services Department spends much time in preven- tive work, educating people about fire risks, investigating possible fire hazards and recommending safety measures for buildings. The Ambulance Command oper- ates more than 120 ambulances.

Previous page: A 50-metre turntable ladder can hoist firemen close to the heart of a fire. Left: The Alexander Grantham is the largest fireboat in an efficient marine fire-fighting force; an ambulanceman gives oxygen to an accident victim; Fire Prevention Bureau officers show how an obstructed hose can hamper operations.

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　　　　　Fire Services Department personnel based at Hong Kong International Airport, Kai Tak, man foam tenders ready for possible aircraft crashes and fires.

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Above: Trainees aboard a snorkel - elevated hydraulic platform-practise fire-fighting procedures. Right: Pat Heung training school recruits are drilled to peak physical condition.

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Below: Recruits at the Fire Services'

training school at Pat Heung rehearse a ladder rescue. Left: All firemen are taught swimming and life-saving.

　　　　　　　Above: Stretcher rescues are included in the training programme. Right: A jet of water is directed by trainee firemen aboard a snorkel

Below: A recruit swings to the ground from a drill tower in a twin-line rescue. Left: Breathing apparatus plays an essential role in some fire-fighting operations.

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　　　　　Confronting a Number Four alarm fire tests any fireman's training, skill and courage. Coping with intense heat, a fireman directs water at burning buildings in Ma Chai Hang village, Wong Tai Sin.

圖書館

　　　　　More than 100 firemen were quickly on the scene at the Ma Chai Hang village fire. The fire destroyed the homes of more than 1,200 people.

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Firemen battle a large blaze sweeping through an industrial building in Smithfield, Western District.

·The Fire Services Department has advanced equipment designed for fire-fighting in high-rise buildings.

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　　　　　　The Main Fingerprint Collection Section is responsible for maintaining the finger- print records of convicted people and is used to determine previous criminal convic- tions. The collection contains the fingerprints of 378,545 people; during the year, 44,125 arrested persons' fingerprints were searched and 22,551 were found to have previous convictions. This section also undertakes searches for security and vetting purposes. A charge of $90 per search is levied for people requiring 'police clearance' in support of visa applications to visit or reside in other countries. This has resulted in revenue amounting to $578,430 since the charge was introduced on June 1, 1978.

　　　　　　The Photographic Section, staffed by professional photographers, deals with all aspects of forensic photography. During the year the section produced 339,882 photographs. The newly-established colour laboratory produced a total of 17,304 colour photographs and transparencies.

Interpol Bureau

Hong Kong is a member of the International Criminal Police Organisation (Interpol) and has a bureau operating within the Criminal Investigation Department Head- quarters. Because of its geographical location, a healthy liaison with other police forces is maintained and the bureau is probably one of the most active in Southeast Asia. Its work means Royal Hong Kong Police Force officers frequently travel abroad on duty and also assist officers from other countries visiting Hong Kong in the course of their enquiries. The force has two officers seconded to the Interpol General Secretariat in Paris and another officer attached to the British Embassy in Bangkok.

Police Districts

　　　　　For policing purposes Hong Kong is divided into four territorial districts: Hong Kong Island, Kowloon, New Territories and Marine. In turn each district is divided into divisions: four in Hong Kong, six in Kowloon, five in the New Territories and three in Marine. Each district has a headquarters and a criminal investigation department. The three land districts also have traffic offices.

　　　　　　Hong Kong Island District covers the territory's major centres for finance, com- merce and government. The most densely-populated areas on the island are on the north coast, but in recent years there has been considerable residential property development on the south side of the island, at Repulse Bay and its neighbouring areas, and in Aberdeen. The population of Hong Kong Island totals 1.1 million, giving a population density of 14,100 per square kilometre. The total police establish- ment in the district is 3,045 officers and 474 civilians.

　　　　　　Kowloon District is the international gateway of Hong Kong. Its precincts cover Hong Kong International Airport, Kai Tak; the Ocean Terminal and the Kowloon- Canton Railway terminus at Hung Hom. The district features a variety of lifestyle extremes, ranging from luxurious residential areas and modern tourist and commercial centres to the ancient Walled City and the picturesque rural region of Sai Kung. This diversity, together with more than half the territory's population, results in a range of unique problems and difficulties. It is, therefore, not surprising that crime in the district accounted for 61.9 per cent of Hong Kong's total crime in 1978. Establishment in Kowloon is 5,561 police officers and 927 civilians.

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The New Territories District Headquarters, in the past located at Tsuen Wan, moved to new headquarters at Sha Tin late in 1978. As a result of the government's development plans for the New Territories, the population, which now stands at around one million, is expected to reach more than two million by 1983.

The increase in population in the past few years has inevitably brought with it an increase in crime which is centred in the fast-growing areas of Yuen Long, Tsuen Wan, and Kwai Chung. Illegal immigration is also a continuing problem requiring constant patrolling and vigilance on the border, outlying islands in Mirs Bay, and along the northern coastline. The district has an establishment of 3,245 all ranks and 431 civilian staff.

With its fleet of 47 launches, the Marine District covers 1,872 square kilometres of Hong Kong waters as well as policing outlying islands and a large number of isolated communities. Following a successful recruitment campaign during the year, the strength of the district was increased by 76. The district has an establishment of 1,399 officers and 142 civilians.

　　　　　　The primary role of the Marine District is to combat illegal immigration and pre- vent the importation of narcotics. In addition, the district assists the Marine Depart- ment in enforcing merchant shipping and port and maritime regulations. The district also plays an important part in community relations by patrolling remote areas and ensuring that village problems are brought to the attention of the government.

　　　　　　Apart from normal constabulary duties, in 1978 marine police responded to 2,341 requests for police assistance, mainly from villagers, picnickers and pleasure craft operators; the launches also carried out 507 casualty evacuations from outlying islands and sea-going vessels. A general increase in visitors to outlying islands, particularly Lantau, made heavy demands on the somewhat limited police resources.

　　　　　　　The crime level in Marine District is comparatively lower than the remainder of Hong Kong owing to the rural nature of the islands and the law-abiding tradition of the fishing community. The Criminal Investigation Department Marine is responsible for the initial investigation and processing of illegal immigrants and, in particular, persons engaged in aiding and abetting illegal entry. In 1978, 8,192 illegal immigrants were apprehended and repatriated. This figure shows a significant increase over the previous year and is the highest since 1974. Vietnamese refugees continued to reach Hong Kong by sea in increasing numbers and during the year several thousand were intercepted in the territory's waters. Many were granted permission to remain temporarily in Hong Kong pending resettlement overseas.

Communications and Transport

The Communications and Transport Branch plans, installs and maintains sophisticated telecommunication systems. These consist of radio networks, computer command and control systems incorporating teleprinter networks, telephone networks, radar installations and a variety of specialised electronic equipment. The branch also manages a fleet of 1,319 vehicles of 19 different types and a driving school at which all police drivers are trained and tested. To carry out this wide range of activities, the branch has an establishment of 1,271 police officers and 274 civilian staff who work in the telecommunications field.

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　　　　　　The beat radio scheme, which was introduced in 1976, has proved very successful. Through the system, patrolling constables are able to maintain contact with district and divisional controllers and with other police officers on duty in the same area. The wide coverage offered by beat radios has greatly improved the efficiency of the force and enables an immediate response to be made to any reported crime, incident or traffic problem. It is planned to extend the application of beat radios in the three land districts, maintaining control from district centres in which computer command and control systems are in operation.

　　　　　　A terminal which provides rapid contact with International Criminal Police Organi- sation (Interpol) stations throughout the world is in operation.

　　　　　　Work continued on the planning of equipment and facilities for several major proj- ects including a police radio scheme for the Mass Transit Railway system and the installation of an air-to-ground radio network. The latter will enable police launches and commanders of field operations to communicate directly with military or Royal Hong Kong Auxiliary Air Force helicopters. Training facilities at the Police Cadet School have been improved by the installation of a language laboratory catering for 16 students at a time.

Community Relations

The force continued to place emphasis on the need to promote good relations between the police and the public and 1978 saw several innovations in the community relations field.

　　　　　　Principal among these was the reorganisation of the Police Public Relations Bureau under the new title of the Police Public Relations Wing. The new wing, which doubled its establishment, reverted to having a chief superintendent of police as its head and was divided into two bureaus; one with the object of providing better communications with the news media which serves Hong Kong's 4.6 million population, and the other to co-ordinate all community relations efforts.

　　　　　　A new philosophy and approach to community involvement in fighting crime, crime prevention, police recruiting and road safety were adopted with the highly successful Beat Crime 1978 campaign launched in April. By combining all into one co-ordinated drive, greater public co-operation and support have been achieved with District Fight Crime Committees, Mutual Aid Committees, community organisations and govern- ment departments working together on a series of localised campaigns centred on the various police divisions.

　　　　　　The police-orientated youth organisation, Junior Police Call (JPC), entered its fifth year of existence and currently has a membership of 227,100. Centred on weekly television and radio programmes, 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 JPC Leadership Scheme, introduced in 1977, was further developed and now has more than 2,000 young people over the age of 17 who are assisting Police Community Relations Officers in running divisional clubs. Another innovation during the year was the launching of a Rotarian-sponsored JPC newspaper.

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Corresponding with JPC activities, weekly Police Report programmes - 15 minutes in Chinese and five minutes in English - are screened on all television channels. These feature crimes the public may 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 people to help combat crime. Altogether 577 people aged from five to 80 have received certificates and financial awards amount- ing to more than $600,000 since the scheme began in 1973.

Overseas ambassadors for the force during 1978 were musicians from the Royal Hong Kong Police Force Band, supported by 20 male and female police officers forming ribbon and lion dance teams. The 120-strong party spent three months touring the United Kingdom where they received tremendous acclaim following appearances at the Royal Tournament in London, the Edinburgh Military Tattoo, the British Army Display at Aldershot, the Colchester Searchlight Tattoo, the Royal Show at Stone- leigh, the Highland Games at Crieff in Scotland, and the Carlisle Great Fair. The Hong Kong Commissioner in London complimented the tour party saying that they had given the name of the Royal Hong Kong Police Force a new meaning for the British people.

On the other side of the globe, the four winners of the third Young People's Help the Police competition visited the United States on their prize-winning two-week holiday.

Closer understanding between the police and residents, business people and com- munity organisations throughout the territory was fostered by the continuing activities of the force's 16 Police Community Relations Officers. This scheme is to be extended when Aberdeen and Tuen Mun are upgraded to divisional status in 1979. As part of the reorganisation of the Police Public Relations Wing, a central Police Community Relations Office has been set up to co-ordinate and implement policies.

Another community relations innovation within the Police Public Relations Wing was the establishment of a reception office to receive and co-ordinate the numerous visits paid to the force by overseas and local dignitaries and organisations.

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 further expanded during the year and now has a staff of 59 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 Criminal Investigation Department).

The UMELCO Police Complaints Group, set up in 1977, continued to review the handling of such complaints. 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.

Traffic

The continuing improvement in the economic climate resulted in a significant increase in the number of vehicles registered, the total rising to a new record figure of 233,150.

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This gives a traffic density of 212 vehicles for each of the 1,110 kilometres of road in the territory. Road congestion was further aggravated by the continuing construction work associated with major road improvements and the Mass Transit Railway.

　　　　　　Recent years have seen an increase in the number of traffic accidents, and this trend unfortunately continued in 1978. A total of 15,299 traffic accidents occurred, resulting in 435 people being killed and 19,796 being injured (provisional figures only).

Under the Fixed Penalty (Traffic Contraventions) Ordinance, selective action con- tinued against the more serious obstructions on main roads and indiscriminate road- side parking and stopping, particularly where there was an element of danger to other road users. In view of the continued increase in numbers of vehicles on the road, and the consequent pressure on scarce parking space, it was found necessary to issue 983,249 fixed penalty tickets 73.5 per cent more than in the previous year. Action continued to be taken to recover unpaid fixed penalty debts, resulting in the seizure of 84 vehicles, of which 53 were subsequently auctioned to meet the outstanding debts. Legislation is also in hand to make present debt recovery procedures more effective, without necessarily seizing the vehicle.

　　　　　　The number of moving traffic offences reported during the year by fixed penalty tickets under the Fixed Penalty (Criminal Proceedings) Ordinance was 214,140. The system commenced in November, 1976, on a restricted basis in order to ensure smooth implementation and acceptability by the public, and was gradually extended until August, 1977, when all police officers were authorised to issue tickets for moving traffic offences.

Road safety activities throughout the year concentrated on a series of mini- campaigns located at 13 districts throughout the territory. The campaigns were run in conjunction with government departments and reached many thousands of people. The Traffic Warden Corps continued to give valuable assistance to police. The corps increased to a total of 207 officers who issued a total of 273,606 fixed penalty tickets - 27.8 per cent of the total issued.

Training

　　　　　Since it opened in 1973, the Police Cadet School has proved to be a success and, because of this, the government has directed that the cadet population be increased from 600 to 750 by early 1979. The present school sites at Fan Gardens, Fanling, and Dodwell's Ridge, Sheung Shui, are temporary pending the building at Shuen Wan, near Plover Cove, of a permanent school for 1,200 cadets. Work on the permanent school has started and site formation for the upper part of the school has been completed. The school is expected to be ready for occupation in late 1980 or early 1981.

At Fan Gardens, Fanling, the school's fifth anniversary was marked in August with the passing out of the fourth group of cadets who had completed two years' training. Of the 146 cadets passing out, 121 joined the police force as constables and the re- mainder joined either the Customs and Excise Service, the Fire Services Department or the Prisons Department.

At the Police Training School, Aberdeen, the syllabus for recruit inspectors and junior police officers is constantly reviewed to ensure that it meets the needs of the officers concerned. In order to equip the recruits with a knowledge of law and police

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procedure, the most modern teaching aids are used. For inspectorate officers, the basic professional course is of 36 weeks' duration; for overseas officers, this includes an intensive colloquial Cantonese course of eight weeks' duration. The basic training course for recruit police constables lasts 20 weeks.

In addition to basic training, the Police Training School provides special courses for officers of all ranks. The courses update officers in law and procedure and, where applicable, develop leadership and management qualities.

　　　　　　In March, 1978, the District Continuation Training Scheme was implemented. This consists of nine phases of training days which constables attend at a District Continua- tion Training Centre at six-monthly intervals from their first year of service until their fifth year of service.

The Criminal Investigation Department (CID) training school held four 12-week courses at Aberdeen during the year. The 666 officers who attended ranged in rank from senior inspector to constable and included women. All were trained in the latest investigatory techniques, with particular emphasis being placed on the practical application of such skills. Since 1970, the CID school has trained a total of 3,342 students including officers from the Royal Brunei Police, The Philippines, the Immigration Department and the Customs and Excise Service. It is expected that the CID school will move to new premises at Ping Shek (formerly RAF Kai Tak) early in 1979. After the move it is anticipated that, in addition to the basic courses, it will be possible to introduce refresher and continuation courses for serving officers of the CID.

　　　　　　At the Police Tactical Unit at Fanling 1,352 gazetted officers, inspectors, station sergeants, sergeants and constables underwent training in anti-riot and crowd control techniques. This consists of a three-weeks' cadre course followed by a course of 12- weeks' duration when an anti-riot and crowd control company is formed. After train- ing the company performs operational duties in a police district. Some 229 women police officers also received basic instruction in crowd control at the Police Tactical Unit. Ten Saracen armoured personnel carriers are based there for use in an

emergency.

The training of officers in the Marine District to enable them to attain the various nautical qualifications required to perform their operational sea duties is undertaken by the Marine Police Training School. During the year 273 regular officers, both men and women, were trained in seamanship, engineering, wireless telegraphy and navigation. Some 12 auxiliary marine police officers went through similar training. In addition, 42 officers were trained as radar operators and 21 received radio telephony procedure training at the Hong Kong Polytechnic.

Auxiliary Police

The Royal Hong Kong Auxiliary Police Force, which recruits volunteers from all walks of life, has an establishment of 5,000. The principal role of the force is to support the regular force in its constabulary duties. In an emergency, when mobilisation may be ordered, auxiliaries provide personnel for internal security work.

In 1978, a daily average of 808 auxiliary volunteers turned out for constabulary duties. Some 24 officers received medals or commendations for good work.

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　　　　　　Efficiency is maintained by regular in-service training at Auxiliary Police Head- quarters on Hong Kong Island and at the various auxiliary unit bases. Members of the auxiliary force are required to undergo a minimum amount of training each year.

Customs and Excise Service

The Customs and Excise Service is a disciplined force of 1,292 officers controlled by the Director of Trade Industry and Customs.

　　　　　　The service is responsible for collecting and protecting 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 $707 million in revenue was collected on dutiable commodities in the 1977-8 financial year, compared with $680 million in 1976-7. Seizures and confisca- tions involved 1,380 kilograms of tobacco, 9,190 litres of liquor and 26,087 litres of diesel oil. A total of 1,354 people were arrested or summonsed and fines amounting to $224,420 were imposed by the courts.

　　　　　　The service is also responsible for the prevention and suppression of 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 232 kilograms of dangerous drugs - including 88 kilograms of heroin and 28 kilograms of morphine and 315 litres of acetic anhydride. A total of 1,078 people were arrested for narcotics offences, of whom 225 were charged with trafficking. The remainder were charged with simple possession or with smoking dangerous drugs. The illicit market value of the narcotics and acetic anhydride seized totalled more than $24 million.

　　　　　　The service is the sole agency for enforcement of the Copyright Ordinance. During the year, the copyright unit handled 72 cases connected with copyright infringement resulting in the seizure of 270 tape recorders, 3,909 records, 46,340 pirated tapes and 6,553 pirated books. A total of 66 people were convicted of various copyright offences and fines amounting to $205,350 were imposed by the courts.

Independent Commission Against Corruption

The Independent Commission Against Corruption (ICAC), established in February, 1974, is responsible for the detection and investigation of suspected corruption offences, the prevention of corruption and the enlistment of public support in combating corruption. In discharging such functions, the Commissioner of the ICAC is responsible directly to the Governor. The ICAC engages its own staff who are not within the purview of the Public Services Commission. It is financed from general

revenue.

　　　　　　The Advisory Committee on Corruption, which is composed of leading citizens and senior government officials, advises the Governor and the Commissioner on policy matters affecting the commission's staffing, financial estimates, administration and any

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other aspect of its work. The three functional branches of the commission - opera- tions, corruption prevention and community relations each have an advisory committee made up of members drawn from various sectors of the community.

　　　　　　In December, 1977, an ICAC Complaints Committee was set up to monitor com- plaints against the commission and to advise the Commissioner on any further action that is considered necessary. 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. During 1978, the committee met five times and considered 32 investigations into com- plaints made against the commission.

The establishment of the commission is 1,121 posts, of which 633 are in operations, 104 in corruption prevention, 306 in community relations and 78 in administration. (At the end of the year, 957 posts were filled with 580 in operations, 80 in corruption prevention, 235 in community relations and 62 in administration.)

Operations

The Operations Department is responsible for the investigation of alleged or suspected offences under the Prevention of Bribery Ordinance, the Corrupt and Illegal Practices Ordinance and the Independent Commission Against Corruption Ordinance.

　　　　　　The Operations Review Committee, which consists of private citizens and senior public servants, receives information from the Commissioner on all complaints of corruption made to the commission and on the progress made into their investigation, and it advises the Commissioner which complaints should no longer be pursued.

The partial amnesty for corruption offences committed before January 1, 1977, which was announced by the Governor in November, 1977, and the success of the commission's efforts since 1974 in combating corruption have inevitably led to a reduction in the incidence of complaints received from the public. In 1978, 1,234 reports were received: 400 (32 per cent) of these were made by personal visits to the main report centre or to the commission's local offices, 406 by telephone and 286 by letter.

The Operations Department is now concentrating its resources on the present and on the future to ensure that there will be no return to the days when corruption was all too prevalent. The department is developing its own intelligence as a basis for new investigations, concentrating on the 'satisfied customer' type of corruption. This form of corruption is extremely difficult to detect and prosecute. However it is hoped that, with effort and determination, it will be as effectively dealt with as the syndicated type of corruption which presented such a grave problem in the past.

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, 181 prosecutions were made under the Prevention of Bribery Ordinance and for related offences.

　　　　　As the Operations Department is given powers of detention and release on bail of arrested persons independent of the police, there is a purpose-built detention centre in its new headquarters at Murray Road Car Park Building in Central District, to where it moved in February, 1978.

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The Corruption Prevention Department is responsible for examining the procedures and practices of government departments and public bodies and recommending changes in work methods that may provide opportunities for corruption. It is also required to advise and help members of the public who seek advice on how to eliminate corrupt practices.

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, 60 studies were completed and the reports forwarded to relevant organisations for consideration. Of these studies, 49 related to government departments. At the end of the year, 28 studies were under preparation and 229 areas of activity were awaiting study.

　　　　　　One of the most important studies completed during the year was a lengthy and complex assignment on supervisory accountability in the Civil Service. This study deals with responsibility for effective supervision of staff, examines the concept of leadership and the requirements for control and organisation of staff. At the end of the year, the report was being studied in detail by the government.

　　　　　　　Since the department's inception, it has completed 201 studies. It is giving increasing attention to the process of monitoring the implementation by clients of recommenda- tions made in the department's reports. Another area receiving attention is the production of staff training programmes on corruption prevention methods, specially tailored to the requirements of individual government departments and aimed at supervisory and managerial staff.

Community Relations

The Community Relations Department is responsible for educating the public on the evils of corruption and enlisting their support in the fight against it. The ultimate aim of the department is to instil a greater sense of civic responsibility and higher social ethics in the community. The department's work is guided by the Citizens' Advisory Committee, whose members are drawn from a wide cross-section of society.

　　　　　　　To achieve its goal in public information and education, the department works through the mass media and through personal contact with the public, either indivi- dually or in groups. The department's seven local offices, situated in densely-populated areas, are open at times convenient to the public to receive reports about corruption, to deal with enquiries and to maintain contact with the public.

　　　　　　Liaison staff of the department established contact with different sectors of the community through 7,148 meetings and visits during 1978. As a result of these liaison programmes, many community organisations have taken the initiative in organising activities to enhance the community's awareness of the commission's objectives and to promote civic responsibility and higher social values.

During the year, work with educational institutions and the teaching profession continued. Five teaching kits and a series of story books on honesty were produced. The department also stepped up its efforts to disseminate information through the media, including the press, radio and television, and through other graphic and written materials. The commission's second television drama series, ICAC, was

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screened on local television during the year and aggregated audience figures for the series exceeded two million.

The Community Research Unit, which is responsible for monitoring changes in public attitudes to corruption and community responses to the commission's activities, conducted a number of surveys on the public's attitude towards corruption and their reception of the commission's educational programmes. The findings of these surveys will assist the commission in planning future programmes and development.

Prisons Department

　　　　　Although prisons have been operating since the founding of Hong Kong and part of Victoria Prison dates back to that era, it was only 40 years ago that the first Commis- sioner of Prisons was appointed. He had responsibility for Stanley Prison, the Lai Chi Kok Women's Prison and later Victoria Prison which had to be reopened follow- ing overcrowding at Stanley. Today the Commissioner of Prisons is responsible for 17 penal institutions, a half-way house and a staff training institute, and has an establishment of 3,649 uniformed staff and 598 civilian staff. The average daily penal population has increased from 3,003 in 1939 to 6,676 in 1978.

The fall in the daily average penal population recorded in 1977 continued in 1978 and, by the second half of the year, there was no overcrowding in institutions. Indeed Stanley Prison, for the first time in its history, was accommodating less than its certified accommodation.

With this background, 1978 has been a year of development, innovation, steady progress and planning for the future. Overall it was a successful year which saw the implementation of much of the planning and hard work put in over recent years.

The most important changes were in the facilities for young offenders. The newly- constructed Lai King Training Centre was opened in September which, with the sub- sequent closing of the outdated Chatham Road Centre, enabled the Tai Tam Gap Training Centre to be converted to a minimum security prison for young offenders. At the same time, security in one wing of the Pik Uk Correctional Institution was strengthened to allow the holding of top security young prisoners. This meant that by the end of the year all young prisoners were accommodated in institutions set aside for young offenders.

On the building and development side, work started on the maximum security prison at Shek Pik on Lantau Island, the new minimum security prison at Stanley, and on plans for the building of 349 staff quarters on the island of Hei Ling Chau. Approval was also given for the first phase of the rebuilding of Stanley Prison. In addition, a new radio network is nearing completion. This will provide a 24-hour link between all institutions, improving communications and security throughout the department.

A progressive step was the recruitment of four clinical psychologists. This nucleus of a psychological unit resulted from the report of a United Nations adviser, Dr Robert G. Andry, in 1976. A return visit in 1978 enabled a further study to be under- taken on the establishment of psychological services within the various penal pro- grammes, and for advice to be obtained on the way these should be developed. The new unit provides counselling and professional advice to some institutions, with priority given to reception prisons. Because there are only four psychologists the

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service is limited, but it is hoped that this kind of treatment will be available to all institutions in the future.

Adult Prisons

For adult males, the department operates seven prisons and a psychiatric centre with a total certified accommodation for 4,839 people. Geriatric prisoners, who are certified as clinically old, are concentrated at Ma Hang and Ma Po Ping Prisons.

The overall decline in the prisoner population has reduced overcrowding and by the end of the year only the Siu Lam Psychiatric Centre had slightly more inmates than its certified accommodation. The average daily population was 4,079 compared with 5,261 in 1977.

At Stanley Prison, a maximum security institution with accommodation for 1,605, all prisoners are now accommodated one to a cell. The safe confinement of an ever- increasing number of long term and life prisoners, many of whom are highly dangerous and vicious men, is of great concern to the prison authorities. The new maximum security prison being built at Shek Pik, when completed in 1981, will mean that a large number of these prisoners can be further divided between institutions. A phased scheme for the reprovisioning of Stanley has begun. This includes rebuilding the administration block and main gate with increased facilities for visitors, expansion of the prison hospital and a new industries block. Improvements to the existing water supply and sewage systems are also being undertaken.

　　　　　　There are two medium security prisons, Victoria (accommodation 428) and Ma Po Ping on Lantau Island (accommodation 570). At Victoria, which was a reception centre until 1977, internal structural alterations have been made providing more workshop space. Ma Po Ping, which continues to be the main prison industries pro- duction unit on Lantau Island, also houses a geriatric unit.

The three minimum security prisons are Ma Hang (accommodation 130), Chi Ma Wan (accommodation 536) and Pik Uk (accommodation 400). The main general departmental store was moved from Stanley Prison to Ma Hang, where the majority of inmates are employed on outside work. There is also a geriatric unit. At Chi Ma Wan, prisoners are mainly employed on outside community projects such as afforestation and roadworks as well as picnic area and beach cleaning. Workshops are provided for prisoners whose security category does not allow their employment outside the prison area.

　　　　　　Pik Uk is for prisoners serving short sentences who have previous institutional experience. Some are employed on outside community projects. A new industrial workshop is being planned at Pik Uk and work has begun on a new laundry to service government hospitals and clinics.

The Lai Chi Kok Reception Centre, with accommodation for 960 in maximum security conditions, is one of the few high-rise prisons in the world. Opened at the end of 1977 it houses all adult males on remand, people detained under the Immigration Ordinance, debtors and newly-convicted prisoners awaiting classification and alloca- tion to a particular prison. The majority of appellants, except those appealing against a sentence of death who are held at Stanley Prison, are housed at this prison. A psychia- tric observation unit was introduced early in the year for certain cases sent from the

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courts for observation or assessment. This has proved most useful, at the same time relieving the pressure on the psychiatric centre at Siu Lam.

Siu Lam Psychiatric Centre (accommodation 120) is a maximum security prison providing advanced psychiatric treatment for the criminally insane and certain con- victed prisoners of a dangerous and violent nature. Inmates of other institutions requiring psychiatric treatment or case assessments required by the courts are also sent to the centre, but are detained separately. The centre has a special wing tem- porarily set aside for female prisoners requiring the highest degree of security.

Young Male Offenders

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Three correctional programmes training centre, detention centre and prison operate for young offenders. There are five main centres which have a total certified accommodation of 1,152 young inmates; during 1978, the average daily population was 873. In addition, drug addiction treatment is provided for young offenders in a separate special sub-centre on Hei Ling Chau.

The opening of the Lai King Training Centre in September made possible a number of changes and improvements in the arrangements provided for young male offenders. There are three training centres providing half-day schooling and half-day vocational training. Sentences range from six months to three years and all inmates released have a job or a place in a school. Release is followed by three years compulsory after-care supervision.

Lai King Training Centre (accommodation 260) houses young convicted persons remanded for reports as to suitability for sentence to a training centre; young uncon- victed persons remanded from the courts on minor offences; and training centre inmates aged 14 to 17 years.

Cape Collinson Training Centre (accommodation 127) is a minimum security centre catering for the 18 to 21 age group. It is the home of the department's pipe and brass band, comprising inmates who are trained in such skills during detention.

The Pik Uk Correctional Institution (accommodation 385) is a maximum security institution with separate sections for a training centre and a prison. The more intract- able training centre inmates are held here. Also accommodated are young people, including adults under 25 years, convicted by the courts but remanded for reports as to their suitability for sentence to the Sha Tsui Detention Centre. The prison section holds young prisoners requiring a high degree of security and serving longer sentences. Tai Tam Gap Prison (accommodation 160), which was converted to a minimum. security prison in September, houses young prisoners of a low security category serving relatively short sentences.

　　　　　　The Sha Tsui Detention Centre (accommodation 220) is a medium security centre with two sections - one for 14 to 20 year-olds and the other for those aged 21 to 24. Inmates undergo a programme which has been stylised as 'short sharp shock' treat- ment for first offenders, or those with a short criminal history. The emphasis is on strict discipline, hard physical work and few privileges. Sentences range from one month to six months for those under 21 years, and three months to 12 months for the 21 to 24 year-olds. Discharge within these limits is at the discretion of the Commis- sioner of Prisons and occurs when it is considered the inmate has achieved the

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maximum benefit from the programme. Its success is reflected in statistics that show that about 75 per cent have not been reconvicted of any offence three years after their release. Release is followed by 12 months' compulsory supervision under an after-care officer.

　　　　　　After-care supervision is a vital aspect of both the training and detention centre programmes. The officer on after-care duties builds up a good working relationship with an inmate and his family during the inmate's time in a centre, and then regularly visits him after his release. On these visits the officer acts as a guide and counsellor, at the same time checking that the person under supervision obeys the conditions of his supervision order and does not get into bad company.

Drug Addiction Treatment

The Prisons Department runs the only compulsory drug addiction treatment and rehabilitation programme in Hong Kong. This programme provides the courts with an alternative to imprisonment for drug dependants found guilty of minor offences. The two addiction treatment centres at Tai Lam and Hei Ling Chau, which in- corporates a young inmates' centre, provide accommodation for 1,676 male inmates. A section of the Tai Lam Centre for Women is also set aside for this purpose.

　　　　　　The treatment programme, enacted by law in 1969, is based on discipline, physical activity mainly in the open air, and the complete absence of drugs. Its success rate has been outstanding by world standards; from 1969 to the end of 1978 it was calculated to be 64 per cent. Success is defined as satisfactory completion of a one-year period of supervision after release without a further conviction, and remaining drug-free.

　　　　　　　The Tai Lam Drug Addiction Treatment Centre, which has accommodation for 508, is used to house convicted people who have been remanded for a report as to suitability for sentence to a drug addiction treatment centre, as well as those sentenced to this form of treatment.

　　　　　　The largest addiction treatment centre, accommodating 1,008 inmates, is on Hei Ling Chau. Many inmates have long criminal records although their offences are of a minor nature. During the past three years, ample open-air physical work has been available for inmates who have played an important role in the development and expansion of the centre, while participating in the treatment programme. Work has started on a project for the construction of 349 staff quarters, which are urgently needed. Also on this island is the Young Inmates' Centre (accommodation 160). These inmates, aged 14 to 21, have been employed in constructing their own buildings and facilities as well as road making.

Female Offenders

The Tai Lam Centre for Women, accommodating 282, contains sections for prisoners and remands (136), drug addiction treatment inmates (116), and a young inmates' training centre (30). Due to a lack of suitable accommodation at Tai Lam, high security risk prisoners are housed in a separate section at the nearby Siu Lam Psychiatric Centre, but building alterations are under way that will allow them to eventually return to Tai Lam. The programmes at the training and drug addiction treatment sections are similar to those practised in the male institutions.

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Prison Industries Prison industries play their part in the occupation and rehabilitation of prisoners and inmates, and the resulting production meets the needs of some government and sub- vented organisations. The production value in 1978 was $17.9 million, compared with $14.9 million in 1977.

　　　　　　During 1978 a newly-appointed general manager began planning and implementing a comprehensive expansion and modernisation programme, based on an investigatory report produced in 1977. A start was made on the recruitment of industrial manage- ment staff in addition to more and better qualified supervisory and instructional staff to operate at institutional level. With the input of more capital and management resources, the objective is to increase output substantially both in quantity and quality.

Staff Training

The Staff Training Institute conducts one-year recruit courses, which include a period of field training for officers and assistant officers. Refresher and specialised continua- tion courses are organised for staff of all ranks, to supplement in-service training at institutions.

A number of senior officers have attended courses overseas and others have attended specialist training courses with the Medical and Health Department, the Social Welfare Department and at the University of Hong Kong.

　　　　　　Of late, pressure on accommodation at the Staff Training Institute has been so great that it became necessary to open a training camp in vacated barrack accommodation at Tai Lam. However, following recent staff increases, approval has been given for the building of an extension to the institute that will include additional classrooms, an indoor firing range, a mock court, control room and cell. Additional student accommodation will also be built.

Staff Welfare

　　　　　The department's Staff Welfare Officer visits all institutions regularly, and maintains close liaison with resident officers who have welfare duties. This member of the staff assists officers and their families with personal, financial and domestic problems. Social functions, sporting activities and staff outings, both on an institutional and departmental basis, are an important and regular feature of life in the department.

Fire Services

The Fire Services Department answered a total of 10,838 fire calls in 1978 - a drop of 244 compared with the record total of 11,082 in 1977. This was the first year since 1974 that there had been a reduction in the annual total of fire calls, and it was attributed to weather conditions which resulted in fewer countryside fires. Unfortun- ately there was no reduction in major fires. In the same period, 173,816 ambulance and 4,483 special service calls were also handled.

　　　　　　Fires caused 29 deaths and injured 596 people, including 113 firemen. A total of 320 people were rescued and hundreds of others were led to safety by firemen.

　　　　　　An analysis of supposed causes of fire in 1978 revealed that careless handling of smoking materials, other sources of ignition and electrical faults caused 5,233 fires.

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There was a welcome reduction in the number of fires caused by children playing with matches. During the year, 132 such fires broke out compared with 174 in 1977 and 311 in 1976. Fire prevention publicity seems to have produced positive results in this area. The number of fires involving overturned kerosene stoves, unattended or defective cooking stoves and heaters dropped from 606 in 1977 to 492 in 1978. Fire caused by Liquefied Petroleum Gas also decreased significantly to 48, compared with 99 in 1977. False alarm calls numbered 3,163, of which the great majority were raised with good intent - either by the public or by ultra-sensitive automatic alarm systems.

Buildings and Quarters

Under the department's development programme to provide emergency response to all areas within certain times and according to the category of risk, two new fire stations and one ambulance depot were commissioned during the year. These were Chung Hom Kok Fire Station on Hong Kong Island, Lei Muk Shue Fire Station in the New Territories and Lei Muk Shue Ambulance Depot. They brought the total number of fire and ambulance stations to 51. A further 13 fire or ambulance stations are included in various categories of the public works programme for construction over the next few years.

At the end of the year, more than 1,140 departmental married quarters were occupied or available for occupation. Construction work on 980 additional married. quarters for firemen and ambulancemen is scheduled for completion in early 1979.

Communications System

Work on implementing the first phase of the new communications system was under way in 1978. The phase includes the centralisation of all fire-fighting and ambulance control activities, the installation of semi-automatic vehicle location and status- indicating equipment to improve utilisation of ambulances, and a centrally-operated alarm and voice call-out system to all stations. This will improve and simplify the mobilising of emergency appliances and will result in an improved incident response time.

Fire Prevention Bureau

The Fire Prevention Bureau is responsible for the enforcement of fire safety regula- tions throughout Hong Kong. It also advises and assists all sections of the community in the abatement and elimination of fire hazards.

During the year the bureau's workload increased substantially with fire prevention lectures, exhibitions and demonstrations frequently conducted in association with kaifongs, rural committees and other community agencies. A greater emphasis is being placed on direct community involvement in fire prevention generally. In fact, the task of educating the public to the dangers of fire and showing them how these can be diminished is a major part of the bureau's work.

　　　　　　Some 8,990 complaints were received from members of the public either by tele- phone, letter or personal visits to fire stations. This was an 85 per cent increase on the previous year's record, and indicated the public's growing awareness of potential fire hazards and their willingness to report them.

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　　　　　　Bureau staff made 263,685 inspections of all types of premises, of which 150,139 were conducted as a result of complaints from the public about obstruction to the means of escape from buildings. Where fire hazards are found to exist, abatement notices are issued which, if not complied with, can lead to court action. In 1978, prosecutions totalled 5,555 with fines amounting to $1,112,280.

　　　　　　All new building plans are vetted by the bureau which makes requirements for the provision of built-in fire protection and advises on means of escape. More than 8,466 plans were received and processed during the year.

In-service courses for fire officers posted to the bureau were held at all levels. Train- ing was also given to officers from other countries, government departments, factory workers, hospital staff and groups from firms employing security personnel.

　　　　　　At the close of the year the bureau had a strength of 227, both uniformed and civilian - 17 per cent short of the authorised establishment.

Ambulance Command

The Fire Services Department operates the ambulance service which has a strength of 704 all ranks. During 1978, 57 senior ambulancemen and 158 ambulancemen were recruited. Recruitment and training of staff have been particularly active during the year because of the need to provide additional staff for new ambulances and because of the proposed reduced working week from 63 to 48 hours. It is hoped to introduce the shorter working week in the middle of 1979.

