Hong Kong Yearbook - Annual Report for the Year 1979

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NG KONG 1980

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NG KONG PUBLIC LIBRAR

HONG KONG 1980

A review of 1979

市政局公共圖書館UCPL

3 3288 03034552 6

HONG KONG 1980

Editor: Dianne Wood, Government Information Services

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

Government Information Services

Special Contributors: D. K. Lewis (Chapter 1) Tony Turner (Chapter 2)

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

Statistical Sources: Census and Statistics Department

Editor acknowledges all contributors and sources

Copyright reserved

URBAN COUNCIL LIBRARIES

Acc. No

379729

Clan HK 951.25

Author

HON

HKC

    Frontispiece: Night falls on one of the world's most beautiful cities - the view from Jardine's Lookout on Hong Kong Island looking towards the harbour across a stunning panorama of high-rise buildings.

Contents

Chapter

Page

1

THE BOAT REFUGEES FROM VIETNAM

1

2

ENTER THE MTR

3

INDUSTRY AND TRADE

12

19

4

FINANCE AND ECONOMY

36

5

EMPLOYMENT

+

47

6

PRIMARY PRODUCTION

55

7

EDUCATION

62

8

HEALTH

79

9

HOUSING AND LAND

91

10

SOCIAL WELFARE

108

11

PUBLIC ORDER

116

12

IMMIGRATION AND TOURISM

135

13

PUBLIC WORKS AND UTILITIES

140

14

COMMUNICATIONS AND TRANSPORT

149

15

THE MEDIA

164

16

THE ARMED SERVICES AND AUXILIARY SERVICES

170

17

RELIGION AND CUSTOM

176

18

RECREATION AND THE ARTS

181

1920

THE ENVIRONMENT

193

22

21

POPULATION

NATURAL HISTORY

206

209

22

HISTORY

213

23

CONSTITUTION AND ADMINISTRATION

220

INDEX

281

Illustrations

Between pages

Frontispiece

Refugees

Mass Transit Railway

Events of the Year

Lantau

vi-1

4-5

28-9

60-1

Children

76-7

Furniture

108-9

Auxiliary Services

124-5

Post Office

156-7

The Arts

188-9

Boat Festivals

220-1

END-PAPER MAPS

Front:

Hong Kong, Kowloon and the New Territories

Back:

Road and Railway Systems in the Central Urban Area

Appendix

1

UNITS OF MEASUREMENT

Appendices

Page

236

2

OVERSEAS REPRESENTATION

237

3-4

INDUSTRY AND TRADE

238

5-12

FINANCE AND ECONOMY

242

V13-16

EMPLOYMENT

252

17-19

PRIMARY PRODUCTION

/20-23

EDUCATION

24-27

HEALTH

✓ 28-29

HOUSING AND LAND

30-33

PUBLIC ORDER

257

259

261

263

265

34

PUBLIC WORKS AND UTILITIES

269

V 35-37

COMMUNICATIONS AND TRANSPORT

270

38

RECREATION AND THE ARTS

272

39

THE ENVIRONMENT

273

40-42

CONSTITUTION AND ADMINISTRATION

274

43

SOCIAL WELFARE

278

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 according to market conditions. At the end of 1979, the middle market rate was about HK$4.93=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.

REFUGEES

1

www.d

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'Crammed like sardines into a dark stinking hold.' This was the horrifying below-deck scene in the 35-metre-long vessel, Ha Long, when she entered Hong Kong waters on April 15. The 573 refugees on board included 230 children.

Brow

SKYLUCK

     'Patience can snap.' On June 29 some of the refugees on board the Skyluck, which arrived in February, severed her anchor chain. She drifted ashore on Lamma Island, where refugees are seen scrambling up the rocks. They were all then housed in camps.

21

Anything that could be driven by motor or wind.' Exhaustion is etched deep into the faces of this Vietnamese family, whose rickety boat has reached its journey's end in the Government Dockyard.

On June 10, 4,516 such boat people arrived the biggest total in one day.

*

      'Rotten timbers and tattered sails.' A grossly overloaded boat sails into the Western Quarantine Anchorage. Craft like this which made it to Hong Kong did so by hugging the South China coast, putting in to land when supplies were depleted or typhoons threatened.

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'Desperate fugitives of all ages.' Two striking faces, extracted from the mass of humanity' in the Government Dockyard reception centre, reflect the strain and suffering which flight from Vietnam imposed on the very old and the very young alike.

L.3

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     "They moored in the heart of the city.' The Government Dockyard, on June 22, when it held about 10,000 refugees. Beyond the masts of their newly-arrived boats lie the harbour and the high-rise blocks of Hong Kong Island's Central District.

X

X

'Individuals in whom hope, dignity and a sense of purpose must be kept alive.' Young refugees relax outdoors at Kai Tak North Camp. They still face a long wait, but have moved a stage nearer to their ́ goal - resettlement overseas.

1

The Boat Refugees from Vietnam

     FROM New Year's Day when the Panamanian-registered cargo ship Huey Fong lay at anchor just outside Hong Kong waters, her decks crowded with 3,318 refugees -- through to New Year's Eve 12 months later, 1979 was a year overshadowed by one relentless problem: the Vietnam refugees, or boat people. The influx of these refugees, together with large-scale immigration from China, raised real fears that a decade of economic and social achievement might be undermined, communal stability impaired, and plans for further progress thrown out of gear.

The story, which began so dramatically on December 23, 1978, with the arrival of the Huey Fong, went on to reach crisis proportions in the middle of the year when refugees were pouring into Hong Kong at a rate of more than 600 a day, crowding into camps already holding 50,000 people. It was at this crucial time that the British Prime Minister, Mrs Thatcher, called for an international conference on the problem and, soon afterwards, the Governor, Sir Murray MacLehose, flew to London, the United States and Geneva to draw attention to the extremity of the dangers confronting Hong Kong and other countries in Southeast Asia. At this point, the United Nations Secretary-General, Dr Waldheim, announced his decision to call an international conference in Geneva to discuss a catastrophe which could threaten world peace.

It would be agreeable to record that 1979 ended with a clear-cut conclusion; that, as a result of the undertakings and pledges given at the Geneva conference in July, Hong Kong was assured that by a certain date all of the 73,700 refugees it had harboured would be resettled elsewhere, and that the fear of a renewed influx had been dispelled.

Unfortunately, real life is rarely so tidy. At the close of the year, the people of Hong Kong could look back on events and feel relief, gratitude and pride: relief that the influx in the second half of the year had eased; relief, too, that the resettlement pledges made at Geneva had resulted in an increased rate of departures; gratitude to those countries which had helped, notably Canada, the United Kingdom, the United States and West Germany; and pride in the fact that Hong Kong had refused to repel the boat people and send them away to their death.

However what Hong Kong could not do was regard the problem as solved, its dangers belonging to the past. On the last day of 1979, there was a total of 55,705 refugees in Hong Kong awaiting resettlement. Just as the refugee problem projects its shadows into 1980 and beyond, so its origins in the mid-1970s and earlier cannot be overlooked. Other countries, too, must feature in an account of events which thrust Hong Kong into a role on the inter- national stage. In Hong Kong itself, the impact of the crisis can only be understood in the context of past problems and challenges, in particular, the waves of immigration which the territory has sustained in the past 35 years.

2

Pressures and Progress

THE BOAT REFUGEES FROM VIETNAM

     Following World War II, Chinese civilians who had moved from Hong Kong to China returned - and with them many other migrants. The population was estimated to be 1.5 million in 1946; today it is about five million, having increased more than threefold.

      While the flow of people into Hong Kong has been a continuous movement, at least three large surges of immigration can be identified. The first took place in the late 1940s and early 1950s - a period of major change and upheaval which included the establishment of the People's Republic of China. The second surge in 1962 was connected, in part, with serious economic and agricultural problems being experienced in China.

       A third wave of immigration, which started in 1978, is still continuing. Although we may be too close to the process to define its causes, among the factors which have encouraged migration have been recent changes in China that have made it easier for many of its citizens to travel to Hong Kong or to join relatives overseas. Another factor, undoubtedly, has been the attraction of the outward and visible results of a sustained and systematic effort in Hong Kong over the last 10 years, which has resulted in an improved standard-of-living and quality of life.

In dealing with such vast movements of people, all figures are necessarily guesses, but the first two surges of immigration may have brought in more than a million people. As for the third, continuing wave, the estimate is that at least one-quarter of a million people from China both legal and illegal immigrants have settled in Hong Kong in the past

two years.

       In trying to cope with influxes of this magnitude, the administration of a place, so small and so devoid of natural resources as Hong Kong, might be forgiven for praying for a miracle. For the territory, regarded as a small, overcrowded place even in 1946, covers a mere 1,059 square kilometres. One district, the built-up area of Mong Kok in Kowloon, has a population density of 144,000 people to the square kilometre and is reckoned to be the most crowded urban centre in the world. The overall density is 4,487 people per square kilometre, compared with 33 in Malaysia and 22 in the United States. On Hong Kong Island and in Kowloon and Tsuen Wan, where most of the population lives, the ratio is 25,400 people per square kilometre. Most of the territory's 236 islands are precipitously hilly or barren, or both.

      Hong Kong's basic resources remain what they have been from the outset: a splendid natural harbour and an industrious and inventive people.

At one cardinal stage in Hong Kong's fortunes in the past three decades, the ingenuity of the people came to the fore to circumvent the constraints placed by outside events on the role of the harbour. This was in the early 1950s when the side-effects of the Korean War brought to a halt Hong Kong's function as an entrepôt for trade with China. What followed was the historic diversion into manufacturing which set Hong Kong on its path as a provider of textiles and clothing, toys, and a variety of electronic and plastic goods to many parts of the world.

It is the resourcefulness, determination and energy which are so apparent in Hong Kong that have been the hallmarks of collective efforts over the years to provide not only basic shelter, food, water and the chance of work for successive waves of immigrants, but also schools, hospitals, better labour conditions, aid for the aged and needy, and scope for recreation and cultural enjoyment. However, most important of all these efforts and pro- grammes has been the provision of public housing.

       The start of public housing in Hong Kong derived from that first big surge in immigration in the late 1940s and early 1950s. On Christmas Day, 1953, fire destroyed the shanty

THE BOAT REFUGEES FROM VIETNAM

3

     dwellings of some 50,000 squatters in the Shek Kip Mei district of Kowloon. Only a large-scale, publicly-administered remedy could suffice: within weeks, the first blocks of public housing began to rise. In the years that followed multi-storey estates were con- structed - to progressively higher standards - throughout the urban area. By 1971, about one-third of the population lived in public, or publicly-subsidised, housing. Today, the proportion is about 40 per cent - but Hong Kong still has more than one million people living in huts, old overcrowded tenements, and other makeshift and inadequate accommodation.

      Of the various schemes aimed at social improvement, it is not surprising that housing has been the spearhead, winning priority in the allocation of land and attracting world- wide attention because of the scale of its projects. A 10-year housing programme, launched in 1973 and having as its target the rehousing of 1.8 million people by the mid-1980s, is being implemented through the construction of six large new towns in the New Territories, with much of the building taking place on land reclaimed from the sea.

      For the success of such a vast programme, as for the schemes providing new hospitals and schools, it follows that a reliable planning base depends on stable population projec- tions. Sudden large-scale immigration can only be regarded with dread, both by squatters waiting in a seven-year housing queue and by town planners, engineers, architects and administrators.

Yet, ironically, the ambitious New Territories Development Programme must have been enticing to would-be immigrants in China, as word spread there of whole new townships rising at phenomenal speed. Ironically, too, it was when the 10-year housing programme had gathered momentum and was entering its third year that, on April 30, 1975, the city of Saigon fell to the communist forces of North Vietnam and the Viet Cong.

Enter the Freighters

Hong Kong was to experience firsthand the consequences of this momentous event within a few days. On May 4, 1975, when the Queen was beginning her visit to Hong Kong, the Danish container ship, Clara Maersk, arrived in the harbour with 3,743 refugees rescued in the South China Sea. All were landed in Hong Kong, and at very short notice camps were set up to house them until they could be resettled overseas. This process of resettlement was not completed till mid-1978.

The years 1976 and 1977 were marked by a relative lull in the problem, with less than 1,200 refugees arriving in small boats. But it was during this period that Hong Kong took in about 9,000 displaced people and refugees from Indo-China who had either overstayed or entered illegally after changes of government in South Vietnam, Cambodia and Laos. Charter planes were sent to Vietnam to collect another 4,522 people who had never been resident in Hong Kong, but who had close family ties with Hong Kong residents. An additional 450 people came by commercial flights. Eventually, those given refuge in Hong Kong in these ways totalled more than 14,000.

In 1978 the inflow of refugees in small boats increased to a total of 6,609. But the most alarming development was the steadily mounting evidence, in the second half of the year, that Vietnam's authorities were prepared to 'export', as unassimilable politically and economically, a large proportion of the country's Chinese population.

Reports began to reach Hong Kong that people of Chinese ethnic origin throughout Vietnam, who had already been reduced to the status of second class citizens through dismissal from jobs, suppression of businesses and confiscation of property, were now being presented with the direst of options: removal as labourers to 'new economic zones'

4

THE BOAT REFUGEES FROM VIETNAM

in areas of the countryside least capable of sustaining life, or escape by raising enough gold or hard currency to buy permission to leave.

Rumours began to filter through that the Vietnam Government was, directly and through semi-official intermediaries, encouraging the operators of ill-reputed shipping syndicates to make quick and enormous profits from potential fugitives by embarking them secretly on old cargo ships, and dumping them on neighbouring countries under the pretext of having rescued them at sea.

These reports soon proved to be true. In September, 1978, the freighter, Southern Cross, loaded with refugees, tried to enter Malaysian waters and later went aground in Indonesia. In November, the Hai Hong entered Port Klang harbour in Malaysia with more than 2,500 refugees on board. In the same month, the Tung An sailed from Vietnam with a similar number of refugees on a voyage which ended in Manila Bay. Lastly, on December 19, the Marine Department of Hong Kong received a radio message from a cargo ship about 740 nautical miles away stating that she had picked up thousands of refugees from boats sinking in international waters off the Vietnam coast. The ship relayed that she intended to bring them to Hong Kong, despite the fact that her first scheduled port of call was Kaohsiung in southern Taiwan. The ship was the Huey Fong. On December 23, she arrived off Po Toi Island, at the entrance to Hong Kong waters.

The reaction of the Hong Kong Government was twofold. It decided, first, that the refugees - whether they were to go on to Taiwan or not - must be given immediate care and supplies of food and water; and, secondly, that in view of the highly suspect circum- stances of the Huey Fong's voyage, steps must be taken to protect Hong Kong from being exploited and endangered by the organisers of a lucrative illegal traffic in human cargo. Such a trade, carried out clandestinely and in defiance of all conventions and laws of the sea, was likely to swamp the territory with an influx which could conceivably amount to tens of thousands of refugees every week. The potential consequences of inaction were all too obvious: an encroachment of these dimensions could spark off a bitter protest by Hong Kong citizens.

The government acted accordingly. Over Christmas and the New Year it called back from their holidays scores of trained volunteer members of emergency relief organisations, such as the Civil Aid Services. Using them in support of the police, helicopter crews and medical staff, it sent them out to the Huey Fong to put supplies on board and to tend any sick refugees; with the ship reprovisioned, the government repeatedly - but unsuccessfully - urged the captain to continue his voyage to Taiwan. Next, the Legislative Council passed amendments to the Merchant Shipping Ordinance which introduced heavy penalties, in- cluding prison sentences, for the offence of using a cargo ship to bring unauthorised passengers to Hong Kong.

The need for this legislation was highlighted on January 19, when the Huey Fong entered the harbour without permission and the refugees on board were brought ashore. Caches of gold leaf valued at $6.5 million were found in the engine-room. The captain and 10 other people - including three Hong Kong-based businessmen with Vietnam connections - were arrested and charged with conspiracy. Six months later, after a long trial, the 11 accused received prison sentences adding up to more than 50 years for their roles in what the judge called 'a voyage of deceit from beginning to end', motivated by greed for gold. The trial revealed that the refugees had, in fact, been embarked in Vietnamese waters with the connivance and assistance of the local authorities, that secret codes had been used to mask the operation, and that the ship's log-book had been systematically falsified.

The action taken in the case of the Huey Fong undoubtedly deterred plotters of similar schemes from bringing shiploads of Vietnamese refugees to Hong Kong. But it did not stop

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TRANSIT

RAILWAY

V

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1

      Previous page: Hong Kong is moving into the 1980s with a $5,800 million Mass Transit Railway; pictured here is the Kwun Tong station in Kowloon. Above: Rock tunnelling proceeds on the $4,100 3 --- million Tsuen Wan extension of the railway, which is scheduled to open in 1982.

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Mains towards Karun Tong

專用

FIRST TRAIN

Special

1ST MTR PASSENGER TRAIN

■ 下鐵路首班載客列車

首班列車

On September 30, 1979, the first MTR passenger train began its historic journey from Shek Kip Mei

to Kwun Tong carrying the Governor, news media representatives and 1,000 passengers who paid $500 a ticket - the proceeds going to the Community Chest.

L

TO FAR 200

?

     Children and adults at the ticket-issuing machines at the MTR's Kowloon Bay station. The opening of the railway created widespread community interest with 250,000 commuters riding the trains on " October 1, the first day of regular services.

THE BOAT REFUGEES from VIETNAM

5

another freighter, the Skyluck, from entering Hong Kong waters without authorisation on February 7 with 2,651 refugees. This ship was escorted to an anchorage off Lamma Island and, since conditions on board were considerably better than the crowded state in which the Huey Fong had arrived, her inmates were kept on the vessel, where they were to stay for nearly five months, receiving daily provisions and medical care whenever needed.

      There was another even more compelling reason for leaving these refugees on the ship. By March the reception areas on land were crammed to bursting point with the flood of refugees who had arrived, and continued to arrive, in boats.

The Small Boats

In January, 1979, more than 2,000 Vietnamese refugees reached Hong Kong in small boats, to join an existing refugee population of 5,391. Arrivals in January, including those aboard the Huey Fong, totalled 5,395 but departures for resettlement in the same period amounted to only 314. These respective totals set an ominous pattern which was to grow more pro- nounced as the influx swelled inexorably over the next five months. On one black day in mid-May, by which time there were 30,000 refugees in Hong Kong, more than 1,700 people landed, whereas only one left for resettlement.

      They came in on small decrepit craft, rickety junks with rotten timbers and tattered sails -- anything that could be driven by motor or wind, loaded to the gunwales with desperate fugitives of all ages. Watching these frail hulks being towed into the harbour, an observer could well believe estimates that for every refugee who sailed from Vietnam and arrived safely on the shores of a neighbouring territory, another refugee lost his life at sea. Nor could one forget that the summer typhoon season was beginning.

      These boats, arriving daily in Hong Kong, moored not at some discreetly distant beach but in the heart of the city. After being checked at a quarantine anchorage, they moved through the harbour to the Government Dockyard at Canton Road, where they tied up beside one of the most crowded districts of Kowloon, observed by thousands of apprehen- sive residents. Similarly, most of the camps to which the refugees moved from the dockyard were not located in remote parts of Hong Kong but in the urban areas. Several of these camps were overlooked by the multi-storey blocks of housing estates built to accommodate an earlier generation of people who had migrated to Hong Kong. Fellow-feelings for refugees, natural to Hong Kong people, became increasingly tinged with concern.

      From the beginning of March to the end of June, hardly a day passed that did not bring its quota of alarming news. To give but two examples:

      . On March 30, 849 refugees landed from seven boats, all of them unseaworthy and on the point of sinking.

      . On April 15, a 35-metre-long vessel, the Ha Long, forced its way into the harbour with no less than 573 refugees crammed like sardines into its dark stinking hold. Although this boat was suspected of being operated by a 'human cargo syndicate', there was no question of keeping its inmates on board during investigations; all were quickly taken ashore.

      In the same period there were equally alarming developments in the pattern of immigra- tion, legal and illegal, from China. In May, the number of people caught along the land border or at sea trying to enter Hong Kong illegally reached a daily average of 465. It was reckoned that for every person detained about three made their way undetected to the urban areas.

      When the Governor began a two-week goodwill visit to the People's Republic of China in late March, the problem of uncontrolled immigration was one he repeatedly raised with his hosts. The Chinese were sympathetic to Hong Kong's dilemma, and promised action to curb the exodus as soon as possible, but they explained that they had their own difficulties,

6

THE BOAT REFUGEES FROM VIETNAM

including those arising from the armed conflict with Vietnam during which army units had to be moved to the war zone away from the Hong Kong border area.

       About 80 per cent of the boat refugees coming from Vietnam were of Chinese ethnic origin, and by April the accounts which they gave on arrival confirmed that the Chinese community in Vietnam was being systematically forced out of the country. It was also becoming increasingly clear that Hong Kong was getting unfavourable treatment in terms of resettlement. While it was receiving about 35 per cent of the boat people landing on Southeast Asian shores, it was being awarded only 12 per cent of resettlement places.

       Comparisons with Malaysia, which had started to tow some boats back to sea (but from which refugees were being resettled at a monthly rate of 3,000 in contrast to Hong Kong's 600 a month), were inevitable; and it was not surprising that some voices were raised calling for tougher action to deter the boat people. But the government held fast to a humanitarian line, which was summed up by the Secretary for Security, Mr Lewis Davies, when he declared in April: 'I do not believe it would be right or to Hong Kong's credit to send to sea a heavily overloaded ship, thus committing people to the deep, on the basis that they can take their chance somewhere else.'

       The situation reached its worst in May and June. In May, 18,688 refugees arrived and only 500 were resettled; in June, 19,651 arrived and only 1,608 were resettled.

       Yet, in those same two months, international interest in the crisis was beginning to stir. In May, the British Government decided to accept 1,004 refugees rescued by the British cargo ship, Sibonga, and the Prime Minister, Mrs Thatcher, called for an international conference on the problem. The process of winning the world's attention continued in June when the Governor visited London, New York, Washington and Geneva to express warnings that if nothing effective was done internationally patience in the recipient terri- tories could snap, with disastrous results.

       'The number of people coming out of Vietnam is straining the humanity of countries nearby to breaking point,' he said on June 13 on his arrival in London - and he repeated the same warning in meetings with United States government officials in Washington, with senior United Nations staff in New York and with the United Nations High Commissioner for Refugees in Geneva. Asked to comment on the fact that refugees were being forcibly repulsed from some territories, he gave the grim reminder that 'desperate people do desperate things'.

       When he returned to Hong Kong, Sir Murray was able to confirm that the British Government had agreed to reinforce the Hong Kong garrison with an additional unit of infantry, to help the three battalions whose resources were fully stretched along the border in operations to catch illegal immigrants. Britain was also to supply Hong Kong with a fast patrol boat and other equipment.

       In regard to the refugee crisis, he welcomed the fact that the world's attention had been captured, adding it was essential that the pressure of publicity be maintained. In particular, he welcomed the decision of the United Nations Secretary-General to arrange an inter- national conference on the subject. This conference at Geneva, which resulted in pledges of a world-wide resettlement programme and an undertaking by the Vietnam Government to take steps to suspend the 'illegal' departure of refugees, followed a month later, on July 20-1. It came none too soon. On July 21, the refugee camps in Hong Kong held a total of 66,038 people.

Life in the Camps

As the influx of Vietnamese refugees began to build up in the early months of 1979, the Hong Kong Government acted in close liaison with the United Nations High Commission

THE BOAT REFUGEES FROM VIETNAM

7

for Refugees (UNHCR) to press into service all available reception areas and facilities. At the same time, large numbers of government staff were deployed on special duties, co- ordinated by the Secretary for Security, to ensure that the refugees were escorted to the reception areas in an orderly fashion and that they were adequately cared for inside.

       On the government side, much of the burden fell on the Royal Hong Kong Police Force (particularly the marine police) and on the Immigration, Prisons, and Marine Departments. But, in fact, there was no branch, department or agency of government that was not called upon to make a contribution to the handling of the problem. The role of official emergency and relief bodies such as the Civil Aid Services and the Auxiliary Medical Service deserves special mention: many of their volunteer members found themselves putting on uniforms for a night of strenuous duty after doing a full day's work at their normal jobs.

       The strain on manpower and resources intensified throughout the summer. While camps were being set up from scratch, other sites had to be found quickly for further ones. The pressures rose frequently to intolerable levels. On June 1, for example, there were 5,623 refugees still on their boats at the Western Quarantine Anchorage. Five days later, an improvised anchorage at Discovery Bay on Lantau Island held boats with 8,363 people on board, for whom food and water had to be supplied. At this time, the staff of the Social Welfare Department's emergency kitchens were producing about 40,000 hot meals a day for the refugees.

Under these pressures, it is not surprising that conditions in most camps during the summer were both crude and crowded. Thanks largely to the efforts of public health and medical teams, no serious epidemics broke out; and many refugees bore witness that the main reason they had headed for Hong Kong was that it was widely known in Vietnam that Hong Kong's treatment of refugees was more humane and better organised than elsewhere. In the latter months of 1979, there were 12 camps and centres in operation - eight in Kowloon, three in the New Territories, and one on Hong Kong Island. Four of these camps, all in Kowloon, were under the control of the UNHCR and were staffed by members of charitable relief organisations such as the Red Cross, Caritas, the Hong Kong Christian Service and the International Rescue Committee. To these bodies belongs much of the credit for the high reputation Hong Kong earned for its efforts to treat the refugees (insofar as numbers allowed) as individuals in whom hope, dignity and a sense of purpose must be kept alive. Help in various forms also was given by a number of other charitable and religious bodies including the Salvation Army, the Christian and Missionary Alliance and the Save the Children Fund.

      The remaining eight camps were run by the government. They included the Government Dockyard in Canton Road, managed by prison staff on secondment, and two large camps run by the Housing Department at the new town of Tuen Mun in the western region of the New Territories. The premises used ranged from former military camps to factory buildings, fitted out with tiered bunk-beds.

       Throughout the year hundreds of visitors from overseas arrived, with the encouragement of the Hong Kong Government, to see the refugee situation firsthand and to inspect the camps. The camp which many of these visitors will remember most vividly is the arrival and transit centre at the Government Dockyard, where the refugee boats, on their release from the Western Quarantine Anchorage, reached their journey's end.

      From April onwards, when this centre was set up, nearly all refugees spent their first two or three weeks in one of the dockyard's four large godowns, or warehouses. There were periods in the middle of the year when this camp held more than 12,000 people; visitors to the godowns had to thread their way along a quay through hundreds of people - including dozens of naked children showering themselves during the full heat of a summer's day.

THE BOAT REFUGEES FROM VIETNAM

Of necessity, the dockyard was a 'closed' centre which the refugees could not leave until medical examinations, inoculations, and initial processing and listing by immigration staff were completed. But the care given amounted to more than just shelter and two hot meals a day: for example, a sick bay was manned by volunteers from the Auxiliary Medical Service and by doctors and nurses who were refugees themselves.

       After a short spell at the Government Dockyard, the refugees moved on to the less constricted and crowded conditions of an 'open' centre such as the former Royal Air Force camp, managed first by the government and later by the Red Cross at Kai Tak North, or the factory buildings at Tuen Mun run by the Housing Department.

In this second stage of their time in Hong Kong, the refugees were encouraged to find work for it had become obvious, both to the government and to the UNHCR, that a large proportion of them could be staying in Hong Kong for a considerable time. It was clearly preferable for the refugees to be active and at least partially self-supporting, rather than to be idle and prone to the apathy and hopelessness which a long wait can generate. During this stage, processing and listing continued but it was conducted by staff of the UNHCR and by the representatives of potential host countries. A regular occurrence was the rush to a camp notice-board when an announcement was displayed, indicating that a particular country was prepared to offer a certain number of resettlement places to refugees of this category or that. A series of interviews with consular officials followed. Briefings on the various countries and some basic language instruction were arranged, if possible.

       After acceptance by a host country, the third and last stage began. During their final days in Hong Kong, a large number of refugee families moved back to a government departure camp, like the Argyle Street centre in Kowloon. Between it and the airport, the distance is that of a short, sweet bus journey.

       A few refugees were lucky enough to pass through all three stages of the system in a matter of weeks. But these, of course, were the exceptions. In the first seven months of 1979, 66,589 refugees arrived and of these only 6,338 - less than 10 per cent - departed for resettlement. The grim picture reflected by such figures was uppermost in the Governor's mind when he left Hong Kong on July 19 on his second mission to Europe - this time to attend the Geneva conference.

Geneva and After

Speaking at the Geneva conference, arranged under the auspices of the United Nations, Sir Murray described Hong Kong as an over-populated society but also a dynamic one, intent on progress. 'By hard work, social adaptability and realism based on acceptance of the fact that resources are limited, the people have made for themselves a structure of life enormously better than 10 years ago. It is the benefits of this structure that they fear may be eroded by this influx of boat refugees over which they have no control.

       'I can claim with pride,' the Governor said, 'that we have carried out our obligations to the full.' But he went on to draw attention to the feeling, widespread throughout Hong Kong, that in terms of resettlement places the territory was in effect being 'penalised' because of its humane behaviour.

       'The people of Hong Kong ask why proportionately more resettlement places are given to other places of first asylum. This year 35 per cent of the boat refugees in the region came to Hong Kong, but it has only received 13 per cent of the resettlement places. Or, putting it differently, 66,000 arrived this year, but only 5,500 have been resettled. Hong Kong's record as a place of first asylum is unique. But on past experience you cannot

THE BOAT REFUGEES FROM VIETNAM

9

blame people in Hong Kong for drawing the conclusion that help would be greater if policies were harsher. Nor can you blame those who apply harsher policies for concluding that they have paid off.'

In broad terms, the Geneva conference achieved two things. As a result of the pledges made by countries taking part, it provided about 260,000 resettlement places for refugees in Southeast Asian camps (compared with only 130,000 places available before the meeting), together with adequate funds for the UNHCR to administer the resettlement programme. Secondly, it gave rise to an undertaking by the Vietnam Government that 'for a reasonable period of time' it would make every effort to stop 'illegal departures'.

Among the most notable pledges of resettlement places was the United States' decision to accept 14,000 refugees a month from countries throughout the region. The United Kingdom agreed to take an additional 10,000 refugees, all of them from Hong Kong. Canada promised to accept 50,000 by the end of 1980, and the Federal Republic of Germany set itself a new target of 10,000 (a figure which it more than doubled when it revised its objective later in the year).

On his return to Hong Kong on July 23, the Governor spelled out some of the main implications for Hong Kong at an airport news briefing. He described the results of the Geneva conference as a 'major achievement by the civilised world'. The time-table for having refugees resettled from Hong Kong would have to be worked out in further talks with the host countries, he said, but he hoped that by October about 7,000 people would have left and that a monthly departure rate of 4,000 would be established.

Sir Murray agreed that he returned to the territory far happier about the situation than when he departed for Geneva. But Hong Kong's hopes, he stressed, had to be blended with caution. In the first place, the resettlement pledges had to be converted into actual movements: Hong Kong was bent on getting a 'fair deal' out of the pledges, but the dis- cussions with host countries on implementing the programme of departures would take time. In addition, it had to be recognised that while arrivals from Vietnam had indeed dropped dramatically - from a rate of 500 a day in early July to something like a score a day by the time the conference opened - the situation could once more become desperate if the Vietnam Government decided to 'turn the tap on again'.

       Both the hopes and the warnings turned out to be justified. When the Geneva conference opened the tally was 66,038; two months later, on September 21, it was slightly higher - at 66,708. What happened in those two months was that while refugees were departing at a rate of about 100 a day, about 100 a day were still coming in; in fact the highest number of refugees in Hong Kong, 68,695, was recorded on September 11. It was only in the last week of September and in October that departures began noticeably to exceed arrivals and the total number of people in the camps began to fall. On October 31, the figure was 62,809.

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       The month of October also saw a resurgence of the influx of illegal immigrants from China a problem which had subsided in July following action taken by the authorities on both sides of the border. In fact, this pressure of thousands of people trying to get into Hong Kong across the land border or by sea persisted - though at varying levels - through- out the year, exacerbating the nagging anxieties caused by the inflow of boat refugees.

The pressure of illegal immigration from China mounted throughout October. In this one month, Hong Kong's security forces detained and repatriated a total of 11,350 people, many of whom were identified as having made previous attempts to enter the territory illegally. It was impossible to know how many others evaded capture and made their way undetected to the urban areas: one estimate at this time was that for every 10 people caught,

10

THE BOAT REFUGEES FROM VIETNAM

about 18 probably got through. Under these circumstances, it was with some relief that Hong Kong learned on November 2 that Chairman Hua Guo-feng, then visiting London, had told the British Prime Minister that China would take further action to deal with the situation. But relief was qualified by an awareness that remedial measures might not take immediate effect. Indeed they did not: in November 9,245 illegal immigrants were repat- riated, and a further 15,202 were returned in December.

When the Governor turned to the question of the Vietnamese refugees in his speech opening a new session of the Legislative Council in October, he summed up the prospects as follows: "If there are no further large-scale arrivals, we can hope that the problem will gradually diminish over the next year or so. This, of course, depends on the many receiving countries continuing and increasing their efforts, and on Hong Kong getting its fair share of resettlement places. It also, of course, depends on the outward flow not restarting. If it does, it would only be as the result of a deliberate and callous decision by the Vietnamese Government. Their ability to control this movement was amply proved when they stopped it at the time of the Geneva conference.'

With this outlook in mind, Hong Kong pursued to the end of the year the concerted efforts it had made to keep the world informed of the influx and to impress on Hong Kong's friends both the gravity of the problem and the help that a relatively powerless territory needed to survive the dangers intact.

In addition to the many eminent national figures who came out for discussions and who toured the camps, hundreds of representatives of the news media made visits to Hong Kong and were given all possible help in getting the facts for their reports. The material was there: reporters' notebooks filled up apace and thousands of metres of film were shot. In September alone, documentary films for television were made by teams from seven different countries.

Parallel with this effort were the visits made overseas by public servants and leading citizens. In August, the Chief Secretary, Sir Jack Cater, went to Australia and New Zealand, where he forcefully spelled out the challenges that had been met and the difficulties which were to be faced. In the same month an unofficial body, the Hong Kong Community Committee for the Resettlement of Refugees, was taking shape. In September, two of its leading members - Dr Karl Stumpf of the Hong Kong Christian Service and Miss Dorothy Lee of Caritas - left for the United States, Canada, Britain and West Germany. The plea which they made on Hong Kong's behalf echoed and reinforced, on the unofficial plane, the case presented earlier by Sir Murray and Sir Jack.

Counting the Cost

Anyone trying to put together a 'balance sheet' on the refugees faces the difficulty of a large array of imponderable factors. If for most countries of the region 1979 was the Year of the Boat People, it was also the International Year of the Child. But how to quantify the smile of an infant being carried ashore from a horribly overloaded boat? Even if one could, how to balance this against the frustrations felt by, say, an Urban Council planning official over the fact that the refugees housed in the Sham Shui Po camp were, in effect, holding up the construction of a much needed swimming pool complex for the residents of a particularly congested area?

That there have been consolations, even gains of sorts, one cannot deny; but they have been largely of the intangible kind. Outstanding among them has been the conduct of Hong Kong as a community which, in turn, has earned the territory the respect and praise of many people. Three instances must suffice. In April, the United States Government's

THE BOAT REFUGEES FROM VIETNAM

11

then Co-ordinator for Refugee Affairs, Mr Richard C. Clark, said that Hong Kong's reception of the refugees was more efficient and humane than elsewhere in the region. On June 30 a similar tribute was paid by the British Secretary of State for Foreign and Commonwealth Affairs, Lord Carrington, when he visited the Government Dockyard camp and its 12,000 occupants - a visit which was warmly appreciated and which led to a markedly better understanding in London and other capitals of Hong Kong's situation in this crisis. Thirdly, praise for Hong Kong's record was expressed by the Vice-President of the United States, Mr Walter Mondale, during his visit in early September.

      Even more moving was the gratitude, very simply expressed in speech or on paper, that came from refugees themselves. Most letters were of a personal nature: the services for which people were thanked were ones rendered in the course of duty, without thought of praise or reward.

      What of the fact that about 20,000 refugees took paid jobs in the course of the year, providing many manufacturers with much needed labour at a time of nearly full employ- ment? This was a positive factor in the short term but, in actuality, economic motives were not the reason for allowing the refugees to work. Any short-term industrial advantage has to be weighed carefully against the tensions and friction that could arise in the event of a world recession and a cut-back in the manufacturing labour force. Also, one cannot ignore the fact that, while the refugees were pleased to undertake employment, very few of them expressed any wish to stay in Hong Kong so long as the chance existed of resettle- ment elsewhere: they wanted to go to the West. Very few, in any case, had close family ties (unlike the immigrants, both legal and illegal, from China).

      On the debit side, two items could be distinguished. Because of the demands on manpower and resources at the height of the influx, medical care could not always avail to save the lives of newly-arrived refugees who fell ill when already exhausted by their journeys. While such cases did occur, mercifully the death rate among the refugees was low it was not significantly higher than that of the Hong Kong population overall.

      The direct cost to the government of goods, services and facilities provided for the refu- gees up to the beginning of September, when the UNHCR accepted the financial burden for the care and maintenance of all boat refugees in Hong Kong, was about $65 million (US$13 million). By the end of the year the cost to the government had risen to about $72 million, and this amount does not take into account the wide range of indirect costs, includ- ing the use of valuable land resources.

      Without doubt, the losses and damage which hurt most have been like the gains - uncountable. If a more specific pointer is demanded, then, taking into consideration illegal immigrants from China as well as the Vietnamese refugees, the two influxes add up to more than the additional population planned over a five-year period for any of the new towns being developed in the New Territories.

      To attempt more precise calculations on such a 'balance sheet' would be as idle as to invent tidy conclusions. Indeed, the people of Hong Kong could only enter the new year in a mood of sober realism, a mood sharpened by continuing news of the tragic outflow from Cambodia of the victims of famine and armed conflict. It was yet another reminder to Hong Kong that hopes shadowed by uncertainties dominated the scene.

2

Enter the MTR

保障项

跟下

HONG KONG has marked its entry into the 1980s with a significant new achievement: after 10 years of investigation, design and construction, a mass transit railway is now in operation linking major urban centres in Kowloon with Hong Kong Island. An extension of the system to the growing industrial town of Tsuen Wan in the New Territories is now under way and, when this is completed in two years' time, it is expected that passenger movement will be of the order of 1.8 million journeys daily.

The railway now in use - known as the modified initial system (MIS) - has cost $5,800 million. The extension will cost a further $4,100 million.

      The Hong Kong Government - which owns the Mass Transit Railway Corporation - provided the initial equity capital of $800 million. It also accepted further equity of about $350 million in exchange mainly for certain land premia. The rest of the finance was raised by the corporation in Hong Kong and overseas, with the government usually providing a guarantee.

Civil engineering expertise has come from many countries, the work spread in value terms being: Hong Kong 30 per cent; Japan 29 per cent; Britain 25 per cent; Germany six per cent; France five per cent; Sweden three per cent; and the United States two per cent. On the Tsuen Wan extension, the majority of contracts have been awarded to Japanese civil engineering firms, with France also increasing its participation. Similarly, much electrical and mechanical engineering expertise from abroad has been harnessed in respect of both the MIS and the Tsuen Wan extension, with the larger share of these contracts being placed in Britain.

      When the first stage of the MIS opened, it became immediately apparent that it was going to prove a popular form of transport with the public, the great advantage being the frequency and reliability of travel in its air-conditioned carriages.

The construction of the railway is not only Hong Kong's largest-ever engineering project; it is also one of the most challenging and largest in the world. It has been a major undertaking in other ways too - notably in terms of alleviating and coping with the inevitable disruption it has caused, in varying degrees, to virtually all members of the population. Every effort has been made to minimise this, but there have been years of noise, dirt and inconvenience, with not a few people having to move homes or businesses to make way for the railway.

The government and the MTR Corporation made every effort to help and advise every- one affected by the railway's construction, particularly those whose homes had to be acquired to facilitate works and whose businesses were adversely affected. In addition to printed and other media publicity, officers of the Home Affairs, Housing and Labour Departments, the New Territories Administration and the Mass Transit Office of the Public Works Department were always at hand to ensure that people were aware of their

ENTER THE MTR

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rights, to advise them on alternative accommodation, or to help them find jobs in other

areas.

      Statutory compensation payments based on fair market values, as provided under the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance (Chapter 276), were made to owners of land and property acquired for MTR works, to tenants in business and factory premises similarly affected, and to others entitled to claim for losses suffered as a result of MTR works. The ordinance also provided for the right of appeal to the Lands Tribunal if people were not satisfied with the progress of their claims or with the compensation offered them. Apart from statutory compensation payments, a system of ex-gratia payments was also devised to suit individual cases in such areas as disturbance to businesses, financing of new premises and renewal costs. Public housing was also offered to tenants in domestic buildings.

      By the end of 1979, the government had paid out a total of $259 million in compensa- tion $28 million for pecuniary losses resulting from the disruption caused by adjacent MTR works and $231 million for properties resumed, sites cleared and civic facilities reprovided.

      But September 30, 1979, was the day when the public saw for the first time, literally, the light at the end of the tunnel. On this day, the Governor, Sir Murray MacLehose, opened the first eight kilometres of the 26-kilometre, two-line system. This first section - from the industrial area of Kwun Tong, in east Kowloon, to Shek Kip Mei at the northern end of Kowloon's Nathan Road - marked the beginning of what is now the fully- operational line of the MIS. It runs for 15.6 kilometres and links 15 stations. Work on the 10.5-kilometre Tsuen Wan extension is well on the way towards its scheduled opening at the end of 1982.

      To inaugurate the first section of the railway, two trains carrying 1,200 guests, media representatives, and fare-paying passengers sped down the line from Shek Kip Mei to Kwun Tong and back again. Afterwards, a public 'Ride for a Million' was held and 100,000 people paid $10 each to be among the historic first travellers. The proceeds from the day, amounting to $1.2 million, were donated to Hong Kong's communal charity organisation, the Community Chest. The following day, October 1, saw the commencement of regular services and a full-scale test of the railway's facilities when 250,000 commuters surged through its automatic fare gates during the railway's initial operating hours from 6 am to 10 pm.

Ahead of Schedule

     Still working ahead of schedule, and under budget, construction teams completed the entire MIS just a few months later - linking four more stations along a route extending from Shek Kip Mei to Tsim Sha Tsui in December, and under the harbour to the two Central District stations in February, 1980. This brought the total number of stations to 15 nine serving the first section (Kwun Tong, Ngau Tau Kok, Kowloon Bay, Choi Hung, Diamond Hill, Wong Tai Sin, Lok Fu, Kowloon Tong and Shek Kip Mei); then Argyle, Waterloo, Jordan and Tsim Sha Tsui, followed by the Hong Kong Island stations of Admiralty and Chater.

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Twelve of these stations are underground, three are elevated. And they are large; among the world's largest. Most are about 230 metres in length and 30 metres in depth, with the longest being the 380-metre Chater Station in Central District. Their size is all the more impressive in view of the fact that they have been constructed in one of the world's most densely-populated urban areas, and in some of the most diverse geological condi-

14

ENTER THE MTR

tions. Heavily decomposed granite, solid rock, reclaimed land - all called for specialised technology. In many cases, Hong Kong's high water table necessitated tunnelling inside a cocoon of compressed air. Although a design solution for the system was produced by the corporation's lead engineering consultants, with the corporation itself responsible for supervising construction of the project, each tenderer was free to submit his own designs, subject to specifications. Because of the varied geological conditions and the fact that the civil engineering expertise came from many countries, nearly every form of construction was employed.

On the Tsuen Wan extension, all contracts civil, electrical, and mechanical were let at a fixed price in Hong Kong dollars and within given estimates. About half of the Tsuen Wan extension line is being constructed in similar ground conditions to those of the MIS, while the rest is through rock. When completed, the line will link a further 10 stations to the system: one station at ground level, six underground, and three overhead.

How it Began

The development of Hong Kong's mass transit railway system was preceded and attended by a great deal of study and government debate. The recommendation for such a system was first made in 1967 following a government-commissioned study by engineering consultants. The consultants' brief was to consider every aspect of Hong Kong's trans✩ portation problems and to evolve the best solution consistent with the territory's future development. They recommended a high-capacity mass transit service in the main travel corridors, in combination with a complete surface network of public service vehicles. The study was prompted by what had become a perennial nexus: Hong Kong's un- relenting growth and the peoples' need for more and better public transport. At that time, the population stood at 3.8 million - an increase of three million since the end of World War II. Today, the figure is about five million; by 1991 it is estimated that it will have reached six million based on the average annual rate of natural increase. Total daily rides on all forms of public transport during the 13 years from 1965 to 1978 increased by 80 per cent from 3.5 million to 6.3 million.

       The consultants' recommendation to build a mass transit railway was also influenced by the fact that 80 per cent of Hong Kong's population, due to geographical conditions, live in heavily overcrowded land corridors surrounded by mountains and sea. Because of this, any urban road development programme to ease the problem sufficiently would have been possible only after a large-scale programme of property demolition and displacement of people.

A further study in 1970 was more definitive. This recommended a mass transit system with a total length of 52.7 kilometres, composed of four lines: three in Kowloon and one on Hong Kong Island. The government acted on the recommendation two years later when it agreed in principle to the construction of the first phase, called the initial system, with a route length of 20 kilometres.

The government then undertook large-scale surveys and ground investigations, trial tunnels and environmental studies, and developed the detail design of the railway to ensure that all aspects of the system were fully compatible with Hong Kong conditions. In 1973, the government decided to negotiate with four international consortia for the initial system to be constructed under a single contract with a ceiling price and, in 1974, a Letter of Intent was signed by a Japanese consortium. However, in January, 1975, the Japanese withdrew. Within a matter of weeks, the Mass Transit Railway Provisional Authority a government body - announced plans for the modified initial system. The

wrdd

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15

     authority abandoned the single contract concept, and the work was divided into 25 major civil engineering contracts and 10 electrical and mechanical contracts. Tenders were then invited on a multi-contract basis. To supervise the work, the Mass Transit Railway Corporation was established to replace the provisional authority. The corporation, whose board appointments are controlled by the government, is required to operate on prudent commercial principles.

From 1972 to mid-1975, the government constructed additional road capacity to compensate for road areas that would have to be dug up while sections of the railway were built beneath them. It also organised the diversion of all possible utilities before the railway construction began, in order to reduce overall construction time and dis- ruption. At the same time legislation was enacted to compulsorily acquire and pay compensation, including business loss, for property affected by the railway construction. With the government's direct financial contribution to the railway being set at $1,150 million, the MTR Corporation adopted a clear-cut strategy in its moves locally and overseas to raise the rest of the $5,800 million needed for the MIS. This was to ensure that sufficient funds were available in the early stage to cover the completion of the project, and thereafter to refine the terms of loans with a view to lengthening the life of the debts, limiting the corporation's exposure to currency fluctuations, and allowing flexibility of drawdown. Clearly, there were considerable benefits to the corporation in arranging as much fixed-interest debt or Hong Kong dollar loans as possible, and this has been achieved largely through export credits and bond issues.

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For the MIS, some $1,900 million in export credits were arranged for overseas contracts - the major part in currencies of the exporting countries. The credits carried a fixed rate of interest of between 71 per cent and nine per cent, with repayments between 1980 and either 1990 or 1992. For the Tsuen Wan extension, it was possible to arrange about 60 per cent of the credits in Hong Kong dollars, thereby minimising the corporation's exposure to exchange risks. The total amount of export credits available to the corpora- tion is expected to be about $3,900 million. To this has to be added some $460 million arranged with commercial banks to cover specific contracts.

      Public issues made in Hong Kong included a $400 million, 10-year bond issued in 1976 at a rate of 93 per cent per annum, and the issue of $207 million in Guaranteed Registered Notes to licensed banks in 1978 at a price of 99, and with a coupon of 63 per cent, due in 1983. The balance of construction and other costs were arranged in Hong Kong or overseas in the open market, all at floating rates of interest with a margin over the interbank rate or best lending rate. These included a US$600 million facility arranged by a group of banks, Hong Kong dollar loans of approximately $2,100 million, and some $400 million in United States dollar medium-term facilities. In addition, the corporation has overdraft facilities with banks and short-term credit lines which introduce a valuable element of flexibility into the management of the corporation's sources of finance. It is expected that the corporation's cash flow will become positive in 1984, and that all debts will be repaid by 1992.

Rapid Movement

Eventually, the corporation intends to operate the railway for 19 hours a day, between 6 am and 1 am. During the peak periods a two-minute headway will be maintained between trains. The journey time from Kwun Tong to Chater will be 28 minutes; Chater to Tsuen Wan, 30 minutes; and Tsuen Wan to Kwun Tong, 45 minutes. The system has been designed to handle 60,000 people per hour past any given point. This will stand it

URBAN COUNCIL LIBRARIES

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ENTER THE MTR

in good stead when, in the mid 1980s, the number of daily passenger journeys is expected to reach one million on the MIS, with the Tsuen Wan extension adding a further 800,000. These figures will make the railway the most heavily utilised in the world. The London Underground is 15 times as long, but carries only just over 1.5 million passengers a day. When the full MTR system is operational, 40 per cent of all homes and 50 per cent of work places will be within 10 minutes' walk of an MTR station.

      All stations have a fully-automatic fare collection system - the first in Hong Kong to serve users of public transport. It was manufactured to MTR specifications and includes more than a thousand pieces of equipment such as ticket-issuing machines, change machines, and entry and exit gates. The key to the system is a plastic, magnetically- encoded ticket, the size of a credit card, containing such information as its value and the date, time and place of its issue. Fares range from $1 to $3, in 50-cent increments. For all journeys in Kowloon the maximum fare is $2, while on the cross-harbour section $2 is the minimum. An undertaking has been given to hold fares to the same level during 1980 and, hopefully, during 1981 as well.

Once on board the aluminium cars, passengers are whisked underneath the city's jostling road traffic - or suddenly above it on huge concrete viaducts. Speed and utility are paramount, each car being designed to accommodate 327 passengers standing, and 48 sitting on stainless steel seats. At present all trains are made up of four cars, but this will be increased to six later on, and to eight by the mid-1980s. On each car, five pairs of doors enable passengers to board and alight swiftly, while the open layout of the interior allows freedom of movement from one end of the train to the other. Wide, covered vestibules connect all the cars, and only the end ones have operators' cabs.

Safety and Security

As a result of the government's insistence on particular attention being paid to the structural and operational safety of the railway system, Britain's Railway Inspectorate was continuously consulted throughout the various stages of design. In addition, during the later stages of construction and installation, a railway inspecting officer carried out independent inspections of the railway and its organisation, on behalf of the government, to ensure that the railway was safely ready for commissioning. For railway operations, regulations provide for the government to appoint inspectors to investigate any accident occurring on the railway. The appointment of a railway inspecting officer in such cir- cumstances will ensure independent investigation and reports.

The railway has installed one of the most advanced computer control and train opera- tion systems in the world, and with it achieves automatic handling in three crucial areas: operations, supervision, and safety. The heart of the computer network is the control centre at the corporation's Kowloon Bay depot. From there, the staff have overall control of operations, assisted by mimic diagrams, TV displays, and radio and telephone links. The automatic protection system ensures 'fail-safe' control of all routine train movements to prevent collisions. The automatic train operation system provides fully-automatic control between stations. This ensures smooth, efficient operation, and minimises energy consumption. It also strictly controls journey time, motoring, coasting and braking.

One of the major tasks facing the operating department of the corporation was to bring several hundred staff members, with no previous knowledge or experience of underground railways, to a state of readiness that would enable them to run the railway with a high degree of efficiency, and to deal with incidents and emergencies quickly, safely, and with a minimum of inconvenience to passengers. Visits by corporation officials

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      to various other underground railway systems resulted in the setting up of a comprehensive training scheme incorporating sophisticated simulators and a two-storey training school with 30 instructors, an apprentice workshop and drawing office, lecture rooms and classrooms. It is situated beneath the podium at the Kowloon Bay depot and cost $2 million to provide.

Security and crime prevention throughout the MTR system have led to the establishment of a new police division of 137 officers. The main control room for the division is adjacent to the central control room of the railway at the Kowloon Bay depot. Initially, reporting centres have been set up at Chater, Admiralty and Tsim Sha Tsui stations, and a fourth is being considered for Kowloon Tong station, where the interchange of the MTR and the Kowloon-Canton Railway will be located in the future. Full radio coverage of the railway is a further link in the security chain, enabling policemen to make good use of their highly effective 'beat radios'. All crimes or accidents within railway premises can be reported immediately to the central control room for relay to the district police station nearest the scene if further help, or investigation, is required.

Related Development

      Besides being responsible for constructing the railway, the Mass Transit Railway Corpora- tion, in partnership with commercial organisations, is also heavily involved in property development in four locations adjoining the MIS. These are at the Kowloon Bay depot, Argyle and Admiralty stations, and at the old General Post Office site in Central District. At the Kowloon Bay depot, a residential and commercial complex named 'Telford Gardens' is being constructed on a 10-hectare slab of concrete supported on columns 15.8 metres high. This slab is the largest area of concrete at this height anywhere in the world. Beneath the podium is the railway depot, sidings and maintenance areas; above it will be about 5,000 flats for 25,000 people. Extensive community facilities and a large commercial area are also planned. The project is the largest of the corporation's property

ventures.

At the old GPO site, a single tower office block of 26 floors is being built. It houses the concourse to Chater station in its basement, with shops to be built on the ground and mezzanine floors, and alternative shopping or banking facilities on the second and third floors. The corporation has signed an agreement with a commercial concern to undertake this development, and also the one at Admiralty, where two office towers of 26 floors and 35 floors are being constructed on a podium above the station.

At Argyle in Kowloon, a 19-storey commercial, shopping and office block is to be constructed, while on the Tsuen Wan extension a similar development to the one at Kowloon Bay is envisaged. Located at the depot in Tsuen Wan, it will cover about eight hectares and provide about 4,000 flats for 20,000 people and an 8,000-square metre commercial complex. This development is scheduled for completion at the end of 1983. Other sites earmarked for possible development are at Kwai Fong and Kwai Hing.

Looking Ahead

As part of the overall mass transit system, consultants have recommended the building of two further lines. One of these is referred to as the Island Line (running from Chai Wan to Kennedy Town on the northern shore of Hong Kong Island); and the other as the East Kowloon Line (from Western District Market, under the harbour, to Tsim Sha Tsui; then through east Kowloon, past the airport, to Diamond Hill). This line would be suitably positioned for a further link with Sha Tin in the New Territories. However,

18

ENTER THE MTR

any decision to extend the system beyond its current size would have to be made by the government.

Presently under study by the government and the MTR Corporation is the upgrading of Hong Kong's 74-year-old tramway system. It is envisaged that the system might be segregated from other forms of traffic and employ higher capacity, higher velocity, light rail vehicles. Under such a plan, the tram lines would run underground through Central District at Chater and Admiralty stations where provision has already been made to accommodate an Island Line. Further sections of the system could go underground until, in the 1990s, the line could be of a mass transit type. No decision on the matter has yet been reached.

3

問仁

J

Industry and Trade

IN GENERAL, the manufacturing industry performed well in 1979, and achieved an overall rate of growth higher than that in 1978.

      The value of domestic exports in 1979 amounted to $55,912 million - 37 per cent more than in 1978.

      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 and industrial infrastructure, a modern and efficient seaport that includes one of the world's largest container terminals, a centrally-located airport with a computerised cargo terminal, and excellent world-wide communications. 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, except fran- chised buses.

      Apart from ensuring the provision of the infrastructure - either through direct services or by co-operation with public utility companies and several 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.

Industrial Development and Industrial Land

     Light manufacturing industries, producing mainly consumer goods, continue to 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 industries. These industries together accounted for 73 per cent of Hong Kong's total domestic exports. They have, over the years, been steadily introducing modern technology into their manu- facturing processes which is indicated, for example, by the move towards electronic toys and watches. At the same time non-consumer electronics, which require relatively higher levels of technology, are gaining rapidly in significance. In 1979, exports of non-consumer electronic products were valued at $2,392 million representing 36 per cent of total electronics exports.