　　　　　　During the year, the Ambulance Command dealt with an average of 476 calls a day. This was an increase of eight per cent compared with the previous year. Of the total 173,816 calls, 139,885 were emergencies.

　　　　　　To cope with a steadily increasing demand, the ambulance fleet was expanded by 20 new vehicles in 1978 to 119. These new vehicles, an improved type with automatic transmission, were built in the United Kingdom to the department's specifications. With the completion in 1979 of three new depots at Tuen Mun, Sha Tin and Ngau Chi Wan, service to these areas will be improved and overcrowding at some stations eased.

　　　　　　Modern treatment methods and intensive training programmes are being instituted to improve the existing standards of ambulance aid and treatment techniques. In addi- tion to in-service training, officers also attend courses overseas.

　　　　　　Facilities on ambulances are constantly reviewed and all ambulances are equipped with analgesic apparatus, piped oxygen, inflatable splints, special stretchers and in- cubator-carrying capability.

Appliances and Workshops

The department has some 500 modern operational appliances and vehicles fitted with up-to-date fire-fighting and rescue equipment. Most equipment is purchased from the United Kingdom, but the department is constantly evaluating new products from different parts of the world, with a view to introducing them into service if it is found they fit local requirements.

　　　　　　In 1978, 78 new or replacement appliances and units of various kinds were brought into service and 33 items, which had come to the end of their serviceable life, were

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taken out. Among the major appliances commissioned were seven 37-metre and 50- metre turntable ladders, 10 pumping appliances, six light rescue units, five lighting tenders and 20 ambulances. Orders have been placed for two further 37-metre turntable ladders which should arrive in late 1979.

To maintain the fleet of appliances and other equipment, the department operates three mechanical workshops. They are responsible for repairing, fitting and installing additional equipment or carrying out essential modifications on appliances pertinent to local factors.

Training

The Fire Services Training School situated at Pat Heung, in the New Territories, has a staff of 87 including 15 instructors.

Operational firemen recruits undergo 26 weeks' training which includes more than 1,000 practical periods, lectures and visits. The range of instruction for officers and firemen is wide, covering 48 and 42 subjects respectively. Initial training of senior ambulancemen lasts 12 weeks, while initial training of ambulancemen takes eight weeks.

The school operated at full capacity during the year. A total of 417 men success- fully completed training of whom 20 were officers, 228 firemen and 169 senior ambulancemen and ambulancemen. At the end of the year, 114 recruits of all ranks were still under training at the school. Refresher training courses, including physical fitness assessments, are organised every year for all personnel of the rank of station officer and below.

The school also conducts basic fire-fighting and fire protection courses for employees of other government departments and of private companies in Hong Kong. Some 1,815 people attended these courses in 1978.

Establishment and Recruitment

The establishment of the Fire Services Department at the end of 1978 totalled 5,066 all ranks an increase of 434 over 1977.

The number of civilian staff employed by the department increased by 27 to 402. During the year, the services of 10 officers and 133 men were lost through death, dis- missal, retirement and resignation. A number of recruitment exercises held throughout the year resulted in the appointment of 16 officers and 516 firemen and ambulancemen. Standards are high and only about 10 per cent of all applicants were found to be suitable for appointment.

Immigration and Tourism

旅務境

遊和

A TOTAL of 13.5 million people passed through immigration control as they entered or left Hong Kong during 1978. This was 13 per cent more than in 1977. The continua- tion of the favourable economic climate was a factor contributing to the increase.

The Hong Kong International Airport had an extremely busy year and accounted for 39 per cent of the total. The Hong Kong-Macau Ferry Terminal dealt with 40 per cent and Lo Wu, on the Chinese-British border, with 21 per cent. Local residents accounted for 60 per cent of all travellers; the remainder were mostly short-term tourists or business visitors. More than one million visits were paid to China by residents of Hong Kong.

Immigration

The Immigration Department has a staff of 1,788, of whom 987 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 is a feature of Hong Kong's situation and while every effort is made to facilitate the entry of people visiting Hong Kong and those who have a positive contribution to make to the territory's development and prosperity, im- migration controls must be designed and operated to keep increases in population from migration within acceptable limits.

　　　　　　During 1978 there was a continuing increase in immigrants entering Hong Kong from China (which is the main source of migration to Hong Kong both legal and illegal). After reaching a peak of 77,000 people arriving here for settlement in 1973, there was a marked reduction in the flow of arrivals to 27,500 in 1976. In 1977, 34,000 people arrived and in 1978 the total rose to 71,500. This relatively high level of migration from China to Hong Kong caused considerable concern and was the subject of discussions between British and Chinese authorities during the year. The level of illegal immigration from China also increased sharply with 8,192 illegal immigrants being detected and repatriated to China, compared with 1,779 in 1977.

Efforts to combat illegal immigration continued throughout the year, and many cases of travellers using forged or falsified travel documents were detected, usually at Hong Kong International Airport, Kai Tak. Attempts by Hong Kong residents and

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visitors to Hong Kong to travel to other countries on forged documents or with forged visas were also uncovered, and close liaison was maintained with the immigra- tion authorities of the countries involved. It is becoming clear that co-operation between the immigration authorities of many countries is vital if the growing use of bogus travel documents and visas is to be contained.

　　　　　　The policy of deporting aliens convicted of serious criminal activities continued during the year, and the Governor in Council made 28 deportation orders.

There was a dramatic increase in the number of refugees from Vietnam arriving in Hong Kong. They numbered 3,356 rescued at sea by ocean-going vessels bound for Hong Kong as the first port of call or allowed to land exceptionally from other vessels on humanitarian grounds, and 2,441 who arrived directly in Hong Kong in their own small craft. At the end of the year, 3,561 refugees were still in Hong Kong awaiting resettlement. These figures do not include refugees from Vietnam who made their way to China and later entered Hong Kong illegally; nor more than 3,000 refugees on board the Panamanian freighter Huey Fong. This ship's first scheduled port of call was in Taiwan but she changed course after taking aboard the refugees. From December 23 to the end of the year, she remained anchored just outside Hong Kong waters.

　　　　　　A representative of the United Nations High Commissioner for Refugees (UNHCR) was stationed in Hong Kong for much of the year. The UNHCR cares for the refugees during their stay in Hong Kong and arranges for their resettlement overseas, meeting the costs of the operation from international funds. A number of welfare agencies in Hong Kong assisted the UNHCR. The Immigration Department main- tained close co-operation with the staff of the UNHCR, the representatives in Hong Kong of countries receiving the refugees, and the other agencies involved.

　　　　　　In addition to Hong Kong's efforts in coping with the problem of Vietnamese refugees arriving by sea, a total of 4,619 residents of Hong Kong and dependants of Hong Kong residents have been brought back to Hong Kong from Vietnam since the change of government there. Most of these refugees have travelled on 31 charter flights from Ho Chi Minh City organised by the Immigration Department.

Personal Documentation

During 1978, there was a 26 per cent increase in demands for British passports issued in Hong Kong. The demand for other Hong Kong travel documents also increased sharply. One result of the increase in demand for immigration facilities has been a large increase in the income derived from fees. This was $46.9 million for the year, and largely covered the direct costs of operating the Immigration Department.

Tourism

Hong Kong received 2,054,739 visitors during 1978 - an increase of 17 per cent over 1977. Expenditure by visitors also continued to grow and in 1978 was estimated to be approximately $5,000 million, an increase of more than 20 per cent over the previous

year.

　　　　　　　Of the major sources of visitors during 1978, the first five by volume were Southeast Asia (26.3 per cent), Japan (23.7 per cent), the United States (13.8 per cent), Western Europe (13.3 per cent) and Australia and New Zealand (9.1 per cent).

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Hong Kong Tourist Association Responsibility for handling tourism and for proposing plans for its development lies with the Hong Kong Tourist Association (HKTA).

The HKTA aims at increasing the number of people visiting Hong Kong while, at the same time, attracting more tourists from higher income groups or with special interests who will stay longer and spend more on a greater variety of goods and services.

　　　　　　A statutory body established by the government, the HKTA co-ordinates the activities of the industry and advises the government on measures for its growth. The chairman and members of the board are appointed by the Governor. The HKTA is financed by a subvention from general revenue to which certain sections of the industry contribute directly by way of a tax on hotel room charges. Members of the association also contribute to its costs through their membership dues.

　　　　　　The headquarters of the association are centrally located in Connaught Centre, on the waterfront of Hong Kong Island. Information offices for tourists are maintained at four other locations: Hong Kong International Airport; the Star Ferry Concourse in Kowloon; the Government Publications Centre near the Hong Kong terminal of the Star Ferry; and the World Trade Centre in Causeway Bay. These offices play an important role in ensuring that visitors obtain up-to-date information about Hong Kong, and achieve maximum satisfaction during their stay. They also enable a valuable insight to be obtained into visitors' needs and interests.

As well as its activities in Hong Kong, the HKTA has its own representative offices in London, Paris, Rome, Frankfurt, New York, Chicago, San Francisco, Sydney, Tokyo, Osaka and Singapore. Additionally in Southeast Asia, Japan, Australia, the United States and Bahrain, the association is represented by Cathay Pacific Airways. The HKTA works closely with its membership and with others connected with the tourist industry to develop and maintain facilities for visitors to Hong Kong. A prime concern is the provision of hotel rooms. The occupancy rate for Hong Kong hotels has been consistently above the world average for many years. During 1978, the average rate was 89 per cent. Investors continued to show an interest in hotel develop- ment and the association received many enquiries from Hong Kong and overseas. In December, phase one of the New World Hotel comprising 421 rooms opened, bringing the total number of hotel rooms in Hong Kong to 14,168. To maintain occupancy rates and to develop business in the off-peak months, the association pursues a highly selective marketing policy on the one hand and an active product development programme on the other.

A factor of growing importance to Hong Kong's tourist industry is the development of tourism in China. Senior Chinese officials have been studying the Hong Kong in- dustry and have had discussions with the HKTA about future travel trends. Sub- stantial development of China's tourist industry is expected to attract more visitors through Hong Kong.

Product Development

The HKTA has been concerned with the initiation and creation of many facilities such as Ocean Park and the annual Mid-Autumn Lantern Carnival - which are now

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accepted features of the Hong Kong scene for visitors and residents alike. The objec- tive of the association's Product Development Department is to preserve and improve such facilities and to develop new projects. These not only increase Hong Kong's attractions as a tourist destination, but help to increase the length of stay which is a direct means of increasing revenue for the industry.

One of the most successful projects to date has been the annual International Dragon Boat Races, which featured teams from Japan, Malaysia, Singapore and Hong Kong in 1978. Other activities included organisation of the Seven Sisters' Festival, cultural shows, new and improved tourist guide training courses and tours, increased visitor amenities, and participation in the Osaka Trade Fair.

Marketing

The selective marketing programme concentrates effort and expenditure in markets with the greatest potential for development, and for such specific activities as tours by special interest groups or the organisation of international conferences and conven- tions, which are an increasingly important part of Hong Kong's tourism industry.

The HKTA's Conferences and Meetings Department was formed in 1977 to provide information and assistance to conference organisers. Hong Kong has become the venue for an increasing number of international meetings by professional organisa- tions and business groups. Important meetings during 1978 included the First Asian Conference of Foreign Exchange Dealers, the Commonwealth Mining and Metal- lurgical Conference, the Mont Pelerin Society Annual General Meeting, and the Seatrade Conference. Altogether there were 90 international conferences, with a total overseas' attendance of 14,582.

Specific marketing projects during the year included a continuing drive to upgrade the business from Japan, Hong Kong's largest tourist source. For the past four years, more than 23 per cent of Hong Kong's visitors have come from Japan but Japanese visitors have, on average, stayed the shortest time. The marketing effort in Japan con- centrated on higher income groups and more interesting itineraries, but other attrac- tions of Hong Kong were not forgotten. A film, Romantic Hong Kong, was produced to introduce Hong Kong to Japan's honeymoon market. This programme had an encouraging response and is helping to improve the image of Hong Kong as a destination.

Hong Kong has been a destination for company incentive tours from Japan for several years. During 1978 the HKTA promoted Hong Kong as an incentive travel destination in other countries, notably the United States, Australia, New Zealand, the United Kingdom and in Europe. In those countries the association also emphasised special interest tours to the Hong Kong Arts Festival, the Ready-to-Wear Festival, to sample Chinese cooking and to enjoy horse-racing.

Promotional activities during 1978 included participation in the Sapporo Snow Festival in Japan, the American Society of Travel Agents Convention in Acapulco, the Incentive Travel and Meeting Executives Show in Chicago, the International Con- gress and Convention Association Conference in Madeira, the International Tourism Exchange in Berlin, and the Australian Federation of Travel Agents Convention in Adelaide. A programme of consumer and travel trade promotions was mounted in all

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established markets and special attention was devoted to developing the important emerging Middle East market.

Throughout Southeast Asia, Hong Kong continued to attract visitors by emphasis- ing its reputation as the most exciting city of the region. HKTA promotions featured shopping, nightlife, international cuisine and horse-racing as well as attractions such as Ocean Park and Food Street in Causeway Bay. A highlight of the association's efforts in Southeast Asia was the presence of Miss Hong Kong 1978 in Singapore, Malaysia and Thailand, to promote Hong Kong as a courteous visitor destination.

While marketing efforts are made abroad, the HKTA also recognises that the basis of a healthy tourist industry is in the services and facilities which the visitor is offered in Hong Kong. This calls for the closest co-operation with the association's members in projects such as the Tourist Industry Courtesy Programme, which was inaugurated in January, 1978. The 12-month programme was designed to upgrade standards of service by means of education and incentives, and it covered management as well as counter staff. The programme received wide publicity.

Public relations and publicity programmes were built around several other signi- ficant events during 1978 such as a French Chefs' Gourmet Tour, the Hong Kong Arts Festival, the Asian Hairstylists' Open Contest, the Asian Song Contest, the International Film Festival of Hong Kong, and the Festival of Asian Arts. Media visitors were invited to Hong Kong from all major markets to cover these and other special events. A total of 854 media visitors, including journalists, authors, film and television teams, came to Hong Kong during 1978 for familiarisation or repeat visits.

Public Works and Utilities

雪味药

老红

PUBLIC works expenditure is invariably one of the government's largest financial com- mitments. It covers the formation and reclamation of land, the provision of roads, sewers and piers, the supply of water and the construction of public buildings.

　　　　　　For the 1978-9 financial year, approved expenditure on public capital works amounted to $1,608 million, almost one-sixth of total government expenditure. Of this sum $349 million is being spent on roads, $176 million on water supplies and $126 million on public housing constructed by the Public Works Department, in addition to that being spent by the Housing Authority.

Geotechnical Control

The Geotechnical Control Office was established in July, 1977, to investigate the stability of existing natural and man-made slopes in Hong Kong, and to ensure the safety of new slopes and buildings to be sited on slopes. By the end of 1978 the office had a professional staff of more than 50 people, with a similar number of supporting staff. Further expansion of the office is planned to meet the large volume of work associated with the construction of slopes in Hong Kong.

An extensive programme of geotechnical surveys and stability studies of existing slopes is well under way and will continue until an exhaustive study has been made of the whole territory. A long-term research project was initiated to study the properties of local soils to enable better design procedures to be developed. An important section of a technical manual giving guidance on good engineering practice in respect of the design, construction and maintenance of slopes was produced in draft form and cir- culated widely in Hong Kong.

Preventive works on 36 fill slopes in the urban areas were completed satisfactorily, and contracts were let at the start of the 1978-9 dry season for works on a further 22 fill slopes.

Buildings

The building boom which existed in 1977 escalated during 1978 and showed no sign of abating. Shortage of skilled labour remained a problem and appeared to be the main factor causing delays in many building projects. Wage rates continued to increase and rose by 12 per cent during the year, while the cost of building materials increased by seven per cent. The consolidated effect of these increases would appear to warrant an increase of about nine per cent in tender prices. However these rose by 18 per cent, probably because the continuing demand for new construction work reduces

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competitiveness among contractors while, at the same time, the general shortage of skilled labour leads to lower productivity which the contractor must allow for in his pricing.

In view of the expected heavy increase in the public building programme, a con- tinued rise in tender prices is likely. It remains to be seen whether the industry can meet the production demands likely to be made on it.

Expenditure in 1978 on public housing and associated building work amounted to about $143 million, and on other building projects to approximately $550 million.

During the year, as part of the 10-year Housing Programme, 10 housing blocks providing accommodation for 45,000 people were completed. Also completed were two welfare halls, five 24-classroom estate primary schools, six kindergartens, four commercial-communal complexes and two restaurants.

　　　　　　By the end of the year, work was progressing at two public housing estates on nine domestic blocks which, when completed, will provide 37,983 individual units of accom- modation. Of these, 1,218 units are being provided by the conversion of an existing domestic block at Shek Kip Mei Estate. Also in the course of construction was a commercial-communal complex in Stage II of Tai Hing Estate at Tuen Mun which, when completed, will combine with the facilities constructed in Stage I to meet the commercial-communal needs of the entire estate. In addition, planning and prepara- tory work was under way for the conversion and redevelopment of the remainder of Shek Kip Mei Estate. This, on completion, will provide a further 13,833 individual units of accommodation.

Notable projects completed on Hong Kong Island were the first stage of Chater Garden in Central District; the first stage of a recreation centre at Wan Chai; a fire station at Chung Hom Kok; non-departmental quarters at Borrett Road; the MacLehose Dental Nurses Training School; a further extension to the columbarium at Cape Collinson Crematorium; an indoor games hall at Aberdeen Sportground; married officers' quarters and a community centre at Victoria Barracks; a technical workshop at HMS Tamar; and the new residence for the Commander British Forces, undertaken as part of the work associated with the release to the Hong Kong Govern- ment of land at Victoria Barracks.

　　　　　　Among the buildings completed in Kowloon were an extension to the office block at Hong Kong International Airport, Kai Tak; a vehicle inspection centre; a driving test centre; the reprovisioning of Stanley Training Centre at Lai Chi Kok; non- departmental quarters at Broadcast Drive; the reprovisioning of Ma Tau Wai Girls Home; a funeral depot at Winslow Street, Hung Hom; the first stage of Cheung Sha Wan Sportsground; part of the second stage of Kowloon Park in Tsim Sha Tsui; police stations at Cheung Sha Wan and Ho Man Tin; an extension to Ma Tau Kok Quarantine Depot; and, for Gurkha units at Gun Club Hill Barracks, married officers' quarters, a medical centre and an extension to the primary school.

Work completed in the New Territories included police stations at Sheung Kwai Chung, Sha Tin and Fanling; rank and file quarters for the police at Kwai Chung and Sha Tin and similar quarters for the fire services at Tsuen Wan and Sha Tin; a swim- ming pool complex at Fanling; a sportsground at Kwai Chung; a crematorium and columbarium at Tsuen Wan; an additional workshop at Tai Lam Centre for Women; the railway station and booking office at Sha Tin Racecourse Station; the control and

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administration building for the Second Lion Rock Tunnel; married soldiers' quarters at Sek Kong; a central servicing station at Borneo Lines; and, in connection with the transfer of Royal Air Force facilities from Kai Tak to Sek Kong, officers' and airmen's quarters, an administration building and a community centre.

　　　　　　At Hong Kong International Airport, work was under way at the end of the year on further modifications to the terminal building including the reprovisioning of the arrivals hall and restaurant, new piers, the first stage of a multi-storey car park, the refurbishing of the existing terminal building and the modifying of the old freight building.

　　　　　　Projects under construction at the end of 1978 included the reprovisioning of Victoria Technical School; the first stage of Kowloon Tong Technical Institute; the refurbishing of Government House; a multi-purpose auditorium at Tsuen Wan; a mental hospital at Lai Chi Kok; extensions and improvements to Fanling Hospital; a general clinic at Sha Tin; standard urban clinics at Ngau Tau Kok and Lei Muk Shue; a dental teaching clinic at Sai Ying Pun; additional staff quarters at Queen Mary Hospital; the reprovisioning of Diamond Hill Crematorium; further extensions to the columbarium at Cape Collinson Crematorium; government office buildings at Tai Po and Tuen Mun; the Hong Kong Space Museum at Tsim Sha Tsui; the Queen Elizabeth Indoor Games Centre at Morrison Hill; an indoor stadium at Hung Hom; an indoor games hall at Kwai Chung; a judiciary building at Gascoigne Road in Kowloon; a maximum security prison at Shek Pik; and the second phase of the International Mail Centre.

　　　　　　Other projects included ambulance depots at Ngau Tau Kok, Sha Tin and Tuen Mun; fire stations at Sha Tin and San Hui; a police station at Tuen Mun; police rank and file quarters at Ho Man Tin; markets at Bowrington Road on Hong Kong Island and at Tsuen Wan, and a market and hawker bazaar at Sha Tin; a promenade in Central District; a swimming pool and park at Chai Wan; a temple for Gurkha troops at Gun Club Hill Barracks; the reprovisioning of the headquarters of the Royal Hong Kong Regiment; non-departmental quarters at Mount Butler; village housing at Tsing Yi, Pat Tsz Wo and Kwai Tei; the new Headquarters for the British Forces in Hong Kong at HMS Tamar; and a number of other projects associated with the transfer of the military facilities from Victoria Barracks to HMS Tamar. Several playgrounds, amenity areas, latrines, hawker bazaars and floodlighting schemes were also in hand.

At the end of the year, design, working drawings or contract documents were being prepared for more than 200 projects. They included the redevelopment of Mong Kok and Sha Tin Railway Stations; the new Supreme Court; a cultural centre at Tsim Sha Tsui and cultural complexes in Sha Tin and Tuen Mun; composite government build- ings at Sai Wan Ho, Kwun Tong and in Central District; a new general hospital and staff quarters at Sha Tin; polyclinics at east Kowloon and Tuen Mun; a standard urban clinic at Lam Tei; the Yung Fung Shee Memorial Medical Centre in east Kowloon; the third general nurses' training school; accommodation for police emergency units and the Traffic Division, Kowloon; a cadet school for the Royal Hong Kong Police Force; and police stations at Sau Mau Ping, Hang Hau and Pat Heung; the Hong Kong Fire Services Headquarters and principal fire station as well as fire stations at Pok Fu Lam, Sheung Wan, Wong Tai Sin, Shek Kip Mei and Sai

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　　　　　Kung; fire services rank and file quarters at Sha Tin and Tuen Mun and an ambulance depot at Aberdeen.

Other projects in the planning or pre-contract stages included redeployment works at Osborne and Perowne Barracks; soldiers' quarters at Stanley Fort and officers' quarters at Sek Kong and Gun Club Hill Barracks; staff quarters at Sha Tsui Deten- tion Centre; non-departmental quarters at Ventris Road and Mount Butler on Hong Kong Island; a cattle quarantine depot on Tsing Yi Island; new premises for the Government Printer; an extension to the Public Works Department's Electrical and Mechanical Office Workshop at Sung Wong Toi Road, Kowloon; the Kowloon East Delivery Office for the Post Office; a half-way house and pre-release centre for the Prisons Department; an annexe and store at Stanley Prison and an extension to the Prisons Department's staff training institute.

In addition, an officers' mess and a physical and recreational training centre at Cassino Lines; a park at Wong Nai Chung Reservoir; a community centre at Tai Po; the reprovisioning of Sheung Shui Social Centre; the redevelopment of Boundary Street Sportsground in Kowloon; a park and swimming pool complex at Sham Shui Po; swimming pool complexes at Kwai Chung and Yuen Long; district open spaces. at Kwai Chung and Tuen Mun; a crematorium and columbarium at Sha Tin; markets at To Kwa Wan, Sham Shui Po, Tuen Mun and Kwai Chung and combined markets and hawker bazaars at Tsuen Wan and Sai Kung were also being planned, as were several other recreation grounds, beach buildings, and off-street refuse collection

centres.

Maintenance work on buildings in the public sector continued to expand and there was satisfactory progress with the construction of buildings for the Property Services Agency of the United Kingdom Department of the Environment. Private quantity surveyors and, to a lesser extent, private architects and consultant engineers continued to assist in the public building programme.

Metrication

All new projects designed in the Public Works Department are in metric form and since April 1, 1977, all new plans for private construction submitted to the Buildings Ordinance Office for approval have been required to be in metric form.

Land Development

In Kowloon, reclamation continued at Lai Chi Kok Bay, where about two hectares were formed for recreational use and open space. Reclamation by public dumping commenced at Sham Shui Po, where 3.4 hectares were formed for institutional use. At Kwun Tong 0.2 of a hectare was formed for the Kowloon East Delivery Office for the Post Office, and at Diamond Hill 2.2 hectares were formed for a crematorium.

　　　　　　On Hong Kong Island, reclamation continued with the formation of 2.1 hectares at Chai Wan for housing and community uses, and 0.6 of a hectare at Aldrich Bay for roads and boatyards. At Aberdeen, 3.2 hectares were formed for the construction of boatyards and a road. A further 0.9 of a hectare was formed for the construction of a trunk road at Shek Pai Wan. On the western side of Hong Kong Island, four hectares were reclaimed for the construction of roads, a wholesale market and for cargo handling uses.

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In the New Territories, reclamation was completed for the first stage of Tai Po Industrial Estate, providing a total of 27 hectares of formed land. Reclamation for the second stage continued. At Shuen Wan, near Tai Po, 8.9 hectares were formed for a police cadet school and on Lantau Island 18 hectares were formed for a maximum security prison.

　　　　　A comprehensive feasibility study on the possible future development of Junk Bay to provide land for industry and housing was completed by consultants. An engineer- ing feasibility study for urban development in the northern part of Lantau Island commenced. The study also included an assessment of the amount of earthworks which would be involved if a replacement airport was built at Chek Lap Kok Island, near Lantau Island.

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. Laying of new sewers in Ap Lei Chau, Hung Hom Kwai Chung and Yuen Long was completed and construction of submarine outfalls at Kwai Chung, Chai Wan and Repulse Bay continued. New submarine outfall construction at Ap Lei Chau and Tuen Mun was started.

A report on experimental work, which assessed the suitability of various sewage treatment methods at the Shek Wu Hui pilot sewage treatment plant, was being pre- pared. Additional experiments on the co-digestion of septic tank sludge with sewage sludge were completed, while further tests on plastic media filters continued. A pilot study on the treatment of abattoir wastes was about to start. The new sewage treatment works at Yuen Long were completed. Construction of other treatment works at Tai Po, Aberdeen, Ap Lei Chau and Repulse Bay was in progress. Consulting engineers continued with the design of Stage I sewage treatment and disposal works for north- west Kowloon. Radioactive tracer tests in East Lamma and Tathong Channels, to assess the suitability of these sites for sludge dumping, were completed. Construction work for Stage I of the permanent sewage treatment plant to serve Sha Tin New Town commenced at the beginning of the year.

　　　　　　The long-term monitoring of the quality of local waters to establish pollution levels and trends, and to provide data for the timely implementation of sewage treatment facilities, continued. A data report summarising all monitoring results to mid-1978 was being prepared.

Duplication of stormwater drains in Kwun Tong Road was completed and river training works at Tung Chung on Lantau Island continued.

About 1,050,000 tonnes of solid wastes were treated at the five controlled tipping sites at Sai Tso Wan, Ngau Chi Wan, Gin Drinker's Bay, Ma Tso Lung and Shuen Wan. This is an increase of 10 per cent over the previous year's figure. Construction of replacement tips at Junk Bay, Ma Yau Tong and Siu Lang Shui was in progress. Construction of a refuse incinerator at Kwai Chung continued and commissioning commenced in November. The plant has a capacity of 900 tonnes a day and is ex- pected to be fully operational in 1979.

The construction of Hong Kong's first full-scale refuse composting plant, at Chai Wan, commenced at the beginning of the year and will be completed early in 1979.

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The plant will deal with 240 tonnes of refuse a day and will be capable of a future upgrading to 480 tonnes a day.

　　　　　　Late in the year, consideration was being given to the building of a composting plant at Sha Tin. If built, the plant could be operational by early 1981.

　　　　　　Construction of a pilot refuse baling plant at Sai Tso Wan commenced in July and will be completed early in 1979. This will be the first refuse baling plant in Hong Kong and it will have a capacity of 600 tonnes a day.

Port Works

　　　　　On Hong Kong Island, construction work for a total of 1,840 metres of seawall con- tinued in Western District, at Po Chong Wan and Shek Pai Wan in Aberdeen, and at Aldrich Bay. A contract was let for the construction of 900 metres of seawall founda- tion in Western District. The construction of a second passenger ferry pier at North Point continued.

　　　　　　In Kowloon, a new ferry pier and concourse at Sham Shui Po and a temporary ferry pier at Mei Foo Sun Tsuen, Lai Chi Kok, were completed. At Hung Hom, construc- tion work for a new ferry pier was nearing completion. A contract was let for the construction of the last section of the seawall for the Sham Shui Po Reclamation. The construction of the seawall for the reclamation at Cheung Sha Wan was well advanced. At Kowloon Bay, construction of the last section of the seawall was completed.

In the New Territories, a start was made on the construction of breakwaters for Cheung Chau Typhoon Shelter. On completion, the typhoon shelter will provide a gross shelter area of approximately 63 hectares. In the Rambler Channel Typhoon Shelter, reclamation work to provide land for cargo handling was nearing completion. At Tai Po, construction work continued on the 1,100 metres of seawall for the reclama- tion required for the future industrial estate. A total of 400 metres of seawall was con- structed to retain reclamation in Tai Lam Bay.

　　　　　　In Victoria Harbour dredging work to reduce the sea bed to its original level con- tinued at the mooring areas south of Stonecutters Island.

Quarrying

In order to increase further the production of crushed rock aggregates in Hong Kong, contracts were let during 1978 for two new quarries. One commenced production dur- ing the year while the other will begin operations early in 1979. In addition to the two government quarries, there were six contract quarries in operation during 1978. Investigations into sites for future quarries also began.

　　　　　　Because of the continued heavy demand for construction materials in Hong Kong, production of the existing contract quarries has further increased through the more efficient use of existing plant and the installation of additional processing equipment. The recently-modernised government quarry at Mount Butler was in full production during 1978, and work began during the year on modernising the other government quarry at Diamond Hill in Kowloon. As a result, production at the two quarries increased by one-third during the year. Total production in all the quarries during 1978 reached the record figure of 8,850,000 cubic metres of crushed rock aggregates. In addition, a large volume of bitumen-coated material and ready-mixed concrete was supplied.

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A considerable proportion of the sand needed by Hong Kong was met by dredging suitable deposits in Mirs Bay, and a total of 960,082 cubic metres of marine sand was sold through government sand depots. In addition, 129,232 cubic metres of sand manufactured from crushed rock and supplied through government contracts was sold at the sand depots. The construction of a sand depot at Kowloon Bay was completed early in the year. Work started on the new sand depot at Lai Chi Kok which will be used for maintaining the marine sand service. A start was made on the design of additional sand depots to serve the New Territories, and construction of these depots is expected to follow shortly.

Water Supplies

Below average rainfall fell during January and February but early summer rains in March and April enabled water restrictions, which had been in effect since June 1, 1977, to be lifted. A full supply was restored from April 19,1978, to the end of the year.

　　　　　　Storage at the beginning of 1978 was only 187 million cubic metres, compared with 238 million cubic metres at the start of the previous year. But by October the situation had improved considerably, with 347 million cubic metres (or 60.1 per cent of the total capacity, which now includes High Island Reservoir) held in storage, compared with 202 million cubic metres at the same time in 1977. Rainfall for the year was 2,593 millimetres compared with an average of 2,246 millimetres.

On January 1, the combined storage in Hong Kong's two largest reservoirs, High Island and Plover Cove, was 148 million cubic metres. The quality of water impounded in these reservoirs was satisfactory throughout the year: salinity contents at the end of the year being 35 and 79 milligrammes per litre respectively.

　　　　　　A total of 144 million cubic metres of water was piped from China during the year. An additional nine million cubic metres is to be supplied from October, 1978, to July, 1979, following a further agreement reached with the Bureau of Water Conservancy and Electric Power, Kwangtung Province.

Due mainly to the lifting of water restrictions, fresh water demand increased over the previous year with the average consumption being 1.13 million cubic metres a day, compared with 1.06 million cubic metres a day in 1977. In addition, 76 million cubic metres of salt water were supplied for flushing purposes.

At High Island Reservoir, which has a capacity of 273 million cubic metres, con- struction of the east dam was completed by June, thus bringing the reservoir basin to its full height. All other works were substantially completed and the project was officially opened by the Governor on November 27.

　　　　　　The 182,000 cubic metres a day desalting plant at Lok On Pai continued to operate at full output until May when, with a favourable reservoir storage position, a phased shutdown commenced. Plant operation ceased early in June. Planned maintenance commenced and detailed feasibility studies into 'mothballing' the plant were in hand. Shift working on the plant was reduced to a caretaker basis, with the balance of operational staff redeployed to supplement maintenance staff at Lok On Pai and to assist other divisions of the Water Supplies Department. General investigations con- tinued into the various alternative desalting processes and the assessment of possible future plant sites.

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Work continued on other projects designed to meet increasing demands in existing and new areas of development. During the year, planning studies were completed for a new supply to Lamma Island, together with those for improvement of water supplies to Aberdeen, Shouson Hill, Chai Wan, Beacon Hill, Kowloon Bay and Kat O. New supply proposals were planned for Ma Wan, Cheung Sha and some of the high level areas of North Point. Further water supply proposals were formulated to meet the developing needs of the new towns, market towns and rural townships of the New Territories including new systems to serve the south and west coasts of Tsing Yi, the high level development at Lai King Hill Road, the power station at Tap Shek Kok and the industrial estate at Yuen Long.

Detailed studies were in hand to increase water resources by the development of new catchment areas in the north-east of the Sai Kung peninsula, Nim Wan and northern Lantau. Studies into the possible use of recycled waste-water were also in hand. In order to utilise the additional water obtained by agreement with China, design and construction works commenced on the system for transferring additional water from the East River Scheme. Design works were also in hand for the development of the River Ganges Catchment, together with new water supply systems for the Fei Ngo Shan area and Ap Lei Chau. Design and construction progressed satisfactorily on the new supply systems for the new towns of Sha Tin, Tuen Mun and Tsuen Wan, together with those for Tai Po Industrial Estate, Yuen Long and Tsing Yi. On Hong Kong Island, works were in hand to improve the water supply to Pok Fu Lam, Stanley and Repulse Bay.

The safety of existing reservoirs continued to receive attention, with detailed exami- nations proceeding and remedial works implemented where necessary.

With continuing industrial, economic and social expansion throughout Hong Kong, and the consequent increased demand for water resources, overcommitment of staff resources continued, making it necessary to employ consultants on a number of smaller projects.

Following the successful implementation of the first phase of computerisation of water billing and related procedures for trade consumers, work to extend the scheme to domestic and other consumers was put in hand with view to starting computerised billing by the middle of 1979.

Public Utilities

Electricity

Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma are supplied with electricity by the Hong Kong Electric Company 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 Chau is served by the Cheung Chau Electric Company Limited. The three companies are investor-owned and do not operate under franchise. However, the government does exercise a measure of profit control over the two main undertakings.

　　　　　　The China Light and Power Company supplies electricity to Kowloon and the New Territories, including Lantau and a number of outlying islands. Generation of electri- city is carried out partly by China Light and partly by Peninsula Electric Power

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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 Hok Un 'A' and 'B' (total 350 MW) and a number of diesel sets (total 6 MW).

The Hong Kong Electric Company has a generating station at Ap Lei Chau with a generating capacity of 806 MW, following the commissioning of a 50 MW gas turbine unit in November, 1978. Three more 125 MW generating units will be commissioned in 1979, 1980 and 1981 which will complete the development of the entire station (1,181 MW).

The installed capacity of the Cheung Chau Electric Company is 7 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 1978, as well as electricity sales figures for 1976 to 1978, are shown in Appendix 34.

Gas

The Hong Kong and China Gas Company Limited supplies Towngas to the urban areas of Hong Kong Island, Kowloon and the New Territories.

　　　　　　Towngas is available throughout the island with the exception of the Shek O peninsula. The area of supply extends to Chai Wan in the east and to Aberdeen, Repulse Bay and Stanley in the south. The company is also in the process of extending its services to Ap Lei Chau. Towngas is supplied throughout Kowloon, including Kwun Tong and the rapidly developing area of north-east Kowloon. In the New Ter- ritories, the area of supply includes Kwai Chung, Tsuen Wan and the neighbouring island of Tsing Yi. Towngas is also supplied throughout Sha Tin.

　　　　　　The company's production station is located at Ma Tau Kok in Kowloon. Hong Kong Island is supplied by four submarine pipelines, the company having laid two 400 millimetre-diameter pipelines under Victoria Harbour in 1978 to supple- ment two 250 millimetre-diameter pipelines laid in 1958. Towngas is produced in six modern cyclic naphtha reforming plants, with a total installed capacity of 935,000 cubic metres a day. Two additional units, each rated at 283,000 cubic metres a day, are now under construction and are scheduled to be commissioned early in 1980.

　　　　　　Towngas is distributed at a calorific value of 17.27 MJ/m3 and a specific gravity of approximately 0.56. Gas is sold on the thermal basis (one therm=105.5 megajoules). Towngas sales in 1978 amounted to 23.7 million therms (2.5 million gigajoules) compared with 19.7 million therms (2.08 million gigajoules) in 1977.

Communications and Transport

　　　　　AMBITIOUS transport schemes are proceeding in Hong Kong which will fundamentally change the territory's traffic patterns and travelling habits within the next five years. By the end of 1978, about 80 per cent of the civil engineering work on the modified initial system of the Mass Transit Railway was complete and the first section of the underground railway was scheduled for opening in September, 1979. Plans were proceeding for the modernisation of the Kowloon-Canton Railway and major road works, which will substantially reduce travelling time on Hong Kong Island, Kowloon and the New Territories, were forging ahead.

　　　　　　A contributing factor to Hong Kong's development as a leading centre of industry, trade and finance has been its exceptionally efficient communications network and its first-class facilities for the aviation and shipping industries. During 1978, a record five million passengers passed through Hong Kong International Airport and ocean- going vessels loaded and discharged more than 23.7 million tonnes of cargo.

Postal Services

With the reintroduction of an additional mobile post office to serve the remote parts of the New Territories, there are now 74 post offices operating in Hong Kong.

　　　　　　An important event during the year was the Fourth International Express Mail Service (Speedpost) Conference held in Hong Kong from March 13 to 17. Twenty- nine delegates from 18 postal administrations participated, with the object of im- proving the working arrangements and extending the range of Speedpost services. The meeting was the largest International Express Mail Service conference ever held and its size reflected the growing interest of postal administrations in the development and extension of this important service.

　　　　　　In addition to established Speedpost services to Australia, Belgium, Brazil, France, Japan, the Netherlands, the United Kingdom and the United States, the service was extended during the year to include Taiwan and Singapore. The increasing use of the Speedpost service by firms and businessmen was reflected in the continued growth in traffic, which amounted to 78,000 items handled during 1978 - an increase of 70 per cent over 1977.

　　　　　　In most areas of Hong Kong, there are two mail deliveries each weekday and the Post Office is generally successful in achieving its target of delivering local mail not later than one working day after the date of posting.

　　　　　　During the year, an estimated total of 323 million letters, registered articles and parcels were handled, representing an increase of 7.3 per cent over the previous year.

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Hong Kong's Customs and Excise Service is making a major contribution to the sup- pression of illicit drug trafficking. Through its vigilance and continued drive against drug smugglers, the service has achieved outstanding success in its seizure of narco- tics. About half of the service's 1,200 officers are deployed in preventive action to combat drug offences. The remainder safeguard and collect the revenue which is paid on Hong Kong's four dutiable com- modities tobacco, liquor, hydrocarbon oils and methyl alcohol. Customs officers cover the harbour one of the world's busiest and inspect baggage and freight arriving at Hong Kong International Airport. Land patrols comb the territory deterring illicit distilling, the misuse of light diesel oil and drug activities. An im- portant feature of the service's work during 1978 was a sustained operation against copyright infringements connected with cassette tapes. This has significantly affected the manufacturing and sale of pirated tapes in Hong Kong. The Customs and Excise Service works closely with other law enforcement agencies and customs organisations throughout the world. Its officers and inspectors, who graduate from the service's internationally-respected Tai Lam Chung Training School in the New Territories, have a reputation for thor- oughness and efficiency.

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COMMUNICATIONS AND TRANSPORT

157

　　　　　Local mail, which accounted for 52 per cent of the total volume of mail items handled, increased by 8.8 per cent. There was a sharp decline in surface parcel postings and a decrease of 44.7 per cent was recorded compared with 1977. This was attributable mainly to a drop in the number of parcels destined for China.

　　　　　　Approximately 1,200 tonnes of mail and 2,200 tonnes of parcels were despatched abroad by air during the year, representing increases of eight per cent and 6.8 per cent respectively.

　　　　　　A new service called the 'Rapid Box Delivery Service' was introduced. It offers fast delivery of items addressed to post office private boxes in the General Post Office and Kowloon Central and Tsim Sha Tsui Post Offices. Items posted in special posting boxes in these offices are delivered within the local office inside two hours.

　　　　　　Further progress was made on the $43 million International Mail Centre with the award, in April, of the contract for postal mechanisation. The centre, scheduled to open in 1980, will be the major mail processing unit in Hong Kong and will handle all international mail.

There were three issues of commemorative stamps in 1978. Two stamps were issued in January to commemorate the Lunar New Year the Year of the Horse. This was the 12th in the series and completed the cycle of the Lunar New Year com- memorative stamps. In June two stamps were issued to mark the occasion of the 25th Anniversary of the Coronation. Two stamps were issued in November to mark the centenary of Po Leung Kuk, one of the oldest established charitable organisations in Hong Kong.

　　　　　　Agency services carried out by the Post Office on behalf of other government de- partments included the payment of social welfare benefits amounting to $17 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 also acts as adviser to the gov- ernment on matters concerning the provision of public telecommunication services including internal and international telephone, telegraph, telex and data services, and the technical aspects of radio and television broadcasting.

　　　　　　The Post Office provides advisory and planning services for the electronic, radio and telephone requirements of government departments. During 1978, projects under- taken included a definitive transmission plan for VHF sound broadcasting services, a facsimile network for the Labour Department, and a territory-wide command and control network for the Fire Services Department. Installation and maintenance facilities are provided by two workshops in Kowloon and Hong Kong for radio and electronic equipment, including a large number of electro-medical items for the Medical and Health Department.

　　　　　　The Post Office issues the licences specified in the Telecommunications Ordinance and is responsible for ensuring that licensees comply with the stipulated conditions. Surveillance of the radio frequency bands is maintained in order to detect interference and illegal transmissions. Commencing in 1978, a study by consultants began to advise on the management and utilisation of the radio frequency spectrum.

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On behalf of the Director of Marine, the Post Office carries out inspections and surveys of ships' radio stations to ensure compliance with the International Con- vention for the Safety of Life at Sea. Examinations are also arranged and conducted as required for the issue of international certificates connected with the operation of maritime radio services.

Telephone services and various other telecommunication facilities within Hong Kong are provided by the Hong Kong Telephone Company Limited, in accordance with the provisions of the Telephone Ordinance. The telephone system is fully au- tomatic 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 29 telephones for every 100 people, Hong Kong has the second highest telephone density in Asia and a steady growth pattern is continuing. Tele- phone service is generally available on demand anywhere in the territory, with the company extending its service to remote areas and smaller offshore islands. The telephone company operates a total of 62 telephone exchanges, with equipment rang- ing from electro-mechanical systems to the latest design in common control semi- electronic apparatus. A ships' telephone service is available which enables calls to be made into the public telephone network within minutes of a ship mooring in Victoria 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 its introduction in 1976, international direct dialling has been extended to more than 40 countries including most of Western Europe, East Africa, North America, Australia, New Zealand, Taiwan, Singapore, Japan and Israel. International direct dialling is available to subscribers in most telephone exchange areas and plans are well advanced to extend the service to the remaining areas.

Hong Kong's international telecommunication services are provided by Cable and Wireless Limited. 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.

Two new data services were introduced by Cable and Wireless in 1978. They are International Database Access Service (IDAS) and BUREAUFAX. IDAS provides subscribers in Hong Kong with access to large database computer systems in North America via the TYMNET and TELENET data networks for retrieval of information on a variety of subjects such as finance, science, engineering, medicine and business, depending on the subscriber's requirements and the choice of a host computer.

BUREAUFAX is an over-the-counter high-speed international facsimile service through which printed forms, documents, computer printouts, diagrams, music and other printed or handwritten material can be sent to or received from the United States.

　　　　　　These telecommunication services are provided via various communication systems such as the international satellite communication system, submarine and land tele- phone cables, tropospheric scatter system, and microwave and high frequency radio.

Switching of telegraph, telex and telephone messages is fully automatic.

COMMUNICATIONS AND TRANSPORT

Civil Aviation

159

A milestone was achieved in civil aviation in 1978 when the number of passengers passing through Hong Kong International Airport totalled more than five million. During the year, 2,718,000 passengers arrived on holiday or to do business and 2,868,000 left by air, in addition to some 500,000 people who stopped briefly in Hong Kong in transit.

　　　　　The air freight industry recorded another boost in throughput with more than 229,000 tonnes carried, an increase of nearly 25 per cent over the previous year. In terms of value, the volume of freight forwarded by air carriers accounted for almost one-quarter of Hong Kong's total domestic exports and about one-third of its re- exports. Imports by air amounted to nearly one-fifth of the total by all sources. The value of goods exported and re-exported by air totalled about $14,000 million for the year.

　　　　　　Despite the gradual adoption of wide-bodied aircraft by major airlines to offset the ever-increasing passenger traffic, there was a slight upsurge in aircraft movements during the year. During 1978, some 30 airlines were operating about 900 scheduled passenger services each week between Hong Kong and the United Kingdom, North America, Europe, East and South Africa, the Middle East, Australia, New Zealand, the South Pacific region, and Southeast Asian countries. In addition, about 40 non- scheduled passenger services a week were operated by other airlines.

　　　　　　Hong Kong International Airport, Kai Tak, remains one of the busiest airports in the Southeast Asian region. Both passenger and freight traffic are steadily increasing and this trend is expected to continue.

To cope with the growth of traffic, passenger facilities at the terminal building are being improved under a continuing development programme. Following the opening of the terminal extension in late 1977, a second baggage reclaim loop was implemented in early 1978, shortening the time arriving passengers have to wait for their baggage. Additional immigration desks and customs checkpoints were also provided to speed up arrival clearance. At the same time, the departure level was extended to incorporate a large general merchandise concession and a spacious seating area.

In March, a 1,020-square metre buffer hall was introduced to facilitate the arrival of passengers. Counters of the Hong Kong Tourist Association, the Hong Kong Hotels Association and the Hong Kong Association of Travel Agents are accom- modated under one roof to provide services and guidance to arriving tourists. Group travellers and tourists, whose needs have been taken care of by their respective agents, are provided with exit routes separate from those for passengers who are expecting friends or relatives to meet them in the greeting area. This has helped to relieve the congestion previously experienced in the arrivals hall.

　　　　　　A new round-the-clock airport hire-car service was introduced in June to improve transport facilities. This replaced the former fleet of public hire cars which were due to be de-registered under new licensing requirements.

　　　　　　During the year, various development projects started. The building of two more jumbo piers with aerobridges and associated bus docks began and work is expected to be completed in early 1980. Construction also started on the arrivals hall extension and on a new restaurant block. A multi-storey car park was being built in two stages. The first stage, providing nearly 450 parking spaces, is scheduled for completion in

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1979 and the second stage, providing a similar number of spaces, will be finished by late 1980. Piling and site formation work were completed late in the year on a flyover for east-bound traffic from Prince Edward Road to service the airport at the depar- tures level, and work on the superstructure began immediately.

Radar facilities were improved by the introduction of a new long-range surveillance radar capable of detecting the position of aircraft 200 nautical miles away and at altitudes of up to 18,300 metres. Collocated with an existing radar station on Mount Parker, the new radar provides information to the Air Traffic Control Centre on aircraft within Hong Kong's area of responsibility.

A project to provide new aids and to improve airfield lighting started in the second half of the year. It includes the installation of a taxi-track guidance signs system, additional taxi-track stop-bars, parking bay illuminated number signs and apron floodlight control, as well as a visual display unit micro-processor system at the control tower. These various aids will facilitate the smooth operation and control of aircraft on the ground.

Further development of Hong Kong International Airport beyond the current phase of expansion, to be completed in 1981, is seriously restricted by operational constraints imposed by the nature of the surrounding terrain, the close proximity of urban areas and the lack of land. Examination of the practicability of providing a replacement airport at Chek Lap Kok Island near Lantau Island is in progress; the next step is the development by consultants of a conceptual airport layout plan to include the configuration of runways, taxi-ways, buildings and approach zones.

Shipping

　　　　　Hong Kong's harbour is one of the busiest in the world and it has earned a world-wide reputation for the way in which it caters for the requirements of modern shipping. Victoria Harbour, which lies between Hong Kong Island and the city of Kowloon, is one of the three most perfect natural harbours in the world. It has an area of 6,000 hectares varying in width from 1.6 to 9.6 kilometres.

The administration of the port is one of the responsibilities of the Director of Marine. To ensure that port facilities and services continue to develop with the changing needs of Hong Kong and of the ships which use the port, the director is advised on its administration by the Port Committee and the Port Executive Com- mittee, through which the closest liaison with Hong Kong's shipping and commercial interests is maintained.

The Kwai Chung Container Terminal, which ranks among the top four container terminals in the world, handled the equivalent of 1.26 million twenty-foot containers in 1978. The terminal has six berths totalling more than 1,800 metres fronting on to about 60 hectares of cargo handling space, which includes container yards and con- tainer freight stations. Six 'third generation' containerships can be accommodated and worked simultaneously at these berths, all of which are operated by private companies or consortia.

In 1978, some 8,900 ocean-going vessels called at Hong Kong and loaded and discharged more than 23.7 million tonnes of cargo. This included 17.8 million tonnes of general goods, 49 per cent of which was containerised cargo.

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161

　　　　　　While the tonnage of cargo carried in containers continues to increase, a considera- ble amount of dry cargo handled in Hong Kong is still transported at some stage by about 1,900 lighters and junks. The ratio of mechanised junks has slightly decreased to about 37 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 turn-round of ships has been brought into use by the wharf and godown companies. A recent sample survey revealed that, on average, conventional ships working cargo at buoys are in port for 2.8 days and containerships are here for just 21 hours including steaming, berthing and un- berthing time. These are probably the fastest turn-round times for ships in the Far East. 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 con- tainer 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, Yau Ma Tei, Tsuen Wan and Kwun Tong; the latter two being declared open in January and July respectively. These areas 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 71 mooring buoys operated and maintained by the Marine Department for ocean-going vessels. Of these, 43 are suitable for vessels of up to 183 metres in length and the remainder for ships of up to 135 metres in length. The moorings include 60 special typhoon buoys, which are located so that ships can remain secured to them during tropical storms. This obviates unnecessary ship move- ments, thus helping to maintain efficiency and reduce operational costs. Safe an- chorages 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 1978, more than 5.7 million passengers were carried by the jetfoils, hydrofoils and conventional ferries plying this route. A significant development during the year was the introduction, on November 15, of a passenger hoverferry service between Hong Kong and Whampoa in China by the Hong Kong and Yaumati Ferry Company Limited.

For ships calling at Hong Kong, quarantine and immigration facilities are available on a 24-hour basis at the Western Quarantine Anchorage and from 6.30am to 6.00pm 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 undertaken. The Pilotage Authority in Hong Kong is the Director of Marine.

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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, North Point and the Port Communications Centre are all inter-connected by telephone, radio-telephone and teleprinter circuits. The Marine Department operates a con- tinuous VHF radio-telephone port operations service based on international maritime frequencies, which gives comprehensive marine communications throughout the har- bour and its approaches. In May, Marine Department teleprinter facilities were linked directly to users on a world-wide basis. There is also a continuously monitored disaster network that links the Marine Department's Search and Rescue Co-ordination Centre with aircraft of the Royal Hong Kong Auxiliary Air Force and military helicopters, marine police and 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 October, the Director of Marine accepted the final report of a Canadian consultant company on the feasibility of establishing an electronic surveillance system for the port 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 in unusual circumstances. A fleet of 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 waterboats that service vessels at anchor or at government mooring buoys. A harbour telephone service is available at buoys and 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 in beam. Plans 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 were developed during the year. There are three floating dry docks off Tsing Yi, the largest of which has 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, particularly sophisticated pleasure craft and yachts.

Hong Kong is a prominent centre for recruiting seamen. The Seamen's Recruiting Office and the Mercantile Marine Office register and supervise the employment of 22,000 seamen on board 1,400 vessels of all flags. The Hong Kong Merchant Navy Training Board met twice in 1978 and the training needs of local seamen continued to be assessed in order to improve training standards and thereby enhance employment prospects. The board comprises 16 members including representatives of relevant government departments, seamen's training schools, and employer and employee associations. Six specialist sub-committees, each dealing with a separate area in the training of seafarers, met regularly throughout the year. The Mariners' Clubs in

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Kowloon and Kwai Chung continued to provide recreational and welfare facilities of a high standard for visiting seamen of all nationalities.

　　　　　　Legislation enacted during the year which significantly affected the work of the Marine Department included the Shipping and Port Control Bill 1978 and the Merchant Shipping (Amendment) Bill 1977.

　　　　　　The Shipping and Port Control Bill 1978 improved and consolidated those parts of the Merchant Shipping Ordinance and its subsidiary legislation related to shipping and control of ports in Hong Kong. The Merchant Shipping Ordinance had long been considered unsuitable and too restrictive to deal effectively with port administra- tion, the control of local waters and the regulation of local craft. The Merchant Ship- ping Ordinance, which is based on the United Kingdom Merchant Shipping Acts and intended primarily to regulate international shipping, provided insufficient powers to allow the making of subsidiary legislation of broad enough scope to tackle local problems. The Shipping and Port Control Bill 1978 reproduced the existing provisions in the Merchant Shipping Ordinance but in a form which clarified the Director of Marine's powers to co-ordinate the navigation and mooring of vessels; to control shipbreaking, ship repairing and cargo handling activities; and generally to administer the waters of Hong Kong with maximum efficiency.

　　　　　　The Merchant Shipping (Amendment) Bill 1977 amended the Merchant Shipping Ordinance to require the owners of pleasure vessels who use their craft in Hong Kong waters to effect insurance against third party risks.

Transport in Hong Kong

Given Hong Kong's exceptionally crowded conditions, its transport system is remark- ably effective. Urban travel is likely to engender frustrations but nonetheless Hong Kong people, the majority of whom have no private car, generally manage satisfac- torily finding cheap and varied public transport available at most hours of the day and night. Approximately 6.3 million public transport trips are made each day by bus, minibus, ferry, rail, tram and taxi. One of the government's most vital tasks is to maintain and improve the use of public transport for if demand cannot be substan- tially satisfied, more people will turn to private car ownership and the traffic situation will deteriorate.

In Hong Kong, it is essential that transport planning proceeds speedily and effi- ciently to keep pace with the territory's development and the growth of prosperity. Accordingly while new roads, flyovers and tunnels are being built, work continues on the task of finding other imaginative and practical schemes to meet Hong Kong's traffic needs. The community is looking forward to the opening in September, 1979, of the first section of the Mass Transit Railway from Kwun Tong to Shek Kip Mei. Another major project is the modernisation of the British Section of the Kowloon- Canton Railway by electrification, double-tracking and the introduction of new rolling stock operating at increased frequencies.

During 1978, a plan was being examined in detail for a new transport service cover- ing the north shore of Hong Kong Island. A light rail system, capable of development into a full underground line if necessary, has been proposed to replace the current double-deck tram service. This does not mean that Hong Kong will definitely be saying goodbye to its trams. A tram service is one of the options being considered for

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the Exclusive Public Transport Right of Way in Tuen Muen New Town in the New Territories.

　　　　　　Looking into the future, the transport challenges that Hong Kong is likely to face include the planning of a road and transport infrastructure for the proposed develop- ment of North Lantau Island and examination of possible additional cross-harbour facilities.

Roads

The construction of highways proceeded satisfactorily in 1978, with some $358.2 million being spent on major highway projects and $61.4 million on improvements and maintenance. The total length of roads maintained by the Public Works Depart- ment now amounts to 1,110 kilometres, of which 344 kilometres are on Hong Kong Island, 335 kilometres in Kowloon and 431 kilometres in the New Territories.

On Hong Kong Island, good progress was made on the construction of the Ap Lei Chau Bridge and the southern approach road linking Aberdeen to the island of Ap Lei Chau. Work commenced on the Wong Chuk Hang Interchange which will link the south portal of the Aberdeen Tunnel with the road network on the south side of the island. To improve the road link between Aberdeen and Western District, work continued on the construction of the road through Aberdeen by- passing Shek Pai Wan Road as far as the Wholesale Fish Market, the widening of Pok Fu Lam Road between Queen Mary Hospital and Pok Fu Lam Reservoir Road and on the flyover connecting Pok Fu Lam Road and Des Voeux Road West. Garden Road Roundabout and Queensway Flyover were both completed during the year, while construction of the elevated roads and flyovers at the Robinson Road-Old Peak Road-Glenealy junctions was progressing well. These works will greatly improve the flow of traffic from the Mid-levels to Central District.

　　　　　　Construction commenced on a footbridge system along Connaught Road, Central District, and this will provide better pedestrian facilities in the central business area. Good progress continued on the Canal Road Flyover linking the Aberdeen Tunnel to the Cross Harbour Tunnel and other major traffic arteries. Construction of a new North Point Vehicular Ferry Pier to replace the existing pier has started. This work forms part of Stage I of the Hong Kong Island Eastern Corridor, the design of which is well advanced. The corridor, which will be built in four sections as an elevated road around the edge of Victoria Harbour, will provide a direct link between Causeway Bay and Shau Kei Wan. The whole project is scheduled for completion in 1985. The construction of the Wong Nai Chung Gap Road/Stubbs Road Flyover commenced, while a start was made on the detailed design of the Lau Sin Street Flyover in Causeway Bay.

In Kowloon, work continued on the two primary distributor roads on either side of the Kowloon peninsula. The West Kowloon Corridor, which consists of a con- tinuous elevated road, will be completed in four stages; the first stage has already been completed and work is progressing on the second stage. The corridor will extend from Yau Ma Tei to Lai Chi Kok and is programmed for completion in 1984. Work was well advanced on the East Kowloon Way, which forms part of the major traffic route between the Cross Harbour Tunnel and Kwun Tong. It comprises an elevated road from Hung Hom to the west portal of the Airport Tunnel with

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interchanges at Wuhu Street and San Shan Road, a road tunnel under Kai Tak Airport and a dual carriageway with interchanges on the Kowloon Bay reclamation. All works are scheduled for completion in late 1980.

Work also started on the construction of a 600-metre elevated road along Waterloo Road, across the intersection of Cornwall Street and Junction Road. Detailed planning and investigation was carried out for improvements to the Princess Margaret Road Flyover, construction of which is expected to start in 1979. These two works should do much to improve the ever-increasing flow of traffic between Kowloon and the developing areas of the New Territories. To the east, construction of the new portion of Clear Water Bay Road between Ping Shek and Anderson Road was nearing completion. Work was completed on improvements to Castle Peak Road north of Lai Chi Kok, and on the Hoi Bun Road extension and the road in the Kwun Tong cargo handling area.

　　　　　　In the New Territories, the first carriageway of the 17-kilometre trunk road between Tsuen Wan and Tuen Mun opened to traffic in May. Construction of the second three-lane carriageway is under way and the whole project is expected to be completed in 1980. Design was well advanced for the section of the New Territories Trunk Road from Sha Tin to Tai Po and construction is expected to start early in 1979. This section of the trunk road, on completion, will provide a four-lane high capacity road along the west coast of Tai Po Hoi, connecting these two fast-growing towns. Works completed in the New Territories during the year included a flyover across Kwai Chung Road to connect Kwai Fuk Road with Lai King Hill Road; the extension of Kwai Fuk Road to Texaco Road; the improvement of Tai Po Road from the Chinese University of Hong Kong to the causeway level crossing at the 15-milestone; and the construction of the second carriageway of the Lion Rock Tunnel Road from the toll plaza to Siu Lek Yuen Road.

　　　　　　Satisfactory progress was maintained on the widening of Castle Peak Road from Texaco Road to Chai Wan Kok Street; the grade-separated interchange at Castle Peak and Texaco Roads; the widening of Ting Kok Road from Tai Po to Ha Hang; the replacement of the existing bridge at Island House, Tai Po; reconstruction of Cedric Bridge and approach roads at the 16-milestone in Castle Peak Road; and improvements to South Lantau Road between Cheung Sha and Shui Hau. A start was made on the Clear Water Bay Road improvement from Hiram's Highway to Pik Uk; the duplication of the railway bridge at the 174-milestone in Tai Po Road; construction of the superstructure for the Tsuen Wan By-pass Stage I; and the construction of Tai Wo Tsuen Interchange on Castle Peak Road.

Planning and detailed design work continued on the New Territories Trunk Road System from Tai Po to Yuen Long, and on Clear Water Bay Road improvements from Anderson Road to Pik Uk. Consultants have been engaged to investigate a Lantau Island fixed crossing which would link the mainland at Tsuen Wan to Lantau Island via Tsing Yi Island.

Road Tunnels

The Lion Rock Tunnel, which links Kowloon with Sha Tin and other parts of the New Territories, began full two-tube operations in October, 1978. This tunnel was Hong Kong's first road tunnel and opened as a single tube facility under the manage-

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ment of the Transport Department in November, 1967. A second tube was con- structed and came into use on January 18, 1978, when the first tube closed for refur- bishing and the upgrading of equipment. This included increasing the capacity of the ventilation fans, improving the lighting, installing closed circuit television and a new system of traffic control. In addition to this work, the toll plaza was widened to accommodate two more toll booths and the tunnel now has eight booths serving nine toll lanes. In 1978, $9.59 million was collected from the 7.7 million vehicles which used the tunnel. Toll fees vary from $1 to $2. The growth in traffic has averaged 25 per cent over the last three years.

　　　　　The Cross Harbour Tunnel opened in August, 1972, and is operated by the Cross Harbour Tunnel Company, in which the government has a 25 per cent interest. The twin-tube tunnel, constructed at a cost of $320 million, is built on the submerged tube principle. In 1978, $167.2 million in revenue was collected from 27.3 million vehicles which are divided into eight categories and are charged a toll, appropriate to their category, ranging from $2 to $20. Annual traffic growth has averaged 36 per cent since the tunnel opened.

　　　　　The twin tubes of the Airport Tunnel were completed in 1976 and are awaiting the installation of equipment and the completion of road connections. The tunnel, which goes under the runway of Hong Kong International Airport, is scheduled to be opened under Transport Department management in 1980. It will be toll-free. The Airport Tunnel forms part of the East Kowloon Way project connecting the Cross Harbour Tunnel at Hung Hom with the airport and the industrial area of Kwun Tong.

The Aberdeen Tunnel will connect Aberdeen on the south side of Hong Kong Island with Happy Valley to the north and thence, at an elevated level, via the Canal Road Flyover extension to the Cross Harbour Tunnel and the motorway that runs along the waterfront on the north shore of the island. This toll tunnel, a full two- tube four-lane facility, is planned to be opened in 1980. It will be managed by the Transport Department.

Public Transport

　　　　Probably no country can equal the intensity, productivity and diversity of Hong Kong's public transport system. With the exception of trolleybuses, and even these have been suggested, every conceivable mode of transport has developed and survived with a minimum of government regulation and with an absence of state subvention. The comprehensive range of transport services includes some 2,677 franchised buses and coaches of which approximately 2,126 are double-deckers, 4,350 minibuses, some 7,663 taxis, 162 double-deck trams with 22 single-deck trailers, 96 ferry vessels, a funicular cable tramway ascending one of the world's steepest gradients, diesel- hauled trains of the Kowloon-Canton Railway (British Section), an aerial cable-car system, and the Mass Transit Railway currently under construction.

Because of Hong Kong's unique geographical setting and the complex interaction of commerce and industrial activity, all forms of public transport are viable and are operated at a level of efficiency of which many of the world's cities could be envious. The vast majority of the population relies on public transport and demand frequently outstrips supply. Growth in public transport has been virtually uninterrupted since

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the end of World War II, and expansion continues unabated. Indeed, in the congested circumstances of the territory the necessity for public transport priority is recognised, and Hong Kong boasts several ambitious and successful bus-only lane schemes which are intensively utilised. Traffic figures for the various transport modes are detailed in Appendix 36.

Buses

　　　　　Public omnibus services in Hong Kong are operated under government-awarded franchises. There are three franchised bus companies and together they carry an average of 3.1 million passengers a day.

The Kowloon Motor Bus Company (1933) Limited, which operates 178 franchised bus services in Kowloon and the New Territories, is the biggest bus company in Hong Kong. The company carries an average of 2.357 million passengers daily. It has a fleet of 1,804 vehicles which comprise 1,318 double-deck buses, 384 single-deck buses and 102 single-deck coaches. The single-deck buses are mainly used in the rural areas and in the urban areas where the topography does not permit the use of double-deck buses. The largest double-deck vehicles have a carrying capacity of 126 passengers. Fares are charged according to a mileage scale. On urban routes, flat fares of 20, 30, 40 or 50 cents are charged according to route distance while on rural routes the fares range from 20 cents to $1.50. A higher scale of fares applies to coach services. There are 16 express coach routes, including two which serve Hong Kong International Airport. All coach services offer a guaranteed seat, carry 37,183 passengers daily and are intended to serve as an attractive alternative to private transport. The fleet travelled 73.1 million miles in 1978, carrying an average of 1,723 passengers daily per bus in service. An additional 170 vehicles were on order at the end of the year.

The China Motor Bus Company Limited operates 82 bus routes on Hong Kong Island, carrying an average of 697,773 passengers daily. With the exception of a few single-deck buses used for specific purposes, the fleet has now attained a 100 per cent double-deck bus composition; there being 820 such vehicles. All are one-man operated using an exact fare system. Progress continued in increasing the capacity of the fleet and an order has been placed for lengthened versions of a new double- decker which will have a capacity of 150 passengers. The arrival of 72-seater double- deck coaches has also enabled the company to enhance its services by providing an attractive and comfortable alternative to private cars. Fares range from 30 cents to $1.50.

The two companies operate an extensive network of 18 joint services through the Cross Harbour Tunnel under a pooled mileage scheme based on route length. The two companies also provide special services for race meetings at Happy Valley and the new racecourse at Sha Tin.

　　　　　　On Lantau Island, the New Lantao Bus Company (1973) Limited operates five services carrying 6,035 passengers daily. The fleet comprises 53 single-deck buses with seating capacities ranging from 20 to 43. Recreational traffic on Sundays and public holidays is 84 per cent higher than the daily average. As a solution to this 'peak' problem, double-deck buses are to be introduced either late in 1979 or early in 1980.

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The number of public light buses remained at the permitted maximum of 4,350 vehicles at the end of the year. These 14-seater minibuses, introduced in 1969 to replace the former dual-purpose vans, are mostly individually-owned.

　　　　　Minibuses generally ply for hire on some 135 established routes, conveying 1.5 million passengers daily. The normal fares charged range from 30 cents to $1.50 on urban routes and from $1 to $2 on cross-harbour routes and on routes to the New Territories. Fares are increased two to three times the normal fare during rush hours, public holidays and on festival days.

In order to reduce obstruction to traffic caused by the constant kerbside stopping and lane changing of minibuses in the urban areas, a number of prohibited and restricted zones have been introduced. Minibuses are also prohibited from operating on Lantau and Tsing Yi Islands and in the Tsim Sha Tsui district.

　　　　　To avoid wasteful competition with the franchised bus and tram services, which is detrimental to the public transport system as a whole, steps are being taken by government to divert minibuses into a supplementary feeder role in areas unsuitable for conventional buses. Towards the end of the year, 11 additional maxicab routes were introduced on Hong Kong Island bringing to 19 the total number of maxicab services operating at fixed fares and fixed routes on Hong Kong Island. Plans are in hand to progressively introduce another 85 maxicab routes in the urban areas in the near future.

　　　　　Apart from the bus companies and minibuses, there are 1,658 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 exclusively for their residents.

Trams

　　　　Hongkong Tramways Limited operates a tram service on five routes over 30.5 kilometres of track along the northern shore of Hong Kong Island. The service carries an average of 379,877 passengers daily with a fleet of 162 double-deck tram cars and 22 single-deck trailers.

　　　　　A flat fare of 30 cents is charged and all cars are one-man operated, with passengers paying their fares into a fare box on exit.

　　　　　In the middle of 1978, the government announced its intention to develop the existing tramway into a light rail vehicle system in stages and to introduce a fleet of modern, high capacity light rail cars to increase the speed and carrying capacity along this main east-west route. The proposal is subject to a feasibility study which began in mid-1978 and will be completed early in 1979.

　　　　　On Hong Kong Island, the Peak Tramways Company Limited operates a funicular tram service between Garden Road and Victoria Peak - 397 metres above sea level - stopping at five intermediate stations. 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, which began in 1888, is popular with tourists. The two service cars. (a third is used as a maintenance spare) carry 5,399 passengers a day. The full distance fare is $1.50 with $1 charged for shorter journeys.

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The cable car system at Ocean Park, an oceanarium on Hong Kong Island, carried 1.53 million passengers during the year, a decrease of 25 per cent compared with 1977 when it began operating. In full operation the system can carry 5,000 passengers an hour in each direction in 246 cars, which are capable of seating six persons. The cable car traverses a 1.4-kilometre route during its seven-minute journey.

Ferries

　　　　　Hong Kong has a total area of 1,052 square kilometres comprising a mainland area and 236 islands. As many of the islands are populated and some are popular holiday resorts, ferry services play an important role in providing both commuter and recreational transport.

　　　　　　Apart from the two major ferry operators, there are several minor ones. In addi- tion 'walla-wallas' (motor boats) are also available at the public piers on both sides of the harbour. In the New Territories there are supplementary services, known as 'kaitos', which are organised by villagers to meet local demand.

　　　　　　The two major ferry operators are the Hongkong and Yaumati Ferry Company Limited and the Star Ferry Company Limited. With a fleet of 83 vessels, the former provides a network of 39 ferry services consisting of three vehicular services, 14 cross-harbour passenger services and 22 services to outlying districts. The vehicular ferry services carry 9,637 vehicles a day at charges ranging from $1 (motor cycle), $3 (motor car) to $75 (heavy goods vehicles which exceed 11 metres in length). Daily passengers on the 14 cross-harbour services total 307,872. On all except three routes, passengers are carried at a flat fare of 40 cents. The three more expensive routes operate with deluxe class vessels and charge 50 cents or $1 depending on the quality of service offered.

　　　　　　The Star Ferry Company Limited has a fleet of 10 vessels which link Edinburgh Place on Hong Kong Island with Tsim Sha Tsui and Hung Hom in Kowloon. Fares charged on the Edinburgh Place to Tsim Sha Tsui crossing are 30 cents on the upper deck and 20 cents on the lower deck. A flat fare of 50 cents is charged on the service to Hung Hom. The two services carry a total of 148,530 passengers a day with the former contributing 95 per cent of the total. Traffic growth has averaged one per cent over the past three years.

Taxis

There are two types of taxis in Hong Kong. One is licensed to operate in the urban areas including all of Hong Kong Island, Kowloon and the new towns of Tsuen Wan and Sha Tin; the other is for the rural areas of the New Territories. During the year, fares were fixed at $2 for the first 1.6 kilometres and 20 cents for each subsequent fifth or part of that distance. A surcharge of $10 was levied on cross-harbour journeys. By the end of the year there were 6,925 taxis serving the urban districts. The rural areas were served by a fleet of 738 taxis which charged a standard fare of $1 for each 1.6 kilometres.

　　　　　　Following a review of the taxi trade carried out by the Transport Department, the laws relating to taxi malpractices were strengthened and a revision of the fares structure was announced, to be implemented in 1979.

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The Governor in Council is advised by a government-appointed Transport Advisory Committee on the broad issues of transport policy aimed at improving the movement of people and freight. The Commissioner for Transport is the statutory authority responsible for the planning and regulation of all forms of public transport, vehicle registration and licensing, driving tests and licences, vehicle examinations and the administration of government road tunnels and off-street carparks. He also under- takes statutory duties under the Road Traffic Ordinance and subsidiary legislation, and is advised on detailed proposals for transport and traffic arrangements by the Standing Conference on Road Use and the Standing Committee on Waterborne Transport.

During the year, a number of amendments were made to the road traffic regulations including the requirements for the lighting of vehicles, the provision of three-line brakes on trailers, emission control standards, revised road markings and prescribed traffic signs, and the offer for sale by auction of any vehicle registration mark upon request.

Traffic Management and Planning

　　　　Traffic management techniques are applied to make the best use of the existing road network. During the year, schemes for clearways and other restrictions on kerbside activities by certain classes of vehicles were introduced on many of the main traffic

routes.

A comprehensive traffic management scheme was planned for the Causeway Bay area, including the imposition of more stringent control on kerbside activities and re-routing of the side streets to improve the traffic circulation. Preliminary investiga- tions were carried out on possible layouts for a major transport interchange at the Mass Transit Railway's Admiralty Station. Elsewhere work continued on the provision of junction improvements, traffic signals, traffic re-routing and road widen- ing schemes. To aid pedestrians, more footbridges, subways, zebra crossings and light signal crossings were installed.

By the end of the year, 384 sets of traffic signals were in operation and another 2,672 new lamps had been added to the street lighting system. An independent study of the new computer-controlled traffic signal system in west Kowloon was conducted and results indicated that the reduction in the average stopped time of vehicles was approximately 50 per cent and journey times were reduced by nearly 30 per cent. Extension of the system during the year has now resulted in a total of 114 junctions benefiting from such methods of control.

The network of high grade roads is increasing throughout the territory and a system of emergency telephones has been installed to aid stranded motorists. The Highways Office of the Public Works Department conducted a study to consider what surveillance and control measures should be introduced to monitor and control traffic using these roads. Results of the study will be available in early 1979.

In the field of transport planning and surveys, consultants were employed to carry out a study on the development of an integrated public transport system to take into account the introduction of the modified initial system of the Mass Transit Railway and the Kowloon-Canton Railway improvements. A report was published on a

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transport strategy recommended by a joint team of consultants and government staff for the northern shore of Hong Kong Island. A study enabling further in- vestigations and design work for the proposed light rail transit system along the northern shore of Hong Kong Island was also being undertaken. Traffic studies for Tsuen Wan New Town on its internal road network and for Yuen Long on the traffic generation of its two industrial sites were undertaken. Major traffic surveys completed included an interview survey of passengers on board public light buses, to obtain information on travel characteristics, and a 'before' and 'after' survey of experimental public transport reserves on a section of King's Road at North Point. The construction of the Mass Transit Railway continued to make a considerable impact on the busy streets of Hong Kong, with the introduction and change of the many traffic diversions required to suit the progress of the works. In addition, a new system of traffic diversion involving many streets in Sham Shui Po and Mong Kok was introduced during the year to prepare for the commencement of work on the extension of the railway to Tsuen Wan. The planning, co-ordination and implementa- tion of the traffic management schemes necessary to facilitate this ambitious project have been dealt with on an ongoing basis by a special multi-disciplined team, originally set up in 1973. This team includes representatives from the many govern- ment departments which are affected by the construction proposals, and also from the Mass Transit Railway Corporation.