Since the completion in 1977 of the first stage of Tai Po Industrial Estate, which com- prises 15 hectares of land, work has been proceeding on the production of an additional 30 hectares of land in the second stage. This is scheduled for completion in mid-1980, but sites became progressively available for allocation during 1979. By the end of the year, 24 companies had either taken up or been offered sites in Tai Po Industrial Estate. A second industrial estate, which will make available a further 72 hectares of land, is under

20

INDUSTRY AND TRADE

development at Yuen Long. Both industrial estates are managed by an independent statu- tory body, the Hong Kong Industrial Estates Corporation, which was established in March, 1977.

        The number of sites made available for industrial use outside these estates increased in 1979. A total of 39 sites with an overall area of 90,944 square metres were sold. Special development conditions were attached to nine of them. These conditions called for the provision of heavy loading capacities and high ceilings on certain floors to accommodate certain machinery and, in the case of smaller sites, for 20 per cent of the space provided to consist of units not larger than 75 square metres to cater for small factories.

       The government also proceeded with the construction of flatted factory blocks to accom- modate, in permanent buildings, certain squatter workshops and small operators cleared for public purposes. One of these factory blocks was completed in 1979 and another two are expected to be completed in 1980.

Hong Kong industrialists have responded to increasing competition 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.

Advisory Committee on Diversification

The Advisory Committee on Diversification was appointed by the Governor to advise whether the process of diversification of the economy, with particular reference to the manufacturing sector, could be facilitated by the modification of existing policies or the introduction of new policies. Its chairman was the Financial Secretary and it included 13 prominent representatives of industry, banking and business circles, and two government officials.

The advisory committee completed its work in 1979 and its report was published at the end of the year. The report detailed the existing government policies which the advisory committee considered should be amended, and the new policies which it advised should be implemented to facilitate the diversification of the economy. The government immediately embarked on a study of the implications of the recommendations contained in the report.

Industrial Investment Promotion

The Trade Industry and Customs Department continued to work closely with statutory and non-statutory trade and industrial organisations in the promotion of industrial invest- ment in Hong Kong. Major activities in 1979 included a series of industrial investment promotion missions to Australia, Britain, Denmark, the Federal Republic of Germany, France, Italy, Sweden, Japan and the United States. These missions were combined, where appropriate, with visits to trade and industrial exhibitions and 'transfer of technology' fairs, and the setting up of exhibition stands to publicise Hong Kong as a manufacturing

centre.

      Although most industrial enterprises are Hong Kong-financed and managed, at the end of the year there were at least 427 factories either fully or partly-owned by overseas interests 11 per cent more than in 1978. These factories employed 83,382 workers or 10 per cent of the total work-force in the manufacturing industry. The main sources of such investments are the United States, Japan, Britain, Switzerland and the Netherlands. The principal industries are electronics and textiles, although there were new investments in other fields including the light and medium engineering industries.

INDUSTRY AND TRADE

21

       Following the Hong Kong economic mission to Japan in November, 1978, a Hong Kong/ Japan Business Co-operation Committee was established in February, 1979. The committee consists of leaders in the fields of industry, trade, banking and shipping and includes the chairmen of the Trade Development Council, the Hong Kong General Chamber of Com- merce, the Chinese Manufacturers' Association of Hong Kong and the Federation of Hong Kong Industries. The Hong Kong/Japan Business Co-operation Committee and its counterpart in Japan aim to foster friendship and understanding between the business communities of Hong Kong and Japan and to promote trade, industrial investment and other economic co-operation. The Hong Kong committee and the Japanese committee are to hold joint meetings at least once a year. The first meeting was held in Hong Kong in March and the second in Tokyo in November.

Textiles and Clothing V

The textiles and clothing industries are Hong Kong's largest, together employing about 42 per cent of the total industrial work-force and producing some 43 per cent by value of total domestic exports. The export performance of the spinning and weaving sectors im- proved considerably in 1979 in relation to 1978. Export earnings by the clothing sector improved over 1978, despite the restrictive terms of Hong Kong's current bilateral textiles agreements with the European Economic Community and the United States. Total domestic exports of textiles and clothing in 1979 were valued at $24,196 million, compared with $18,578 million in 1978.

       The output of cotton yarn increased from 170 million kilograms in 1978 to 186 million. kilograms. Production of man-made fibre yarn and cotton/man-made fibre blended yarn was 48 million kilograms in 1979, compared with 47 million kilograms in 1978, and pro- duction of woollen and worsted yarn was 4.6 million kilograms, compared with 4.5 million kilograms the previous year. Most of the yarn produced was used locally.

       The weaving sector, with 31,543 looms, produced 868 million square metres of woven fabrics of various fibres and blends, compared with 788 million square metres in 1978. 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 10 million kilograms of knitted fabrics of which 30 per cent were of man-made fibres or blended cotton/man-made fibres, and 68 per cent were of cotton - compared with 9.3 million kilograms in 1978. 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 yarn texturising, multi-colour roller and screen printing, transfer printing, pre-shrinking, permanent pressing and polymerising.

The manufacture of clothing is the largest sector of the industry, employing some 260,615 workers or about 30 per cent of the total industrial work-force. Domestic exports of clothing in 1979 were valued at $20,131 million, compared with $15,709 million in 1978.

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 products in 1979

22

INDUSTRY AND TRADE

were valued at $6,582 million, compared with $4,741 million in 1978. The industry com- prises 1,075 factories employing 90,567 workers. It produces a wide range of products, including radios, computer memory systems, calculators, transistors, integrated circuits, semi-conductors, pre-packaged electronic modules, television sets, smoke detectors and burglar alarm systems. The borderline between this industry and others, notably toys and watches, is becoming increasingly difficult to define because of the application of electronics technology.

The plastics industry, despite the effects of oil price increases on the cost of its raw materials, fared well in 1979. Domestic exports during the year were valued at $4,808 million, compared with $3,561 million in 1978. The industry has 4,674 factories and 87,853 workers. Hong Kong continues to be the world's largest supplier of toys, which represented the bulk of the plastics industry's output.

The watches and clocks industry continued to expand in 1979, particularly in the electronic watches sector. Domestic exports during the year were valued at $4,623 million, compared with $2,983 million in 1978. The industry has 770 factories employing 31,931 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

Hong Kong shipyards provide a competitive repair service and many of the yards also build a variety of vessels. Several large shipbuilding and repair yards, still under construc- tion on Tsing Yi Island, are now providing services to the shipping industry. The Kwai Chung Container Terminal, which handled the equivalent of 1.3 million 20-foot containers in 1979, together with its complementary repair and manufacturing facilities, also enhances 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 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 1979 amounted to $161,771 million, an increase of 38 per cent over 1978. Imports rose by 36 per cent to $85,837 million; domestic exports by 37 per cent to $55,912 million; and re-exports by 52 per cent to $20,022 million.

       Summary statistics of external trade, including a breakdown of countries, commodities and comparisons with previous years, are contained in Appendices 3 and 4.

Hong Kong is almost entirely dependent on imported resources to meet the needs of its five million people and the requirements of its diverse industries. In 1979, imports of raw materials and semi-manufactured goods totalled $37,507 million, representing 44

INDUSTRY AND TRADE

23

per cent of the year's total imports. There was an active demand for fabrics of man-made fibres ($3,728 million), iron and steel ($2,884 million), watch and clock movements, cases and parts ($2,572 million), woven cotton fabrics ($2,404 million), plastic moulding materials ($2,294 million), and transistors, diodes and semi-conductor integrated circuits ($1,696 million).

Imports of consumer goods, valued at $21,530 million, constituted 25 per cent of total imports. Major imported consumer products were diamonds ($3,624 million), clothing ($1,976 million), radios, television sets, gramophones, records and tape recorders ($1,719 million), watches ($1,667 million), and jade and precious stones, ivory, jewellery, gold- smiths' and silversmiths' wares ($1,014 million).

Imports of capital goods comprised 14 per cent of total imports, with a significant portion being imports of electronic components and parts for machines ($2,059 million), transport equipment ($1,921 million), electrical machinery ($1,296 million), miscellaneous industrial machinery ($731 million), office machines ($664 million), and textile machinery ($588 million).

Imports of foodstuffs amounted to $9,968 million, or 12 per cent of total imports. The principal imported food items were fish and fish preparations ($1,501 million), fruits ($1,368 million), meat and meat preparations ($1,186 million), vegetables ($1,031 million), and swine ($942 million). Imports of mineral fuels, lubricants and related materials were valued at $4,676 million - five per cent of total imports.

      Japan continued to be the principal supplier of imports in 1979, providing 23 per cent of the total. China came second with 18 per cent of total imports and 45 per cent of all imported food and live animals. The United States supplied 12 per cent of total imports. Other important sources were Taiwan, Singapore, Britain, the Federal Republic of Germany, Switzerland and South Korea,

      Domestic exports consisted almost entirely of manufactured goods. Clothing remained the largest sector, accounting for $20,131 million or 36 per cent of total domestic exports, Miscellaneous manufactured articles - mainly plastic toys, dolls and flowers, jewellery, and goldsmiths' and silversmiths' wares - valued at $9,454 million accounted for another 17 per cent. Photographic apparatus, equipment and supplies, optical goods, watches and clocks were valued at $5,126 million, representing nine per cent of the total. Domestic exports of textile yarn, fabrics, made-up articles and related products were $4,065 million or seven per cent of the total, Other important exports included radio broadcast receivers; electrical and non-electrical household-type equipment; diodes, transistors and similar semi-conductor devices; electronic microcircuits; metal products; travel goods; sanitary, plumbing, heating and lighting fixtures and fittings; and footwear.

The direction and level of Hong Kong's export trade are influenced principally by economic conditions and commercial policies in its main overseas markets. In 1979, 63 per cent of all domestic exports went to the United States and the European Economic Community. The United States absorbed 34 per cent of the total, West Germany 11 per cent and Britain 11 per cent. Export sales to Japan rose significantly during the year and amounted to $2,656 million. Other important markets were Australia, Canada, Singapore, the Netherlands and France. Growth of exports to members of the Organisation of Petroleum Exporting Countries (OPEC) continued in 1979.

Re-exports recorded a substantial increase during the year and accounted for 26 per cent of the combined total of domestic exports and re-exports. The principal commodities re-exported were textile yarn, fabrics, made-up articles and related products; pearls,

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INDUSTRY AND TRADE

precious and semi-precious stones; watches and clocks; electrical machinery, apparatus and appliances; and clothing. The main countries of origin of these re-exports were China, Japan and the United States. Japan continued to be the largest re-export market, followed by the United States, Singapore, Taiwan and Indonesia.

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 Arrange- ment Regarding International Trade in Textiles, commonly known as the Multi-Fibre Arrangement (MFA). A feature of the MFA is the Textiles Surveillance Body (TSB) which supervises its implementation. A Hong Kong representative sat on the TSB as a full member in 1979.

As a result of negotiations under the MFA, bilateral agreements were concluded during the year with Austria, Sweden and Switzerland, while the agreement concluded with Finland in 1978 is effective until July, 1980. Under the terms of the agreements, exports of certain textiles from Hong Kong to these countries were placed under restraint or surveillance. A textile agreement between Hong Kong and Canada came into effect on January 1, 1979. The three-year agreement covers most of Hong Kong's exports of cotton, man-made fibres and wool textiles to Canada.

The current bilateral agreement with the European Economic Community 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 42 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.

During the first half of the year, three rounds of textile consultations were held with the United States in accordance with the terms of the Hong Kong/United States Textile Agreement. As a result of these consultations, Hong Kong decided that in 1979 it would not use the carryforward provisions of the agreement for most of the apparel and wool product categories, and that it would not need to use the 1978 carryover of unshipped quantities of fabrics and yarns. Several specific categories of apparel had restraints lifted from them, and an improved consultation clause concerning products not subject to a specific restraint limit was secured.

During the second half of the year, further textile consultations were held with the United States, at which the United States sought certain concessions from Hong Kong regarding the use of flexibility provisions contained in the bilateral agreement. No agreement was reached and consultations were scheduled to resume in January, 1980.

The Hong Kong/United States administrative arrangement on trade in certain non- rubber footwear, which came into effect in October, 1978, provided for a review of the arrangement not later than June, 1979. During the review, Hong Kong declined the United States' request that Hong Kong should consider specific mechanisms to limit the volume of its exports of non-rubber footwear to the United States, but agreed to take additional administrative action.

Norway introduced global import quotas on various textile items on January 1, 1979, under Article XIX of the GATT. Hong Kong had examined the Norwegian action, and

INDUSTRY AND TRADE

25

      was of the view that it was inconsistent with the provisions of the GATT as it was not truly global in nature because it excluded certain countries. Furthermore, Norway failed to make its action consistent with Article XIII of the GATT by allocating to Hong Kong an appropriate share of the so-called global quotas for 1979. Consultations were held between the two governments in May, 1979, but these failed to produce a mutually satisfactory solution. As its rights under the GATT were being impaired, Hong Kong referred the matter to the GATT Council in July, 1979, under Article XXIII: 2 of the GATT, and requested that a panel be set up to assist the Contracting Parties to investigate the matter promptly. A three-member panel was subsequently established and held three meetings in the last quarter of 1979.

       The Multilateral Trade Negotiations, which were launched in 1973 in Tokyo with the object of further liberalising world trade by removing or reducing tariff and non-tariff barriers, were concluded in 1979. Major developed countries agreed to reduce their in- dustrial tariffs by about one-third over a period of seven to eight years commencing in 1980. These tariff reductions will be made on a most-favoured-nation basis, and will therefore automatically apply to Hong Kong. Apart from tariffs, the Tokyo round results consist of 11 multilateral agreements on a number of non-tariff measures, and on im- proving some important provisions of the GATT. Hong Kong has accepted seven of these agreements.

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; however, 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 EEC, 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.

V

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 licensing 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.

A

       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 government-approved certification organisations - the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce in Hong Kong, the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, and the Chinese General Chamber of Commerce. The value of domestic exports covered by certificates of origin issued by the department and the five approved organisations during 1979 was estimated at $18,864 million, of which $11,253 million was covered by government-issued certificates.

26

INDUSTRY AND TRADE

       Form 'A' certificates are issued by the Trade Industry and Customs Department to support exports claiming preferential entry into countries which grant tariff preferences to Hong Kong under generalised preference schemes. These are Austria, Canada, the European Economic Community, Japan, Sweden, Switzerland and the United States. The five government-approved certification organisations have been approved to issue preference certificates for exports to Canada, Japan and Switzerland. The value of exports covered by Form 'A' certificates in 1979 amounted to $13,011 million.

During the year, the Trade Industry and Customs Department was represented overseas at seminars on the generalised preference schemes, organised by the United Nations Conference on Trade and Development and the United Nations Development Programme. Although Britain abolished Commonwealth preferential rates of duty from July 1, 1977, nine Commonwealth countries continue to grant Commonwealth preferential rates of duty to Hong Kong products. To support claims of preference for exports to 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 for Commonwealth preference in 1979 was $19 million.

An estimated 58.1 per cent of Hong Kong's domestic exports are covered by origin cer- tificates of one type or another - 44 per cent of them by government-issued certificates. During the year, representatives of the Trade Facilitation Committee - an advisory body to the Director of Trade Industry and Customs and to industrial and trade organisations on standardising and simplifying trade documents and procedures - attended a series of international trade facilitation meetings in Europe and Canada. These meetings provided opportunities for Hong Kong to learn from, and exchange views with, other bodies con- cerned with trade documentation and trade procedures. During the year, several seminars organised by the Trade Facilitation Committee were held in Hong Kong to publicise the aligned series of export document forms - the 'Hong Kong Aligned Documents Implementa- tion' which are expected to be widely used by the trade,

       The Trade Investigation Branch of the Trade Industry and Customs Department is responsible for the inspection of factories and consignments connected with applications for certificates of origin. It carries out investigations and prosecutions relating to mal- practices which contravene the Import and Export Ordinance, Merchandise Marks Ordinance and Copyright Ordinance. It is also responsible for industrial surveys on specific industries, trade and industrial problems, and foreign investments. Additionally, the branch is responsible for handling trade complaints, and plays an active role in the consumer protection field in conjunction with the Consumer Council.

       In 1979, the Trade Investigation Branch completed some 41,000 inspections of factories and consignments; 1,400 costing checks in connection with applications under the general- ised system of preference schemes (Form 'A'); and 691 comprehensive investigations relating to infringements of legislation. Legal action was taken against 324 companies and people, and fines amounting to $2 million were imposed by courts.

       The branch also completed 19,000 inquiries and verifications related to trade declara- tions and manifests, and conducted 2,524 associated investigations resulting in the collection of $1.4 million in ad valorem charges and administrative penalties.

      During 1979, tight control was maintained on textiles exported under quota arrange- ments, with close liaison between various units of the Trade Industry and Customs Depart- ment. The protection of consumers and traders under the appropriate industrial property

INDUSTRY AND TRADE

27

legislation was being maintained, and new legislation providing strengthened consumer protection was being prepared.

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.

      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, insurance, and one senior government official. The board is appointed by the Governor and usually meets once a month. The Textiles Advisory Board, a more specialised body also chaired by the director, is consulted on matters affecting the textiles industry. It met on 32 occasions during 1979. Both these boards are served by specialist committees as the need arises.

      The Trade Industry and Customs Department is made up of three parts - the Department of Trade, headed by the Director of Trade; the Department of Industry, headed by the Commissioner of Industry; and the Department of Customs and Controls, headed by the Commissioner of Customs and Controls.

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      The department has three overseas offices in Brussels, Geneva and Washington - and also is represented in the Hong Kong Government Office in London. 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 Director of Trade is assisted by two deputy directors and five assistant directors. One deputy director heads the External Affairs Group and another heads the Internal Affairs Group.

      The External Affairs Group comprises three Commercial Relations Divisions, each headed by an assistant director. It is responsible for the external aspects of Hong Kong's commercial relations, including the preparation for, and the conduct of, trade negotia- tions. It also collects and disseminates information on trade policy measures taken by other countries that may affect Hong Kong, and takes part in the activities of international organisations.

      The Internal Affairs Group comprises an Export Control Division and a Quota Systems Division, each headed by an assistant director. The divisions are responsible for the im- plementation and administration of agreements reached in negotiations by the External Affairs Group, as well as the day-to-day operation of the Hong Kong Textiles Export Quota System.

      The Commissioner of Industry is assisted by a deputy commissioner, and two assistant commissioners who head the Industry Support and Liaison Division and the Industrial Development Division.

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

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      The Industrial Development Division promotes overseas investment in local industry by advising potential investors on Hong Kong's economy and infrastructure, and assisting

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INDUSTRY AND TRADE

them in the evaluation and establishment of manufacturing projects in Hong Kong. The division encourages industrial co-operation between Hong Kong and overseas manufac- turers, 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 Commissioner of Customs and Controls is assisted by a deputy commissioner, and two assistant commissioners who head the Trade Controls Division and the Customs and Excise Service.

       The Trade Controls Division is responsible for certification and trade documentation 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. On November 1, 1979, the Reserved Commodities Ordinance came into force. It replaced the Import and Export (Reserved Commodities) Regulations which were the legal basis of the rice control scheme. It also provided for the registration of rice wholesalers.

The Customs and Excise Service is a disciplined force whose work covers the protection of revenue from dutiable commodities, the calculation and collection of duty, and anti- narcotics operations in co-operation with other law enforcement agencies.

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

Hong Kong Trade Development Council

      The Hong Kong Trade Development Council, a statutory body established in 1966, is responsible for promoting and developing trade with the world. Its chairman is appointed by the Governor and the council's 17 members include representatives of major trade asso- ciations, leading businessmen and industrialists, and two senior government officials. The council is financed by an annual grant from public funds.

       The staff of the council carried out an extensive trade promotion programme in 1979, organising some 50 major international projects. These included an economic mission to Europe visiting Paris, Marseilles, Milan, Rome and London, where the delegates renewed high-level contacts with senior government officials and business and industrial leaders.

      Other promotional projects mounted during the year included a fashion presentation in the United States city of Dallas, and participation in the Kobe Import Fair, Tokyo Inter- national Trade Fair, Berlin International Television and Radio Show, Nuremberg Inter- national Toy Fair, Cologne International Houseware Fair, the Macef International Fair in Milan, Cairo International Trade Fair, Birmingham International Spring Fair, American Toy Fair, British Toy and Hobby Fair, Frankfurt Spring Fair, Spoga Fair, Chicago Con- sumer Electronics Show, and the New York Premium Show.

      The Trade Development Council organised business group visits to Basle to promote watches and jewellery, and to the Middle East to sell general consumer products. Groups

°འ་

EVENTS OF THE YEAR

RIES

L

1.1

Previous page: His Royal Highness the Prince of Wales took the controls of an RAF Wessex

helicopter during an official visit to Hong Kong in March. Above: Prince Charles samples a jungle survival diet of snake meat and rice wine while visiting Gurkha soldiers.

     A light-hearted moment is shared between a youngster and the Prince of Wales following a parade by the 1st and 2nd Battalions of the 2nd King Edward VII's Own Gurkha Rifles, of which His Royal Highness is Colonel-in-Chief.

AR

2.

     Fire-fighters spray water on to the charred remains of squatter huts at Lei Yue Mun, in the first of three devastating fires in squatter areas which left more than 7,000 people homeless during the driest October on record.

Cu

     The aftermath of Typhoon Hope whose winds of up to 108 knots slammed into Hong Kong on August 2: the Tsim Sha Tsui clock tower is framed by twisted rubble at the Star Ferry terminal, which was damaged by a container ship.

     In June, when hundreds of boat refugees from Vietnam were arriving daily in Hong Kong, the visit by the British Secretary of State for Foreign and Commonwealth Affairs, Lord Carrington, helped to increase international awareness of the immensity of the problem.

......

     Besieged by Vietnamese during his tour of the Sham Shui Po camp in September, the United States Vice-President, Mr Walter Mondale, later pledged his country to settling 2,000 Vietnamese refugees a month from Hong Kong-

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     A coy young resident has the chance to shake hands with the Governor, Sir Murray MacLehose, whose term of office was further extended in 1979 to April, 1982, making him Hong Kong's longest-serving

Governor.

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INDUSTRY AND TRADE

29

also toured European countries and several African countries as well as the United States, Canada, Japan and Australia. Inward missions were also arranged for three groups of businessmen from the United States, Britain and France.

       In Hong Kong, the council organised the Ready-to-Wear Festival in January and the Toy and Gift Fair in October.

       The Trade Development Council produces four regular publications mainly for circula- tion 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 trade were produced during the year. They are designed to promote the local toy and electronics industries.

       Besides its headquarters in Hong Kong, the council maintains overseas offices in 18 key cities - London, Manchester, Frankfurt, Hamburg, Paris, Stockholm, Zurich, Vienna, Milan, Amsterdam, New York, Chicago, Los Angeles, Dallas, Toronto, Panama City, Tokyo and Sydney.

Hong Kong Export Credit Insurance Corporation

The Hong Kong Export Credit Insurance Corporation (ECIC) is a government-owned organisation providing support and encouragement to Hong Kong's exporters. It offers them protection against the risks of not being paid by their overseas clients for goods and services sold on credit.

       This is a unique form of safeguard in Hong Kong. An exporter can face problems of non-payment because of either commercial risks or political and economic risks. Commer- cial risks cover such areas as an overseas client's inability or unwillingness to pay owing to his insolvency, repudiation of the contract, or default. Political and economic risks include war, revolution, strikes, foreign exchange blockage and transfer delay, and can- cellation of import licences which prevent the client from making payment to his Hong Kong supplier.

       The ECIC covers all manner of short term credits and payment methods such as open account invoices, documents against acceptance, documents against payment, and a range of letters of credit, up to a maximum credit period of 180 days after delivery. The corpora- tion's protection is also available for the sale abroad of capital and semi-capital goods sold on medium or long term credit with instalments over five years or longer.

       The corporation provides its clients with a credit control service, and checks, through its international credit information network, the credit rating of all overseas buyers and its policyholders. Trading and financial records are kept of some 35,000 overseas buyers, and this confidential reference library is the most comprehensive of its type in Hong Kong.

       Bankers who finance exports from Hong Kong also benefit from the corporation's services. Their exporting clients who hold one of the ECIC's policies can authorise the corporation to pay any claims to their financing bank. In addition, to assist in the funding of manufacturers who export capital or semi-capital goods on medium to long-term credit, the corporation is prepared to provide the financing bank with gilt-edged security in the form of its unconditional guarantee. This involves the full payment by the ECIC of any overdue instalments and interest, irrespective of what caused the delay.

        As a member of the International Union of Credit and Investment Insurers (the Berne Union) the corporation has access to up-to-date and confidential assessments of the inter- national economic scene, and the technology used by other nations in support of their export industries.

30

INDUSTRY AND TRADE

       The corporation's paid up capital of $20 million was provided by the government, which also guarantees the corporation's liabilities created by its insurance and guarantee opera- tions up to a statutory limit of $2,000 million. The corporation does not receive any sub- vention and operates on a break-even basis, taking one year's result with another. In its daily business activities, the corporation resembles private enterprise and it markets its services in a commercial manner.

       The corporation receives guidance from its 12-member advisory board, which consists of three senior government officials and nine prominent figures from the private sector.

Since 1967, the corporation has protected the export of goods and services valued at more than $16 billion, and paid hundreds of claims cumulatively exceeding $41 million. During the 1978-9 financial year, the corporation insured export shipments valued at $2.5 billion. The premium received amounted to $12 million, and $4.5 million in claims were paid and provided for during this period.

       The ECIC looks after the interests of more than 1,000 exporters as its clients. It publishes a detailed annual report of its operating results, which is available to its customers and other interested parties in Hong Kong and abroad.

Hong Kong Productivity Council and Centre

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 and information, industrial consultancy, computer services, economic analyses, and technology transfer 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, an electronics laboratory, a technical reference library and electronic data processing equipment. A heat treatment unit was set up in 1979 with technical assist- ance from the United Nations Development Programme. The unit is organising seminars and courses on the technology of heat treatment with practical demonstrations; and pro- viding technical help, consultancy and information services to industry.

During the year, the productivity centre strengthened its technical information activities. In addition to publishing two quarterly bilingual bulletins on plastics and furniture tech- nology, it introduced an on-line information retrieval service to local industry. A portable computer terminal in the centre's office is connected to the mainframe computer systems of the Systems Development Corporation and Lockheed in the United States. The latest technical information on reports, patents and research results can be made available to a Hong Kong user within seconds.

Acting as an agent for one of the international technology transfer organisations, the centre also disseminated information about technology transfer opportunities through a quarterly publication.

Sustained efforts were made during the year to assist the furniture industry to improve its productivity. A preliminary report on communal facilities for the preparation of furniture materials was completed and, as part of an integrated project, the centre recommended the establishment of a particleboard plant to optimise the use of wood and rattan waste.

INDUSTRY AND TRADE

31

       During 1979, the centre organised more than 250 training programmes for more than 6,500 participants and carried out 170 consultancy and technical assistance projects for more than 140 clients in industry. In keeping with government efforts to attract investment in manufacturing industries, it played an important role in providing much-needed technical support services to industrialists establishing operations in Hong Kong. The centre as- sisted a number of companies applying for industrial land in Tai Po Industrial Estate for the establishment of technically-advanced and capital intensive production plants.

       The centre organised two industrial exhibitions on production machinery and equip- ment and sponsored six overseas study missions during the year. The 1979 edition of the Directory of Hong Kong Industries, a salary report and industry data sheets were published.

       As a member of the Asian Productivity Organisation (APO), Hong Kong was represented at the 1979 workshop meeting of national productivity centres in Tokyo, and at the govern- ing body meeting in Bali. Hong Kong agreed to host the Asian Productivity Congress in October, 1980, to commemorate the organisation's 20th anniversary.

The centre is a participating organisation of the Asian Network of Industrial Technology Information and Extension, set up under the auspices of the Industrial Development Research Centre of Canada. It is also a member of the Federation of International Docu- mentation 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, comprising 2,300 com- panies 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 Commerce. The chamber is actively involved in promoting Hong Kong trade and attracting new industry.

       The Federation of Hong Kong Industries, established by statute in 1960, has a member- ship broadly representative of all industries, many nationalities and all sizes of enterprise. To encourage and improve industrial design, the federation established the Hong Kong Industrial Design Council which offers practical training programmes and advice to de- signers and design service users. The council operates a design depository for people who wish to obtain copyright protection, and organises annual design competitions and exhibi- tions. The federation also established the Hong Kong Packaging Council to promote the development of packaging education and technology, and the development of skills and expertise in packaging.

       The federation's Hong Kong Standards and Testing Centre provides testing, inspection, certification and related services. Its facilities include chemical, calibration, electrical, electronic, engineering, food, footwear, gemmological, microbiological, packaging, phar- maceutical, textile, toy, watch and radio interference testing laboratories. The centre's services also include pre-shipment inspection, quality control, production inspection, industrial research, product development and technical consultancy.

      The Federation of Hong Kong Industries operates a seal-of-approval scheme for Hong Kong products found to comply with recognised standards or specifications, which have been manufactured under an approved system of quality control and supervision.

       Established in 1934, the Chinese Manufacturers' Association of Hong Kong has some 2,000 members. The association, a member of the International Chamber of Commerce,

32

INDUSTRY AND TRADE

has played an important role in the industrial development of Hong Kong. It is active in promoting new product development and holds the annual Hong Kong New Products Competition. It has established a product testing centre and runs a product display centre as part of its trade promotion activities. The association takes a keen interest in industrial training and education, and runs a prevocational school which offers technical training programmes for more than 1,000 students.

Consumer Council

     The Consumer Council first came into operation in 1974 and was incorporated by statute in 1977 to protect and promote the interests of consumers of goods and services. The council comprises a chairman and 14 members, all appointed by the Governor from various walks of life. The council is served by an office which is divided into four main sections: administra- tion; complaints and advice; testing and research; and information and publications. The office, headed by an executive director (also an ex-officio member of the council), is financed by an annual subvention from general revenue.

      Since its establishment, the council has achieved considerable support and gained the confidence of the public. This is best reflected in the increasing number of complaints from consumers who feel that they have not received a fair deal from traders. During 1979, a total of 5,887 complaints were received.

The nature of complaints has become increasingly sophisticated as people are made more aware of their rights as consumers. Through persuasion and negotiation, the council is able to obtain reasonable redress for most complaints which are found to be genuine. In the few cases where it is unable to receive the co-operation of the shops, despite repeated warnings, the council is empowered to publish the facts of its investigations. This threat of exposure has proved to be a most effective deterrent to potentially unscrupulous traders. In those cases where the council is unable to establish sufficient evidence, the consumers are advised - and assisted - to pursue their grievances through the Small Claims Tribunal. The council operates three advice centres one in Kowloon and two on Hong Kong Island - to provide pre-shopping counselling to the public. In 1979, the centres dealt with a total of 18,699 inquiries. The fact that more people are coming forward to seek advice rather than to complain is a healthy and welcome sign. It indicates that the council is getting its message across that seeking advice before buying is better than having to complain afterwards.

-

In the field of consumer education and information, the council continued to work closely with the Education Department and the news media which provided generous coverage of a wide range of consumer concerns and issues. A new series of shopping-guide pamphlets on domestic electrical appliances was published and made available to members of the public who sought them. The council's monthly magazine, Choice, has established itself as a useful and authoritative publication. Choice is available by subscription and at news-stands.

      The council conducts comparative product testing and, in the course of its work, has often discovered hidden defects in goods. Examples include dangerous drugs in patented medicines, excessive preservatives in oyster sauce, and the faulty electrical design of hair dryers. These facts were brought to the attention of the authorities and manufacturers were persuaded to improve their products. The findings of these tests, together with information about the brand names, were published in Choice. During 1979, tests were carried out on Chinese preserved sausages, light bulbs, dishwashing detergents, various kinds of dim sum, stain removers, pencils, children's plastic water containers, knitting

INDUSTRY AND TRADE

33

yarns, hair dryers, peanut cooking oils, and other items. The council also carried out in-depth studies and surveys on some 40 items including air-conditioners, housing loans, remedies for colds and coughs, and diet and slimming aids.

       In the field of consumer protection legislation, the government has accepted the council's recommendations to introduce legislation on trade descriptions and hire purchase transac- tions, and to revise the existing legislation on weights and measures. Drafts for these three pieces of legislation were being prepared in 1979. This is a significant achievement for the council which has been striving, since its inception, to obtain more and better laws to protect the consumer. The council's reports on the sale and purchase of flats and the opera- tions of travel agents in Hong Kong are still under study. Apart from legislation, the council works to encourage business and professional associations to establish voluntary codes of practice for the benefit of consumers. The Consumer Council is a council member of the International Organisation of Consumers Unions.

Metrication

In the field of metrication, the government's objective is the progressive adoption of the International System of Units (SI) in those areas for which it is responsible. The Metrication Ordinance, enacted in 1976, provides for the eventual replacement of non-metric units by SI in all legislation in Hong Kong.

       A Metrication Committee, with an unofficial chairman and consisting of government officials and representatives of industry, commerce, management and consumer affairs, was appointed by the Governor in January, 1978. The committee is the focal point of liaison on all matters concerning metrication, and it advises and encourages various groups within the private sector in the framing of their programmes for metrication. By the end of 1979, the committee had drawn up an outline for a five-year programme of activities promoting SI, mainly involving education and publicity. The programme is based on research and assessment of the current state of metrication in the private sector.

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 1979, 4,792 applications were received and 2,260, including many made in previous years, were accepted and allowed to be adver- tised. A total of 1,680 marks were registered. The principal countries of origin were:

United States

Hong Kong

United Kingdom

West Germany

Japan

417

389

188

168

137

France Switzerland Italy Australia

107

77

43

30

The Netherlands

The total number of marks on the register at December 31, 1979, was 34,275.

20

       Although there is no original grant of patents in Hong Kong, the Registration of Patents Ordinance provides that any grantee of a United Kingdom patent or European patent (UK) may, within five years from the date of its grant, apply to have the patent registered in Hong Kong. Registration of a United Kingdom patent or European patent (UK) in Hong Kong confers on the grantee the same privileges and rights as if the patent had been granted in the United Kingdom with an extension to Hong Kong. The privileges and rights

34

INDUSTRY AND TRADE

run from the date of commencement of the term of the patent in the United Kingdom, and continue as long as the patent remains in force there. A total of 893 patents were registered during the year, compared with 758 in 1978.

The Registration of United Kingdom Patents (Amendment) Ordinance 1979 was enacted on April 27, 1979. It provides for the registration of European patents (UK) and takes account of the changes to patent law introduced in the United Kingdom by the Patents Act 1977, so far as is necessary for the registration of patents in Hong Kong.

       The Patents Working Party, set up by the government in March, 1978, held its second meeting in September, 1979. At the meeting, it was decided that the existing system of registration of United Kingdom patents and European patents (UK) should be retained and that a legal sub-committee should be set up to look at the Registration of Patents Ordinance with a view to updating it.

Companies

The Companies Registry of the Registrar General's Department keeps records of all com- panies 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 implementing 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. It is expected that a lengthy bill in- corporating most of the recommendations in the committee's Second Report, which have not already been implemented by legislation, will be presented to the Governor in Council in early 1980.

On incorporation, a company pays a registration fee of $300, plus $4 for every $1,000 of nominal capital. In 1979, 10,284 new companies were incorporated - 1,438 more than in 1978. The nominal capital of new companies registered totalled $3,116 million. Of the new companies, 131 had a nominal share capital of $5 million or more. During the year, 2,990 companies increased their nominal capital by amounts totalling $8,194 million, on which fees were paid at the same rate of $4 per $1,000. At the end of 1979, there were 67,429 local companies on the register, compared with 57,945 in 1978.

The Companies (Amendment) Ordinance 1979, which is expected to come into effect in early 1980, will implement, with modifications, the recommendations made in Chapter 3 of the Second Report (1973) of the Companies Law Revision Committee in respect of the replacement of lost share certificates.

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, 172 such companies were registered and 34 ceased to operate. At the end of 1979, 1,269 companies were registered from 53 countries, including 318 from the United States, 173 from Britain and 141 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 addition to the filing of annual accounts, these ordinances require deposits to be made with the

INDUSTRY AND TRADE

35

Registrar of Companies, unless the company is exempt. This exemption depends on the obtaining of a certificate from the insurance division of the Department of Trade in London, stating that the company is authorised under the Insurance Companies Act 1974 to carry on insurance business in Britain or in the case of fire and marine insurance - maintaining similar deposits elsewhere in the Commonwealth. The approval of the Registrar General must be obtained for transacting motor vehicle third party risks insurance business. There are 338 insurance companies, including 166 local companies, transacting life, fire, marine or motor vehicle insurance business in Hong Kong.

All insurance companies also have to comply with the provisions of the Insurance Com- panies (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 proceedings in court is always comparatively small in relation to the total number of businesses closing down. During the year, there were 56 petitions in bankruptcy and 111 petitions for the com- pulsory winding-up of companies. The court made 36 receiving orders, two administration orders, and 70 winding-up orders. As in past years, the Official Receiver was appointed trustee or liquidator in almost every case. Assets realised by the Official Receiver during 1979 amounted to some $31 million. In addition to these compulsory windings-up, 569 companies went into voluntary liquidation - 534 by members' voluntary winding-up and 35 by creditors' voluntary winding-up.

      The Bankruptcy (Amendment) Ordinance 1979 was enacted on April 27 in order to give effect to the introduction of criminal bankruptcy into the penal system by the Criminal Procedure (Amendment) (No. 2) Ordinance 1979. The Bankruptcy (Amendment) Rules 1979 and the Bankruptcy (Forms) (Amendment) Rules 1979 were made on May 18 and June 5, respectively, consequent to the introduction of the new provisions.

4

經团

Finance and Economy

HONG KONG Continued to develop as an international financial centre in 1979. A large num- ber of major international banks opened for business, either through branches or subsidiary companies: after granting licences to 41 banks between March, 1978, and August, 1979, bringing the number of licensed banks in Hong Kong to 115, the government temporarily suspended the grant of new licences pending a review of the licensing criteria.

      The number of deposit-taking companies also rose during the year. More steps were taken to apply prudential controls to these companies, including a system of minimum liquid asset ratios.

Work continued during the year on legislation to merge Hong Kong's four stock ex- changes into one exchange, and on other measures to enhance the protection of investors in securities and commodities.

The gold markets continued to expand making Hong Kong one of the world's largest gold centres. The territory's time zone position enables it to trade while Europe and North America are closed down, thus completing the 24-hour trading link.

The domestic economy expanded rapidly in 1979, for the fourth year in succession, with an impressive export performance contributing to a growth rate of the gross domestic product which was much higher than originally forecast. Various measures were announced in the government's 1979-80 Budget to help slow down the growth rate of domestic demand. Bank lending rates were raised several times during the year, reaching record levels in August, to restrain the excessively fast rate of growth of bank lending and of the money supply. The government also took steps to ensure that its Hong Kong dollar balances, which were building up partly from its continued fiscal surplus, could no longer automati- cally contribute to the expansion of bank lending.

Hong Kong's Financial Structure

Government Finance

Hong Kong has almost complete autonomy in its domestic financial affairs, with the ultimate authority for the government's revenue and expenditure proposals resting with the Legislative Council. The revenue and expenditure estimates for each financial year, which starts on April 1, are submitted to the Finance Branch of the Government Secre- tariat by each government department in October of the previous year. The estimates are scrutinised and are adjusted according to the priorities set for the government as a whole. They are then submitted to the Legislative Council with the Appropriation Bill at the time of the Financial Secretary's Budget Speech in February.

Hong Kong is financially self-supporting and the government's accounts showed a surplus of $1,467 million for the 1978-9 financial year.

FINANCE and ecoNOMY

Urban Council

37

The Urban Council, operating through the Urban Services Department, is free to draw up its own budget and to determine its own priorities in expenditure within its various spheres of activity. This expenditure is financed mainly through the Urban Council rate; and from fees and charges for the services and facilities which the council provides. In the 1979-80 financial year, the council worked to an overall budget of $680 million.

Housing Authority

The Housing Authority is also financially autonomous. The authority is responsible for the provision and management of public housing and its executive arm is the Housing Depart- ment. Under the Housing Ordinance, the authority is required to ensure that its income, derived mainly from rent, is sufficient to meet its recurrent expenditure on the management of public housing estates. In providing new housing estates under the government's public housing programme, the authority is provided with land, the value of which is reflected in the authority's balance sheet as a government contribution. Where its cash flow is inadequate to meet construction costs, the authority within limits may borrow from the Development Loan Fund. In the 1977-8 financial year, loans amounting to $300 million, made to the authority for this purpose in earlier years, were converted into a government 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 temporary housing and temporary industrial areas. The cost of these activities is met in full from the govern- ment's general revenue. The authority is the agent of the government in designing, con- structing, 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.

Mass Transit Railway Corporation

The Mass Transit Railway Corporation, which was established in September, 1975, is a statutory body independent of the Hong Kong Government, but owned by it. It has an authorised share capital of $2,000 million. At December 31, 1979, 11,452 shares of $100,000 each had been issued to the government. Much of the capital expenditure of the corporation is financed through export credit facilities and from borrowings in local and international markets. Up to the end of 1979, the corporation had negotiated $9,472 million in medium- term and long-term loans, the bulk of which are backed by government guarantees.

Funds for Special Purposes

      By resolution, the Legislative Council has created the Development Loan Fund, the Home Ownership Fund and the Lotteries Fund.

       The Development Loan Fund, created in 1958 and financed mainly by transfers from the government's general revenue, interest payments and capital repayments, totalled $1,566.5 million at March 31, 1979. It is used to finance social and economic developments, with the greater part put to low-cost housing schemes. However, during the 1978-9 financial year, an amount of $42.8 million was allocated as interest-free loans to 11,000 students at the two universities, Hong Kong Polytechnic, and the Hong Kong Baptist College. The student financing scheme was extended to the Hong Kong Shue Yan College and Lingnan College in June, 1979. At March 31, 1979, liquid assets of the fund totalled $213.4 million and outstanding commitments amounted to $921.7 million.

38

FINANCE AND ECONOMY

       The Lotteries Fund, established in 1965, is mainly for financing the development of social welfare services by grants and loans. The fund started with transfer from general revenue of $7.4 million. An additional $140.3 million has been credited between 1965 to 1979 through the net proceeds of the former Government Lottery and, with effect from September, 1975, the Mark Six Lottery and the auctions of special vehicle registration numbers. At March 31, 1979, liquid assets of the fund totalled $67.8 million and grants and loans amounting to $125.4 million had been approved.

      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 at a specified income level. At March 31, 1979, a total of $986.5 million had been transferred to the fund from general revenue to meet land premia, building construction costs and other charges. On the same date, liquid assets of the fund totalled $243.3 million.

Audit of Public Accounts

The audit of all the government's accounts is carried out by the Director of Audit. He also audits the accounts of the Urban Council, the Housing Authority and more than 80 statu- tory and non-statutory funds and other public bodies, as well as reviewing the operations of the multifarious government-subvented organisations working in Hong Kong. The director's appointment, tenure of office, duties and powers are prescribed in the Audit Ordinance. To ensure his 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 retire- ment from office. Following an amendment to the Audit Ordinance enacted during the year, the autonomy of the Director of Audit was further secured by his ceasing to be included in the civil service establishment.

      The Director of Audit's report on the annual accounts of the government is submitted to the Governor as President of the Legislative Council. It is then referred to the Public Accounts Committee, comprising a chairman and six members, all of whom are unofficial members of the Legislative Council nominated by the President. The committee is empower- ed under the Standing Orders of the Legislative Council to consider reports of the Director of Audit on the accounts of the government, on any other accounts required to be laid before the Legislative Council as the committee may think 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 con- cerned to give information and explanations and to produce such documents and records which 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.

Hong Kong's Fiscal Performance

     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, have been accumulated in the years up to and including 1978-9. Such reserves are required to secure the government's contingent liabili- ties, 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.

FINANCE AND ECONOMY

39

       This accumulation of reserves has been achieved partially through a strong growth in revenue. Revenue has expanded more than 38 times from $309 million in 1951-2 to $11,766 million in 1978-9. The rate of increase has been 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 departmental receipts, recovered by departments in the process of providing services to the public, were used to offset approved expenditure. The upward trend has, however, been strong and continuous.

       The pace of economic growth gave rise to surpluses from 1969-70 to 1973-4, with the highest surplus in these years of $640 million being achieved in 1971-2. There was a net deficit of $380 million in 1974-5, largely because of increased spending on public works, social welfare, and university and polytechnic grants. But, in subsequent years, growth resumed and the accounts again returned to surplus. In 1978-9, revenue at $11,766 million (compared with the original estimate of $9,436 million) exceeded the year's net expenditure of $10,299 million (original estimate $9,456 million) by $1,467 million. Revenue and expen- diture for 1977-8 and 1978-9, together with the estimates for 1979-80, 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 1979-80 the estimated revenue of $12,976 million and net expenditure of $11,542 million give an estimated surplus of $1,434 million for the year.

Public Debt

At March 31, 1979, net available public financial assets were $6,415 million, while the public debt was equivalent to some $404 million - about $81 per head of population. Indebtedness increased by some $22 million during 1978-9. This was principally due to drawings on loans from the Asian Development Bank towards the Sha Tin sewage treatment project and the Sha Tin urban development (housing) project, offset by instalment repayments of borrowings under the Asian Development Bank loan towards the Lok On Pai desalting project and under the loan from Lloyds Bank International Limited.

       Other outstanding borrowings included $250 million of government 62 per cent bonds issued in 1975-6 and due in 1980, and a drawing of US$6 million (equivalent to HK$29.9 million) in January, 1978, from the Hongkong and Shanghai Bank Consortium loan facility.

Internal Revenue

The Inland Revenue Department collects the taxes and duties making up internal revenue. These consist of earnings and profits tax, estate duty, stamp duty, entertainments tax, betting duty, hotel accommodation tax and business registration fees. The estimated yield of internal revenue in the 1979-80 financial year is $6,662 million which is about 48 per cent of Hong Kong's expected total revenue and receipts for 1979-80.

Direct Taxes

Earnings and profits tax is levied under the Inland Revenue Ordinance only upon specified 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. Taxes on earnings and profits are expected to yield $4,990 million in the 1979-80 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,

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FINANCE AND ECONOMY

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 rises from five per cent to 25 per cent on net chargeable income, that is, income after deduction of personal allowances. However, the overall effective rate of tax is limited to 15 per cent of the income before deducting personal allow- ances. These allowances are: for the taxpayer $10,000; his wife $10,000; his children (ranging from $4,000 for the first to $500 for the ninth); and for each of his or his wife's dependant parents $4,000. Single and married taxpayers are given an additional personal allowance of $2,500 and $5,000 respectively, but this allowance is abated until the point is reached where the entire additional allowance disappears. Apart from the deduction of expenses necessarily incurred in the production of 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 buildings in Hong Kong by reference to estimated rental values. However, there are exemptions, in- cluding property occupied by the owner for his residential purposes, vacant premises and property in certain undeveloped parts of the New Territories. Properties owned by cor- porations carrying on business in Hong Kong are exempted from 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 certain utility companies not exceeding 9 per cent per annum is exempt. The exemption rate varies with changes in interest rates paid on bank deposits: the level of 91 per cent has been in force since August 21, 1979.

      A taxpayer has the right to choose to be assessed on his total Hong Kong income under what is known as 'personal assessment'. Under 'personal assessment', a taxpayer's income from the four sources mentioned earlier is aggregated, and he is given the benefit of the same personal allowances and sliding scale of tax which is 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 a maximum of 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, 1980, is estimated to be $135 million.

Indirect Taxes

There is no general tariff on goods entering Hong Kong but 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. All firms en- gaged in the import, export, manufacture or sale of dutiable commodities must be licensed. On liquors, the basic duty rates 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.

FINANCE AND ECONOMY

41

       Rates are levied annually on the occupation of landed property at a percentage of the assessed rateable value. The rateable value is, briefly, the annual rent at which the property might reasonably be expected to be let. This 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. In the urban areas, the rate is apportioned as 7 per cent to general revenue and four per cent to the Urban Council. No Urban Council rates are levied in the New Territories because the council does not operate there.

      New valuation lists are prepared periodically, as directed by the Governor, enabling rateable values to be revised in line with current market rental levels. The last completed review, which came into force on April 1, 1977, included more than 540,000 assessments with a total rateable value of more than $11,000 million. The estimated rates revenue for 1979-80 is $1,274 million, of which about $392 million will go to the Urban Council.

       Pre-war rent-controlled premises benefit from a scheme under which rate increases for the premises may not exceed 33.33 per cent in one year.

      Educational, charitable and welfare organisations may be provided with financial assist- ance from the government towards the payment of rates if the premises they occupy are run in accordance with an approved target or policy. No refund of rates is made in the case of vacant domestic premises. However, half the amount of rates paid for vacant non- domestic premises may be refunded.

      Stamp duty is limited to duty on assignments of immovable property, leases, share contract notes, and transfers. The estimated yield for the year ended March 31, 1980, is $800 million.

      Entertainments tax is imposed on the price of admission to race meetings and cinemas at rates varying with the amount charged for admission. This averages about 28 per cent in the case of race meetings and eight per cent in the case of cinemas. The estimated yield for 1979-80 is $30 million.

      Betting duty is imposed on bets made on authorised totalisators or pari-mutuels and on the proceeds of the Mark Six Lottery. The rate of duty is charged at 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 estimated yield for the year ending March 31, 1980, is $630 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 1979-80 financial year, the estimated yield is $29 million.

Business Registration Fee

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 out by charitable institutions. The annual registration fee is $175, but exemption from payment is granted when the business is small. The total income from these fees, service fees for copies of documents, and other fees for the 1979-80 fiscal year is expected to be $47 million.

Monetary System

Currency

Currency notes are issued by two commercial banks - the Hongkong and Shanghai Banking Corporation and the Chartered Bank. The Mercantile Bank's authorised note-issuing powers have been taken over by the Hongkong and Shanghai Banking Corporation; its

42

FINANCE AND ECONOMY

notes still in circulation are now legally the obligation of the latter bank. Notes in everyday circulation are $10, $50, $100, $500 and $1,000.

       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. The fourth of a series of $1,000 gold coins to commemorate the Chinese Lunar New Year was issued early in 1979. The total currency in circulation at the end of 1979 and details of its composition are shown in Appendix 11.

Exchange Fund

Bank notes are backed by the Exchange Fund, a government account set up in 1935. The fund is under the control of the Financial Secretary, but is managed in accordance with his directions by the Monetary Affairs Branch of the Government Secretariat.

Apart from authorised issues against approved securities up to a limit of $95 million for the two note-issuing banks, 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 the notes in circulation rises and falls. The Exchange 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 fund's resources are held in Hong Kong dollars and in foreign currencies, and are employed in a variety of deposits and investments.

On April 1, 1976, the bulk of the foreign exchange assets previously held in the General Account and all the assets of the Coinage Security Fund were transferred to the Exchange Fund, against the issue of debt certificates denominated in Hong Kong dollars. On December 31, 1978, all the certificates held by the Coinage Security Fund were redeemed and that fund was merged with the Exchange Fund. The certificates issued to the General Account bear interest at appropriate market rates. In this way, all losses and gains resulting from changes in the Hong Kong dollar value of official foreign assets accrue to the Exchange Fund, which was established for the purpose of regulating the exchange value of the Hong Kong dollar. 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. Now that this transfer has been completed, the bulk of the government's finan- cial assets are held by the Exchange Fund, which effectively has become banker to the government.

On May 1, 1979, the Exchange Fund (Amendment) Ordinance 1979 came into force. The effect of this measure is to prevent short-term balances held by the Exchange Fund with banks in Hong Kong from contributing to the growth of advances by the banking system; it also removes those balances from the money supply. Balances building up in the fund as a result of the government's fiscal surplus, or as a result of the expansion of the note issue, do not now automatically serve as a base for expanding the supply of credit to the economy.

Exchange Value of Hong Kong Dollar

The exchange value of the Hong Kong dollar was established in 1935 at about 1s. 3d. sterling ($16 to £1). On the setting up of the International Monetary Fund after World War II, the Hong Kong dollar was given its own gold parity at a rate reflecting this relation- ship. The relationship with sterling was, however, not a statutory one. It was established and

FINANCE AND ECONOMY

43

maintained by the operations of the Exchange Fund in conjunction with the note-issuing banks. It weakened after the devaluation of the pound in November, 1967, and ended after the pound was allowed to float downwards in June, 1972. In the following month, the government decided to fix the exchange value of the dollar in terms of United States dollars. 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 1979, the overall value of the Hong Kong dollar in terms of the currencies of its major trading partners, as measured by a trade-weighted index, declined by 0.5 per cent. At the end of 1979, its value was about 12.2 per cent lower than in the period immedi- ately before the dollar floated in November, 1974. The decline reflected the trade deficit, itself the product of more rapid growth in the domestic sector of the economy than in the export sector, and the weakness of the United States dollar against other currencies.

At the end of 1979 the middle market rate for the United States dollar was about HK$4.93 =US$1. Since 1973, transactions between Hong Kong and other countries have been free of all exchange control restrictions.

Money Supply and Credit

The money supply, defined to include all bank deposits and notes and coins held outside the banking system, rose by 30 per cent in 1979 to stand at $95,303 million at the end of December. A major factor influencing the growth of the money supply was the expansion of domestic loans and advances by banks, which rose by 40 per cent during 1979 to $73,690 million at the end of December.

      Statistics from the deposit-taking companies became available for the first time in December, 1978. During 1979, public deposits with deposit-taking companies grew con- tinuously from $10,447 million to $24,495 million at the end of December. Their loans and advances rose from $10,139 million to $13,566 million. Banking statistics for the past three years and deposit-taking company statistics are shown in Appendix 12.

Banking

      Banks are licensed in Hong Kong under the Banking Ordinance. The ordinance provides for their supervision and inspection by the Commissioner of Banking and imposes certain minimum requirements on capital and liquidity. Only licensed banks and representative offices of foreign banks may use the word 'bank'.

In March, 1978, the long-standing moratorium on the issue of new banking licences was eased. At that time, the Financial Secretary announced that favourable consideration would be given to applications for banking licences from well-established foreign banks which met a number of criteria relating to their size and background. In accordance with this policy, 41 banks from 12 countries had been granted a licence by August 7, 1979, when the grant of further banking licences was temporarily suspended to enable the government to review the criteria to be applied to future applications. At the end of 1979, there were 115 licensed banks, 1,011 banking offices and 114 representative offices of foreign banks. Finance companies - many of which are owned by foreign banks and other non-bank financial institutions which take deposits from the public are required to register under the Deposit-taking Companies Ordinance. At the end of 1979, 269 such companies were registered. They are subject to prudential supervision by the Commissioner of Deposit- taking Companies (this office is held by the Commissioner of Banking). During 1979, the

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44

FINANCE AND ECONOMY

      ordinance was amended to provide for the introduction of a requirement for a minimum holding of specified liquid assets by such companies. The lists of specified liquid assets for deposit-taking companies and banks were also amended during the year.

Securities and Commodities Markets

Securities

Work continued in 1979 to prepare legislation to provide for the establishment of a unified exchange in place of the existing four stock exchanges. The legislation is expected to specify that a single new company should be formed, which will be recognised as a stock exchange from a specified date, the members of which will be its shareholders.

        Staff of the Office of the Commissioner for Securities continued to monitor financial transactions concerning securities, and to scrutinise unusual movements in individual share prices. It is one of the functions of the office to investigate possible instances of insider dealing in securities to establish whether there is a prima facie case to be examined by the Insider Dealing Tribunal. No cases were referred to the tribunal in 1979.

       In August, 1979, a Practice Note was published clarifying the rules concerning the suspension of dealings in the shares of offeree companies during takeover bids. During the year, the control of one company changed hands, and there were five instances where shareholders who already had control purchased outright the shares held by the other shareholders.