Licensing

During the year, the four vehicle examination centres of the Transport Department carried out 47,007 inspections, mainly in connection with registration and re- licensing of vehicles. Due to limitations in staff and resources, attention was con- centrated on public service vehicles. However, to ensure that vehicles used for the conveyance of dangerous goods are mechanically sound, 10,739 goods vehicles were examined during the year. Vehicles operating within the boundary of the Hong Kong International Airport were also subject to annual inspection, and during the year 2,058 vehicles passed through the Airport Examination Centre.

A large new vehicle examination centre on Kowloon Bay reclamation was nearing completion and, when fully operational in mid-1979, will enable the annual inspec- tion of all goods vehicles.

Inspections are carried out free of charge, but legislation is expected to be enacted whereby fees will be charged on a sliding scale for inspections of different types of vehicles.

The number of registered vehicles continued to rise during 1978, and by the year's end was 233,150 or 12 per cent more than the previous year. The increase in private cars alone was 19,191, which constituted 75 per cent of the overall increase in the number of registered vehicles. Detailed statistics are in Appendix 36. The demand for driving licences was quite high, with the total number of licences held by Hong Kong residents reaching 599,373, compared with 555,715 in the previous year. A new type of Temporary Driving Licence was introduced in April, 1978, permitting holders of certain overseas driving licences to drive in Hong Kong while waiting for driving tests.

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　　　　　　With the introduction in August of a scheme allocating non-scheduled vehicle registration marks through sale by auction, members of the public were able to apply for the registration mark of their choice, if available at the time, to be put up for auction. This scheme met with a favourable response. The registration marks in popular demand were usually those with the combinations of numerals two, three, six and eight; such as 128, 136, 168 and 328.

Parking

Parking facilities are provided by the government in eight multi-storey car parks, with 5,059 parking spaces, and four temporary open-air car parks with 1,070 parking spaces. Two of the four open-air car parks cater specially for commercial vehicles.

　　　　　Parking facilities are also provided by private enterprise in 38 multi-storey and open-air car parks with 9,120 spaces, mostly in the commercial-residential areas of North Point, Tsim Sha Tsui, Mong Kok, San Po Kong and Causeway Bay.

Where no traffic disruption is caused, on-street parking spaces are provided. In areas with limited spaces but where the demand is high, the spaces are metered. There are 10,908 metered spaces of which 1,195 are specially for goods vehicles. Payment is required from 8.00am to midnight. In areas like Wan Chai, Happy Valley, North Point and Tsim Sha Tsui among others, parking is controlled by traffic wardens who, together with the police, operate a fixed penalty system for parking offences.

Kowloon-Canton Railway

In May, the Governor in Council approved in principle the recommendation by a British consultancy firm to electrify the Kowloon-Canton Railway (British Section). Detailed planning for the project was immediately put in hand. Electric multiple units operated by 25kV alternating current supplied from overhead cables will be used. Tenders for the supply of the electric multiple units were invited in August from companies throughout the world and design work was put in hand for a maintenance depot for them. It will be situated next to the existing railway workshops at Ho Tung Lau in Sha Tin. The new electrified service is planned to be commissioned in mid-1981.

　　　　　　Work on double-tracking the main line from Sha Tin to Tai Po Market commenced in March and is expected to be completed in mid-1980. Approval was granted by the government in July to double-track the remaining section of the main line from Tai Po Market to Lo Wu.

　　　　　　The first phase of the installation of the associated colour light signalling system, controlled from a signal control centre at Kowloon Station in Hung Hom, started in January, 1977, and will be completed in March, 1979. The construction of double- tracking and resignalling will enable additional shuttle trains to be operated between Hung Hom and Sha Tin. The specifications for the second and third phases of the system, from Sha Tin to Tai Po Market and from Tai Po Market to Lo Wu respec- tively, were finalised in November and installation work is expected to commence in mid-1979.

　　　　　　The new racecourse loop line was completed in August and the first through train was run early in September. The completion of this loop line, apart from servicing the

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Creating an image

Like many industries in Hong Kong, the advertising business is experiencing a period of rapid expansion. Not only do big corporations recognise that advertising is an integral part of marketing but the smaller, more traditional companies are also applying its techniques to sell their products and services. Advertising has evolved as a highly competitive business with 10 additional international agencies joining the scene in the past five years. Campaigns are created in two languages: Chinese and English. Their message is projected through the territory's numerous publications, radio and cinema, but the main advertising medium is television, which offers a high market penetration. During the year, an important develop- ment was the letting of additional indoor and outdoor advertising space connected with the Mass Transit Railway, which begins partial operations in 1979. Hong Kong's advertising industry is both pro- gressive and professional. Organisations such as the Association of Accredited Advertising Agents of Hong Kong (4As) and the Hong Kong Advertisers Associa- tion (2As) seek to increase standards by organising educational programmes. The 4As works in close association with the Chinese University of Hong Kong where students learn advertising as part of their communications course. The government is Hong Kong's largest advertiser. Public service advertising, channelled through the Information Services Department, covers a host of community-orientated cam- paigns such as road safety, fighting crime, fire prevention, anti-drugs and keeping Hong Kong clean.

Previous page: A montage of illuminated neon signs in Lockhart Road, Wan Chai. Left: Learning about advertising are com- munications students at the Chinese Uni- versity of Hong Kong; the 1978 chairman of the 4As talks to young people study- ing advertising; a creative team discusses concepts.

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　　　　　A familiar sight in Hong Kong are gaily-decorated buses and trams featuring public service and private enterprise advertising. Superimposed on the painted foliage of this 'Country Parks' bus is the slogan 'Respect Your Countryside'.

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Land-Sea-Air Recreation Projects for People in Employment

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Around Hong Kong, eye-catching posters are used to inform people about a wide range of topics.

Ongoing government campaigns during 1978 included fire prevention, keeping Hong Kong clean, career

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Capturing the right mood and ambience, a television producer briefs a group of Cathay Pacific air hostesses during the making of a 30-second commercial for showing in South Korea.

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　　　　　Above: An effervescent song and dance routine by a lively ensemble advertises a brand of soft drink. Below: More than 800 students holding display boards and accompanied by a brass band participated in this French commercial made in Hong Kong.

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　　　　　Promotional aids and give-aways are a popular form of advertising. T-shirts, carry bags, umbrellas and various other gimmicks are used to promote goods, services and organisations.

COMMUNICATIONS AND TRANSPORT

173

new racecourse at Sha Tin, also enabled main line traffic to be diverted for one month, thus facilitating work on a cutting slip at Ho Tung Lau which was carried out in con- junction with the second phase of the double-tracking project. Special trains to service the new racecourse at Sha Tin on race days began running on October 7.

The construction of the new Beacon Hill Tunnel, which will accommodate two railway tracks with lower approach gradients, began in January. When this new tunnel opens in late 1980, the track capacity between Hung Hom and Sha Tin will be further increased and additional trains will run to serve the increasing population in the New Territories.

　　　　　　Re-laying of the track to new improved standards began in January to facilitate the running of faster and heavier trains. This involves the use of heavier 54-kilogram per metre rails with long welded sections resting on concrete sleepers, replacing the tradi- tional 43-kilogram per metre rails on wooden sleepers. The first completed section of re-laid track in Kowloon Tong was put into use in July and the whole project is expected to be completed by the end of 1980.

　　　　　　Remodelling works on Sha Tin Station and Mong Kok Station commenced and it is expected that the new Sha Tin Station will be ready in late 1980, while the new Mong Kok Station will be completed in 1981. Each station will have a concourse above track level, connected to the platforms by escalators and lifts, and development above the station. Planning work for a new station in Kowloon Tong for passenger interchange with the Mass Transit Railway was also in progress. It is expected that construc- tion work will commence in mid-1979 and will be completed at the end of 1980. Further new stations in Tai Wai and Fo Tan were also being planned. Other stations - Kowloon, University, Tai Po Kau, Tai Po Market and Fanling were also being examined, with a view to improving their facilities or completely rebuilding them to cater for standard platform heights and the much increased volume of traffic and frequency of services when electric trains are introduced.

　　　　　　At Sheung Shui Station, interim improvement works commenced in February. They include the construction of a passing loop, an additional platform to the west of the station, raising the height of the existing platform, and a footbridge to link the existing platform and the new platform. The project is expected to be completed early in 1979.

Mass Transit Railway

　　　　　By the end of the year, about 80 per cent of the civil engineering work on the modified initial system of the Mass Transit Railway was complete, while considerable progress had been made on the commissioning and installation of electrical and mechanical equipment.

All the stations and tunnels from Kwun Tong to Shek Kip Mei - about half the length of the 15.6-kilometre modified initial system that will link Central District on Hong Kong Island with Kwun Tong in Kowloon - were structurally complete by the end of the year. This section will open for service in September, 1979, while the rest of line will become operational in March, 1980. In the modified initial system there are 12 stations underground and three overhead.

　　　　　　The railway is being constructed by the Mass Transit Railway Corporation, an independent public statutory body wholly owned by the government.

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COMMUNICATIONS AND TRANSPORT

The total estimated cost of the modified initial system is $5,800 million at prices adjusted for escalation to 1980. Of this sum, about $5,000 million is for contract costs while $800 million covers administration costs, land costs and consultants' fees. The government contribution, in return for equity, will be $800 million.

Much of the finance for the railway is in the form of export credits covering con- struction and equipment contracts placed with overseas companies, with the balance funded by both local and international loans. All debts are expected to be repaid by 1991-2.

Following the government's approval in 1977 of an extension of the modified initial system to Tsuen Wan, tenders were called by the corporation in May, 1978. The first major contracts were awarded in October and work is now under way. The Tsuen Wan extension is 10.5 kilometres long and has 10 stations. The estimated cost, in- cluding escalation to the end of 1982 when the line will become operational, is $4,100 million. It will be financed entirely by loans raised by the corporation.

During the year, the corporation entered into a joint venture with two local property developers to develop the area above Tsuen Wan depot into a commercial - residential complex with flats for 20,000 people. Sales in respect of the other three property de- velopment schemes - above Kowloon Bay depot and Admiralty and Chater stations - began during the year.

Inconvenience arising from the construction of the modified initial system lessened somewhat as civil engineering work moved underground. Close liaison continued to be maintained between the corporation and various government departments con- cerned with the construction of the railway.

　　　　　　In July, the corporation was approached by the government to assist in detailed studies for a light rail system on the north shore of Hong Kong Island to replace the existing tramway, with a view to the corporation developing and operating the system.

The Media

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PEOPLE living in Hong Kong are avid television, film and newspaper consumers. Some 350 copies of newspapers are printed for every 1,000 people, while 90 per cent of Hong Kong homes have one or more television sets. Approximately 65 million cinema tickets were bought during 1978, giving Hong Kong one of the highest per capita cinema attendances in the world.

Hong Kong has a flourishing free press made up of 412 publications. There are two operating commercial television stations broadcasting in Chinese and English that reach an estimated three million viewers a day, and two major radio stations with eight channels in Chinese and English. There are 75 cinemas in existence and the government is planning to introduce new regulations which will enable smaller cinemas to be established in multi-storey buildings.

Press

Newspapers account for 128 of the 412 publications 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 approximately 109 to every 1,000 people.

　　　　　　Hong Kong's newspapers include four English dailies and 112 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. In most cases, the price of newspapers remains below $1.

Periodicals represent a main sector of the press. There are 284 periodicals - 196 Chinese, 61 English and 27 bi-lingual. These magazines cover a wide range of subjects, from specialist technical journals to local entertainment guides.

　　　　　　Several organisations represent and cater for people working in the news media in Hong Kong. The Hong Kong Press Club, which provides social and working facilities for journalists, moved to larger, modern premises at 175 Lockhart Road, Wan Chai, in July. Club amenities for people working in the press, television, radio and other media fields include a bar, a theatrette, conference facilities, pool tables and television. The office of the Hong Kong Journalists' Association (HKJA) is located at the Hong Kong Press Club. The HKJA has a membership of 600 and seeks to raise professional standards by pressing for better training in journalism, as well as counselling its mem- bers in the event of disputes with employers.

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The Foreign Correspondents' Club, Hong Kong, consists of correspondent, jour- nalist and associate members and its professional activities include lectures, news conferences and film shows. Club premises at Sutherland House, Central District, contain bar, restaurant, library and games facilities, and visiting correspondents may use typewriters and office space.

Chinese and English language newspapers are represented by The Newspaper Society of Hong Kong, which has 15 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.

Hong Kong is the base of Southeast Asian operations for many international radio and television networks, newspapers and magazines. International news agencies represented include Reuters, Associated Press, United Press International, Agence France Presse, Kyodo and Jiji Press.

Printing and Publishing

An important printing centre, Hong Kong companies handle work from many parts of the world, particularly Australia, Britain and the United States. The main attraction is that top-quality printing is available at substantial savings compared with other places, and first-class distribution and communication facilities are readily available. In 1978, exports of printed matter amounted to some $310 million, compared with $99 million in 1971.

　　　　　　About one-quarter of Hong Kong's 1,200 printing firms 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 concentrate on wrappings and industrial packaging. The standard of offset printing is high, with printing and illustrative production techniques comparing favourably with other major printing nations. Electronic colour-engraving machines are widely used and colour separation technique is good. Two and four-colour printing machines are used and leading printers have eight-colour rotary and web-offset machines. In the first eight months of 1978, Hong Kong used 52,514 tonnes of newsprint valued at more than $86 million. The other 75 per cent of printing firms use the letterpress method and generally produce small-scale printing, such as letterheads, posters, wrappers and some textbooks.

　　　　　　Many overseas publishers have established offices or regional headquarters in Hong Kong. The Asian editions of Time, Newsweek, and more than half a million copies a month of Reader's Digest are printed in Hong Kong, as well as the regional publications Far Eastern Economic Review, Asiaweek, and The Asian Wall Street Journal.

Television

At December 31, 1978, it was estimated that 860,000 - 90 per cent - of Hong Kong's households possessed one or more television sets. The price of radio and television sets

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　　　　　in Hong Kong is believed to be among the lowest in the world and no licence is required for either.

Hong Kong has two operating enfranchised commercial broadcasting stations - Television Broadcasts Limited and Rediffusion Television Limited, commonly referred to as TVB and RTV. Both stations provide Chinese and English language services. On October 19, 1978, the High Court granted a winding-up order for the territory's third enfranchised television station, Commercial Television Limited (CTV), following a petition filed by former CTV staff.

　　　　　　The provisions of the Television Ordinance are administered by the 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 programme, advertising and technical standards required of the licensees.

The statements and representations made by the television stations in their applica- tion forms for licences are incorporated as terms of their licences. As some changes in the structure of CTV could have been in conflict with its original submission, an inquiry by the Television Advisory Board was ordered by the Governor in Council in December, 1977. Following consideration of the Television Advisory Board's report together with the station's representations, a letter was sent by the government to CTV asking them to revise certain matters affecting the structure of the company. However, on August 22, 1978, CTV of its own volition announced that because of financial difficulties it was ceasing operation and programme transmission closed on that day. Both TVB and RTV maintain large and well-equipped studio and office complexes, using the latest production and transmission techniques. The UHF, 625-line PAL colour system is standard and virtually all transmissions are in colour. TVB and RTV Chinese and English channels broadcast more than 60 hours of programmes each day, reaching an estimated three million viewers. CTV broadcast about 10 hours a day before its closure.

The most popular programmes are the locally-produced Chinese drama and variety series, which often have audiences of more than two million viewers. In particular, the daily contemporary social drama serials have dominated programme ratings with family dynastic stories and a large cast of characters and complex plots. On the variety side viewers may choose from hour-long entertainment spectaculars, often set in out- side locations, to simple studio productions. High viewer ratings are also achieved by news programmes, which provide comprehensive coverage of both local and inter- national events. Imported programmes from many parts of the world are broadcast either in their original language or dubbed into Cantonese.

　　　　　　In addition to its major function as a source of entertainment, good use is also made of television in the field of education. The government Educational Television (ETV), which utilises the transmission facilities of the commercial stations, is watched by 620,000 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, while the programmes are produced in colour by the government station, Radio Television Hong Kong, using film animation, drama and documentary techniques.

　　　　　　Under the terms of the Television Ordinance, all stations are required to provide air-time for government-produced programmes. Other than the topical features and

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public service information messages produced by the Government Information Services Department, the majority of government programmes are produced by the Television Division of Radio Television Hong Kong (RTHK). RTHK produces documentaries, drama series, discussion programmes and public service features. During 1978, four of RTHK's programmes held places in the top 20 ratings chart. These programmes were Below the Lion Rock, Sunny Sha Tin, Police 15, and The Common Sense. RTHK also produces the successful Youth Call and Junior Police Cali programmes.

Two RTHK English programmes running at the end of the year were The Chinese Press and Police Report. Three English programmes, Here in Hong Kong, Tuesday Briefing and Viewpoint were temporarily suspended owing to staff shortages.

Sound Broadcasting

Hong Kong's two sound broadcasting stations are Radio Television Hong Kong (RTHK) and Commercial Radio. RTHK, the government-run station, provides five radio channels and Commercial Radio operates three channels.

　　　　　　RTHK's five channels altogether broadcast more than 600 hours of varied pro- grammes each week. They cover the full information and entertainment spectrum from news and public affairs to popular music shows, in-depth features, drama, light enter- tainment and variety.

During the year, RTHK added Radio 5 to its existing services of two Chinese channels and two English channels. Radio 5 provides a dual language service broad- casting minority interest Chinese programmes during the day, and between 5pm and 2am, a direct relay of the BBC's World Service.

　　　　　　The other four channels continued to build their individual identities; the two FM channels, Radios 2 and 4 developed stereo programming and specialist interest output, while the AM networks, Radios 1 and 3, concentrated on popular programming, news and community affairs.

In July, RTHK celebrated its Golden Jubilee - 50 years of public service broad- casting in Hong Kong. Among the many events to mark the occasion was the unveiling of a commemorative plaque by the Acting Governor. A number of special programmes were also produced to celebrate the event, including a three-hour programme which traced the station's history and reintroduced the voices of past radio personalities. A Jubilee Pop Concert organised by the station featured leading recording stars from the major local companies. A series of dramatised programmes tracing the fall of Hong Kong in World War II also gained general public acclaim.

The year saw a steady increase in the station's community involvement with the reintroduction of outside broadcasts from beaches, an inter-Hong Kong quiz series featuring teams from the government and private enterprise, public performances in playgrounds and parks, more local programmes on music and the arts, and the ever- popular performances by the Lung Cheung Opera Troupe.

Access programmes enjoyed continued support on both Chinese and English radio, and listeners again took advantage of the opportunity to telephone in and seek advice on a variety of subjects from holes in the road to baby care.

Towards the end of the year a start was made on the complete refurbishment of studio facilities, many of which are being re-designed for a one-man operation - a

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　　　　　modern radio concept where the presenter or disc jockey becomes his own sound engineer. Production studios were also modernised with the introduction of a highly sophisticated, computer-controlled mixing console capable of music production to the highest commercial standards.

　　　　　　To complement the technical expansion, additional staff posts were created in all sections to further enrich the quality and quantity of programmes being produced locally.

　　　　　　Commercial Radio operates two Chinese-language channels and one English channel in the AM medium wave band. The first Chinese service features drama, talk-back programmes and Chinese music. The second, which is youth-orientated, broadcasts mainly Cantonese and western popular music with news bulletins at half- hourly intervals. The English channel serves the young English-speaking Chinese and European communities with popular music, and the older members with up-to-the minute news and topical talk-back programmes, as well as special programmes for businessmen.

Commercial Radio's three services extended their outside broadcast coverage of both special events and entertainment during the year. Live broadcasts of sports retained their popularity, especially racing and football on the Chinese channels and golf on the English channel. All services were involved in the promotion of live shows by local and visiting artistes.

　　　　　　The year has seen considerable growth in both advertising revenue and audience, reflecting the return to radio which is being experienced all over the world.

　　　　　　The Ministry of Defence operates a broadcasting service for the British and Gurkha forces stationed in Hong Kong, Kowloon and the New Territories, from studios at Borneo Lines, Sek Kong. The station's brief is to present programmes of entertain- ment, information and education, and to provide a link with home for servicemen, their families and the civilian component.

　　　　　　　The British Forces Broadcasting Service Hong Kong broadcasts for 60 hours a week: 28 hours in Gurkhali, 16 hours in English and 16 hours of early-morning pro- grammes in both languages. Programmes include news from both Nepal and the United Kingdom, popular music of both cultures, requests and a variety of informa- tion programmes. Outside broadcasts cover sporting events, official parades and major displays of the Brigade of Gurkhas and other British military units. The station. operates one AM and two FM transmitters.

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 news media and the public. There are now 19 of these units staffed by information officers.

　　　　　　　The department maintains close relations with the Hong Kong Government Office in London, which it supplies with a daily news round-up.

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News Division

THE MEDIA

The News Division is responsible for channelling to the media all government informa- tion. It is directly linked with all major groups of the news media by its teleprinter and facsimile networks. As news in English is transmitted over the teleprinter network, news in Chinese is sent simultaneously over the facsimile transmitter.

　　　　　　In addition, a daily information bulletin in both Chinese and English is produced. It is distributed to more than 120 newspapers, news agencies, and television and radio stations. Two or three television newsclips on various aspects of government activity are produced each week for showing on Hong Kong's television channels.

　　　　　　The News Division operates an enquiry desk that deals day and night with queries, primarily from journalists, on various aspects of government work. A comprehensive press and reference library is also maintained and is used daily by many local and overseas journalists, as well as by students.

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 are also deployed to key departments directly involved to ensure a comprehensive flow of information.

Publicity Division

The Publicity Division consists of three sub-divisions: publicity and marketing, creative, and editorial and publications. The various services provided 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, and the annual Hong Kong Arts Festival.

The organisation of visits overseas by cultural groups from Hong Kong has become another major activity for the sub-division. A special troupe, the Hong Kong Schools Chinese Dance Team, made a highly successful visit to Canada in the summer to take part in the Commonwealth Arts Festival.

The Creative Sub-division provides specialised publicity services covering many fields of visual presentation, including displays, exhibitions, posters, photographs and film material. Extensive use is made of these services in promoting government cam- paigns, including the production of public message commercials for television. The sub-division is also 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. A series of books under the general title, This is Hong Kong, is being further developed. The aim is to disseminate informa- tion about features of Hong Kong that have not been widely publicised. Two titles in this series have already appeared and others are in production.

A government publications centre provides the public with modern bookshop facilities. Publications produced by the government also are available through a chain

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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 improve relationships between the government and the people. Its main responsibility is to help explain government policies on the one hand, and on the other to reflect public opinion to government departments as expressed in the news media.

　　　　　　The division publishes a daily English tabloid, The Gist, summarising news items and reports on public affairs from Chinese newspapers, and every week produces Opinion, a review of Chinese editorial comment. Both are distributed to senior government officials and copies are available at a moderate charge to the public.

　　　　　　The division draws the attention of government departments to letters published in the correspondence columns of newspapers. In addition, research papers based on newspapers and magazines are prepared to keep the government in touch with important issues of special significance.

Hong Kong residents 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 bi-weekly newspaper in Chinese, the Hong Kong News Digest. The division also produces an English news-sheet, The Week in Hong Kong, to keep people overseas up to date on local events.

　　　　　　The Overseas Public Relations Section, established in 1977, assists visiting journal- ists and film teams, and maintains liaison with news agencies and overseas journalists based in Hong Kong.

Departmental Units

Much progress has been made in establishing departmental units to improve the flow of information to the news media and to promote a closer relationship with the public. There are 16 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, Royal Hong Kong Police Force, Prisons, Public Works, Social Welfare, Transport, and Urban Services. In addition, there is a unit to service the various branches of the Government Secre- tariat, a unit in the Security Branch to co-ordinate news media and publicity activities for anti-narcotics work, and an information officer in the UMELCO Office.

The units serving the Police, Housing, Trade Industry and Customs, and the Urban Services Departments have been expanded to provide a fuller information service. There are plans to expand units in other departments.

　　　　　　　The centralised resources of GIS are available to departmental units, which receive help in arranging press facilities, publicity campaigns, exhibitions and displays, and the production of publications and films.

London Office

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

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sphere of the government. It does this through a private national teleprinter network direct to newspapers, magazines and radio newsrooms; through in-depth news releases sent by mail; and through personal contact with journalists.

　　　　　In 1978, the Information Section was responsible for the planning, at the United Kingdom end, of the tour by the Royal Hong Kong Police Force Band and an accom- panying group of dancers, which included appearances at the Royal Tournament in London and the Edinburgh Military Tattoo.

Film Industry

Following the trend in recent years, the number of cinemas in Hong Kong again declined and at the end of 1978 there were 75 cinemas in operation. A contributing factor to the gradual decline is the scarcity of land in urban areas which has prompted property developers to demolish older cinemas to make way for more profitable multi-purpose high-rise buildings. The government is currently planning to introduce new regulations which will enable smaller cinemas to be established in multi-storey buildings.

　　　　　Cinema-going continued to be a major leisure activity in Hong Kong during the year. Per capita cinema attendances, which are among the highest in the world, in- creased totalling 65 million, compared with 60 million in 1977. The top-grossing films of 1978 included The Contract, Close Encounters of the Third Kind, Follow the Star, Grease, and Drunk Monkey in the Tiger's Eye.

　　　　　Hong Kong is also an important international film-producing centre. During the year, Hong Kong-based companies produced more than 130 films in Mandarin, Can- tonese and English and many were distributed to markets throughout the world.

　　　　　All films intended for public exhibition in Hong Kong must be submitted to the Film Censorship Authority. Censorship standards are drawn from ascertained com- munity views and, during the year, 92 members of the public joined a public advisory group to assist the Panel of Film Censors in reflecting the community's views on levels of acceptability in film entertainment.

The Armed Services

and Auxiliary Services

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THE Royal Navy, the British Army and the Royal Air Force are all represented in Hong Kong under the overall command of the Commander British Forces, Major General Sir Roy Redgrave MC.

The Commander British Forces advises the Governor on matters affecting the security of Hong Kong and is responsible to the Chief of the Defence Staff in London. The Armed Forces are stationed here primarily to assist the government in maintain- ing security and stability and to sustain confidence in the United Kingdom's intention to maintain the British position in Hong Kong.

The size and composition of the garrison, and the contribution Hong Kong makes towards the cost of keeping it here, are 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. The garrison comprises five Royal Navy patrol craft, one United Kingdom and three Gurkha Infantry battalions, two Gurkha engineer squadrons, one Army helicopter squadron equipped with Scout and one Royal Air Force helicopter squadron equipped with Wessex, plus the necessary support elements. The United Kingdom has under- taken to reinforce these forces should the circumstances so dictate.

As part of the Defence Costs Agreement, Victoria Barracks is due to be released to the Hong Kong Government in 1979. Headquarters British Forces will move to a new tower block under construction in HMS Tamar.

The five Royal Navy patrol craft of the Hong Kong Squadron are under the opera- tional control of the Captain-in-Charge, Hong Kong, who commands the naval base HMS Tamar. The Hong Kong Squadron acts in support of the government within the territory's coastal waters, liaising closely with the Marine District of the Royal Hong Kong Police Force and other government departments. It also has a responsibility for search and rescue operations in the South China Sea as far south as a latitude of 15° North and within the Hong Kong flight information region. In recent years the Hong Kong Squadron has been involved in the salvage of two merchant ships and has rescued the crew of a third.

　　　　　　　A small team of clearance divers are based in HMS Tamar. They assist the Royal Hong Kong Police Force in the recovery of drugs and stolen property in addition to routine naval diving tasks. In September, 1977, they were involved in search and salvage operations following the crash of a CL-44 transport aircraft off Waglan Island. A decompression chamber in Tamar is available for diving emergencies.

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THE ARMED SERVICES AND AUXILIARY SERVICES

The Royal Navy employs 265 locally-entered Chinese ratings in various capacities including cooks, stewards, technicians and seamen. Some of the ratings help to man ships in the squadron. A further 700 locally-recruited merchant seamen and store- housemen serve world-wide in 10 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. Also within HMS Tamar a work-force of 60 civilians is employed. Their tasks include clerical work, storekeeping, ship berthing, transport and base

maintenance.

Carrying on a long-standing tradition, the Royal Navy has continued to assist villagers in the rural areas of the Sai Kung and Tolo peninsulas and on nearby islands. This has included the setting up of an electrical generator maintenance scheme whereby periodic checks are made of electrical generating equipment at 14 different locations. A complete overhaul of the generators at Kau Sai and Yim Tin Tsai has been com- pleted, together with on-site maintenance of the generators at Tap Mun fishermen's village, Ap Chau and Tai Long. Renovation of the pier at Pak Lap, diversion of a stream and underpinning of an adjacent building at Lai Chi Wo, repairs to a fresh water pipe line at Tai Long, and the extinguishing of hill fires on Double Island are but a few of the many varied tasks carried out by the Royal Navy in 1978.

Support for youth organisations by the Royal Navy has increased. The Hong Kong Sea School at Stanley and various training ships of the Hong Kong Sea Cadet Corps. receive active sea training with the ships of the Hong Kong Squadron. Visits to the Hong Kong Squadron and HMS Tamar by youth, hospital, and school groups and handicapped people have increased and are very popular. The Royal Navy in Hong Kong has also provided sea transport for the Summer Youth Leadership camps and an instructor at Sai Kung for the Armed Forces Recreation Camps at Cassino Lines during the summer months.

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 Deputy Commander British Forces.

Units stationed in Hong Kong during 1978 were: 1st Battalion the Royal Green Jackets; 1st Battalion of the 2nd, King Edward VII's Own Gurkha Rifles; 2nd Battalion of the 2nd, King Edward VII's Own Gurkha Rifles; 7th Duke of Edinburgh's Own Gurkha Rifles; and 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 Force. 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 regularly carried out in the more inaccessible areas of the New Territories and the outlying islands. Apart from its military activities, the Army has also provided support in the form of emergency fire-fighting units for hill and forest fires.

Approximately 200 separate community relations projects were undertaken by Army units. These included two three-week youth leadership camps based at Erskine Camp in the Sai Kung peninsula for 240 youngsters. In addition, 27 camps were run for District and City District Offices with the aim of introducing young people from

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urban areas to the countryside. Further weekend activities were organised for the youth of Hong Kong and the Queen's Gurkha engineers have undertaken several construc- tion projects, such as building huts for 'Junior Police Call', building the Nim Wan bridge in the New Territories and installing a water tank and plumbing in the Home of Loving Faithfulness.

It is necessary for the Army to devote much time to training if it is to fulfil its roles and maintain the professional standards of the soldier. In Hong Kong a high standard of individual training has been achieved and, as an example, the 2nd Battalion of the 2nd, King Edward VII's Own Gurkha Rifles won the 1978 shooting competition at Bisley in the United Kingdom, an event in which all units of the British Army compete. Rifleman Santabahadur Rai, from the same regiment, won the Queen's Medal as the best shot in the Army. Five of the first 10 places in the competition were taken by Gurkha units from Hong Kong. In addition to developing the individual skills of the soldier, troops are exercised in a wide spectrum of operations ranging from conven- tional warfare to internal security operations in support of the police.

　　　　　　The Royal Air Force formally handed over its station at Kai Tak to the Hong Kong Government on June 30, 1978, having moved to its new base at Sek Kong where it is co-located with the Headquarters of the Gurkha Field Force. No. 28 (Army Co-opera- tion) Squadron, under the direct command of the Commander Royal Air Force (Hong Kong), is equipped with eight Wessex helicopters. The squadron is ideally situated to perform its primary role which is the rapid movement of troops and supplies in support of the Army.

　　　　　　The squadron provides a standby helicopter for search and rescue operations 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, such as the electrification of Sai Kung, by lifting into position heavy items of equipment that would be difficult to handle by other means. They also have a fire-fighting capability using the Sims Rainmaker under- slung water bucket, and have successfully proven its effectiveness in action.

RAF Sek Kong plays its part in various local urban youth activities, ranging from helicopter support for the Summer Youth Programme, notably during the Summer Youth Leadership camps, to its special liaison with the Hong Kong Air Cadet Corps.

　　　　　　The year 1978 has been a full and constructive time for the Services. The closure of RAF Kai Tak and opening of the new RAF station in Sek Kong were completed, and planning for the move of Headquarters British Forces from Victoria Barracks to HMS Tamar has been completed. Garrison units have maintained an intensive programme of training and have achieved a high level of efficiency and operational capability.

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 if called out would come under the Commander British Forces and the appropriate Service com- manders.

The Royal Hong Kong Regiment is a light reconnaissance regiment which operates

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in support of the British Armed Forces in Hong Kong in both internal security and reconnaissance roles. It has approximately 700 volunteers. The regiment consists of four reconnaissance squadrons, a headquarters' squadron and a home guard squadron. There is also a junior leaders' squadron of 135 boys between the ages of 14 and 17 who are trained in youth activities and leadership. On average, volunteers train for two evenings and one weekend a month, with a 15-day annual camp. Whenever possible, volunteers are attached to regular battalions of the British Forces for over- seas training.

The regiment assists government departments during natural disasters and helps the community by actively supporting many organisations and charities.

　　　　　　The Royal Hong Kong Auxiliary Air Force, based at new headquarters near the main runway at Kai Tak airport, has an establishment of 111 volunteers and 54 per- manent staff, enabling it to operate seven days a week and round the clock during an emergency. It operates six aircraft: a twin-engined Britten-Norman Islander, two new Scottish Aviation Bulldog trainers and three Alouette III helicopters.

The main role of the unit is internal security but it provides other flying services. The Britten-Norman Islander is used to assist the Public Works Department in aerial surveys and photography for map making and development planning; in addition it conducts surveillance flights over Hong Kong waters in support of the police and assists with search and rescue operations. The helicopters provide a 24-hour medical evacuation service from remote areas and are also used to convey people on official visits to the more inaccessible parts of Hong Kong. The Bulldog aircraft provide basic and advanced flight training for both auxiliary pilots and Civil Aviation Department air traffic controllers.

　　　　　　With its range of staff and aircraft, the unit is able to provide both civil and military flying services to give Hong Kong an economical and flexible air service.

Civil Aid Services

　　　　　The Civil Aid Services is a disciplined, volunteer service trained to assist the regular emergency services in dealing with natural disasters and other emergencies. Besides its emergency role, the Civil Aid Services also provides assistance in crowd control at large public gatherings and has helped in the organisation of several local Chinese festivals, government publicity campaigns, fund raising drives for charity and sports meetings.

Civil Aid Services volunteers are trained to handle casualties, to conduct search and rescue operations when people are trapped in landslides or collapsed buildings, and to give assistance to people lost or injured in the countryside. Operational duties per- formed during 1978 included forest fire-fighting, country park patrolling, tropical cyclone duty, mountain search and rescue operations, anti-oil pollution duties, clear- ing of blocked roads and the provision of a despatch rider service for government departments.

　　　　　　The adult members of the Civil Aid Services, comprising 2,800 volunteers from all walks of life, are recruited into units based in the areas in which they work or reside. This permits the rapid mobilisation of manpower within a specific area. Members are also more likely to understand the problems in their neighbourhoods and to be familiar with the location of essential emergency facilities. Units have been established in urban

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　　　　　areas in Hong Kong and Kowloon and in Tsuen Wan, Tuen Mun, Yuen Long, Tai Po and Sha Tin in the New Territories.

Volunteers undergo six months' basic training in first aid, rescue work, forest fire- fighting and crowd control duties. After training, they are transferred to operational units where they are required to undertake emergency duties at short notice and in all weather.

　　　　　　The Civil Aid Services has a Cadet Corps which is made up of boys aged between 14 and 18. The main aim of the Cadet Corps is to encourage boys to become useful citizens, to make them aware of their civic duties and responsibilities, and to prepare them for adulthood. These objectives are achieved through training, sports events, expeditions requiring initiative, and operational tasks such as country park patrol- ling, life-saving, mountain rescues, crowd control and assisting in fund raising for charities.

Like their adult colleagues, cadets are recruited from the areas in which they live or study. Cadets are taught basic skills similar to those practised in the adult service as well as camping, trekking, forest conservation, life-saving and mountain craft. More advanced courses for older cadets are held in mechanical engineering, canoe fibre- glassing, welding and allied subjects.

　　　　　　At the age of 18, cadets must leave the Cadet Corps. However they may then join the adult branch of the Civil Aid Services or another auxiliary service if they wish.

Adults and cadets share a 20-hectare base camp used for training exercises and camping expeditions. The camp is situated on a plateau 250 metres above Castle Peak Road at Tsing Lung Tau. It is set in the countryside and includes the derelict village of Yuen Tun which has been partially renovated by the adults and cadets themselves. A centre for water-based activities is being planned at Tai Tan in the Sai Kung peninsula.

Auxiliary Medical Service

The Auxiliary Medical Service has a membership of 5,500 volunteers drawn from all walks of life, including the medical and nursing professions. The Director of Medical and Health Services is the unit controller of the service. Non-professional members are trained in first aid, nursing, casualty handling, and life-saving. Practical training involves sessions in hospital wards, casualty departments and clinics.

In the event of an emergency, the Auxiliary Medical Service may be mobilised to augment the Medical and Health Services and the ambulance service in treating the injured on the spot, conveying casualties to hospitals and caring for patients in hospitals. It may also be called upon to provide mobile first aid parties to work in conjunction with the emergency services to save lives.

On Sundays and public holidays, members are deployed to assist the Fire Services Department in operating the ambulance service. During the summer months, the Auxiliary Medical Service provides trained life-guards to assist the Urban Services Department at public beaches and swimming pools. Members also man first aid posts at major public functions. Throughout the year, members are deployed for duty in methadone detoxification evening centres and methadone maintenance day centres. The permanent staff of the Auxiliary Medical Service undertakes the training of government officers in first aid.