       During 1979, the Office of the Commissioner for Securities continued to administer the Hong Kong Code on Unit Trusts and Mutual Funds. The number of unit trusts and mutual funds which received authorisation from the Securities Commission under the Securities Ordinance was 10.

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, 1979. No payments were made from this fund during the year. Deposits lodged by dealers other than stockbrokers stood at $6.87 million. The purpose of these deposits is to give some protection to investors against a defaulting dealer who is not a member of a stock exchange.

       At the end of 1979, 2,204 people were registered under the Securities (Dealers, Investment Advisers and Representatives) Regulations 1974. They included: 107 corporate dealers; 1,012 individual dealers including 898 stockbrokers on the four stock exchanges; 74 corporate investment advisers; 120 individual investment advisers; 822 dealers' representa- tives; and 69 investment representatives. During the year, five corporations were declared exempt dealers.

       The turnovers for 1979 reported on the four exchanges were: Far East Exchange, $11,747.42 million; Hong Kong Stock Exchange, $5,607.09 million; Kam Ngan Stock Exchange, $8,217.31 million; and Kowloon Stock Exchange, $61.42 million. The total of $25,633.24 million is a decrease of 61 per cent compared with the 1978 figure of $27,457.89 million.

       Proposals were being drafted in 1979 to update the Securities Ordinance and the Com- modities Trading Ordinance in the light of operational experience, so as to enhance the protection of investors.

Commodities Trading

The Hong Kong Commodity Exchange Limited is the only company which has been granted a licence to operate a commodity exchange to trade in futures contracts in Hong

FINANCE AND ECONOMY

45

Kong under the Commodities Trading Ordinance. During 1979, trading in both the cotton and sugar markets was sluggish, affected by the absence of major international market movements in these two commodities. The Commodity Exchange applied for permission to trade in two additional commodities - soybean and gold. The soybean market began trading on November 1.

       At the end of 1979, 710 people were registered under the Commodities Trading (Dealers, Commodity Trading Advisers and Representatives) Regulations 1976. They included 130 commodity dealers (46 corporate dealers and 84 individual dealers), of which 43 corporate dealers and 10 individual dealers were shareholders of the Hong Kong Commodity Exchange; 556 commodity dealers' representatives; six corporate commodity trading advisers; nine individual commodity trading advisers; and nine 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 $3.2 million at the end of the year. Deposits lodged by dealers, other than those members of the Hong Kong Commodity Exchange, stood at $500,000. The purpose of the deposits is to give some protection to investors against any default by dealers who are not members of the Hong Kong Commodity Exchange.

Gold Markets

Trading was extremely active on both the international and Chinese Gold and Silver Exchange Society gold markets in Hong Kong in 1979. Price movements paralleled developments in the other major markets of London, Zurich and New York.

       Membership of the Chinese Gold and Silver Exchange Society remained closed at 195 member firms. The price of gold on the exchange rose from $1,304 per tael of 99 per cent fine gold at the end of 1978 to $3,088 at the end of 1979. One tael is equal to 37.429 grams of 99 per cent fine gold.

      The international gold market in Hong Kong expanded during the year, with the participation of some of the newly-licensed banks. Dealings in this market take place in United States dollars per troy ounce of 99.95 per cent fine gold, with delivery in London. One troy ounce is equal to 31.103 grams.

Hong Kong's Economy

Various measures announced in the government's 1979-80 Budget were implemented during the year to help slow down the growth rate of demand in Hong Kong. The objective was to achieve a level more consistent with the growth rate of the economy's output in such a way as to facilitate a relative shift in the distribution of resources back to the manufacturing sector. This included a slow down in the growth rate of government spend- ing, particularly with a view to easing pressures on the building and construction industry. The government also took steps to influence Hong Kong's monetary aggregates so that they grew in a manner consistent with the economic circumstances. Measures included legislation to reduce the amount of government balances that could be on-lent by banks; powers to alter minimum liquidity ratios; and the raising of bank interest rates.

The government's attitude is that to reduce overall demand in Hong Kong, where the public sector is relatively small, it is the action of the private sector that is important. However, a contribution by the public sector was essential in 1979 for general economic reasons, and because the public sector's programmes were significantly affecting demand in the building and construction industry. The growth rate of the government's expenditure was accordingly reduced from 25 per cent in real terms in 1977-8 and 1978-9 to 71⁄2 per

FINANCE AND ECONOMY

46

cent in the 1979-80 estimates. The decision was devised to leave relatively untouched the plans detailed in the government's White Papers for the expansion of education, medical and health services, and social services for the handicapped, the aged, the young and those unable to help themselves. However, it bore down heavily on the Public Works Programme which, because of its rapid growth, was causing cost inflation and an over- extension of the building industry. While expenditure on public works continued to grow in 1979, it was at a slower pace and many desirable projects had to be rephased. However, in the rephasing process very high priority was given to housing and housing-related projects and amenities.

       At the end of 1979, evidence indicated that measures taken by the government to slow down the growth rate of demand were achieving results. The growth rate of demand was more in line with the growth rate of the economy's output, and the growth rate of imports was slowing down. At the same time, Hong Kong's domestic exports were growing quickly and the growth rate of total exports was faster than the growth rate of imports. This was a reversal of the trend in 1978. Hong Kong's visible trade deficit had narrowed and this, together with higher interest rates, was helping to stabilise the exchange rate of the Hong Kong dollar. There had also been a shift in the distribution of resources towards the manufacturing sector.

       Reflecting these favourable developments, the money supply was growing at a rate actually lower than the growth rate of the gross domestic product at current prices, which was also a reversal of the 1978 situation. The growth rate of bank advances had slowed down, but not sufficiently.

       Nevertheless, excess overall demand still persisted in Hong Kong, with the consequent pressure on prices. Both imported inflation and domestically-generated inflation were considered by the government to be running at an uncomfortable rate. With world prices accelerating due, in part, to sharp increases in oil prices, consumer prices in Hong Kong were increasing at around 11 per cent. Building and construction costs were increasing at a rate of 30 to 40 per cent.

      The government's revenue collections for the 1979-80 fiscal year were exceeding expecta- tions by the end of 1979, and were forecast to surpass the Budget estimate. However, it was anticipated that any increased revenue would be absorbed in meeting increased expenditure on both the government's recurrent and capital accounts because of additional commitments.

       Because of the buoyant demand for Hong Kong's exports, the economy was expected to record growth rate in real terms as high as 12 per cent in 1979, compared with the Budget Speech forecast in February of seven per cent. But this achievement was being regarded in relation to the situation of excessive demand and the fact that the gross domestic product was only expected to show an increase of around five per cent in per capita terms in 1979, which represented a slowing down from the growth rate of 7.8 per cent in 1978. While Hong Kong, in fact, experienced a much faster than forecast growth rate of the economy in 1979, it was affected by the year's influx of immigrants from China and Vietnamese refugees. Instead of a population growth rate of around two per cent in 1979, Hong Kong's growth rate (excluding Vietnamese refugees) was more than five per

cent.

5

SDIE

Employment

THE total employed population recorded in the Labour Force Survey held in September, 1979, was 2,119,900, comprising 1,380,000 males and 739,900 females. The Labour Force Survey is a sampled household survey. The distribution was: agriculture and fishing, mining and quarrying, 26,600; manufacturing, 911,900; electricity, gas and water, 10,900; construc- tion, 142,800; wholesale and retail trade, and restaurants and hotels, 426,000; transport, storage and communications, 148,800; financing, insurance, real estate and business services, 91,100; community, social and personal services, 361,400; and unclassifiable activities, 500.

      The Manufacturing Employment Survey held in December, 1979, recorded a total of 870,898 people engaged in 42,282 establishments. The Manufacturing Employment Survey is an establishment survey. It covers working proprietors and partners, employees receiving pay, and unpaid family workers affiliated to business organisations, but excludes the self- employed, out-workers, and other unpaid workers who are included in the household-type survey. Some 378,095 people the largest share of the manufacturing work-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 distribution of manufacturing establishments, and of the numbers of people engaged in them, are given in Appendices 13 and 14.

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       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 Terri- tories is increasing and more than one-quarter of the total manufacturing work-force now works there.

Labour Legislation

The wages of Hong Kong's industrial workers continued to increase during 1979. Nine items of labour legislation were enacted to provide for higher standards in the safety, health and welfare of workers. Since 1969, a total of 152 items of labour legislation have been enacted. Recent legislation includes the widening of the scope of the Employment Ordinance by raising the wage ceiling applicable to non-manual workers from $2,000 to $3,500 a month; extending the minimum age of employment of 14 to the non-industrial sector from Sep- tember, 1979; and raising the minimum age of employment from 14 to 15 with effect from September, 1980. Another amendment to the Employment Ordinance has clarified the right to seven days' paid annual leave to ensure that workers are granted the leave.

Additional safety measures were provided by the amendments to the Boilers and Pressure Receivers Regulations and the Dangerous Goods Regulations.

Further improvements to the Workmen's Compensation Ordinance, the Apprenticeship Ordinance and the Employment Ordinance, as well as further industrial safety regulations, were under consideration at the end of the year.

48

Wages and Conditions of Work

EMPLOYMENT

There is no legal minimum wage in Hong Kong. The wage level prevailing is essentially the result of an interplay of the economic forces of supply and demand.

       Wages are usually calculated on a time basis such as hourly, daily or monthly, or alterna- tively on an incentive basis depending on the volume of work performed. Wages custom- arily are paid once every 10 or 15 days. Most semi-skilled and unskilled workers in the manufacturing industries are piece-rated, although daily rates of pay are also common. Monthly-rated industrial workers usually are employed in the skilled trades or in technical and supervisory capacities. Men and women receive the same rate for piece-work, but women generally are paid less when working on a time basis.

Wages of manufacturing workers continued to increase during 1979. By September, average daily wages (excluding fringe benefits) had increased by 81 per cent on the base period of July, 1973, to June, 1974. During the same time, the cost-of-living index went up by 40 per cent, making an increase of 29 per cent for the index of real average daily wages. In September, 1979, 75 per cent of the workers engaged in manufacturing industries received daily wages of $29.95 or more (male: $32.81 and female: $29.15) and 25 per cent $45.26 or more (male: $55.40 and female: $41.50). The overall average daily wage was $40.39 (male: $46.99 and female: $35.73).

In addition to granting rest days, statutory holidays, paid annual leave and other entitle- ments under the Employment Ordinance, many employers provide workers with subsidised meals or food allowances, good attendance bonuses, free medical treatment, and a Lunar New Year bonus of one month's pay. Free or subsidised accommodation and transport also are provided by some of the larger establishments.

A consumer price index (A), based on a household expenditure survey conducted from 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, 1979, this index stood at 147 (see Appendix 16). A consumer price index (B) shows the effect of price changes on house- holds spending $1,500 to $2,999 a month.

Employment of children under the age of 14 has always been prohibited in industry. The Employment of Children Regulations 1979, which were made under the Employment Ordinance and came into operation on September 1, 1979, extended the prohibition of employment of children to the non-industrial sector, except in certain circumstances and subject to certain conditions. Children aged 13 may be employed in certain occupations in non-industrial establishments, except in occupations prohibited in the regulations. Types of employment and conditions, among other things, depend on whether the child has completed Form III of secondary education.

       With effect from September 1, 1980, the minimum age of employment will be raised to 15. The labour inspectorate will gradually be expanded to cope with the additional enforce- ment duty.

In 1979, the labour inspectorate made 152,963 day and night inspections of places of employment, most of which were industrial establishments. In addition, three special campaigns against child employment were mounted in 25,066 factories. During the year, 250 cases involving 250 children were brought before the courts.

       Under the Factories and Industrial Undertakings Ordinance and regulations, women and young people aged 14 to 17 are permitted to work a maximum of eight hours a day, six days a week. After five hours of continuous work, women and young people aged 16 and 17 must be given a meal or rest break of at least 30 minutes; in the case of young people aged 14 and 15, the break must not be less than one hour. In addition, the regulations limit overtime employment for women to 200 hours a year.

EMPLOYMENT

49

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 on January 1, 1980. Overtime employment for young people aged 14 and 15 has always been prohibited.

As there is no statutory restriction on the hours of work for male workers aged 18 and above, they generally work longer hours than female workers. According to the Report on the September, 1979, Labour Force Survey, published by the Census and Statistics Depart- ment, the average hours of work were about 50 a week. However, there were marked variations in the average hours of work for different occupations and industries. Sales and service workers, and workers in the wholesale and retail trades, restaurants and hotels worked the longest hours. People in financing and business services worked the shortest. 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 certain stringent conditions. This concession is reviewed annually.

Under the Factories and Industrial Undertakings Regulations, no man may be employed to work underground in mines, quarries, and industrial undertakings involving tunnelling operations unless he has been 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

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

During the year, 18 new unions were registered; 16 of them were formed by civil

servants.

Of the 396 trade unions on the register at the end of the year, 340 were employees' unions with an estimated membership of 402,600; 41 were merchant or employer organi- sations with an estimated membership of 4,200; and 15 were mixed organisations of employees and employers, with an estimated membership of 5,890.

       Many of the employees' unions are either affiliated to, or associated with, one of the two local societies registered under the Societies Ordinance - the Hong Kong Federation of Trade Unions and the Hong Kong and Kowloon Trades Union Council.

       The Hong Kong Federation of Trade Unions, a left-wing organisation, has 66 affiliated unions. A further 30 unions, nominally independent, are friendly towards this federation. Members of those affiliated and associated unions are concentrated in shipyards, textile mills, public transport and public utilities.

The Hong Kong and Kowloon Trades Union Council has right-wing sympathies and is affiliated with the International Confederation of Free Trade Unions. It has 74 affiliated unions and nine associated unions, the members of which are mainly employed in the catering and building trades.

The remaining 161 employee unions are politically independent and their members mostly are from the civil service and the teaching profession.

Labour Administration and Services

The Labour Department has an establishment of 1,434 and its services are continually 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.

50

EMPLOYMENT

The Labour Department initiates labour legislation and ensures that Hong Kong's obligations under international labour conventions are observed. The department is made up of 13 divisions: administration, air pollution control, apprenticeship, development, em- ployment services, employment conditions, factory inspectorate, industrial health, prosecu- tions and training, workmen's compensation, training council, labour relations, and mines.

Labour Relations

The Labour Relations Ordinance provides machinery for special conciliation, voluntary arbitration and boards of inquiry for settling trade disputes that cannot be resolved through ordinary conciliation. However, so far, it has not been necessary to invoke special concilia- tion or to refer any trade dispute to arbitration or a board of inquiry. In 1979, 128 trade disputes were settled by ordinary conciliation.

       In 1979, the Labour Relations Service of the Labour Department dealt with 11,156 labour problems. Most 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 46 work stoppages. The number of working days lost in these disputes totalled 39,743, compared with 30,927 in 51 work stoppages in 1978.

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 1979 the tribunal dealt with 3,804 cases involving employees as claimants, and a further 431 cases in which the claims were initiated by employers. More than $7 million was awarded by presiding officers. Of the cases dealt with by the tribunal, 90 per cent were referred by the Labour Relations Service after unsuccessful conciliation attempts.

       The Labour Tribunal (Amendment) Ordinance 1979, effective from June 22, 1979, ex- tended the period within which claims could be filed with the Labour Tribunal from six to 12 months. This extension enabled the tribunal to deal with certain claims which formerly would have been outside its jurisdiction because of the six-month time limit.

       Not many establishments have set up formal joint consultative committees. However, this does not necessarily mean that there is inadequate communication between manage- ment and labour. In Hong Kong, where more than 90 per cent of the manufacturing establishments employ less than 50 workers, informal consultation often takes place when the need arises. Nevertheless, officers of the Labour Relations Service continue to visit employers to promote joint consultation and labour relations. A new booklet, Simple Ways to Achieve Labour-Management Communication and Co-operation, published by the Labour Department, sets out the guidelines for avoiding labour-management discord through effective communication. It has been well received.

Finding Employment

The Labour Department's Local Employment Service operates a free placement service. It has 13 offices linked by a facsimile system which distributes information on employment opportunities. During the year, 22,362 people were successfully placed in employment in the private sector and in government departments.

The Special Register, a branch of the Local Employment Service, provides assistance to graduates of overseas and local universities and job-seekers who possess post-secondary or professional qualifications. A total of 254 persons found employment through this register. Planning for the setting up of a new, centralised selective placement service for the disabled is well under way. By stages, this new service will take over the work of the Job

EMPLOYMENT

51

Placement Unit of the Social Welfare Department and the Employment Service of the Hong Kong Council of Social Service and other voluntary agencies. In stage one, which is expected to become operational in 1980, the service will provide employment assistance to physically disabled job-seekers. Its services subsequently will be extended to mentally disabled and socially disadvantaged job-seekers.

       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 398 contracts were attested, compared with 461 in 1978.

       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 5,658 such contracts were attested.

Under the Employment Ordinance, all profit-making employment agencies - unless in an excluded class - must obtain a licence from the Commissioner for Labour before starting operations. During the year, the department issued 68 licences to employment agencies dealing with local employment and 12 to those catering for employment overseas.

Information on Careers

The Youth Employment Advisory Service of the Labour Department 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. The service also produces a monthly careers newsletter which is distributed to secondary schools, youth centres and other youth organisations.

       In 1979, officers of the service gave 264 talks on careers to some 38,000 students in 165 schools. The service also organised 16 seminars and took part in 25 other activities to provide careers information to students, teachers, parents and interested individuals.

       The service operates a 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 recordings and other resources.

       The Labour Department's eighth careers exhibition was held at the Kowloon-Canton Railway terminus in Hung Hom in December. A total of 25 exhibitors from commerce, industry and government took part in the exhibition, which attracted some 120,000 visitors. During the year, 10 mini-careers exhibitions were staged on a specially-designed truck that visited housing estates, parks, community centres and schools.

Industrial 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, on building and engineering construction sites, and at 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 inspec- torate also investigates industrial accidents.

       The Labour Department, in conjunction with the Government Information Services, continued its long-term publicity programme to promote industrial safety. This involved contact with the news media, television spots, and a large-scale industrial safety and health exhibition at the Kowloon-Canton Railway terminus in Hung Hom.

52

EMPLOYMENT

      Throughout the year, the Industrial Safety Training Centre provided courses for students and workers from various industries. The centre has a display of machine guards, models depicting safe working practices on construction sites, and personal protective equipment.

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. Control is achieved by environmental and biological investigations and through monitoring, medical examinations and health education.

      The Industrial Health Unit investigates occupational health hazards. It undertakes medical and pathological examinations of workers exposed to lead, fluoride, ionising radiation and other occupational health hazards, and of government 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.

       The Industrial Hygiene Unit is concerned with protecting workers against environmental conditions which may adversely affect their health. The unit carries out field surveys to evaluate the working environment of industrial undertakings and recommends measures to reduce industrial health hazards. It also investigates complaints about adverse working conditions and injuries caused by chemicals; thermal discomfort; inadequate ventilation; noise and lighting; and airborne contaminants.

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

       During the year, with funds awarded under the United Nations Development Programme, the Labour Department acquired modern noise-monitoring equipment and enlisted the services of a consultant who spent three months in Hong Kong studying the problem of industrial noise. The consultant has made certain recommendations and they are being examined by the department.

Workmen's Compensation

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

      The Workmen's Compensation (Amendment) (No. 2) Ordinance 1978, which added pneumoconiosis to the list of occupational diseases covered by the ordinance, has not been brought into effect because of practical difficulties in implementing the compensation scheme. A revised scheme is being worked out which, it is hoped, will be implemented in 1980.

      The working party appointed by the Commissioner for Labour to review comprehen- sively the Workmen's Compensation Ordinance submitted its report in December, 1978. Legislation is being drafted to implement the more immediate recommendations.

EMPLOYMENT

Industrial Training

3333

53

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 training geared to meet the developing needs of Hong Kong's economy. On the council's recommendation, the Governor appointed 10 industry training boards, six commerce training boards and six committees to help the council.

The 10 industry 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; plastics; printing; shipbuilding and ship repairs; and textiles.

The six commerce training boards handle manpower training in six major commerce sectors: accountancy and allied fields; banking; hotels, catering and tourism; insurance; journalism; and the wholesale, retail, import and export trades.

The six committees examine problems common to more than one industry or commerce sector. They are: apprenticeship; instructor training; management and supervisory training; technical training in institutions; translation; and vocational training.

The Hong Kong Training Council also has two ad hoc committees - one on training in industries not covered by the industry training boards and the other on technologist training. The council submitted its fifth report to the Governor in May. The Training Council Division of the Labour Department is the secretariat of the council.

During the year, manpower surveys were conducted by the five training boards covering the building and civil engineering, electrical, plastics, clothing, and textile industries. The Committee on Instructor Training also conducted a survey to collect information on the training of instructors. At the same time, 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 Publications Centre in Central District.

The Clothing Industry Training Authority and the Construction Industry Training Authority are statutory bodies which were appointed by the Governor in September, 1975. The Clothing Industry Training Authority is empowered to collect a training levy on the total export value of clothing items manufactured in, and exported from, Hong Kong. The training authority for the construction industry collects a levy based on the value of all construction work undertaken in Hong Kong. The revenue is used to maintain the Clothing Industry Training Centre and the Construction Industry Training Centre which provide practical training.

The Apprenticeship Ordinance, which came into effect in 1976, provides a legal frame- work for the training of craftsmen and technicians. The ordinance requires an employer to provide a contract of apprenticeship when engaging an untrained person aged between 14 and 18 in a designated trade. The contract must then be registered with the Commis- sioner for Labour. Employers of apprentices engaged in non-designated trades, or of apprentices over 18 engaged in designated trades, also may send their contracts of appren- ticeship to the Labour Department for voluntary registration.

Five construction and furniture trades were designated in July, 1979, bringing the total number of designated trades to 36. All these trades were recommended for designation by the Hong Kong Training Council.

The Apprenticeship Division of the Labour Department is responsible for administering 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

54

4

EMPLOYMENT

co-operating with technical educational institutes to ensure that apprentices receive the necessary complementary technical education.

      In 1979, the Apprenticeship Division registered 5,161 apprenticeship contracts, of which 770 were for non-designated trades. These contracts covered 4,674 craft apprentices and 487 technician apprentices. By the end of the year, there were 8,858 apprentices being trained in accordance with the Apprenticeship Ordinance.

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, mainly at technical institutes.

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

6

Primary Production

ALTHOUGH less than three per cent of Hong Kong's working population is involved in fishing and farming, they produce a considerable amount of the community's fresh food requirements such as vegetables, poultry, eggs, pigs and fish.

According to the United Nations Food and Agriculture Organisation, Hong Kong is one of the world's highest consumers of protein per head of population, with every man, woman and child having an average daily protein intake of some 107 grams. Hong Kong's primary producers help to satisfy some of this demand, producing about 72 per cent of the total live chicken requirements and about 20 per cent of the live pigs slaughtered. Enough eggs are produced to make Hong Kong self-sufficient in eggs if it wished, with some 333,000 local birds and 27,500 hybrid birds being kept in breeding flocks in 1979. The territory's fishing fleet of some 5,400 vessels catches about 90 per cent of all fresh marine fish eaten and pond fish farmers produce about 16 per cent of the freshwater fish consumed.

      In addition, farmers in the New Territories grow nearly 40 per cent of the vegetables consumed by Hong Kong residents. The agricultural industry remains buoyant even though a mere 9.5 per cent of Hong Kong's total land area is used for farming.

      The gale-force winds and heavy rainfall brought by Typhoon Hope caused widespread losses within the primary industries in August. However, despite the damage caused, production was not severely affected in the long term. An Agriculture and Fisheries. Department survey following the typhoon showed that some 1,170 hectares of vegetables, 140 hectares of flowers, more than 3,500 pots of flowers and plants, and 19,500 fruit trees were destroyed. An estimated 119,000 head of poultry and 3,000 pigs were killed. The Agriculture and Fisheries Department paid out $2.34 million in rehabilitation allowances to farmers who suffered losses and some $100,000 to the fishing industry.

Agriculture and Fisheries Department

The Agriculture and Fisheries Department encourages optimum land usage in Hong Kong's rural areas. It provides technical, development and advisory services to the farming and fishing industries. In addition, it handles the administrative organisation and super- vision of co-operative societies of all types and supervises credit unions. The department 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 Agriculture and Fisheries Department provides a development information service to the primary industries. Details of new projects put forward are carefully considered; those expected to prove both viable and in the interests of Hong Kong are encouraged.

56

PRIMARY PRODUCTION

Consumer demand and local primary production, within the context of world food production and supply, are investigated to enable appropriate development planning. All available statistical data on production factors and food supplies, including imports, are collected and analysed to help formulate local production and marketing policies. The business efficiency of different sectors within the 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.

       Research programmes of the department cover crops, pest control, animal husbandry, and 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 covers marine resources, aquaculture, hydrography and marine pollution problems. In marine resources research, emphasis is placed on recommending new fish stocks for commercial exploitation within the range of the Hong Kong fleet, and on monitoring the performance of existing capture fisheries. Aquaculture is concerned with culture system development, with the objective of increasing the average yield rate over a given area and time. Hydrographic investigations are designed to supply environmental information for an assortment of biological programmes. Marine pollution research is 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.

Developing Farming and Fishing

Owing to the shortage of labour in Hong Kong and its rising cost, the main development in the agricultural industry in recent years has been the introduction of labour-saving devices. Farmers use pre-emergence herbicides for weed control in market garden crops, and there is widespread use of small farm machines and sprinkler irrigation. At the end of 1979, there were 2,900 rotary cultivators and 2,000 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 Department. The net houses, which are particularly suited for leafy green vegetables, protect crops from bad weather, insects and birds. Technical assistance, agricultural loans and related services have been made available to farmers to promote their use.

Teams of agricultural development officers are posted throughout the New Territories to deal with farming and pollution problems, and with co-operative societies and rural associations. Both credit facilities and technical advice are available to farmers and the agricultural development officers also assist them in land development and rehabilitation. In the rural development programme in 1979, more than 5,700 farmers attended farm. discussion groups led by professional and technical officers from the Agriculture and Fisheries Department. Some 100 field demonstrations of chemical weed control were conducted in the main vegetable-growing areas for the benefit of farmers. Officers also made more than 100,600 visits to farmers and co-operative societies, and many farmers visited government experimental farms and farming projects.

Fisheries development work involves modernising fishing craft and introducing more efficient fishing gear and navigational aids. An advisory service on hull design and deck arrangement is provided for fishermen, while experiments and demonstrations are con-

PRIMARY PRODUCTION

57

ducted to test the suitability of new fishing gear. Fishermen's training classes in naviga- tion, steering and engine operation are organised in the main fishing ports. Education is available to fishermen's children through 14 schools run by the Fish Marketing Organisa- tion. At the end of 1979, 7,000 children were attending these schools. A further 10 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, 1979, loans issued since the inception of these three funds totalled $124.7 million. Of this, $117 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 fisher- men's co-operative societies. The Fishing Marketing Organisation Loan Fund, with a ceiling of $8.5 million, is another important source of loan finance for fishermen. The organisation also administers a revolving loan fund, financed by the Co-operative for American Relief Everywhere (CARE), specifically for shrimp fishermen. At December 31, 1979, loans issued since the inception of these four funds totalled $91.7 million, of which $81.8 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, 1979, some 11,650 farmers and more than 1,830 fishermen were members of co-operative societies formed to serve their various needs. There were 78 societies and two federations among the farming community, and 68 societies and four federations supported by fisherfolk. A further 253 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.

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 12,100 members were registered. There were 30 credit unions com- prising 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 1,061 square kilometres. Of this, 9.5 per cent is used for farming, 74.8 per cent is marginal land with different degrees of sub-grade character, and

58

PRIMARY PRODUCTION

built-up areas comprise the remaining 15.7 per cent. The need to establish new towns and expand residential areas in the New Territories has resulted in an encroachment on agri- cultural land. The losses, however, have been partially offset by highly intensive farming. The New Territories Administration is responsible for land tenure and certain aspects of land development in the New Territories.

Approximate

area

(square

Class

Percentage kilometres) of whole

Remarks

(i) Built-up (urban areas)

166

(ii) Woodlands

(iii) Grass and scrub lands

125

616

(iv) Badlands

(v) Swamp and mangrove lands

(vi) Arable

(vii) Fish ponds

83

one & ama

15.7

Includes roads and railways.

11.8

58.0

Natural and established woodlands. Natural grass and scrub, including

44

4.1

9

.9

7.8

18

1.7

Plover Cove Reservoir.

Stripped of cover. Granite country.

Capable of regeneration. Capable of reclamation.

Includes orchards and market gardens. Fresh and brackish water fish farming.

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, fruit, rice and other field crops. The value of crop production has increased from $89 million in 1963 to $448 million in 1979 - a rise of 403 per cent. Vegetable production accounts for more than 89 per cent of the total value, having increased from $58 million in 1963 to $398 million in 1979.

The main vegetable crops are white cabbage, flowering cabbage, lettuce, Chinese kale, radishes, watercress, leaf mustard, spring onions and chives. They grow throughout 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 vegetables 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 are produced in winter; and ginger lilies and lotus flowers grow 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 3,490 hectares in 1979.

       The amount of land used to cultivate rice has dropped from 9,450 hectares in 1954 to 40 hectares in 1979. Rice production has given way to intensive vegetable production, which gives a far higher return. Much former paddy land around the more remote villages has fallen into disuse and now lies fallow.

       Various types of fruit are grown in Hong Kong. The principal crops are longan, lychees, wampei, tangerines, local lemons, bananas, guavas and pineapples. Land under orchards in 1954 totalled 390 hectares; by 1979 it was 570 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

PRIMARY PRODUCTION

59

vegetables. Some 90 hectares were under rain-fed crops in 1979, compared with 1,410 hectares in 1954.

       Because there is insufficient land for extensive grazing, pigs and poultry are the principal animals reared for food. Pigs in Hong Kong are mostly crosses of local animals with exotic stock; pure strains of the Chinese type are difficult to find. The value of locally-produced pigs killed in 1979 amounted to $217.4 million.

       With an annual production value of $400 million, the poultry industry - including ducks, pigeons and quail - continues to develop. Many farmers have adopted advanced methods of management and have successfully adapted them to local conditions. During 1979, local chicken production increased by 8.2 per cent to about 16.4 million birds con- sumed, with a decrease of 8.8 per cent in the number of live chickens imported from China. The value of hen eggs produced amounted to $35 million for the year.

       While local cattle are used mainly for work, 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 they are kept under control by vaccination. Newcastle disease in poultry is controlled by the use of Ranikhet and intranasal-drop vaccines. Investigations to establish the incidence of intercurrent disease in both pigs and poultry are undertaken at the govern- ment'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 introduction of rabies, 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 campaign 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.

Fishing Industry

Marine fish are one of Hong Kong's most important primary products. More than 150 fish species of commercial importance frequent the waters of the adjacent continental 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 189,790 tonnes with a wholesale value of $1,190 million in 1979. These figures represent increases of 17 per cent in weight and 43 per cent in value com- pared with 1978. 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, 90 per cent came from marine capture and 10 per cent from culture fisheries.

       An estimated 35,700 fishermen work a fleet of 5,400 vessels, of which 90 per cent are mecha- nised. 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 72 per cent or 109,000 tonnes of marine fish landed in 1979. The total landed catch of live and fresh marine fish available for local consumption in 1979 amounted to 94,276 tonnes with a wholesale value of $502 million. This represented 90 per cent of the local consumer demand.

      Pond fish farming is the most important culture activity. Fish ponds covering 1,830 hectares are located in the New Territories, principally in the Yuen Long district. Tradi- tional pond fish farming is similar to that practised in China for hundreds of years. Several

60

PRIMARY PRODUCTION

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. Owing to the increasing urbanisation of the New Territories, the land area devoted to fish ponds has levelled off. During the year, they yielded 6,540 tonnes or 16 per cent of the local consumption of freshwater fish.

In the past decade, there has been considerable development in marine fish culture. Young fish, captured from their natural environment, are fattened in cages suspended from rafts in sheltered bays throughout Hong Kong, particularly in the eastern New Territories.

      In 1979, live marine fish supplied by this activity from some 60 sites amounted to 720 tonnes valued at $32 million. Legislation is being introduced to allow the orderly develop- ment 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 Vegetable and Fish Marketing Organisations administered by that department. During 1979, 29 per cent of the total quantity of locally-produced vegetables and 72 per cent of the total landings of marine fish were wholesaled through the Vegetable and Fish Marketing Organisations. Retail marketing of fresh food is a matter for the Urban Council and for the Urban Services Department.

      The Vegetable Marketing Organisation operates under the Agricultural Products (Marketing) Ordinance, which provides for a board to advise the Director of Marketing (the Director of Agriculture and Fisheries). Its main concerns are transporting locally- produced vegetables from the New Territories to the wholesale market in Kowloon, pro- viding marketing facilities, and supervising sales and financial transactions 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 growers 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, 55,600 tonnes of vegetables valued at $115.6 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. 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; market and marketing improvements; support for the 14 schools run for the benefit of fishermen's children; and the award of scholarships for secondary and tertiary education. In 1979, the wholesale fish markets handled 88,308 tonnes of marine fish, crustacea and molluscs which were sold for some $400 million. This included 638 tonnes of imported marine fish sold through these markets.

      Facilities in the existing wholesale markets are inadequate for handling the ever-increasing quantities of imported fresh vegetables, fruit, poultry, eggs, freshwater fish and crustacea. There is widespread obstruction, traffic congestion and low marketing efficiency at high costs. With the obvious need to improve these markets, plans are going ahead to establish new wholesale markets in Kowloon and on Hong Kong Island. In the interim, the govern- ment has brought a number of temporary wholesale markets into operation.

:

LANTAU

Island in the Sun

፡፡

Twice the size of Hong Kong Island, Lantau is a lovely island where the past merges with the present. Bustling at week- ends with cheerful crowds of swimmers, campers and hikers revelling in sun, sea and greenery, Lantau moves at a different pace mid-week. Then, undistracted, visit- ors can see Hakka women tending market gardens; small villages set in panoramic valleys; and labourers working on road improvement works and building Spanish- style holiday villas. The outlying island has a local population of about 28,000 living in about 50 villages and market towns. Rich in tradition dating back to the Song (Sung) Dynasty (960-1279), Lantau possesses several important archaeological sites. In 1979, the more recent Tung Chung Fort, built by the Chinese in the early 19th century, became a protected monument. Mountainous, to a large de- gree, the island's highest point is Lantau Peak, some 934 metres above sea-level. Nearby is the magnificent Po Lin Buddhist Monastery, popular with Hong Kong residents and tourists alike. Because of growing urbanisation on the New Terri- tories' mainland, Lantau, with its vast country parks, beautiful beaches and seren- ity, has become an important recreational outlet. To cater for increased holiday- makers and to provide better amenities for local people, a number of development and tourism programmes are going ahead. On a larger scale, studies are proceeding on the feasibility of a new airport at nearby Chek Lap Kok Island, a suspension bridge link- ing Lantau with the mainland, and the development of an industrial base on northern Lantau.

Previous page: A Hakka woman and her cow complete a rustic scene in the Tung Chung valley. Left: Ducks bob in a sea- water inlet; two visitors read the inscription on the Promise Bell at Po Lin Monastery; fish drying in the sun form a geometric pattern.

||

In front of a religious plaque at Po Lin Monastery, two domestic workers enjoy a morning chat while polishing brassware from the altar.

     At a tea garden, located near Lantai Peak, workers carrying cane baskets pick leaves to make a variety of Chinese teas.

2

2

7

::

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      A villager and his companion, shielded from the sun by an umbrella; make their way along a rural- pathway surrounded by water hyacinthe s

፡፡

::

...

24

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#

"ሩ

#

#..

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الحياة

     On location at popular Cheung Sha Beach, a television crew films a dramatic sword fighting scene a striking contrast to the usual T-shirt and bikini crowd.

Gi Ci

....

Bending forward to select a shell, a Silver Mine Bay stallholder is busy at weekends when holiday-makers haggle for her collection of shells and trinkets.

HNE TRAS

NARAR

BARABAN

.

#.

*8** * .⠀

隆 合成隆

Villagers at Tai O prepare to disembark from a rope-propelled ferry which has carried them on a : 40-cent journey across the narrow creek dividing the market town.

BALI ZAWOD. want abuse MA

MALO FRAUEN vas zamon XA D.

WIE BIASATAN. *x*x*

BANANA KA DA SILHA at may mas ma

Wow X VAN MAXI asr

..

:

:::: X

.

PRIMARY PRODUCTION

Mining

61

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 two prospecting licences were valid for different areas.

Kaolin, feldspar and quartz are mined by opencast methods. Most of the feldspar is exported to Taiwan, while the quartz and kaolin are consumed by local industries.

The Mines Division of the Labour Department enforces legislation and safety regulations relating to mining and explosives. It processes mining and prospecting applications; inspects mining and prospecting areas, stone quarries, blasting sites and explosives stores; and issues shotfirers' blasting certificates. The division also controls the possession, con- veyance, storage, manufacture and use of explosives in Hong Kong, including the delivery of explosives from government depots to blasting sites. In addition, it manages government explosives depots that provide bulk storage facilities for explosives imported into Hong Kong.

Towards the end of the year, the government explosives depot on Green Island, situated off the western tip of Hong Kong Island, was moved to a new location on Stonecutters Island. Explosives stocks at the High Island depot were being reduced gradually to prepare for its closure early in 1980. Although overall storage capacity will be con- siderably reduced, the opening of a new commercial explosives factory on Stonecutters Island in early 1980 will ensure a steady supply of explosives to the construction industry. The consumption of 6,870 tonnes of explosives during the year was the highest ever recorded.

7

Education

XXD

Hm

      ONE of the major achievements in education in 1979 was that junior secondary education became compulsory for children up to the age of 14 from September, 1979. From Septem- ber, 1980, education will become compulsory for children up to 15 years or Form 3. This follows the introduction of nine years' free schooling for every child in 1978.

To support this legislation, the power of the Director of Education to serve attendance orders on parents withholding children from school without reasonable excuse was extended. From September, 1979, it was extended to cover children up to the age of 14 and it will be extended to children under 15 in September, 1980.

Compulsory school attendance has also been reinforced with the extension of the minimum age of employment of 14 to the non-industrial sector from September, 1979; and the raising of the minimum age of employment from 14 to 15 from September, 1980. In Hong Kong, only a small number of children continue to pay for primary or junior secondary education - either because they attend English schools intended primarily, although not solely, for the expatriate community, or because they choose to attend fee- charging schools even though free schooling is available. The government's English schools were disestablished and handed over to the government-subvented English Schools Founda- tion in September, 1979.

       Education is one of the government's largest financial commitments. Some $2,196 million - $1,949.7 million in recurrent expenditure and $246.1 million in capital expenditure - is being spent on education in the 1979-80 financial year.

       Notable advances were made in education during 1979 with the implementation of many of the proposals contained in the government's White Paper on the Development of Senior Secondary and Tertiary Education, published in October, 1978. The White Paper 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.

      An additional 19,400 secondary places were provided in new school buildings and extensions which were completed during the year. In accordance with the provisions of the White Paper, a further 33 new secondary schools are planned for completion by 1981 to achieve the target provision and to improve regional distribution.

       The White Paper also proposed that all private non-profit-making schools, which were suitable and willing, should be brought by stages within the full scheme of assistance provided under a common Code of Aid. As a result, more than 70 private non-profit-making schools in the 'bought-places' scheme have been invited to participate in a four-phase conversion scheme into fully-aided schools. All new non-profit-making schools, which are completed after September, 1979, will operate on a fully-aided basis from the outset. A number of existing aided schools were also restructured from September, 1979,

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to provide additional Forms 4 and 5 places within the next few years. A few private independent schools, with the necessary standard of management and facilities, were admitted into the assisted non-profit-making schools scheme (known as per caput grant scheme) to enable them gradually to improve their standards to a level similar to that of aided schools.

      To provide an expanded and better co-ordinated library service for both students and teachers, from September, 1979, one additional teaching post was allowed in each govern- ment and aided secondary school with 18 or more classes. The schools were able to appoint a non-graduate teacher to take charge of their libraries on a full-time basis. More than 100 secondary schools are benefiting from this scheme and the number is eventually expected to increase to about 200 schools.

      In 1979, two private approved post-secondary colleges - the Hong Kong Baptist College and Lingnan College - began receiving substantial recurrent financial assistance from the government in the form of a block grant in respect of students enrolled in their courses. This followed the restructuring of their courses under the terms of the White Paper on the Development of Senior Secondary and Tertiary Education.

      Special education continued to expand during 1979 in line with the objectives of the White Paper on Rehabilitation published in October, 1977. An additional 3,562 places were provided, with major efforts being made to increase the number of places available for mentally-handicapped children.

-

      The Student Guidance Officer Scheme, one of the projects emphasised in the White Paper on Social Welfare, published in April, 1979, aims at providing educational, vocational and personal guidance to pupils. Student Guidance Officers former teachers who are given in-service social work training - provide special services in primary schools with the support of professional social workers from the Social Welfare Department and voluntary agencies. During the year, the scheme forged ahead and by 1980 it is planned that all primary schools will be covered by this service.

      A number of consultative arrangements were announced in June, 1979, which aim at improving the channels of communication between the Education Department, aided school management committees and teaching staff. The arrangements, which are being introduced during the 1979-80 academic year, include seminars on management and curricula, small group discussions between teacher representatives and senior officers of the Education Department, closer and more regular contact between area officers of the Education Department and aided school teaching staff, and formal procedures for management-staff consultation in schools.

In July, the Board of Education presented the government with a special committee report on Form 6 education. Aimed at a broadened curriculum which would benefit all Form 6 students, whether or not they subsequently entered tertiary education, it contained recommendations to liberalise the way subjects are studied and to introduce a new language and communication subject. It also made suggestions for the restructuring of the curriculum framework and the setting up of mechanisms for curriculum development. The report is being studied by the government, and interested bodies are to be consulted before final decisions are made.

       The greater numbers of immigrants from China arriving in Hong Kong in 1979 created an increased demand for social services provided by the government. The effect on the provision of education facilities was being carefully studied and measures will be taken to ensure that the increased demand for school places at various levels of education is met as it arises.

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Kindergartens

EDUCATION

A total of 765 kindergartens provide pre-school education for 192,517 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 managers, teachers, parents and members of the public. The government gives assistance 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 through a two-year part-time training course, seminars and exhibitions.

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 are 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 government 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.

In September, 1979, the primary school enrolment totalled 542,327 compared with 549,967 in the previous year. In addition, 13,218 pupils attended night schools. During the past year, 17,380 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.

       The Student Guidance Officer Scheme, launched in December, 1978, to provide educa- tional and vocational guidance to all pupils and personal guidance to pupils who have learning difficulties and behavioural problems, gained impetus in 1979. It is planned to expand this scheme to cover all primary schools in 1980.

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

language is English.

      Primary school leavers who want subsidised junior secondary school places participate in a system of allocation known as the Secondary School Places Allocation (SSPA). The 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 94,646 Primary 6 leavers participating in the SSPA were allocated Form 1 or Middle 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.

      During 1979, a government Green Paper setting out problems at pre-primary and primary school levels and making proposals for dealing with them was being prepared.

Secondary Education

There are four main types of secondary schools - Anglo-Chinese secondary schools, Chinese middle schools, secondary technical schools and prevocational schools. The 333 Anglo- Chinese grammar day schools have enrolments totalling 378,570. They offer a five-year course in a broad range of academic subjects leading to the Hong Kong Certificate of

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Education examination. The medium of instruction is mainly English, although prominence is given to Chinese subjects taught in Chinese. Certificate of Education candidates with suitable results may enter a two-year sixth-form course to prepare for the Advanced Level Examination of the University of Hong Kong or the United Kingdom General Certificate of Education at both ordinary and advanced levels.

The 97 Chinese middle schools accommodate 52,396 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 course to prepare pupils for the Hong Kong Higher Level Examination.

A total of 23 secondary technical schools provide courses for 18,244 pupils. Ten of these schools are run by government, 12 are aided and one is private. Instruction is in English with Chinese taught as a second language. Secondary technical establishments prepare their pupils for the Hong Kong Certificate of Education examination but emphasis is given to technical and commercial subjects. Suitable candidates can continue their studies in Form 6 or at technical institutes, the polytechnic or the Technical Teachers' College.

Prevocational schools, all of which are fully subsidised by the government, provide a three-year secondary course made up of 50 to 60 per cent general education and 40 to 50 per cent technical education. The curriculum usually covers three major fields of industrial or commercial activity, designed to introduce pupils to as wide a field of employment as possible. Technical areas covered include mechanical and electrical engineering, fabrication, printing, textiles, clothing, commerce, retailing, food and hotel services, automobile repairs and servicing, construction (wood), and air-conditioning and refrigeration. Excessive specialisation is not encouraged 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. Considerable efforts are made to ensure that prevocational school-leavers have the opportunity to enrol in recognised apprenticeship training schemes and to continue their studies in technical institutes. This form of technical training is supported by the Hong Kong Training Council and is becoming widely accepted by industry.

In September, 1979, the total number of prevocational schools was 13, with a total pupil capacity of 9,000 places. A further nine schools of this type are planned.

There has been a steady increase in the number of pupils enrolled in all types of day-time secondary schools. In September, 1979, there were 463,798 such pupils, compared with 462,210 in 1978. A further 60,594 pupils attended tutorial or evening classes, where in- struction is offered in secondary-level subjects, the most popular of which is English. During the 1978-9 school year, 22,046 new secondary places were provided in new school buildings. A significant achievement during the year was the introduction of a new library officer scheme. For the 1979-80 academic year, both government and aided secondary schools with 18 or more classes were able to appoint a non-graduate teacher to take charge of the school library on a full-time basis. More than 100 secondary schools initially benefited from the new scheme.

In September, 1979, the levels of standard and non-standard school fees for Forms 4 and 5 were raised from $400 per annum and $200 per annum to $500 per annum and $300 per annum, respectively. For Form 6 they were increased from $450 per annum and $220 per annum to $620 per annum and $330 per annum, respectively. It was the first increase in these levels in 14 years. The increases are modest when compared with the 400 per cent rise in the average gross cost of a senior secondary place in an aided school since 1965. The

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      existing fee remission scheme will continue to protect needy families from hardship arising from increased fees.

Special Education

The provision of special education continued to expand in 1979. The number of special places for handicapped children increased from 19,160 to 22,722. There are 58 special schools - three for the blind, four for the deaf, 20 for the physically disabled, 23 for the mentally handicapped and eight for the maladjusted and socially deprived. In addition, there are 133 special and resource classes in ordinary government schools 64 for the slow-learning, 32 for the partially-hearing, seven for the partially-sighted and 30 for the maladjusted; and 405 special and resource classes in ordinary aided schools - 375 for the slow-learning and 30 for the maladjusted. As well, a total of 620 less severely physically- disabled children have been integrated into ordinary classes in government and aided schools. The progress of these children is supervised by the Special Education Section of the Education Department.

       A notable development in special education has been the implementation of a policy to provide education for all mentally-handicapped children, irrespective of the degree of their handicap. Before, they received less formal training in centres operated or subvented by the Social Welfare Department. Since April, 1979, the Director of Education has embarked on a phased programme of takeover of responsibility for the provision of education for these children. Fifteen centres previously subvented by the Social Welfare Department have thus been transferred to the Education Department.

       In addition to an expansion of places in special education, the Codes of Aid for primary and secondary special schools and special classes were revised in April, 1979, to provide subsidies for approved paramedical and social work services in special schools. This is enabling a comprehensive and multi-disciplinary approach in rehabilitating disabled school children to be carried out effectively.

       Preventive measures in the form of screening, assessment and remedial services have been adopted in order to identify disabilities in school-age children and to take remedial action as early as possible. In 1979, vision screening was expanded to cover approximately 80 per cent of the Primary 1 enrolment. Other screening services were also expanded with the targets of extending group testing to all Primary 1 and 3 pupils by 1980; audiometric screening to all Primary 1 pupils by 1981; and speech screening to all Primary 3 pupils by 1985. Remedial services including adjustment groups, teacher and parent counselling, speech and auditory training, and speech therapy were also expanded substantially. In the course of the year, 273,600 children were provided with such services at the Education Department's special education services centres.

       The expansion of special education has necessitated an increased effort in the training 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 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.

Technical Institutes

The fifth technical institute, situated in Kowloon Tong, will be officially opened in May, 1980. However, classes started on a limited scale in October, 1979. The five institutes together provide courses at craft and technician levels on a full-time, block-release, part-

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time day-release and evening basis. The main areas covered include: construction, electrical engineering, mechanical engineering, marine and fabrication, textiles and clothing, com- mercial studies, industrial technology, design, printing, hotel-keeping and tourism, as well as general studies. A number of short courses are also offered to meet the specialised require- ments of industry and commerce. During the first term of the 1979-80 academic year, there were about 3,000 full-time, 7,500 part-time day and 14,000 part-time evening students. A credit-unit system has been adopted for technician study programmes mainly to provide greater flexibility. Programmes in the main disciplines such as electrical engineering, mechanical engineering, and building and civil engineering have already been validated by the Technician Education Council in Britain, while validation for others is being sought. The validated programmes carry accreditation and recognition from a large number of institutions and professional societies, both locally and overseas.

       During the 1979-80 academic year, about 100 places were provided in technical institutes for handicapped students in various standard courses. This was in line with the government's policy of integrating the disabled into the community. A special unit was also established in the Technical Education Division of the Education Department to plan and advise on the provision of technical education and vocational training for the disabled.

A number of postal surveys have been conducted to collect information from past and present students. These have included an employment survey of former full-time students who left after completing the 1978-9 academic year, an opinion poll of final year part-time day-release students on the courses attended, and a 'tracer study' of former full-time graduates. The views of employers have also been sought, in collaboration with the industry training boards of the Hong Kong Training Council, on the usefulness of the technical institute courses to industry. These have provided the technical institutes with up-to-date information leading to the provision of new courses and the revision of existing courses to meet the demands of industry and commerce.

Post-Secondary Education

The three approved post-secondary colleges, namely, the Hong Kong Baptist College, the Hong Kong Shue Yan College and Lingnan College are the only institutions registered under the Post-Secondary College Ordinance.

The Hong Kong Baptist College, registered in 1970, has four faculties - arts, business, social sciences, and natural sciences and engineering - with an enrolment of 3,100 students. Sixteen departments cover 18 major fields.

       The Hong Kong Shue Yan College, registered in 1976, consists of three faculties - arts, social sciences and commerce with an enrolment of 3,000 students. The college has 11 departments and offers day and evening courses.

       Lingnan College was registered in October, 1978. It has faculties for arts, business and music with an enrolment of 630 students.

      With the implementation of the recommendations of the 1978 White Paper on the Development of Senior Secondary and Tertiary Education, government financial assistance was offered to the Hong Kong Baptist College and Lingnan College on their restructuring their courses to provide two-year courses at the Form 6 level, followed by further two-year courses at the post-Form 6 level leading to professional or vocational qualifications. Financial assistance in the form of a block grant to these two colleges is provided in respect of students enrolled on these courses. The colleges also offer additional one-year courses for students completing the two-year post-Form 6 courses who have demonstrated the ability

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to proceed to a higher award. The Hong Kong Shue Yan College declined the offer of government financial assistance under the terms of the White Paper and opted to retain its existing structure of four-year courses.

       A student loan scheme is available for eligible students at the approved post-secondary colleges. In addition, a student grant scheme will be introduced for eligible students at the Hong Kong Baptist College and Lingnan College in September, 1980.

      A number of private day and evening schools offer post-secondary courses of varying standards. They are registered under the Education Ordinance. None of these schools receives aid from the government.

Higher Education

     Grants and interest-free loans for some students at the University of Hong Kong and the Chinese University of Hong Kong are provided from public funds under a government scheme. 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 the 1979-80 academic year, $8.5 million in grants and $26 million in interest-free loans have been provided.

The student financing scheme was extended to Hong Kong Polytechnic students in 1976-7. Some $1.4 million in grants and $16 million in loans were provided by the government for polytechnic students in 1979-80. 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 involved - the govern- ment 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 universities and the polytechnic.

Hong Kong Polytechnic

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

      The establishment of a new department of institutional management and catering studies in early 1979 means the polytechnic has 17 teaching departments grouped under three divisions. The divisions are: the Division of Applied Science (comprising the depart- ments of applied science, building and surveying, mathematical studies, nautical studies and the school of social work); the Division of Commerce and Design (comprising the departments of accountancy, business and management studies, computing studies, design, institutional management and catering studies, and languages); and the Division of Engineering (comprising the departments of civil and structural engineering, electrical engineering, electronic engineering, industrial centre, mechanical and marine engineer- ing, and production and industrial engineering). In addition there are two institutes, namely, the Institute of Medical and Health Care and the Institute of Textiles and Clothing.

During 1979, some of the polytechnic diploma and certificate programmes were trans- ferred to the technical institutes run by the Education Department. This was in accordance

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with proposals contained in the government's White Paper on the Development of Senior Secondary and Tertiary Education. At present, the polytechnic offers full-time, sandwich, part-time day-release and part-time evening programmes of one to four years' duration, leading to the awards of associateship, advanced higher diploma, higher diploma, diploma, higher certificate, certificate and other qualifications. These cover a wide range of both technical and commercial subjects. Short courses preparing students for professional examinations are also organised. Details of the programmes offered, together with the entrance requirements and their professional recognition, are given in the polytechnic pro- spectus published annually.

Since 1972, student and staff numbers have increased tremendously. At the beginning of the 1979-80 academic year, there were approximately 7,100 full-time (including sandwich programme), 3,300 part-time day-release and 15,000 part-time evening students registered. In July, 1979, the staff strength stood at 1,691 comprising 656 teaching, 170 senior adminis- trative and 865 technical, clerical and ancillary staff.

       To meet the demand for additional accommodation, there is a three-phased campus development programme. The first and second phase buildings were completed in early 1977 and 1978, respectively. In 1979, construction work on the third phase commenced and it is scheduled for completion in October, 1980. A dental technology building on campus and a radar and seamanship centre at Kowloon Bay have also been completed to provide additional teaching and specialist facilities. To maximise space utilisation, extensive rehabil- itation and conversion work have been carried out in existing buildings.

       The polytechnic is the Hong Kong centre for the holding of annual examinations for the United Kingdom Council of Engineering Institutions, the Institute of Statisticians, the City and Guilds of London Institute, and the joint examination scheme for the London Chamber of Commerce and Industry and the Royal Society of Arts Examinations Board. In 1979, more than 4,200 candidates sat for these examinations. In addition, the polytechnic also offers accommodation and facilities for the examinations of 20 other professional institutions.

       Close liaison with the community is maintained through various channels. Polytechnic staff members assist and advise the Hong Kong Examinations Authority and the Hong Kong Training Council. Advisory committees have been set up for every department, centre and institute, and prominent people from commerce and industry, the civil service and the universities, with wide knowledge and experience in their fields, are appointed as members. Liaison and joint consultative committees have been formed with the Education Depart- ment, aimed at achieving co-ordination between developments at the polytechnic 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 for 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 investigational work for commerce and industry. A handbook entitled Polytechnic Services to the Community, giving details of the expertise and facilities available, is published regularly by the Poly- technic Consultancy and Investigational Work Committee.

In addition, staff members are actively engaged in research work of direct relevance to Hong Kong or of an applied nature. The Pro-tem research sub-committee was reorganised into the Research Committee in May, 1979, and it is responsible for overall research policies and the utilisation of research funds.

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University of Hong Kong

EDUCATION

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

Undergraduate places available in the various faculties and schools in the 1979-80 academic year were: arts 1,018; science 605; medicine 770; engineering 778; social sciences 740; architecture 240; and law 162. There were also 1,400 places for post-graduate students: 650 reading for higher degrees and 750 for diplomas and certificates.