Religion and Custom

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WHILE at least seven major religions are represented in Hong Kong, Buddhism and Taoism have, by far, the greatest number of followers. The territory has more than 600 Buddhist and Taoist temples which are crowded at festivals and on the first and 15th days of the lunar month. Some of the temples are old and contain priceless antiques; others are splendid new temples built along traditional Chinese architectural lines.

　　　　　　Other major religions represented in Hong Kong include Christianity, Islam, Hinduism, Judaism and Sikhism.

Buddhism and Taoism

The religious practices of Buddhism and Taoism continue to thrive in Hong Kong. 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. Those at Sha Tin and Tsuen Wan are popular with people living on Hong Kong Island and in Kowloon 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 beautiful view of the sunrise, and many visitors go there at weekends and on holidays. Sightseers and devotees are also attracted to Tsing Shan Monastery 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 the city dwellers. Various Buddhist institutions hold gatherings where the sutras are expounded.

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 occasionally two - it is usual to find the images of many deities in the same temple.

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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 being the one at Fat Tong Mun in Joss House Bay which is visited by thousands of worshippers during the Tin Hau Festival. As a result of reclamation, many of the Tin Hau temples which were originally built by the sea are now some distance inland.

　　　　　　　Other leading deities include Kwun Yum, the Buddhist Goddess of Mercy; Kwan 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 honour of Wong Tai Sin, around which a public housing estate has been constructed, is extremely popular. Dedicated to the Gods of Literary Attain- ment and Martial Valour, the Man Mo Temple in Hollywood Road, run by the Tung Wah Group of Hospitals, one of the largest and oldest of local charitable organisa- tions, is equally popular and famous.

　　　　　　　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 ven- erated. The hall is the centre of both religious and secular activities among villagers of the same clan. Animism is found in the form of shrines or simply joss sticks at the foot of certain rocks and trees within which spirits are believed to dwell. It is especially common among Hakka villagers.

　　　　　　　There are five major festivals in the Chinese calendar. The first and most important is the Lunar New Year. Gifts and visits are exchanged among friends and relatives, and children receive 'lucky money'. During the Ching Ming Festival in spring, ancestral graves are visited. The Dragon Boat Festival in summer is celebrated on the fifth day of the fifth moon with dragon boat races and by eating cooked rice wrapped 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. The ninth day of the ninth moon is the Chung Yeung Festival, when large crowds climb various hills in remem- brance of an ancient Chinese family's escape from plague and death by fleeing to the top of a high mountain. Family graves are also visited on that day.

Christian Community

The total Christian community - Protestant and Roman Catholic - is estimated at about 10 per cent of the population. Of this number, the Roman Catholic Church makes up more than half while the remainder are Protestant.

Roman Catholic

The Catholic Church was officially set up in Hong Kong when 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

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Wellington and Pottinger Streets. He established a seminary for training Chinese priests and persuaded religious sisters to come to Hong Kong to start schools and creches and to carry out welfare work.

In 1867, the Pontifical Institute of the Foreign Missions of Milan took charge of the Prefecture, with Monsignor T. Raimondi as Prefect - later becoming Bishop. This institute remained responsible for the Church in Hong Kong for 102 years. In 1969, responsibility was transferred to the Diocesan clergy, with Bishop Francis Chen-peng Hsu as the first Chinese Bishop of the Roman Catholic Diocese of Hong Kong.

Bishop Hsu died in 1973 at the age of 52. He was succeeded by Bishop Peter Wang-kei Lei who died the following year, aged 51. The third Chinese Bishop of Hong Kong, Bishop John Baptist Cheng-chung Wu, was consecrated 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, three homes for the aged, two homes for the blind, and many self-help clubs and associations.

Roman Catholics in Hong Kong number about 256,000. They are served by 332 priests (123 Chinese and 209 of other nationalities), 111 Brothers (49 Chinese and 62 of other nationalities) and 781 Sisters (470 Chinese and 311 of other nationalities) belonging to 23 different religious congregations. There are 54 parishes with resident priests. Services are in Chinese, with a few churches providing some services in English. At St Joseph's Church, on Hong Kong Island, all services are in English.

　　　　　　In recent years there has been greater involvement of the laity in all matters. In order to promote better co-ordination between various groups, they are organised under a body called the Central Council of the Catholic Laity which includes such bodies as the long-established Society of St Vincent de Paul, the widely-spread Legion of Mary which has units of its organisation in nearly every parish, and such professional groups as the Catholic Doctors Guild and the Catholic Nurses Guild. A variety of youth organisations such as the Catholic Students Press Group, the Christian Life Com- munities, and many others are co-ordinated under the Catholic Youth Council, a parallel organisation to the Central Council of the Catholic Laity.

Protestant

The Protestant community is made up of almost 50 denominations and independent groups. There are the familiar major denominations such as Adventist, Anglican, Alliance, Baptist, Lutheran, Methodist, Salvation Army and Pentecostal. The Church of Christ in China represents the Presbyterian and Congregational traditions.

These churches are responsible for more than 250 primary schools, about 130 middle schools, and two post-secondary colleges. The training of church leaders is carried out by several seminaries and Bible schools.

　　　　　　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

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the handicapped, hospitals, community health programmes and scholarship aid for college students.

　　　　　　The oldest co-operative Protestant grouping of churches is the Hong Kong Chinese Christian Churches Union. It is made up of some 200 individual congregations as members. Its departments are evangelism, Christian education, charities, cemeteries and information.

The Hong Kong Christian Council is a council of major denominations together with organisations such as the Young Women's Christian Association, the Young Men's Christian Association, the Bible Society and the Chinese Christian Literature Council. It is committed to building a closer relationship among churches in Hong Kong as well as with churches overseas. This is achieved through several operational bodies including the Hong Kong Christian Service, the Communications Department, the Industrial Committee, and the United Christian Medical Service.

　　　　　　The year 1978 saw a growing role for Hong Kong's Protestant churchmen in inter- national religious affairs. During the year, a Lutheran pastor was elected vice-president of the Lutheran World Federation, and the former General Secretary of the Hong Kong Christian Council, a Methodist minister, was called to a staff position with the World Council of Churches. During 1977 a Baptist layman was elected president of the Baptist World Alliance. Other Hong Kong leaders serving in world organisations include the General Secretary of the Hong Kong Bible Society, a layman of the Church of Christ in China who is a member of the World Association for Christian Com- munication's Central Committee; and a Church of Christ in China woman pastor who is serving with the Education Department of the United Church Council for World Mission in England.

　　　　　　Increasingly, Hong Kong is serving as the venue for regional and world Christian meetings. It also serves as a base for regional offices. In 1978 a Chinese Co-ordination Centre of World Evangelism was set up as a direct outgrowth of a Chinese Congress of Evangelism held here a few years ago. The United Bible Societies also made Hong Kong the site of their regional office.

　　　　　　Locally, the churches are making a renewed emphasis on the training of laymen for leadership in the church. There is also a common effort at evangelism. During the year, one of the ways this was shown was in the form of the 'Here's Life, Hong Kong' campaign.

　　　　　　The Anglican Church in Hong Kong, which in 1971 took the historic step of ordain- ing and recognising the world's first two Anglican women priests, elected and consec- rated a Chinese Bishop in Hong Kong in 1978.

The ecumenical movement flourishes in Hong Kong. In 1978, in addition to the annual observance of the Week of Prayer for Christian Unity, there were two joint pastoral letters issued over the signatures of the Anglican and Roman Catholic Bishops and the General Secretary of the Hong Kong Christian Council. The two letters were issued as calls for the observance of World Peace Sunday and World Communications Sunday. The World Communications Sunday pastoral letter was a natural outgrowth of the fact that all religious programmes broadcast locally are planned and produced together throughout the year. There is no effort to promote any one Christian denomination.

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The Muslim community numbers about 30,000 followers of Islam. The majority are Chinese, with the rest from Pakistan, India, Malaysia, Indonesia and the Middle East. During 1978 they gathered 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 was due for demolition by December, 1978, to make way for the Aberdeen tunnel project. However, the government has made available a site in Oi Kwan Road, Morrison Hill, 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 Nathan Road Mosque in Kowloon was built in 1896 for use by Muslim soldiers of the former Indian Army and was subsequently handed over to the local Muslim community. It is planned to replace this mosque with a beautiful new mosque.

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 representa- tives of the various sections of the Muslim community, is responsible for the manage- ment and maintenance of mosques and cemeteries. The trustees also are responsible for organising the celebration of Muslim festivals and other religious events. Charit- able work among the Muslim community, including financial aid for the needy, hospitalisation and assisted education, is conducted through a welfare committee working in close liaison with 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 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 Force 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

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and last Guru) and Baisakhi (the birthday of all Sikhs). During these celebrations, all those attending take part in community feasts prepared and served by members of the congregation. The temple also runs a special kindergarten class to prepare children for entry into Hong Kong primary schools.

　　　　　　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 1978 saw an unprecedented demand for a diversity of leisure activities, rang- ing from outdoor recreation and sports to cultural events and entertainment. In a bid to satisfy this demand organisations such as the Urban Council, with its manifold interests in recreation and the arts, the Recreation and Sport Service and the Central Co-ordinating Committee for Youth Recreation extended their activities, organising thousands of events and providing facilities. Voluntary organisations also played their part in promoting recreational pursuits.

On the international sports scene, Hong Kong distinguished itself by winning six gold medals for lawn bowls at the Commonwealth Games in Canada, and two silver and three bronze medals at the Asian Games in Bangkok. A Hong Kong rowing team captured a gold medal at the Nottingham International Regatta in the United Kingdom.

　　　　　　The year was one of achievement for Hong Kong's cultural life. The new Music Administrator's Office made substantial progress in introducing serious music to young people and the Hong Kong Arts Centre established itself as an important cultural centre. At the City Hall and throughout Hong Kong, the Urban Council continued to present a wealth of artistic talent while the sixth Hong Kong Arts Festival highlighted the fact that the festival is now recognised as a major event in the inter- national cultural calendar.

The Countryside

Thousands of people of all ages hike across the hills and through the wooded valleys of Hong Kong every weekend. To cater for the increasing number of people who spend their leisure time outdoors, provision was made in early 1976 for the more important areas of countryside to be designated as country parks under the Country Parks Ordinance. The objective is to continue to open up more areas of countryside for the enjoyment of all while, at the same time, ensuring that both the countryside and wildlife are cared for and preserved.

Under the ordinance, the Director of Agriculture and Fisheries is the Country Parks Authority and is responsible for the management of the country parks. Some 15 country parks covering an area of 360 square kilometres have been designated since the ordinance came into effect, and each park has its own set of management buildings and staff. During 1978, some four million people visited Hong Kong's country parks. Facilities provided at the parks include picnic sites with tables and benches, litter bins, children's play apparatus, and fireplaces for barbecues wherever it is safe.

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　　　　　Footpaths are being improved and waymarked and there are nature trails with guide- books for people who take their outings seriously. The Agriculture and Fisheries Department takes measures to safeguard the countryside against fire - often caused by careless visitors and it is responsible for landscape rehabilitation and the pro- tection of flora and fauna.

Urban Council

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The Urban Council plays a vital role in community life and it has considerable experience in managing parks, playgrounds, swimming pools and beaches, and organising sport and entertainment. One of the council's major objectives is to acquire as much open space as possible for recreational use by the people of Hong Kong. Among the many Urban Council projects proceeding are a new sports stadium at Ho Man Tin; additional new grass and artificial turf football pitches; a recreation centre on the Wan Chai reclamation; a tennis complex at Wong Nai Chung Gap; boating facilities at the Wong Nai Chung Reservoir Park; for Kowloon Park Stage II, a classical Chinese garden, aviary, music bowl and landscaped rest garden; and Chater Garden, a landscaped area on the site of the old Hong Kong Cricket Club in Central District.

　　　　　　For basketball, badminton, volleyball and gymnastics, more sophisticated indoor facilities are being built to improve standards of performance. Eight more multi- purpose indoor games halls are planned to supplement the four existing ones at Kai Tak East, Cheung Sha Wan, Morse Park, Kowloon, and Boundary Street, Kowloon. A new games hall being built at Aberdeen is expected to be fully operational by early 1979.

　　　　　　Facilities for athletics, which comprise two stadia, three sports complexes and five running tracks, also are increasing. The Wan Chai Sportsground, with sophisticated electronic timing equipment and an international standard running track, will open for public use in 1979.

　　　　　　The Urban Council's annual sports and recreation promotion programme, which began in 1973 with a modest budget of $200,000, was provided with $2 million in 1978 to cover 3,000 events, involving some 80 sports and other recreational activities.

　　　　　　The events were presented with the co-operation of the governing sports bodies, the Education Department, the Recreation and Sport Service, and prominent community organisations. They helped to improve standards and afforded healthy activities for more than one million people a 50 per cent increase over 1977.

　　　　　　　During 1978, the Urban Council also organised a total of 944 free entertainment programmes throughout the urban area and the New Territories. Events included variety shows, concerts, Cantonese operas, puppet shows, roller skating displays, film shows, musical comedies and youth dances. More than 800,000 people were enter- tained at these events which were presented in parks, playgrounds, recreational and community centres, and school halls.

Swimming

　　　　　Swimming is Hong Kong's most popular summer recreation. Large crowds flock to the seaside during the hot weather and many people remain on beaches throughout the night, creating extra problems for beach management and cleansing staff.

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　　　　　　There are 40 gazetted beaches. These comprise 12 beaches on Hong Kong Island under Urban Council control and 28 in the New Territories, managed by the Urban Services Department. The beaches have life-guards and other facilities. The Urban Services Department also manages nine swimming pool complexes in the urban areas for the Urban Council, and two in the New Territories including one in Fanling, which was completed in September. It is estimated that during the swimming season the total number of people visiting beaches was 24 million, with four million attending the swimming pool complexes.

Thirteen new swimming pool complexes are being planned - three on Hong Kong Island, six in Kowloon, and four in the New Territories.

Recreation and Sport Service

As the Recreation and Sport Service of the Education Department moved into its fourth year of operations in 1978, an ever-increasing demand from the public for recreational activities was its most pressing problem. The service has had to use considerable ingenuity in finding venues and facilities which it can use for events.

A measure of the problem becomes apparent when participation figures are com- pared: 300,000 participants in organised events in 1977 and 400,000 participants in 1978. Nearly all events were over-subscribed and the present concern is that the demand cannot be satisfied. This is compounded by the fact that more leisure time is available in Hong Kong as a result of a shorter working week, statutory paid public holidays and seven days' paid annual leave for all employees covered by the Employ- ment Ordinance which was introduced in January, 1978.

Since people in employment constituted approximately 75 per cent of the total applicants for Recreation and Sport Service programmes during the year, a concerted effort was made to plan and execute programmes to suit their needs. One to four-day holidays were planned so that workers could ride, fish, camp, canoe, roller-skate, enjoy an excursion on an adventure ship and even ride in a helicopter. Outdoor activities are preferred by many workers, and greater numbers can be accommodated in camps and outdoors than in organised sports courses or competitive events requiring more sophisticated facilities.

To alleviate a shortage of indoor facilities, the top three floors of Hung Hom Car Park were successfully converted into a sports centre run by the service. Amenities include a room equipped with modern exercise equipment, an indoor archery range, a lawn bowls strip and areas for badminton, dancing and boxing. Training, coaching and practice facilities are in demand and the service is actively considering developing more areas for community use under flyovers and in any other available space.

Much has been accomplished through the work of the Recreation and Sport Service, the Urban Council and Urban Services Department, and various sports associations to further the government's overall policy objective in the recreation field. This is to encourage widespread participation in recreational pursuits and to ensure that adequate facilities are provided, properly managed and maintained. The aim is to provide facilities and services within easy reach of main centres, free or at minimal charge, and to enable activities to be undertaken by people in as safe an environment as possible.

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The tenth Summer Youth Programme, which was officially opened by the Governor on June 18, 1978, was another successful venture with more than two million partici- pants.

As in the past nine years, the overall planning was undertaken by the Central Co-ordinating Committee for Youth Recreation. Under its umbrella, various govern- ment and non-government bodies, assisted by more than 50,000 volunteers, organised no less than 8,000 events at a cost of about $4.5 million a small price to pay for healthy and meaningful activities, both indoors and outdoors.

The 1978 programme was interesting and varied. While giving young people a chance to enjoy themselves in recreational activities, the programme also included demanding and challenging schemes which were aimed at widening the participants' knowledge, increasing their potential, stimulating other interests, and training their characters. Likewise, the training and community service programmes aimed at the development of social consciousness. Although most of the participants were students, many activities were arranged in the evenings and at weekends to cater for as many young workers as possible.

　　　　　　　The funds for the 1978 programme came from various sources. They included a donation of $1.76 million from the Royal Hong Kong Jockey Club, government sub- ventions, Urban Council funds, local contributions and fees collected from some events.

Chinese New Year Programme

The Central Co-ordinating Committee for Youth Recreation also co-ordinated a programme of recreational and entertainment activities during Chinese New Year in February, aimed at young workers and their families. The first co-ordinated pro- gramme of its type, it proved to be sufficiently successful for more activities to be organised for 1979. The programme indicated a general preference for camps, outings and youth dances.

Outward Bound School

The Outward Bound School in Tai Mong Tsai, Sai Kung, was increasingly popular in 1978 as it continued to offer a diversity of activities. During the year, one of its major functions - the support of the government's Recreation and Sport Service - was reviewed and the result is the school will concentrate on more specialised training courses for sports instructors and leaders.

In 1978, the government's designation of two country parks in the Sai Kung peninsula meant the school had to forgo its wilderness training area. As a result, the Outward Bound programme has incorporated more sea-based activities and reduced its standard courses to 18 days. The school already operates more than 60 canoes and it is building up a fleet of sail boats. Late in the year, the school was exploring the possibility of substituting a large sail training ship for its Outward Bound programme. The Outward Bound Trust began raising funds to provide a sail training ship of some 40 metres in length which will go to sea for 16-day periods, carrying 36 young people. Substantial achievements have been made in the training of physically-handicapped children and adults. The school expanded its programmes to include the handicapped

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and able-bodied on the same courses. In addition, special programmes have been devised for mentally-handicapped and maladjusted children.

The Outward Bound School still functions as an important centre for outdoor recreational training and continues to offer special courses for senior executives, businessmen and families.

Hong Kong Youth Hostels Association

The Hong Kong Youth Hostels Association is a private organisation that provides leisure opportunities for young people aged between 15 and 25 years. It is based upon the patterns established in other countries by member organisations of the Inter- national Youth Hostels Federation.

Membership increased at a satisfactory rate during 1978 and so did facilities avail- able. A hostel at Ngong Ping, near Po Lin Monastery on Lantau Island, was opened in May and the first custom-built hostel, Bradbury Hall at Chek Keng on the eastern arm of Long Harbour, became fully operational. These developments bring the number of available hostels to six: the other four being Wayfoong Hall at Plover Cove; Sze Lok Yuen on Tai Mo Shan; Pak Sha O Hostel; and Cambrai Lodge at Nim Wan.

Plans for the development of other sites are being pursued. Problems do exist however in relation to buildings. An attractive site for hostelling purposes is usually in a remote area and it is difficult to find contractors willing to undertake small jobs in out-of-the-way places. In an endeavour to overcome this problem, the association is partaking in an experiment for the production of prefabricated units in glass rein- forced concrete which, if successful, will greatly speed up the provision of additional hostels.

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.

　　　　　To help remedy the situation, the Jubilee Sports Centre is being built at Sha Tin on land reclaimed by the Royal Hong Kong Jockey Club (RHKJC) at a cost of $25 million. This expenditure is being matched by the government with a further $25 million going towards construction costs. Additional funds have come from the proceeds of the Queen's Silver Jubilee Fund, which the RHKJC is matching on a dollar-for-dollar basis. Thereafter, the centre is to be developed jointly by the govern- ment 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 sportswomen 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.

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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 conditions 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. In addition to the Jubilee Sports Centre, two stadia of international standard - the Hung Hom Stadium and the Queen Elizabeth Stadium - are being built by the govern- ment to provide facilities for more sporting competitions.

During 1978, Hong Kong teams took part in a number of overseas sporting events, including the Commonwealth Games in Edmonton, Canada, and the Asian Games in Bangkok. The most notable achievement was the winning of six out of seven gold medals for lawn bowls at the Commonwealth Games. At the Asian Games, Hong Kong won two silver and three bronze medals. Earlier in the year, a Hong Kong rowing team toured the United Kingdom and took part in several regattas, winning a gold medal at the Nottingham International Regatta. A motorcycle team did well in the Second Guam International Motorcycle Races and in the Third Philippines International Flat Track and Motorcross Championships, finishing in the top three in both events. A hopeful sign for the future came when a junior tennis team com- prising three boys and one girl competed in an eight-tournament tour of Canada and the United States and returned to Hong Kong with a total of 22 titles.

Ocean Park

In its second year of operation, Ocean Park continued to be a favourite location for family outings. The reputation of this amenity - the largest oceanarium in the world - has spread and during 1978 tourists accounted for a small but increasingly important proportion of the total attendance. This has numbered up to 25,000 visitors on public holidays with an average of 8,000 visitors on weekdays. Since its opening in January, 1977, more than five million people have entered Ocean Park, many of them on repeat visits.

　　　　　　Ocean Park was developed by the Royal Hong Kong Jockey Club on 68 hectares of land provided as a free grant by the government.

　　　　　　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; 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 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 sealions. The Atoll Reef, a giant aquarium also designed to simulate natural conditions, allows visitors to view 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.

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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. Many special events are held here throughout the year, including an annual flower festival which centres on artistic displays of chrysanthemums.

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

Hong Kong Arts Centre

The Hong Kong Arts Centre, which was officially opened by the Governor in October, 1977, has since established itself as a major cultural centre. During its first 12 months, there were no less than 1,040 separate presentations in the Arts Centre's three audi- toria. This is in addition to 1,256 rehearsals, classes, workshops and practice sessions and represents a considerable achievement for an enterprise which operates without subsidy from public funds.

　　　　　　The Arts Centre is concerned with the education and encouragement of community activities and does not measure success in terms of individual events. However it has enjoyed artistic highlights. These include performances by the visiting Oxford Playhouse Company with four plays in repertoire; a superbly presented and docu- mented calligraphy exhibition; the Bunraku Puppets, Gagaku Court Music, and Suwa Drummers, all from Japan; a retrospective season of early Chinese films; the Amadeus Quartet with Fou T'song; Peking and Cantonese opera; a visit by artistes from the People's Republic of China Performing Arts Group; and the debut of the Hong Kong Modern Dance Theatre.

Since its opening, the Arts Centre has helped provide opportunities for people who wish to practise the arts and broaden their experience. In terms of facilities alone, the Arts Centre has created since its inception a rehearsal hall for dance and ballet, a record library, two music practice rooms, a photographic studio and darkrooms, a reference library, and an art and crafts studio. Not all activities take place under the Arts Centre's management. Six of the centre's 19 floors are occupied by cultural and educational organisations such as the Goethe Institute, Composers' and Authors' Society, Institute of International Education, Tom Lee Music Foundation, Studio One Film Society, Music Administrator's Office, Hong Kong Photographic Society and the Hong Kong Conservatory of Music.

Music Administrator's Office

　　　　　To plan and provide music training and activities for young people, the Music Administrator's Office was established in September, 1977. In December, 1977, the office, which is part of the Education Department, moved to its permanent accom- modation at the Hong Kong Arts Centre.

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Response to the different training programmes offered by the office has been excellent. More than 100,000 students and young people took part in the 'Music for the Millions' concerts organised to introduce serious music to the young.

　　　　　　Two youth symphony orchestras, two youth Chinese orchestras and one youth symphonic wind band have been formed and they have given public performances at the City Hall, Academic Community Hall of the Hong Kong Baptist College, and the Hong Kong Polytechnic. These orchestras rehearse once a week. In addition, music camps are held during school holidays.

August, 1978, saw the visit of the County of Avon Schools Orchestra from the United Kingdom as part of Hong Kong's first international youth music exchange programme organised by the Music Administrator's Office. During their visit, public concerts were given at City Hall and the Academic Community Hall, and outdoor promenade concerts were staged at the Hong Kong Polytechnic and Ocean Park. At the Academic Community Hall concert, 500 school children took part in a joint performance with the visiting orchestra. The promenade concert at the Hong Kong Polytechnic witnessed a colourful quadraphonic performance by the County of Avon Schools Orchestra, the Hong Kong Youth Symphony Orchestra and school bands. Instrumental music training classes catering for 1,500 primary and 1,000 secondary students commenced in September, 1978. These classes are held either at the Music Administrator's Office or at schools. The 2,500 trainees were selected on the basis of aural tests specially designed to test the aptitude of students aspiring to undertake instrumental music training.

　　　　　　For the very talented, overseas training schemes were introduced in early 1978. The first was for six young students; the second for seven instructors of the Music Administrator's Office.

Hong Kong Conservatory of Music

The year 1978 saw further steps being taken towards the establishment of a conser- vatory of music. Using a grant from the Governor's Special Fund, the conservatory was able to fit out its premises in the Hong Kong Arts Centre and commence opera- tions on a small scale late in 1978. Its establishment will undoubtedly raise the standards of musical teaching and performance in Hong Kong in the future.

Hong Kong Philharmonic Orchestra

Since 1973, when the Hong Kong Philharmonic Orchestra took on professional status under the auspices of the Urban Council, its musical stature in Hong Kong and abroad has grown rapidly.

In its fifth season the orchestra, with 70 full-time musicians, offered a wide variety of concerts. It played to a predominately young audience, giving concerts in the City Hall, the Academic Community Hall of the Hong Kong Baptist College, and at many schools and colleges.

　　　　　　The orchestra's repertoire includes programmes especially tailored for students and young people, the regular concert-goer and those interested in popular classical music. Matinees, chamber music performances, recitals, opera and regular orchestral concerts are all included. As the Philharmonic is being recognised abroad, it is attracting appearances from distinguished soloists and guest conductors. These have included

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violinist Christian Ferras, cellist Pierre Fournier and guest conductors, Henry Shek, Alun Francis, Michi Inoue and Choo Hoey. The orchestra also presents a platform for talented young soloists and composers from Hong Kong.

More than half the budget for the orchestra's 1978-9 season was met by the Urban Council and the remainder was funded by the government and the private sector.

Indicative of the progress being made by the Hong Kong Philharmonic Orchestra was the cutting of its first record Chinese Orchestral Works including The Butterfly Lovers' Violin Concerto. Sales surpassed all expectations. Another development during 1978 was the secondment abroad of a number of contracted Hong Kong Philharmonic musicians to take advanced studies.

City Hall

―

One of the most ambitious cultural centres in Southeast Asia, the City Hall stands at the centre of Hong Kong's artistic life. Opened in 1962, the City Hall's two buildings - the High and Low Blocks house a 1,500-seat concert hall; a 470-seat theatre; an intimate new recital hall for 116 people; two exhibition halls; lecture and conference rooms; two restaurants and two bars; the Hong Kong Museum of Art and four floors of libraries.

　　　　　　In 1978 the Urban Council, which administers City Hall, presented 64 overseas artistes and groups, some of whom appeared with the generous assistance of various consulates and cultural organisations, such as the United States International Com- munication Agency, the Goethe Institute and Alliance Française. Among the inter- nationally-acclaimed artistes who performed were cellists Pierre Fournier, Jonathan Williams and Markus Stocker; pianist Gyorgy Sandor; violinists Gil Morgenstern and Christian Ferras; the Eastman Wind Ensemble; the Philarte Quartet; the Israel Philharmonic Orchestra; the Stuttgart Ballet Company; the Cleveland Orchestra; guitarist Julian Byzantine; the Mozarteum Orchestra; the NDR Symphony Orchestra and the Dublin Festival Theatre Company.

The Urban Council takes an active interest in promoting local artistic talent. During the year, the Urban Council promoted Hong Kong artistes in 12 dance presentations; 25 Chinese and Western opera performances; 22 instrumental recitals; 16 vocal recitals and other activities. The Hong Kong Philharmonic Orchestra, in its fifth professional season, performed more than 70 concerts under its principal con- ductor and musical director, Hans Günther Mommer. Twenty concerts were given by the Hong Kong Chinese Orchestra under the baton of Ng Tai-kong and other guest conductors. The Hong Kong Chinese Orchestra was established in 1977. For its second professional season the Hong Kong Repertory Theatre, which produces both Chinese and Western plays in Cantonese, signed up 10 full-time actors and a large number of part-time artistes.

In addition to Urban Council presentations, local music groups and soloists gave 174 concerts and Chinese and English amateur drama groups presented 38 perform- ances in the City Hall.

The Second International Film Festival of Hong Kong, sponsored by the Urban Council, attracted more than 27,000 people who attended 113 film shows in the City Hall theatre and lecture hall. Another 28,000 people visited two exhibitions which were part of the event. More than 40 films from 21 countries and 18 films from Hong Kong

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were featured as well as a collection of Cantonese films produced in the 1950s. The festival paid special tribute to James Wong Howe, the late Chinese cinematographer in Hollywood, by screening seven of his films and hosting a photographic exhibition to commemorate his works.

Festival of Asian Arts

The Third Festival of Asian Arts was held in Hong Kong for two weeks in October. This major presentation by the Urban Council attracted more than 400 participants from Bangladesh, India, Indonesia, Japan, Korea, the Philippines, Sri Lanka and Thailand as well as 700 performers from Hong Kong. One hundred and twenty events were staged in the City Hall and at various outdoor venues, with up to 17 events being held a day. In addition, there were exhibitions featuring ukiyo-e, calligraphy and ikebana from Japan, ancient Chinese bamboo carvings, snuff bottles, Thai ceramics and Korean musical instruments.

Hong Kong Arts Festival

The international artistes who took part in the 1978 Hong Kong Arts Festival under- lined the fact that, six years after its beginning, the festival has become a major event in the international cultural calendar.

　　　　　　The blend of Western and Eastern art, together with a policy of further diversifying the programme, providing an increased number of lower-priced seats and extending the venues, attracted audiences comprising residents and overseas visitors.

　　　　　　The diverse programme ranged from the Bournemouth Symphony Orchestra, under conductors Paavo Berglund and Akeo Watanabe, to Cantonese opera, Dionne Warwick, the Charlie Byrd Trio, and Soochow and Southern Lyrics. Appearing with the Bournemouth Symphony Orchestra were soprano Felicity Palmer, baritone Robert Davis, violinist Ida Haendel, pianist Peter Frankl, horn player Alan Civil, and the Hong Kong Oratorio Society.

　　　　　　Drama was provided by Britain's Festival Theatre Company with productions of Rosmerholm, She Stoops to Conquer and Happy Days, and Hong Kong's Garrison Players.

　　　　　　Among other artistes performing were comedians George Logan and Patrick Fyffe - better known as Hinge and Bracket; the Ballet Folklorico de Mexico; the Lucerne Festival Strings; the Norwegian Soloist Choir; The Compagnie Philippe Genty, and Hong Kong's Chinese and Philharmonic Orchestras.

Tsim Sha Tsui Cultural Centre

　　　　　The Tsim Sha Tsui Cultural Centre is an ambitious project of the Urban Council and the government to further improve facilities for the arts in Hong Kong. The space museum, which forms the first stage of the complex, is expected to be completed in mid-1979. Its main features consist of a planetarium with more than 300 seats under a 23-metre dome, one of the largest in the world; two exhibition halls with a total area of about 1,400 square metres; and a lecture hall of 204 seats. People visiting the space museum will learn about the universe and space exploration through sky-shows, exhibitions and lectures.

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The cultural complex will have an auditoria block housing a 2,000-seat concert hall; a 2,200-seat lyric theatre for opera, ballet and stage shows; and a small theatre in the round. A nine-storey office block will provide the Cultural Services Division of the Urban Services Department with accommodation. Other facilities planned include restaurants, an arts library, conference and lecture rooms, garden areas and a small recital hall.

　　　　　　In the third stage of the Tsim Sha Tsui Cultural Centre both the Hong Kong Museum of Art and Hong Kong Museum of History will be relocated in a new museum building, which is expected to be operational in 1983.

Hong Kong Museum of Art

　　　　　Thirteen exhibitions of Chinese and Japanese art, including five exhibitions in con- junction with the Third Festival of Asian Arts, were staged by the Hong Kong Museum of Art in 1978. Nine illustrated exhibition catalogues on Chinese bamboo carving, snuff bottles, Chinese painting, Japanese prints and calligraphy, and works by contemporary artists were produced. These have been added to the libraries of many museums and universities around the world. The exhibition and catalogue on Chinese bamboo carving of the Ming and Ch'ing Dynasties was the first of its kind in museum history.

During the year, 285,000 people visited exhibitions - an average of 924 a day. In an extension of the museum's activities, small travelling exhibitions have been set up and these are loaned - free of charge to schools, libraries and cultural institutions. Some significant acquisitions were made by the museum. These included a large San-ts'ai pottery horse and a rare blue glazed tripod bowl of the Tang Dynasty (618 to 907); a Tz'u-chou vase painted with two peony sprays and a Chun Yao narcissus bowl of the Sung Dynasty (960 to 1279); a moulded ying-ching saucer dish and a blue-and-white bowl of the Yuan Dynasty (1280 to 1368); a winter-green bowl with incised decoration and a blue-and-white brush-rest of the Ming Dynasty (1368 to 1644); and a Canton enamel double gourd vase of the Ch'ien-lung period (1736 to 1795).

Hong Kong Museum of History

The Hong Kong Museum of History organised several major exhibitions in 1978 which attracted 290,000 visitors to the museum's galleries on the fourth floor of Star House, Kowloon.

A special exhibition was organised jointly by the museum and the Agriculture and Fisheries Department to mark the centenary of one of Hong Kong's most renowned scientific institutions, the Hong Kong Herbarium. Another exhibition featured Thai ceramics through the ages and was organised with the co-operation of the Division of National Museums of the Royal Thai Fine Art Department.

With the assistance and co-operation of the Hong Kong Archaeological Society, an exhibition entitled, Sham Wan: 5,000 Years into the Past, featured the fascinating results of a detailed archaeological study at Sham Wan, Lamma Island. Coinciding with the exhibition was the publication of a comprehensive monograph on the Sham Wan excavations by the Hong Kong Archaeological Society, with financial assistance

FILMING

Thriving film industry

A flash of swords and the deft hand of the hero, or heroine, dispatches another villain. The scene is a familiar one to Hong Kong film-goers who bought 65 million cinema tickets in 1978. Making a significant con- tribution to meet this demand is Hong Kong's multi-million dollar film industry. During 1978, more than 130 feature-length films were produced by Hong Kong com- panies. They ranged from the popular Chinese epics featuring kung fu and bold sword fights to competitive productions aimed at the sophisticated international market. Many Hong Kong films are dis- tributed to major markets throughout the world. The territory's largest production house is Shaw Brothers, set in 18.5 hectares in Clear Water Bay in the New Territories. Each year, Shaw Brothers produces more than 40 Mandarin and Cantonese films, some of which are dubbed in English. In 1978, Shaw Brothers also was involved in a $75 million co-production Meteor, starring Sean Connery and Natalie Wood. Hong Kong's other major film company is Golden Harvest which produces some 12 to 15 films annually. Its most important project in late 1978 was the $11 million production Night Games, directed by Roger Vadim. Golden Harvest also was a partner in one of the most successful films in Hong Kong during the year, Michael Hui's The Contract, a contemporary Cantonese comedy. Because land values are affecting cinema development in Hong Kong, the government is planning to introduce new regulations which will enable small cinemas to be established in multi-storey buildings.

Previous page: Hemmed in, but undaunted, the heroine fights for her life in a Chinese epic being filmed at Shaw Brothers Studios. Left: Candice Bergen and Ryan O'Neal in Hong Kong to film scenes for 'Oliver's Story'; American economist, Professor Milton Friedman on location for a television documentary; Film-maker, Michael Hui who wrote, directed and starred in 'The Contract'.

　　　　　　On the set of 'The Contract', one of the most popular films among Hong Kong cinema-goers in 1978. The film, a parody of Hong Kong's television industry, was a Golden Harvest-Hui Brothers production.

Action! A rail-mounted camera captures a dramatic duel between a Chinese swordsman and his Japanese:

counterpart in a scene calculated to win the attention of cinema audiences.

　　　　　　On location at Shaw Brothers Studios, a make-up woman adds the finishing touches to pretty starlet, Niu Niu. The make-up department is proficient in transforming people into characters from the past.

　　　　　Below: Hong Kong's production facilities are, in some cases, first class. A technician adjusts a sub-title overlay being printed on a film.

Above: Developing colour film demands precision. An expert analyses the chemical balance of a solution.

　　　　　Below: Before distribution, films are checked for scratches and any other

damage.

Above: An artist works on a series of # posters promoting a new film.

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Even the most traditional characters enjoy modern-day refreshments. Taking a break from filming a group of actors and an actress, dressed in the costumes of ancient China, relax in a studio canteen.

DAN #

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from the Urban Council. This was followed by a Chinese edition of the Sham Wan monograph - the first major report on an archaeological site in Hong Kong to appear in the Chinese language.

　　　　　　Acquisitions during the year included part of the Shut Hing Study Hall built at Ping Shan, Yuen Long, in 1874; a model of the famous Chinese junk, Keying, which sailed to the United States and England in the 19th century; and a fine specimen of a gayageum, Korean zither.

　　　　　　The Antiquities and Monuments Section continued with its systematic search, survey and documentation of antiquities. Plans are being prepared for the preservation and display of Hong Kong's ancient rock carvings and selected historic buildings.

　　　　　　Following the completion of conservation work and renovation of the Han Tomb and the Lei Cheng Uk Branch Museum, the branch museum reopened in October. In addition to the main hall, where facilities are provided for temporary exhibitions, a display room for the tomb finds has been constructed through the conversion of former staff quarters. Attendance in the last nine weeks of 1978 was 30,100, with a daily average of 547.

Libraries

　　　　　More libraries were established or were in the planning stage in 1978. The Urban Council established a district library in Mei Foo Sun Chuen and new libraries will open early in 1979 at Wan Chai and Chai Wan. The Urban Services Department is to open libraries at Kwai Chung South and Yuen Long in the New Territories. A video cassette library began in the Yau Ma Tei Library and a postal book service for disabled people will start next year.

　　　　　　During the year, a total of 176,406 new books were acquired, bringing the stock to 937,987. In addition, the libraries have a stock of 3,295 reels of microfilm; 93 video cassettes and 10,632 gramophone records and cassette tapes; and subscribe to 980 English and Chinese newspapers and periodicals. A total of 3,561 new publications were registered under the Book Registration Ordinance.

　　　　　　Some 81,581 people registered as new members in 1978, bringing the total mem- bership to 784,760. The lending libraries issued 4,133,113 books, while a further 3,831,494 books were read in the libraries and 379,948 books consulted in the reference libraries. About 159,500 people attended or took part in extension activities such as book exhibitions, story hours, film shows, school visits, literary competitions and talks.

Plans are in hand to increase substantially audio-visual library services and facilities, and to use automation for book circulation and book processing.

The British Council

Valuable contributions to the educational and cultural activities of Hong Kong were made by the British Council during 1978. Assistance was given to government depart- ments and to Hong Kong's 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 government departments, the universities and local experts in their fields.

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　　　　　　　One Hornby Trust Scholarship and 10 Hornby Trust Bursaries were awarded for training overseas in the teaching of English and for short English courses. Acting for the Sino-British Fellowship Trust, the council arranged six scholarships for post-graduate studies in Britain. The council also completed placing and travel arrangements for nine British Commonwealth fellows and scholars from Hong Kong going to Britain.

A new British Council Centre was set up in Wan Chai, in May, 1977, to accom- modate the administrative offices, the library and the English Language Teaching Institute. This new centre was officially opened by the Governor in April, 1978. The council is conducting English language courses at the centre, both for teachers of English and for students who wish to take part in the First and Proficiency Certificates Examinations of the Cambridge Local Examination Syndicate. A total of 17,000 students attended various courses during 1978 and special English courses also were arranged for some commercial firms.

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The Environment

THE drafting of new environmental protection legislation and the strengthening of organisations responsible for pollution control moved ahead in 1978. This was the result of recommendations made in late 1977 by environmental consultants engaged by the government.

Proposals suggested by the consultants and amended by then Advisory Committee on Environmental Pollution were agreed to by the Governor in Council in early 1978. Plans were subsequently drawn up to give more power to existing pollution control agencies and to establish new agencies where necessary. Consultations with industry on the new legislative proposals were held simultaneously to ensure that the proposals would be practicable.

Central Pollution Control

The Environment Branch, a policy-making and co-ordinating body within the Govern- ment Secretariat, is responsible for pollution control, countryside conservation, urban services, land development, land administration and transport matters.

Attached to the Environment Branch is the Environmental Protection Unit (EPU), a professional agency which is responsible to the Secretary for the Environment for overall policy development in the pollution control field. This includes: formulating the pollution control programme by identifying priorities and assessing the cost- benefits of alternative policy strategies; establishing objectives for environmental quality; assessing the effectiveness of policies in practice; and the long-term trend monitoring of pollutant concentrations which will provide the essential data-base for policy development.

Other duties include providing expert input on environmental planning and on the selection of suitable sites for large-scale development projects, the vetting of environmental impact statements, and the provision of technical guidance to depart- mental control units in difficult cases.

　　　　　　　The posts comprising the nucleus of the Environmental Protection Unit were filled during 1978. Environmental protection officers for water pollution and air pollution arrived in April, the environmental protection officer for noise and vibration arrived in August, and the environmental protection officer for solid waste was in his post by September. These officers work to the head of the unit, the Environmental Protec- tion Adviser. Recruitment of staff for the unit will continue over the next three years so that it can be brought up to strength to undertake investigational and monitoring work, essential for policy development.

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Five new ordinances were proposed by the environmental consultants engaged by the government to provide comprehensive legislative controls to deal with pollution. They are the Water Pollution Control Ordinance, Air Pollution Control Ordinance, Noise Abatement Ordinance, Waste Disposal Ordinance, and the Environmental Impact Statement Ordinance. The draft Water Pollution Control Ordinance, amended after consultation with industry, is to be put to the Legislative Council. Drafting of the Air Pollution Control Ordinance is being undertaken. Consultations with industry over the Noise Abatement Ordinance and the proposed Waste Disposal Ordinance are proceeding.

The previous Advisory Committee on Environmental Pollution was reconstituted to form the new Environmental Protection Advisory Committee (EPCOM) in mid- 1978. Its terms of reference are to keep a constant watch on the environment and to advise the Secretary for the Environment on adequate measures to combat pollution. EPCOM functions through a 12-member central co-ordinating committee under the chairmanship of the Secretary for the Environment, with prominent citizens and senior government officials as members. Representatives of three major industrial organisations: the Chinese Manufacturers' Association of Hong Kong; Federation of Hong Kong Industries and the Hong Kong General Chamber of Commerce are included in the membership of the central co-ordinating committee. This is to ensure that industry is properly consulted on all major policy issues concerned with pollution control and, in particular, over the new environmental protection legislation proposals.

Water Pollution

Work to expand sewage treatment and disposal facilities in accordance with the government's 10-year programme continued in 1978. At present, about 40 per cent of the demand for these facilities is being met and it is anticipated that by 1982, 85 per cent of the demand for sewage treatment and disposal facilities will be achieved. Industrial liquid effluent discharges are still largely untreated. Draft legislation to control liquid effluent discharges, to be known as the Water Pollution Control Ordinance, was completed in 1978 and is being put before the Legislative Council. The ordinance will require all liquid effluent dischargers to be licensed.

To avoid disrupting industry, existing dischargers generally will be allowed to continue with the same levels of discharge. But new dischargers will be regulated by discharge levels specified in licence conditions. Control will be implemented in stages on an area-by-area and industry-by-industry basis.

The proposed scheme, if implemented, will prevent further deterioration in the short term, and seek gradual improvement over the medium to long term. A new unit is being created within the Public Works Department to be responsible for the implementation of controls.

During the year, the Marine Pollution Section of the Agriculture and Fisheries Department continued its fortnightly plankton sampling in Tolo Harbour. Intense algal blooms appear to be more frequent now and a report on nutrient enrichment of the harbour was prepared in summer.

Fortnightly plankton sampling, which was initiated in late 1976 in Port Shelter, Junk Bay, Victoria Harbour and its western and south-western approaches, was completed early in the year and the results were analysed and prepared for

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publication. They are proving very helpful in assessing the relative impact of sewage pollution in these waters.

　　　　　　Work on a preliminary survey of Hong Kong benthos, or sea bottom life, under- taken by the Marine Pollution Section in co-operation with the University of Hong Kong continued. The study of seasonal changes is complete but further analysis is being made of the spatial survey covering more than 200 sites. The survey commenced in summer, 1975.

　　　　　　　During 1978 new dumping grounds, in Mirs Bay and the West Lamma Channel, came into use for the disposal of marine spoil from sea-wall construction and reclama- tion projects. Regular monitoring of conditions on these grounds is being carried out as is regular benthos sampling in Tolo Harbour.

　　　　　　On rocky sea bottoms, photographic monitoring of corals and associated marine life is to be used to detect the effects of sewage pollution and dumping. The develop- ment of photographic monitoring was delayed in 1978 until more advanced equipment arrived late in the year.

　　　　　　Monitoring of trace metals in inshore fish and shellfish continued and a major survey was initiated, using the rock oyster as an indicator species. Market sampling was carried out, in co-operation with the Urban Services Department and the Govern- ment Chemist, and the programme concentrated upon high risk species. This approach proved successful in identifying problem areas.

　　　　　　A total of 25 oil spill dispersants were tested for their toxicity to marine life, using rabbitfish and sea urchins as the test organisms.

　　　　　　　The Pollution Control Unit of the Marine Department is responsible for dealing with oil pollution problems and the collection of harbour refuse. Under the guidance of a marine officer, staff regularly inspect ships in the harbour receiving oil fuel bunkers, in an effort to prevent oil pollution. They also inspect tankers discharging oil fuel at various terminals, as well as inspecting the oil terminals themselves. Since the unit was established in February, 1971, numerous pollution offenders have been successfully prosecuted. During the year, the maximum penalty for polluting the waters of Hong Kong was increased to a fine of $200,000. The costs incurred in clearing or dispersing the pollution are also recovered from the offenders.

　　　　　　The Pollution Control Unit keeps abreast of technological developments in pollu- tion control, and both Marine Department and Civil Aid Services personnel are continually trained in the operation and deployment of anti-pollution equipment. To combat oil pollution, the unit has at its disposal a purpose-built launch equipped with modern pollution control facilities, stocks of low-toxicity chemical dispersant, oil containment booms and an oil skimming device.

　　　　　　　In July, the Pollution Control Unit took delivery of a shallow draft inshore pollu- tion control craft which, although primarily intended and equipped to deal with oil spills close inshore, is fitted with a debris collection device that enables concentra- tions of floating refuse to be removed from the water. In an emergency, 20 government launches fitted with anti-oil pollution equipment can be mobilised and deployed.

　　　　　　Floating refuse continued to be a problem and scavenging services operated through- out the year within Victoria Harbour, Causeway Bay and Yau Ma Tei typhoon shelters, the eastern approaches, Tsuen Wan and Aberdeen Harbour. The refuse collection service for visiting ocean-going ships also was maintained. To cover these

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　　　　　operations, some 50 small craft were under contract to the Marine Department. They were manned by contract labour operating under the supervision of Pollution Control Unit staff. An average of 15 tonnes of refuse was removed from the waters of Hong Kong each day, of which about 80 per cent was floating timber.

　　　　　　The Marine Department has formulated plans to mechanise its cleansing services to increase efficiency and productivity. As the first step, a floating, self-propelled mechanised refuse collector has been ordered from the United Kingdom. This specialised craft is widely used in Europe and the United States but Hong Kong will be the first place in the Far East to acquire one. Trials initially will take place in Aberdeen Harbour where the vessel's capabilities may be most effective.

Air Pollution

The Air Pollution Control Unit of the Labour Department is responsible for admi- nistering the Clean Air Ordinance, the Clean Air (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations and the Clean Air (Restriction and Measure- ment of Smoke Emission) Regulations. It offers the industrial and commercial sectors free advice and technical assistance on the efficient use of fuel and the reduction of smoke emissions and other aerial pollutants.

　　　　　　The unit operates four daily monitoring stations. Readings at the Hung Hom station have shown an increase in sulphur dioxide concentrations since August, registering about one 20th of the maximum permitted level of 1,310 ug/m3. The 12-month mean average readings at Queen Elizabeth Hospital, Sham Shui Po and the Central Market stations, which were 90 ug/m3, 28 ug/m3 and 23 ug/m3 respec- tively, did not show any substantial increase in concentrations over the previous year's figures. The smoke density readings at Sham Shui Po and Central Market stations were 118 ug/m3 and 57 ug/m3 respectively, while readings at Hung Hom and Queen Elizabeth Hospital were 29 ug/m3 and 43 ug/m3.

　　　　　　Beginning in June, a 10-week environmental survey of air pollution levels was conducted jointly by staff of the unit and students of the University of Hong Kong. Concentrations of sulphur dioxide and lead particulates were monitored at different levels in busy streets and in industrial areas.

　　　　　　　In 1978, the Air Pollution Control Unit received and investigated 974 air pollu- tion 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 regulations against persistent offenders are still necessary. There were 48 convictions with fines ranging from $200 to $2,000.

　　　　　　During 1978 Lai Chi Kok incinerator chimney was extended by 30 metres to 122 metres. The two older 61-metre chimneys were closed down, thus improving the dispersal of aerial pollutants from the incinerator. Prosecutions relating to the emission of exhaust smoke by vehicles continued in 1978 and two additional roadside smoke test units were provided. This resulted in a total of 5,571 prosecutions.

　　　　　　　Drafting of the new Air Pollution Control Ordinance was almost complete and it is to be submitted to the Legislative Council for consideration. The ordinance seeks to consolidate existing provisions under the Clean Air Ordinance and to provide additional powers to control hazardous emissions and odours.

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　　　　　The Summary Offences Ordinance was amended in 1978 to improve control over construction noise. From July 1, 1979, piling and the use of mechanically-powered construction equipment above one horsepower will be prohibited between 7 pm and 7 am every day and all day on public holidays.

　　　　　　Consultations are proceeding with the construction industry over the new Noise Abatement Ordinance which seeks to consolidate the fragmented existing legislation on noise pollution control, and to provide more effective noise abatement procedures. A statutory code of practice to limit construction noise also will be drawn up to further improve control.

　　　　　　　Controls on industrial noise and air-conditioning noise continued in 1978 under existing legislative provisions.

Waste Disposal

The Kwai Chung incinerator was completed in 1978 and commissioning commenced in November. The incinerator is equipped with electrostatic precipitators and has a 150-metre stack to provide for the efficient dispersal of aerial emissions.

　　　　　　Work on a composting plant at Chai Wan and a high density rubbish baling plant at Sai Tso Wan continued in 1978. When completed they will offer alternative means of waste disposal.

　　　　　　　In 1978, a total of 1,050,000 tonnes of solid waste was disposed of at controlled tips and a total of 554,700 tonnes was burnt in incinerators. The shortage of suitable space for controlled tipping and the undesirability of having more incinerators (owing to high costs and air pollution problems) make it necessary to look for more cost-effective and environmentally acceptable means of waste disposal.

　　　　　　A new Waste Disposal Ordinance will be drafted to give statutory powers to the Director of Public Works on waste disposal. Special provisions also will be included to control toxic and dangerous wastes.

　　　　　　　Pollution by farmers of watercourses and streams in the New Territories continued unabated during the year and it was estimated that practically all pig wastes and approximately 50 per cent of all poultry wastes contributed to the pollution.

　　　　　　Investigation continued into possible means of disposal of these wastes after farmers have been persuaded, or compelled, to change their husbandry practices - mainly by separating at source, solids from liquids. Liquid waste treatment alternatives were under study at the Agriculture and Fisheries Department's Ta Kwu Ling Pig Breeding Centre where additional facilities are now available for oxygenating the wastes.

　　　　　　The Agriculture and Fisheries Department is investigating solid waste drying tech- niques at Pat Heung with a continuous process rotary drier, and at Sai Kung with a batch-type drier.

　　　　　　Air-drying tests to cheapen the costs of thermal drying are being carried out on a variety of farm solid wastes from a limited number of farms.

Conservation and Countryside Management

Hong Kong's hilly topography has ensured the 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

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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 1978, great progress was made in the designation of country parks. An additional nine parks, covering a total area of 24,794 hectares, were designated. These are Sai Kung East and West, Plover Cove, Pat Sin Leng, South and North Lantau, Lam Tsuen, Tai Mo Shan and Tai Lam Chung. Survey work for several other parks is in progress. According to plan, more than 70 per cent of the territory's hilly areas will have been designated as country parks or special areas before the end of 1980.

　　　　　　The Agriculture and Fisheries Department is responsible for conservation 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 educational services, and other facilities. Road access to the countryside also is being improved to enable manage- ment 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 337 government officials with the powers of game wardens and by 30 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 as a site where a rare tree or a rare species of butterfly can be found. Up to December 31, 1978, 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

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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 7 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. 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 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 anticyclone. It is not uncommon during January, February and March for temperatures to drop below 10 degrees Celsius although the mean temperatures from December to March are around 15 to 18°C. During outbreaks of cold air, winds often become strong from the north or east. The prevailing wind during winter and also for most of the year is moderate easterly.

In summer, the weather is tropical: hot and humid with occasional showers or thunderstorms. Winds are generally moderate in strength and rather variable in direction although the south-west monsoon is the prevailing wind affecting Southeast Asia. Afternoon temperatures frequently exceed 32°C between June and September with mean temperatures around 27 to 29°C.

Tropical cyclones are most common from July to September. In an average year, about five can be expected to cause strong winds and about one gale-force winds or higher in Hong Kong. Tropical cyclones occur in the Pacific and the South China Sea throughout the year, although none has ever caused gales in Hong Kong during the five months between December and April. When a tropical cyclone is 700 to 1,000 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.

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　　　　　Heavy rainfall from tropical cyclones often causes more damage and casualties than the wind.

　　　　　　Spring is characterised by cloudy skies, periods of light rain or drizzle and some- times 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, generally making it the best time of year for visiting Hong Kong.

　　　　　　The mean annual rainfall is 2,246.4 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 457.5 mm. The driest month is December when the monthly average is only 25.9 mm and rain usually only falls on about five days in the month. October is the sunniest month when an average of 58 per cent of possible hours of sunshine are recorded. Climato- logical information on Hong Kong's weather is given in Appendix 39.

　　　　　　Severe weather phenomena that can affect Hong Kong include tropical cyclones mostly 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 from April to September. Waterspouts, hailstorms and snow are rare. Although the lowest temperature recorded at the Royal 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 total rainfall in 1978 was 2,593 millimetres or 15 per cent above the annual average. Substantial rain in March and April greatly eased the water situation in Hong Kong and a 24-hour supply was resumed on April 18, ending the restrictions imposed on June 1, 1977. By the end of April, rainfall was 63 per cent above normal. Although June and August were fairly dry, exceptionally heavy rain associated with Severe Tropical Storm Agnes in July and Severe Tropical Storm Nina in October made up the deficit. This brought the May to October rainfall up to 2,102 mm which is in the range predicted by the Royal Observatory.

Due to cloudy conditions between February and May, the year as a whole was cloudier and less sunny than usual. The total duration of sunshine in the year was 244 hours less than average and ranked as the eighth lowest on record. Mean temperatures in the year were near normal but the summer months were very hot.

Three new records were established in 1978 the total duration of sunshine in March was only 21.7 hours; maximum temperatures exceeded 33°C on 19 consecutive days during July and the temperature dropped to a minimum of 13.5°C in October. The 33 tropical cyclones reported over the western North Pacific and the South China Sea in 1978 caused heavy losses both in human life and property in many Asian countries, especially in the Philippines. Hong Kong suffered little damage from the eight tropical cyclones that approached during the year. The most serious was Severe Tropical Storm Agnes. Agnes is unique in that it is the only tropical cyclone for which gale signals were hoisted on two separate occasions. It was also the fourth wettest tropical cyclone since 1884. During its two approaches to Hong Kong, the Royal Observatory recorded a total of 519 mm of rain. Although no heavy damage to

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property resulted from the gale force winds, farmers in the New Territories suffered losses because more than 1,000 hectares of vegetables and flowers were destroyed and many fish ponds overflowed. Agnes resulted in 137 casualties and three deaths. There were numerous landslips but none of them was extensive.

　　　　　　The first two months of the year were dry and cool and many Fire Danger Warnings were issued. Conditions were very cold on January 16-21 and frost was reported in the northern part of the New Territories. It was coldest on the morning of January 18 when minimum temperatures of -1°C and 0°C were reported at Tai Mo Shan and Tate's Cairn respectively. The minimum temperature at the Royal Observatory was 6.9°C which was the lowest recorded in the year. The Strong Monsoon Signal was hoisted on five occasions in January and on two occasions in February to warn of strong winds associated with the winter monsoon.

March was damp and gloomy. It was much wetter and cloudier than usual. The total rainfall recorded at the Royal Observatory amounted to 143.8 mm which repre- sents nearly three times the average figure for March. The total duration of sunshine was only 21.7 hours, the lowest in any March since 1884. The mean cloudiness of 95 per cent is the fourth highest and the mean relative humidity of 90 per cent is the second highest on record for March. The month was the most foggy March since 1958. There were 14 days when fog was reported at Waglan Island and six days at the Royal Observatory, compared with the average over the last 10 years of 5.9 days at Waglan Island and 1.7 days at the Royal Observatory. The widespread fog from March 26 until the end of the month seriously affected sea and air traffic. Many scheduled flights were delayed or diverted and two ship collisions occurred within Hong Kong

waters.

　　　　　　April was wet and thundery. The month had the largest number of thunderstorms in any April since 1926. There were 10 days with thunderstorms reported at the Royal Observatory and the month's total rainfall amounted to 237 mm which is 75 per cent above average. A stationary trough of low pressure near the South China coast gave rise to frequent showers and thunderstorms from April 28 until the end of the month. Rain was very heavy on the morning of April 28 and flooding was reported in many places on both sides of the harbour. Typhoon Olive was one of the very few typhoons that has ever threatened Hong Kong in April. Olive passed about 350 kilometres south-southeast of Hong Kong on April 24 but had little effect on the weather in Hong Kong.

　　　　　　Rainfall in May was near normal but the month was the coolest and cloudiest May since 1972. The 89.4 hours of sunshine recorded in the month amounted to the third lowest on record for May.

Sunny and hot weather was experienced in June and the month was the driest June since 1963. The total rainfall recorded at the Royal Observatory was 242.4 mm which represents only about half of the normal figure. However, in Tai Po, more than 700 mm were recorded. According to press reports, heavy flooding occurred in Sha Tin on the morning of June 2 and the flood water rose to a maximum depth of 1.5 metres. Both road and rail traffic between Kowloon and the New Territories was disrupted. Another flood occurred at Tai Po. Several villages were affected and more than 3,000 chickens drowned. Strong southeasterly winds were experienced on June 26-7 when the summer monsoon remained active over the northern part of the South China Sea.

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A waterspout was sighted off the coast of southern Hong Kong Island during the heavy showers on the afternoon of June 27.

　　　　　　July was sunnier and much hotter than usual. There were 19 consecutive days with maximum temperatures exceeding 33°C. This heatwave is unprecedented in the history of the Royal Observatory. On the afternoon of July 22, temperatures rose to a maximum of 34.2°C which was the highest recorded in the year. Unusually high temperatures were also experienced in many other places in Asia. Due to persistent rain associated with Severe Tropical Storm Agnes which approached Hong Kong twice at the end of the month, the Royal Observatory recorded a total rainfall of 555.2 mm or 74 per cent more than the average figure for July.

　　　　　　Unlike the previous month, August was cloudier and less sunny than usual but the month's rainfall was much below normal. Out of the eight tropical cyclones over the western North Pacific and the South China Sea in the month, only Tropical Storm Bonnie and Severe Tropical Storm Elaine affected Hong Kong. Gales were experi- enced in Hong Kong during the passage of Severe Tropical Storm Elaine causing one death and 51 people injured. However, very little property damage was reported.

　　　　　　September was hot and sunny with below average rainfall. Although tropical cyclone warning signals were hoisted for two tropical cyclones, no damage was reported in Hong Kong.

Due to heavy rain associated with Severe Tropical Storm Nina in October, many minor landslips and floods were reported in Hong Kong. Rainfall at the Royal Observatory during the month was 501.4 mm which is nearly five times the normal figure of 107.2 mm and is the fourth highest on record for October. The 284.4 mm of rainfall recorded on the 17th is the highest figure for any October day since 1923. The intense continental anticyclone over China combined with three tropical cyclones over the South China Sea to make the month the most windy October in recent years. The minimum temperature of 13.5°C on October 30 was the lowest temperature ever recorded in October. Conditions were dry from the eighth to the 14th. On October 10, Chung Yeung Festival, 150 fires were reported. More than half of these were hill the fires and nearly 200 hectares of grass and trees were affected. On October 28, strong to gale force winds of Typhoon Rita overturned several small boats and also seriously affected air traffic.

November was mainly fine and mild. It was a fairly normal month and the weather was quite seasonable.

December was mild and sunny. Although the Strong Monsoon Signal was hoisted on four occasions to warn of strong winds associated with the winter monsoon, no big falls in temperature were experienced during the month.

The Royal Observatory

When the Royal Observatory was founded in 1883, its most important function was to make magnetic and astronomical observations to assist with the navigation of ships. The emphasis gradually changed and today its main responsibility is for storm warn- ings and weather forecasting services.

　　　　　　Because of Hong Kong's unique situation, the Royal Observatory performs the functions of a local, national and international weather service. Locally, the Royal Observatory maintains a 24-hour watch on the weather and issues forecasts both for

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general release and for individuals. The observatory is responsible for Hong Kong's Time Service and six pip signals are broadcast every 15 minutes on a frequency of 95 megahertz and are relayed by radio and television stations.

As a national weather service, the Royal Observatory operates five meteorological stations in Hong Kong plus an extensive system of special observing stations, manned primarily by voluntary observers. These include a network of more than 100 rainfall stations and seven tide gauges. There also are a number of individual observers from schools, government departments, industry and the general public. The records from these observations are routinely collected and analysed. Various weather summaries, weather charts and reports on tropical cyclones affecting Hong Kong are published. The international responsibilities of the Royal Observatory are primarily centred around aviation and shipping. Aircraft leaving Hong Kong receive 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 Royal Observatory provides instruments for 46 selected ships and an average of about 50 ships send in weather reports each day through Hong Kong's two coastal radio stations. All reports are disseminated to other countries and also punched onto cards for computer use. Special weather bulletins are issued twice daily for inter- national shipping and four times daily for fishermen. Yachtsmen also are provided with weather bulletins during weekends and public holidays.

　　　　　　All weather services provided by the Royal Observatory depend upon efficient communications. Each day, about 10,000 weather reports are received from land stations, ships 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 satellite photographs are received daily from the American polar-orbiting weather satellites and from the Japanese geostationary meteorological satellite.

　　　　　　The tropical cyclone warning service is one of the most important functions of the Royal Observatory. Tropical cyclones are tracked by radars, satellite pictures and from aircraft and ship reports. Once a tropical cyclone has formed and moved into the area between latitudes 10-30° North and longitudes 105-125° East, the Royal Observatory prepares statements on the present position, intensity and movement of the tropical cyclone as well as issuing forecasts on the expected 24-hour and 48-hour developments. These statements are disseminated to the public, shipping companies and airlines, and to neighbouring countries. Objective forecasts of tropical cyclone movements are made four times daily by computer. These objective forecasts are used by the Royal Observatory and are also sent to other countries.

When tropical cyclones approach Hong Kong, warnings are distributed by visual signals, telephone, radio and television. Information and forecasts are broadcast at frequent intervals with regular advisory bulletins and precautionary announcements. The Royal Observatory displays signals for various stages of alert when tropical cyclones come within 750 kilometres of Hong Kong. The signals are based upon the forecast or actual effect of the tropical cyclone on Hong Kong. If the centre of a

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tropical cyclone comes within 400 kilometres of Hong Kong, it can normally be seen on the observatory's radars mounted on top of Tate's Cairn, 580 metres above mean sea-level. Time-lapse movies of the radar display are taken during tropical cyclones, and a video time-lapse system is 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 seismographs at three sites in the New Territories and also in a specially constructed cellar at Royal Observatory Head- quarters. The instruments record vibrations of both long and short periods 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 and especially in high-rise buildings. Two such tremors occurred in 1978. Both were of intensity four to five in the Modified Mercalli Scale of 12.

The observatory prepares bulletins on all earthquake tremors recorded and partic- ipates in the Tsunami Warning System for the Pacific region. Tsunamis are seismic sea waves that are caused by earthquakes. Whenever an intense earthquake is recorded, with an epicentre in the Pacific Ocean or the South China Sea, a special warning message is issued. A tsunami on August 19, 1977, caused severe damage to southern Indonesia.

To study the response of different geological structures to seismic waves, three strong motion accelerographs are installed on bedrock, decomposed granite and reclaimed land. Sites have been chosen at Tate's Cairn, the Royal Observatory Headquarters and the Royal Hong Kong Auxiliary Police Force Headquarters at Wan Chai. In co-operation with the University of Hong Kong, the Royal Observatory also takes geomagnetic measurements at a station near Tate's Cairn.

Air pollution measurements made at King's Park, Yau Ma Tei, include daily measurement of particulates and a continuous record of the concentration of sulphur dioxide in the atmosphere. This information is needed for a scientific study on the effects of local weather on the concentration of pollutants. The observatory also monitors radioactivity. Measurements of beta and gamma activity in the atmosphere, in rainfall and in tap water, have been made at King's Park since 1961. The general level of atmospheric radioactivity was low during 1978.

The observatory maintains meteorological instruments at various locations through- out Hong Kong. Anemometers are installed at 12 sites for wind information which is especially important during tropical cyclones and is 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 struc- ture of the winds, especially in relation to wind stress on buildings. As 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.

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　　　　　　Special meteorological instruments are operated at Hong Kong International Airport, where the safety of aircraft depends on reliable and accurate meteorological measurements. Three anemometers in the airport approaches form part of an opera- tional wind shear project to provide warnings for pilots on variations in the winds occurring during the critical periods of take-off and landing.

Research

Investigations and basic research in applied meteorology and geophysics were carried out during the year in support of local industry and government activities. Meteoro- logical data and climatological information were routinely supplied to other govern- ment departments and to local and overseas institutes and organisations. More than 220 technical papers have now been published by the observatory on various aspects of local weather and on a wide variety of geophysical subjects.

　　　　　　　The observatory is involved in numerical modelling by computer of storm surges - abnormal tide levels which occur during tropical cyclones. The findings are used to optimise design levels of sea-walls and drainage of various reclamations. Data from seven tide gauges and three wave recorders in different parts of Hong Kong is used in this investigation.

　　　　　　　A numerical barotropic model has been developed to produce prognostic upper-air weather charts for the improvement of day-to-day weather forecasts and for the prediction of tropical cyclone movements. Climatological studies were made relating past tropical cyclone positions to the winds and rainfall in Hong Kong. The Royal Observatory has also assisted in a region-wide evaluation of objective techniques for predicting tropical cyclone movement.

Population

THE total estimated population at the end of 1978 was 4,720,200, comprising 2,427,900 males and 2,292,300 females. This represents an increase of 23 per cent on the 1968 population estimate of 3,844,500.

　　　　　　The average annual rate of increase over the 10-year period was 2.1 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 16.6 to 12.3 per thousand. This was the result of the birth rate declining from 21.7 per thousand in 1968 to 17.5 per thousand in 1978, and the death rate remaining 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 567,900 in 1978 to 784,300 by 1988. 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 1,052 square kilometres, is one of the most densely-populated places in the world. The overall density per square kilometre at the end of 1978 was 4,487. But this figure includes a wide variety of densities by individual 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 and an improved living environment.

The population of Hong Kong is still very young - in 1978 about 40 per cent were below the age of 20. But the median age of the population was 24.2, compared with 20.5 10 years ago. The age distribution of the population has also changed con- siderably. In 1968, 39.2 per cent of the population were under 15; now it is 27.9 per cent. The relative figure for those aged 65 and above has risen from four per cent to 5.9 per cent. As a result of the changing numbers of the young and the aged,

香港

HOM

FARMING

共圖

書館

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ARIES

Home-grown produce

Most of the 4.6 million people living in Hong Kong insist on fresh food. Although only 10 per cent of the territory's 1,052 square kilometres is available for cultiva- tion, highly intensive farming helps satisfy some of their needs. Up to three times a day, a variety of vegetables such as white cabbage and flowering cabbage are cut and transported to market. Local farmers produce 42 per cent of fresh vegetables, between 12 to 15 per cent of Hong Kong's pig supply and more than 60 per cent of live chickens consumed. While Hong Kong agriculture is essentially based on a market garden system, farmers nevertheless at- tained a total gross production figure of $842 million for the 1977-8 financial year. Farming in Hong Kong has never offered an easy living but farmers have always been flexible, enterprising and pro- gressive. The Agriculture and Fisheries Department is assisting the territory's farmers by its work in key areas such as research, modern production techniques, pest control and the improvement of breeding stock. Agricultural officers meet farmers and local co-operative societies to give on-the-spot advice ranging from in- formation about yield increases to the pro- vision of credit from loan fund schemes. The department also administers the Vege- table Marketing Organisation which en- sures that wholesale vegetables are sold at a fair price for producer and consumer alike. Agriculture in Hong Kong is diverse. As well as the perennial leafy green vege- tables, crops include spring onions, long beans, Chinese gourds, tomatoes, flowers and fruit. Pigs and poultry - including ducks, pigeons and quail - provide protein and there is a fresh milk supply from local dairies.

Previous page: A familiar farming scene in Hong Kong: Hakka women in their distinc- tive broad-brimmed hats work in the fields. Left: A poultry breeder holds a batch of 10 day-old chickens; an Agriculture and Fisher- ies Department officer checks poultry serum; a duck farm in Sha Tau Kok.

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In May, the precious cargo of a Royal Hong Kong Auxiliary Air Force helicopter was a 110-kilogram pig which was flown to the remote New Territories' village of Cheung Sheung. The Agriculture and Fisheries Department has lent the boar to villagers who make their living from pig-breeding.

　　　　　Women workers harvest a flowering cabbage crop under a plastic net house. Net houses, which are particularly suited for leafy green vegetables, are being introduced in Hong Kong because they protect crops from bad weather, insects and birds.

Shaded by the foliage of long bean plants, a farmer in Sheung Shui begins gathering his crop. Long beans are an important summer crop in Hong Kong...

Modern production techniques play an important part in Hong Kong's highly intensive farming. Some farmers use hand-driven rotary cultivators to plough their land.

Flower cultivation is a developing industry. The beautiful lotus lily is a practical flower because its blooms are sold for decoration and its leaves are used in Chinese cuisine to wrap cooked rice.

There is continual bustle at the Vegetable Marketing Organisation's wholesale market in Kowloon where freshly-cut vegetables, including water spinach, Chinese spinach and flowering cabbage, are sold for distribution throughout Hong Kong.

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the proportion of the working age population (those aged 15 to 64) has increased from 56.8 per cent to 66.2 per cent over the same period. This shows that there is a greater potentially-productive population available to support infants and those who are being educated or who have retired. The dependency ratio- the ratio of the young and the aged to those in the 15 to 64 age group - dropped from 761 per thousand in 1968 to 511 per thousand in 1978.

People in Hong Kong live longer nowadays. Between 1968 and 1978, the expecta- tion of life at birth increased by about 4.6 per cent for both males and females. The expectation at birth of a longer life for females as compared with males remained effectively unchanged over the 10-year period. The life expectancy of males and females born in 1978 was 69.86 years and 76.58 years respectively.

More than 98 per cent of the population can be described as Chinese on the basis of language and place of origin. At the end of 1978, the number of non-Hong Kong Commonwealth citizens residing in Hong Kong totalled 39,459. These comprised: British 14,192 (excluding members of the Armed Forces); Indian 7,790; Australian 4,794; Singaporean 2,748; Canadian 1,998; and other Commonwealth countries 7,937. The number of non-Commonwealth alien residents was 28,935. Of these, the largest groups were: American 6,229; Portuguese 3,703; Pakistani 3,809; Filipino 3,065; Japanese 1,250; Indonesian 1,561; German 1,112; Korean 663; French 668; and Dutch 541.

　　　　　　About 59 per cent of the population is of Hong Kong birth. Most of these people, and the greater part of the immigrant population, originated from Kwangtung Pro- vince in China. The Cantonese group forms the biggest community while the second biggest group is Sze Yap, followed by the Chiu Chow group. The remaining Chinese population have their Heung Ha or origins in other places of Kwangtung, Shanghai and the coastal provinces of China.

Marriages

All marriages in Hong Kong are governed by the Marriage Ordinance and the Marri- age 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 done only in the most exceptional circumstances.

　　　　　　Marriages may take place either at places of public worship licensed for the cele- bration 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, 37,688 marriages were performed in the registries and 2,712 at licensed places of worship. The total of 40,400 was 17 more than in 1977. 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 accordance with the Marriage Ordinance. It declares valid certain customary mar- riages 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

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provision for post-registration of these customary and modern marriages, and for dissolution of such marriages by mutual consent. During the year, 66 customary and 25 modern marriages were post-registered, including 25 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 District keeps all records of births and deaths, and there are sub-registries in all main urban and rural districts. In the outlying areas and islands, births are registered at various rural committee offices by visiting district registrars, and deaths are registered at local police stations.

The statutory period during which a birth should be registered is 42 days from the date of birth. 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, 79,173 live births and 22,843 deaths were registered, compared with 78,807 and 23,459 respectively in 1977. These figures, when adjusted for under-registration, gave a natural increase in population for 1978 of about 56,900. Illegitimate births registered during the year totalled 6,152, compared with 6,774 in 1977.

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, 1,424 births were post-registered, including 280 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 continued to be lodged because registration facilities were not available until 1932. In addition, some cases related 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 a mobile registration team.

　　　　　　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.

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Natural History

　　　　　WHILE in recent years Hong Kong has witnessed the rapid spread of urbanisation, the territory still possesses an area of countryside where people can enjoy wildlife and plants.

Most of Hong Kong's 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. During 1978, the Schedules to the Animals and Plants (Protection of Endangered Species) Ordinance, Chapter 187, were amended to include all species listed in the revised appendices to the Washington Convention on International Trade in Endangered Species. A few local species are included, among them pythons (including their skins) and sea turtles (including shell, meat and eggs). In 1977, new regulations under the Country Parks Ordinance were drawn up and enacted. The regulations provide for the management and control of country parks and special areas, and specifically include the prohibition of hunting and damage to vegetation.

Wildlife

The Mai Po Marshes, which is a restricted area under the Wild Animals Protection Ordinance, is the main attraction for Hong Kong birdwatchers. The 380 hectares of mudflats, shrimp ponds and dwarf 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 - the Glossy Ibis, White-throated Needletail Swift and Asiatic Mouse Martin were recorded at the Mai Po Marshes.

Yim Tso Ha, also restricted, 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. There is one other egretry in Hong Kong, but it is not used by Swinhoe's Egret or Night Heron.

Traditional fung shui woods near older villages and temples are becoming in- creasingly scarce in Hong Kong, yet they continue to be very important for many birds, particularly winter visitors such as thrushes. Recent new sightings from wood- land areas include the Slatey-backed Forktail and Emerald Cuckoo.

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

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trees to be fed by visitors. There are now small breeding groups of both Long-tailed Macaques and Rhesus monkeys. Smaller mammals are common, with the Grey Shrew and the House Shrew being numerous in some rural areas. The Chinese Porcupine, with its strikingly-coloured black and white quills, is still present in parts of the New Territories and on Hong Kong Island.