       In addition to courses leading to Bachelor degrees, the university offers post-graduate courses leading to the degrees of Master of Arts, Master of Science in Engineering, Master of Social Sciences, Master of Social Work, Master of Business Administration, Master of Medical Sciences, and Master of Education. There is also provision for the research degrees of Doctor of Philosophy, Master of Philosophy, Doctor of Medicine, and Master of Surgery, as well as doctorates in Letters, Science, Social Sciences and Law. Certificates and diplomas are obtainable in the fields of law, education, psychology, various engineering subjects, Chinese language, medical sciences, and management studies.

       In 1980, the university will admit the first group of students to read for the new degree of Bachelor of Dental Surgery.

The Department of Extramural Studies in 1979 provided 585 evening and day courses in a wide variety of vocational and professional fields for more than 17,000 adult students. The number of full-time teaching posts (including demonstratorships) at the university at the beginning of the 1979-80 academic year was 629.

       The number of volumes held in the university's libraries in 1979 comprised 300,000 in the general library, 216,000 in the Fung Ping Shan Chinese Library, 47,000 in the medical library and 17,000 in the law library.

Research

In the Faculty of Arts, research is progressing into aspects of both the Chinese and English languages and literatures; the philosophy of language; the history of Chinese arts with special reference to painting; soil conditions; meteorology; biogeography; transportation and population geography; urban development; Chinese history; and Hong Kong history. The Faculty of Science is engaged in research into the ecology of marine and freshwater organisms; the physiology and metabolism of fish with application to pond and marine culture; parasites in humans and animals; the endocrinology of reproduction and foetal development; agricultural pests; nerve endings in the back muscles of scoliotic patients; the structure and function of avian muscle stretch receptors; the genetics, development and cell biology of unicellular animals; fouling problems in freshwater pipelines and sea-water intakes; pollution studies on Hong Kong roadside plants; the cell and tissue culture of some important local crop plants; studies of local industrial and consumer products; studies of environmental problems which involve analytical skill and instrumentation; pure mathematics; numerical weather prediction and application of operational research tech- niques; development of teaching materials for mathematics; local ionospheric and geomag- netic phenomena; cosmic rays; gemstones; solid state physics; plasma physics; elementary particles physics; and quantum mechanics and relativity.

       The Faculty of Medicine is conducting research into the growth and development of Chinese children; congenital diseases; common hereditary anaemias in Chinese; immune response to infections; prevalence, aetiology and treatment of common malignancies in Hong Kong; diabetes mellitus; hypertension; liver diseases; spinal deformities; contracep-

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tives and their relation to thrombosis; Chinese herbs; drug addiction; diseases associated with modern occupations and the environment; female homosexuality; and psychiatric sequalae of therapeutic abortion.

      The Faculty of Engineering is conducting research into power apparatus; circuits and systems; electronics; data transmission; solar energy; noise; mechanics; bio-engineering; soil and concrete; structural engineering; finite element analysis; traffic aspects; environ- mental engineering; management, production and control techniques; ergonomics; process technology; and computer system design and applications.

      In the Faculty of Social Sciences, research is being carried out on different aspects of the Hong Kong economy; managerial beliefs in Southeast Asia; small business in the Hong Kong environment; government and politics in Hong Kong and China; public budgeting and analytical political theory; crises in social work; female expatriate adjustment in Hong Kong; computer applications in psychology; medical statistics; economic and demographic analysis; industrial quality control; stock market research; and trends in industrial relations.

      The School of Architecture is conducting research into densities in urban areas; rural Chinese architecture; space utilisation in buildings; the phraseology of the Hong Kong standard form of contract; the building industry with reference to construction costs, resources and industrial capacity; and the urban landscape.

       In the School of Law, research is being conducted into modern Chinese law; com- puterisation of the law; and international commercial transactions and taxation.

       The School of Education, which has become a recognised centre for studies within the International Association of the Evaluation of Educational Achievements, is committed to a major study of the teaching of mathematics.

      The Centre of Asian Studies continues to serve as a focal point for the academic com- munity working on multi-disciplinary research projects on China, Hong Kong, East and Southeast Asia. The centre publishes the bi-annual Journal of Oriental Studies, as well as a monograph series comprising the results of research sponsored by it. As a member of the United Nations-affiliated Association of Development and Training Institutes of Asia and the Far East, the centre has compiled a directory of member institutes.

Chinese University of Hong Kong

The Chinese University of Hong Kong was inaugurated in 1963 as a federal university in which the principal language of instruction is Chinese. It is a self-governing corporation which draws its income mainly from government grants. The university comprises three constituent colleges - Chung Chi, New Asia and United. The campus covers more than 110 hectares of land near Sha Tin in the New Territories.

Undergraduate places available in September, 1979, were: arts 1,089; business administra- tion 925; science 1,338; and social science 1,223. In addition, 561 students were enrolled in graduate programmes and 78 students and scholars from overseas attended the Inter- national Asian Studies Programme.

       The university stopped conducting its own matriculation examination in 1979. Students who wish to enter the university must gain Grade E or above in Chinese, English and three other subjects in the Hong Kong Higher Level Examination conducted by the Hong Kong Examinations Authority. Some 4,308 students fulfilled the entrance require- ments in 1979. Of these, 1,191 were admitted for the 1979-80 academic year.

       The university's four faculties offer a wide range of four-year courses leading to Bachelor degrees. The graduate school offers instruction ranging from one to three years through

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      19 divisions leading to the degree of Master of Philosophy in Humanities, Science or Social Science; and Master of Business Administration, Divinity, Arts, Science or Social Work. The School of Education, which aims at providing professional training for graduates of approved universities to serve and teach in local secondary schools, offers courses leading to the Diploma in Education or the degree of Master of Arts in Education.

       A total of 1,041 students graduated from the university in 1979. They included 47 Masters of Philosophy, 32 Masters of Business Administration, one Master of Arts, five Masters of Arts (Education), two Masters of Divinity, five Masters of Social Work, 243 Bachelors of Arts, 174 Bachelors of Business Administration, 230 Bachelors of Science and 302 Bachelors of Social Science.

New academic programmes offered in 1978-9 were: a minor programme in statistics; a major programme in computer science leading to the Bachelor of Science degree; a graduate programme in the English language leading to the Master of Arts degree; and a graduate programme in the teaching of English as a second language leading to the Master of Philosophy degree.

The Department of Extramural Studies offered more than 700 general, certificate, correspondence and television courses in many subjects. Most courses are conducted in Cantonese or Mandarin. The department launched two courses by newspaper in 1979 with the help of six leading Chinese and English newspapers.

The library system comprises the university library and three branch libraries at the colleges. Library holdings in 1979 were: 337,930 volumes in Oriental languages; 302,085 volumes in Western languages; and 4,078 periodical titles.

Building projects completed during the year included a lecture hall complex, a language training building, two student hostels, a staff residence, and two building extensions. In preparation for the new Faculty of Medicine, the construction of the basic medical sciences building began.

Research

The Chinese University of Hong Kong provides faculty members with research facilities. There are four research institutes - Institute of Business Management Studies, Institute of Chinese Studies, Institute of Science Technology, and Institute of Social Studies and the Humanities. They enable staff members to keep up with the latest developments in their own fields and to contribute to them.

       Various research centres set up within the four institutes concentrate on specific fields including Chinese archaeology and art, the Chinese language, comparative literature, translation, Chinese medicinal materials, food protein production, machine translation, communication studies, East Asian studies, economic research, public affairs, social research, geographical research and marine science. Most of the research programmes are multi-disciplinary in nature. The results of these programmes have led to the publication of many books, journals, monograph series and occasional papers.

During the 1978-9 academic year, the university hosted some major international con- ferences. They included a regional meeting on bureaucratic behaviour and development in Asia (co-sponsored with the International Development Research Centre of Canada); a conference on research into interpersonal interaction in pluralistic societies (in collabora- tion with the Culture Learning Institute of the East-West Centre in Hawaii); a Hong Kong conference on East-West comparative literature; and a seminar on China's modernisation and diplomacy.

EDUCATION

Teachers and Teacher Education

73

In March, 1979, 39,321 teachers were employed in government and registered day schools. They included 10,361 university graduates and 28,960 non-graduates qualified for teaching. In addition, there were 3,541 teachers employed by subsidised night schools, private tutorial and evening classes. A further 4,085 teachers were engaged by the Evening Institute, the Evening School of Higher Chinese Studies, the Technical Institute Evening Department, in-service courses of training at the colleges of education and the Technical Teachers' College, private evening colleges and adult classes. Most of these teachers also taught in day schools. In addition, 423 teachers were in special schools.

Except for technical teacher training, teacher education is provided at the Education Department's three colleges of education - Grantham, Northcote and Sir Robert Black. All three colleges offer two-year full-time courses designed to train their students to become 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 for both 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, 1979, there were 867 students in the two-year courses, 110 in the third-year courses and 775 in the in-service training courses.

Financial assistance in the form of interest-free loans and maintenance grants is provided by the government for students enrolled on the full-time courses. In September, 1979, the maximum maintenance grants and interest-free loans to college students increased from $1,600 and $1,200 per annum to $2,000 and $2,400 per annum, respectively.

Technical teacher education and training are provided at the Hong Kong Technical Teachers' College, which is administered by the Education Department. The college trains technical teachers for secondary schools, prevocational schools and technical institutes. A variety of regular courses are offered. The one-year full-time course is intended for mature students, 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. The two-year full-time course accepts secondary technical school-leavers. The college also provides a variety of in-service courses for teacher training and courses for supervisors and instructors employed by industry.

Adult Education

Through the Evening Institute, the Evening School of Higher Chinese Studies and 16 adult education and recreation centres, the Adult Education Section of the Education Depart- ment provides a wide range of classes for adults and young people who have left school.

      The Evening Institute offers formal courses ranging from literacy to secondary and post- secondary studies. 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 practical background courses to give adults certain skills for domestic purposes. There are also three courses at secondary school level - the young people's course; and the secondary school and middle school courses for adults which lead 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; mathe-

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      matics in junior secondary forms; physical education in secondary schools; and the teach- ing of a variety of creative subjects.

       English courses are offered from Primary 4 to Form 5 standard at which level adult students are prepared for the English language paper (Syllabus B) of the Hong Kong Certificate of Education examination. More classes of matriculation standard have been organised to provide further training and practice in the use of English.

       The Evening School of Higher Chinese Studies offers a three-year general arts diploma course at post-secondary level in Chinese literature and philosophy. Specialised three- month courses on various aspects of Chinese classics and culture and short courses on the appreciation of Chinese antiques and art objects are also offered.

In providing non-formal education, the 16 adult education and recreation centres organise many cultural, social and recreational activities designed to stimulate individual awareness within the community, to cultivate creative ability and to develop individual talents. Various activities have been organised in collaboration with the Urban Council and Urban Services Department as well as Radio Television Hong Kong.

About 24,400 people were enrolled in the formal courses and about 63,200 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 to organise classes.

The 1978 White Paper on the Development of Senior Secondary and Tertiary Education proposed that more emphasis should be placed on adult education. As a result, the Adult Education Section of the Education Department has been strengthened by additional administrative staff and by the appointment of specialist advisers and co-ordinators. Even- ing secondary science courses have been improved by the provision of additional laboratory facilities and the necessary technical staff.

Many voluntary agencies provide a wide range of courses for adults. It is the govern- ment's intention to subvent non-profit-making organisations which have projects that complement and supplement the Education Department's own retrieval adult education courses. Detailed guidelines have been prepared for organisations intending to join the subvention scheme when it is implemented.

Advisory Inspectorate

The main function of the Education Department's Advisory Inspectorate is to promote quality in teaching. 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 teachers. The inspectorate also evaluates textbooks and instructional mater- ials, and carries out educational research and guidance and curriculum development. Close liaison is maintained with bodies such as the various local examination authorities, government departments, the British Council and the Consumer Council.

During 1979, the various subject committees of the Curriculum Development Committee continued their work in the preparation and revision of syllabuses and schemes of work for implementation at both primary and secondary levels. Courses, seminars, workshops and conferences relating to new or revised syllabuses were organised for primary and secondary teachers and heads.

A 'learning by doing' scheme, in which primary schools are encouraged to adopt a less formal and more child-centred approach to learning, is being gradually accepted by teachers. During the year, special programmes were organised for heads and teachers implementing the approach.

The inspectorate's Textbooks Committee continues to guide schools on the selection of books. A comprehensive list of recommended textbooks for kindergartens, primary and

EDUCATION

75

secondary schools is updated and issued once a year in November, with a supplementary list in May. In an effort to improve the quality of textbooks, the Textbooks Committee maintains close liaison with two educational publishers' associations - the Anglo-Chinese Textbooks Publishers' Organisation Limited and the Hong Kong Educational Publishers' Association Limited.

Teaching Centres

The Advisory Inspectorate runs six centres concerned with the teaching of the Chinese language, English, mathematics, science, social subjects and field studies.

       The Field Studies Centre, located at the Sai Kung Outdoor Recreation Centre, was established in 1979 to enable Form/Middle 6 students to undertake practical experiments and studies in the field. Facilities at the centre include a laboratory, reference library, lecture room and exhibition hall. Four-day residential courses on geography or ecology are provided.

       During the year, the Chinese Language Teaching Centre organised some 40 refresher courses, seminars, and workshops which were attended by about 1,600 teachers. More than 200 follow-up visits were made to teacher-participants. Schools, both primary and secondary, benefit from the centre's displays, which cover teaching materials, aids and projects, and its free dubbing service for teaching tapes.

The English Language Teaching Centre organised intensive courses on speech improve- ment, workshops, seminars and guest talks for about 1,700 teachers during 1979. Some 760 follow-up visits were made to teacher-participants. About 2,300 language tapes were supplied to 100 schools. The centre has a specialist library, which contains 4,700 books on English-language teaching and linguistics, and it also has English teaching aid displays. The Mathematics Teaching Centre held courses on computer programming and on the effective use of electronic calculators. The courses were a joint effort with the Hong Kong Polytechnic, the Chinese University of Hong Kong and the Mathematics Section of the Advisory Inspectorate. In addition, workshops and seminars on home-made teaching aids for mathematics were held for primary and secondary school teachers.

The Science Teaching Centre held seminars on the teaching of primary science and workshops on the making of simple teaching aids for teachers from 95 primary schools. To promote the use of simple apparatus for the teaching of integrated science at junior secondary level, 13 workshops were held.

      The Social Subjects Teaching Centre provides in-service training for teachers of history, economics, public affairs, geography, health education and social studies. More than 500 teachers from secondary schools attended courses provided by the centre, which has a variety of reference and teaching materials on display.

Visual Education Centre

      The Visual Education Centre's audio-visual resources library contains 1,400×16 mm film titles, 3,200 filmstrips and 450×8 mm film loops as well as other audio-visual items which are available for loan to schools. During the year a total of 11,269 film bookings were recorded.

A combined primary and secondary audio-visual resources catalogue was being produced for distribution to schools during 1979. The section also publishes the Audio-Visual News Bulletin, and 3,000 copies of each issue are circulated among schools and other educational institutions. Thirty-six audio-visual instruction courses and workshops were organised for more than 1,000 teachers during the year. A series of seminars for teachers newly-appointed as school audio-visual co-ordinators was also held.

76

Cultural Crafts Centre

EDUCATION

The Education Department's Cultural Crafts Centre accommodates sections of the Advisory Inspectorate responsible for art and design, crafts and home economics. The centre has well-equipped workshops for holding in-service courses, seminars and demonstrations for primary and secondary school teachers. During the year, some 1,100 teachers attended. Annual exhibitions of pupils' work in these subjects are organised in the Cultural Crafts Centre; in 1979 they attracted more than 8,000 visitors.

      The Art Section assisted 36 local organisations and 50 schools in arranging competitions and exhibitions during the year. It also organised the selection of local entries for students' art exhibitions and competitions in the United Kingdom, Canada, Japan, India and Korea. In addition, the section worked with the Visual Education Centre and Radio Television Hong Kong in the making of a 15-minute film on art education.

In July, three sets of Chinese recipes prepared by the Home Economics Section, with the help of secondary school teachers, were published. They are on sale at the Government Publications Centre.

An important task undertaken by the Cultural Crafts Centre is the co-ordination of a scheme to promote the teaching of art and design, home economics, and design and technology at junior secondary level in government and aided schools. Funds are being allocated to provide facilities, employ suitable staff and to purchase the necessary equipment.

Music

During 1979, more than 450 primary and secondary teachers attended seminars, refresher courses and music workshops organised by the Music Advisory Inspectorate of the Educa- tion Department.

In the primary sector, teachers were encouraged to develop children's interest in music through movement and singing games in the lower classes, with instrumental activities in the higher classes. In the secondary field, emphasis was placed on developing an appreciation of Chinese music. An advisory panel of well-known music teachers prepared a teaching guide for junior secondary forms.

About 52,000 students took part in the 31st Annual Schools Music Festival in 282 classes at 13 different centres. Six prize-winners' concerts were given before capacity audiences in the City Hall concert hall.

Physical Education

The Physical Education Section of the Education Department conducts regular school visits during which advice and supervision is given to heads and teachers to improve the quality of physical education. Training courses, seminars, conferences and camps are organised for teachers and students.

      The first edition of the Physical Education Syllabus and Handbook for Primary School Teachers was published in 1979. With the help of the Visual Education Centre and Radio Television Hong Kong, the section produced a teaching film on modern educational gymnastics for secondary schools.

      For recreation, the section organised various educational camps, canoeing and sailing courses as well as many activities under a learn-to-swim scheme and the Duke of Edinburgh's Award Scheme. Similar activities for handicapped children from special schools were also provided.

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Focus on the Young

The International Year of the Child was a fitting time to capture on camera the endearing charm of Hong Kong's children. Shy or boisterous, quietly observing the world, absorbed in their own endeavours or enjoying the fun of play activities, they enrich the fabric of life in Hong Kong with their youthful zest and vigour. With 26 per cent of its population under the age of 15, Hong Kong pays special attention to the needs of the young. Education is accorded a high priority with spending on this accounting for 17.5 per cent of the govern- ment budget in 1979-80. Significant ad- vances have also been made in recent years in such diverse fields as social welfare, recreation and sport, education, rehabilita- tion, and medical and health care. Plans to expand further the services and facilities available to children and young people are now being devised. The government sup- ported many activities organised to com- memorate the International Year of the Child. Welfare organisations joined forces in the undertaking of three major projects- a study of child abuse, a programme to improve the standard of child raising and care, and the promotion of children's cultural development. Other voluntary agencies and community groups also arranged special programmes and spot- lighted areas where more could be done for children.

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A little expert advice can make a world of difference. The older girl is a member of one of several youth orchestras which visit schools to play for the children and involve them in music.

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EDUCATION

77

       In conjunction with the Hong Kong Schools Sports Association and the New Territories Schools Sports Association, the Physical Education Section organises competitions in dance, gymnastics, trampolining and canoeing. The Hong Kong Schools Sports Council promotes school sports at inter-port and international levels.

       During the summer, the Education Department received subventions from the govern- ment and the Royal Hong Kong Jockey Club to operate a summer recreation programme for about 262,000 students.

Community Youth Club

With the aim of involving young people in various community projects, the Community Youth Club (CYC) movement has expanded in many directions since it was launched in 1977.

      The upper age group limit for membership was extended from Form 3 to Form 5 in the 1978-9 academic year and the total membership in September, 1979, was 30,000. Apart from participating in major government campaigns and community affairs in their own districts, CYC members were employed in a variety of projects relating to country parks, anti-corruption, consumer education and anti-smoking.

       The CYC Secretariat began administering the Luen Yi Scheme in 1979. Under the scheme, two schools - generally an urban secondary school and a rural primary school - are paired giving them the opportunity to co-ordinate and arrange exchange visits and extra- curricular activities. Some 200 schools are participating in the scheme.

Educational Television

The Educational Television Service (ETV) programmes are produced locally, in colour, by the Education Department and Radio Television Hong Kong (RTHK). The programmes, 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 in- spectors of the Advisory Inspectorate have resulted in many improvements to ETV since its inception in 1971.

       Primary school ETV programmes cover the four basic subjects 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.

      Beginning in mid-1979, colour television receivers were being purchased to replace, by stages, the existing black and white receivers in primary schools. In addition, these schools are also being provided with video cassette recorders. About 650 colour receivers and 380 video cassette recorders were installed in government and aided primary schools in 1979. Secondary schools already have colour receivers and video cassette recorders.

      ETV's total audience during 1979 was estimated at 260,000 secondary and 360,000 primary school pupils.

Hong Kong Examinations Authority

The Hong Kong Examinations Authority, an independent statutory body, began admin- istering the Hong Kong Certificate of Education examination in 1978 and the Hong Kong Higher Level Examination in 1979. The authority will conduct the Hong Kong Advanced

78

EDUCATION

Level Examination, replacing the Advanced Level Examination of the University of Hong Kong, from 1980. Altogether, 117,863 candidates sat for the Hong Kong Certificate of Education examination and 19,741 candidates sat for the Hong Kong Higher Level Examination in 1979.

The authority has also assumed responsibility for conducting a large number of overseas examinations on behalf of various examining bodies in Britain and elsewhere. Appendix 21 lists the more important examinations held in Hong Kong in the past three years and the number of candidates who sat for them.

Hong Kong Students in Britain

     The Students 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 find places in universities, polytechnics, technical colleges, colleges of further education and other educational institutions in Britain. The section is responsible for exercising broad supervi- sion over their progress and general welfare during their studies or training.

The Students 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 Council, educational establishments and hospitals.

      In December, 1979, the records listed some 13,232 students, including students on sand- wich courses and nurses in training. New arrivals during 1979 totalled 3,503, compared with 2,566 in 1978. The newcomers included 1,772 students for General Certificate of Education courses. Many inquiries about sources of financial assistance continued to be received owing to inflation in Britain and increases in tuition fees.

      During the 1979-80 academic year, 3,985 applications on behalf of 1,408 students were made to polytechnics and colleges. A total of 4,704 students made direct applications to universities through the Universities Central Council on Admissions under the guidance of the Education Department in Hong Kong.

The government-run Hong Kong Students' Centre in London is a residential and social centre for Hong Kong students in Britain. It accommodates 90 students and also serves as a focal point and meeting place for students. The Hong Kong Commissioner in London administers the centre through a warden and he 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 establish- ments in Britain and other English-speaking countries.

      In addition to those who went to Britain during this year, 2,155 students went to Canada for secondary or higher education, 2,560 to the United States and 439 to Australia.

8

Health

A VIGOROUS expansion programme covering a wide range of medical and health services is going ahead to meet the many, varied needs of Hong Kong's people. The government's objective is to provide a balanced set of services throughout the territory. Its medical development programme is concerned with widespread primary health care, more hospital beds, increased rehabilitation facilities and a certain number of specialised treatment units. Following the 1979 review of the medical development programme, the Medical Develop- ment Advisory Committee recommended that, apart from a major schedule of improve- ments and extensions to a number of existing hospitals, new hospitals should be built in east Kowloon, Shau Kei Wan and Tai Po to meet a shortfall in beds. Additional clinics and polyclinics were also recommended for the new towns of the New Territories and other densely-populated urban areas.

       The year was one of steady progress in projects already a part of the Public Works Programme. The 1,300-bed psychiatric wing of the Princess Margaret Hospital is to be completed in 1980 and this should greatly reduce the present overcrowding at the Castle Peak Hospital in the New Territories. Also scheduled for completion in 1980 is the Dental Teaching Hospital at Sai Ying Pun, which will provide clinical training facilities for the dental school being established at the University of Hong Kong.

       Construction of the superstructure of the Sha Tin Hospital started in 1979; the hospital will open in 1983. This 1,400-bed hospital will serve both as a regional hospital for the east New Territories, as well as being the teaching hospital for the new medical school at the Chinese University of Hong Kong.

       Planning is also proceeding for a 1,300-bed hospital in the new town of Tuen Mun. This hospital, when completed in 1985, will serve as a major district hospital for the west New Territories.

The 11-storey new wing at the Kwong Wah Hospital will be ready in 1980. It will augment the facilities of the hospital which is the regional hospital for west Kowloon. A 50-bed extension to Yan Chai Hospital - serving Tsuen Wan and Kwai Chung - was completed in March, 1979. A second phase of development is scheduled to start soon.

      A new 13-storey extension of the Caritas Medical Centre, which is a district hospital for the west New Territories, began phased operations in 1979. The extension comprises 576 beds for geriatric and mentally-handicapped people.

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

       The University of Hong Kong will establish its dental school in 1980. The first 60 dentists are expected to graduate in early 1985.

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HEALTH

      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 - continues to be high, congestion has eased somewhat and the bed occupancy in various district hospitals has increased significantly. The east New Territories will become the fifth region when the Sha Tin Hospital begins operating in 1983.

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, with community nursing being the latest development.

For the 1979-80 financial year the Medical and Health Department's estimated expendi- ture is $633.7 million. In addition, subventions totalling about $339.8 million are being made to many non-government medical institutions and organisations. The estimated capital expenditure on hospitals and other buildings, including furniture and equipment, is $203.6 million.

Health of the Community

Hong Kong's general standard of health is comparable with that of most advanced countries, as exemplified by the low infant mortality rate and the absence of common childhood communicable diseases such as diphtheria and poliomyelitis. This achievement can be attributed to the emphasis placed on primary health care which focuses on prevention, immunisation and early detection through maternal and child care services.

      Cancer and heart diseases are the main causes of death in Hong Kong. The incidence of and the number of deaths from tuberculosis continues to drop. About 98 per cent of new- born babies are vaccinated with BCG - perhaps the highest rate in the world. As a result, tuberculosis is now rare among those under 15. Territory-wide publicity programmes have been intensified in the past two years in order to tackle the main sources of infection.

      Venereal diseases are treated free at social hygiene clinics. Only a 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.

      Malaria transmission has 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; however, oral vaccines are available at family health centres.

Measles was at one time prevalent among young children but, since the introduction of an anti-measles vaccine in 1967, its incidence has been drastically reduced. In September, 1978, rubella vaccination was introduced into the immunisation programme. The immunisa- tion is directed at girls aged 11 to 14 years and at women of child-bearing age.

Four cases of cholera were reported in 1979. All necessary precautionary control measures were undertaken to prevent the spread of the infection.

Hospitals

There are three types of hospitals in Hong Kong - government, government-assisted, and private, with a total of 20,606 beds representing 4.2 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.

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81

Queen Mary Hospital, with 1,184 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 1,268 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 being continually developed. 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 outlying islands and the more 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 1979, 402 clinics were registered under the Medical Clinics Ordinance. Of these, 88 clinics were under the control of a registered medical practitioner, as required under the ordinance, and 314 clinics were exempted from this requirement. Registered medical practitioners set up clinics in housing estates through the Estate Doctors Associa- tion Limited.

Family Health

The Family Health Service operates a total of 38 centres, each of which provides a compre- hensive 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. Antenatal and post-natal health consultation sessions are conducted for mothers. In 1979, more than 90 per cent of new-born babies were taken to a centre for attention and advice on at least one occasion. Immunisation programmes against diseases to which children are particularly vulnerable are carried out. More than 50,000 children have already benefited from a com- prehensive observation scheme introduced in April, 1978, to screen, detect and assess early developmental abnormalities, resulting in remedial action to eliminate or minimise disabilities. Parents are advised to complete their families before mothers reach the age of 35, in order to reduce the likelihood of disabled children being born.

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 independ- ent body incorporated by ordinance. Participation is voluntary and, for a contribution of

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$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. By 1979 about 169,000 pupils were participating in the scheme.

The School Health Service, a government responsibility, deals with the environmental 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. In 1978, rubella vaccination was introduced into the school immunisation programme.

Mental Health

The Mental Health Service provides full-time care for psychiatric patients at the 1,927-bed Castle Peak Hospital. The 384-bed Lai Chi Kok Hospital caters for long-term patients. The 1,300-bed psychiatric wing at Princess Margaret Hospital, to be opened in 1980, is the service's main development in the near future. The psychiatric unit in Kowloon Hospital and the university psychiatric unit in Queen Mary Hospital also provide a comprehensive psychiatric service in a general hospital setting. Having regard to the modern, universal trend in hospital development, future psychiatric units will be incorporated in general hospitals together with other specialised treatment units. The service operates on a multi- disciplinary approach comprising both medical and paramedical staff, including clinical psychologists, medical social workers and occupational therapists.

       Supplementing hospital treatment are five day centres - the Hong Kong Psychiatric Centre, the psychiatric unit in Kowloon Hospital, the Yau Ma Tei Psychiatric Centre, the Chai Wan Psychiatric Centre and the South Kwai Chung Psychiatric Centre. Occupational, social and recreational therapies are provided at the centres. Severely mentally-handicapped patients are cared for at Siu Lam Hospital. In 1979, the Caritas Medical Centre extension was completed, providing 288 additional beds for mentally-handicapped 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

The main aim 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. It also assesses disabilities resulting from occupational injuries under the Workmen's Compensation Ordinance.

       In the construction of the Mass Transit Railway, a large number of people have been working in a compressed air environment. These workers have been medically examined and advised on the symptoms of decompression sickness and what to do if they occur. Medical examinations were also conducted for those in diving and radiation work.

      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 Services

The government's Dental Service undertakes dental care for all monthly-paid government servants and their dependants. Emergency treatment is provided for the public and inmates of penal institutions at a limited number of centres.

HEALTH

83

      The MacLehose Dental Centre in Wan Chai, completed in 1978, includes a training school for dental therapists and hygienists, and a school dental clinic.

      The School Dental Care Service began operating on a trial basis in November, 1979. Its objective is to prevent dental decay in schoolchildren by regular examinations and simple conservation treatment. The programme has started with Primary 1 students and its phased development will eventually cover all primary schoolchildren. Six other school dental clinics are planned for the 1980s.

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

Port Health

The Port Health Service enforces health control at Hong Kong International Airport and in the territory's waters, to prevent the introduction of quarantinable diseases and to carry out other measures required under the International Health Regulations.

      The service provides facilities for vaccination and the issuing of international vaccination certificates. It also inspects and supervises the eradication of 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.

       Despite the strain placed on the service in 1979 by the influx of refugees from Vietnam (which is a plague-infected area), Hong Kong remained free of all major quarantinable diseases.

      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. It also administers mortuaries and blood banks. Vaccines are produced at the Institute of Immunology. Various virus studies on hepatitis, poliomyelitis, influenza and rubella are 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 ensure that radioactive equip- ment and substances pose no hazard. Research is being carried out on the epidemiology of nasopharyngeal carcinoma, which is a common cancer in Hong Kong.

The Forensic Pathology Service works closely with the Royal Hong Kong Police Force on the medical aspects of criminology and other medico-legal work.

A Central Health Education Unit was established within the Medical and Health Department in 1978. Its aims are to educate people on the principles of good health, to act as a resource unit providing health education techniques for other services, and to dis- seminate health information. So far, projects commissioned have included cholera education, a campaign covering health for the elderly, and an eye care campaign.

      After reviewing a two-year community nursing pilot scheme in 1979, the Medical Development Advisory Committee recommended that it should be an integral part of the medical and health services. The community nursing service provides domiciliary nursing care for the elderly and the physically and mentally handicapped. It also offers post-

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hospitalisation care, rehabilitation assistance and advises patients and their families on diet, rest, prevention of accidents, bed sores and deformity.

Medical Fees

      The charge for a consultation at a government clinic was raised from $1 (which was introduced in 1950) to $2 in 1979. 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 $2 a visit. This charge is waived if people genuinely are unable to afford it. Free services continue to be offered at maternal and child health centres, tuberculosis and chest clinics, casualty departments, floating clinics and through the 'flying doctor' service.

      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 if necessary. 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 organisations in the United Kingdom and Australasia.

       The University of Hong Kong produces about 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.

       An Institute of Medical and Health Care has been established at the Hong Kong Poly- technic to provide training for paramedical staff. The four courses set up in October, 1978, were 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. Two other nurse-training schools have been recommended for Princess Margaret Hospital and Sha Tin Hospital.

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 nurses engaged in public health work.

Government Laboratory

The Government Laboratory is an independent agency providing practical and advisory services to government departments and the private sector in the field of applied chemistry and related scientific disciplines. Its work covers a wide range of activities, including many health-related services.

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      The examination of pharmaceutical products purchased or made by the government for use in its hospitals and clinics is carried out at the Government Laboratory. Products submitted for registration under the Pharmacy and Poisons Regulations are also examined. The laboratory is responsible for the physical and chemical testing of food under the Public Health and Urban Services Ordinance. This work, which stems from the activities of the Hygiene Division of the Urban Council and Urban Services Department, is a consumer protection activity that continues to expand.

      In addition, the laboratory carries out urinalysis which is a vital part of the methadone maintenance and detoxification programmes run by the Medical and Health Department. Urinalysis establishes whether or not patients are being successfully weaned off heroin.

      Other functions undertaken in the sphere of community health include dangerous goods and pesticide residue analyses and determinations relating to traces of noxious metals, such as cadmium in oysters.

Narcotics

Drug abuse is a serious and long standing social problem in Hong Kong. The government, which is advised by the Action Committee Against Narcotics, is firmly committed to fighting drug abuse and to eventually eliminating it.

       The exact number of addicts in Hong Kong is not known. However, findings from the government's reorganised Central Registry of Drug Addicts, which came into full operation in September, 1978, indicate that the size of the problem is in the region of 35,000 to 50,000 people.

       Data collected by the Central Registry, based on 84,000 reports about 31,000 individual addicts, indicate that about 84 per cent of Hong Kong's addicts use heroin, 11 per cent use opium, and the remaining five per cent use other drugs. Of the addicts, 64 per cent are 30 years and over; 32 per cent are in the 20 to 29 age bracket; and less than four per cent are 19 years or under. Fume inhalation is the most popular method of taking heroin while smoking is generally used by opium abusers.

      The profile of a typical addict in Hong Kong is of an adult male over 21, in the lower income group, with not more than six years of education, living in overcrowded condi- tions, and generally employed as a casual labourer, unskilled or semi-skilled worker. He is single or, if married, usually separated from his family.

      The real cost of the government's anti-narcotics programmes is in the region of $180 million a year. The overall strategy consists of four main elements - law enforcement, treatment and rehabilitation, preventive education and publicity, and international co- operation. Law enforcement is the responsibility of the Royal Hong Kong Police Force's Narcotics Bureau and individual district formations, and of the Customs and Excise Service of the Trade Industry and Customs Department. Treatment and rehabilitation are under- taken by the Medical and Health Department, the Prisons Department and a government- subvented voluntary agency, the Society for the Aid and Rehabilitation of Drug Abusers (SARDA). Preventive education and publicity rests mainly with the Narcotics Division of the Government Secretariat, the Information Services Department and various government district offices concerned with community-building efforts. International co-operation is the responsibility of all.

       The work undertaken in each of these four areas is inter-related. Law enforcement pushes up the prices of illicit drugs, thus inducing addicts to seek voluntary treatment. Addicts seeking treatment are offered a wide range of programmes. At the same time, preventive education and publicity efforts are used to persuade other people, especially the young,

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     not to experiment with drugs. On the international front, Hong Kong's drug fighters keep in close touch with their overseas counterparts and exchange information and 'know-how' with them.

All these efforts are co-ordinated by the Action Committee Against Narcotics (ACAN), a non-statutory body comprising a chairman, nine government officials and five un- official members. The committee, formed in 1965, is the government's sole advisory body on all anti-narcotics policies and actions, whether domestic or external, and whether related to government departments or to voluntary agencies. The ACAN is serviced by the Nar- cotics Division of the Government Secretariat, headed by the Commissioner for Narcotics. In Hong Kong's battle against the evils of narcotics trafficking and abuse, 1979 was a year of sustained efforts and continued success. In the four programmes comprising the overall anti-narcotics strategy, some remarkable achievements were made.

      In law enforcement, effective police and customs action, coupled with a drought in the main Southeast Asian opium-producing areas, resulted in a dramatic drop in illicit drug supplies in Hong Kong. This forced up the price of heroin to a record high in August when the wholesale price reached $63,500 a kilogram - an increase of 40 per cent since January or three-and-a-half times when compared with January, 1976. From June to August, the street-level price of a heroin addict's daily supply rose from $60 to $200, resulting in the majority of addicts being priced out of the illicit market.

      A significant development during the year was the establishment of a joint police and customs intelligence unit at Kai Tak Airport. Its objectives are to collect information on drug traffickers and to investigate the methods used by drug couriers attempting to smuggle drugs into Hong Kong by air. The formation of this unit is not only improving efficiency in dealing with illicit drug trafficking at the airport, but it also represents a major advance in police and customs co-operation in narcotics law enforcement.

In the field of treatment and rehabilitation, it was the busiest year that Hong Kong has experienced. As a result of the sharp decrease in the availability of illicit drugs and the consequent high prices at street level, large numbers of addicts were induced to seek volun- tary treatment. Attendances at the out-patient methadone treatment centres operated by the Medical and Health Department increased by almost 80 per cent, from 4,400 a day in January to 8,000 in August. There was also a corresponding increase in the number of patients seeking voluntary in-patient treatment at the Shek Kwu Chau Treatment and Rehabilitation Centre run by the Society for the Aid and Rehabilitation of Drug Abusers (SARDA), from 341 in January to 561 in July.

As a result of the increasing demand for voluntary treatment services, the government, on the advice of the Action Committee Against Narcotics, approved a special expansion programme in August. This included, inter alia, the conversion of selected evening meth- adone treatment centres to day centres, the posting of additional staff to methadone centres with high attendances, an increase in the approved accommodation of the Shek Kwu Chau in-patient treatment centre from 500 to 600 (for a trial period of one year), and the provision of a new urine-testing laboratory for methadone patients.

      The Narcotics and Drugs Administration Division of the Medical and Health Depart- ment operates 20 methadone treatment centres, each providing both maintenance and detoxification services to addicts. Methadone maintenance is used as a substitute for hard drugs, while methadone detoxification aims at weaning addicts off drugs by gradually reducing their daily dosage. Addicts seeking treatment at methadone centres are able to select either type of treatment.

      Following a recommendation by the Action Committee Against Narcotics, an encourag- ing development during the year was the government's agreement that patients maintained

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      on methadone could apply for vacancies in the civil service on equal terms with other applicants. Their employment is subject to the provision that they have no previous record of major drug offences, and that they are able to produce a certificate from the Medical and Health Department stating that they have attended a methadone treatment centre continuously for at least one month and that their urine tests for drugs are negative. It is hoped that the private sector will follow the government's lead.

       The Society for the Aid and Rehabilitation of Drug Abusers (SARDA) runs two voluntary in-patient treatment centres one for men and the other for women. The male centre, located on the outlying island of Shek Kwu Chau, has the capacity for 600 patients. SARDA's female treatment centre, located in Wan Chai on Hong Kong Island, has the capacity for 30 patients. Linked with these two centres are six regional after-care centres, three units for the intake of patients and three hostels. During 1979, 2,254 patients, includ- ing 85 women, were admitted to SARDA's two centres.

Under these programmes and the Prisons Department's compulsory treatment pro- gramme being carried out in four treatment centres, there are about 16,000 people receiving some form of treatment, rehabilitation and after-care every day. This compares with about 6,000 five years ago. In addition, addiction among young people continues to decline. The percentage of addicts under 21 in the Prisons Department's drug addiction treatment centres decreased from 25 per cent in 1969 to 5.4 per cent in 1979; at SARDA's Shek Kwu Chau voluntary in-patient treatment centre, the percentage under 19 decreased from 13 per cent to 1.3 per cent in the same period.

      Regarding legislation related to the treatment and rehabilitation of drug addicts, in August it became mandatory for the courts to remand a minor drug offender for a drug addiction treatment centre suitability report if a custodial sentence is intended. As an amendment to the Dangerous Drugs Ordinance, its main objective is to provide more opportunities for minor drug offenders to be sent to a specialised treatment centre, if possible, instead of being sentenced to an ordinary prison.

Playing an important role in Hong Kong's fight against drug abuse is preventive 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 persuading young people not to experiment with drugs. In 1979, the Action Committee Against Narcotics (ACAN) launched its largest-ever preventive education and publicity campaign. Events organised included a mass rally, three intensive month-long district campaigns in Wan Chai, Mong Kok and Tsuen Wan, and the production of various publicity materials such as television clips, films and dramas, leaflets, and posters. In addition, exhibitions and mobile street theatres were employed.

       The mass rally, with the theme 'Hong Kong's Youth Against Drugs', was attended by more than 30,000 students and young people in April. The largest community involvement project ever organised by the ACAN, in conjunction with government departments and voluntary agencies, it was a spectacular start to the annual preventive education and publicity programme for 1979-80.

      The Drug Abuse Telephone Inquiry Service, which started in September, 1977, continued to operate in 1979. By the end of the year, a total of 11,565 inquiries had been received since its inception.

       Externally, Hong Kong continued to play an active part in international anti-drug action. Over the 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 1979 Hong Kong took part in 15 international meetings concerned with anti-drug law enforce-

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      ment, treatment and rehabilitation, and preventive education. Hong Kong also made its fifth annual contribution of $100,000 to the United Nations Fund for Drug Abuse Control in support of its world-wide anti-narcotics efforts, which include the opium poppy crop substitution programmes in the 'Golden Triangle', where the boundaries of Burma, Laos and Thailand meet. It is from this area that most of Hong Kong's opiate drugs come. In support of an appeal made by the United Nations Commission on Narcotic Drugs, that drugs seized by governments should be destroyed, not sold, more than 650 kilograms of opium and morphine were incinerated in a drug destruction ceremony at the Kennedy Town Incinerator in June.

The techniques and methods employed by Hong Kong in its anti-narcotics work have made it an important venue for training anti-narcotics officials from other countries. In 1979 some 130 people from Asian countries came to Hong Kong for study visits and training attachments. They included administrators, doctors, psychiatrists, social workers, police and customs officers.

During the year, Hong Kong also organised, in collaboration with the World Health Organisation, an inter-regional training course on the treatment and rehabilitation of drug dependent persons for 25 physicians from Egypt, Pakistan, Afghanistan, Burma, Thailand, Malaysia, Indonesia and the Philippines. The course provided participants with an in-depth study into the latest theories and practices of drug addiction treatment and rehabilitation.

       As a result of Hong Kong's many efforts, there is increasing evidence to suggest that Hong Kong has not only reached the stage where it can be said that the drug problem has been contained, but that in other vital areas, such as preventing the spread of drug abuse to young people and in the reduction of criminal behaviour among addicts, inroads are being made.

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, the control of food hygiene, and the disposal of the dead. In the urban areas the department operates as the executive arm of the Urban Council, while the Director of Urban Services is the authority for the New Territories.

Special vehicles collect about 3,050 tonnes of household refuse daily. Of this, some 2,000 tonnes are incinerated and the rest is disposed of at controlled tips or by composting. There is also a nightsoil collection service for the few remaining areas of Hong Kong which do not have a water-borne sewage disposal system.

All streets are swept once a day, either manually or mechanically, while busier thorough- fares are swept more frequently. Flyovers and roads with fast-moving traffic are swept daily by mechanical suction sweepers. Washing of all streets by special vehicles is carried out once a week. Despite this, and the provision of about 21,500 litter bins and containers, litter remains a problem. The 'Keep Hong Kong Clean Campaign' is continuing with particular emphasis on public education, community involvement and enforcement of legislation. More than 52,000 people were fined for litter offences during the year.

Controls

To ensure that standards of hygiene are maintained at a satisfactory level, district health inspectors regularly inspect licensed premises, domestic and commercial buildings, and construction sites. Special inspections are also carried out in connection with vermin

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infestations and complaints about unhygienic conditions. Advice is given when improve- ments are needed. Summary action is taken and arrests are made in cases where public health laws have been contravened.

       During the year, the Food Section continued to monitor the hygienic standard of food produced and sold through regular inspections of food establishments and the systematic sampling of their products for chemical and microbiological analysis. In collaboration with the Government Laboratory, the section conducted surveys on the metal content of food and crockery.

In 1979, the Health Education Section produced features on health topics which were publicised through the mass media. In addition, lectures were given to schoolchildren, members of the catering trade and voluntary welfare agencies.

       The Central Licensing Unit was responsible for dealing with applications for licences - other than hawker licences - issued under the Public Health and Urban Services Ordinance, the Places of Public Entertainment Ordinance and the Dutiable Commodities (Liquor) Regulations.

District and regional pest control units carried out measures to prevent and control rodents, mosquitoes, flies, cockroaches, fleas and other pests. The Pest Control Advisory Unit provided technical advice to government 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

In the urban areas of Hong Kong Island and Kowloon, the Urban Council runs 46 public markets containing more than 3,200 stalls. The main commodities sold are fresh foodstuffs such as meat, fish, poultry, vegetables and fruit.

       It is the council's policy to reprovision old market buildings in these areas and, where possible, to build new market buildings with improved modern facilities. Because suitable sites for new markets are limited, it has been decided that multi-purpose buildings should be built to accommodate cultural, recreational and other municipal services in addition to market facilities. This is enabling the maximum use of land available while, at the same time, providing a variety of services at one location.

       An ambitious market development programme continued during 1979, with five new market buildings either completed or in the process of construction. A further 27 new market buildings are included in the programme for the next five years.

In the New Territories there are 25 public markets with about 2,000 stalls.

Hawkers

The number of hawkers is estimated to be about 42,440 in the urban areas of Hong Kong Island and Kowloon. It seems unlikely that this number will diminish significantly until more markets are provided and hawkers can become market stall-holders. In the meantime, the Urban Council intends to confine hawking to specified areas for environmental reasons. Illegal hawking continues to be a problem in densely-populated areas where a heavy demand for market services exists but no provision has been made.

       The Hawker Control Force was disbanded in April, 1979, and in its place 12 General Duties Teams were formed to control hawkers in the urban areas.

       The Urban Council's policy is that hawking should be regarded as a business and that welfare considerations should not influence the granting of hawker licences. Needy

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families are being encouraged to seek help through public assistance and other services provided by the government and voluntary welfare agencies.

In the New Territories, there are an estimated 14,140 hawkers and control is exercised through six General Duties Teams.

Abattoirs

      More than 3.02 million pigs and 183,000 cattle were slaughtered in 1979 in the two abattoirs at Kennedy Town on Hong Kong Island and Cheung Sha Wan in Kowloon. These two abattoirs supply the bulk of the population with fresh meat.

The 'on-the-rail' cattle dressing line at Kennedy Town Abattoir became fully operational in January, 1979. Modernisation of the cattle dressing line at Cheung Sha Wan Abattoir is proceeding.

Meat and offal condemned in the abattoirs as unfit for human consumption are sent to the by-products plant at Kennedy Town Abattoir for processing. The by-products, which have agricultural and industrial uses, are subsequently sold by public tender.

There are two licensed private slaughterhouses in the New Territories supervised by government health inspectors.

Cemeteries and Crematoria

The Urban Council provides inexpensive funeral facilities in the urban areas by operating two depots and the Hung Hom Public Funeral Parlour. Free funeral services are rendered, if necessary. 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 cremation to burials in 1979 was 48:52. A replacement for the existing Diamond Hill Crematorium in Kowloon came into service in August, 1979. The urban areas have five public cemeteries, two public crematoria and 19 private cemeteries, and the New Territories have five public cemeteries, two public crematoria and seven private cemeteries.

New Territories Services Department

The New Territories region of the Urban Services Department was renamed the New Territories Services Department in April, 1979. Its responsibilities and functions are the same in the New Territories as those of the Urban Services Department in the urban areas of Hong Kong Island and Kowloon.

There are eight district urban services offices - Kwai Chung, Tsuen Wan, Tuen Mun, Yuen Long, Tai Po, Sha Tin, Sai Kung and Islands. Overall co-ordination, planning and policy matters rest with the departmental headquarters, which is headed by a director who is responsible to the Director of Urban Services.

During the year, the activities of the department were expanded because of the rapid development and increasing population of the New Territories. A total of five capital projects were completed, including a new crematorium at Kwai Chung which came into service in November. A further 199 new projects are being planned including markets, pleasure and sports grounds, indoor games halls, cultural complexes, swimming pools, beach buildings, crematoria and columbaria, public toilets and refuse collection points.

9

Housing and Land

      DESPITE the focus of world attention on the large numbers of Vietnamese refugees who sought temporary refuge in Hong Kong during 1979, another population movement the entry of about 180,000 immigrants from China - posed far more serious consequences for the government's social programmes, particularly public housing. The 180,000 - comprising both immigrants who entered the territory legally and the remainder who arrived by illegal means - far exceeded the number of Hong Kong residents housed in the 21,000 new flats that became available during the year. The inflow threatened to erode the advances made in an ambitious programme launched in 1973 to provide permanent, self-contained homes for more than a million people then living in unsatisfactory conditions. Moreover, the rate of immigration - equivalent to a 3.8 per cent increase in population - was reminiscent, albeit on a smaller scale, of the very conditions that led to the birth of public housing in the territory 25 years ago.

       In the five years leading up to 1950, an immense influx of Chinese immigrants 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 about 170,000 dwellings, mostly in substandard, pre-war tenements devoid of proper sanitary and living facilities, was manifestly inadequate. Division and further subdivision into cubicles and bed spaces robbed entire floors of light and air. The late-comers, and those who could not bear the desperate overcrowding or afford the soaring rents, took to paddy fields and steep hillsides where they built, with tin, wood and cardboard, flimsy squatter huts which, at that time, housed a quarter of the population.

A disastrous fire, which broke out in the Shek Kip Mei squatter area of Kowloon on Christmas Day, 1953, and left 50,000 people homeless, was the catalyst for Hong Kong's housing programme. Within 53 days, the Public Works Department had built a series of two-storey blocks to provide emergency housing for 35,000 of the fire victims. During 1954, a Resettlement Department was formed to clear and rehouse squatters in six and seven- storey resettlement blocks that are still a feature of the urban scene. A Housing Authority was also set up to build and manage a better type of public housing for which tenement dwellers, living in crowded conditions and earning low incomes, could apply through a waiting list. More than 50 estates were built providing both types of housing, which met with an overwhelming demand that has not diminished over the years. As a result, in 1973 the Resettlement Department and the Housing Authority were amalgamated into a new Housing Authority to oversee the new housing programme. A total of 20 estates - all of them self-contained communities - have so far been built under this programme and today more than two million people, or about 40 per cent of the population, live in public housing of one sort or another provided or subsidised by the government.

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       Much, however, still remains to be done. Even discounting the additional demand for public housing created through the increased rate of immigration, it is estimated that more than half-a-million households are still in urgent need of proper or improved housing. Among these are 152,500 households registered on the authority's waiting list; 57,800 households living in overcrowded or unsatisfactory conditions in old estates built more than 20 years ago; and 130,000 households living in squatter huts scattered throughout the territory.

The increased rate of immigration is not the only problem confronting the government's housing programme. In the past 18 months, serious overheating of the economy and the heavy overloading of the construction industry have seen the cost of building a medium- sized flat rise from $38,000 to $60,000. As a result of this, it was decided to lower the ambitious target of production to about 35,000 flats (rented and for sale) in the public housing programme which is, nevertheless, the highest rate yet achieved - and is more than twice that of the previous year. This rate of production will continue for many years and, when economic circumstances and the capacity of the industry permit, it will be reviewed.

The Housing Authority

The Hong Kong Housing Authority, established under the Housing Ordinance 1973, is a statutory body responsible for co-ordinating all aspects of public housing. The Housing Authority advises the Governor on housing matters; plans and builds public housing estates for categories of people determined with the approval of the Governor; manages public housing estates throughout the territory including cottage areas, temporary housing areas and transit centres; clears land for development; and controls squatting. In addition, in 1977 the Housing Authority was invited, on behalf of the government, to plan, build and subsequently manage flats provided under the Home Ownership Scheme. Legal powers to carry out these functions are provided by the Housing (Amendment) Ordinance 1978. The Housing Authority is chaired by the Secretary for Housing and comprises 13 un- official members, eight of whom are Urban Councillors, and six official members. All members are appointed by the Governor. The Housing Authority is responsible for its own finances and management. Under revised financial arrangements drawn up in 1977, the Housing Authority is no longer required to pay any premium for land granted by the government for public rental housing. However, land value, derived from the residual valuation method, is written into the Housing Authority's balance sheet as a government contribution. Loans from the Development Loan Fund for new buildings are repaid over 40 years, interest-free.

Construction

The current government housing programme aims at producing 175,000 flats, for rental and for sale, over the next five years. Some 46 contracts were let during 1979 at a cost of $1,530 million. At the end of the year, 70 contracts, including 14 for Home Ownership Scheme projects and three handled by the Public Works Department, were in progress to provide 92,500 flats over the next three years.

Home Ownership Scheme

As public housing marked its silver jubilee in 1979, the infant Home Ownership Scheme reached maturity following completion of the first flats built under the project. The scheme was announced in 1976 to assist the growing aspirations of the low-to-middle income group which

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could not afford the prices prevailing on the open market. After a year's careful planning, a high-level working party chaired by the Financial Secretary was able to report that sites had been earmarked for some 42,000 flats to be built in phases up to 1986; that they would be sold on a non-profit-making basis; that mortgages would be available on assisted terms; and that sales of flats would be restricted to two distinct groups: public housing tenants who surrendered their low-rent flats and families in the private sector with a combined monthly income not in excess of $3,500. A number of other ground rules were established to ensure that only people for whom the scheme was designed were able to qualify.

      The first phase got under way in 1977 when the Housing Authority accepted respon- sibility for designing, developing, marketing and managing the flats. Under the scheme, flats are built to standards comparable with good private developments, have two or three bedrooms, and a net area ranging between 35 and 65 square metres. All costs are covered by a Home Ownership Fund set up by the government. But, apart from the initial develop- ment expenses, the scheme is planned to be virtually self-financing through proceeds from flats sold at prices set to cover the market cost of land, design, construction and marketing

expenses.

Flats in Phase I were sold for prices ranging from about $81,000 to $166,000 - well below market levels. Not surprisingly, almost 36,000 applications were received for the 8,373 flats available at six sites located in both urban and semi-rural areas. Ballots were held to provide an equal number of successful applicants from each category, who were then thoroughly vetted to ensure they qualified for the scheme. As a result of these investigations, a number of applicants were disqualified or withdrew.

      Applicants who passed their interviews were invited to select flats in their order of priority, at which time they made a minimum down payment of 10 per cent of the purchase price. Conveyancing formalities were completed by the Registrar General's Department for a nominal fee, but purchasers were required to pay the normal stamp duty and land registra- tion fee. A number of leading banks and financial institutions offered special mortgage terms. These entitled first-phase buyers to obtain loans of up to 90 per cent of the purchase price repayable over 15 years, at interest rates fixed between 71⁄2 and nine per cent per annum for the first five years. To prevent profit-taking, purchasers are not allowed to sell their flat within the first five years, although the Housing Authority reserves the right to repurchase at the original price.

In the event, almost half the Phase I flats were bought by tenants who agreed to give up their public housing flats. It is appropriate in this silver jubilee year that some of the new home owners started out as tenants when Hong Kong's public housing programme came into being in 1954.

-

As a supplement to the Home Ownership Scheme, the government invited private developers to produce similar flats for sale at fixed prices to applicants processed by the Housing Authority. Flats in the first two private sector participation scheme projects a 1,000-flat project at Tuen Mun New Town and a 506-flat project at Yau Tong - were sold towards the end of the year; and the tender for a third 768-flat project was awarded at the end of the year.

Production of the next phase of Home Ownership Scheme flats is progressing well, with planning at an advanced stage for projects coming on stream within five years. The next batch of flats will be sold in early 1980. After selling the Phase I flats, the government reassessed the household income limit to take into account the changing economic condi- tions in the past two years. As a result, the limit was raised from $3,500 to $5,000 a month.

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Urban Housing and Redevelopment

HOUSING AND LAND

Private development and some 67 public housing estates occupy most of the developable land on Hong Kong Island and in Kowloon, where population densities are among the highest in the world. However, every effort is being made to extract the optimum develop- ment potential from the remaining sites, many of which are occupied by squatter huts and resettlement cottages built in the 1950s.