Over the past decade, wild pigs were sufficiently scarce to warrant their being protected under law. But the numbers increased to such an extent that crop damage caused by wild pigs provoked bitter complaints from farmers. Accordingly, this species was removed from the Seventh Schedule of the Wild Animals Protection Ordinance and is no longer protected. During the year, hunting operations by the police, assisted by the Army, have been carried out in the Plover Cove and Sha Tau Kok areas where most damage to crops occurred.

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. 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 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 less venomous than others but it 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 elsewhere in the region. The Pacific Ridley Turtle was recorded for the first time in local waters during the year.

　　　　　　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 commonly-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, Golden Emperor, the Atlas and Moon moths. The Atlas has an average wing span of 23 centimetres and the Moon 18 centimetres. 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.

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Since it was introduced to Hong Kong in 1938, the African Giant Snail has become a major pest in vegetable crops and gardens. But in 1977, and again in 1978, the snails were late in emerging after the winter and were reported in much lower numbers than in previous years. Weather conditions in the first half of 1978 also inhibited some of the six other 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

　　　　　Recent excavations at Sham Wan, Lamma Island, by the Hong Kong Archaeological Society have uncovered significant quantities of fish bones, mainly of the head grunt (Pomadasys hasta) and marine catfish (Arius leiotetocephalus), some of which date back 4,000 years. This discovery, together with similar finds of shells, is the first direct evidence of food remains in this area, indicating human exploitation of marine resources, presumably by coastal settlers. Considering the necessarily primitive nature of fishing gear and methods in those times, when judged by present standards, the relative abundance of these species (which today continue to be commercially utilised) indicates that these large fishes were readily available to early settlers.

　　　　　　Marine life is an important natural protein source for the people of Hong Kong. The recent estimate of a per capita fish consumption of about 50 kilograms illustrates the popularity and prevalence of this type of animal protein.

Towards the end of February, 1978, three species of marine mammals were recorded in Hong Kong waters. They were a dead female lesser rorqual (Balaenoptera acutorostrata) stranded on Lai Chi Wo beach, a dead female euthrosyne dolphin (Stella euthrosyne) in Aberdeen, and a dead male black finless porpoise (Neomeris phocaenoides) in Tolo Harbour.

Flora

The Hong Kong Herbarium celebrated its centenary during the year. This government institution contains a collection of about 33,000 plant specimens and is responsible for collecting, classifying and maintaining authoritative preserved plant specimens representative of Hong Kong flora. It also disseminates knowledge and information about the flora of Hong Kong and maintains an index of scientific, Chinese and English common names for the plants of Hong Kong. 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.

A Hong Kong Herbarium Centenary Exhibition was jointly presented by the Urban Council and the Agriculture and Fisheries Department at the Hong Kong Museum of History. The exhibition displayed specimens and photographs to show the history and development of the herbarium, its work and function, and botanical discoveries in Hong Kong. It attracted a good attendance.

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). The 1974 edition was updated

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　　　　　and published during 1978. New publications on flora included Hong Kong Fungi by G. A. Griffiths (Hong Kong Government Printer), Hong Kong Trees II by S. Thrower (Hong Kong Government Printer), Ferns of Hong Kong by H. Eddie (Hong Kong University Press) and The Genera of Orchidaceae in Hong Kong by S. Y. Hu (The Chinese University Press).

　　　　　　Before conservation, countless hillsides had been left bare of trees through cen- turies of cutting, burning and exposure to the elements. Their only cover was grassland 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 number of people who spend their leisure time in the countryside.

　　　　　　Remnants of bygone forests - either as scrub forest or as well-developed wood- land - occasionally persist in steep ravines. These have survived the destructive in- fluences of man and fire by their precipitous topography and their moist winter microclimate. It is in such places that many of the more interesting plants grow. 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 Mangrove 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 blossoms. They also attract butterflies and insects, while other plants bear fruit and seeds that serve as important sources of food for birds and animals.

　　　　　　Many villagers have a good working knowledge of the usefulness of some 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 plant species previously unrecorded in Hong Kong have recently been found and are now represented in the herbarium collection. A new herb discovered in 1971 was named Boea guileana by B. L. Burt in 1977 in honour of the collector, Dr D. P. M. Guile.

　　　　　　The Zoological and Botanical Gardens, under the management of the Urban Council, were established as the Botanic Gardens 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. On the large fountain terrace are flowering and foliage plants originating from many climates.

　　　　　　Zoological exhibits in the gardens comprise both mammals and birds. The mammals include White-cheeked Crested Gibbons, Celebes Black Apes, Squirrel Monkeys, Golden Agoutis, Prevost's Tree Squirrels, raccoons, pumas and jaguars. Notable additions to the collection during 1978 were a pair of young orang-utans which have

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been housed in a large, purpose-built enclosure with integral quarters and climbing frame.

　　　　　　　The bird collection is among the best in the Far East, with 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 160 Palawan Peacock Pheasants have been distributed to collections throughout the world over the past 13 years. During 1978 the rare White-necked Crane was bred successfully and for the third successive year, flamingo chicks were reared. An important addition to the bird collection was a pair of rare Black Swans obtained from Holland.

History

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　　　　　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 137 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 now totals 4.7 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. The fact that textiles and clothing have consistently taken up 47 to 53 per cent of Hong Kong's total domestic exports each year since 1959 clearly shows the economy's dependence on these items.

　　　　　　But while textiles remain the mainstay of Hong Kong's economy, major contribu- tions 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 the 1977-8 financial year, 91,957 people moved into Housing Authority accommodation, making a total of almost two million in the authority's estates with a further 126,653 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 started 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 19 per cent of total government expenditure in the 1978-9 financial year. There are now 2,600 schools, four technical institutes, three colleges of education, a technical teachers' college, three approved post-secondary colleges registered under the Post Secondary College Ordinance, a polytechnic and two universities.

　　　　　　Starting from September, 1978, sufficient places were made available for every primary school-leaver to complete three years of secondary education. At the same time, junior secondary education was made free with the abolition of the standard $400-a-year fee.

During 1978, proposals were outlined 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 1978-9, there were 4,066 under- graduate places and 670 post-graduate places. The Chinese University of Hong Kong, which opened in 1963, had an enrolment of 4,375 undergraduates in 1978-9, with a further 416 students enrolled in the graduate programme.

Enormous strides have continued to be made in social welfare in Hong Kong during 1978 particularly in the review of services for the elderly, the development of social security and personal social work among young people.

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In the 1978-9 financial year, government expenditure on social welfare increased to a total of $535 million compared with $87.7 million in the 1972-3 financial year.

　　　　　　Medical and health services have been continually improved. The development programme over the next six years is providing several thousand additional hospital beds and more than 10 clinics, polyclinics and 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 have brought about a generally good state of health throughout the community. Two decades ago, tuberculosis was a major health problem in Hong Kong. Today, tuberculosis is under control 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 pro- vided. Penalties for employing child labour were doubled and new safety regulations introduced. Better protection for workers injured on the job was provided by amendments to the Workmen's Compensation Ordinance.

　　　　　　Industrial workers' wages continued to rise during 1978. In March, 1978, the average daily wage, excluding fringe benefits, had increased by 46 per cent on the base period of July, 1973, to June, 1974. During the same period the cost of living index went up by 22 per cent.

New roads and flyovers have completely transformed road travel in the post-war era. In 1978, extensive improvements to the road systems of Hong Kong Island, Kowloon and the New Territories were being carried out. Tuen Mun Road Stage 1, 17 kilometre highway linking the new towns of Tsuen Wan and Tuen Mun, was opened to traffic in May, 1978. A second tube in the Lion Rock Tunnel opened in January, 1978. On July 17, 1978, the 100 millionth vehicle used the Cross Harbour Tunnel which opened in 1972. In the first six months of 1978, some 12.7 million vehicles used the tunnel and revenue from toll fees during this period amounted to $78.2 million. The Kai Tak Tunnel, a twin-tube, four-lane government project linking To Kwa Wan with Kwun Tong under the airport runway, will be completed in 1980. On Hong Kong Island, tunnelling work proceeded on the Aberdeen Tunnel, which will connect Aberdeen with Happy Valley in 1980.

Work on the modified initial system of the Mass Transit Railway was about 80 per cent complete by the end of 1978. The 15.6-kilometre system will link the Central District of Hong Kong Island with Kwun Tong in Kowloon with 12 stations under- ground and three above ground. The total cost of the system will be about $5,800 million. In September, 1979, the first section of the line will begin operating between Shek Kip Mei and Kwun Tong. The rest of the line will come into operation in March, 1980. The Tsuen Wan extension of the Mass Transit Railway costing an additional $4,100 million will come into operation at the end of 1982. The 10.5- kilometre extension will have 10 stations.

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During 1978 the government accepted, in principle, a programme to electrify the Kowloon-Canton Railway Line at an estimated cost of $400 million. Work on a new loop line and station to serve the Sha Tin Racecourse was completed during the year.

Early History

　　　　　Investigation has shown that people have lived in Hong Kong from primitive times, but population was sparse up to the 19th century. Small villages maintained themselves by fishing, by cultivation of the scanty soil available, and by casual preying on coastal shipping. The fishing ports of Shau Kei Wan and Shek Pai Wan (Aberdeen) were noted as the haunts of pirates from the time of the Mongol Dynasty.

　　　　　　The Kwangtung area of the Chinese mainland was first brought under the suzerainty of China between 221 and 214 BC, but even after its conquest by the Han Emperor Wu Ti in 111 BC, it remained for some centuries a frontier area. The Lei Cheng Uk Tomb, which was discovered in Kowloon in 1955, probably dates from before the Tang Dynasty (618-907) 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 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 Commissioner in Canton, with orders to stamp out the opium trade. A week later he surrounded 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 responsible 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 campaign, 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 interpretation of the earlier treaties and over the boarding of a British lorcha, the Arrow, by Chinese in search of suspected pirates. The Treaty of Tientsin, 1858, which ended the war, gave

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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, includ- ing 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 require- ments 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. 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 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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　　　　　　Japan entered World War II with its attack on Pearl Harbour on December 7, 1941, and an attack at approximately the same time on Hong Kong (December 8, 1941, local time). 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 prob- lems 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 pro- visional 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 struc- ture that is now an integral part of modern Hong Kong.

Constitution and Administration

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　　　　　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 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. Sir Murray MacLehose was appointed Governor in Hong Kong in November, 1971. In 1978 his term of office was extended to August, 1979. All Bills passed by the Legislative Council must have the Governor's 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, pardons, and the tenure of office of Supreme and 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 Chief Secretary, the Commander British Forces, 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. On September 1, 1978, the number of appointed members was increased from nine to 10, making one official

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　　　　　and nine unofficial members in addition to the five ex-officio members. The Governor presides at meetings of the council, although he is not a member.

　　　　　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 preroga- tive 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.

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　　　　　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 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. A significant development during the year was the work of the UMELCO Police Group, whose principal task is to monitor the handling of complaints made against the police. The UMELCO Police Group was established in 1977. In the same year, an ad hoc ICAC Complaints Committee comprising UMELCO members plus the Attorney General was also set up with a similar function in regard to complaints against the ICAC.

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.

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 and derives its authority from the Urban Council Ordinance. It is responsible for managing its own finances and is the only body taking part 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 for both appointed and elected members is four years, but a member may be re-appointed or re-elected for further terms. The chairman is elected by the council and can be an elected member, an appointed member or any person who is not a member but has agreed to accept election to such office. The vice-chairman is elected from among the 24 members of the council.

The council meets in public once a month, but most of its business is decided by the standing committee of the whole council and 13 select committees which meet at least once each month. In addition, there are 25 sub-committees, boards and panels.

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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 3.6 million. The council's main duties are: public sanitation and cleansing; the licensing and hygienic control of all food premises, offensive trades and bathhouses, 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 halls, sports grounds, playgrounds and parks; provision and patronage of cultural services and outdoor entertainment; the licensing of places of public entertainment and liquor licensing. In all 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 1978-9 financial year, the council worked to an overall budget of $531.4 million.

Advisory Committees

　　　　　An important aim of the government is that of improving its contacts with the popu- lation at large. The government is also concerned to ensure that it acts on the best advice available and that its actions are understood and accepted by those affected. A significant part of the effort to achieve this aim is a comprehensive network of more than 150 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.

Reviews of the membership and functions of advisory committees and boards are carried out regularly as more committees tend to be created than disbanded due to the ever increasing complexity and spread of government activities.

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 to which have been added seven district Advisory Boards), or a particular in- dustry (such as the Textiles Advisory Board), or deal with a particular area of com- munity 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, the Trade and Industry Advisory Board, the Social Security Appeals Board, the Metrication Com- mittee and the Country Parks Board.

Civil Service

The civil service provides the staff for all government departments and other units of the administration. During 1977-8 the civil service maintained its growth. It in- creased the number of posts - usually called the establishment - from 117,800 on

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April 1, 1977, to 126,500 on April 1, 1978; an increase of seven per cent. Recruitment was maintained at a high level to fill the increased establishment and the number of officers usually called the strength - increased during the same period from 108,400 to 115,700; an increase of 6.5 per cent. Of the total strength, 97.4 per cent were local officers.

This indicates that about one person in every 17 of the estimated adult working population - or one in 39 of the total population - is employed by the government. The civil service contains a large element of labourers, semi-skilled workers and artisans of one kind or another; their posts total 36,500 and they form 28.8 per cent of the total establishment. 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 establishments of the Medical and Health Department (15,800), the Public Works Department (16,900), the Urban Services Department (20,300) and the Royal Hong Kong Police Force (22,100) account for a total of 75,100 posts - or about 59 per cent of the total establish- ment of the service.

The service has grown from 17,500 in 1949 to about 69,000 in 1967 and now to more than 115,000. 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 1978-9, this is estimated to be about $2,771 million, excluding pensions. This is about 38 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 in the middle and senior ranks are subject to the advice of the Public Services Commission. This was set up in 1950 and is independent of the government. The commission also advises the government on discipline 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, staff rela- tions, pay, training, discipline and structure of the civil service lies with the Civil Service Branch of the Government Secretariat.

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.

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　　　　　　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 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 political 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 world-wide 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 in- terests 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 civil 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.

Subsidiary offices are maintained in Manchester and Edinburgh to enable the London Office to develop its welfare and liaison services among the Hong Kong Chinese communities in the north of England and Scotland.

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 respon- sibilities 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 and growing regional element in the way in which many departments are organised.

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　　　　　Home Affairs Department The main function of the Home Affairs Department is to gauge public reaction to government policies and activities and current affairs. Acting as a monitor of govern- ment performance, the department maintains close contact with most sectors of the community and stands a little apart from the main executive machinery of govern- ment. It keeps in touch with many unofficial bodies such as the Tung Wah Group of Hospitals, Po Leung Kuk, kaifong associations, district and clansmen's associa- tions, Mutual Aid Committees, multi-storey building owners' corporations and religious and charitable organisations. However most of its efforts are directed towards the less affluent people of Hong Kong, finding out what their problems and needs are, and putting them in touch with the government 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 the people. There are 10 City District Offices and 14 sub-offices in the crowded urban areas of Kowloon and Hong Kong Island. These offices provide a point of contact with the govern- ment, 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 best known being the public enquiry service which dealt with more than 3.5 million enquiries in 1978. This counter service can advise a citizen on almost any aspect of government policy and procedure, provide him with any forms he might need and help him fill them in. It also operates a 24-hour weather information service during typhoons and prolonged heavy rain-storms when the City District Offices are kept open to those who may be in need.

　　　　　　Through the co-ordination work carried out by City District Officers, people have become involved in community-orientated projects such as campaigns for fighting violent crime, cleaning the city, and recreation and culture, particularly for young people. People are also able to discuss public affairs through the medium of Area Committees which are serviced by City District Officers and their staff.

Much of the communication and community involvement work undertaken by the City District Offices 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 problems of security and cleanliness. At the end of 1978 there were 2,858 of these committees in the urban areas, an increase of 390 over 1977. The Mutual Aid Committee scheme has provided many people with a formalised system of communication with the government distinct from, and in addition to, other channels for complaint or redress of grievance.

Use of the Chinese Language

The steady growth of public business and the consequent increase in corre- spondence between government departments and the public, and the appointment of non-English-speaking people to serve on advisory boards and committees, has increased the demand for translations and interpretations of a high standard.

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, continuous

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efforts were made during the year 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 translations of documents of major significance. Assign- ments included the Governor's policy speech at the opening of the Legislative Council; the Financial Secretary's Budget Speech; the Hong Kong Annual Report (Hong Kong 1979); various government White Papers; the Hong Kong Narcotics Report 1977-8; the Report on the Accident at Sek Kong Airstrip; Report of the Working Party on New Territories Urban Land Acquisition; Final Report of the Victoria Barracks Planning Committee; Report of the Committee of Inquiry into the Precious Blood Golden Jubilee Secondary School; and Final Deed of Mutual Covenant for the Home Ownership Scheme.

　　　　　　The division continued to sponsor a Hong Kong-wide youth cultural and arts com- petition that included contests in translation, Chinese writing, speech making, inter- school debate, Chinese calligraphy and painting, and radio quizzes on the knowledge 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 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 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 in co- operation with 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 to discuss problems and policies. Senior members of the Kuk also sit on government committees dealing with land and other policy matters.

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　　　　　　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 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 over 553,000 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 promote 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.

　　　　　In his address to the Legislative Council in October, 1977, the Governor announced that Advisory Boards were to be established in each district of the New Territories. The role of the boards, with a majority of unofficials drawn from a cross-section of each local community, is to advise the government on matters affecting the well-being of their communities. Each board is allocated funds by the government to enable it to make minor environmental improvements and to promote recreational and cultural activities on a local basis. The boards also give advice to the government on the public works programme as it affects each district.

　　　　　The boards have already made an impact and initial response to their activities is very encouraging. The boards are not intended to dispense with long established channels of communication with rural people, but to broaden the consultative process at a time of rapid urbanisation.

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 dis- putes, 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 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

CONSTITUTION AND ADMINISTRATION

245

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 Coroner's 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 summary offences. In indictable offences, their powers of punishment are restricted to a maximum of two years' imprisonment or a $2,000 fine for any one offence, unless the law in regard to any particular offence prescribes that they may impose some higher penalty. Cumulative sentences of imprisonment imposed by magistrates when trying two or more offences together may not exceed three years. Magistrates also hold preliminary enquiries to decide whether persons accused of the most serious offences should be committed for trial 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 1976-8 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 in the tribunal- one on Hong Kong Island and two in Kowloon is simple and informal, and legal representation is not allowed.

246

Legal Aid

CONSTITUTION AND ADMINISTRATION

The development of the legal aid system in Hong Kong indicates the importance the government places on the promotion of social justice.

　　　　　　A legal aid scheme for civil cases in its present form was introduced on January 12, 1967, with legal aid for criminal cases in its present form coming into operation on January 1, 1970.

Since that time, both schemes have expanded greatly in jurisdiction and caseload. During 1978 another step forward was taken when legal aid for District Court criminal cases was further extended to cover all offences tried in that court.

　　　　　　Legal aid is financed by the government out of general revenue and is subject to a means test. The means test for legal aid is a maximum disposable income of $1,000 per month for civil cases and $1,500 per month for criminal cases with a maximum disposable capital of $10,000 for both civil and criminal cases. In practice, however, applicants with real incomes of more than $3,000 per month and capital assets of as much as $70,000 can, and do, qualify for legal aid owing to the application of a system of 'allowances' which are deducted from their actual earnings and/or capital. Contributions towards costs by people who obtain legal aid are normally paid in instalments. Many people are eligible for free legal aid.

Civil Legal Aid Scheme

In order to qualify for legal aid in a civil case, an applicant must show that he has a prima facie case based on tenable evidence or, if he is a defendant in the proceedings, that he has a reasonable defence.

Cases for which legal aid is available extend across most civil actions including traffic accident claims, landlord and tenant proceedings and every branch of family law ranging from divorce, separation, maintenance and custody to wardship. Claims in respect of industrial accidents and workmen's compensation as well as admiralty, bankruptcy and company winding-up proceedings are also covered. In practical terms, the only common type of proceedings excluded are actions for defamation (as in the United Kingdom). To ensure that civil legal aid cases are handled efficiently and expeditiously, a task force has been formed within the Legal Aid Department com- prising 10 professional officers, 19 law clerks and junior staff to handle all complex and time-consuming cases from start to finish.

Criminal Legal Aid Scheme

　　　　　During 1978, legal aid was extended to cover all District Court criminal cases. Pre- viously, since 1973, legal aid for criminal cases in the District Court had covered most charges, benefiting about three-quarters of accused people.

　　　　　　Legal aid is also available to accused people tried in the High Court. The policy for High Court and District Court trials is that, subject to the means test, all accused people are granted aid owing to the seriousness of the charges and the potential gravity of the sentences. Legal aid is also granted to those who wish to plead guilty and only require pleas in mitigation of sentence.

CONSTITUTION AND ADMINISTRATION

•

In addition legal aid can be applied for in cases of:

247

Appeals from the High Court to the Court of Appeal. Subject to the means test, legal aid is mandatory in appeals in capital cases; but in other cases is only granted if the Director of Legal Aid considers there are reasonable, valid grounds for appeal.

Appeals by accused persons convicted and sentenced in the District Court.

Appeals by persons convicted and sentenced in the Magistrates' Courts. These appeals are heard by a High Court Judge sitting alone.

Administration of the Legal Aid Schemes

When the present civil legal aid scheme was introduced in 1967, it was thought that the Legal Aid Department would restrict its operations to administering the scheme, with particular reference to financial matters. It was decided that the processing of applica- tions for legal aid would be undertaken by lawyers in private practice and that sub- sequent litigation would be conducted by them. But it became evident that there was an insufficient number of lawyers in private practice to cope with the volume of work generated. In 1968, it was found necessary to create a processing section within the department and subsequently a litigation section in 1972. Both sections have grown considerably; the litigation section now handles more than 60 per cent of legal aid

cases.

The Legal Aid Department carries out the solicitor's side of the work in such cases, but briefs barristers in all cases where it would be normal to employ a member or members of the Bar. Professional officers of the department appear as advocates in those civil cases where solicitors normally have a right of audience. In essence, the Legal Aid Department approximates to a large firm of solicitors; it handles a signi- ficant criminal caseload and is the largest civil litigation unit in the Far East.

　　　　　　It is the policy of the department that the legal aid schemes should be operated on the basis of partnership with the legal profession. Over the years, legal practitioners have generously given their time to aided people at fees which are smaller than those earned in private cases.

In January, 1978, the department opened a branch office in Mong Kok for the convenience of applicants who live in Kowloon and the New Territories. This branch office has been particularly popular and successful. During its first seven months, it received 2,541 applications for aid.

The continuing expansion in jurisdiction and in sophisticated caseload has led to a considerable increase in every aspect of the department's operations. In January, 1967, the department comprised one professional officer and five junior staff, occupy- ing two small rooms in the old Supreme Court building. In 1978, it consisted of 32 professional officers, 48 law clerks, two executive officers and necessary supporting staff; in all 189 officers in offices of 2,866 square metres.

　　　　　　During the 1977-8 financial year, a sum of $20.3 million was obtained through legal aid for people involved in civil cases. Most of these cases, which brought justice to aided people, would never have seen the light of day if it had not been for the civil legal aid scheme. However these figures do not reveal fully what legal aid has achieved. Many people acquitted in criminal trials and successful appellants in criminal appeals owe their freedom to the availability in Hong Kong of legal aid and the quality of legal representation.

APPENDICES

Appendices

Units of Measurement

252

Overseas Representation

253

3 4

Hong Kong's External Trade by Major Trading Partners

254

Hong Kong's External Trade by SITC (Revised 2) Commodity

Section/Division

255

Exchange Value of the Hong Kong Dollar

258

Expenditure on the Gross Domestic Product at Current Market

Prices

259

Expenditure on the Gross Domestic Product at Constant Market

Prices of 1966

259

Government Revenue and Receipts by Source

260

Government Revenue and Receipts by Source (Chart)

261

Government Expenditure by Function

262

Government Expenditure by Function (Chart)

263

Comparative Statement of Recurrent and Capital Income and

Expenditure

264

Revenue from Duties

266

Licence Fees under the Dutiable Commodities Ordinance

266

Miscellaneous Fees (Commerce and Industry)

266

Money Supply

267

Banking: Liabilities and Assets

267

Number of Establishments and Employment in Manufacturing

268

Industry Analysed by Main Industrial Groups

Number of Establishments and Employment in Selected

269

Manufacturing Industries

15 Reported Occupational Accidents

270

16 Consumer Price Index (A)

271

Consumer Price Index (B)

271

Hang Seng Consumer Price Index

271

Estimated Local Production of Crops, Livestock, Poultry and Fish

272

Local Production and Imports of Ores and Minerals

272

Imports of Crops, Livestock, Poultry and Fish

273

Categories of Registered Schools

274

School Enrolment

274

Overseas Examinations

274

Hong Kong Students in Britain

Students leaving Hong Kong for Overseas Studies

275

251

2 2 2 2 28

Expenditure on Education Vital Statistics

275

276

Causes of Death

276

Hospital Beds

277

Professional Medical Personnel

277

Number of Quarters and Estimated Persons Accommodated as at

278

March 31, 1978

229

Land Office

279

Considerations in Instruments Registered in Land Office

279

Traffic Accidents

280

Traffic Casualties

280

Crime

280

Cases in the Supreme Court, District Court, Tenancy Tribunal,

283

Labour Tribunal and Lands Tribunal

Work in the Magistracies

283

225

Prisons

284

Electricity Consumption, 1978

284

Electricity Distribution

284

Gas Consumption and Distribution

284

Water Consumption

284

International Movements of Aircraft and Vessels

285

International Movements of Passengers

285

International Movements of Commercial Cargo by Different

285

Means of Transport

Registered Motor Vehicles

286

Public Transport: Passengers Carried by Undertaking

286

Public Transport: Passengers Carried by Area

286

Public Transport: Daily Average Number of Passengers Carried

by Different Modes of Transport

286

Communications

287

Recreational Facilities Provided by the Urban Council and

287

Urban Services Department

Climatological Summary, 1978

288

Climatological Normals

288

The Executive Council

289

The Legislative Council

290

Urban Council

292

The Hong Kong Council of Social Service

293

The Community Chest of Hong Kong

294

252

Appendix 1

Units of Measurement

Metric, British Imperial, Chinese and United States units are all in use in Hong Kong. Metrication is proceeding in some sectors where the benefits are clear and a Metrication Ordinance provides for the replacement in enactments of non-metric units by metric units.

In China, Chinese units have been officially replaced by units of the International System of Units; in Hong Kong the use of Chinese units is almost entirely limited to the measurement of length and mass, although various Chinese units of area are still occasionally used. The Chinese units in the table below are those which have statutory equivalents in Hong Kong; the pertinent legislation, the Weights and Measures Ordinance, is in the process of revision.

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 the locality and the trade in which the unit was used. However, the metre is now the basic unit of length in China. In Hong Kong the statutory equivalent for the chek is 14 inches. The variation of the size of the chek with usage still persists in Hong Kong but the chek and derived units are now used much less than in the past. For the retail sale of cloth, a 'yard' of 24 Chinese inches (35.1 inches) is frequently used. In the past, the values in China for the units of mass have varied according to the locality but the conventional Chinese units have been replaced by the kilogram and its multiples and sub-multiples. A metric catty of exactly 0.5 kilogram is also in use. The tabulated values below are calculated in accordance with the present Hong Kong statutory equivalent for the leung (tael) of 13 avoirdupois ounces. However, for trading in gold, a conversion rate of 1 tael equal to 1.203 37 troy ounces (37.429 0 grams) is used. Chinese units of mass are also used for the sale of Chinese medicine and in the local fish, vegetable and meat markets. For the sale of fish, in particular, some hawkers use a balance with only 12 or 14 taels to the catty instead of 16.

Chinese Units

Metric equivalents

0.371 475 m

Length

10 fan

10 tsün

= 1 tsün (Chinese inch) 1 chek (Chinese foot)

37.147 5 mm

Mass

10 fan (candareen)

= 1 tsin (mace)

10 tsin

= 1 leung (tael)

16 leung

1 kan (catty)

100 kan

= 1 tam (picul)

3.779 94 g 37.799 4 g

0.604 790 kg 60.479 0 kg

The metric conversion factors for length are exact. Six significant figures are used

for the mass conversion factors.

Appendix 2

Overseas Representation

I. Commonwealth Countries

253

Countries

Represented by

Countries

Represented by

Australia

Commissioner

Mauritius

Honorary Consul

Bangladesh

Trade

Nauru

Honorary Consul

Commissioner

New Zealand

Commissioner

Canada

Commissioner

Nigeria

Commissioner

India

Commissioner

Seychelles

Malaysia

Commissioner

Singapore

Honorary Consul Commissioner

(There also is a Senior British 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

Chile

Honorary Consul

Mexico

Consul-General

Colombia

Consul-General

Monaco

Honorary Consul

Costa Rica

Consul-General

Netherlands

Consul-General

Cuba

Consul-General

Nicaragua

Honorary Consul

Denmark

Honorary

Norway

Consul-General

Dominican Republic Consul-General

Pakistan

Panama

Consul-General

Ecuador

Honorary Consul

Paraguay

Honorary Consul

Egypt

Consul-General

Peru

Consul-General

El Salvador

Finland

France

Honorary Consul

Honorary

Consul-General Consul-General

Philippines

Consul-General

Portugal

Consul-General

Republic of South

Consul-General

Africa

Germany

Consul-General

Spain

Consul-General

Greece

Honorary

Sweden

Consul-General

Switzerland

Consul-General

Guatemala

Honorary Consul

Thailand

Consul-General

Iceland

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

254

Appendix 3

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by Major Trading Partners

Imports

1976

1977

1978

1977-8

Change in

Source

$ Million

Per cent

$ Million

Per cent

$ Million

Per cent

per cent

Japan

China

United States

Taiwan

Singapore

9 348

21.6

11 547

23.7

14 405

22.8

+24·7

7761

17.9

8 082

16.6

10 550

16.7

+30.5

5 309

12.3

6 093

12.5

7 519

11.9

+23.4

3 057

7.1

3 254

6.7

4 257

6.8

+30-8

2517

5.8

2 888

5.9

3 219

5.1

+11.4

Britain

1 833

4.2

2 192

4.5

2975

4.7

+35.7

Switzerland and Liechtenstein

1 140

2.6

1 292

2.7

2115

3.4

+63-7

Germany, Federal Republic

1 309

3.0

1 463

3.0

2072

3.3

+41.7

Republic of Korea (South Korea)

1 636

3.8

1 682

3.5

1793

2.8

+ 6.6

Australia

929

2.2

956

2.0

1 274

2.0

+33.2

Others

8 454

19.5

9 252

19.0

12876

20.4

+39.2

Merchandise total

43 293

100-0

48 701

100.0

63 056

100.0

+29.5

Domestic Exports

Destination

United States

11 236

34.4

13 552

38.7

15 125

37.2

+11.6

Germany, Federal Republic

3995

12.2

3 669

10.5

4 426

10.9

+20.6

Britain

3 286

10.1

3 035

8-7

3871

9.5

+27.6

Japan

1 400

4.3

1 386

4.0

1 856

4.6

+33.9

Australia

1 368

4.2

1 247

3.6

1 494

3.7

+19.8

Canada

1396

4.3

1 171

3.3

1271

3.1

+ 8.6

Singapore

782

2.4

904

2.6

1 104

2.7

+22.2

Netherlands

756

2.3

763

2.2

937

2.3

+22·7

Switzerland and Liechtenstein

663

2.0

572

1.6

683

1.7

+19.4

Nigeria

311

1.0

461

1.3

581

1.4

+26.1

Others

7 436

22.8

8 245

23.6

9 364

23.0

+13.6

Merchandise total

32 629

100.0

35 004

100.0

40 711

100.0

+16.3

Re-exports

Destination

Japan

1 500

16.8

1 339

13.6

2282

17.3

+70.4

Singapore

938

10.5

1 063

10.8

1 390

10-5

+30.8

Indonesia

708

7.9

1 059

10.8

1 302

9.9

+-23.0

United States

855

9.6

883

9.0

1 232

9.3

+39.5

Taiwan

815

9.1

872

8.9

1 221

9.3

+40·1

Republic of Korea (South Korea)

385

4-3

456

4.6

600

4.5

+31.6

Philippines

278

3.1

331

3.4

507

3.8

+53.2

Thailand

386

4.3

360

3.7

368

2.8

+ 2.4

Macau

282

3.2

318

3.2

358

2.7

+12·8

Switzerland and Liechtenstein

172

1.9

168

1.7

261

2.0

+54.9

Others

2 609

29.2

2982

30.3

3 677

27.9

+23.3

Merchandise total

8928

100.0

9 829

100.0

13 197

100.0

+34.3

Appendix 4

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by SITC (Rev. 2) Commodity Section/Division

Imports

Section division

255

1976

1977

$ Million

1978

Food and live animals chiefly for food

Live animals chiefly for food

1 206

1237

Meat and meat preparations

837

896

1 283 1018

Fish, crustacea and molluscs and preparations thereof

880

987

1 178

Cereals and cereal preparations

1 010

967

Vegetables and fruit

1 387

1 626

Others

1 371

1 522

1 104 2004 1 621

Sub-total

6 691

7 234

8 207

Beverages and tobacco

Beverages

368

410

542

Others

365

326

447

Sub-total

733

736

989

Crude materials, inedible, except fuels

Cork and wood

190

210

274

Textile fibres (other than wool tops) and their wastes

(not manufactured into yarn or fabrics)

1 855

1 675

1815

Crude animal and vegetable materials, n es

818

1 063

1 253

Others

343

Sub-total

3 206

3 256

308

415

3 756

Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials Others

2 589

2907

3 029

Sub-total

2 680

2995

3 122

　　　　　　　　　Animal and vegetable oils, fats and waxes Fixed vegetable oils and fats

212

247

275

Others

Sub-total

217

251

279

Chemicals and related products, n e s

Dyeing, tanning and colouring materials

708

598

727

Medicinal and pharmaceutical products

514

623

726

Artificial resins and plastic materials, and cellulose esters and ethers Others

1011

1 042

1 325

1 190

1 378

1 829

Sub-total

3 422

3 641

4 606

Manufactured goods classified chiefly by material

Paper, paperboard, and articles of paper pulp, of paper

or of paperboard

975

995

1 349

Textile yarn, fabrics, made-up articles, n e s and related products Non-metallic mineral manufactures, n e s

6759

6 608

8 681

2 673

3 283

5 425

Iron and steel

1 143

1 369

2018

Others

1987

2357

Sub-total

13 537

14 612

3 025 20 498

Machinery and transport equipment

Telecommunications and sound recording and reproducing

apparatus and equipment

1 352

1513

Electrical machinery, apparatus and appliances, n e s

2519

2 990

2057 3 896

Road vehicles (including air-cushion vehicles)

701

971

1 425

Others

3 299

4 067

5 089

Sub-total

7 871

9 541

12 467

Miscellaneous manufactured articles

Articles of apparel and clothing accessories

710

954

1 299

Professional, scientific and controlling instruments and

apparatus, nes

145

212

242

Photographic apparatus, equipment and supplies and

optical goods, n e s; watches and clocks

2265

3 027

Miscellaneous manufactured articles, n es

1 284

1 545

4 300 2 154

Others

449

Sub-total

Commodities and transactions not classified according to kind

Total merchandise

4 853

Gold and specie

Grand total

43 293 2284

45 577

619 6356

48 701

626

247 63 056

889

8 884

1 679

49 327

64 734

256

Appendix 4

- Contd (Chapter 2: Industry and Trade)

Domestic exports

Section[division

Food and live animals chiefly for food

1976

　　　　　　　　Fish, crustacea and molluscs and preparations thereof Vegetables and fruit

351

Miscellaneous edible products and preparations

Others

Sub-total

Beverages and tobacco

Tobacco and tobacco manufactures

Others

551

Sub-total

དྲི ་ྟམཎྜཝ། ཆཟ༐

$ Million

1978

400

112

125

711

Crude materials, inedible, except fuels

Pulp and waste paper

Metalliferous ores and metal scrap

142

153

203

Crude animal and vegetable materials, n es Others

105

Sub-total

296

373

412

Mineral fuels, lubricants and related materials

Animal and vegetable oils, fats and waxes

Chemicals and related products, n e s

Dyeing, tanning and colouring materials

Essential oils and perfume materials; toilet, polishing and

cleansing preparations

119

699

120

Artificial resins and plastic materials, and cellulose esters

and ethers

Others

Sub-total

241

303

345

Manufactured goods classified chiefly by materials

Paper, paperboard, and articles of paper pulp, of paper

or of paperboard

102

Textile yarn, fabrics, made-up articles, n e s and related

products

3086

2 696

2 869

Non-metallic mineral manufactures, n es

207

237

313

Manufactures of metal, nes

847

995

1 124

Others

137

194

226

Sub-total

4 346

4 201

4 635

Machinery and transport equipment

Telecommunications and sound recording and reproducing

apparatus and equipment

2 399

2769

2819

Electrical machinery, apparatus and appliances, n e s and

electrical parts thereof

1433

1 744

2 109

Others

1 079

1 189

1 475

Sub-total

4911

5 702

6 403

Miscellaneous manufactured articles

Sanitary, plumbing, heating and lighting fixtures and

fittings, ne s

Travel goods, handbags and similar containers

Articles of apparel and clothing accessories

Footwear

Professional, scientific and controlling instruments and

apparatus, nes

Photographic apparatus, equipment and supplies and

optical goods, n e s; watches and clocks

Miscellaneous manufactured articles, nes

Others

Sub-total

Commodities and transactions not classified according to kind

Total merchandise

Gold and specie

Grand total

334

383

475

690

711

913

14288

13908

15 709

341

365

427

175

120

1531

2131

3 263

4 683

228

22 158

5 734

261

23 668

6 634

275

331

32 629

35 004

40 711

32 629

35 004

40 711

27 815

Note: * Less than $0-5 million.