In east Kowloon, domestic blocks containing 2,352 flats and a large commercial complex were completed at Shun Lee Estate, which was opened by the Governor in March, 1979. Further phases are still under construction to provide a large, self-contained neighbourhood which will eventually house some 60,000 people. A further 3,590 flats were completed in the neighbouring Choi Wan Estate where the final housing blocks are nearing completion. At Pak Tin Estate in west Kowloon, the Public Works Department completed the final three blocks containing 1,672 flats and a commercial complex. This work, along with two further phases of the nearby Shek Kip Mei Estate redevelopment scheme comprising 2,000 flats and a large market, will contribute to 32 per cent of the old estate population eventually being rehoused. It has been agreed that the remaining stages will be undertaken by the Housing Department. Nearby, the building of two more blocks comprising 796 flats at Nam Shan Estate resulted in further progress being made on the Tai Hang Tung Estate redevelopment scheme.

At Chai Wan on Hong Kong Island, a new 26-storey block containing 918 flats towered over the Mark I and II blocks still being redeveloped at the old Chai Wan Estate.

Some 2,202 flats in the first phase of a new estate on Ap Lei Chau, overlooking crowded Aberdeen Harbour, were completed at the end of the year. The flats will be occupied as soon as the new bridge to Hong Kong Island is opened.

Housing in the New Towns

Most new housing produced during 1979 was built in the urban areas of Hong Kong Island and Kowloon. But this trend will change in 1980 when an increasingly large number of flats will be completed in the New Territories' new towns of Tsuen Wan, Sha Tin and Tuen Mun, where major schemes are under construction. The greater availability of land in the New Territories enables the new generation of estates to be planned with a density of about 2,500 people per hectare. Space is provided for recreation grounds, schools and kindergartens, commercial centres and all other services required by new communities. As the average family size is declining and overall demand is still increasing, planning standards of future estates are being modified to provide a larger number of smaller flats, while keeping to this density standard.

In Tsuen Wan, a further two blocks and a large commercial centre/carpark completed the attractive estate of Cheung Shan (1,607 flats) in the north Tsuen Wan foothills. Nearby, three new blocks of 720 smaller flats were nearing completion at Lei Muk Shue Estate. On Tsing Yi Island, a further three blocks containing 1,152 flats were also nearing com- pletion at the large Cheung Hong Estate. The first phase of the redevelopment of Tai Wo Hau Estate was also carried out during the year.

Some 11 public housing estates are planned for Sha Tin, which will have an eventual population of about 570,000 by the mid-1980s. At the second of these estates, Wo Che, two blocks of 604 smaller flats were completed in January and a further six blocks con- taining 2,923 flats at the end of the year. All these domestic blocks are connected by first-floor pedestrian walkways to a central commercial centre occupying a gross area of six hectares. In September, the first of the 179 shops in the complex were let on a tendered

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rental basis to produce an average rental of $108 per square metre. Three further rental estates - Sha Kok, Sun Tin Wai and Mei Lam - were under construction and other estates were being planned.

In Tuen Mun, three blocks containing 1,834 flats were completed to form Sam Shing Estate overlooking the fishing harbour; some of these flats will be occupied by families originally cleared from this area. Additional blocks at Tai Hing Estate were completed by the Public Works Department, and the Housing Department made good progress on the first phase of On Ting Estate. Planning also proceeded on other estates in the district. Development advanced during the year on the three smaller but no less important new towns of Tai Po, Fanling-Sheung Shui-Shek Wu Hui, and Yuen Long. In Tai Po, work continued on the first phase of Tai Yuen Estate on the new reclamation. When completed in 1980, the 2,655 flats being built in this phase will provide the town with its first public rental housing.

       At Shek Wu Hui, which is being linked with the adjoining market centres of Fanling and Sheung Shui to form a single community, piling work started on the first phase of a housing project that will ultimately provide 5,091 flats. Planning continued for three more estates to be built at Shek Wu Hui and Fanling.

In Yuen Long, construction work went ahead on a 2,000 flat estate at Shui Pin Wai. On the outlying islands, work advanced on the 182 flats being built in the first phase of the first rural housing estate at Tai O, on Lantau Island, and plans were completed for a housing estate at Cheung Chau.

Allocations

The Housing Authority possesses a stock of 396,000 domestic flats, of widely varying sizes, amenities and rent levels. Because of the heavy demand for flats available for allocation, the authority introduced in December a new qualification - at least seven years' residence - to prevent new arrivals from obtaining public housing ahead of long-term residents.

During the year, 19,060 flats were allocated to 89,400 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; occupants of huts and other structures in a dangerous location; former tenants of dangerous buildings; devel- opment clearances; tenants of early housing estates under redevelopment; residents affected by the re-use of temporary housing areas; waiting-list applicants; junior civil servants and pensioners; and miscellaneous. A total of 5,790 flats were allocated to families rendered homeless by development clearances, while 2,330 were allocated to waiting-list applicants. Any family of three people or a married couple who are Hong Kong residents may register on the waiting list for public housing. No income or other check is made at the time of application. The waiting list is long; since 1967, 413,500 families have applied, of whom 64,000 have been rehoused with another 197,000 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 and whose family income is within a scale related to family size. This scale was revised during 1979 and now ranges from $2,200 a month for a family of three to a maximum of $3,150 for a family of 10 or more.

Management X

Management improvements, particularly in the older estates, continued to be made during the year. The door-to-door system of rent collection, which covers all estates,

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ensures not only an enviable rent collection record (less than 0.3 per cent monthly arrears) but also is an important means of keeping in touch with tenants.

      Overcrowding in the older estates remains a major problem and some 44,000 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 Housing Authority is also an important commercial landlord, with 12,200 shop, bank and restaurant tenancies of various sizes. In the past, most tenancies were let on the basis of a tendered premium. But, as an experiment, shops and shop-stalls in new commercial complexes are now being let on a tendered rental, thus giving the smaller operator with limited capital an opportunity to obtain an estate shop. Because results have so far been encouraging, it is likely that this new letting system will be used more often. Commercial properties are generally let on a three or five-year agreement. While rents are raised to near-market levels on renewal of an agreement, where increases are substantial it is the policy of the Housing Authority to apply them in stages over two or three years. The authority also manages 4,100 factory tenancies in 28 purpose-built blocks and 6,300 cottages in various districts. Rents charged for the older factory estates were raised during the year to meet rising costs.

The authority lets about 150 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.

On January 1, 1979, the Housing (Traffic) By-laws came into effect to give the Housing Authority greater power to control car parking in estates.

Maintenance and improvements are major items, particularly in the older estates. During the year, some $37 million was spent on contract cleansing and $103 million was spent on maintenance improvements, mainly painting contracts, planned preventive maintenance of buildings and electrical systems, and estate improvements, such as recrea- tion 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 700 mutual aid committees and other residents' associations established for such purposes as the 'Keep Hong Kong Clean' and 'Fight Crime' campaigns.

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 build

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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 manage- ment services. Family units are let at a modest, monthly rental of $5.38 for each square metre.

       A total of 28,000 people, including 2,000 from the waiting list and 6,000 affected by typhoons and fires, moved into temporary housing during the year. This brought to 80,000 the number of people living in the 40 temporary housing areas managed by the Housing Authority.

Transit Centres x

The Housing Authority also provides short-term accommodation in transit centres for people made homeless by fires or natural disasters. Because of the increased calls on transit centres during the year, it was necessary to use temporary housing areas to accom- modate some people who would normally be allocated space in a transit centre. The total capacity of the transit centres is about 1,700 people.

Squatter Control and Clearance

Despite higher production figures for public housing, the number of squatters has reduced but little in recent years because Hong Kong's population continues to grow alarmingly - mainly from illegal immigration. The policy for dealing with the environmental and social problems created by squatter areas has had to be modified over the years to allow for changing circumstances. Today, because of the tremendous pressure on housing, the policy is to clear only those areas required for permanent development and to exercise strict control over the building of additional structures in areas planned for such development. Squatters occupying huts covered by the 1964 General Squatter Survey, together with people occupying licensed structures, temporary housing areas and private tenement buildings required for a public purpose or declared dangerous, are eligible for direct permanent housing on clearance. Squatters occupying post-1964 survey structures and houseboats are only eligible for temporary housing.

During 1979, a total of 22,900 people moved into permanent housing and a further 8,000 into temporary housing as a result of clearance operations. The 1979 programme yielded 255.6 hectares of land for development with the removal of more than 30,900 people from squatter-type structures.

      The Housing Department's responsibility for controlling squatters was extended at the end of the year to include Sha Tin and Tuen Mun New Towns in the New Territories. Previously, this control had been confined to the urban areas of Hong Kong Island, Kowloon and the Tsuen Wan district of the New Territories. About 331,000 squatters live in these five districts.

      With squatters being cleared only from land required for permanent development, the task of squatter control is to contain the growth of temporary structures on areas of Crown land required for development or where squatter structures are likely to create health, fire or structural hazards. During the year, 6,900 structures or extensions were demolished in a number of areas designated as intensive patrol areas.

       Renewed immigration in 1979 led to general overcrowding in existing squatter structures and the presence of racketeers attempting to build and sell huts for profit. The speed with which these huts were built and occupied added to the problem of squatter control, particularly outside areas patrolled intensively.

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Some 10,100 people were cleared from dangerous buildings, buildings affected by urban renewal, temporary housing areas and structures affected by natural disasters. Of these, 3,200 were allocated permanent housing and the balance temporary housing. A shortage of temporary housing in the urban areas resulted in an increasing number of people having to be offered rehousing in the New Territories. Understandably, the need to do this met with some opposition.

Early in August, a group of boat squatters from the Yau Ma Tei Typhoon Shelter petitioned the Housing Department for immediate rehousing, claiming that Typhoon Hope had put their houseboats in imminent danger of sinking. They demanded that all people occupying houseboats in the typhoon shelter be rehoused ashore immediately. The petitioners were told that, because of a shortage of both transit centre and temporary housing accommodation in the urban areas, all families of boats certified by the Marine Department as being in imminent danger or sunk would be immediately offered accom- modation in modern temporary housing at Tai Po, Fanling and Tuen Mun. Although many people were quick to accept the offer, others naturally did not relish the thought of moving out to the New Territories. Five days later, about 70 boat squatters, apparently encouraged by some students and social workers, broke into premises in the Chatham Road Transit Centre and staged a sit-in in support of demands to be rehoused in the urban area. The protest was settled amicably after four days when the boat squatters accepted the rehousing offer, and repaired the small amount of damage done to the premises.

       Three serious squatter area fires in Kowloon during the driest October on record resulted in 2,500 people taking up temporary housing in the New Territories. The first fire, which broke out in a densely-populated squatter area at Lei Yue Mun on October 3, left 2,500 people homeless. Four days later, a further 4,100 people lost their homes when a fire razed the Ma Chai Hang squatter area at the base of Lion Rock. The third fire made 700 people homeless on October 20 when a fire swept unchecked through squatter huts at Sau Mau Ping. The Ma Chai Hang fire evoked a five-day sit-in outside Housing Department headquarters by victims demanding rehousing near their jobs. The protest ended when the Housing Department arranged to provide for the victims resettle- ment in a new temporary housing area to be built at Sha Tin over the next 10 to 12 months, on a piece of land found specially for the purpose. They agreed to move into temporary housing at Tai Po or Fanling pending completion of the new Sha Tin temporary housing area.

Town Planning

The overall objective of town planning in Hong Kong is to ensure that the limited land resources are utilised in the best possible way to meet competing needs. Sufficient land has to be provided for public and private housing, commerce and industry, recreational and community uses, while the quality of the living and working environment for the population is maintained and 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 published for public inspection 12 draft statutory plans including amendments to the draft outline zoning plans for the Peak area and Tsim Sha Tsui. A new plan was published for Kowloon Tong. Following consideration of public objections and the holding of hearings for objectors, the board amended some of the draft plans and exhibited them for further public inspection.

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       In the urban areas, there are 39 planning areas, of which 24 are covered by draft or approved statutory plans. In the New Territories, Tsuen Wan New Town and Sha Tin New Town are covered by draft statutory plans and a draft plan for Tuen Mun New Town is being prepared.

       The standard notes attached to a statutory plan set out the land uses which are permitted in a particular zone and other uses for which the Town Planning Board's permission must be obtained. These notes are under revision in the Town Planning Office. The availability of planning permission for alternative uses allows greater flexibility in land use planning and enables better control of development projects to meet changing needs. During the year, the board received and considered 120 applications for permission for alternative uses, 30 per cent more than in the previous year.

The Town Planning Office provides services to the Town Planning Board, the Land Development Policy Committee and the New Territories Development Progress Com- mittee. The office prepares draft outline zoning plans, departmental outline development plans, layout plans and planning guides. It is responsible for development control and for the reservation of sites for public purposes, and it provides planning advice to other government departments, advisory bodies and the public.

The revision of all chapters of the Hong Kong Outline Plan was completed during the year by the Town Planning Office and was approved by the Hong Kong Outline Plan Steering Group and the Land Development Policy Committee. The Hong Kong Outline Plan lays down general planning concepts and policies and defines standards and locational factors for the provision of community and other facilities. Planning studies, land use and building surveys, and a 10-year development programme are undertaken by the Town Planning Office. It is also responsible for updating planning information and for providing background material to prepare and revise statutory plans and departmental plans. During the year, the more important documents completed were the 1979 Report on Land Production, prepared for the Special Committee on Land Production, and the Phase 1 Report of the North-Western New Territories Planning Study.

       Planning studies for the future use of released military land, including proposals and layout plans for the former Royal Air Force station at Kai Tak, Sham Shui Po Army Camp and Victoria Barracks, continued in 1979.

Site investigations were carried out and planning briefs were produced in 1979 for sites earmarked for public housing estates and Home Ownership Scheme projects. Feasibility studies were also carried out in consultation with other departments.

Many departmental plans for new development areas were prepared and existing plans were revised to take into account changes in population forecasts, government policies, planning standards and other trends. A schedule of all existing statutory outline zoning plans, departmental outline development plans and layout plans is issued to other govern- ment departments, utility companies and concerned organisations for their information.

Private Building

Even though bank lending rates were increased on a number of occasions during 1979 and high prices were being paid for land, the pace of private building continued unabated. A variety of large-scale multi-million dollar projects were initiated or under way on Hong Kong Island and in Kowloon and the New Territories. The Buildings Ordinance Office of the Public Works Department processed a total of 988 new building proposals in 1979 compared with 914 in 1978.

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       In June, the government introduced legislation to restrict temporarily the approval of building projects in specified areas of the Mid-Levels on Hong Kong Island. This followed a recommendation by the Geotechnical Control Office of the Public Works Department which had been examining the problems caused by cut, artificial and natural slopes in the Mid-Levels area. Under the legislation, the Building Authority, until December 31, 1981, is required to refuse to approve plans or grant consent for any building project involving site formation, foundation, excavation or similar work within this area, unless otherwise directed by the Governor.

One of the responsibilities of the Building Authority is the control of unauthorised structures on buildings. During 1979, 2,788 buildings were kept under surveillance and a total of 1,987 notices requiring corrective works were served. The more prevalent offences were interference with means of escape arrangements, unlawful construction of balconies, and the erection of unlawful structures on rooftops. A new procedure was established during the year to provide better 'on site' compliance with notices; however, the required level of activity in control and enforcement was restricted because of lack of adequate staff. The Buildings Ordinance Office's Dangerous Buildings and Works Divisions are con- cerned with seeking out and dealing with potentially dangerous private buildings and ensuring that remedial works or demolition are carried out in default of owners or in an emergency. Their responsibilities include the removal of unauthorised structures, building alterations, emergency demolition or repair works, dealing with defective drainage, and securing the removal of dangerous advertising signs.

       The Mass Transit Division of the Buildings Ordinance Office administers the Buildings Ordinance in respect of property development by the Mass Transit Railway Corporation, examines its proposals, and monitors construction operations including dewatering, tun- nelling, ground treatment, diaphragm walling, ground anchors and blasting in order to safeguard nearby buildings.

Management of Buildings in Multiple Ownership

During 1979, 183 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 com- mittee for the better management of their building, particularly to ensure its maintenance and to uphold environmental standards. By the end of 1979, the total number of corpora- tions was 1,422.

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' corporations, 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 1979, 3,890 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 excluding from control any new or substantially reconstructed buildings.

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      Increases in rents are permitted periodically, the latest being in June, 1979, when the legislation was amended to provide for permitted rents to be four times the standard rent in the case of domestic premises and eight times for business premises. In either case, the permitted rent is not to exceed the fair market rent. There are provisions for the Com- missioner of Rating and Valuation to certify the user of premises and their fair market rent. 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 improvements 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 and so, year by year, the stock of pre-war buildings is gradually diminishing. The usual purpose of exclusion is redevelopment and generally possession is subject to the payment of com- pensation to the protected tenants. The Rating and Valuation Department provides a mediating 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. As a further step to improve its service to members of the public, the department launched a Rent Officer Scheme in 1978. Under the scheme, rent officers attend certain selected City District Offices on set days each week to deal with referred cases and to answer inquiries 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 it has been embodied as Part II of the Landlord and Tenant (Consolida- tion) Ordinance. This legislation provided security of tenure and controlled increases in rents for the majority of tenants and sub-tenants in post-war domestic premises in the private sector. Increases in rent for protected tenants were limited to a maximum of 21 per cent every two years. This provision did 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 were also excluded.

       In 1979, rents in the uncontrolled sector of the domestic property market moved upwards. The movement was more rapid in respect of high-class domestic accommodation owing to a below average supply in 1978 and an increased demand. There were reports that tenants were experiencing difficulties in negotiating renewals of tenancies and in finding alternative accommodation at reasonable rents. A working group comprising representatives from various government departments was formed to identify sites for constructing high-class housing and to speed up the programme of making additional sites available for develop- ment. Other measures, including suggestions to extend rent controls to those premises excluded from legislation and an extension of the government's Home Ownership Scheme, were also examined.

       On December 18, 1979, the government announced that legislation was to be introduced into the Legislative Council early in 1980 which would bring all domestic rented accom-

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modation under rent control. If the legislation is approved, it will take effect from December 18, 1979. This means that rent increases for all domestic rented accommodation will be limited to 21 per cent every two years and that all tenants will have security of tenure. All previous categories excluded from rent control in the private sector will be covered by the new legislation. The legislation will also propose that in respect of new and fresh lettings there will be no restriction on the amount of rents that may be agreed between landlords and tenants.

      In announcing the proposed legislation, the government said that the disadvantages and advantages of introducing rent control to cover all domestic rented accommodation had been weighed carefully. The strong public interest, the anxiety of people who were experi-~ encing difficulties in this field, and the possible adverse effects were taken into account.

It is expected that the continuing strong demand for domestic property should continue to encourage developers in their high rate of production. The government's attitude is that the basic and durable long-term answer is to increase the supply of public and private sector housing in Hong Kong.

Land

Following the appointment by the Governor in 1977 of a Special Committee on Land Production, a Land Sales Targets Committee was formed in May, 1979, under the chairman- ship of the Deputy Secretary for the Environment. The aim of the committee is to ensure that a steady supply of all categories of land is put on the market. Specific sites identified are collated in the Crown Lands and Survey Office into a working five-year land sales forecast.

Administration

Land administration on Hong Kong Island and in 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 Land and Valuation Branches of the Crown Lands and Survey Office of the Public Works Department, staffed by professional officers, are responsible for carrying out land sales, land and property valuations, land acquisition, estate management and clearance services. Officers also record and analyse all sales and lettings in the territory's 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 interests. 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

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than public housing) development in the urban areas is sold by public auction. 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 tender to holders of land exchange entitlements.

      Leases for certain special purposes, which have particular site requirements or other factors which would make a public auction inappropriate, 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 response to a formal application, and in certain circumstances may be concluded by private treaty, subject to the approval of the Governor in Council.

      The bulk of industrial accommodation in Hong Kong is provided by developers for onward sale or rent to industrialists. Accordingly, to cater for specialist industrial users, a number of recent industrial lots sold in the New Territories incorporated lease conditions requiring the developer to design a percentage of the permissible floor area with heavy floor loading capabilities and high ceiling clearance. A number of lots also have been sold requiring the provision of small industrial units.

      Land for community purposes, such as schools and hospitals to be developed by private non-profit-making bodies, is also granted at nil premium by private treaty. Land for public housing is allocated at nil premium to the Housing Authority, and grants at one-third full market value or acquisition costs, as appropriate, 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 redevelopment com- plying with the applicable town planning requirements. 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 is also 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 legisla- tion was enacted in 1973 to introduce a new Crown rent related to the rateable value of the property situated on the lot.

From mid-1978 through to 1979, buyers had the option, where the premium for a com mercial or residential site exceeded $10 million, of making a down payment of $5 million or 20

per cent of the premium, whichever was the greater, followed by the balance in 10 equal annual instalments bearing interest at 10 per cent per annum. On December 1, 1979, however, this concession was withdrawn and the premium must now be paid in full within 30 days of the sale.

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

Important land transactions during 1979 included the auctioning by the government of three prime sites in Tsim Sha Tsui East. One of the sites covering 1,500 square metres sold

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in December for $260 million - a record price of $173,333 a square metre. A 2,900-square metre site, sold in January, realised $215 million - $74,138 a square metre; while a 4,500- square metre site, sold in June, achieved $400 million - $88,889 a square metre.

Three sites in Kowloon at Lai Chi Kok, Lam Tin and Ngau Tau Kok were granted to the Housing Authority for the Home Ownership Scheme. At Victoria Barracks, 18 hectares of land, previously used by the British Ministry of Defence, was handed over to the Hong Kong Government on March 31, 1979, as part of the Defence Costs Agreement. Some of the area will be reserved for recreational and leisure purposes, while the remainder will be used for commercial, residential and government projects.

In the New Territories, at Ho Chung near Sai Kung, a site was granted by the government for the construction of a $300 million high-class housing and marina complex modelled on Port Grimaud in the south of France. The project, which will include a yacht club, will provide 400 three-storey home units, each with a marina berth. At Clear Water Bay, a 121-hectare site was granted for development as a golf course with a country club and marina. A 140,000-square metre site was granted in Tsing Lung Tau, west of Tsuen Wan, for the construction of a high-class residential complex for 12,500 people in some 60 12-storey blocks.

With the modernisation and electrification of the Kowloon-Canton Railway, the new Sha Tin depot has been designed to incorporate a substantial commercial/residential complex. Development rights for this complex were sold by tender in 1979. A number of high-rise residential blocks which will ultimately accommodate some 13,000 people, with supporting commercial facilities, will be built on a 27,000-square metre podium.

In addition to the two Home Ownership Scheme sites previously granted at Sha Tin and Lai King in the New Territories, another site of 0.79 hectares at Lai Yiu (Kwai Chung) was granted in 1979 to accommodate 290 flats.

Revenue

Revenue received by the government from land transactions in the urban areas of Hong Kong Island and Kowloon totalled $1,004.9 million in 1979, compared with $881.8 million in 1978. In the New Territories, revenue from land sales amounted to $211 million. (Revenue includes both premia and instalments paid on land transactions in the course of the year, depending on the terms of the sale.)

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 in April, 1978, a new system was introduced in the urban areas under which sites for open storage or car parking were offered on a competitive basis by open tender; during 1979 the system was extended to the New Territories. In 1979, revenue from tenancies amounted to $40.5 million in the urban areas and $18 million in the New Territories. A further $12 million in revenue came from letting buildings owned wholly or partly by the govern- ment.

Control

The government is continuing its policy of fencing vacant cleared sites and installing security guards. This mitigates 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.

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The issue, renewal, variation and termination of Crown leases are dealt with by the Land Office, a division 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; the granting of mining leases; the registration of owners' corporations; the apportionment of Crown rents and premiums; the enforcement of lease conditions; and the provision of conveyancing services for the Housing Authority in connection with the sale of flats built under the Home Ownership Scheme. It gives legal and other advice to the government generally on matters relating to land.

A special Crown Rent Collection Section was established in the Land Office during the year to deal with the recovery of outstanding Crown rents by issuing warning letters de- manding payment to defaulters, and, if necessary, proceeding with re-entry or vesting action. After a comprehensive survey of the existing system of registering, keeping and retrieving Land Office records, it was decided that all memorials, Crown leases and conditions of sale, grant and other documents should be kept in microfilm form. Arrangements were made during the year for microfilming to start in 1980.

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 one month of execution, in which case priority generally relates back to the date of the instrument. However, for charging orders and pending actions, priority runs from the commencement of the day following the date of actual registration. 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. Registration is therefore essential to the protection of title, but does not guarantee it.

      During the year, 170,054 instruments were registered in the Land Office, compared with 170,715 in 1978. 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 361,991 people, an increase of 24,122 over the previous year. Some own several properties, but most are owners or part-owners of small, individual flats.

Urban Renewal and Environmental Improvement

To assist the Hong Kong Housing Society's urban improvement scheme, the government resumed 38 properties in Hee Wong Terrace, Kennedy Town, and six properties in Wing Fung Street, Wan Chai, in early 1979. The Housing Society plans to build at each site a 'garden estate' type of redevelopment consisting of 10 four-storey detached or semi-detached apartment blocks and a 21-storey block on a podium. Negotiations with former owners on the amount of compensation for their properties were held in 1979; all eligible former occupiers are being rehoused and given ex-gratia compensation.

      Two sites which are part of the Urban Renewal Pilot Scheme were sold for a total of $141 million in 1979, adding to the accumulated revenue of $387.5 million derived from

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the auction of sites within the scheme. It is planned to auction further sites at regular intervals within this area, which is bounded by Queen's Road Central, Queen's Road West, Hollywood Road, Shing Wong Street and Gough Street.

Private property zoned for open space and government, institutional and community uses in the town plans for Western District, Wan Chai and Yau Ma Tei was purchased by the government during the year. Eighty properties were acquired at a cost of $43 million. All eligible tenants were offered rehousing and given ex-gratia compensation. The cleared sites, in most cases, will be developed and managed by the Urban Council as open space

areas.

The Urban Council plans to redevelop the existing Western District Market, with the associated widening of Morrison Street abutting the proposed market complex. The scheme is designed to improve the area's general environment and market facilities; the complex, which is expected to be completed in 1982, will include a modern market, a district library, indoor games halls and other facilities.

Acquisition for Public Purposes

When private property needed for the implementation of public works projects cannot be acquired by negotiation, the use of compulsory powers becomes necessary. Property is then acquired under either the Crown Lands Resumption Ordinance or the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance. These ordinances provide for the payment of compensation based on market values at the date of reversion. If agreement cannot be reached on the amount payable, the case can be referred by either party to the Lands Tribunal for determination. In the new town areas of the New Territories, acquisition is usually effected by a system involving the payment of cash compensation in respect of at least half of the land acquired, and the issue of land exchange entitlements in respect of the remainder. These entitlements give the landowner an opportunity to participate in the development of sites.

The compulsory extinguishment of marine rights, usually required for reclamation projects, is effected under either the Public Reclamation and Works Ordinance or the Foreshores and Sea-bed Ordinance. These ordinances provide for the lodging of objections to a scheme and for the payment of compensation where private rights are affected.

Public works affecting existing highways but not involving the acquisition of private land are dealt with under the Streets (Alteration) Ordinance, which also has similar provisions for the lodging of objections and the payment of compensation.

       During 1979, some $100 million was paid in compensation for land and buildings acquired in the urban areas of Hong Kong Island and Kowloon, either under compulsory powers or by agreement, to be used for government projects, excluding urban renewal and environ- mental improvement programmes and Mass Transit Railway acquisitions. Approximately 110 hectares was acquired in the New Territories for the implementation of town develop- ment programmes and public works projects.

Survey

The Survey Branch of the Crown Lands and Survey Office provides a network of trigono- metrical stations and bench marks upon which all land and engineering surveys are based, and for the mapping of Hong Kong and the delineation and physical marking of boundaries of lots.

The branch's Photogrammetric Unit supplies detailed survey plots for engineering and development purposes; during the year it was also able to make good progress on con-

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touring for the standard metric 1:1,000 series of plans. Investigations were under way into the acquisition of a sixth plotter which will have the flexibility to map from terrestrial photography, mainly for surveys for the Geotechnical Control Office. Aerial photography for photogrammetric plotting purposes, engineering and environmental studies is supplied by the Air Survey Unit, assisted by the Royal Hong Kong Auxiliary Air Force.

       The computation and adjustment of a new precise control system throughout Hong Kong was completed during 1979 with excellent results. This followed the reobservation of 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. Survey control of very high accuracy is now available and will meet the requirements of any engineering or other works.

Projects undertaken or completed by the Survey Branch during 1979 included revision for second editions of the 1:20,000 topographic dual language map series; the reprinting of Hong Kong Streets and Places, Volumes 1 and 2; the production of the fourth 'Country- side' series map showing the Sai Kung peninsula and Clear Water Bay; and design work for the fifth 'Countryside' map covering Sha Tau Kok and Plover Cove.

       Other maps and charts which were revised and reprinted included the popular Hong Kong Official Guide Map, the Hong Kong Harbour Plan and the 1:50,000 and 1:100,000 colour maps. Design work for the 1:5,000 New Territories series was completed but production of this and the proposed 1:100,000 monochrome series was deferred. A pro- gramme for the production of 1:1,000 interim sheets to cover active development areas, required by town planning and engineering authorities, and by consultants, resulted in 500 sheets in metric form showing imperial contours with converted metric values.

       The Public Works Department's Survey Training School provides training for both the survey and cartographic disciplines. During the year, 173 government officers attended various courses at the school.

10

福社

Social Welfare

HE

A COMPREHENSIVE White Paper on Social Welfare into the 1980s covering the direction and development of Hong Kong's social security and welfare services was published in 1979. The publication of the White Paper was a significant event because it spelt out the guide- lines for the future expansion and progress of many of the territory's social welfare services.

As Hong Kong moves into the 1980s, the government is planning to implement important programmes aimed at the elderly, young people, and those in need of social security benefits. While it has concentrated on these groups, the White Paper also has updated the govern- ment's policies in other social welfare fields with the exception of rehabilitation, which was covered by the White Paper on Rehabilitation published in 1977.

The White Paper on Social Welfare into the 1980s has its broad base in the 1977 Green Papers on Social Security, Personal Social Work Among Young People, and Services for the Elderly. However, it has taken into consideration comments and suggestions made by voluntary welfare organisations and the public following the publication of the Green Papers.

The White Paper's major proposals are:

. The introduction of a disability supplement under the Public Assistance Scheme to

provide increased support for the partially disabled and their families;

The extension of the non-means-tested disability allowance under the Special Needs Allowance Scheme to the profoundly deaf;

• The improvement of services for the elderly. Plans include the provision of 3,000 addi- tional places in homes for the aged and in care-and-attention homes by 1982-3, 5,000 places in hostels built by the Housing Authority by 1987-8, and a wide range of community and health services;

. The expansion of family life education, school social work and outreaching social work

to provide help and guidance to young people from the ages of six to 20 years.

Soon after the White Paper was tabled at the Legislative Council, one of its proposals, a Traffic Accident Victims Assistance Scheme, was introduced in May. This scheme provides immediate cash relief for traffic accident victims or their families, irrespective of which person is at fault.

The accomplishment of the White Paper proposals and other social security and welfare programmes will necessitate greater recurrent and capital expenditure by the government. Some $631 million in recurrent expenditure and $10 million in capital expenditure is being spent on social welfare in the 1979-80 financial year. This is an increase of $103 million in recurrent expenditure and $3.2 million in capital expenditure over the 1978-9 levels.

Responsibility for carrying out government policies on social security and welfare rests with the Director of Social Welfare who heads the Social Welfare Department. The depart- ment was reorganised on a regional basis in April, 1979. Four regions were established with

FURNITURE

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Hong Kong's furniture industry is notable for its diversity. Craftsmen produce decor- ative coromandel screens, chests inlaid with mother-of-pearl and beautifully carved tables depicting scenes from Chinese folk- lore. Skilled workers twist and weave rat-r tan into contemporary dining and lounge suites. A variety of furniture is made from woods such as teak, padouk, rosewood and Macassar ebony in styles ranging from traditional Chinese to modern Western designs. Hong Kong has a lucrative home market and is an major furniture exporter, but it has the potential for further develop- ment. The Trade Industry and Customs Department, the Trade Development Council and the Hong Kong Productivity Centre are working to improve quality, standards of design, productivity and profitability. Training programmes are being encouraged. In Hong Kong, the furniture industry, comprising mostly small factories in high-rise buildings, is affected by a shortage of space, high rents and an increasing cost of labour. However, it possesses a significant number of craftsmen whose workmanship is noted for its high standard. The use of their skills and the introduction of more efficient manufac- turing techniques in the production of both www.traditional and contemporary furniture are considered key factors in the future growth of the industry.

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Even reproduction furniture from 18th century Europe is made in Hong Kong: with paintbrush and gilt, a worker defines the lines of a stylish chair.

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     A Trade Development Council consultant checks a design adapted from the Ming Dynasty. The TDC is encouraging the production of Ming Dynasty-influenced furniture because its classic simplicity has appeal in Western markets.

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      11 district offices in Hong Kong, Kowloon and the New Territories. The district offices, with their sub-district offices, are the main point of contact with people and voluntary welfare organisations and they provide a complete range of social welfare services.

      The Social Welfare Department operates through four main branches. The Development and Social Security Branches are responsible for central planning and the development of new policies in social welfare and social security. The Subventions Branch deals with the central administration of subventions, and the evaluation and servicing of various advisory committees. The Operations Branch supervises activities in the four regions with their 11 districts.

       The continued shortage of trained social workers and specialised staff will be aggravated by the demands of the government's new and expanded social security and welfare pro- grammes. As a result, steps are being taken to make the social work profession more at- tractive financially. The department is looking into ways to make fuller use of trained staff and it wants to see the output of trained social workers increased, both at the graduate and non-graduate level. A review of the staffing structure within the department has resulted in major changes that will provide separate social work and social security streams. This will enable trained social workers to concentrate on work that requires professional skills. Revised pay scales were brought into effect in April, 1979, and the restructuring was pro- ceeding at the end of 1979.

      Voluntary agencies play a key role in the provision and development of social welfare services in Hong Kong. Most agencies are affiliated to the Hong Kong Council of Social Service and many are assisted by annual subventions from the government. These amounted to $117 million for the 1979-80 financial year. Subventions are given on a discretionary lump sum basis, but this system is being reviewed.

       The Community Chest, to which some 75 welfare bodies belong, represents an endeavour by these organisations to co-ordinate their local fund-raising activities. The Community Chest raised $17.7 million in its 11th annual fund-raising campaign in 1978-9, compared with $13.8 million in 1977-8.

Social Security

Social security is provided through the Public Assistance Scheme, the Special Needs Allowance Scheme, the Criminal and Law Enforcement Injuries Compensation Scheme, the Traffic Accident Victims Assistance Scheme, and Emergency Relief. These schemes are administered largely by the Social Welfare 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 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 people aged between 15 and 17 are eligible as family members.

       The scales of assistance are reviewed regularly and were adjusted on September 1, 1979. The existing monthly basic scale rate of assistance is $230 for single person; $165 for each of the first three eligible members of a family; $140 for each of the succeeding three; and $105 for each eligible member thereafter. Old age supplement and long-term supplement benefits are payable on top of the basic scale rates. An old age supplement of $115 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 $575 for a family and $290 for a single person is given to public assistance recipients who have relied on the

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scheme for more than 12 months. In addition, supplementary assistance is available for rent, school expenses, special diets and other essential expenses.

In order to promote self-help, recipients who are not expected to seek work as a condition of receiving public assistance may retain their marginal earnings up to $150 a month. Any earnings exceeding $250 a month are taken into account in assessing entitlement for public assistance. At the end of 1979, the number of active public assistance cases was 46,114 compared with 47,150 in 1978. Expenditure on public assistance for the 1978-9 financial year totalled $191.2 million.

The Special Needs Allowance Scheme provides a cash allowance on top of the public assistance payment to the severely disabled or elderly infirm aged 70 years or more. On September 1, 1979, the disability allowance was increased to $230 a month and the old age allowance to $115 a month. These allowances are non-means-tested and non-contribu- tory. The number of people drawing disability and old age allowances at the end of the year was 166,321 compared with 149,189 at the end of 1978. Expenditure in the 1978-9 financial year totalled $157.7 million, an increase of $57.9 million over the previous year. To prevent abuse, a special team investigates suspected fraudulent and overpayment cases. During 1979, the team completed the investigation of 153 cases, some of which were referred to the Attorney General for possible prosecution.

The Social Security Appeal Board, which considers individual appeals against the deci- sions of the Director of Social Welfare regarding social security payments, heard a total of 42 cases during the year. Of these, 28 were public assistance cases, 11 were special needs allowance cases, and three were related to the new Traffic Accident Victims Assistance Scheme.

The Criminal and Law Enforcement Injuries Compensation Scheme provides ex-gratia compensation to those injured in crimes of violence or through the action of law enforce- ment 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 1978-9 financial year, payments totalling $0.9 million were made, compared with $1.4 million in 1977-8.

In May, 1979, the Traffic Accident Victims Assistance Scheme came into operation. The scheme is administered by the Social Welfare Department, and is financed by levies on vehicle and driving licences and from general revenue. An advisory committee, whose members are appointed by the Governor, gives advice and guidance on the operation of the scheme and on the administration of the Traffic Accident Victims Assistance Fund. Under the scheme, traffic accident victims or their dependants are given cash grants regard- less of whether the victim was at fault in causing the accident. Such payments do not affect the applicant's right to make other claims for legal damages but, if he subsequently receives damages or other compensation because of the accident, he will be required to refund the payments received from the scheme. During the year, a total of $7.1 million was paid to 2,763 beneficiaries.

Two important social security proposals in the White Paper on Social Welfare into the 1980s will be introduced in 1980. They are the disability supplement under the Public Assistance Scheme and the extension of the non-means-tested disability allowance to the profoundly deaf under the Special Needs Allowance Scheme.

Rehabilitating the Disabled

The Social Welfare Department and voluntary agencies provide social and vocational re- habilitation services to enable disabled people to develop their capabilities to the fullest

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extent, and to help them integrate into the community. In 1979, some 4,400 disabled people received training in different types of training centres and worked in sheltered workshops. Residential care facilities were provided in some of these centres for disabled people who were either homeless or could not be looked after adequately by their families.

       Rehabilitation of the disabled is one of the government's prime concerns in the social welfare field. Through subventions, the government has encouraged selected voluntary agencies to provide a wide range of facilities for disabled people of different age groups. As a result, a number of new facilities opened or were in the final stages of preparation during 1979. For the more severely disabled children, 147 places are being made available in four special child care centres run by the Spastics Association of Hong Kong, Caritas - Hong Kong, the Hong Kong Society for the Deaf, and Po Leung Kuk. During the year, mildly disabled children were integrated into ordinary child care centres as far as possible, with an additional 60 places being made available. Other projects proceeding during 1979 were two residential care centres providing a total of 55 places, managed by the Spastics Association of Hong Kong and Hong Kong Red Cross; and four sheltered workshops providing 245 places. Two of the four sheltered workshops are being run by the Spastics Association of Hong Kong, with the other two by the New Life Psychiatric Rehabilitation Association and the Hong Kong Federation of Handicapped Youth.

In line with its policy of encouraging sport and recreation among Hong Kong's com- munity in general, the government has also been placing emphasis on the provision of recreational facilities for disabled people. Two clubs for the deaf and the Lady MacLehose Centre, which is run by the Hong Kong Physically Handicapped and Able-Bodied Associa- tion, have been opened. The Lady MacLehose Centre, which was built with a $10 million donation from the Royal Hong Kong Jockey Club, offers disabled people some of the best facilities for sport and recreation in Southeast Asia.

Three pilot schemes, which are receiving financial support from the Lotteries Fund, were started in 1979 to provide new services for the disabled on an experimental basis. Two of these projects, operated by the Heep Hong Club for Handicapped Children and Caritas - Hong Kong, offer counselling and guidance services for parents who have a disabled child. The third project, a home run by the Hong Kong Society of Homes for the Handicapped, provides residential and day care services for 100 severely mentally handicapped adults.

      Another significant achievement has been the development of the Rehabus Scheme, operated by the Hong Kong Society for Rehabilitation and financed by the Community Chest and the Royal Hong Kong Jockey Club. Under the scheme, special door-to-door transport is provided for disabled people who are unable, or find it very difficult, to use public transport. Transport is available to go to work, school, medical centres or places of recreation. The scheme now has 10 minibuses which have a total capacity of 90 passengers.

Group and Community Work

The Social Welfare Department operates group and community work services through a network of seven community centres, eight housing estate community centres and 11 com- munity halls. Neighbourhood welfare services provided in these buildings include libraries, day nurseries, vocational training, family counselling, interest groups, social clubs for different age groups and social activities. Sixteen community and youth officers are responsible for promoting, developing and co-ordinating community and youth services in their districts. They also assist in the implementation of territory-wide programmes such as the Summer Youth Programme and the Chinese New Year Programme, organised by the Central Co-ordinating Committee for Youth Recreation. Also operating within the

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department are four rural mobile service teams which provide cultural, group and com- munity work services in remote villages in the New Territories.

     During 1979 the department, in conjunction with voluntary agencies, continued to organise family life education programmes with the general aim of preserving and streng- thening the family as a unit. In support of the International Year of the Child, a family life education publicity campaign with the theme 'The Child and the Family' was launched.

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 outreaching social work programmes, which aim at providing counselling and other social work services for young people at risk. Agencies also carry out community development projects at grass-roots level in areas which do not, as yet, have adequate social welfare services.

More Care for the Elderly

In 1979, the number of people in Hong Kong aged 60 years and above was 474,000. This is approximately 9.5 per cent of the population, compared with 152,000 or 4.8 per cent of the population in 1961.

      In the White Paper on Social Welfare into the 1980s, the government announced that it was giving priority to the improvement of services and homes for the elderly. Proposals include the expansion of care-and-attention homes which give personal and nursing care, more homes for the aged, increased public housing including hostel-type accommodation, and upgraded health and community services.

     At care-and-attention homes, which provide special care for old people, an additional 1,400 places will be available by 1982-3. The long-term target is to provide four places for every 1,000 of the population aged 60 and above. The government is considering playing a more active role in the provision of care-and-attention homes - a service which previously has been offered only by voluntary agencies. In addition, an extra 1,600 places in homes for the aged are envisaged in the next three years. Plans are also proceeding to provide more housing in Housing Authority estates, including 5,000 places in hostel-type accommodation by 1987-8.

The government's policy is that efforts should be made to make it easier for old people to continue their life within their family or community. In accordance with this policy, com- munity support services were expanded in 1979. Home help services for the elderly were provided in 14 centres, and the number of home helpers increased from 20 in 1978 to 95 in 1979. By the end of the year, four multi-service centres were in existence, serving as focal points for the provision of such services as home help, meals, laundry, visiting services, community education and recreational activities. Two experimental day care centres were established during the year, serving 60 people. The number of social centres providing recreational activities for elderly people increased from 13 to 40.

Residential facilities were expanded for those old people incapable of independent living. An additional 390 places in hostels and 180 places in homes for the aged were provided in 1979, making a total number of 4,230 places in 37 institutions.

Family Welfare Services

Through its network of 17 family service centres, the Social Welfare Department provides a wide range of services designed to help individuals and families. They include counselling on family problems and inter-personal relationships; taking action in cases of child neglect

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      and ill-treatment; and assisting when difficulties arise as a result of mental or physical disabilities, old age, unemployment, desertion, illness or 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, housing, employment, financial assist- ance, legal advice, medical attention, home help, and placements in appropriate institutions for vulnerable groups. The number of families and individuals assisted in 1979 totalled 18,760.

      The department also exercises statutory responsibilities under a number of ordinances, such as the Protection of Women and Juveniles Ordinance, the Guardianship of Minors Ordinance, the Marriage Ordinance and the Offences Against the Person Ordinance.

      The School Social Work Service, one of the projects marked for expansion in the White Paper on Social Welfare into the 1980s, is designed to help school pupils whose academic, social or emotional development is in jeopardy. Its objectives are to assist students in making the maximum use of their educational opportunities, to develop their potential to the full, and to prepare them for responsible adult life. The service is provided jointly by the Social Welfare Department, the Education Department and voluntary agencies. Student guidance officers of the Education Department - former teachers who are given in-service social work training -- provide these services in primary schools with the support of profes- sional social workers from the Social Welfare Department and voluntary agencies.

      During the 1978-9 school year, 78 student guidance officers provided the School Social Work Service to 356 primary schools with a student population of 226,315. As well, volun- tary agencies gave a direct service to 55 primary schools. In secondary schools, the service is provided by professional social workers from the Social Welfare Department and volun- tary agencies. During the 1978-9 school year, the service was provided in 126 secondary schools. The White Paper on Social Welfare into the 1980s proposes that the service be expanded to cover all schools by 1981.

      Residential care for children, who are temporarily forced to live away from their own homes because of their own or family problems, is provided mainly through the voluntary sector. The Social Welfare Department operates a children's reception centre which pro- vides temporary shelter and care for normal and disabled children up to eight years who are abandoned, found wandering, or are otherwise in need of care and protection.

      The Adoption Unit of the Social Welfare Department arranges legal adoptions for children locally. With the assistance of Caritas and the International Social Service, the department also is able to arrange overseas adoption in accordance with the Adoption Ordinance.

Child Care

All child care centres are subject to registration, inspection and control under the Child Care Centres Ordinance and Regulations. The prime objective of child care centres is to provide full day care and supervision for children under the age of six years, in accordance with the standards laid down in the legislation. During the year, government subventions were made through the Social Welfare Department to child care centres providing 10,999 places. These were for children from low-income families whose parents were unable to look after them during the day. A residential service was also provided for some acute

cases.

During 1979, a review was carried out of the existing facilities for the care and education of children below primary school age. A Green Paper outlining the government's proposals was being compiled and it will be published in 1980.

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Probation and Corrections

SOCIAL WELFARE

The Social Welfare Department's probation service, which is governed by the Probation of Offenders Ordinance and Regulations, has 10 probation offices serving the District, Supreme and Magistrates' Courts. Probation officers undertake statutory supervision of probation- ers, assist them in job and school placements, encourage their participation in social and recreational activities, and provide them with family and group counselling. Probation officers also conduct inquiries into the background of offenders, in order to assist in the determination or review of sentences in the courts or in connection with petitions.

      To promote greater community involvement in rehabilitating probationers, a voluntary scheme was launched in 1976. Under this 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. The scheme was expanded in 1979 and now has 100 volunteers.

Residential training is designed to remove young offenders from their former surround- ings and associates, and to provide academic, prevocational, social and recreational training so that upon discharge they are better equipped to live as law-abiding citizens. The Social Welfare Department operates five correctional institutions. The Castle Peak Boys' Home and the O Pui Shan Boys' Home are reformatory schools catering for juvenile offenders aged between seven and 18. In these schools, relatively long-term treatment programmes are designed for the residents and after-care services are provided upon discharge. The Kwun Tong Hostel provides residential facilities for male probationers aged between 16 and 21 who have outside employment during the day. The Ma Tau Wai Girls' Home and the Begonia Road Boys' Home are multi-functional residential institutions for short-term care and training. These two homes serve as places of detention for those held on remand before being dealt with by the courts, as probation homes for probationers in need of residential treatment, and as places of refuge for juveniles considered by the courts to be in need of care and protection.

      Apart from the services provided by the Social Welfare Department, voluntary agencies such as the Discharged Prisoners' Aid Society, the Lok Heep Club of Caritas - Hong Kong, the Society of Boys' Centres, the Rennie's Mill Student Aid Project, the Hong Kong Juvenile Care Centre, the Pelletier Hall and the Marycove Centre make significant contributions to the correctional services.

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 articles. 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 15,876 registered victims involved in 122 disasters. Payments made from the Emer- gency Relief Fund amounted to $2.9 million for the 1978-9 financial year.

      Relief was also given to Vietnamese refugees immediately after their arrival in Hong Kong. The exceedingly large numbers of refugees arriving daily placed a strain on the Social Welfare Department's resources. At the height of the influx, up to 41,000 hot meals, 54,000 dry rations and many other essentials were being provided daily.

Training of Social Workers

The major function of the Training Section of the Social Welfare Department is to pro- vide in-service training in social work, including refresher courses and staff development

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115

      programmes, to social welfare workers employed by the government and voluntary agencies. A total of 46 courses, seminars and workshops were organised during the year.

       In addition, the 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 as being a training ground for nursery and creche workers.

       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 the Hong Kong Shue Yan College. The number of students supervised and placed in the Social Welfare Depart- ment in 1979 was 128.

       To assist young people who wish to obtain social work training, a number of bursaries and scholarships are available from the Social Work Training Fund, the Hongkong and Shanghai Banking Corporation, the government and other private donors.

URBAN COUNCIL LIBRARIES

11

Public Order

m2

THE YEAR 1979 was an unusually busy one for Hong Kong's law enforcement agencies as they swung into action to surmount new obstacles and to combat a wide range of problems. The Royal Hong Kong Police Force has the chief responsibility for maintaining law and order throughout the territory. However, major contributions towards the general welfare and safety of the community are also made by the Fire Services Department, the Prisons Department, the Independent Commission Against Corruption (ICAC) and the Customs and Excise Service.

Police Force

The Royal Hong Kong Police Force worked under great pressure in 1979 when it was necessary to redeploy some of its resources to cope with the influx of Vietnamese refugees and illegal immigrants from China.

      Most Vietnamese refugees arriving in Hong Kong came in small, overcrowded and dilapidated fishing junks; others were brought by ocean-going vessels. A sinister aspect of this development was the organisation by racketeers of ocean-going freighters which picked up grossly excessive numbers of refugees in or near Vietnamese waters. At the same time, illegal immigrants from China were also attempting to cross into Hong Kong. Nearly 2,000 illegal immigrants were arrested in January and these numbers swelled to 14,430 in May and 11,884 in June. To counter this problem, additional police were deployed to the perimeter of Hong Kong and a special anti-illegal immigration control centre was set up in police headquarters. British military forces in Hong Kong were called upon to provide increased support.

      One of the police force's major projects during the year was the establishment and equip- ping of the new Mass Transit Railway Division. The division has a communications system which encompasses the entire railway, including moving trains, and interfaces with the force's communications network. Plans are in hand to expand and consolidate radio coverage when the Mass Transit Railway is extended to Tsuen Wan, and to enlarge the command and control centre. The division, manned by some 150 police officers and civilians, is part of Kowloon Police District.

      In the New Territories District, the opening of Sheung Kwai Chung Sub-Divisional Station in 1978 and Tuen Mun Divisional Station in 1979 enabled an improved police service to be provided in these areas. In addition, Sha Tin and Frontier Divisional Headquarters at Fanling moved to new and more efficient buildings during the year.

      During 1979, an extensive building programme was approved to expand facilities at the Police Training School at Aberdeen to cater for increased recruit and in-service training. In an effort to meet the need for housing by junior married police officers, 800 quarters were completed at Sha Tin and Ho Man Tin.

To keep abreast with residential development in Hong Kong, 13 new police reporting

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centres were opened in urban and rural areas, five of them operating as neighbourhood policing units. There are now 119 reporting centres, of which 46 operate as neighbourhood units.

The force continued to emphasise the need to promote good relations between the police and the public. During the year, the restructuring and expansion of the Police Public Rela- tions Wing continued: the wing is divided into two bureaus - one disseminates information on the force and its activities to the news media and the other co-ordinates all community relations efforts.

Other notable events for the force in 1979 were the visits of His Royal Highness the Prince of Wales in March and the Vice-President of the United States, Mr Walter Mondale, in September.

In July, PC Ho Hing-chuen of Kowloon City Division attended Buckingham Palace where Her Majesty the Queen awarded him the Queen's Gallantry Medal in recognition of his brave conduct during a bank robbery in Kowloon City in November, 1977.

       By the end of 1979, the police force's establishment was 20,691, an increase of 1,627 over 1978. In addition, the force had an establishment of 4,089 civilians, representing 16.5 per cent of the overall establishment. A recruitment drive was maintained and 8,533 applica- tions for constable appointment and 2,137 for inspectorate appointment were received. A total of 200 inspectors, of whom 66 were from overseas, were taken on strength.

Some of the increases in establishment had the specific support of the visiting Home Office Inspector of Constabulary, who returned during the year to review the progress made in strengthening the organisation of the force. Police and civilian posts in management services, staff relations, and welfare were filled and other posts were created to reinforce manage- ment and administration.

Crime

      During 1979, 62,346 crimes (excluding blackmail and associated thefts) were reported to the police compared with 52,387 in 1978. Of these 32,362 were detected, giving a detection rate of 51.9 per cent compared with 56.3 per cent in the previous year.

A total of 23,374 people were arrested compared with 21,533 in 1978. Adults prosecuted totalled 20,733 and juveniles (under 16 years) numbered 2,641, a four per cent and 65.4 per cent increase, respectively, over the previous year.

In July an increase was noted in robberies, thefts, and related offences which could be described as 'quick cash' crimes. There was a correlation between these crimes and a shortage of narcotics on the street which caused heroin prices to increase substantially. This shortage arose from a combination of circumstances: a drought in the 'Golden Triangle', where the boundaries of Burma, Laos and Thailand meet, caused a drop in opium production; increased anti-narcotics action by the Thai authorities; and the continued efforts of the police force and customs service in Hong Kong.

Homicide Bureau

The charter of the Homicide Bureau is the investigation of all homicides in which the alleged offenders have not been identified within 24 hours of the offence being reported. In 1979 there were 67 homicides, compared with 63 in 1978, of which the Homicide Bureau investigated 12.

Criminal Intelligence Bureau

The Criminal Intelligence Bureau serves as the central agency for the collation and dissemination of criminal intelligence throughout the force, as well as having its own in-

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vestigative capability. In 1979, there was a great improvement in the gathering and assess- ment of intelligence, despite a significant proportion of the bureau's personnel being diverted to problems caused by the influx of refugees from Vietnam and illegal immigrants from China.

Organised Crime Bureau

During the year, the Triad Society Bureau and the Special Crimes Bureau were amalgamated under the control of a senior superintendent and were renamed divisions, although their respective charters remained unchanged. The function of the Triad Society Division is the investigation of high-level triad personalities, the penetration of organised gangs, and the neutralisation of crime syndicates. During the year 575 people were arrested for triad- related offences, 44 were prosecuted for blackmail and 16 charges of conspiracy were brought. Gang activity throughout the year showed an increase with 775 gang attacks and 116 gang fights being reported.

The Special Crimes Division is charged with the responsibility of investigating crimes in which property valued at more than $250,000 has been stolen, in which a genuine firearm has been used, or in which unusual brutality or ingenuity has been displayed. In 1979, the division undertook 436 investigations which resulted in 69 people being charged and seven firearms being seized; property to the value of $936,400 was recovered.

Commercial Crime Bureau

During 1979, the Commercial Crime Bureau's Company Fraud Section completed a num- ber of complex and protracted investigations into several large-scale company frauds arising from the 1972-3 stock market boom. Inquiries into other complicated fraud cases continued and a number of new investigations were launched.

Investigation of frauds involving letters of credit and dishonoured cheques continued to be the major task of the General Fraud Section. Among the cases handled during the year was one large-scale maritime insurance fraud involving the deliberate sinking of cargo vessels.

Successful action was taken against possessors and producers of counterfeit currency and valuable securities. In one case, seven men were arrested for possessing and uttering counterfeit United States banknotes valued at US$183,220. Because of its nature, the counterfeiting of currency has wide international implications.

Narcotics Bureau

Action in combating narcotics abuse was effective both in the field of enforcement and in the treatment of addicts in 1979. The police and the Customs and Excise Service frustrated the efforts of a number of groups importing and distributing heroin. These efforts, together with factors operating outside Hong Kong, led to a general increase in the price of heroin. Traffickers continued their attempts to import a relatively pure heroin base in small quantities through Hong Kong International Airport, Kai Tak. In June, it became apparent that there was a severe shortage of heroin in Hong Kong which resulted in the price of drugs at street-level increasing fourfold from January to August. At the same time, the quality and the general purity of the drug dropped from 28 per cent to 18 per cent purity, causing users to turn to methadone treatment centres for help. Attendance rose from approximately 5,450 at the end of May to 8,000 in August - an increase of 45 per cent. It is considered that the shortage of heroin, caused by the recent poor opium crop in the 'Golden Triangle' and increased pressure by law enforcement agencies abroad and at Kai

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Tak Airport, may be temporary if traffickers are willing to accept high risks to obtain the huge profits obtainable from this illicit trade.

      The abuse of cannabis increased in 1979, particularly among Hong Kong's expatriate population. While this problem is minor compared with heroin abuse, it is disturbing to note that the drug is now imported into Hong Kong in bulk and then sold to users. In the past, cannabis users imported the drug for their personal use. Abuse of LSD and PCP is not known to exist in Hong Kong.

Criminal Records Bureau

      The Criminal Records Bureau was faced with an increased workload in 1979 which, together with upkeep, resulted in 750,000 searches, the creation of more than 30,000 new criminal records files and the administration of more than 600,000 case files.

      Preparation for computerisation, still awaiting financial approval, and the increased use of microfilm proceeded as part of a general modernisation programme. Work included a survey of the requirements of duplicating all film and the establishment of twin microfilm libraries to protect against the risk of fire.

To maintain maximum efficiency in the light of increasing demands on the services of the bureau, a complete review of staff, equipment and accommodation was proceeding.

Ballistics and Firearms Investigation Bureau

The Ballistics and Firearms Investigation Bureau comprises two ballistics officers, two chief inspector trainees and one sergeant. The bulk of its work involves the technical investiga- tion of firearms and inquiring into firearm-related offences; the testing of new types of firearms; and the examination of bullet-resistant materials.

Officers of the bureau also attend the scenes of robberies and burglaries where valuable property or large amounts of cash have been taken. They examine locks, safes and other security equipment, try to establish methods of entry to premises, and also scrutinise tool marks for comparison with those found at other scenes of crime.

      The bureau is equipped with sophisticated microscopic and photographic equipment which it uses to examine fired bullets, cartridge cases and tool marks, and it prepares photo- graphs of comparisons for production as exhibits in court cases.

Identification Bureau

The Identification Bureau provides an efficient service in relation to fingerprint technology and forensic photography, thus playing an important role in crime investigation and detec- tion. To meet an increased workload and for operational convenience, an additional scenes of crime/photographic unit was set up at the new Frontier Divisional Headquarters in Fanling.

The Scenes of Crime Section attended 12,163 crime scenes to search for fingerprints in 1979. Of the 8,397 fingerprint impressions found, 334 people were identified in connection with 402 cases.

Crime Prevention Bureau

The Crime Prevention Bureau is responsible for research into crime prevention methods and the dissemination of advice, upon request, to government departments, private organisa- tions and members of the public. In conjunction with the Police Public Relations Wing and the Government Information Services, the bureau publicises advice and information through various media. From time to time, it organises lectures and crime prevention

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exhibitions. It also maintains a permanent display of modern security hardware at police headquarters.

Interpol Bureau

     Hong Kong is a member of the International Criminal Police Organisation (Interpol) and has a bureau operating within the Criminal Investigation Department headquarters. Liaison with other police forces is maintained and the bureau regularly assists law enforcement officers from other countries visiting Hong Kong on inquiries. Two Hong Kong police officers are seconded to the Interpol General Secretariat in Paris and another officer is attached to the British Embassy in Bangkok.

Detective Training Wing

     The Criminal Investigation Department Training School holds 12-week courses in which stress is placed upon the practical application of criminal law and the latest investigative techniques. Emphasis during the year was on the development of investigative skills in junior officers while retaining the investigation team concept. A total of 526 officers ranging from senior inspector to constable, including women, completed training. Officers from the Immigration Department, the Customs and Excise Service, and police officers from Malaysia and the Philippines also attended.

Airport Division

     During the year, significant new structural developments took place to improve and expand the facilities at Hong Kong International Airport. This, in turn, placed a greater burden upon the police force in the maintenance of general security and day-to-day policing. Passenger traffic during the year exceeded 6.2 million and a throughput of 260,000 tonnes of air freight was recorded. Senior police officers visited several countries in order to exchange views, take part in security conferences and generally improve the important liaison which already exists in the field of aviation security.

Emergency Units

     Police emergency units cover three of Hong Kong's four territorial districts - Hong Kong Island, Kowloon and the New Territories, with Marine District being excluded. The units provide a fast, mobile emergency service and maintain a police presence on the ground, in addition to the normal beat patrol system. As well as mobile patrols, the units carry out regular anti-crime foot and high-rise building patrols, road blocks, traffic enforcement duties, cash and prisoner escorts, and crowd control duties.

Marine Police

The year 1979 proved to be the busiest one for Marine District since the last mass exodus of illegal immigrants from China in 1962. This time the illegal immigrant problem was compounded by increasing numbers of Vietnamese refugees who arrived mainly in small craft throughout the year. The resources of the marine police, both in terms of launches and manpower, were stretched to the limit; the fleet was increased by four launches on loan from other government departments while added support was given by Royal Navy units.

      The numbers of people attempting to illegally enter Hong Kong, as was to be expected, gave rise to criminal syndicates operating primarily to bring illegal Chinese immigrants into

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     Hong Kong through Macau. To prevent this, police and security forces were deployed in various activities.

In June, a contract was signed by the Hong Kong Government for the building locally of nine 25-metre patrol launches of Dutch design. These launches will be delivered between February and September, 1980, and will boost the present police fleet to 56 vessels. A com- prehensive recruiting campaign was in hand, coupled with an intensified training programme to man these additional launches.

      Although marine police were heavily committed in regard to illegal immigration and Vietnamese refugee problems, normal watch and ward duties were not forgotten. Despite the increasing numbers of people from the urban areas visiting outlying islands and beaches, crime remained low, being 0.5 per cent of the total for Hong Kong. It was mainly confined to petty theft, breaking into unoccupied weekend homes and minor assaults.

Communications and Transport

The Communications and Transport Branch plans, installs and maintains sophisticated telecommunications 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 1,406 vehicles consisting of 951 four-wheel vehicles and 455 motorcycles, co-ordinates the supply of petrol and oil and the purchase of ancillary equipment, and trains its own drivers at the Police Driving School.

A new air-to-ground radio network, which gives territory-wide coverage, began operating in 1979. The system enables police launches and commanders of field operations to com- municate directly with military or Royal Hong Kong Auxiliary Air Force helicopters.

The beat radio system continued to show its worth in 1979 and more radios were purchased. 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. This enables an immediate response to be made to any reported crime, incident or traffic problem.

Community Relations

Police community relations officers and the Junior Police Call Scheme play an important part in promoting good relations between the police and the public.

Junior Police Call, which has a membership of almost 250,000 young people, chose 'community service' as its theme for the year. Numerous activities were organised, ranging from participating in large-scale fund-raising campaigns for charity to carrying out domestic chores for the aged and the disabled.

      The Good Citizen Award Scheme, sponsored by the police and the Hong Kong General Chamber of Commerce, formed a vital part of the 1979 Community Against Crime Campaign. The chamber of commerce raised more than $1 million in an appeal to support the running of the scheme.

      The Community Against Crime Campaign was launched to enlist further public support in the war against crime. The campaign laid particular stress on the need for every member of the public to assist in reporting crime. This was particularly relevant in the light of the apathetic reporting rate reflected in a Crime Victimisation Survey conducted during the year. The survey, organised by the Census and Statistics Department, was made public in October.

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In addition to the established weekly Police Report programmes shown on television that seek information which might help to solve outstanding crimes, a Chinese television drama series of 13 half-hour episodes was produced. The series, depicting various aspects of a police constable's daily life and work, received acclaim for its factual presentation.

The 1979 community relations programme included the fourth Young People's Help the Police Competition, aimed at fostering good relationships between the younger generation and the police. The four winners will visit New Zealand for two weeks in early 1980 as guests of the New Zealand Police Force.

Complaints Against Police Office

Members of the public are able to register complaints about police procedures or mis- conduct through the Complaints Against Police Office which has premises on both sides of Victoria Harbour. The office is responsible for the investigation of all allegations of mis- conduct by police officers including those which involve criminal offences.

      The UMELCO Police Complaints Group, set up in 1977, reviews the handling of these complaints. This group comprises six unofficial members of the Executive and Legislative Councils, the Attorney General and two senior police officers, with the administrative secretary of the UMELCO Office and a police officer serving as joint secretaries.

Traffic

The number of vehicles registered in Hong Kong rose to 262,000 in 1979. This gives a traffic density of 228 vehicles for each of the 1,146 kilometres of road in the territory, resulting in heavy congestion and associated parking and control problems.

The number of traffic accidents recorded in 1979 totalled 15,196, with 458 people killed and 19,480 injured. This was an 0.5 per cent decrease against the number of accidents recorded in 1978. Greater emphasis is being placed on accident reduction through research and identifying the underlying causes of accidents so that steps can be taken to make the roads safer.

      The opening of the first stage of the Mass Transit Railway marked the culmination of more than three years of work in the field of traffic management. This involved the planning of hundreds of traffic diversions and the continuous monitoring of construction work.

      The computer-based Fixed Penalty (Traffic Contraventions) Ordinance was revised in July. While the basic system of traffic enforcement remained the same, certain modifica- tions were introduced including scheduled defences, and provision for issuing distress warrants to deal with defaulters with large arrears in debts, without the prerequisite of seizing their vehicles. Selective action under this ordinance continued against the more serious obstructions caused by motor vehicles on main roads and indiscriminate roadside parking and stopping. Because of the ever-increasing number of vehicles on the roads, and the consequent greater pressure on scarce parking space, it was found necessary, in the interests of road safety and to keep traffic flowing, to issue 1,175,273 fixed penalty parking tickets. This was an increase of 19.5 per cent over 1978. Action was taken to recover un- paid fixed penalty debts, resulting in the seizure of 13 vehicles in 1979. Forty vehicles were auctioned to meet outstanding debts during the year.

       The number of moving traffic offences reported during the year by fixed penalty tickets under the computer-based Fixed Penalty (Criminal Proceedings) Ordinance was 244,671 - a 14.3 per cent increase over the previous year's total.

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      The government mounted two significant road safety publicity campaigns during the year. One was aimed at educating pedestrians how to use the roads properly and the second was concerned with safe driving and proper car maintenance.

All traffic figures are provisional figures only.

Training

The Royal Hong Kong Police Force's Training Wing expanded during the year, with an examinations unit, a manuals unit and a police education and language unit being intro- duced, together with the resumption of its full local recruitment function.

Recruiting remained a priority and a vigorous campaign was launched highlighting the activity and variety to be found in a police career. The target is to enrol 2,310 recruits at constable and inspectorate level by the end of the 1979-80 financial year.

      The police education and language unit, established in May, eventually will be responsible for all language courses. In the past year, 192 junior police officers attended full-time English language courses for six months. In addition, 12 places a year have been made available for police officers to attend the diploma course in Japanese organised by the Hong Kong Polytechnic. An innovation was the scheme whereby selected chief inspectors were given the opportunity of attending an English language training course in the United Kingdom, followed by working attachments to provincial police forces there.

With the establishment of the examinations unit, the control and administration of all police professional examinations was centralised. The promotion-qualifying examination for constable to sergeant held in September attracted 4,500 applicants - an increase of more than 2,000 candidates compared with previous years.

      Since it was formed in 1973, the capacity of the Police Cadet School has increased from 150 to 750. Of the 970 cadets who have graduated from the school since its inception, 835 joined the police, 31 entered the Fire Services Department, 50 opted for the Customs and Excise Service and 19 joined the Prisons Department.

The two sites on which the school stands at Fan Gardens, Fanling, and Dodwell's Ridge, Sheung Shui, are temporary. A purpose-built school is expected to be available for occupa- tion in 1983. The permanent school will be located at Shuen Wan near Plover Cove and will cater for some 1,000 students.

The Police Training School, Aberdeen, provides a 20-week basic training course for constables and a 36-week course for recruit inspectors including overseas officers. Instruc- tion covers criminal law, police procedures, leadership training, court procedure, physical training, first aid, weapon training and drill. Overseas officers also attend an eight-week course in colloquial Cantonese. During the year a total of 179 inspectors and 1,425 con- stables, both men and women, graduated from the school.

In addition to basic training, the school also runs courses for serving police constables and newly-promoted non-commissioned officers to update their knowledge on new legisla- tion and to prepare officers for higher rank. Courses for traffic wardens together with specialised traffic courses for serving officers are also run.

A revised district continuation training scheme operating from centres in each of Hong Kong's four police districts was introduced. This scheme provides additional training for constables in their first two years of service after passing out from the Police Training School and requires each constable to attend on two consecutive days each month. The scheme supplements the constables' practical knowledge and also prepares them for promo- tion examinations, which they may take after three years' service.

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Police Tactical Unit At the Police Tactical Unit at Fanling in the New Territories, 1,471 officers from the rank of constable to superintendent underwent training in all aspects of crowd control and in- ternal security in 1979. In addition, 185 women police officers were instructed in crowd control techniques.

Auxiliary Police

The Royal Hong Kong Auxiliary Police Force, which has an establishment of 5,000, recruits volunteers from all walks of life. 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 1979, a daily average of 796 auxiliary volunteers turned out for constabulary duties. Owing to the influx of Vietnamese refugees and illegal immigrants from China, limited mobilisation took place in July. This provided a further 250 auxiliary officers daily in support of the regular force.

Efficiency is maintained by regular in-service training at the auxiliary police headquarters on Hong Kong Island and at the various auxiliary unit bases.

Customs and Excise Service

The Customs and Excise Service is a disciplined force whose three major responsibilities are revenue protection, anti-narcotics operations and import and export controls. Its establish- ment is some 1,500 officers of all ranks supported by 130 civilian staff. The Director of Trade Industry and Customs is the Commissioner of the Customs and Excise Service.

Although Hong Kong is a free port, there are four dutiable commodities - alcoholic liquors, tobacco, methyl alcohol, and hydrocarbon oils which are used as fuel for motor vehicles and aircraft. The service is responsible for collecting and protecting revenue derived from dutiable commodities. The Dutiable Commodities Ordinance, which imposes controls over the import, export, manufacture, sale and storage of these commodities, is administered by the service. Some $830 million in revenue was collected on dutiable commodities in the 1978-9 financial year, compared with $733 million in 1977-8. Seizures and confiscations involved 5,601 kilograms of tobacco, 20,701 litres of liquor and 18,503 litres of diesel oil. A total of 1,084 people were arrested or summonsed and fines amounting to $274,196 were imposed by the courts.

      The service is also responsible for administering controls over prohibited or restricted articles under the Import and Export Ordinance and its subsidiary legislation for health and security reasons, and to enable Hong Kong to fulfil certain international obligations.

Anti-Narcotics Operations

The Customs and Excise Service plays an important role in 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 Acetylat- ing Substances (Control) Ordinance. More than half of the service is committed to anti- narcotics activities. The service has established close co-operation with its overseas counterparts and other law enforcement agencies in the fight against the abuse of narcotic drugs. 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 205 kilograms of dangerous drugs including 76.6 kilograms of heroin and 2.3 kilograms of heroin base and 1.6 litres

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AUXILIARY SERVICES

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Serving the community

Hong Kong's five auxiliary services, com- prising more than 14,000 volunteers, make a valuable contribution to community life and the territory's general well-being. In 1979, the auxiliary services were called upon to undertake special tasks because of the influx of large numbers of Vietnamese refugees and illegal immigrants from China. The Royal Hong Kong Auxiliary Police Force supports the regular force in its constabulary duties with an average daily turnout of 800 men and women. During the year, up to 250 additional auxiliary police were called out each day to deal with illegal immigrants. In June, the volunteer soldiers of the Royal Hong Kong Regiment were mobilised in a limited call out to give additional support to security forces in the interception of illegal immigrants. Their functions included border patrols, mann- ing road check-points and acting as guides and interpreters. The Civil Aid Services provides many varied services ranging from crowd control and rescue operations to the deployment of trained personnel in emergency situations. It mounted a large-scale operation for the daily distribution of food to Vietnamese refugees and assisted in the management of refugee camps. The Auxiliary Medical Service, which is ready to supplement medical and ambulance services in any emergency, is involved in community pro- jects and provides general medical care. It supplied a medical and ambulance service for Vietnamese refugees. The Royal Hong Kong Auxiliary Air Force, operating heli- copters and light aircraft, provides a multitude of flying services, including the evacuation of casualties from remote areas. In 1979, it conducted surveillance flights to look for Vietnamese refugees and illegal immigrants.

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Queues of Vietnamese refugees form to receive their daily share of dry rations which are being distributed by members of the Civil Aid Services.

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      of acetic anhydride. A total of 850 people were arrested for narcotics offences. Of these, 673 were charged with simple possession or with smoking dangerous drugs. The illicit market value of the narcotics and acetic anhydride seized was estimated at more than $24 million.

Copyright Protection

The Customs and Excise Service is the sole agency for enforcement of the Copyright Ordin- ance concerning the manufacture and distribution of unauthorised copies of literary, dramatic and musical works. Its outstanding success in this field has led to its guidance being sought by other law enforcement agencies in the region.

      During the year, the copyright unit handled 42 cases connected with copyright infringe- ment resulting in the seizure of 14 tape recorders, 505 records, 4,645 pirated tapes, and 10,439 copies of pirated books. A total of 31 people were convicted of various copyright offences and fines amounting to $97,815 were imposed by the courts.

Training

The Customs and Excise Training School at Tai Lam Chung in the New Territories is equipped with a wide range of facilities including a gymnasium, a swimming pool, an obstacle training course and a pistol range. It also has a museum housing a variety of in- genious smuggling devices, narcotics paraphernalia and distilling apparatus.

       Inspectorate recruits undergo induction training for 28 weeks with a thorough grounding in all areas of the service's responsibilities. Induction training for recruit customs officers lasts 10 weeks. The school also runs refresher and supervisory development courses to update officers in law and working procedure, and to develop leadership and supervisory management qualities. Specialist courses for prosecuting officers, ship rummagers and investigators are also organised with officers of other participating law enforcement agencies. During the year, 116 recruits and 270 serving officers received training at the school.

Independent Commission Against Corruption

The Independent Commission Against Corruption (ICAC), set up by law 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 fighting corruption. In discharging these functions, the Commissioner of the ICAC answers directly to the Governor: the ICAC engages its own staff and is financed from general revenue.

       The Advisory Committee on Corruption, consisting of leading citizens and senior government officials, advises the commissioner on policy matters affecting the ICAC's staffing, financial estimates, administration and any other aspect of its work. Each of the three functional branches of the commission - operations, corruption prevention and community relations has an advisory committee made up of members drawn from various sectors of the community. An ICAC Complaints Committee, comprising seven unofficial members of the Executive and Legislative Councils and a law officer, monitors complaints against the commission and advises the commissioner on any action considered necessary.

       The establishment of the commission is 1,088 posts, of which 630 are in operations, 78 in corruption prevention, 274 in community relations and 106 in administration. At the end of the year, 925 were filled, of which 568 were in operations, 59 in corruption prevention, 212 in community relations and 86 in administration.

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      Operations The Operations Department is responsible for the investigation of alleged or sus- pected offences under the Prevention of Bribery Ordinance, the Corrupt and Illegal Practices Ordinance and the Independent Commission Against Corruption Ordin-

ance.

The Operations Review Committee consists of private citizens and senior civil servants. It receives information from the commissioner on all complaints of corruption and on the progress made into their investigation, and it advises the commissioner which complaints should no longer be pursued.

       During the year there was no evidence to suggest a resurgence of the large-scale syndicated corruption experienced in previous years. Efforts were therefore concentrated, with some success, on the 'satisfied customer' type of corruption.

       The total number of reports alleging corruption received from members of the public, which dropped considerably in 1978 following the Governor's partial amnesty announce- ment on November 5, 1977, increased in 1979. During the year, 1,665 reports were received, representing a 35 per cent increase over 1978. Of these, 511 (31 per cent) were made by personal visits to the commission's main report centre (manned 24 hours daily) or local offices, 621 were by telephone and 325 were by letter.

       During the year, a total of 284 prosecutions were made under the Prevention of Bribery Ordinance or for related offences. Of these, 35 were related to police on-the-street arrests of people who attempted to offer them bribes. A number of prosecutions also resulted from reports by government servants.

Corruption Prevention

The Corruption Prevention Department is responsible for examining the procedures and practices of government departments and public bodies and recommending changes that could reduce opportunities for corruption. It also advises members of the public on ways 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 were forwarded to the organisations concerned for consideration. Of these studies, 54 related to government departments. At the end of the year, 16 studies were in progress and 242 areas of activity were awaiting study.

       The department's report on Supervisory Accountability in the Civil Service, an important study completed in 1978, has been considered and accepted by the government. A digest of the report, setting out the principles of supervisory accountability and how they should be applied in the civil service, was forwarded to heads of departments. They were requested to regard the document as a yardstick for reviewing their department's current arrange- ments in the areas of supervision and communication.

       Since its establishment in September, 1974, the Corruption Prevention Department has completed 261 studies. The monitoring of the implementation by clients of recommenda- tions made in these studies is being given more attention. Also of increasing importance is the department's work in conducting training seminars on corruption prevention principles and methods for managerial and supervisory staff in various government departments. The ultimate objective is to have such seminars built into the government's own training programmes.

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The Community Relations Department is responsible for educating the public on the evils of corruption and enlisting their support in the fight against it. This involves not only the development of a greater awareness of the citizen's role in the community but also a greater faith in the possibility of eradicating corruption. In carrying out its work, the department receives guidance from the Citizens Advisory Committee on Community Relations, drawn from a wide cross-section of the community.

The department's activities fall into two broad areas - public information and education through the mass media, and direct personal contact with the public, either individually or in groups.

       The department has established the commission's eight local offices, situated in densely- populated areas and open from 9 am to 9 pm, Monday to Saturday, to receive reports of corruption, to deal with related inquiries and to establish and maintain contact with the public.

During the year, liaison staff kept in touch with different sectors of the community through 9,023 meetings and visits. These liaison activities have resulted in many community organisations joining forces with the commission to organise activities generating a greater awareness of the need to root out corruption and to foster higher ideals for better social behaviour.

      Work with educational institutes and the teaching profession continued in 1979. Seminars were held for teachers of primary and secondary schools to heighten their awareness of the contribution they could make and to work out action plans for promoting honesty and civic responsibility in schools.

      The department also stepped up efforts to disseminate information through the mass media and by other graphic or written material. During the year two series, partly dramatic and partly documentary, each consisting of 13 five-minute episodes, were produced and screened on local television.

      The Community Research Unit continued to monitor public attitudes towards corrup- tion and to assess the impact of the commission's work and its media and community education programmes.

Government Laboratory

      The Forensic Division of the Government Laboratory provides a forensic science service to law enforcement authorities, including the Royal Hong Kong Police Force, the Customs and Excise Service and the Independent Commission against Corruption.

      The division is engaged in the scientific investigation of crime and there are a number of specialist units. The largest unit is concerned with general forensic science: laboratory examination of exhibits from scenes of crimes is coupled with visits by scientists to the scenes. This unit also contains a forensic blood grouping laboratory, which has had considerable success since it began operations in 1978, a questioned document laboratory, and an arson investigation group.

       Other units of the division relate to the examination of narcotics, scheduled poisons, and organs and body fluids in cases where the cause of death is unknown.

      The Customs and Excise Service relies on the Government Laboratory to provide analytical and advisory services to protect government revenue. Tobacco products, liquors, denatured spirits, and treated diesel oils are regularly examined. A watch is also maintained for adulterated products, particularly liquors.

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     Prisons Department The Commissioner of Prisons in 1979 was responsible for the overall administration of 17 penal institutions, a half-way house, a staff training institute and several Vietnamese refugee camps. The Prisons Department has an establishment of 3,664 uniformed staff and 584 civilian staff.

     In 1979, the average daily penal population was 6,108 compared with 6,676 in 1978. In addition, the department, at times, was responsible for up to 11,000 Vietnamese refugees and also variously held in detention up to 4,500 people who claimed to be Vietnamese refugees, pending investigation of their circumstances. This additional burden meant that 1979 was one of the busiest years in the department's history.

Of the large numbers of Vietnamese refugees who came to Hong Kong in 1979, most, at some stage, were in the care of prison officers. Initially, 50 prison officers were seconded to receive refugees from the Panamanian freighter, Huey Fong, into the Kai Tak camp. As the influx escalated, 70 more officers were transferred to administer the Government Dockyard, Ma Tau Wai camp and Argyle Street camp. Invaluable assistance in operating these camps was given by the Royal Hong Kong Police Force, the Civil Aid Services and the Auxiliary Medical Service. The department's resources were also stretched in the course of the year by the periodic need to use some of its institutions to accommodate both Vietnamese refugees and others claiming Vietnamese refugee status.

      Financial restraints by the government led to a cut-back in the Prisons Department's building programme during 1979. In particular, two projects are considered vital by the department. They are the extension to the Staff Training Institute, to relieve severe overcrowding, and the continuing construction of a maximum security prison at Shek Pik on Lantau Island.

Adult Prisons

For adult males, the department operates eight prisons and a psychiatric centre. The full certified accommodation of these institutions is 5,049 but by the end of the year only 4,085 places were available because of the accommodation needed for Vietnamese refugees and those professing to be Vietnamese refugees.

There has been a continuing decline in the adult prisoner population and the average daily population was 3,895 in 1979, compared with 4,079 in 1978. While the situation is reasonably comfortable in medium and minimum security prisons, there has been disquiet over occasional overcrowding at the two maximum security prisons.

Stanley Prison, the department's largest prison, was opened in 1937. It is a maximum security institution with accommodation for 1,605 inmates, who are accommodated one to a cell. The safe confinement of an ever-increasing number of life and long-term prisoners, many of whom are highly dangerous, is of great concern to the prison authorities. A new maximum security prison at Shek Pik on Lantau Island was originally scheduled to be completed in 1982, to relieve the pressure on Stanley Prison, but its construction has been deferred because of the cut back in the department's building programme. The progress of a phased scheme for the reprovisioning of Stanley has also been affected by the government's financial restraints.

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 in 1977, it houses all adult males on remand, people detained under the Immigration Ordinance, debtors and newly-convicted prisoners awaiting classification and allocation. The majority of appellants, except those appealing against a sentence of death who are held at Stanley Prison, are housed in Lai Chi Kok.

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There are two medium security prisons: Victoria (accommodation 428) in Central District and Ma Po Ping (accommodation 570). Victoria is the department's oldest prison dating back to the 19th century. For much of the year, it was used to house Vietnamese refugees and people representing themselves as Vietnamese refugees. This prison is due to be replaced during the 1980s by a new, purpose-built medium security prison on Hei Ling Chau. Ma Po Ping Prison was originally for ordinary prisoners with previous institu- tional experience, but during the year it took the first offenders originally accommodated in Chi Ma Wan Prison. Improved security at the prison, through the erection of internal dividing fences, was completed in 1979 enabling the prison to be sectionalised for more effective control.

      Minimum security prisons are located at Ma Hang (accommodation 130), Pik Uk (accommodation 400), Tong Fuk (accommodation 300) and Chi Ma Wan. Chi Ma Wan was converted to house Vietnamese refugees during the year. Both Pik Uk and Tong Fuk housed Vietnamese refugees early in the year but subsequently reverted to being used as prisons.

      Pik Uk is for prisoners serving short sentences with previous institutional experience. A new industrial complex, including a laundry which will have a monthly capacity for about 455,000 kilograms of washing, will be completed in Pik Uk in 1981. Until then, the main prison labour force is being deployed on community service projects in the Sai Kung peninsula.

      At Ma Hang and Tong Fuk Prisons, prisoners are mainly employed on outside work. Ma Hang and Ma Po Ping Prisons have geriatric units for prisoners who are considered too old to participate in ordinary activities.

      Siu Lam Psychiatric Centre (accommodation 120) is a maximum security prison providing advanced psychiatric treatment for the criminally insane and convicted prisoners of a dangerous or violent nature. Inmates from other institutions requiring psychiatric treatment or cases in which the courts require an assessment are also sent to the centre. The centre has a special wing temporarily set aside for female prisoners who require the highest degree of security. Siu Lam Psychiatric Centre is overcrowded with an average muster of 147, and an extension is being planned.

Young Male Offenders

operate

    Three correctional programmes training centre, detention centre and prison for young offenders. There are five main centres with accommodation for 1,137 young inmates; during 1979, the average daily population was 794. In addition, drug addiction treatment is provided for young offenders at Tai Lam Addiction Treatment Centre.

      Lai King Training Centre (accommodation 260) houses young convicted people remanded for reports regarding their suitability for sentence to a training centre; young unconvicted people remanded from the courts on minor offences; and training centre inmates aged 14 to 17 years.

Cape Collinson Training Centre, a minimum security centre catering for the 18 to 21 age group, was used to house Vietnamese refugees during the year.

The Pik Uk Correctional Institution (accommodation 385) is a maximum security institution with separate sections for a training centre and a prison. Also accommo- dated are young people, including adults under 25 years, convicted by the courts but remanded for reports regarding their suitability for sentence to the Sha Tsui Detention Centre.

Tai Tam Gap Correctional Institution (accommodation 160) is a minimum security institution with separate sections for a training centre and a prison.

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The Sha Tsui Detention Centre (accommodation 220) is a medium security centre with two sections one for 17 to 20 year-olds and the other for those aged 21 to 24. In order to prevent overcrowding at Sha Tsui and to cater for the 14 to 16 year-olds in a separate institution, a second centre called Nei Kwu Chau Detention Centre, situated on the island of Hei Ling Chau, opened in November. In both centres, inmates undergo a programme which has been styled as 'short sharp shock' treatment for first offenders or those with a short criminal history. The emphasis is on strict discipline, hard physical effort and few privileges. Sentences range from one month to six months for those under 21 years, and three months to 12 months for those aged 21 to 24, followed by 12 months' compulsory after-care. Discharge within these limits is at the discretion of the Com- missioner of Prisons and occurs when it is considered the inmate has achieved the maximum benefit from the programme.

After-care supervision is a vital aspect of both the training and detention centre programmes. The officer on after-care duties builds up a working relationship with an inmate and his family during the inmate's time in a centre, and then visits him regularly after release. On these visits the officer acts as a guide and counsellor, while checking that the person is obeying the conditions of his supervision order.

      The success rate for young offenders under 21 - defined as the percentage who have completed the supervision period, which is three years for a training centre and 12 months for a detention centre, without subsequent reconviction is 51 per cent for the training centres and 95 per cent for the detention centres.

Since the inception of the detention centre programme for young adults in August, 1977, a total of 159 detainees have been admitted for corrective training. Of these, 22 have been conditionally discharged on review of their sentence or as a result of additional charges. Another 88 have completed their training and been released under supervision; of these 20 successfully completed their period of supervision.

Drug Addiction Treatment

The Prisons Department runs the only compulsory drug addiction treatment and rehabilita- tion 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 Hei Ling Chau and Tai Lam, which now incorporates the young inmates' centre, provide accommodation for 1,516 male in- mates. A section of the Tai Lam Centre for Women is also set aside for drug addiction treatment.

The treatment programme, enacted by law in 1969, is based on discipline, physical activity, and the complete absence of drugs. The aim of the programme is to help the inmates regain their self confidence and self respect. Its success rate has been outstanding by world standards; from 1969 to the end of 1979 it was calculated to be 65 per cent. Success is defined as the satisfactory completion of a one-year drug-free period of super- vision after release, without a further conviction.

      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 regarding their suitability for sentence to a drug addiction treatment centre, as well as those sentenced to this form of treatment. The inmates, apart from being involved in a wide range of institutional-based activities, completed two major projects related to Vietnamese refugees and illegal immigrants from China during the year. These were the construction of 1,156 triple-tier bunks for Vietnamese refugees, and the clearance of 20 kilometres of under-

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      growth and the construction of a 17.5-kilometre concertina barbed wire fence to assist security forces in the New Territories.

The largest addiction treatment centre, accommodating 1,008 inmates, is on Hei Ling Chau. Many inmates have long criminal records although their offences may be of a minor nature. Ample open-air physical work is available for inmates who have played an important role in the development and expansion of the centre, while participating in the treatment programme. A new piggery, which can accommodate 350 pigs, has been completed by inmate labour. Approximately 1,360 double bunks and 390 triple-tier bunks for Vietnamese refugees were made during 1979.

Female Offenders

The Tai Lam Centre for Women, accommodating 282, contains sections for 136 prisoners and remands, 116 drug addiction treatment inmates, and a young inmates' training centre for 30. Owing 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. However, construction of a security wing to accommodate them has started. The programmes at the training and drug addiction treatment sections are similar to those practised in the male institutions.

Prison Industries

Prison industries have been developed to better utilise inmate labour. The objectives are to increase productivity and output and to ensure that the inmates are meaningfully employed. The productive work of prison industries includes garment making, shoe- making, silk-screening, printing, fibreglassing and light engineering. The output from prison industries in 1979 was valued at $21 million, compared with $17.9 million in 1978. Further progress was made during the year towards implementing the recommendations in the 1977 Advisory Report on Prison Industries, which aim at improving organisation and introducing modern techniques in management and control.

Medical Care

All of the Prison Department's institutions are equipped with hospitals or sick bays. The hospitals perform vaccinations, inoculations and chest X-rays, and carry out regular urinalysis for the presence of narcotics. Treatment is given for minor ailments and tuberculosis. Prisoners suffering from drug withdrawal symptoms undergo detoxification programmes. Full dental care is given to prisoners and inmates serving a sentence of more than three years, and routine and emergency treatment is available for those serving shorter sentences. During 1979, 2,779 prisoners and inmates donated blood to the Hong Kong Red Cross.

       Emergency cases are transferred to government hospitals but less urgent cases are referred to visiting consultants or to specialist government clinics. Two psychiatrists from Castle Peak Hospital visit Siu Lam Psychiatric Centre daily to treat the criminally insane, to prepare psychiatric reports for the courts, and to examine prisoners referred from institutions for assessment.

Staff Training

The Staff Training Institute conducts one-year recruit courses, which include two periods of field training for officers and assistant officers. Refresher and specialised continuation courses are organised for staff of all ranks, to supplement in-service training at institutions.

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       A number of senior officers have attended courses overseas and other officers have attended specialist training courses with the Medical and Health Department, the Social Welfare Department and at the University of Hong Kong.

The delay in the construction of an extension to the Staff Training Institute has necessitated the use of the Prison Officers' Club premises, some accommodation at Sha Tsui Detention Centre, and a doubling-up on accommodation at the institute itself.

Fire Services

The Fire Services Department responded to and dealt with a total of 217,889 emergencies in 1979, of which 13,107 were fire calls, 5,630 were special service calls and 199,152 were ambulance calls. Fires caused 45 deaths and injured 768 people, including one fireman killed and 86 injured. A total of 874 people were rescued and hundreds of others were led to safety by firemen.

An analysis of the supposed causes of fire in 1979 revealed that careless handling of smoking materials, other sources of ignition and electrical faults caused 6,466 fires. The number of fires involving overturned kerosene stoves, unattended or defective cooking stoves and heaters was 651. Fire caused by liquefied petroleum gas totalled 113.

False alarm calls numbered 3,246. The great majority were raised with good intent either by the public or by ultra-sensitive automatic alarm systems.

The establishment of the Fire Services Department at the end of 1979 totalled 4,761 all ranks. In addition, the number of civilian staff employed by the department increased by seven to 426. During the year, the services of 10 officers and 243 men were lost through death, retirement, resignation or dismissal. A number of recruitment exercises were held resulting in the appointment of 35 officers and 753 firemen and ambulancemen. Standards are high and only about 10 per cent of all applicants were found to be suitable for appointment.

Buildings and Quarters

     Under the department's development programme to provide an emergency response to all areas within certain times and according to the category of risk, one new divisional fire station and two ambulance depots were commissioned during the year. These were Tuen Mun Divisional Fire Station and Tuen Mun Ambulance Depot in the New Territories and Ngau Tau Kok Ambulance Depot in Kowloon. The total number of fire and ambulance depots is now 53. A further 35 fire or ambulance stations have been included in various categories of the Public Works Programme and in private developers' projects for construction over the next few years.

At the end of the year, more than 1,890 departmental quarters were occupied or available for occupation. Construction work on 440 additional married quarters for firemen and ambulancemen will start as soon as funds are made available.

Communications System

The setting up of a new communications system was completed in December when all mobilising facilities were centralised in one control centre. Supplied by Cable and Wireless Systems Limited to specifications prepared by the staff of the Postmaster General and the Fire Services Department, this system includes a computer-operated vehicle location and status-indicating display to better utilise ambulances; centrally-operated alarm and voice circuits to all stations to reduce the call-out time; and direct links at control consoles to communicate with other agencies during emergency operations. The provision of this

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system has been a significant step in keeping up with the world trend to simplify the mobilising of emergency appliances and to improve incident response time.

Fire Prevention Bureau

The Fire Prevention Bureau is responsible for the enforcement of fire safety regulations 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 workload of the bureau was maintained in all spheres of its involve- ment. Concerted publicity campaigns have increased the community's awareness of fire prevention resulting in a call for more fire prevention lectures, exhibitions and demonstra- tions which are frequently conducted in association with kaifongs, rural committees and other community agencies. Greater emphasis has been placed on direct community involve- ment in fire prevention. The task of educating the public about the dangers of fire and showing them how they can be diminished is an essential part or the bureau's work.

      Some 8,330 complaints were received from members of the public by telephone, letter or personal visits to fire stations. This indicates public concern over potential fire hazards and a realisation of the services provided by the bureau.

       Bureau staff made 289,780 inspections of all types of premises. If fire hazards are found, abatement notices are issued which, if not complied with, can lead to court action. In 1979, there were 3,622 prosecutions resulting in fines amounting to $1,118,750.

      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 8,980 plans were processed during the year.

In-service courses for fire officers posted to the bureau were held at all levels. Training was also given to officers from government departments, industrial concerns, other countries, hospitals, as well as groups from organisations employing security personnel. At the end of the year, the bureau had a strength of 241 staff, both uniformed and civilian.

Ambulance Command

The Fire Services Department operates the ambulance service which has a strength of 1,020 all ranks. During 1979, 46 senior ambulancemen and 202 ambulancemen were recruited. Recruitment and training of staff were particularly active because of the need to provide additional staff for new ambulances and because of the reduced working week from 63 to 48 hours.

      During the year, the Ambulance Command dealt with an average of 531 calls a day, an increase of more than 11 per cent over 1978. Of the total of 193,815 calls, 156,021 were emergencies.

      To cope with a steadily increasing demand, the ambulance fleet grew by 16 vehicles in 1979 to 135, with 36 ambulances being replaced. The new vehicles, an improved type with automatic transmission, were built in the United Kingdom to the department's specifica- tions. One Range Rover ambulance, which was specially designed for narrow and steep roads, has been serving the Peak area since June, 1978.

      With the completion in 1980 of a new ambulance depot at Sha Tin, service in this new town will be much improved.

      Modern treatment methods and intensive training programmes are being instituted to improve the existing standards of ambulance aid and treatment. In addition to in-service training, officers also attend courses overseas. Facilities in ambulances are constantly

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reviewed; all ambulances are equipped with analgesic apparatus, piped oxygen, inflatable splints, spinal boards, special stretchers and incubator-carrying capability.

Appliances and Workshops

The Fire Services 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 if they fit local requirements. In 1979, 79 new or replacement appliances and units of various kinds were brought into service and 69 items, which had come to the end of their serviceable life, were replaced. Among the major appliances commissioned were three 37-metre and three 50-metre turn- table ladders, three pumping appliances, seven light rescue units, one emergency feeding unit, two pump escape hydraulic platforms and 52 ambulances.

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 and carrying out essential modifications on appliances.

Training

All recruits are trained at the Fire Services Training School at Pat Heung in the New Territories. The courses vary in content (depending on the type of recruit) and last from eight to 26 weeks. The school has a staff of 83 including 17 instructors.

      The school operated at full capacity during the year. A total of 491 men successfully completed training of whom 13 were officers, 297 were firemen and 181 were, senior ambulancemen and ambulancemen. At the end of the year, 178 recruits of all ranks were still under training at the school.

      The school also conducts basic fire-fighting and fire protection training for staff of other government departments and private organisations in Hong Kong. Some 1,549 people attended these courses during the year.

12

Immigration and Tourism

B

旅務境 逰和

A TOTAL OF 19.1 million people passed through immigration control points as they entered or left Hong Kong during 1979. This was 41 per cent more than in 1978. The bulk of the increase was border traffic between Hong Kong and China, but Hong Kong International Airport and the Hong Kong-Macau Ferry Terminal also showed substantial increases over the previous year. Local residents accounted for 68 per cent of all travellers; the remainder were mostly short-term tourists or business visitors.

Immigration

The Immigration Department has a staff of 2,485, of whom 1,138 are members of the Immigration Service. The work of the department falls into two main streams - controlling people moving in and out of Hong Kong, and providing travel documents and registration facilities for local residents.

Immigration Control

The events of 1979 which had the most dramatic impact on immigration control were the big increases in the numbers of Vietnamese refugees arriving in Hong Kong and the high level of immigration (both legal and illegal) from China. The influx of tens of thousands of Vietnamese refugees and Chinese immigrants imposed great strains on the Immigration Department, and many officers were deployed to deal with the extra workload. Additional staff were recruited but there were inevitable delays while new recruits received com- prehensive training. This meant that the department's staff worked under a great deal of pressure for the entire year.

There was a considerable increase in travel to and from China. Hong Kong residents paid more than two million visits there. During the year, through train services from Hung Hom railway station in Kowloon to Guangzhou (Canton), as well as regular air services, were introduced. The hovercraft services from Hong Kong to Guangzhou, introduced in 1978, continued to be well patronised. In spite of these alternative routes to China, the immigration control point at Lo Wu railway station continued to be very busy throughout the year and it became apparent that the facilities there need to be substantially extended. Other links between Hong Kong and China are likely to be developed in the future.

      Cases of travellers using forged or falsified travel documents increased during the year, both at the Hong Kong-Macau Ferry Terminal and at Hong Kong International Airport. These included attempts to enter Hong Kong illegally as well as attempts by Hong Kong residents to travel to other countries on forged papers. Officers of the Investigation Division of the Immigration Department arrested a number of the organisers of these rackets. Every effort is being made to detect and prevent the use of bogus documents and

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visas, and close co-operation is being maintained with the immigration authorities of other countries.

Personal Documentation

There was a 44 per cent increase in the demand for re-entry permits for Hong Kong residents to travel to China, together with a big increase in the demand for passports to travel to other countries. This imposed a severe strain on the department as officers strove to deal with the long queues of people which formed outside all immigration offices. Additional offices were opened and extra staff were found for this work. By September, the long queues had disappeared but the offices remained busy. More than one million documents were issued.

As a result of the increased immigration from China, the Registration of Persons Offices became heavily crowded by new arrivals applying for identity cards. Fortunately, when the British Forces vacated Victoria Barracks, near Central District, temporary office accommodation was obtained there. This enabled a special centre to deal with all applica- tions from new arrivals from China to be set up there at short notice.

      In July, 1979, the Immigration Department became responsible for the registration of births, deaths and marriages. As a result, 176 members of the staff of the Registrar General's Department were transferred to the Immigration Department, either permanently or on secondment. Various measures to integrate this work with related aspects of the Immigration Department's duties, especially in the registration field, were being planned

in 1979.

Tourism

Hong Kong received 2,213,209 visitors during 1979 an increase of 7.7 per cent over 1978. Expenditure by visitors continued to grow and in 1979 was estimated to be approximately $6,366 million, an increase of more than 24.7 per cent over the previous

year.

Of the major sources of visitors during 1979, the first five by volume were Southeast Asia (29.9 per cent), Japan (23 per cent), Western Europe (13.5 per cent), the United States (13.7 per cent), and Australia and New Zealand (7.6 per cent).

Hong Kong Tourist Association

The Hong Kong Tourist Association (HKTA) is responsible for handling tourism and for proposing plans for its development. 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 its board of management are appointed by the Governor. The HKTA is financed by a subvention from general revenue to which visitors contribute directly by way of a tax on hotel room charges. Members of the association also contribute to its cost through their membership dues and through other co-operative activities.

      The HKTA is headquartered in Connaught Centre, on the waterfront of Hong Kong Island. Information offices for visitors 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

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stay. Through their work, they also enable a valuable insight to be obtained into what visitors' needs and interests are.

      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, Western Australia, the United States, Bahrain and Dubai, the association is represented by Cathay Pacific Airways.

The HKTA aims at maximising tourism revenue by attracting more visitors from higher income groups or with special interests who will stay longer and spend more on a greater variety of goods and services. The association works closely with its membership and with others connected with the tourism industry to promote Hong Kong overseas and to develop and maintain facilities for visitors.

A major concern of the tourism industry is the provision of hotel rooms. During 1979, the average occupancy rate of Hong Kong hotels was 91 per cent. Investors continued to show an interest in hotel development and the association received many inquiries from Hong Kong and overseas. In June, phase two of the New World Hotel comprising 320 rooms opened, bringing the total number of hotel rooms in Hong Kong to 14,363. During 1980 it is projected that a further 1,533 new hotel rooms will be opened. By the end of 1981, more than 18,000 hotel rooms should be available in Hong Kong. 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 new dimension affecting Hong Kong's tourism industry is the high priority being accorded to tourism in China. Many of the increasing numbers of visitors to China enter or leave via Hong Kong, and an excellent relationship has been established between the HKTA and the tourism authorities in China. It is believed that considerable potential exists for further co-operation in this field.

Developing Facilities for Visitors

---

     The objective of the HKTA's Product Development Department is to preserve and improve visitor facilities and to facilitate the development of new projects. These not only increase Hong Kong's attractions as a visitor destination, but also help to boost the length of stay of visitors a direct means of increasing revenue for the tourism industry.

The association has been concerned with the initiation and creation of many facilities - such as Ocean Park and the annual Mid-Autumn Lantern Carnival. Another successful project has been the annual International Dragon Boat Races. The 1979 races featured teams from Japan, Malaysia, Singapore, Hawaii, Papua New Guinea, Macau and Hong Kong. During 1979, affiliated tourist guide training seminars and refresher training courses for non-affiliated guides were organised in conjunction with the Hong Kong Productivity Centre. In addition, tour commentaries were written for areas becoming increasingly popular with visitors such as Lamma Island and the eastern New Territories. Other product development activities included the organisation of an arts and crafts exhibition, which attracted some 29,000 visitors in seven days; and weekly cultural shows for residents and visitors.

Marketing Hong Kong

The selective marketing programme concentrates effort and expenditure in overseas markets with the greatest potential for development. It aims to develop specific high-yield

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market segments such as incentive travel, special interest tour groups and international conferences and business meetings, all of which are becoming an increasingly important element of Hong Kong's visitor intake.

      Hong Kong has become the venue for a growing number of international meetings by business groups and professional organisations. In 1979 there were 143 international conferences with an overseas attendance of more than 29,500.

      Specific marketing projects during the year included moves to diversify established travel patterns from the peak season months to the lower occupancy periods, particularly from the shorter haul markets of Southeast Asia, Japan and, to some extent, Australia and New Zealand.

The tourism industry's priority markets in all visitor-producing countries are the high- spending visitors. The objective is to maximise total visitor expenditure for the benefit of Hong Kong, particularly when only limited hotel rooms are available in Hong Kong at the present time.

In the United States and West Germany, a research programme to determine the size, needs and attitudes towards travel to Hong Kong of potential high-yield market segments was conducted. Plans are being formulated to expand this programme to other areas. Another study was initiated to ascertain the scope for increasing the expenditure pattern of visitors to Hong Kong, particularly in relation to shopping where inhibiting factors exist.

      Efforts by the HKTA to portray a more accurate image of Hong Kong as a tourist destination in Japan are starting to pay off. Improved tours are providing greater freedom and exposure to more of Hong Kong's visitor attractions, other than just the shopping bargains. Japan continues to contribute the highest total visitor expenditure of all major markets.

Southeast Asia remained a strong and flexible source of visitors, although various political and economic factors affected travel to Hong Kong from some countries. Although the declining value of the United States dollar affected expenditure by American visitors in 1979, this market and its South American counterpart have good growth potential in the longer term.

Because of the delay in the announcement of new lower air fares between Australia and Hong Kong and the competition from lower air fares introduced earlier to Western Europe and the United States, there was a decline in the number of Australian visitors compared with 1978. However, visitors from New Zealand and Papua New Guinea increased. In terms of per capita expenditure, the Australian market registered the highest growth rate in the first six months of 1979.

During the year, major campaigns promoting Hong Kong as a tourist destination were mounted in Japan, Germany, Italy, the United Kingdom, the United States, South America, the Philippines and Australia. Participation of HKTA members was encouraging. High-yield business-producing contacts were made in trade and consumer promotions, which featured local entertainers, chefs and craftsmen, and achieved extensive publicity for Hong Kong.

      A programme of consumer and travel trade advertising was implemented to increase the length of stay of visitors in Hong Kong and to encourage additional visitors in the lower occupancy periods. Advertising support was also given to some tour operators and bulk travel producers whose itineraries and brochures reflected Hong Kong's marketing objectives. A new 13-minute, 16 mm colour film, Hong Kong Time, was produced for television and cinema distribution, and to show to consumer audiences generated by the

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travel trade. Nearly nine million printed items were produced in 1979 for distribution in Hong Kong and overseas, some of them translated into up to 11 languages. They included guide books, leaflets, brochures, specialist travel trade publications and display material. Efforts continued in Hong Kong to improve the service, courtesy, and facilities that visitors are offered. The second phase of a tourism industry courtesy campaign was launched in November.

      Public relations and publicity programmes were created in support of several significant events during 1979, including the International Dragon Boat Races, the Hong Kong Arts Festival, the Hong Kong International Film Festival, and the Festival of Asian Arts. Representatives from the media were invited to Hong Kong to cover these events and to visit other tourism-related places. A total of 691 media visitors were the guests of the HKTA during 1979.

13

1

雪味

Public Works and Utilities

ONE of the government's largest financial commitments is expenditure on public works. This covers the formation and reclamation of land, port and airport works, the provision of roads and their associated sewers, bridges and tunnels, the supply and distribution of water, and the construction of public buildings.

For the 1979-80 financial year, approved expenditure on capital works amounted to $2,599 million, approximately 21 per cent of the government's total expenditure. Of this sum, $440 million is being spent on roads, $167 million on water supplies and $96 million on public housing constructed by the Public Works Department, in addition to that being spent by the Housing Authority.

To help cool off the economy, the government in its 1979-80 Budget imposed cash limits on capital expenditure on public works. The objective was to reduce the rate of growth in expenditure in the Public Works Programme. However, it became evident during the year that because of the ever-increasing cost of construction and the additional load imposed by unexpected works, such as those in connection with Vietnamese refugee camps, either the planned Public Works Programme could not be implemented or that some flexibility in the expenditure ceiling would have to be tolerated.

Geotechnical Control

A geotechnical manual for slopes was completed by the government's Geotechnical Con- trol Office and published in draft form in 1979. This publication sets out the practices and standards that should be used for construction on slopes in Hong Kong.

An aerial photography interpretation unit was formed to apply photogrammetric tech- niques for locating areas where slope stability problems are likely to occur. Checks were made on the design of new slopes associated with the construction of all major government engineering and building projects. The detailed investigation of the stability of existing slopes throughout Hong Kong continued and preventive works on 22 fill slopes in the urban areas were satisfactorily completed. In late 1979, contracts were let for a further programme of fill slope preventive works.

Quarrying

Activity in the quarrying industry remained at a high level during 1979. A total of 5,695,984 cubic metres of aggregates were produced by the two government and seven contract quarries. In addition, the quarries produced bitumen-coated material and ready-mixed concrete for the construction industry. Owing to a steadying in the level of demand in 1979, coupled with the production of aggregates from development sites, the quarries were able to meet orders for aggregates without difficulty. As a result, the opportunity was taken to

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establish larger reserves of aggregates to meet future demand. During the year, a new contract to operate a crushing plant was let. The plant will process surplus rock excavated from construction sites.

Marine-dredged sand continued to play a significant role in meeting the need for sand and 987,653 cubic metres was sold through the government sand monopoly. A total of 133,336 cubic metres of manufactured sand was also sold. The new sand depot at Lai Chi Kok was completed and plans were in hand for new depots at Sha Tin and Tai Lam Chung.

Buildings

The building boom of the previous two years continued into 1979, but with some significant changes occurring in the statistical analysis of the industry. Increases in wage rates con- tinued to accelerate, rising by 21 per cent from July, 1978, to June, 1979, while the cost of materials rose by 57 per cent in the same period. This resulted in an increase of 38 per cent in the consolidated index covering both labour and materials. An analysis of actual tenders received for construction works, however, showed an increase of only 31 per cent, reversing the trend of the previous mid-calendar year when tender prices outperformed the labour/materials index. The reasons for this reversal were not clear. There were in- dications in the third quarter of 1979 that the overall acceleration in building indices was beginning to ease, although it was too early to suggest that this was to be a continuing trend leading to a reduction in inflationary pressures on the industry.

      Notable projects completed on Hong Kong Island included the Headquarters British Forces building at HMS Tamar, which was opened by His Royal Highness the Prince of Wales in March. This was the major project in the programme of work associated with the release to the Hong Kong Government of land at Victoria Barracks. The building, constructed in record time, comprises a five-storey podium providing 3,830 square metres per floor, and a 20-storey tower with 1,330 square metres per floor. The new building is a striking addition to the Central District waterfront. Also completed was the refurbish- ment of Government House. In this project, part of the work entailed the provision of a temporary roof while the existing roof was removed and the old timber trusses were re- placed by steel ones. Another interesting undertaking was an indoor games hall at Aberdeen sports ground. The indoor games hall is the first completed building in Hong Kong to feature a space-frame roof over the main hall which has internal dimensions of 39 metres by 36 metres.

Other building projects completed on Hong Kong Island were the reprovisioning of Victoria Technical School; the first stage of additional staff quarters at Queen Mary Hospital; the reprovisioning of the headquarters of the Royal Hong Kong Regiment (The Volunteers) at Sports Road, Happy Valley; and a promenade along the waterfront in Central District where pavilions and a fountain provide an attractive and shady environment.

      Among the buildings completed in Kowloon were the first phase of the new technical institute in Kowloon Tong; a judiciary building at Gascoigne Road comprising a six-court magistracy; a crematorium at Diamond Hill; 450 quarters for married rank and file members of the Royal Hong Kong Police Force at Ho Man Tin; and for the armed forces, four Gurkha married officers' quarters, 112 Gurkha married soldiers' quarters and a Gurkha temple, all at Gun Club Hill Barracks. Improvements at Hong Kong International Airport, Kai Tak, continued on a phased programme throughout the year, with part of a multi- storey car park and sections of the new arrival and departure halls being brought into

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service. Modifications to the old freight building and a new airport fire station have been completed. New headquarters for the Royal Hong Kong Auxiliary Air Force have also been completed at the airport.

Work completed in the New Territories included a fire station at Tuen Mun San Hui; an ambulance depot at Tuen Mun; 410 quarters for married rank and file members of the Fire Services Department at Tsuen Wan; stage one of 600 quarters for married rank and file members of the Fire Services Department at Sha Tin; and, also at Sha Tin, 400 quarters for married rank and file members of the Royal Hong Kong Police Force. Other projects completed were a government office building at Tai Po; 59 quarters for married officers of the armed forces at Sek Kong Village; and a meteorological station at Chek Lap Kok Island to collect data for a feasibility study related to siting a replacement airport there. Projects under construction at the end of 1979 included a psychiatric wing at Princess Margaret Hospital; phase two of the International Mail Centre; the Queen Elizabeth Stadium at Morrison Hill, an 11-storey multi-purpose sports and entertainment building with an adaptable arena capable of seating about 3,500 spectators; at Hung Hom, an indoor stadium able to seat 12,000 people, with a 100-metre square space-frame roof; the Hong Kong Space Museum at Tsim Sha Tsui; reprovisioning of Lei Yue Mun Fort and Sham Shui Po military camp to release land to the government; a swimming pool and park at Chai Wan; an ambulance depot at Ngau Tau Kok; standard urban clinics at Ngau Tau Kok and Lei Muk Shue; a dental teaching hospital at Sai Ying Pun; Sha Tin Hospital and a polyclinic; and a Medical and Health Department laundry at Pik Uk Prison.