Appendix 4

- Contd (Chapter 2: Industry and Trade)

Re-exports

257

Section/division

1976

1977

$ Million

1978

Food and live animals chiefly for food

Fish, crustacea and molluscs and preparations thereof Vegetables and fruit

223

227

318

232

243

295

Coffee, tea, cocoa, spices and manufactures thereof Miscellaneous edible products and preparations

350

240

121

Others

101

Crude materials, inedible, except fuels

Sub-total

Beverages and tobacco

Tobacco and tobacco manufactures

Others

Sub-total

Cork and wood

Textile fibres (other than wool tops) and their wastes

(not manufactured into yarn or fabrics)

Crude animal and vegetable materials, n e s

Others

Sub-total

Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials Others

Sub-total

Animal and vegetable oils, fats and waxes

928

823

888

108

262

230

ཎྞཝཎྞ #སྦ

538

544

894

871

118

159

121

163

Chemicals and related products, n e s

Dyeing, tanning and colouring materials

339

323

Medicinal and pharmaceutical products

Artificial resins and plastic materials and cellulose esters

and ethers

356

366

Others

387

94 483

Sub-total

1 161

1 265

ཚུ༐ ཁམཎྜ། ✖ ཨྰཿགླིངཎྜོ གླཎྜ ✖ བྷིཀྑུ g

106

Manufactured goods classified chiefly by materials

Textile yarn, fabrics, made-up articles, n e s and related

products

979

1 200

1815

Non-metallic mineral manufactures, n e s

1351

1 247

1 870

Non-ferrous metals

148

Manufactures of metal, n es

125

167

215

Others

157

192

280

Sub-total

2 699

2 899

4 327

Machinery and transport equipment

Electrical machinery apparatus and appliances, n e s, and

electrical parts thereof

367

510

664

Road vehicles (including air-cushion vehicles)

179

276

Others

803

985

1 347

Sub-total

1 232

1 673

2 287

Miscellaneous manufactured articles

Articles of apparel and clothing accessories

289

309

464

Professional, scientific and controlling instruments and

apparatus, nes

3454

Photographic apparatus, equipment and supplies and

optical goods, n e s; watches and clocks

890

1 059

1 268

Miscellaneous manufactured articles, n e s

408

417

560

Others

111

168

242

Sub-total

1732

1995

2589

Commodities and transactions not classified according to kind

Total merchandise

8 928

9 829

13 197

Gold and specie

240

Grand total

9 168

9 841

13 279

258

Appendix 5

(Chapter 3: Financial Structure)

Exchange Value of the Hong Kong Dollar

Par value of

the HK$ in

December 18, 1946

IMF parity established

September 18, 1949

grams of

fine gold, as

HK$1 =

£1=

US$1 =

SDRI-

reported to

the IMF

US$

SDR

HK$

0.223 834

0.062 5

0.2519

16.00

3.970 22

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

14-545 5 6.060 61

0.146 631

0-068 75

0.179 14

0.165

14-5455 5-58213 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 0.146 631*

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*

Note:

0.196 657 0.163 018

5-085

6.13429

* 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

259

$ Million

GDP component

1975

1976

1977*

Private consumption expenditure

28 505

33 144

40483

Government consumption expenditure

2711

3 120

3 756

Gross domestic fixed capital formation

7 798

9 556

12765

Increase in stocks

138

674

148

-1 884

732

-2316

Exports less imports of goods and services

Gross domestic product at current market prices

Less indirect taxes less subsidies

37 268

47 226

54 836

2096

2655

3 164

Gross domestic product at current factor cost

35 172

44571

51 672

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

17062

19 219

22214

1 451

1 570

1 779

4 062

4711

5 891

130

336

-2475

-2 228

-3 533

Gross domestic product at constant market prices

20 230

23 608

26415

Note: Provisional estimate.

•

260

Appendix 7

(Chapter 3: Financial Structure)

Government Revenue and Receipts by Source (note 1) (See also Appendix 7a)

Item

Direct taxes

Earnings and profits tax

Estate duty

Sub-total

Indirect taxes

Actual 1976-7

Actual 1977-8

Recur-

rent Capital

Total

rent Capital

Total

$ Million

Estimate 1978-9

rent Capital Total

2 698-7

85-2

2 698.7

85.2

3 357-2

109.7

3 357-2

109-7

3.990.0

120.0

3 990.0

120.0

2 698.7 85-2 2783-9

3 357-2 109.7 3466-9

3 990.0 120.0

4 110.0

General rates

618.7

618-7

722.9

795-0

795.0

Excise duties

680-7

733.6

733-6

741.8

Royalties and concessions

113-1

113.1

134.4 112.4 246.8

148.6 240.0

388.6

Stamp duties

427.7

490.0

395.0

Other taxes (note 2)

404.6

530.2

694.0

694-0

Sub-total

2 244.8

2611-1

112.4 2723.5

2 774-4

240.0 3014-4

Other revenue

Fines, forfeitures and penalties

Licences

Provision of goods and services

Income from properties and investments

Sub-total

　　　　　　　　　Reimbursements, contributions and loan repayments

Reimbursements

Contributions

Loan repayments

Sub-total

Grants and loans

Grants

Loans

Sub-total

Total

70.5

240.0

70.5

240.0

86.3

269.9

86.3

92.0

269.9

282.3

1 089.5

www

1 089.5

1 154-7

1211.7

282.3

1211.7

368.3 557.3

925.6

442.1 1831-3

2273-4

438.0

874.5

1 312.5

1 768.3

557-3 2325-6

1953-0 1831-3 3784-3

2 024.0

874-5 2898-5

101.4

101-4

186.9

177.7

177-7

36.2

42.5

44.0

1.6

1.5

137.6

1.6 139.2

229.4

1.6

231.0

221.7

1.5

223.2

26.9

26-9

9010-1 1 236-0 10 246-1

6 849.4 644.1 7 493-5 8 150-7 2081-9 10 232-6

Note: 1 Government revenue excludes the income of the Housing Authority, the Urban Council and various funds

established by Resolution of the Legislative Council.

2 Other taxes comprise taxes on bets and sweeps, entertainment, hotel accommodation and motor vehicles.

Appendix 7a

Government Revenue and Receipts by Source

$ Million

11 000

10 000

9 000

8 000

Actual

$3 467

7 000

6 000

5 000

$2 784 million 37%

4 000

3 000

2 000

$2 245 million 30%

1 000

million 34%

$2 724 million 27%

Actual

Estimate

$2 465 million 33%

$4 042 million 39%

1976-7

1977-8

$4 110 million 40%

$3 014 million 29%

$3 122 million 31%

1978-9

Direct

taxes

Indirect taxes

Other

revenue

261

262

Appendix 8

(Chapter 3: Financial Structure)

　　　　Government Expenditure by Function (note 1) (See also Appendix 8a)

$ Million

Actual 1976-7

Actual 1977-8

Estimate 1978-9

Recur-

Item

General services

rent Capital

Total

rent Capital

Total

rent Capital Total

Administration

127.5 12.8 140.3

154.6

16.2

170.8

191.0 30.3

221.3

Law and order

704.8 59.2

764.0

825.2

80.8

906.0

923.6

100.7

1 024.3

Defence

212.1

40-5

252.6

285.5

102.9

388.4

347.1 122.3

469.4

Public relations

30.7

8.5

39.2

40.0

1.5

41.5

Revenue collection and financial control

106.1

0.4

106.5

124.2

3.9

128.1

48.6 148.4 4.8

1-6

50.2

153.2

Sub-total

1 181.2

121-4 1302-6

1 429.5

205.3

1 634.8

1 658.7

259.7 1918.4

Economic services

Primary products

35.9

1.7

37.6

42.4

8.8

51.2

53.3

24.7

78.0

Airport and harbour

61.6

66.0

127.6

74.3

46.3

120.6

84.2

44.6

128.8

Commerce and industry

25.8

0-1

25.9

30.9

0-7

31.6

36.3

1.6

37.9

Communications

201.6

36.8

238.4

220.4

38.0

258.4

248.7

56.4

305.1

Other

122.2

8.6

130.8

149.1 13.5

162.6

163.1

6.6

169.7

Sub-total

447.1 113.2

560.3

517.1 107.3

624.4

585.6 133.9

719.5

Community services

Transport, roads and civil engineering

(note 2)

Water

Fire Services

91.3

Amenities and related services

75.3

203.6 535-0 182.4 294-1

9.1 100-4 40.3 115.6

738.6

476.5

245.3 1 189-4 336-0 136.9

1 434.7 472.9

Sub-total

552.6 878-5 1431.1

102.7 25.6 72.8 60.6

756-8 1412-5 2169-3

128.3

133.4

290.4 997-7 1288.1 314.2 189-9 504.1 114.3 49.0 163.3 85.9 50.5 136.4

804-8 1287.1 2091-9

Social services

Education

Medical and health

1 319.6 83-1 1 402-7

633-7 14.5

648.2

Housing

97.6 119.9

217.5

1 534.0 723-7 74.3

90.9 1 624.9 32.0 755-7

1 708.0

209-5 1917.5

823-7

67-3

891-0

857.9

932-2

73.1

924.9

998.0

Social welfare

356.3

2.8

359.1

387.6

5.1

392-7

528.1

6.8

534.9

Labour

19.6

24-2

0.1

24.3

32.2 0.9

33.1

Sub-total

2 426.8 220-3 2647-1

2 743.8

986-0 3729-8

3 165-1 1209-4 4374-5

Common supporting services

Government launches and dockyard

24.3

1.9

26.2

22.4

2.0

24.4

24.3

3.4

27.7

Government printing

20.7

0.3

21.0

19.3

1.4

20.7

24.6

3.3

27.9

Government supplies

6.4

1.5

7.9

33.4

0.4

33.8

29.1

1.1

30.2

Building development and electrical

and mechanical engineering offices

198.7 16.4

215.1

239.0

26.1

265.1

295.2

19.3 314-5

Sub-total

250.1

20.1 270.2

314-1

29.9 344.0

373.2

27.1 400.3

Unallocable expenditure

Government quarters

Passages, telephones, telegrams, etc

30.6 121.1

7.9 2.5

38.5 123.6

47.7 20.8 68.5 155.6 10-9 166.5

49.2 20.2 408.4

69.4

3.0 411-4

Sub-total

151.7 10.4 162.1

203.3 31.7

235.0

457.6 23.2

480-8

Other financial obligations

Public debt

Pensions and gratuities

Sub-total

Total

20.1 193.8

3.6

23-7 193-8

20.7 233-9

213.9

3.6

217.5

5 223-4 1 367.5 6 590.9

25.7 233.9

254-6 5.0 259.6

6219-2 2 777-7 8996-9

5.0

20.9 256.6

3.0

23.9 256.6

277.5 3.0 280.5

7322-5 2943-4 10 265-9

Note: 1 Government expenditure excludes the expenditure of the Housing Authority, the Urban Council and various funds

established by Resolution of the Legislative Council.

2 Excluding civil engineering works directly allocable to other services.

Appendix 8a

Government Expenditure by Function

$ Million

11 000

10 000

Actual

9 000

8 000

7 000

Actual

6 000

$3 730 million 42%

$4 375 million 43%

5 000

$2 647

million 40%

4 000

$2 092 million 20%

$2 169 million 24%

$1 431

3 000

Estimate

Social services

263

Community

services

million

General services

22%

$1.303

2 000

$1 635 million

$1 918 million

19%

million

18%

$720

20%

Economic

million

$624

$560

services

million

1 000

$650

million

$839 million

10%

$1 162 million 11%

Other expenditure

1976-7

1977-8

1978-9

264

Appendix 9

(Chapter 3: Financial Structure)

Comparative Statement of Recurrent and Capital Income and Expenditure

265

Income

Expenditure

Actual 1976-7

Actual Estimate 1977-8 1978-9

Actual

1976-7

1977-8

$ Million

Estimate 1978-9

Direct taxes

Indirect taxes

Duties

General rates

Recurrent Account

Earnings and profits tax

Recurrent Account

Personal emoluments

2135.0

2475.0

2 771.3

2 698.7

3 357.2

3 990.0

Departmental recurrent expenditure

793-8

844-6

1 064-0

680.7

733.6

741.8

Public Works Recurrent

287.1

457-6

472-4

618.7

722.9

795.0

Subventions

1 121.7

1 327.0

1 524.4

Internal revenue (note 1)

730.3

872.2

924.0

Motor vehicles taxes

102.0

University and Polytechnic Grants Committee

255.4

306.8

332.7

148.0

165.0

Franchises

51.3

63.4

73.9

Defence

194.8

270-3

329.3

Airport concessions

61.8

71.0

74-7

Pensions

193.9

233.9

256.6

Other revenue

Miscellaneous

241.7

304.0

571.8

Fines, forfeitures and penalties

70.5

86.3

92.0

Licences (note 2)

237.0

267.4

280-0

Transfer to Capital Account

723-4

695-8

1 707.4

Fees and receipts

417.4

509.6

496.1

Surplus

902.6

1 235-7

Revenue from properties and investments

322.9

375.2

371-3

Reimbursements

140.0

231.8

224.3

Water

222.2

206.7

229.0

Postal services

288-0

266.6

286.1

Airport and air services

175.2

200.3

223.8

Kowloon-Canton Railway

32.7

38.5

43.1

Deficit

19.8

6 849-4

8 150-7

9 029.9

6 849.4

8 150-7

9 029.9

Capital Account

Direct taxes

Estate duty

Indirect taxes

Taxi concessions

Other revenue

Capital Account

Public Works Programme (other than New Towns and

85.2

109.7

120.0

Housing)

Building

143.7

169.9

178-9

112.4

240.0

Engineering

254.9

406.3

440.8

Waterworks

268-4

107.3

138-2

Land sales

557.3

1 831.3

874-5

Public Works Non-recurrent: Headquarters

60.1

69.2

99.9

Loan repayments

1.6

Loans and grants

1.6 26.9

1.5

Deficit on Capital Account met by transfer from Revenue

Account

Public Works Programme (New Towns and Housing) Transfer to Development Loan Fund for Housing Authority

400-9

684.2

750-2

100.0

400.0

723.4

695.8

1 707-4

Transfer to Home Ownership Fund

587.1

399.4

Other capital expenditure

Subventions

32.1

52.5

113.9

University and Polytechnic Grants Committee

40.1

24.5

70.8

Departmental special expenditure

74.4

76.2

201-0

Defence Costs Agreement: Capital works

22.0

23.4

29.5

Miscellaneous (including public debt)

70-9

477.1

120-8

1 367.5

2777.7

2943-4

1367.5

2777.7

2943.4

Note: 1 Comprising taxes on bets and sweeps, entertainment, hotel accommodation and stamp duties.

2 Including business registration fees.

266

Appendix 10

(Chapter 3: Financial Structure)

Revenue from Duties*

Item

Actual 1976-7

Actual

1977-8

$ Thousand

Estimate 1978-9

Import duty on

Hydrocarbon oils

188 522

216673

215000

Intoxicating liquor

202 765

213 899

210000

Liquor other than intoxicating liquor

3 971

4144

4500

Tobacco

250 382

255 671

267 000

Duty on

Locally manufactured liquor

Methyl alcohol

Total

34 874

146

42966

275

45 000

290

680 660

733 628

741 790

Note: * These figures represent net revenue collected, ie after deducting refunds and drawbacks of duty.

Licence Fees under the Dutiable Commodities Ordinance

Hydrocarbon oils

Liquor

Tobacco

Miscellaneous

Total

214

218

220

4 682

4766

4651

817

806

794

5 724

5804

5679

Miscellaneous Fees (Commerce and Industry)

Denaturing

Bonded warehouse supervision

Total

426

356

270

1969

2095

2054

2 394

2451

2324

Appendix 11

(Chapter 3: Financial Structure) Money Supply

267

$ Million

1976

As at end of year 1977

1978

Legal tender coins and notes in circulation

Commercial bank issues (A)

The Hongkong and Shanghai Banking Corporation

3 942.00

4 729.00

5854.00

The Chartered Bank

785-03

1000-48

1132.25

Mercantile Bank

29.47

29.14

Government issues (B)

One thousand-dollar gold coins

35.46

58.23

81.82

Five-dollar coins

45.00

115.50

149.99

Two-dollar coins

46.50

64.50

96.78

One-dollar coins

161.37

192.82

252-72

Subsidiary coins

One-cent notes

Demand deposits with licensed banks (C)

131.48

164.77

207.26

0.76

0.77

0.81

9 667.00

12 650.00

15733.00

Time deposits with licensed banks (D)

18 423.00

19 616.00

26275.00

Savings deposits with licensed banks (E)

15 940.00

20 753.00

Licensed banks' holdings of legal tender (F)

794.00

Money supply:

Definition 1 (A+B+C−F)

14 050-07

Definition 2 (A+B+C+D+E-F)

48 413.07

18 081-21 58 450-21

924.00

24850.00

1 227.00

22281.63 73 406.63

Appendix 12

(Chapter 3: Financial Structure) Banking: Liabilities and Assets

Number of licensed banks

1976 74

As at end of year 1977 74

$ Million

1978 88

Liabilities

Deposits:

Demand

9 667

12 650

15733

Time

18 423

19 616

26275

Savings

15 940

20 753

24 850

Amount due to banks abroad

27 598

36 850

51 385

Other liabilities

8 170

10 497

13 624

Total liabilities

79 798

100 366

131867

Assets

Cash (legal tender notes and coins)

794

924

1227

Amount due from banks abroad:

Demand and short term claims

22 448

28 952

37425

Time deposits

3 301

5 200

13381

Loans and advances:

Abroad

Hong Kong

Investments:

Hong Kong

Abroad

Other assets:

　　　　Hong Kong Abroad

Total assets

29 480

36 856

52814

13 255

18 793

16411

3 251

3836

4294

101

137

3 666 3 529

4218

5980

1 486

198

79 798

100 366

131 867

268

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

Textiles

Dec 1976 Dec 1977 Dec 1978

1 190

1 117

1 163

15 209

15 274

16351

2958

3 260

3 543

784

774

768

3.902

3 721

3615

115 912

102 461

97 013

Wearing apparel, except footwear

8 622

8714

9 070

265913

251 273

266 447

Leather and leather products, except footwear

and wearing apparel

138

132

142

2359

2 075

2157

Footwear except rubber, plastic and wooden

footwear

468

452

437

4976

5.001

5 059

Wood and cork products, except furniture

1 223

1 288

1 296

7 691

7 868

7876

Furniture and fixtures, except primarily of metal

1236

1 299

1 399

8 494

8 732

9 183

Paper and paper products

1 009

1 086

1 091

9 002

9 619

9785

Printing, publishing and allied industries

1 881

2062

2181

22 353

22.091

23 278

Chemicals and chemical products

439

447

501

5 534

5 822

6231

Products of petroleum and coal

Rubber products

359

372

399

6312

5 394

6131

Plastic products

3 844

3 995

4 314

76994

78 449

84 415

Non-metallic mineral products, except products

of petroleum and coal

303

332

350

3947

4 056

4 479

302

326

330

3 807

4 100

4 360

Basic metal industries

Fabricated metal products, except machinery

and equipment

6113

6481

7 034

69 781

70931

77 758

Machinery except electrical

1 354

1 386

1 413

11971

11967

12 503

Electrical machinery, apparatus, appliances

and supplies

1 228

1 332

1 499

88 057

89 525

96 695

Transport equipment

248

270

303

11 810

12 205

13 399

Professional and scientific, measuring and

controlling equipment, and photographic and optical goods

442

470

601

18 449

20 635

25 772

Other manufacturing industries

1968

2251

2 428

Total

36303

37 568

39 606

21 415

773 746

23 572

755 108

26747

800 026

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

Industry

Textiles

Bleaching, dyeing and finishing

Establishments

Dec 1976 Dec 1977 Dec 1978

Dec 1976

Persons engaged

Dec 1977

269

Dec 1978

640

603

607

17 720

Cotton knitting

329

299

293

7 086

16994 6 052

17 891 4999

Cotton spinning

20 464

18 892

16816

Cotton weaving

418

382

398

32 769

25 167

25 566

Made-up textile goods except wearing apparel

408

389

421

4 743

4 461

4 545

Wool spinning

1 478

1 538

1 356

Woollen knitting

1 098

1 046

911

16 789

15 796

12 651

Wearing apparel, except footwear

Garments

6 596

6519

6717

Gloves

354

374

388

211 098 12256

198 519 11 395

208 328 11 241

Footwear except rubber, plastic and wooden

footwear

Shoes

422

395

382

4 246

3 927

4 114

Furniture and fixtures, except primarily of metal Wooden furniture

920

961

1 015

6 450

6 701

6773

Paper and paper products

Paper boxes

708

762

743

6956

7 205

7 085

Printing, publishing and allied industries

Job printing

1 399

1 542

1 641

14 661

14 554

15 240

Newspaper printing

3 583

3.602

3 873

Rubber products

Rubber footwear

168

171

195

4 799

3 858

4 518

406

422

423

6 885

6 865

6 124

1 364

1 400

1 498

41 119

42 369

45 367

2014

2117

2295

28 525

28 765

32 218

Plastic products

Plastic flowers and foliage

Plastic toys

Plastic products (miscellaneous)

Fabricated metal products, except machinery

and equipment

Aluminium ware

113

2706

2836

Electroplating

484

505

537

4 352

4 442

3415 4926

Metal toys

117

127

170

3 853

3 438

4 320

Padlocks and bolts

124

136

155

2 067

2 289

2 524

Pressure stoves and lanterns

1 581

1 678

1 641

Tools and dies

816

953

1 076

4 320

4973

5 654

Torch cases

3 745

3 732

Wrist watch bands

285

305

348

6443

6 650

4978 6993

Electrical machinery, apparatus, appliances and

supplies

Dry batteries

2283

2 663

Electric bulbs

2 203

2 520

Electronics

672

711

793

70998

70 188

2 595 2003 73736

Transport equipment

Aircraft repairing

Ship building and repairing

268

2 876

7 062

2846 7 244

3 096

7880

Professional and scientific, measuring and controlling equipment, and photographic and

optical goods

Cameras

Watches and clocks

345

368

88989

475

4 388 12 880

4 133 15 326

3.993 20 296

Other manufacturing industries

Jewellery and related articles

609

Wigs

668 42

692 39

7 328

7 849

938

826

7 884 724

Note: Figures refer to all manufacturing establishments known to the Census and Statistics Department, including those

registered with or recorded by the Labour Department.

270

Appendix 15

(Chapter 4: Employment)

Reported Occupational Accidents

1976

1977

1978

Non-

Cause

Fatal

fatal

Total

Fatal

fatal Total

Fatal

fatal Total

Machinery: power driven

9 894

9 906

9 368

9376

8 805

8812

Machinery: other

724

638

639

461

462

Transport

1 703

1 749

1 157

1210

1 492

1 540

Explosions or fires

305

333

250

257

313

321

Hot or corrosive substances

2080 2080

2315

2317

2424

2 426

Gassing, poisoning and other

toxic substances

Electricity

102

122

128

137

158

Falls of persons

4 639

4 684

5 273

5 332

5 801

5 848

Stepping on or striking against

objects

8 862

8863

13 164

13 175

16 150

16 164

Falling objects

2 354

2368

2817

2845

2959

2970

Falls of grounds

Handling without machinery

5 765

5768

6 743

6 744

6 103

6 108

Hand tools

Miscellaneous

Causes not yet ascertained

Total

4 379

4 275

4 745

4 747

3963

4 053

3 377

3 463

1659

1738

2 270

2296

249

44 808 45 057

265

49 589

49 854

278

53 374

53 652

Note: Figures for 1978 are subject to amendments.

Appendix 16

(Chapter 4: Employment)

Consumer Price Index (A) (July 1973-June 1974-100)

271

Monthly average

Index for December

Item

All items

Weight

1976

1977

1978

1976

1977

1978

100.00

111.2

117.7

124-7

112

117

127

Foodstuffs

56.60

106.3

113.5

121.3

106

111

121

Housing

14.08

115.8

124.3

130.3

121

127

137

Fuel and light

3.39

132.6

134.9

134.7

132

135

Alcoholic drinks and tobacco

2.65

129.1

133.4

141.7

131

137

147

Clothing and footwear

3.82

97.9

100-8

103.3

101

103

107

Durable goods

1.41

106.4

109.2

114-4

107

110

119

Miscellaneous goods

4.58

119-8

124-7

133.2

123

125

137

Transport and vehicles

4.36

111.9

115.3

121.7

113

117

128

Services

9.11

123-3

129.9

137.1

126

133

140

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)

Item

All items

Weight

1976

Monthly average

1977 1978

100.00

111.8

Foodstuffs

47.82

Housing

16.79

107.0 115.0

Fuel and light

2.71

131.5

Alcoholic drinks and tobacco

2.04

Clothing and footwear

5.92

125.7 97.6

Durable goods

2.97

104.6

Miscellaneous goods

5.17

Transport and vehicles

Services

5.11 11.47

117.2 116.3

122.4

117.9 114.3 123.1 133.9 130-1 100.3 106.8 121.3 119.9 130.3

124.9

121.9

129.4

133.7

137.5

102.3 111.8 129.9 125-3 138.0

m m

1976

Index for December

1977

1978

113

118

107 119 131

112 126 134

128 123 136

134

128

133

100

105 120 118

102 107 122

142 106 117

135

121

130

125

134

141

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)

Item

All items

Weight

1976

Monthly average

1977

Index for December

1978

1976

1977

1978

100-00

109.7

115.3

121.8

111

116

126

Foodstuffs

26.27

106.6

113.4

120.6

107

112

122

Housing

28.14

105.0

107.8

113-8

106

110

117

Fuel and light

2.53

128.5

130.3

128

131

130

Alcoholic drinks and tobacco

0.73

121.8

125.3

131-4

124

127

135

Clothing and footwear

6.11

98.2

101.5

104.8

106

110

Durable goods

3.88

101.4

102.9

106.6

102

104

108

Miscellaneous goods

4.36

113.5

117-3

123.7

116

118

128

Transport and vehicles

7.47

124.2

127.8

132.8

126

129

136

Services

20-51

116.2

127.0 137-3

119

130

147

Note: The weights are derived from households with monthly expenditure between $3 000 and $9 999 in 1973-4.

272

Appendix 17

(Chapter 5: Primary Production)

Estimated Local Production of Crops, Livestock, Poultry and Fish

Item

Crops

Unit

1976

1977

1978

Rice (unhusked)

tonne

3.400

1 400

Other field crops

tonne

7 500

3 500

400 2700

Vegetables (fresh, frozen or simply preserved)

tonne

186 000

194 000

175 000

Fresh fruits and nuts

tonne

2 600

3 100

2 600

Flowers

$ thousand

31 753

34 698

39 414

Livestock and poultry

Cattle

Sheep, lambs and goats

Pigs*

head

2200

1900

2 300

head

―

thousand head

367

403

Chickens

tonne

21 600

27 100

Other poultry

tonne

6000

7 200

500

27 500

10900

Dairy products and eggs

Milk (fresh)

Eggs (fresh)

tonne thousand

4.800

140 256

4 500

165 600

4 100 183 944

Fish and fish preparations

Marine water fisht

Fish (fresh, chilled or frozen)

tonne

113 400

Fresh water fish

tonne

5 200

118 200 4 180

122410

5 790

Fish (dried, salted or smoked)

Marine water fish

tonne

4 100

4 160

Crustacea and molluscs (fresh, frozen, dried, salted, etc)

tonne

26000

23 640

4 050 22.090

Fish products and preparations

tonne

1 800

1 550

1310

Crustacean and mollusc products and preparations

tonne

230

440

Meals (animal feeding stuffs)

tonne

6 200

6060

6400

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.

Appendix 18

(Chapter 5: Primary Production)

Local Production and Imports of Ores and Minerals

Item

Iron ore

Quartz

Feldspar

Graphite

Clay and kaolin

Tonnes

1976

Production

1977

Imports

1978

1976

1977

1978

37 058

982

2 062

665

2090

2973

4021

2 299

3 378

3 157

2312

3975

6 327

2171

1 344

1 201

1 305

2466

89 460*

17 682

22 612

26 188

Note: * Including 64 414 tonnes of crude clay.

Appendix 19

(Chapter 5: Primary Production)

Imports of Crops, Livestock, Poultry and Fish

Item

Crops

Rice (unhusked)

Unit

273

1976

1977

1978

tonne

361 916

340 924

343 638

Wheat

tonne

132 260

147 164

124853

Other cereals and cereal preparations

tonne

322 642

Other field crops

tonne

52 709

Vegetables (fresh, frozen or simply preserved)

tonne

297 825

374517

47 655

314977

49 111

325 178

382631

Vegetables (preserved or prepared)

tonne

76 305

73 904

Fresh fruits and nuts

tonne

340 536

353 205

81 148

357 536

Dried fruits and fruit preparations

tonne

32 496

40905

52 796

Flowers

Sugar and honey

Coffee

$ thousand

4760

6 602

tonne

102 787

tonne

17 477

278

113 488

11 212

7 100

118752

2466

tonne

9 765

212

11 351

322

10 101

Cocoa

Tea and mate

Livestock and poultry

Cattle

head

202 661

203 031

205 992

Sheep, lambs and goats

head

Pigs

thousand head

16739

2826

17 097

16974

2857

2940

Chickens

tonne

13 273

14 354

12766

Other poultry

tonne

12 890

11251

12434

Live animals

tonne

899

120 338

1 070

131 486

1 831

144961

Meat and meat preparations

Dairy products and eggs

Milk (fresh)

tonne

4 633

5 354

7004

Cream (fresh)

tonne

629

817

832

Milk and cream (evaporated, condensed, powdered, etc)

tonne

33 204

34 121

36743

Butter, cheese and curd

tonne

Eggs (fresh)

thousand

Eggs (preserved)

thousand

4 625

895 680

105 408

6050

6 245

1 043 980

1 132 426

89 087

86 724

Fish and fish preparations

Fish (fresh, chilled or frozen)

Marine water fish

tonne

Fresh water fish

tonne

9 253

30 842

8 321 29 833

10617 30 360

Fish (dried, salted or smoked)

Marine water fish

tonne

Fresh water fish

tonne

6419

119

6 940 213

8 354

139

Crustacea and molluscs (fresh, frozen, dried, salted, etc)

tonne

28 682

26 600

28 877

Fish products and preparations

tonne

3 445

2335

2 239

Crustacean and mollusc products and preparations

tonne

1 823

2252

1 760

Oil and fats (crude or refined)

tonne

114

Meals (animal feeding stuffs)

tonne

6 028

7 827

7051

274

Appendix 20

(Chapter 6: Education)

Categories of Registered Schools

Government

Grant

Subsidised

Private

Special education

Total

School Enrolment

1976

109

741

1909

2 814

As at September 30 1977

112

756 1 840

2 765

1978

109

798

1 783

2 749

Kindergarten

Private

161 471

171 879

186 130

Primary

Government and aided

521 574

495 846

Private

102 167

95 421

Sub-total

623 741

591 267

476 050 87 334 563 384

Secondary

Government and aided

125 308

Assisted private

50 107

138996 50 694

Other private

278 376

298 354

Sub-total

453 791

488 044

Post-secondary

Government*

Private

Sub-total

Adult education

Private

2 840

2656

8 735

9 323

196925 7430

325 357

529 712

2 290 9 774

11 575

11 979

12 064

30 097

37 450

39 930

36748

37 831

40 295

Sub-total

Special education

Government and aided

Private

Sub-total

Total

66 845

75 281

80 225

5 675

6 698

5 675

6 698

1 323 098

1 345 148

7730

7 730

1 379 245

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:

Association of Certified Accountants

Association of International Accountants

Institute of Chartered Secretaries & Administrators

Institute of Cost and Management Accountants

London Chamber of Commerce and Industry

1976

Entries 1977

1978

2758

3 139

4 162

2716

2 127

1994

1873

563

1775 637

2095

674

36 198 13 140

41 725 13 500

123 11406 129 18 827

122 9 728 267 18 519 575 2336

44 332 15790

271 12024

270

24 725

668 3245

19 1212

13812

638

90 424

1 048

95 498

1 677

125 971

Pitman Examinations Institute

Royal Society of Arts

Test of English as a Foreign Language (TOEFL)

University of Cambridge

University of London - General Certificate of Education

University of London - External Degree

Associated Examining Board - General Certificate of Education

Institute of Administrative Management

Royal Academy of Dancing

Royal School of Music

Victorian T.A.F.E. Off Campus

522 1 531

New examinations conducted

by the H.K.E.A. as from 1978

Others

Total

Conducted by Hong Kong Polytechnic:

City and Guilds of London Institute Technological Examinations

Council of Engineering Institutions

Institute of Statisticians

Total

1950

535

718

840

478

308

195

2 963

2976

2985

Appendix 22

(Chapter 6: Education)

Hong Kong Students in Britain

275

Course attending

1976

As at December

1977

1978

Professional courses

Engineering

1018

1 151

Secretarial

340

391

1 135 441

English language

222

275

405

Science

188

335

377

Management and business studies

289

307

314

Nursing

610

387

203

Computer science

103

141

181

Accountancy

141

158

166

Law

136

129

135

Education

104

Medical science

103

Arts

Economics

Pharmacy

Textiles

Social science

119

115

Art and design

Architecture

Music

Hotel and catering

Dentistry

Others

161

138

151

Sub-total

3 955

4 119

4 250

General Certificate of Education School children

3 143

3 585

1 449

1920

4 225 2 550

Total

8 547

9 624

11 025

Students Leaving Hong Kong for Overseas Studies

Country

Britain

United States

Canada

Australia

Appendix 23

(Chapter 6: Education)

Expenditure on Education

Recurrent expenditure

Capital expenditure

Grants and subsidies

Grants to Universities and Polytechnic (including rates)

1975-6

1976-7

1977-8

1 698

1 669

2566

3 121

2719

2605

2215

1 858

225

249

2061 215

University and Polytechnic Grants Committee (including university

student grants)

Total

Education expenditure by other departments

1975-6

213 233

12 535

755 542

303 017

869 362 306 854

School year Aug~July

1976-7

229 540 13710

$ Thousand

1977-8

270 291 21 882

1 041 483

5924

7811

341 591

8 829

1 290 251

1 427 277

1 684 076

14 399

15 804

18 342

276

Appendix 24

(Chapter 7: Health)

Vital Statistics

Estimated mid-year population

Births:

Known live births

Crude birth rate (per 1000 population)

Deaths:

Known deaths

1976

1977

4 443 800

4 513 900

1978

4 606 300

78 511*

17.7

80022*

17.7

80 785 17.5

22 628*

23 331*

23 885

　　　　　Crude death rate (per 1000 population) Infant mortality rate (per 1 000 live births) Neo-natal mortality rate (per 1 000 live births) Maternal mortality rate (per 1 000 total births)

5-1

5.2

14.3

13.9

11.8

9.1

8.9

8.3

0.18

0.16

0.06

Note: * Revised figures.

Appendix 25 (Chapter 7: Health)

Causes of Death

1975

1976

1977

Infective and parasitic

854

757

749

Tuberculosis, all forms

646

568

532

Neoplasms

5 126

5 382

5662

Malignant, including neoplasms of lymphatic and

haematopoietic tissues

5 105

5 368

5652

Endocrine, nutritional, metabolic and blood

314

396

366

Diabetes mellitus

215

288

261

Nervous system, sense organs and mental disorders

185

207

202

Circulatory system

5 865

6 699

6737

Heart diseases, including hypertensive diseases Cerebrovascular diseases

3311

3 967

4135

2336

2 520

2422

Respiratory system

Pneumonia, all forms

Bronchitis, emphysema and asthma

Digestive system

3340

3 368

3 607

2188

2119

2312

873

961

913

980

1 158

1 133

Peptic ulcer

164

194

181

Cirrhosis of liver

337

383

352

Genito-urinary system

427

506

523

Complications of pregnancy, childbirth and the

puerperium

Skin, subcutaneous tissues, musculoskeletal system

and connective tissues

Congenital anomalies

395

377

399

Certain causes of perinatal morbidity and mortality

538

493

470

Symptoms and ill-defined conditions

1 682

1 865

1757

Accidents, poisonings and violence

1 420

1 887

1767

All accidents

780

951

994

Suicide and self-inflicted injuries

535

654

629

Total deaths

21 191

23 195

23 459

277

Appendix 26

(Chapter 7: Health)

Hospital Beds

Category of hospitals

As at end of year

1976

1977

1978

Government hospitals

8 618

8 788

8987

Government dispensaries

423

393

Government-assisted hospitals

7913

8 199

8 347

Private hospitals

2175

2 289

2320

Private maternity homes

Private nursing/maternity homes

Total

Appendix 27

(Chapter 7: Health)

Professional Medical Personnel

19 270

19 779

20 135

As at end of year

In Government service

Total registered

1976

1977 1978

1976

1977

1978

Medical doctors

792*

850*

915*

3 127

3 356

3 029†

Provisionally registered medical doctors

(house officers)

155

122

138

210

202

214

Dentists

576

633

611†

Pharmacists

258

284

240+

Midwives (without nursing qualifications)

345

348

338

974

982

Nurses (general, male and female,

excluding student nurses)

2758

3 099

3 219

8 226

8 919

9407

with midwifery qualifications

1 489

1 555

1681

4931

5 179

5421

without midwifery qualifications

1 269

1 544

1538

3 295

3 740

3986

Nurses (psychiatric, male and female,

excluding student nurses)

243

258

286

282

302

327

Nurses (mentally sub-normal,

excluding student nurses)

Note:

* Including unregistrable assistant medical officers.

↑ The decrease in number is due to the removal from the register of the names of persons who are deceased or

have not obtained a practising certificate.

278

Appendix 28

(Chapter 8: Housing and Land)

Number of Quarters and Estimated Persons Accommodated

as at March 31, 1978

Number of Quarters

Rest of

Urban

Tsuen

New