      Other projects included 252 non-departmental government quarters at Mount Butler; an ambulance depot at Sha Tin; for the Fire Services Department, a divisional fire station and New Territories command headquarters at Sha Tin; a new residence for the Deputy Commander British Forces and 174 married soldiers' quarters, both situated at Stanley Fort; the first phase of a polyclinic at Tuen Mun; the reprovisioning of the Air Mail Centre at Hong Kong International Airport; a swimming pool complex at Sha Tin; an indoor games hall at Kwai Chung; and a market in Tuen Mun.

At the end of the year, design, working drawings and contract documents were being prepared for more than 380 projects. They included a secondary technical school at Kwai Shing; the second stage of the technical institute at Kowloon Tong; five standard secondary schools at Tsuen Wan, three at Sha Tin, one at Tuen Mun and another at Yuen Long; and two standard primary schools at Tuen Mun and one each at Tsuen Wan and Sha Tin. Other standard schools included in development programmes for the new towns in the New Territories were entering the investigation stage. Other projects were a Fire Services Department headquarters and principal fire station on Hong Kong Island; fire stations at Sai Wan Ho, Kotewall Road, Kowloon Bay, Sha Tin and Tuen Mun; an ambulance depot, training school and command headquarters at Ho Man Tin; ambulance depots at Quarry Bay, Cheung Sha Wan and Yuen Long; a cattle quarantine depot on Tsing Yi Island; a new building for the Government Printing Department; wholesale markets at Cheung Sha Wan and at Western District; and multi-storey car parks at Kwun Tong, Causeway Bay and Tsuen Wan.

Other building projects at the investigation or pre-contract planning stages included an extension to Broadcasting House; the new Supreme Court; a new district court and mag- istracy building at Wan Chai reclamation; magistracy buildings at Kwun Tong and Sha Tin; standard urban clinics at Lam Tin and Kwai Chung; the second phase of Tuen Mun Polyclinic; a nurses' training school and quarters in Lai King Hill Road; children's dental clinics at Kowloon, Tsuen Wan and Sha Tin; a hospital and quarters at Tuen Mun; and

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government office buildings at Tsuen Wan, Sha Tin and Sai Kung. Also included were a new depot for the Royal Hong Kong Police Force's tactical unit; a New Territories' district police headquarters; a new city divisional police station on Wan Chai reclamation; a marine police district headquarters; a new airport divisional police station; police rank and file married quarters on Hong Kong Island and at Kowloon and the New Territories; police stations at Hang Hau, Tsim Sha Tsui, Sau Mau Ping and Tsuen Wan; a workshop for Pik Uk Prison; and community centres at Yau Ma Tei, Tai Po and Lai Chi Kok.

      Proposed urban amenities items included parks at Choi Sai Woo, Wong Nai Chung Reservoir, Shek Kip Mei, Tai Hang Tung and Chai Wan; playgrounds in Kowloon at Fat Kwong Street, Cha Kwo Ling Road, Sau Nga Road, Kung Lok Road and Dyer Avenue; and swimming pool complexes at Kowloon Park, Sham Shui Po and Hammer Hill Road. Among amenities projects in the New Territories were beach buildings at 114 milestone Castle Peak Road, Trio Beach, Butterfly Beach, Silverstrand Beach, Silver Mine Bay, Kiu Tsui Beach, Kadoorie Beach, Lo So Shing Beach and Hap Mun Bay; swimming pool complexes at Yuen Long, Kwai Chung, and Tuen Mun; and numerous parks and playgrounds and local and district open spaces.

Other projects being planned in the New Territories were a funeral depot at Tsuen Wan; a crematorium and columbarium at Sha Tin and another at Tuen Mun; markets at Cheung Chau, Hung Shui Kiu, Tai Po, Sai Kung, Tsuen Wan, Kwai Chung, Yuen Long, Sha Tin and Sai Kung; and numerous cooked food centres at various localities.

      New items which entered the Public Works Programme during the year included two primary schools at Tuen Mun; a temporary fire station in Central District; 686 non- departmental quarters in Hong Kong and the New Territories; an Urban Services Depart- ment transport depot at Kennedy Town; indoor games halls at Sha Tin and Tuen Mun; a cleansing depot in Kwai Chung; three cooked food centres in Yuen Long; a market in Tuen Mun; a plant nursery at Tai Po and a tree nursery at Tuen Mun; and five local open spaces in new town areas.

There was further expansion in the volume of maintenance works and minor alterations to government buildings. The estimated expenditure figure of $60.5 million for the 1979-80 financial year compares with the approved estimate of $53 million for the previous year. A distinct trend was noticeable towards more sophisticated maintenance requirements caused by the diverse uses of some buildings, shortage of space, and more elaborate design features.

Land Development

In Kowloon, reclamation by public dumping continued at Sham Shui Po, where about 2.5 hectares was formed for use as open space. Reclamation by public dumping commenced at Cheung Sha Wan, where about four hectares was formed for a wholesale market complex. On Hong Kong Island, several reclamation projects were completed, providing a total of 4.6 hectares of land at Aberdeen for the construction of boatyards and roads; 10 hectares at Western District for the construction of roads, a wholesale market and for cargo handling uses; and 1.3 hectares at Aldrich Bay for roads and community uses. Reclamation by public dumping commenced at Quarry Bay, where 1.5 hectares was formed for eventual industrial use.

In the New Territories, reclamation continued for the second stage of Tai Po Industrial Estate. The second stage will allocate 30 hectares for industrial use.

      An engineering feasibility study for urban development in the northern part of Lantau Island was in progress. The study also included assessment of the amount of earthworks

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which would be involved if a replacement airport was built at Chek Lap Kok Island, near Lantau Island.

Drainage and Anti-pollution Projects

     Flood protection to urban and rural areas is afforded by stormwater drainage culverts and nullahs. Sewage from developed areas is, in general, collected by separate sewage systems and subjected to various modes of treatment depending on the quality of effluent acceptable in the waters where it is discharged. During the year a number of related projects were undertaken.

Construction of major stormwater culverts and intercepting sewers at Aldrich Bay reclamation at Shau Kei Wan and of sewage pumping stations at Hung Hom and Tsuen Wan started in 1979. River training works at Tung Chung on Lantau Island were completed.

New sewage treatment works at Repulse Bay, Aberdeen, Ap Lei Chau and Tai Po were completed. Construction of sewage treatment works at Tuen Mun and the detailed design of additional sewage treatment facilities at Yuen Long and Tai Po were in progress. Con- sulting engineers continued with the design of the first stage of sewage treatment and disposal works for north-west Kowloon. Construction work for the first stage of the permanent sewage treatment plant to serve Sha Tin New Town progressed satisfactorily. Submarine outfall construction for sewage effluent from Chai Wan, Repulse Bay, Ap Lei Chau, Kwai Chung and Tuen Mun was completed.

      The long-term monitoring of the quality of Hong Kong 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 completed. A technical report discussing the monitoring results was prepared.

      About 1,130,000 tonnes of solid waste was treated at the five controlled tipping sites at Sai Tso Wan, Ma Yau Tong, Gin Drinker's Bay, Siu Lang Shui and Shuen Wan. This is an increase of 10 per cent over the previous year's figure. Construction of a replacement tip at Junk Bay was in progress.

A refuse incinerator at Kwai Chung became fully operational in 1979. The plant has a capacity of 900 tonnes a day. Construction of a pilot refuse baling plant at Sai Tso Wan was completed and commissioning started. This is the first refuse baling plant in Hong Kong and it has a capacity of 600 tonnes a day.

      The construction of Hong Kong's first full-scale refuse composting plant at Chai Wan was completed. The plant will deal with 240 tonnes of refuse a day and will be capable of a future upgrading to 480 tonnes a day. During the year, consideration was being given to the possibility of building a composting plant at Sha Tin.

Port Works

On Hong Kong Island, construction works for a total of 1,840 metres of seawall were completed in Western District, at Po Chong Wan and Shek Pai Wan in Aberdeen, and at Aldrich Bay. The construction of a second passenger ferry pier at North Point was com- pleted. Work continued on 900 metres of seawall foundation in Western District. Two contracts were let for the construction of a total of 1,450 metres of seawall in Western District and at Quarry Bay.

      In Kowloon, a new ferry pier at Hung Hom was completed and put into service. The construction of a section of seawall for Cheung Sha Wan reclamation and Sham Shui Po

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reclamation was also completed. At Tsim Sha Tsui the construction of salt water pump- houses was well advanced.

       In the New Territories, the construction of a seawall and the related reclamation work were completed in the Rambler Channel Typhoon Shelter to provide land for cargo handling. At Cheung Chau, construction work on the foundations for the typhoon shelter was well advanced, and at Tai Po the contract for seawall construction for the industrial estate neared completion.

In Victoria Harbour, dredging work at the mooring areas south of Stonecutters Island continued.

Water Supplies

Above average rainfall in 1979 enabled a continuous water supply to be maintained in Hong Kong throughout the year.

At the beginning of 1979 there were 361 million cubic metres of water in storage, compared with 187 million cubic metres at the start of 1978. Rainfall for the year was 2,615 milli- metres compared with the average of 2,246 millimetres. Heavy rains in late July, August and September caused all except the two largest reservoirs to overflow and the beginning of the dry season in October saw reservoirs more than 80 per cent full.

On January 1, the combined storage in Hong Kong's two largest reservoirs, High Island and Plover Cove, was 306 million cubic metres. The quality of the water impounded in these reservoirs remained satisfactory throughout the year; salinity contents at the end of the year were 26 and 74 milligrammes per litre, respectively.

A total of 148 million cubic metres of water was piped from China during the year. An additional 23 million cubic metres was being supplied from October, 1979, to July, 1980, under an agreement with the Bureau of Water Conservancy and Electric Power, Guangdong (Kwangtung) Province.

       Demand for fresh water rose steadily and a new peak of 1.52 million cubic metres a day was reached, an increase of 13.4 per cent over the 1978 peak of 1.34 million cubic metres a day. The average daily consumption throughout the year was 1.28 million cubic metres, an increase of 13.2 per cent over the 1978 average. A total of 467 million cubic metres of potable water was consumed, compared with 412 million cubic metres in 1978. In addition, 76 million cubic metres of salt water for flushing was supplied.

The Lok On Pai desalting plant remained shut down in 1979: planned maintenance and 'mothballing' were being carried out.

During the year, planning studies to improve water supplies to Kowloon Bay reclamation, Kwun Tong, Lam Tin, Ho Man Tin, Ma Tau Wai, Ma Tau Kok, King's Park, Hung Hom, Yau Ma Tei, Tsim Sha Tsui and North Point were completed. Further water supply proposals to cater for the developing New Territories' centres of Sha Tin, Tsuen Wan, Tuen Mun, Tai Po, Sheung Shui, Fanling, Sai Kung and Mui Wo were made. Detailed investigations were undertaken to improve the capacity of treatment works at Sha Tin, Tsuen Wan and Shek Lei Pui; the trunk feed system to the north-eastern part of Hong Kong Island; and the capacity of the Plover Cove supply tunnels and aqueducts at Tai Po Tau. A series of pilot plant tests was conducted to assess the feasibility and economic viability of desalting saline water by means of reverse osmosis, and reclaiming secondary treated sewage effluent and substandard waters by means of advanced waste-water treat- ment. Design works were in hand for improving the water supply to Sai Kung, Chai Wan, Cheung Chau, Tai O and Cheung Sha.

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Construction of a pumping station and pipeline to receive additional water from China. was completed, and the construction of new tunnel and pipeline system as a further development of the East River Scheme made good progress. Construction progressed satisfactorily on the new supply systems for the new towns of Sha Tin, Tuen Mun and Tsuen Wan, as well as Tsing Yi, and work also commenced to increase the supply to Sai Kung. On Hong Kong Island, works continued on the improvement of supplies to Pok Fu Lam, Stanley and Repulse Bay.

Detailed studies and monitoring to examine the safety of reservoirs continued and a programme of remedial works was implemented.

      A new water tariff became effective on April 1, 1979, with a concessionary rate for large trade consumers satisfying certain consumption and water cost criteria. Preparatory work for implementing the first stage of phase two of the computerised water billing and in- formation system progressed steadily. Owing to the non-availability of computer time, the commencement of computerised billing for domestic and other consumers previously planned for the middle of 1979 was delayed to early 1980.

Electricity

     Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma are supplied with electricity by the Hongkong Electric Company Limited while Kowloon and the New Territories - including Lantau and a number of outlying islands - receive supplies from the China Light and Power Company Limited. The island of Cheung 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 control over the tariff charges and profits of the two main undertakings.

      The Hongkong Electric Company's Ap Lei Chau power station has a generating capa- city of 936 megawatts (MW) following the commissioning of its eighth generating unit (125 MW) in 1979. Two more 125 MW units will be commissioned in 1980 and 1981. By 1981 the Ap Lei Chau power station will be fully developed and will have a total installed capacity of 1,186 MW.

Generation of electricity on the mainland is carried out by China Light and Power, Peninsula Electric Power Company Limited (PEPCO) and Kowloon Electricity Supply Company Limited (KESCO). Both PEPCO and KESCO are financed 60 per cent by Esso and 40 per cent by China Light. PEPCO owns power stations 'A' (762 MW) and 'B' (800 MW) at Tsing Yi and Hok Un station 'C' (240 MW). KESCO owns a gas turbine unit (56 MW) at Hok Un which came into operation in September. The plants owned by PEPCO and KESCO are operated by China Light, which also has its own stations 'A' and 'B' (total 350 MW) at Hok Un and a number of diesel sets (total 6 MW).

The installed capacity of the Cheung Chau Electric Company is 8 MW.

      Transmission is carried out at 132 kilovolts (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.

      A power failure occurred in August which affected wide areas of Kowloon and the New Territories. The failure was caused by a malfunction at one of the Tsing Yi power stations resulting in a black-out which, in some areas, lasted more than 12 hours.

During the year an agreement was reached to establish an interconnection, through submarine cables, between the systems of China Light and Power and Hongkong Electric by April, 1981. The interconnection is expected to help to defer the need for tariff increases

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on a long-term basis. Savings are expected to be achieved in fuel costs through more efficient utilisation of the existing generating plant and through a deferment in the requirements for new plant. The interconnection should also alleviate the effects of a power failure in one of the systems.

       In April, owing to a threatened fuel oil shortage, the government decided to implement oil conservation measures. The Oil (Conservation and Control) Ordinance 1979 conferred upon the Governor in Council and the Director of Oil Supplies powers to give directions to suppliers and dealers as to the storage, supply, use and disposal of oil and to give similar directions to electricity and gas companies. The Director of Trade Industry and Customs was appointed Director of Oil Supplies.

       The package of measures introduced in May included a ban on the use of electric lighting for advertising, display and floodlighting purposes except between the hours of 8 pm and 11.30 pm; the adoption of daylight saving time (GMT+9); a reduction in the spinning reserve of the power companies; urging the public specifically to set air-conditioning thermostats at no lower than 26° Celsius; and generally to save electricity. The measures were designed to achieve the greatest savings with the least possible disruption to basic daily living and industrial activities.

       In October, partly because of an easing in the oil supply situation, the restrictions on the use of electricity for advertising, floodlighting and display purposes were lifted. The public continued to be exhorted, however, to achieve voluntary savings. Standard time (GMT+8) was reverted to on October 21.

       Despite the government's energy conservation measures and the increased cost of fuel, the demand for electricity continued to grow during the year. This reflected Hong Kong's continuing development as a manufacturing centre and the general improvement in the standard of living of the population. Main electricity statistics for 1979 as well as electricity sales figures for 1977 to 1979 are shown in Appendix 34.

       In order to cater for the rising demand, two new power stations are being constructed. Hongkong Electric's Lamma Island power station will initially house two 250 MW generating sets while KESCO's power station at Tap Shek Kok, Castle Peak, will initially house two 350 MW units. The first sets at both stations are expected to be commissioned in 1982. A significant feature about these projects is that the generators will be capable of being fired by either oil or coal. Both power companies intend to use coal to fire their new generators. Given the instability of the world oil supply situation and the greatly increased cost of oil (which was reflected in the increased price of electricity in 1979), this is a welcome development because it will lessen Hong Kong's dependence on oil and help to keep down costs for consumers.

-

      In March, 1979, an agreement for the supply of electricity by China Light to the Guangdong Electric Company in China was signed. From April 1, 1979, approximately 50 MVA of electricity the equivalent of one million units a day was supplied to the Guangdong Electric Company. The connection with Guangdong comprises 11 kilometres of 66 kV overhead line between China Light's substation at Fanling and that of the Guangdong Electric Company at Shum Chun in China.

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, Ap Lei Chau, Repulse

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     Bay and Stanley in the south. Towngas is supplied throughout Kowloon including Kwun Tong and the rapidly developing area of north-east Kowloon. In the New Territories, 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 laid under Victoria Harbour. 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 heat value of 17.27 MJ/m3 and a specific gravity of approximately 0.56. Gas is sold on a thermal basis (one therm 105.5 megajoules). Towngas sales in 1979 amounted to 28.6 million therms (three million gigajoules) compared with 23.7 million therms (2.5 million gigajoules) in 1978.

2

The basic price of Towngas increased by 30 cents to $5 a therm in October. This was attributed to increased material and operating costs and the decline in the value of the Hong Kong dollar.

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Communications and Transport

      HEAVY demands were placed upon Hong Kong's transport system during 1979 owing to the acute shortage of road space, the growth in the number of vehicles registered, the density of urban development and the needs of an increasing population.

Hong Kong's buses, ferries, minibuses, taxis, trams and railways provide an integrated public transport network. However, to cope with the territory's steadily increasing transport demands, the network needs to be continually improved through modernisation and greater efficiency. An overall policy framework, in which government planners defined ways to meet transport challenges up to the 1990s, was provided in a White Paper published in May, 1979. The White Paper entitled 'Keeping Hong Kong Moving' indicated that the development of a complete multi-modal transport system rested on three major principles. These were the improvement of the road system; the expansion and improvement of public transport; and the more economical use of roads.

It is essential that transport planning proceeds speedily and efficiently to keep pace with Hong Kong's rapid urban development. Accordingly, while new roads, flyovers and tunnels are being built, work continues on the task of finding other imaginative and practical schemes to meet the territory's traffic needs. The rephasing of the road development programme, because of government-imposed financial restraints, has meant delaying important road projects. This, in turn, has placed more emphasis on the upgrading of public transport and the better use of roads.

The most significant improvement in public transport in 1979 was the opening of the Modified Initial System of the Mass Transit Railway (MTR). The first stage of the under- ground railway began running in October, four more stations in Kowloon became operational in December, and the entire system was in use by February, 1980. It is anticipated that one million passengers a day will be using this system by the mid-1980s, benefiting from its speed, reliability and air-conditioned comfort. Work on the Tsuen Wan extension of the MTR is proceeding according to plan and this 10.5-kilometre line with 10 stations is scheduled to open in 1982.

       Work on the electrification and modernisation of the Kowloon-Canton Railway con- tinued in 1979. By 1982, a high speed, suburban service will link the new town of Sha Tin in the New Territories with Kowloon. At Kowloon Tong station, passengers will be able to interchange with the MTR, thus effectively integrating the two systems into one rail network.

       The feasibility of a new light rail transit system is being studied for the congested north shore of Hong Kong Island. If the project proceeds, the first stage could be operating by 1983. Another light rail transit system is being considered for the new towns of Tuen Mun and Yuen Long in the western New Territories.

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The government is working with the two major bus companies - the Kowloon Motor Bus Company (1933) Limited and the China Motor Bus Company Limited - to achieve a significant improvement in both the quality and quantity of buses on the road. In early 1979, the government carried out a thorough review of the operations of the bus companies. After its findings were submitted to the Executive Council, the Governor in Council said that agreement should be reached with the companies in the main problem areas of bus purchasing programmes; depot facilities; maintenance and the safety of buses; and driver standards and working conditions.

Development proposals for outlying Lantau Island are being studied to ensure the close co-ordination between them and a possible fixed road crossing with the mainland. Con- sultants appointed by the government recommended in 1979 that three bridges should link Lantau to the New Territories' industrial centre of Tsuen Wan, via the islands of Tsing Yi and Ma Wan.

      The Cross Harbour Tunnel, which opened in 1972, has had a dramatic effect on travel patterns in Hong Kong. But, with 88,000 vehicles using it daily, the tunnel is reaching its capacity and a major planning study is under way to consider whether additional cross- harbour facilities should be provided.

Public Transport

Probably no country can equal the intensity, productivity and diversity of Hong Kong's public transport system. The comprehensive range of transport services available includes some 2,770 franchised buses and coaches of which approximately 82 per cent are double- deckers, 4,350 minibuses, 8,762 taxis, 163 double-deck trams with 20 single-deck trailers, 92 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. Traffic figures for the various transport modes are detailed in Appendix 36.

Buses

The government awards franchises on a route basis to three bus companies which together carry an average of 3.3 million passengers a day.

      The Kowloon Motor Bus Company (1933) Limited operates 194 franchised bus routes in Kowloon and the New Territories (including 11 feeder routes to Mass Transit Railway stations), carrying an average of 2.56 million passengers daily. It has a fleet of 1,867 vehicles which comprise 1,436 double-deck buses, 329 single-deck buses and 102 single-deck coaches. New double-deckers ordered and in use include buses able to carry 120 passengers, which are fitted with retarders to enhance safety on steep gradients. Fares are charged according to route distance and range from 20 cents to $1.50. A higher scale of fares applies to coach services. There are 16 express coach routes, including two serving Hong Kong International Airport, Kai Tak. All coach services offer a guaranteed seat and are intended to serve as an alternative to the private car. In 1979, the fleet travelled 113 million kilometres.

      The China Motor Bus Company Limited operates 81 bus routes on Hong Kong Island. The company carries an average of 750,000 passengers daily, using 840 double-deck buses, all of which are one-man operated. An exact fare system is adopted, ranging from 30 cents to $1.50. The company's total carrying capacity increased during 1979 following the entry into service of 39 double-deck buses, each able to carry 146 passengers. The company also operates 72-seater double-deck coaches which aim to provide a comfortable alternative to private cars.

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      The two companies operate a network of 18 joint services through the Cross Harbour Tunnel under a pooled route distance scheme. They also run special services for race meetings at Happy Valley and Sha Tin.

       At the end of 1979, consideration was being given by the government to applications from the two bus companies for a general increase in fares.

       On Lantau Island, the New Lantao Bus Company (1973) Limited operates six franchised services which carry 6,800 people daily. The fleet comprises 58 single-deck buses with seating capacities ranging from 20 to 48. Recreational traffic on Sundays and public holidays is 85 per cent higher than the daily service. To meet this 'peak' problem, some double-deck buses will be put into service in 1980.

Minibuses

The number of public light buses remained at the permitted maximum of 4,350 vehicles at the end of 1979. 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 150 established routes, conveying 1.6 million passengers daily. The normal fares charged range from $1 on urban routes and from $2 to $3 on cross-harbour routes and on routes to the New Territories. Fares are increased two or three times the normal fare during rush hours, public holidays and on festival days. 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 the government to divert minibuses into supplementary feeder roles in areas unsuitable for conventional buses. Towards the end of the year, two additional maxicab routes were introduced on Hong Kong Island, 21 in Kowloon and four in the New Territories, bringing to 46 the total number of maxicab services operating at fixed fares and fixed routes in the territory. Plans are in hand to progressively introduce more maxicab routes to achieve the target figure of 500 maxicabs by 1981.

      Apart from the bus companies and minibuses, there are 2,795 non-franchised buses, private buses, private light buses and coaches. They are used mainly for tourist sightseeing, carrying factory workers or conveying children to and from school. A few private housing blocks operate private bus services for their residents.

Trams

Hongkong Tramways Limited operates a tram service on five routes over 30 kilometres of track along the crowded northern shore of Hong Kong Island. The service carries an average of 410,000 passengers daily with a fleet of 163 double-deck tram cars and 20 single-deck trailers. A flat fare of 30 cents is charged, with passengers paying their money into a fare box on exit.

      In 1978, the government agreed in principle that the tramway should be modernised to the standards of a light rail transit system, subject to its feasibility being demonstrated. Feasibility studies were proceeding in 1979.

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. Using steel wire ropes as its sole means of haulage, it is considered to be the second steepest funicular railway in the world with the steepest gradient being one in two. The service, which began operating in 1888, is popular with tourists. The two service cars (a third is used as a maintenance spare) carry 5,770 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 near Aberdeen, on Hong Kong Island, carried 1.59 million passengers in 1979. The system has the capacity to carry 5,000 passengers an hour in each direction in 246 cars which can seat six people. The cable car traverses a 1.4-kilometre route during its seven-minute journey.

Ferries

Hong Kong has a total area of 1,059 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 a major role in providing both commuter and recreational transport. The two major ferry operators are the Hongkong and Yaumati Ferry Company Limited and the Star Ferry Company Limited. The Hongkong and Yaumati Ferry Company, with a fleet of 82 vessels which include double-deck and triple-deck ferries, water buses, water taxis and hoverferries, provides a network of 29 ferry services. These consist of three vehicular services, 14 cross-harbour passenger services, 11 services to outlying districts and one service along the north shore of Hong Kong Island. The vehicular ferry services carry 10,250 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 330,800.

On November 1, there was a general increase in fares for the cross-harbour and outlying district ferry services owing to higher operating and fuel costs. On most routes, passengers are now carried at a flat fare of 50 cents. On the remaining routes, the fares range from $1 to $6 depending on the 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 154,900 passengers a day. During Typhoon Hope on August 2, the company's Tsim Sha Tsui piers were damaged when they were rammed by a container ship. This resulted in longer waiting times, during peak periods, for people catching the ferries.

Apart from the two major ferry operators, there are several minor ones. In addition, 'walla-wallas' (motor boats) are also available at the public piers on both sides of Victoria Harbour. In the New Territories there are supplementary services, known as 'kaitos', which are organised by villagers to meet local demand.

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 in the New Territories. The other is for the rural areas of the New Territories. In early 1979, fares for urban taxis increased to $2.50 for the first 1.6 kilometres and 50 cents for each subsequent fifth or part of that distance. A surcharge of $10 is made for cross-harbour journeys. By the end of 1979, there were 8,024 taxis serving the urban areas. The rural areas are served by a fleet of 738 taxis which charge a standard fare of $1.50 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 more new taxis were licensed to meet the increasing demand.

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Kowloon-Canton Railway

153

The most momentous event of the year for the Kowloon-Canton Railway was the re- introduction on April 4, after a gap of 30 years, of a direct through passenger train service between Kowloon and Guangzhou (Canton). The train, which is first class, air-conditioned, and has 640 reclining seats, was fully loaded in each direction every day during 1979.

In January, the government signed a final agreement with a British consultancy firm for it to provide overall project management, design and specialist advice for the modernisation and electrification of the railway. The first stage of the electrified service, between Kowloon station in Hung Hom and Fo Tan in Sha Tin, is expected to be commissioned by the spring of 1982, with full electrification of the line up to the territory's border town of Lo Wu by the end of 1982.

       An order has already been placed for 45 three-car electric multiple train units, with the first delivery expected at the end of 1980. These electric trains will be powered by 25 kV alternating current supplied from overhead cables. Construction of a maintenance and servicing depot for the electric trains will start early in 1980 and will absorb the existing railway workshops at Ho Tung Lau.

-

      Double-tracking of the railway between Hung Hom and Sha Tin has been completed except for one short section the new Beacon Hill Tunnel which is expected to be completed in 1981. Double-tracking between Sha Tin and Tai Po Market is scheduled for completion by early 1982 with the rest of the project through to Lo Wu by the end of 1982. The tracks consist of new, heavier rails which provide a smoother and more comfortable ride; they are continuously welded, resting on concrete sleepers.

      In tandem with double-tracking, an electronically-controlled, track-circuited, colour light signalling system has been introduced between Hung Hom and Sha Tin; it will progressively be extended to Lo Wu. The signalling system is administered from a centralised control room and is designed to eliminate, to the maximum practicable extent, the risk of human error.

       Under its modernisation programme, all the railway's existing stations are being rebuilt and a new station at Kowloon Tong is to be constructed. This will have a three-level interchange with the Mass Transit Railway. Work will begin at Kowloon Tong in 1980. Meanwhile, the rebuilding of Sha Tin and Mong Kok stations is proceeding and will be completed by 1982. Both stations will have a concourse above track level, connected to the platforms by escalators and lifts, with building complexes above the stations. At Sheung Shui station, an additional loop line and platform were completed in October. It is later planned to add new stations at Tai Wai and Fo Tan.

       All of the railway's existing platforms are to be raised to 1.06 metres which is the floor level of the new electric trains. This will assist in reducing the time that people take to catch and leave trains, enabling minimal station stopping times to cater for the large numbers of passengers who will be carried each day. This is estimated to reach 250,000 people by the mid-1980s and half-a-million a day by 1990.

      During 1979, the Kowloon-Canton Railway experienced substantial increases in both passenger and freight traffic.

Roads

The planning, design and construction of new roads, as well as improvements to existing road networks, are based on traffic priorities and the government's financial allocation. These are reviewed annually. In spite of the cut-back in government spending in the 1979-80 financial year, the construction of highways proceeded satisfactorily in 1979, although

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some projects were rephased. A total of $486.4 million was spent on highway projects in 1979 and $72.6 million was spent on improvements and maintenance.

      The total length of roads in Hong Kong maintained by the government at the end of 1979 was 1,146.7 kilometres, of which 344.8 kilometres were on Hong Kong Island, 340.7 kilometres were in Kowloon and 461.2 kilometres were in the New Territories.

      On Hong Kong Island, a number of major projects were completed. The Ap Lei Chau Bridge and its southern approach road to link the island of Ap Lei Chau to Aberdeen were completed. Works on the road through Aberdeen, from Shek Pai Wan Road to the wholesale fish market, were finished and Pok Fu Lam Road, between Mount Davis Road and Pok Fu Lam Reservoir Road, was widened to four lanes. The flyovers at Robinson Road/Old Peak Road junction and Robinson Road/Glenealy junction opened to traffic at the end of the year. The completion of these road works is expected to improve the traffic flow in the Mid-levels and to reduce the travelling time between Aberdeen and Central District.

      Good progress was maintained on several important road projects. Work proceeded on the Wong Nai Chung Gap Road/Stubbs Road flyover; the Pok Fu Lam Road/ Connaught Road West link; the foot-bridge system along Connaught Road in Central District; Aberdeen Tunnel; the Wong Chuk Hang interchange; the Canal Road flyover extensions; and the reprovisioning works for stage one of the Hong Kong Island Eastern Corridor. The Aberdeen Tunnel will connect the northern and southern parts of Hong Kong Island while the Hong Kong Island Eastern Corridor will provide a direct, fast link between Causeway Bay and Shau Kei Wan along the north shore. In anticipation of the opening of the Mass Transit Railway's Admiralty Station in Central District, the road and transport interchange system in the adjacent area was being prepared.

      In Kowloon, improvements to the busy junctions of Waterloo Road with Cornwall Street and Junction Road were completed. These road improvements were the first stage of a scheme to build an elevated road to relieve congestion in this area and to minimise the inconvenience to both traffic and pedestrians during its construction. In addition, the widening of Junction Road between Tung Tau Tsuen Road and Fu Mei Street was substantially completed.

Work continued on the second stage of the West Kowloon Corridor at Tai Kok Tsui. This section, which is part of the continuous elevated roadway, will provide a desirable bypass through the seriously congested Tai Kok Tsui area. The whole corridor will eventually provide a direct link between Yau Ma Tei and Lai Chi Kok. The construction of the approach roads at both ends of the Airport Tunnel progressed as scheduled. Foundation works were completed for a flyover at Wai Yip Street, which will provide a continuation of the eastern approach road to the Airport Tunnel to link the Kowloon Bay reclamation with Kwun Tong.

      In the New Territories, major completed projects included the widening of Castle Peak Road from Texaco Road to Tuen Mun Road; the provision of roads and drains for the Lai King Hill Road headland development; an access road to Kwai Chung Incinerator; the improvement of Tai Po Road from the Chinese University of Hong Kong to Tai Po causeway level crossing; a new bridge at Yuen Chau Tsai; the improvement of Ting Kok Road from Kwong Fuk Road to Tai Po Industrial Estate; the construction of Kwong Fuk Road foot-bridge; the reconstruction of Cedric Bridge and approach roads at Milestone 16, Castle Peak Road; and the phased improvements to South Lantau Road from Tong Fuk to Shui Hau.

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Work proceeded on the grade-separated intersection at Castle Peak Road and Texaco Road; the superstructure for the first stage of Tsuen Wan Bypass, linking Kwai Chung Road and Texaco Road; Tai Wo Tsuen interchange on Castle Peak Road; the improve- ment of Clear Water Bay Road from Hiram's Highway to Pik Uk and from Pik Uk to the Clear Water Bay Apartments; and improvements to South Lantau Road from Shui Hau to Shek Pik. Work to complete the Sham Tseng viaduct and the provision of a second carriageway for Tuen Mun Road between Tsuen Wan and Sham Tseng also commenced. New projects included the improvement of another section of Clear Water Bay Road between Anderson Road and the Clear Water Bay Apartments; the widening of Tai Lam Chung access road, and the realignment of Shing Mun Road adjoining the Lei Muk Shue secondary school site. Planning and detailed design work continued for the New Territories Trunk Road and the New Territories Circular Road System from Sha Tin, via Tai Po to Yuen Long.

During 1979, consultants appointed by the government studied alternative forms and alignments for the Lantau fixed crossing. They recommended that three bridges should link the outlying island of Lantau to Tsuen Wan New Town on the mainland of the New Territories, via the islands of Tsing Yi and Ma Wan.

Traffic management techniques and computerised surveillance and control methods con- tinued to facilitate the traffic flow on Hong Kong's roads in 1979. A comprehensive traffic surveillance and control study of major routes was carried out to assist in road planning. By the end of the year, there were 399 sets of traffic signals operating in Hong Kong, of which 114 sets were monitored by computerised control systems. A total of 2,202 new street lamps were installed.

Road Tunnels

There are two twin-tube road tunnels operating in Hong Kong. The Cross Harbour Tunnel provides four traffic lanes in two immersed tubes between the north shore of Hong Kong Island and Hung Hom in Kowloon. The government has a 25 per cent interest in this tunnel which opened in August, 1972, and is operated by the Cross Harbour Tunnel Company Limited. An eight category toll charge, ranging from $2 to $20, is levied on vehicles using the tunnel. In 1979, $194.4 million in revenue was collected from a total of 32.1 million vehicles.

The Lion Rock Tunnel links Kowloon with Sha Tin New Town and other areas of the north-eastern New Territories. Managed by the Transport Department, the tunnel began operating in November, 1967, as a single tube facility; following completion of a second tube and refurbishment of the original tube, it became fully operational as a twin-tube tunnel in October, 1978. The volume of traffic using the tunnel has steadily increased from a daily average of just over 5,000 vehicles in 1968 to 25,689 in 1979. The three category toll charge ($1, $1.50 and $2) produced $11.5 million from a total of 9.38 million vehicles in 1979. Two other twin-tube road tunnels are being built in Hong Kong. The Airport Tunnel, which passes under the runway of Hong Kong International Airport, Kai Tak, will form part of a through route connecting the Cross Harbour Tunnel at Hung Hom with the airport and the industrial area of Kwun Tong. It will be toll free.

Construction of the Aberdeen Tunnel, through Mount Nicholson, was proceeding in 1979. The Aberdeen Tunnel will link Aberdeen on the south side of Hong Kong Island with Happy Valley on the north side and then, at an elevated level via the Canal Road flyover extension, connect with the Cross Harbour Tunnel.

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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; the examination of vehicles; the administration of government road tunnels and off-street carparks; and the provision of on-street metered parking spaces. He also undertakes 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 road traffic legislation including an increase in taxi fares allied to the introduction of severer penalties for misconduct by taxi drivers. New sections were added to the principal Road Traffic Ordinance to provide for: the setting up of a Transport Tribunal; the compulsory mechanical examination of vehicles with the imposition of a charge; the power to refuse registration; powers to suspend vehicle licences and to issue vehicle repair orders; and the designation of vehicle examiners and examination centres. A general review of all road traffic legislation also was proceeding in 1979.

Licensing

During 1979, the Transport Department's five vehicle examination centres carried out 52,397 inspections. Most were in connection with the registration and licensing of vehicles, including goods vehicles first registered before 1971 which became subject to a compulsory annual examination from September 1, 1979. Inspection of these older goods vehicles was made possible by the opening of the new semi-automated multi-lane Kowloon Bay Vehicle Examination Centre at Hoi Bun Road, Kwun Tong. On October 1, 1979, the Road Traffic (Amendment) (No. 3) Ordinance 1978 came into effect. In brief, it provides for the charging of fees for vehicle inspections together with the authority to suspend vehicle licences if a vehicle is found to be unroadworthy.

The number of registered vehicles continued to rise in 1979 reaching 260,928 by the end of the year. Compared with 1978, this was an increase of 27,778 vehicles or 12 per cent. The bulk of the increase was in private cars; during the year a total of 20,713 private cars were registered. Detailed statistics are in Appendix 36.

     The demand for driving licences remained high. The total number of licences held by Hong Kong residents was 634,791 by the end of 1979 compared with 599,373 in 1978. A new series of vehicle registration marks starting with the letter 'C' began in August, 1979.

A new Traffic Accident Victims Assistance Scheme began operating in May. Under the scheme, immediate cash assistance is given to victims of traffic accidents and their depend- ants, irrespective of which party might be at fault in causing an accident. To finance the scheme, all driving licence holders are required to contribute $25 a year and vehicle owners $75 a year upon the issue or renewal of their licences. The Transport Department was made responsible for collecting the levies for this scheme and for crediting the amount to the Traffic Accident Victims Assistance Fund administered by the Director of Social Welfare. During the second half of 1979, government drivers were issued with ordinary Hong Kong driving licences enabling them to operate government vehicles and still be fully covered under the scheme.

HONG

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From the founding of Hong Kong in the 1840s when some 250 letters a day were handled to the one million letters and parcels now processed daily, the Post Office has kept in step with the times. A modern, efficient department, it has grown from a small, wooden building located on a site near St John's Cathedral in Central District to a network of 75 post offices strategically located throughout Hong Kong. The General Post Office, a notable landmark on the harbour waterfront, cur- rently handles the bulk of mail at some stage. However, the $53.5 million Inter- national Mail Centre in Kowloon will become the major mail processing centre when it opens in 1980. The centre will contain the most up-to-date equipment and use streamlined procedures to handle the growing volume of incoming and outgoing foreign mail, as well as local mail. In most areas of Hong Kong, there are two mail deliveries each weekday. The Post Office aims to deliver 95 per cent of mail arriving or posted in Hong Kong within one work- ing day and to despatch air mail overseas on the same day, if possible. It also provides the fast Speedpost service to 15 countries. During 1979, the Post Office

issued an estimated 190 million stamps in

14 denominations up to $20, including three special stamp issues on interesting aspects of Hong Kong. It was a far cry from 1862 when the first Hong Kong issue consisted of 1,040,160 stamps of seven denominations, of which the highest was 96 cents.

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     While the Post Office handles one million letters and parcels daily, its delivery service is still very much a personal one. A postman on a bicycle completes his morning round at the old village of Pan Chung in Tai Po.

COMMUNICATIONS AND TRANSPORT

Parking

157

Parking charges for all government car parks were increased in November to improve overall use and to ensure that a reasonable number of spaces became available throughout the day.

A comprehensive review of parking policy was being carried out by a working group in 1979 in which every aspect of parking was being examined including policy regarding the provision and management of car parks, the problem of lorry parking, parking in the new towns of the New Territories and at Mass Transit Railway stations, and parking charges.

       Parking facilities are provided by the government in eight multi-storey car parks, with 4,728 parking spaces, and four temporary open-air car parks with 1,044 parking spaces. Two of the four open-air car parks cater specially for commercial vehicles.

Parking facilities are also provided by private enterprise in about 40 multi-storey and open-air car parks with some 12,000 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 11,319 metered spaces of which 980 are specially for goods vehicles. Payment is required from 8 am 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.

       In November, the Legislative Council approved proposals to raise the fixed penalties for parking and moving traffic offences. Penalties for illegal parking will be increased from $30 to $70 in 1980.

Shipping

Hong Kong is the world's seventh largest port in terms of tonnages of shipping using its facilities, cargo handled and the number of passengers carried. 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 adminis- tration by the Port Committee and the Port Executive Committee, 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 ter- minals in the world, handled the equivalent of 1.3 million twenty-foot containers in 1979. The terminal has six berths totalling more than 2,300 metres fronting on to about 85 hectares of cargo handling space, which includes container yards and container freight stations. Six 'third generation' container ships can be accommodated and worked simul- taneously at these berths, all of which are operated by private companies or consortia. In 1979, some 9,800 ocean-going vessels called at Hong Kong and loaded and discharged nearly 28 million tonnes of cargo. This included 21.3 million tonnes of general goods, 54 per cent of which was containerised cargo.

Despite the impact of containerisation, a considerable amount of dry cargo handled in Hong Kong is still transported at some stage by about 1,900 lighters and junks. The

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ratio of mechanised junks has slightly decreased to about 35 per cent of the total. Shipboard gear is normally used for loading and discharging break-bulk cargo, but floating heavy lift cranes are available when required.

      On average, conventional ships working cargo at buoys are in port for 2.8 days. Container ships are here for just 21.5 hours including steaming, berthing and unberthing time. These are probably the fastest turn-round times for ships in the Far East and have been facilitated by the modern equipment that has been brought into use by the wharf and godown companies. A mobile floating roll-on-roll-off ramp is operated by one of the Kwai Chung Container Terminal operators which, in September, began building a 12-storey multi-purpose godown with a usable floor area of 52,400 square metres, the first two floors of which will serve as a container freight station. Another 16-storey godown with a usable floor area of 79,000 square metres is located nearby at Tsuen Wan and is equipped with container lifts serving all floors.

       Most wharves and terminals are provided and operated by private enterprise and they are capable of accommodating vessels of up to 305 metres in length, with draughts of up to 12.2 metres. Facilities in the public sector include the Hong Kong-Macau Ferry Terminal and the public cargo working areas at Wan Chai, Yau Ma Tei, Tsuen Wan and Kwun Tong. 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 movements, thus helping to maintain efficiency and reduce operational costs. Safe anchorages are available for deep draught vessels.

       There is considerable tourist and other sea passenger traffic between Hong Kong and Macau, and in 1979 more than 6.5 million passengers were carried by the jetfoils, hydrofoils and conventional ferries plying this route. A further 160,000 passengers were carried on the hoverferry service between Hong Kong and Guangzhou (Canton) which is operated by the Hongkong 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 6.30 am to 6 pm 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.

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 interconnected by telephone, radio-telephone and teleprinter circuits. The Marine Department operates a continuous VHF radio-telephone port operations service based on international maritime frequencies, which gives com- prehensive marine communications throughout the harbour and its approaches. Marine Department teleprinter facilities are linked directly to users on a world-wide basis.

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There is also a continuously monitored disaster network that links the Marine Depart- ment'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 conjunction with technical experts from the United Kingdom Government, the Marine Department has continued to develop plans for the installation of an electronic surveillance system for the port.

      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 228 metres in length and 26.8 metres in beam. New facilities on the west coast of Tsing Yi Island have continued to develop and there are now five floating dry docks located off Tsing Yi, the largest of which has a lifting capacity of 100,000 tonnes deadweight. Hong Kong has some 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 20,000 seamen on board 1,400 vessels of all flags. The Hong Kong Merchant Navy Training Board met twice in 1979 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 18 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 Kowloon and Kwai Chung provide recrea- tional and welfare facilities for visiting seamen of all nationalities.

Civil Aviation

A steady growth in air transport was experienced throughout 1979 with significant increases in passenger traffic and cargo throughput. Hong Kong International Airport, Kai Tak, which is one of the busiest airports in Southeast Asia, handled more than 6.2 million passengers, an increase of 12 per cent over 1978. In addition, nearly 550,000 travellers stopped over briefly in transit at the airport.

The air freight industry was buoyant throughout the year with a total throughput of some 260,000 tonnes, 12.5 per cent above the preceding year's performance. The value of goods carried was estimated to be some $36,000 million. Thus, the volume of freight forwarded by air carriers accounted for more than one-fifth of Hong Kong's domestic imports in terms of value, almost one-quarter of its exports, and about one-third of the

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re-export trade. The United States remained the major market for Hong Kong's exports sent by air accounting for more than 40 per cent of products and, for imports air-freighted into Hong Kong, Japan took the lead with nearly 25 per cent of the total.

      The move by airlines towards wide-bodied aircraft to cope with the growing passenger traffic continued; at the end of 1979 about half of the services in and out of Hong Kong were wide-bodied aircraft capable of carrying 300 or more passengers.

       Aircraft movements for the year increased by about six per cent from 52,642 to 55,928. Two more American airlines introduced scheduled services to Hong Kong in the second half of the year. In November, the governments of the United Kingdom and the People's Republic of China officially signed a bilateral air services agreement setting out, inter alia, the pattern for the future development of direct air links between the United Kingdom, Hong Kong and major cities in China.

      In 1979, British Airways was the sole operator of scheduled services between Hong Kong and London. However, in November, the Air Transport Licensing Authority granted licences to Cathay Pacific Airways and British Caledonian Airways to operate additional scheduled services on the Hong Kong to London route from April, 1980. Laker Airways, which also applied to operate some of the additional scheduled services, was not granted a licence. In arriving at its decision, the authority took into account comprehensive sub- missions made by the three airlines, the Hong Kong Government, and other parties at a public hearing.

      The Air Transport Licensing Authority is an independent statutory body established under the Air Transport (Licensing of Air Services) Regulations. Under these regulations, the power is vested with the authority to grant or to refuse applications from airlines, registered in the United Kingdom and its dependent territories, to operate scheduled air services in and out of Hong Kong.

      In 1979, the Licensing Authority also granted a licence valid for five years to Royal Brunei Airlines to operate scheduled services between Hong Kong and Brunei.

During 1979, a total of 32 airlines were operating more than 950 scheduled passenger and cargo services each week between Hong Kong and the United Kingdom, the People's Republic of China, North and South America, Europe, East and South Africa, the Middle East, Australasia, the South Pacific region, and Asian countries. In addition, some 20 airlines operated about 50 non-scheduled services a week.

A most welcome sign during the year was the gradual introduction of budget fares by a number of airlines. Typical examples were the implementation of cheap, advance purchase, excursion tour fares between Hong Kong and Australia and the 'round-the-world in 80 days' cut-fare tickets.

       One big setback in the development of air travel in 1979 was the shortage of jet fuel and its increasing cost. Many airlines were forced to halt or cut down on the number of flights on their less lucrative routes and all major airlines had to push up standard fares and cargo rates to balance their books. Hong Kong was not hard hit by the fuel shortage but, in general, travellers had to pay more for their air trips abroad in the second half of the year.

Hong Kong International Airport, Kai Tak, like most large international airports, has been undergoing a long-term development programme to extend its facilities to cope with demand. The current phase of development, which is the last in a four-stage extension programme, was proceeding during 1979 and is scheduled for completion in 1982.

In the passenger terminal, extensive renovation was being carried out to bring the facilities at both the departure and arrival levels of the older half of the building up to the standard of

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the new extension. The modernisation programme calls for the extension of the arrival and departure halls, the addition of more check-in counters and shop spaces, installation of new immigration clearance counters and customs benches, as well as two more baggage reclaim units.

On the passenger apron, the construction of two more 'jumbo' piers and a transfer vehicle dock was nearing completion; these facilities will be operational early in 1980 after the installation of associated aerobridges. Also under construction was a restaurant block, integrated with the terminal building, which will provide more room for catering services. In February, a new airport fire station was completed providing permanent accommoda- tion for the airport fire contingent. Later, in May, a new slip road opened providing road traffic at the departure level of the terminal building with a direct exit from the airport. A multi-storey car park with 450 parking spaces came into use in August.

As Kai Tak Airport's future development is severely restricted by operational constraints such as the hilly surroundings, the proximity of urban areas, and the scarcity of land, steps have been taken by the government to determine the feasibility of building a replace- ment airport. In March, a consultancy group was engaged to carry out a series of studies for a replacement airport at Chek Lap Kok Island, off Lantau Island. It will produce a conceptual airport layout plan, investigate factors which could influence aircraft operations, and produce estimates of its cost. The consultants have so far held three joint working sessions with government departments and branches, and their final report is expected to be presented to the government early in 1980 for consideration.

Postal Services

With the opening of another post office during the year, there are now 75 post offices operating in Hong Kong, including two mobile post offices.

Construction progressed during the year on the $53.5 million International Mail Centre which is scheduled to be commissioned in 1980. When opened it will be the major mail processing centre in Hong Kong and will handle all international mail.

       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 1979, the number of letters and parcels handled reached a record level of 371 million items, representing an increase of 13 per cent over 1978. Local mail, which ac- counted for 51 per cent of the total volume of mail items handled, increased by 12.3 per cent. Surface parcel postings was the only category of traffic which showed a sharp decrease: a drop of 10 per cent was recorded compared with 1978. The decline in the posting of parcels destined for China was the main contributory factor.

Air mail traffic continued to increase. During the year, more than 4,200 tonnes of mail was despatched by air and almost 2,500 tonnes of air mail was received from abroad, representing increases of 22.9 per cent and 12.7 per cent respectively over 1978.

Fifteen countries are now served by Speedpost. In addition to the links formerly establish- ed with Australia, Belgium, Brazil, France, Japan, the Netherlands, Singapore, Taiwan, the United Kingdom and the United States, the service in 1979 was further extended to Macau, Kuwait, South Africa, South Korea and Switzerland. The continued popularity of this speedy and reliable service is reflected in the number of items handled which amounted to more than 130,000 items during 1979 - an increase of 76 per cent over 1978. The Post Office has appointed two postal service representatives who maintain regular contact with the business community and other users of postal services and give advice

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on postal matters. They encourage customers to use the postal service efficiently and seek to identify all practical means of increasing profitable postal business while maintaining existing traffic.

There were three special stamp issues in 1979. Three stamps were issued in January based on the theme, 'Hong Kong Industries', depicting the electronic, toy and textile industries. In June, four stamps were issued with Hong Kong's butterflies as the subject. Three stamps were issued in October to mark the opening of part of the first stage of the Mass Transit Railway.

Agency services carried out by the Post Office on behalf of other government departments included the payment of social welfare benefits amounting to $13 million a month.

Telecommunications Services

The Postmaster General is the Telecommunications Authority in Hong Kong and administers the Telecommunications Ordinance, which governs the establishment and operation of all telecommunications services. He also acts as adviser to the government on matters concerning the provision of public telecommunications services including internal and international telephone, telegraph, telex and data services, and the technical aspects of radio and television broadcasting.

To ensure that the radio frequency spectrum is utilised effectively, the Post Office licenses, under the Telecommunications Ordinance, all forms of radio communication within Hong Kong. It maintains surveillance of the radio frequency bands to detect illegal transmissions and interference emanating from sources within and around the territory. It also conducts inspections of ships' radio stations to ensure compliance with the International Convention for the Safety of Life at Sea.

In addition, the Post Office provides advisory and planning services for the electronic, radio and telephone requirements of government departments. During 1979, projects undertaken included territory-wide radio networks for the Prisons Department and the Water Supplies Department, and large telephone installations for the Inland Revenue Department and several major government hospitals. At the end of the year, a command and control network was commissioned for the Fire Services Department. Installation and maintenance facilities for radio and electronic equipment, including a large number of electro-medical items for the Medical and Health Department, are provided by two work- shops in Kowloon and Hong Kong.

The Hong Kong Telephone Company Limited, operating under franchise from the government, provides telephone and other telecommunications facilities in Hong Kong. The company is one of only 22 administrations in the world which serve more than one million telephones. By June, 1979, almost 1.5 million telephones were connected to the network, giving Hong Kong a density of 30 telephones for every 100 people, the highest in Southeast Asia. Service can normally be provided on demand anywhere in the territory. There is a flat rate rental which allows unlimited free calls within Hong Kong. The network is fully automatic, with 63 exchanges operating with equipment ranging from electro-mechanical to the most sophisticated common control electronic apparatus. A ship-to-shore telephone service is available which enables calls to be made into the public network within minutes of a ship mooring in Victoria Harbour. Facilities are also provided for data transmission over the telephone network.

In 1979, a new, fully automatic, direct dial radio paging service was introduced to join the tropical cyclone warning service already in use.

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Hong Kong's international telephone service is provided by the Hong Kong Telephone Company in conjunction with Cable and Wireless Limited. Apart from operator-connected calls to virtually anywhere in the world, International Direct Dialling calls can be made to more than 50 countries.

Other international telecommunications services are provided by Cable and Wireless Limited. These include public telegram, international and local telex, international leased telegraph and telephone circuits for private communication networks, international television and voicecast, photo-telegram, facsimile, public switched data, International Data Access (IDAS) and Bureaufax. International facilities are provided by satellite, cable and tropospheric, microwave and high frequency radio systems.

15

The Media

ROM

価格

     HONG KONG has a flourishing free press with 114 newspapers and 326 periodicals catering to a high readership market. Television has developed as the most popular entertainment medium with an estimated daily audience of three million. Two major radio stations with eight channels in Chinese and English broadcast almost 1,000 hours of programmes each week. There are 80 cinemas which sold approximately 65 million tickets during 1979.

The Press

Hong Kong has the second highest newspaper readership in Asia. Some 350 copies of newspapers are printed for every 1,000 people in Hong Kong. Only Japan exceeds this figure with 490 copies to every 1,000 people. The world average is 102 to every 1,000 people. Five English language and 46 Chinese language newspapers are published each day. These are a portion of the 114 newspapers and 326 periodicals registered with the Registrar of Newspapers. The combined circulation of the daily English language papers is estimated at 135,000 while four of the Chinese dailies sell more than 100,000 copies each. Generally the price of newspapers is below $1.

Hong Kong is the base of Southeast Asian operations for many international radio and television networks, newspapers, magazines and news agencies. International news agencies represented include United Press International, Associated Press, Agence France Presse, and Reuters.

Several organisations represent and cater for people working in the news media in Hong Kong. The Foreign Correspondents' Club, Hong Kong, comprises correspondent, jour- nalist and associate members. Its professional activities include lectures, news conferences, briefings and film shows. Club premises contain bar, restaurant, library and games facilities. Visiting correspondents and journalists may use typewriters and office space.

The Hong Kong Press Club, located in Wan Chai, provides a variety of facilities for journalists. The office of the Hong Kong Journalists' Association (HKJA) is based at the Hong Kong Press Club. The HKJA seeks to raise professional standards by pressing for better training, pay and conditions in journalism, as well as counselling its members in the event of disputes with employers.

Chinese and English language newspapers are represented by The Newspaper Society of Hong Kong, which has 25 members and four associate members. It is empowered to act in matters affecting the interests of local newspapers, the society or its members.

There is also a Hong Kong office of the Press Foundation of Asia whose objective is to help develop and expand the press in Asia. The PFA is an association of Asian publishers and editors representing some 300 publications. It co-ordinates the functions of seven national press institutes - from New Delhi to Korea.

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       It is recognised that the standard of training for journalists in Hong Kong must be improved. Following recommendations by the Hong Kong Training Council, the Governor has appointed a training board to examine manpower training in journalism.

Television

      Hong Kong has two enfranchised commercial broadcasting stations - Television Broad- casts Limited (TVB) and Rediffusion Television Limited (RTV). Both stations provide separate Chinese and English language services and, in total, broadcast a daily average of 60 hours of programming reaching an estimated three million viewers. Television has established itself as Hong Kong's principal leisure activity. Most people are ardent viewers and more than 90 per cent of all families possess at least one television set.

Both TVB and RTV maintain large, well-equipped studio and office complexes and use the latest production and transmission techniques. The UHF 625-line PAL system is standard and virtually all transmission is in colour.

       The stations are licensed under the Television Ordinance, the provisions of which 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 programme, advertising and technical standards.

The most popular programmes are the locally-produced Chinese drama and variety series, which often command audiences of more than two million viewers. The contem- porary 'social drama' serials, which are broadcast daily, enjoy high ratings. In this category, a topical serial concerning the life of a Vietnamese refugee in Hong Kong attracted large audiences. Equally popular were the lavishly-costumed kung fu epics in which acrobatic actors and actresses used complicated martial art techniques and Chinese weaponry. The marked preference for locally-produced programmes has resulted in the stations becoming large-scale programme production units to an extent generally not equalled by television stations of a similar size elsewhere.

       On the English language services, viewers are offered a wide choice of the more popular British and American television series. Many of these programmes are dubbed into Cantonese for screening on the Chinese services.

       In addition to its major function as a source of entertainment, television is also used as an educational medium. The government Education Television Service (ETV), which utilises the transmission facilities of the commercial stations for eight hours each school day, is watched by 620,000 primary and secondary schoolchildren. In 1979, the Education Department considerably expanded its provision of colour video cassette recorders to enable schools to record various programmes for later use.

The output of government-made programmes by Radio Television Hong Kong (RTHK) for transmission by the two commercial companies increased by 50 per cent during the year. A lightweight outside broadcast unit and more staff contributed to an output peaking at 74 hours each week. Much of the new programming was for children.

Social drama series in Cantonese produced by RTHK continued to achieve high ratings with Below the Lion Rock, in its eighth year; Sunny Sha Tin, the world of a new housing estate seen through children's eyes; Under the Same Roof, which deals with family problems caused by the change from traditional Chinese concepts; and Born Innocent, looking at the circumstances under which children get into trouble and the workings of the juvenile court. Another new series, On the Beat, was made in conjunction with the Royal Hong Kong Police Force. A 'mini' series for the Independent Commission Against Corrup- tion dealt with public attitudes towards forms of corruption.

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RTHK's public affairs output was revamped during the year and two new public affairs magazines, one in Chinese and one in English, were launched in the autumn. The Chinese- language documentary series, The Common Sense, continued to draw large audiences. Government public affairs television programmes, which include public service informa- tion messages made by RTHK for the Information Services Department, are transmitted by the television companies under the terms of the Television Ordinance.

Sound Broadcasting

There are nine radio channels in Hong Kong. Five are operated by Radio Television Hong Kong (RTHK) the government-financed station, three by Commercial Radio and one by the British Forces Broadcasting Service.

RTHK's year was one of consolidation with the emphasis on achieving more 'depth' to the almost 600 hours of weekly airtime. News and current affairs programming were extended and more general feature programmes of local interest were mounted. However, there was still a wide choice of popular music shows, drama, classical music, light enter- tainment and variety programmes.

RTHK's newsroom operates round-the-clock, providing an hourly news service when the station is on air. During the year, the morning news magazine programmes in both Chinese and English were extended to one hour. The programmes contained a balanced mixture of news, interviews, sport and finance. Increasing use was made of special overseas reports and staff were sent to cover the United Nations-sponsored conference on refugees in Geneva and the start of the direct Hong Kong to Guangzhou (Canton) hovercraft and train services.

Special events during the year included live broadcasts of sporting events and more 'community involvement' programming. Crowds of several thousand people demonstrated the popularity of the Chinese service's live outdoor performances of Cantonese opera and music shows. Local history was a popular subject and The Hidden Years, a sequel to the series which traced the fall of wartime Hong Kong, traced the years of occupation and life in the prisoner-of-war camps.

Classical music output made a number of advances with greater emphasis on broadcasts by visiting orchestras and artistes. Highlights of the year included broadcasts of per- formances during the Hong Kong Arts Festival and the Festival of Asian Arts, with maximum use being made of RTHK's FM stereo capability.

       After a run of almost 17 years, the Cantonese course Kwang Tung Wah was replaced by a new simpler series, Everyday Cantonese. As a prelude to it, Barefoot Cantonese, a successful series which introduced one phrase each day, was introduced.

       The three services of Commercial Radio made considerable progress during the year, especially in outside broadcasts and public service broadcasting. Transmission hours were increased to 19 hours a day on each of the Chinese-language services bringing them in line with the English-language service. Commercial Radio also made good use of overseas reports and sent staff to Bangkok for live broadcast coverage of the Asian Games and to Guangzhou (Canton).

      The station continued its policy of jointly presenting live shows in conjunction with local impresarios. Many outside broadcasts were conducted from shops and shopping arcades as well as from Ocean Park. A series of 'disco' cruises in the harbour proved extremely popular. The year saw further growth in both audiences and commercial revenues demonstrating the continued local interest in radio. Commercial Radio raised more than $500,000 for charity, the main beneficiary being the Community Chest.

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      The United Kingdom Ministry of Defence operates the British Forces Broadcasting Service Hong Kong from studios at Sek Kong, in the New Territories. Designed to serve the particular requirements of the British and Gurkha forces stationed in Hong Kong, the station's brief is to broadcast programmes of entertainment, information and education, providing a link with home for servicemen, their families and the civilian component of the forces. The station operates one AM and two FM transmitters and produces 60 hours of programmes a week in English and Nepali. A more powerful 10 kW MF transmitter is being installed in the New Territories to replace the two kW one which has been in service for nearly 30 years. Programme plans for 1980 call for a virtual doubling of the station's output. The station is staffed mostly by Gurkha soldiers, with a small cadre of professional broadcasters and programme and engineering staff.

Government Information Services

The Government Information Services (GIS) provides a communications link between the government and the people through newspapers, magazines, radio, television and other media. The department has a staff of 340 people and is organised in three main divisions - news, publicity and public relations. During the year, one of its major functions was to create an awareness world-wide of the problems the government faced with the influx of refugees from Vietnam and illegal immigrants from China.

       The News Division is responsible for channelling government information to the media. It operates a 24-hour news service through its teleprinter and facsimile networks which are directly linked with all major newspapers, news agencies, and radio and television stations. In 1979, the News Division handled a total of 228,940 inquiries from the media - an average of about 627 a day representing an increase of 62 per cent over 1978.

       During typhoons, severe tropical rainstorms or any other emergency, the division's newsroom becomes a communications centre which co-ordinates information and, mainly through radio and television, keeps the public informed of latest developments. When Typhoon Hope hit Hong Kong in August, GIS staff spent some 1,500 man hours on emergency duty in the newsroom and at various key posts in other government depart- ments which were also manned.

      Departmental information units are now operating in 20 government departments and branches, including one established at the Kowloon-Canton Railway during the year. The objective of the units is to improve the flow of departmental information to the media and to promote a closer relationship with the public.

       An Overseas Public Relations Section assists visiting correspondents, television and film teams, and works with news agencies and overseas journalists based in Hong Kong. International interest in the plight of the Vietnamese refugees and the rise in the number of illegal immigrants from China increased substantially the workload of the section during the year. In 1979, GIS officers arranged programmes, handled inquiries and gave briefings to 690 visiting journalists, film teams and broadcasters.

Many publications are produced by the GIS, ranging from daily news-sheets and a wide variety of leaflets and fact sheets on government and other activities to the Hong Kong Annual Report, which has become the best-selling general hardback book in Hong Kong. Sales of government publications rose by 34 per cent to more than $7.8 million in 1979, compared with $5.8 million in 1978.

      The department produces in English a daily news-sheet, The Gist, which summarises news items from Chinese newspapers and, Opinion, a weekly review of Chinese press comment. To keep people overseas up to date on local events, a weekly news-sheet in

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English, The Week in Hong Kong, and a 12-page fortnightly newspaper in Chinese, Hong Kong News Digest, are also published.

      Through its Publicity Division, the GIS plans, creates and co-ordinates many community service campaigns such as anti-narcotics activities, fire prevention, road safety, the fight against crime and the drive to keep Hong Kong clean. During 1979, a photographic contest, Hong Kong in Progress, was organised in conjunction with the Photographic Society of Hong Kong to promote Hong Kong locally and overseas. About 150 entries were selected for two exhibitions held in London in August.

       The Information Section of the Hong Kong Government Office in London works closely with the GIS to assist the British media with information about events and newsworthy developments in Hong Kong, especially those associated with the government.

Information Branch

      The work of the GIS, RTHK and much of the Television and Entertainment Licensing Authority is co-ordinated by the Information Branch of the Government Secretariat, headed by a Secretary for Information. The creation of the branch as a separate entity during 1979 reflects the high level of importance that the government attaches to keeping the community well-informed about matters affecting their lives.

Film Industry

      Reversing the trend in recent years, the number of cinemas increased to 80 during 1979 compared with 75 in 1978. Approximately 65 million cinema tickets were sold, demonstrat- ing that Hong Kong people continued to be enthusiastic cinema-goers despite an increase in admission prices of between 10 and 15 per cent.

Hong Kong is an important film producing centre. The number of locally-produced films increased from 130 in 1978 to 137 in 1979. At the same time, the number of imported films decreased from 550 to 470. While some imported films attract large audiences, box-office successes in other countries do not guarantee that a film will do well in Hong Kong. A relatively low-budget, locally-produced film, which happens to strike the right note, can make enormous profits for its producers. Nevertheless, the top-grossing film of the year was the James Bond film, Moonraker, with box office receipts of nearly $8 million. The trend to produce films in Cantonese rather than in Mandarin continued during the year and of the 136 films produced only 37 were in Mandarin. As usual, most locally- produced films were filled with action with the emphasis on kung fu. These martial arts films are enjoying a resurgence in popularity with a new development being the introduction of a strong comedy element.

There was a decline in the number of films with sexually explicit themes being imported into Hong Kong. This is because the recent trend in the West has been towards more explicit scenes to a degree which is not acceptable in Hong Kong. All films intended for exhibition in Hong Kong must be submitted to the Film Censorship Authority. Censorship standards are drawn from ascertained community views. A panel comprising more than 100 members of the community assists the Panel of Film Censors in determining levels of acceptability in filmed entertainment.

Printing and Publishing

     Established as a major printing centre, Hong Kong companies handle work from many parts of the world particularly Australia, Britain and the United States. The prime attrac-

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tion is that top quality printing is available at substantial savings compared with other places, with first class distribution and communication facilities readily available.

       While Hong Kong's imports of printed material in 1979 amounted to $127.5 million, its exports were valued at $398 million, compared with $99 million in 1971. Of the total volume exported, books and pamphlets made up 64 per cent with the remaining 36 per cent comprising newspapers, journals, periodicals, calendars, packing paper and labels.

       In 1979 an estimated total of 3,500 book and periodical titles were published compared with 1,500 in 1975. Several publishers have established offices in Hong Kong to print top quality magazines which have an international circulation. Publications produced include the Far Eastern Economic Review, Asiaweek, The Asian Wall Street Journal, and the Asian editions of Time, Newsweek and more than 700,000 copies a month of Reader's Digest. The production of textbooks makes up a significant proportion of the number of book titles published. In contrast to the 1960s when nearly all English language textbooks were imported, Hong Kong publishers now meet approximately 80 per cent of the total local demand.

About one-quarter of Hong Kong's 1,880 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 important printing nations. Electronic colour-engraving machines are 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. There is fully automated book-binding and finishing equip- ment. The other 75 per cent of printing firms use traditional hot metal typesetting and letterpress printing methods to produce small-scale printing such as letterheads, posters, wrappers and some textbooks.

16

The Armed Services

and Auxiliary Services

部和三 輔軍 隊助」

      BECAUSE of the dramatic escalation in the numbers of illegal immigrants from China and refugees from Vietnam, the Armed Forces were called upon to increase their operations and support during 1979.

       The Royal Navy, the British Army and the Royal Air Force are all represented in Hong Kong. At the beginning of 1979, the Hong Kong garrison comprised five Navy patrol craft, a Gurkha engineer regiment, a Gurkha signal regiment, one United Kingdom and three Gurkha infantry battalions, one Army helicopter squadron equipped with Scout helicopters and one Air Force squadron equipped with Wessex helicopters.

However, owing to the influx of illegal immigrants from China and refugees from Vietnam during the year, it was necessary to bring in reinforcements. The Hong Kong garri- son was strengthened by a United Kingdom-based infantry battalion and two Gurkha infantry companies from Brunei; more naval craft and helicopters; and increased Air Force support.

      The Army, working with the Royal Hong Kong Police Force, greatly expanded its anti- illegal immigration operations. Previously, Army patrols had concentrated mainly on the New Territories' mainland border with China, within the Frontier Closed Area. However, this was extended to include the entire land perimeter of Hong Kong and the outlying islands. In Hong Kong waters, there was increased naval activity in support of the police force's Marine District.

      The Armed Services operate in Hong Kong under the overall command of the Com- mander British Forces. 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 maintaining security and stability and to sustain confidence in the United Kingdom's intention to maintain the British position in Hong Kong.

      The size and composition of the garrison, and the contribution Hong Kong makes towards the cost of keeping it, 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 United Kingdom undertakes to reinforce the garrison should the circumstances so dictate.

As part of the Defence Costs Agreement, Victoria Barracks was released to the Hong Kong Government in March, 1979. Headquarters British Forces moved into the new tower block in HMS Tamar, which was formally opened by His Royal Highness the Prince of Wales during his visit to Hong Kong in March.

Royal Navy

The Royal Navy is under the command of the Captain-in-Charge, Hong Kong. Until mid-1979 the naval forces consisted of the five patrol craft (ex TON-class minesweepers)

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of the Hong Kong Squadron. Owing to the growing number of illegal immigrants from China and refugees from Vietnam, additional forces were added consisting of two Sea King helicopters, two SRN 6 hovercraft and a fast patrol boat. These forces operated from Sek Kong, Stonecutters Island and the naval base at HMS Tamar.

The principal task of the Royal Navy is to support the Hong Kong Government in maintaining the integrity of Hong Kong waters. In practice this primarily involves support- ing the Royal Hong Kong Police Force in intercepting illegal immigrants from China and refugees from Vietnam. In addition, the Navy carried out almost continuous patrols by air and sea outside Hong Kong waters to intercept large ships carrying Vietnamese refugees. The Captain-in-Charge has a responsibility for search and rescue operations in the South China Sea within the Hong Kong flight information region as far south as a latitude of 15° North. The Royal Navy maintains a small clearance diving team which assists the police in the recovery of drugs and stolen property, as well as routine naval diving tasks. The Navy has a total permanent strength of about 600 personnel principally based in HMS Tamar. This number was considerably increased by reinforcements in 1979. Of the permanent strength of 600, about 250 are British personnel, 270 are locally-entered Chinese ratings of the seaman, engineering and supply branches and about 60 are locally-employed civilians. A further 500 locally-recruited merchant seamen and storehouse men serve world- wide on 9 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 a further 260 Chinese sea-going civilians from Hong Kong.

In addition to the main operational tasks, the Royal Navy carries out tasks to help the local community. The principal organisations supported are the Hong Kong Sea Cadet Corps, of which the Captain-in-Charge is Chairman of the Area Committee, and the Hong Kong Sea School at Stanley. Considerable support is given to both organisations by the ships of the Hong Kong Squadron which regularly take the boys to sea. In addition, the Navy provides sea transport for other service projects, repairs electricity generators in remote villages and receives visits from many youth groups.

      When conditions permit, the ships of the Hong Kong Squadron visit other countries in the region to provide ocean training for the crews, to exercise with other navies, and for a change from their patrolling duties in Hong Kong.

The Army

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 formation - the Gurkha Field Force - and logistic units are grouped as support troops under the command of the Deputy Commander British Forces.

Permanently stationed in Hong Kong are the Queen's Gurkha Engineers and the Queen's Gurkha Signals.

Infantry battalions stationed in Hong Kong during 1979 were: 1st Battalion the Royal Green Jackets; 1st and 2nd Battalions of the 2nd King Edward VII's Own Gurkha Rifles; 6th Battalion Queen Elizabeth's Own Gurkha Rifles; and the 7th Battalion Duke of Edinburgh's Own Gurkha Rifles.

      Other major units include the Training Depot Brigade of Gurkhas; Composite Ordnance Depot Hong Kong; the Gurkha Transport Regiment; the British Military Hospital; 50 Command Workshops Royal Electrical and Mechanical Engineers; Depot Hong Kong Military Service Corps; and the Royal Hong Kong Regiment (The Volunteers).

In addition reinforcement units included: 1st Battalion the Argyll and Sutherland Highlanders (Princess Louise's) later replaced by 42 Commando Royal Marines from

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the United Kingdom; and two companies from 10th Princess Mary's Own Gurkha Rifles from Brunei.

       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 1979 the large numbers of illegal immigrants from China attempting to reach Hong Kong across the northern land border, combined with those who attempted to land on the coastal perimeter, resulted in the full and extended deployment of all infantry battalions and the arrival of reinforcement units to counter this influx.

In July, 1979, the Royal Army Ordnance Corps Composite Ordnance Depot at Blackdown Barracks, San Po Kong, was awarded the Wilkinson Sword of Peace for the Army. The sword was awarded in recognition of the depot's community relations activities during 1978. These activities included the organisation and running of six adventure training camps attended by several hundred young people, many from deprived backgrounds; organising parties for the disabled; and the sponsoring of visits to the depot by several hundred children. The high standard of individual training in Hong Kong-based units was again demon- strated in the 1979 shooting competition at Bisley in the United Kingdom, an event in which all units of the British Army are eligible to compete. This was won by the 2nd Battalion of the 2nd King Edward VII's Own Gurkha Rifles. Major R. H. Coleman, 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.

Royal Air Force

The Commander Royal Air Force (Hong Kong) has under his direct command No. 28 (Army Co-operation) Squadron, which is based at Sek Kong with eight Wessex helicopters. The Royal Air Force station, co-located with the Headquarters of the Gurkha Field Force, is ideally placed and equipped to perform its primary role. This is the rapid movement of troops and supplies in support of the Gurkha Field Force, Army Support Units and the Royal Navy. The Wessex helicopter can carry up to 12 men or 614 kilograms of freight either internally or underslung. Its lift capacity, versatility and safety margin makes it well- suited to the conditions and tasks of Hong Kong.

       The ability of No. 28 (Army Co-operation) Squadron to ferry troops and equipment has been of great value in anti-illegal immigration operations. The helicopters have provided a quick means of interception over inhospitable terrain and on outlying islands, and a capability for resupplying troops in remote areas.

As well, the squadron has assisted the Queen's Gurkha Engineers in building permanent military installations on inaccessible sites. The helicopters have flown everything from concrete mixers and cement aggregate to the prefabricated buildings themselves. They have also been used by the Hong Kong Government in a wide variety of tasks including support for civil engineering projects. The Wessex also have a fire-fighting capability for which a special underslung bucket is used.

       No. 28 (Army Co-operation) Squadron is especially proud of its search and rescue opera- tions and the medical evacuation role which it shares with the Royal Hong Kong Auxiliary Air Force. The Wessex have flown more than 500 medical evacuation missions in Hong Kong. Among its many functions, the squadron provides the air traffic control services at Sek Kong and a territory-wide air traffic advisory service.

Two further squadrons support the flying squadron: an engineering squadron and an administrative squadron. Not all Royal Air Force personnel are based at Sek Kong. They also serve at Headquarters British Forces, at the RAF Airport Unit which co-ordinates the

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handling of military aircraft passing Kai Tak, and in the provost and security services (RAF) at Blackdown Barracks in San Po Kong.

Royal Hong Kong Regiment (The Volunteers)

The Royal Hong Kong Regiment (The Volunteers) is a light reconnaissance regiment which operates in support of the British Army in Hong Kong, in both internal security and reconnaissance roles.

      The regiment has more than 700 volunteers and is organised into four reconnaissance squadrons, a home guard squadron and a headquarters' 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.

      The year, 1979, was a demanding one for The Volunteers. Owing to the increased number of illegal immigrants from China attempting to enter Hong Kong, the regiment was asked to assist the British Army in its operations. In June, this involvement increased when the regiment was placed on a limited call out for active service under the Royal Hong Kong Regiment Ordinance. Volunteer soldiers participated in border patrols and acted as guides and interpreters for the regular forces during the year. The regiment performed in a pro- fessional manner and was praised for its enthusiasm, military efficiency and approach. Employers acted in a co-operative and public-spirited way by releasing the volunteer soldiers for these duties.

During 1979, the Royal Hong Kong Regiment also commemorated its 125th anniversary, and many celebrations were held to mark the occasion.

      The regiment continues to have a large number of people waiting to enlist. The training commitment is one weekend, plus either two evenings or one Saturday afternoon each month, and two one-week camps each year. Selected volunteers attend Regular Army courses in the United Kingdom, Hong Kong and elsewhere.

Royal Hong Kong Auxiliary Air Force

The Royal Hong Kong Auxiliary Air Force, based at its headquarters near the main runway at Kai Tak Airport, has an establishment of 116 volunteers and 59 permanent staff. This enables it to operate seven days a week and round the clock during an emergency. It operates seven aircraft: a twin-engined Britten-Norman Islander, a new twin-engined Cessna Titan, two Scottish Aviation Bulldog trainers and three Alouette III heli- copters.

      The main role of the unit is internal security but it provides other flying services. The Britten-Norman Islander and the Cessna Titan are used to assist the Public Works Depart- ment in aerial surveys and photography for map making and development planning. In addition, they conduct surveillance flights over Hong Kong waters in support of the Royal Hong Kong Police Force and assist with search and rescue operations.

      During the year, the auxiliary air force was involved in anti-illegal immigrant and Vietnamese refugee operations. Regular long-range flights over the South China Sea were undertaken to spot craft carrying Vietnamese refugees, and the unit supported operations mounted to curb the flow of illegal immigrants from China.

      The auxiliary air force's three Alouette III helicopters, among other tasks, provide a 24-hour medical evacuation service from Hong Kong's remote areas and are used to convey people on official visits to the territory's more inaccessible parts. The Bulldog aircraft provide basic and advanced flight training for both auxiliary pilots and Civil Aviation Department air traffic controllers.

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      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. In 1980, the auxiliary air force's single-engined Alouette III helicopters will be replaced by three new Aerospatiale Dauphin 365C twin-engined helicopters.

Civil Aid Services

The Civil Aid Services is a disciplined, volunteer service trained to assist the regular emer- gency services in dealing with natural disasters and other emergencies. Besides its emergency role, the Civil Aid Services provides assistance in crowd control duties at large public gatherings and helps in the organisation of 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 performed during 1979 included forest fire-fighting, country park patrolling, tropical cyclone duty, mountain search and rescue operations, and the clearance of blocked roads.

       Following the influx of Vietnamese refugees, members of the Civil Aid Services played a vital role in the daily management of refugee camps and in the delivery of food supplies to refugees awaiting clearance in quarantine anchorages. Up to 150 members of the service were involved each day in these tasks.

      The adult members of the Civil Aid Services, comprising 2,800 volunteers from all walks of life, are recruited into units 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 the urban areas of Hong Kong Island and Kowloon, and in Tsuen Wan, 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. Afterwards they are transferred to operational units where they are required to undertake emergency duties at short notice and in all weather conditions. The Civil Aid Services has a cadet corps comprising 2,200 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 initi- ative, and operational tasks such as country park patrolling, life-saving, mountain rescue, crowd control and assisting in fund-raising for charities.

       Like their adult colleagues, cadets are recruited from the area 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 are held for the older cadets 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.

       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. A centre for water-based activities is planned at Tai Tan on the Sai Kung peninsula. The Tai Tan site is already being used for camping and other activities by the Civil Aid Services.

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Auxiliary Medical Service

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The Auxiliary Medical Service, which was founded in 1950, has a membership of 5,500 volunteers. They include doctors, nurses and other paramedical professionals but the majority are laymen. The Director of Medical and Health Services is the unit controller of the service.

       In the event of an emergency, the Auxiliary Medical Service may be mobilised to augment the Medical and Health Services and the ambulance service. Members assist in treating victims on the spot, conveying casualties to hospitals, and manning dressing stations, casualty wards and convalescent units which may be established to cope with the emergency situation.

      The Auxiliary Medical Service provides assistance at medical centres, methadone treat- ment clinics, inoculation posts, hospital wards and casualty departments. Members qualified in life-saving reinforce the Urban Services Department's life-guard service at public beaches and swimming pools during the summer months.

      The service's permanent staff members undertake the training of government officers in first aid.

      With the influx of Vietnamese refugees into Hong Kong, the Auxiliary Medical Service provided a variety of medical and health services. An ambulance service was established for sick refugees awaiting clearance on board the vessels in which they arrived and for those in refugee camps.

17

Religion and Custom

FOXX:

WHILE Hong Kong may appear to be preoccupied with trade, industry and commerce, it does have its spiritual side. Many of the territory's people are followers of Buddhism and Taoism and their devotion is apparent during colourful, noisy festivals and on the first and 15th days of the lunar month when many temples are crowded.

      Buddhism and Taoism have the greatest number of worshippers, but the world's other great religions are also represented. There are Christian churches, mosques, Hindu and Sikh temples, and a synagogue where believers can follow their own faiths.

Buddhism and Taoism

Buddhism and Taoism are the predominant religions in Hong Kong with the traditional rites associated with birth, marriage, death and festivals still widely observed. Among believers, almost every household has its ancestral shrine and many shops, offices and factories have a God Shelf, with images of the most favoured of the hundreds of divinities. Hong Kong possesses 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 impressive new buildings constructed along tradi- tional Chinese architectural lines. 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. Because Hong Kong's early history was centred around the sea, first for fishing and later 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 first and most famous being the one at Fat Tong Mun in Joss House Bay. As a result of reclamation around the coastline, 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, Supreme Emperor of the Dark Heaven 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 Attainment and Martial Valour, the Man Mo Temple in Hollywood Road, Western District, run by the Tung Wah Group of Hospitals, one of the largest and oldest of local charitable organisa- tions, is also popular and well-known.

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.

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       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 nearness. But the best-known monasteries are situated in the more remote 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 Ching Shan Tsz, Miu Fat Tsz and Tsing Chung Koon at Tuen Mun; Tung Po Tor and Yuen Yuen Hok Yuen at 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.

      Traditional clan organisations continue to play an important part in the life of villagers in the New Territories. Many villages have an ancestral hall, the centre of both religious and secular activities, where ancestral tablets of the clan are kept and venerated. 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 and Chiu Chow 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 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, wine and fruit 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 remembrance 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 Christian community - Roman Catholic and Protestant - is estimated to number about 410,000 people. There are more than 50 Christian denominations and independent groups in Hong Kong.

Roman Catholic

      In addition to its pastoral and apostolic work, the Roman Catholic Church in Hong Kong is engaged in a wide variety of activities in the fields of 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 15 social centres emphasising vocational 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.

      During the year, the Church, through the agency Caritas Hong Kong, set up camp facilities for dealing with the influx of Vietnamese refugees. Other Catholic voluntary agencies also played an important part in caring for the refugees.

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Roman Catholics in Hong Kong number about 259,000. They are served by 348 priests (127 Chinese and 221 of other nationalities); 101 Brothers (41 Chinese and 60 of other nationalities); and 758 Sisters (491 Chinese and 267 of other nationalities), belonging to 11 different religious congregations. There are 64 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 a 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. The central council 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 Communities, and many others are co-ordinated under the Catholic Youth Council, a parallel organisation to the Central Council of the Catholic Laity.

      The concern for involving people of goodwill in the support of worthwhile causes resulted in the setting up, a few years ago, of a diocesan Commission for Non-Christian Religions and a diocesan Ecumenical Commission. As well, the Church's interest in developing better means of communicating its message has resulted in the recent establishment of the Hong Kong Catholic Social Communications Office.

      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 Wellington and Pottinger Streets in Central District. 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, who died in 1973 at the age of 52, 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 in July, 1975.

Protestant

The Protestant community in Hong Kong numbers about 150,000. This is based on a recent survey of 591 congregations and missions by the Economic and Public Affairs Office of the Hong Kong Christian Council.

The 1979 Hong Kong Church Directory lists 50 denominations and independent groups. These include the familiar major traditions such as Adventist, Anglican, Alliance, Baptist, Lutheran, Methodist, Salvation Army and Pentecostal, plus the Church of Christ in China representing the Presbyterian and Congregational traditions. The churches are responsible for more than 250 primary schools, some 130 middle schools, and two post-secondary colleges. The training of church leaders is carried out by several seminaries and Bible schools.

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A wide variety of service programmes are sponsored by the churches. These include clinics, homes for the aged, vocational training centres, family service centres, aid for the handicapped, hospitals, community health programmes and scholarship aid for students. Co-operative work is facilitated by two organisations, the oldest being the Hong Kong Chinese Christian Churches Union. The basis of its membership is congregations; it currently has some 200 members. Work is carried out through its departments of evangelism, Christian education, charities, cemeteries and information.

      The second ecumenical organisation is the Hong Kong Christian Council. The major denominations plus the Young Women's Christian Association, the Young Men's Christian Association, the Bible Society, the Chinese Christian Literature Council and other groups form its membership. The Christian Council is committed to building a closer relationship between all churches in Hong Kong as well as with churches overseas. This is achieved through several operational bodies including the Hong Kong Christian Service, the Com- munications Department, the Industrial Committee, and the United Christian Medical Service.

      During 1979, the churches actively promoted the International Year of the Child, sponsored by the United Nations. Activities included many celebrations, preparation of posters and reference materials for schools and churches, and a seminar.

The Hong Kong Christian Council and its member churches and organisations also responded to the influx of Vietnamese refugees into Hong Kong by giving assistance. The council helped to co-ordinate services of member churches to aid the refugees and, in addi- tion, operated one of the open camps for the Vietnamese. Through its service division, the council maintained connections with Protestant churches overseas and world church bodies to increase the assistance available for the refugees.

      The year also saw a new approach to work in the New Territories. With the development of satellite cities, most of the churches began diverting more resources to work in the new towns. Through the offices of the Christian Council, the churches are gradually co-ordinating this work.

The ecumenical movement continues to flourish in Hong Kong. Joint pastoral letters were again issued with the signatures of the Anglican and Roman Catholic Bishops plus that of the General Secretary of the Hong Kong Christian Council. The letters covered Christian unity, concern for health and Communications Sunday.

Muslim Community

There are about 30,000 followers of Islam in Hong Kong. The majority are Chinese, with the rest from Pakistan, India, Malaysia, Indonesia and the Middle East. During 1979, they gathered for prayers at the Shelley Street Mosque on Hong Kong Island and at the Nathan Road Mosque in Kowloon.

A mosque situated in Wong Nai Chung Road was demolished in 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, and work on this commenced in September, 1979.

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.

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       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 representatives of sections of the Muslim community, is responsible for the management and maintenance of mosques and cemeteries. The trustees also are responsible for organising the celebration of Muslim festivals and other religious events. Charitable work among the Muslim community, including financial aid for the needy, hospitalisation and assisted education, is conducted through various Muslim organisations in Hong Kong.

Other Religious Communities

The religious and social activities of the 8,000 members of Hong Kong's Hindu community are centred around the Hindu Temple at Happy Valley. 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 Hindu Temple is frequently visited by swamis and learned men from overseas who give spiritual lectures to the community. A number of festivals are observed, the more important being the Holi Festival, the Birth of Lord Krishna, Shivaratri, Dessahara and Diwali. The Hindu community can trace its ties with Hong Kong back to early settlement. The Sikhs - distinguished by their stylised turbans and unshorn hair - first came to Hong Kong from the Punjab in North India as part of the British Armed Forces in the 19th century. Because of their generally strong physique, they also comprised a large segment of the Royal Hong Kong Police Force before World War II.

       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 special feature of the temple, which was established in 1901, is the provision of free meals and short-term accommodation for overseas visitors of any faith. Religious services, which include hymn- singing, readings from the 'Guru Granth' (the Sikh Holy Book) and sermons by the priest, are held every Sunday morning.

       The main holy days and festivals observed are the birthdays of Guru Nanak (founder of the faith), Guru Gobind Singh (the 10th and last Guru) and Baisakhi (birthday of all Sikhs). To meet the demands of a growing congregation, plans are proceeding to enlarge the prayer hall and to add a wing to the main building.

       Hong Kong's Jewish community, comprising families from various parts of the world, worships on Friday evenings, Saturday mornings and Jewish holidays at the Synagogue 'Ohel Leah' in Robinson Road, Hong Kong Island. Built in 1901 on land given by Sir Jacob Sassoon and his family, the site includes a rabbi's residence as well as a recreation club for the 500 people in the congregation.

18

Recreation and the Arts

ரர்

IN RECENT years, Hong Kong people have increasingly been able to pursue a considerable assortment of cultural, recreational and educational activities in their leisure time.

      Hong Kong has become a cultural leader in Southeast Asia. At locations such as the City Hall, the Hong Kong Arts Centre and even outdoor venues, innumerable events are held, ranging from traditional Cantonese operas and puppet shows to stimulating performances by local and international orchestras and entertainers.

Thousands of sporting and recreational activities attract enthusiastic participants and supporters. Throughout the year, organisations such as the Urban Council, the Recreation and Sport Service, the Central Co-ordinating Committee for Youth Recreation, governing sports bodies and many voluntary associations plan and co-ordinate a crowded calendar of events. Plans to improve and increase recreational facilities throughout Hong Kong are going ahead, ranging from smaller scale projects to international-standard sports stadia. The spotlight is on Hong Kong's talented young people. In 1979, the Hong Kong Youth Symphony Orchestra and the Hong Kong Youth Chinese Orchestra made a highly success- ful tour of the United Kingdom. On the home front, the Hong Kong Academy of Ballet and the Hong Kong Conservatory of Music began operating to upgrade ballet and music standards. The Jubilee Sports Centre is to be built at Sha Tin to train athletes for interna- tional competitions as Hong Kong gears itself for the 1980s.

The Countryside

Every weekend and on public holidays, many people of all ages walk across the hills and through the wooded valleys of Hong Kong. To cater for the growing interest in outdoor recreation, provision was made in 1976 for the more important areas of countryside to be designated as country parks under the Country Parks Ordinance. Since then, some 21 country parks covering about 40 per cent (41,780 hectares) of Hong Kong's total land area have been created. During 1979, an estimated four million people visited them.

      The Director of Agriculture and Fisheries is the Country Parks Authority and is respon- sible for the management of the country parks. Facilities provided at the parks include picnic sites with tables and benches, litter bins, children's play apparatus, and fireplaces for barbecues. In the more remote areas, a campsite programme was launched in 1979 to provide simple facilities for hikers. Furthermore, a 100-kilometre walk - the MacLehose Trail - which traverses the New Territories from Sai Kung in the east to Tuen Mun in the west, exclusively through country parks, was opened in October. Other footpaths are being improved and waymarked, and there are nature trails with guidebooks available for people who want them.

      The Agriculture and Fisheries Department takes measures to safeguard the countryside. against fire - often caused by careless visitors - and it is responsible for landscape rehabilita-

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tion and the protection of flora and fauna. It has launched a countryside education pro-

gramme.

Urban Council

The Urban Council plays an important role in community life, providing many recreational facilities throughout Hong Kong. The council has considerable experience in managing parks, playgrounds, swimming pools and beaches, and in organising sport and entertain- ment. One of its main aims is to acquire as much open space as possible for recreational use. Among the many projects going ahead are a new sports stadium at Ho Man Tin, a velodrome for cyclists at Aberdeen, additional grass and artificial turf football pitches, a tennis complex at Wong Nai Chung Gap, boating facilities at Wong Nai Chung Reservoir park, and the Aberdeen sports ground extension. A classical Chinese garden in Kowloon Park and a promenade along the waterfront in Central District were opened for public use in 1979.

For basketball, badminton, volleyball and gymnastics, more sophisticated indoor facilities are being built to improve standards of performance. Two major indoor stadia of international standard are under construction. The Queen Elizabeth Stadium at Morrison Hill, which has a seating capacity of about 3,500, is expected to become operational in mid-1980. The Hung Hom Stadium, which is situated on the podium of the Kowloon- Canton Railway terminus at Hung Hom, will be able to accommodate about 12,500 spectators. It is scheduled to open in 1981. In addition, seven more multi-purpose indoor games halls are planned to supplement the five existing ones at Kai Tak East, Cheung Sha Wan, Morse Park, Boundary Street and Aberdeen. Furthermore, to provide even more indoor facilities, particularly in built-up areas where space is limited, new or reprovisioned market buildings will in future be multi-storeyed, with one or two floors set aside and equipped for recreational purposes.

Facilities for athletics, which comprise two stadia and four sports complexes, are also increasing. The Wan Chai sports ground, with electronic timing equipment and an inter- national-standard running track, was opened for public use in February, 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 $2.5 million in 1979. This covered about 6,000 events involving more than 100 sports and other recreational activities, and benefited about 1.5 million people including both the physically and mentally handi- capped. The events were presented with the co-operation of the governing sports bodies, the Council for Recreation and Sport, the Social Welfare Department, the Recreation and Sport Service, and prominent community organisations.

During the year, the Urban Council also organised a total of 842 free entertainment programmes throughout the urban areas. Events included variety shows, concerts, Can- tonese operas, puppet shows, roller-skating displays, film shows, musical comedies and youth dances. About 1,150,000 people were entertained at these events which were presented in parks, playgrounds, recreational and community centres, and school halls. An intensive 51-day programme the Summer Fun Festival '79 was also launched. More than 34,000 people took part in various outdoor events such as launch picnics, swim- ming parties, family harbour cruises, open-air concerts, carnivals, camping activities, children's parties and a tricycle contest.

       For the Chinese Mid-Autumn Festival, the Urban Council organised two lantern carnivals on both sides of the harbour. These two-day carnivals, consisting of both tradi- tional and modern entertainment events, attracted more than 260,000 people.

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       In support of the International Year of the Child, the Urban Council organised a series of special activities for children and teenagers. These included two painting competitions, games, fun fairs and folk dances.

      Similar entertainment programmes were organised by the New Territories Services Department in the New Territories. About 121,000 people took part in 150 events.

Swimming

Swimming is Hong Kong's most popular summer recreation. 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, first aid posts, changing rooms, showers 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.

       It is estimated that 24 million people visited the beaches and four million used the swimming pool complexes during the swimming season. Thirteen new swimming pool com- plexes are being planned - two on Hong Kong Island, five in Kowloon and six in the New Territories.

Recreation and Sport Service

In 1979, the government's Recreation and Sport Service celebrated its fifth year of operations. Since it was established, much has been achieved in providing recreation and sporting activities for people of all ages throughout Hong Kong.

The service now operates 17 district offices where full-time staff organise events for com- munity participation. The labour force is the service's main target group. The programmes offered cover a wide variety of activities and are often over-subscribed. Throughout the year, more than 450,000 people took part in some 3,500 recreational programmes. In order to cope with the number of applicants, the service, besides mounting its own functions with the $3.5 million at its disposal, assisted in the promotion of joint recreational projects. It worked with the Urban Council, district advisory boards in the New Territories, governing sports bodies and various district sporting associations.

A number of large commercial organisations came forward and offered sponsorship for recreational and sporting events. They supported football, table tennis and tennis events, and assisted in the mounting of a large-scale women's athletics programme and a jogging programme. The service's bi-monthly newspaper and publicity material were also sponsored by companies.

A successful learn-to-sail scheme was jointly promoted with the Hong Kong Yachting Association and the Urban Council during 1979. More than 4,000 applications were received for the 500 places available.

Coaching and sports competitions on a territory-wide basis were held in conjunction with governing sports bodies with whom the technical and planning section of the service liaised. The section provided technical assistance and advice to sports associations, volun- tary organisations, commercial firms, factories and government departments in the organisa- tion of events or in the planning and designing of recreational and sports facilities. It also contributed to the planning of facilities for the new towns of the New Territories.

       The Sai Kung Outdoor Recreation Centre, which is run by the service, continued to be extremely popular. During 1979, 65,000 people used the centre's facilities. In February, the newly-completed Field Studies Centre, which forms part of the Sai Kung centre, was handed over to the Education Department. It has been in use since August. The Field Studies

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     Centre's objective is to promote a better understanding of the environment through educa- tion and information. Weekly residential courses on ecology and geography are offered to senior secondary students and countryside educational courses are provided for the public.

In view of the overwhelming demand for outdoor pursuits, the Recreation and Sport Service is actively pursuing the planning and development of further outdoor recreation and holiday centres, such as the Tso Kung Tam Outdoor Recreation Centre in Tsuen Wan, the Tai Mei Tuk Water Sports Centre in Tai Po, and the Tsak Yue Wu Holiday Centre in Sai Kung.

      During the year, the service also assisted in the establishment of the first stage of Po Leung Kuk's Pak Tam Chung holiday camp. This camp and the Hong Kong Buddhist Association's Tung Chung camp, which opened in August, 1979, are valuable additions to the camping facilities in Hong Kong.

Summer Youth Programme

     More than two million people participated in the 11th Summer Youth Programme which was administered and co-ordinated by the Central Co-ordinating Committee for Youth Recreation. Various government and non-government bodies, assisted by a legion of volunteers, organised more than 8,000 events, both indoors and outdoors, at a cost of $7.3 million.

The 1979 programme was varied and challenging and provided something for everyone. The participants were able to take part in a variety of healthy recreational activities, with the outdoor events proving the most popular. Events included training and recreational camps, community service projects, life-saving courses and various group functions.

      Funds for the programme came from a number of sources. They included a donation of $2 million from the Royal Hong Kong Jockey Club, government subventions, Urban Council funds, private donations and participants' fees.

The Central Co-ordinating Committee for Youth Recreation also co-ordinated a suc- cessful recreational and entertainment programme during Chinese New Year.

International Sport

     When participating in international competitions, the major problem facing Hong Kong's governing sports bodies has been a lack of facilities and expertise for high-level training and coaching.

      To help remedy the situation, the Jubilee Sports Centre is to be built at Sha Tin, on land reclaimed by the Royal Hong Kong Jockey Club (RHKJC). It is a joint project between the government and the RHKJC. During the year, an open competition was con- ducted to select the best architectural design; the winner was appointed as the architect for stage one of the centre.

The main purpose of the centre will be to provide training and coaching facilities. To this end, the chief coach and five coaches for the sports of table tennis, football, squash, fencing and badminton have been appointed. Training programmes are already being run by the centre in borrowed accommodation and public facilities.

In addition to the Jubilee Sports Centre, two indoor stadia of international standard - the Hung Hom Stadium and the Queen Elizabeth Stadium - are being built to provide facil- ities for more sporting competitions. On completion, both will be handed over to the Urban Council for management.

      During 1979, Hong Kong participated in a large number of sporting events overseas. The most notable achievement was undoubtedly the winning of 13 gold medals at the

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Fifth Commonwealth Table Tennis Championships in Edinburgh. Of particular interest was Hong Kong's success at the Fifth International Special Olympics for the Mentally Handicapped in New York State, where nine gold medals were won.

Ocean Park

      Ocean Park, the world's largest oceanarium, is one of the most spectacular recreational and educational complexes in Asia. Developed by the Royal Hong Kong Jockey Club, on land granted free by the government, it has attracted more than six million visitors since it opened three years ago.

Spanning a high, rocky peninsula between Aberdeen and Deep Water Bay on Hong Kong Island, Ocean Park's lowland and headland sites are linked by cable car. In 1979, further development schemes were proposed, including an alternative means of access to the headland site from Tai Shue Wan Bay through a series of escalators.

        Ocean Park's three main marine exhibits are located at the headland site. Ocean Theatre, with a 4,000-seat auditorium facing a show-pool, features daily performances by trained dolphins, sealions and a killer whale. Wave Cove, a simulated coastline of rocks and waves, allows visitors to see intermingled species of seals, sealions and penguins. Atoll Reef, recreating the shallows and depths of a tropical atoll, has viewing galleries at four levels. It is the world's biggest aquarium, displaying some 300 species ranging from sharks to tiny coral fish.

The lowland site has been landscaped around a small lake and pools. In addition to animals and birds, it contains a touch-and-feed area, an innovative playground for children and two outdoor theatres. Special attractions in 1979 included pandas on loan from the Guangzhou (Canton) Zoo, the first giraffe to be seen in Hong Kong, and the annual flower festival. Ocean Park is a non-profit organisation.

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 cultural, recreational and educational facilities in Hong Kong.

Space Museum

The Hong Kong Space Museum, which forms the first stage of the Tsim Sha Tsui complex, is scheduled to open in 1980. It will house a 300-seat planetarium under one of the largest domes in the world, two exhibition halls with a total area of about 1,400 square metres, and a 200-seat lecture hall, in which sky shows, exhibitions and lectures will be held.

In the planetarium, celestial phenomena will be simulated on the dome-shaped screen. A star projector, working in conjunction with an Omnimax projection system, will be capable of projecting 9,000 stars in various configurations and surrounding the audience with a panorama of ultra-sharp definition. The latter system is only the fifth of its kind in the world and the first to be installed outside America.

An exhibition hall of 1,000 square metres, on the ground floor, will feature Man's achievements in astronomy and space exploration. On the first floor, a 400-square metre solar sciences hall will provide information on the structure and activities of the sun and its relationship with Earth. People will be able to see images of the sun showing sunspots, prominences, faculae and other phenomena on a screen or through a solar telescope installed on the roof.

Besides the presentation of eight to 10 sky shows a day, the museum will organise activities such as public lectures, astronomy classes and star camps.

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Facilities for the Arts The Tsim Sha Tsui Cultural Centre will have an auditoria block housing a 2,300-seat concert hall; a 2,200-seat lyric theatre for opera, ballet and stage shows; and a small drama theatre. A nine-storey office block will accommodate the Cultural Services Division of the Urban Services Department. 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, the Hong Kong Museum of Art will be relocated in a new museum building.

Hong Kong Museum of Science and Technology

The development of the Hong Kong Museum of Science and Technology was initiated by the Urban Council. A feasibility study by a team of American museum consultants recommended that a public museum of science and technology should be set up in Hong Kong - with emphasis on visitor involvement and audience participation.

      The government, which is responsible for the capital cost of the project, has confirmed that a site east of Chatham Road, in Kowloon, has been reserved for the museum. When completed, it will have a total floor area of 17,000 square metres, of which at least half will be used as exhibition space. A chief planning officer was recruited in 1979 to head the initial planning and subsequent operation of the museum.

City Hall

Opened in 1962, the City Hall, located in Central District, occupies about 11,000 square metres and includes two separate blocks with a connecting garden. The low block houses a 1,500-seat concert hall, a 470-seat theatre, an exhibition hall and a restaurant. The high block contains an exhibition gallery, a 116-seat recital hall, lecture and conference rooms, the Hong Kong Museum of Art and libraries operated by the Urban Council.

       The City Hall is administered by the Urban Council. Its facilities are available for hire by the public and it is used by the council for various functions and performances. With increasing public interest in cultural activities, the City Hall continues to be the centre of cultural life in Hong Kong. During the year, about 576,600 people attended performances in the concert hall, the theatre and the recital hall; a total of 1,018 performances and exhibitions were held at these venues.

      Among the performances the Urban Council presented 45 artistes and groups from overseas, some of whom appeared with the assistance of various cultural organisations, such as the United States International Communication Agency, the British Council, the Goethe Institute and Alliance Française. The Urban Council has also received generous help from various consulates.

      Some of the internationally-acclaimed artistes who performed were violinists Mayumi Fujikawa, Theo Olof and Sung Ju Lee; double-bass player Gary Karr; pianists Fou T'song, Tong II Han and Susan Starr; the Wuppertal Dance Theatre of Germany; the Australian Dance Theatre; the Alwin Nikolais Dance Company; the Vienna Folk Opera Orchestra; the NHK Symphony Orchestra; and the BBC Northern Symphony Orchestra.

      In promoting local artistic talent, the Urban Council staged 18 performances of Chinese opera including 10 Cantonese productions as well as Mandarin and Chekiang opera. Five performances of two short operas, the Cavalleria Rusticana and I Pagliacci, were presented in November, accompanied by the Hong Kong Philharmonic Orchestra. During the year the Urban Council presented 42 vocal and instrumental recitals, and 11 Chinese and Western dance performances.

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      In May, a Hong Kong-Japan cultural week was organised featuring art songs, choral and instrumental music, folk songs and dance, and traditional lyrical singing. Japanese and local artistes took part in a series of six concerts. There were also two exhibitions - one on Japanese photography and the other on Japanese arts and crafts.

       The Hong Kong Chinese Orchestra and the Hong Kong Repertory Theatre were established in 1977 under the direct finance and management of the Urban Council. In 1979 a total of 39 concerts, including eight school concerts, were given by the Hong Kong Chinese Orchestra under the baton of Ng Tai-kong, the orchestra's musical director, and other guest conductors. The orchestra has 50 full-time and 25 part-time musicians.

The Hong Kong Repertory Theatre gave 56 performances in Cantonese of both Chinese and Western plays. It has 10 full-time actors, though additional artistes and supporting staff are engaged on a freelance basis for each production.

Many films presented by the Urban Council and local and international cultural organ- isations were shown at the City Hall during the year. They included a regular series of French and German films, a Japanese film festival, a 35 mm French film festival, an independent short films festival, and a retrospect of Japanese films.

       The Third Hong Kong International Film Festival, sponsored by the Urban Council, took place at the City Hall from June 25 to July 8. This non-competitive festival attracted more than 30,000 people. Another 30,000 people visited two festival exhibitions. The festival included 22 features from Europe and the United States, 19 features from Asia, and 10 documentaries and 26 films produced in Hong Kong.

Two other major exhibitions staged by the Urban Council in 1979 were the Solar Energy Application Exhibition, organised jointly with the American Consulate General, and the 34th Hong Kong International Salon of Photography, presented jointly with the Photo- graphic Society of Hong Kong.

Festival of Asian Arts

The Fourth Festival of Asian Arts was held in Hong Kong for 16 days from October to November. This major presentation by the Urban Council attracted more than 360 partici- pants from Bangladesh, India, Indonesia, Japan, Korea, Nepal, the Philippines, Singapore, Sri Lanka, Thailand and Turkey. They were joined by almost 2,000 performers from Hong Kong. A total of 133 events were staged at the City Hall and at various outdoor venues on Hong Kong Island and in Kowloon. Five exhibitions were also held featuring cybernetic sculpture, Chinese antiquities, Japanese art, Hong Kong modern art and Indian musical instruments.

Hong Kong Arts Festival

To mark the opening of the 1979 Hong Kong Arts Festival in February, a highly successful outdoor 'pop' concert was organised by the Government Information Services. Coinciding with Chinese New Year celebrations, the concert attracted thousands of young people. It was held in Edinburgh Place, outside the City Hall.

On the same night, in sharp contrast, was the elegant performance inside City Hall by Sweden's Cullberg Ballet. The ballet was the first international event in the annual, month- long arts festival. While the festival continued to enjoy capacity audiences comprising residents and overseas visitors, there was a marked increase in the number of subsidised tickets available for students. About one-quarter of all tickets were allocated to the student population.

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The festival brought to Hong Kong the 120 members of the Rotterdam Philharmonic Orchestra, under conductors Edo de Waart and David Zinman. Soloists included cellist Mischa Maisky, soprano Felicity Lott, pianist Youri Egorov and violinist Shlomo Mintz. More fine music was heard from France's Jean-François Paillard Chamber Orchestra, while opera lovers saw miniature masterpieces by the Salzburg Marionettes.

Britain's dramatic talents were represented by the Prospect Theatre Company whose cast included Derek Jacobi, Isla Blair, Julian Glover and Timothy West; and by the Chichester Festival Theatre which presented two plays by Christopher Fry, in addition to Julius Caesar.

Lighter entertainment was provided by Richard Rodney Bennett and Marian Mont- gomery, Teddy Wilson at the keyboard, and Italian clowns. A wealth of local talent also participated in the festival. The programme included performances by the Garri- son Players, the Hong Kong Philharmonic Orchestra, and the Hong Kong Chinese Orchestra.

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.

The orchestra, with 70 full-time musicians, offered a wide variety of concerts during its sixth season. It played to a mainly young audience, giving concerts in the City Hall, the Academic Community Hall of the Hong Kong Baptist College, and at many schools and colleges.

      A major development during 1979 was the appointment of an eminent Chinese conductor, Ling Tung, as music director.

      The orchestra's repertoire includes programmes specially tailored for students and young people, the regular concert-goer and those interested in popular classical music. Matinees, chamber music, recitals, opera and regular orchestral concerts are all included. Some of the distinguished soloists who have appeared with the orchestra are pianists Fou T'song and Steven de Groote, cellist Mischa Maisky, bass baritone Yee-Kwei Zi and guest con- ductors Thomas Michalak, Anthony Hopkins and Akeo Watanabe. 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; the remainder was funded by the government and the private sector.

Hong Kong Arts Centre

All areas in the Hong Kong Arts Centre's 19-storey building on the Wan Chai waterfront became fully operational in 1979, and many sections were in use every day from morning to night. In addition, there were nearly 1,000 presentations in the centre's three auditoria including music, drama, dance, traditional art forms and films.

The amount of new work by contemporary Hong Kong artistes was encouraging. Notable achievements included Gus Wong's play Mishima - given alternately in Cantonese and English; the New Music Hong Kong series, the second of which is to be accompanied by a commissioned book on Hong Kong composers; the world premiere of two commis- sioned plays based on works by Pa Hsin Yung; and the commissioning of a work by Violet Lam for Chinese, Japanese and Western flutes.

      The Arts Centre provides an extensive range of courses and practice facilities. This educational aspect was increasingly stressed during the year with more than 40 courses

་་

THE ARTS

[PU)

New Impetus to Culture

Exciting progress has been made in foster- ing the arts in Hong Kong which enjoys a rich blend of cultural activity. While traditional Chinese opera, music and enter- tainment continue to flourish, such notable events as the Hong Kong Arts Festival and the Festival of Asian Arts have increased substantially the range of artistic events, introducing local audiences to many lead- ing companies and performers from over- seas. Not only are performances held at complexes such as the City Hall and the Hong Kong Arts Centre, many are staged free in playgrounds and parks for all to experience. Major achievements in the arts in recent years include the opening of the Hong Kong Arts Centre, the establishment on a professional footing of the Hong Kong Chinese Orchestra and the Hong Kong Philharmonic Orchestra, the setting up of a Music Administrator's Office, and the blossoming of ballet and theatre. It is mainly through our young people that new impetus is being gained in Hong Kong's cultural development. An example of their growing involvement in and appreciation of the arts was given in the summer when two youth orchestras, demonstrating a wealth of talent, made a triumphant tour of the United Kingdom. The emergence of a cultural scene with great potential and diversity reflects the tireless striving of

and patrons of the arts, officials

onment, civil and cultural institu-

tions, the sponsors of large-scale events, and countless others. Their efforts have been rewarded by the enthusiasm of Hong Kong people who are acquiring a stimula- ting cultural dimension in their lives.

Previous page: The internationally-acclaim- ed pianist, Fou T'song, rehearses for a public performance with the Hong Kong Youth Symphony Orchestra. Left: Accom- plished players with the Hong Kong Chinese Orchestra play a new composition on the trumpet-like Bass Suo-na (top); the enchanting Pi-pa (centre); and the unique woodwind instrument, the Sheng (bottom).

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      Two musicians on the Bass Ka-hu contribute to the haunting melody of a Chinese folk song which has been arranged and orchestrated for the full-scale Hong Kong Chinese Orchestra.

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     Displaying the beauty and charm of her country's dance traditions, this artiste from Bangladesh belonged to one of several visiting troupes which performed in the Urban Council's Fourth Festival of Asian Arts.

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Another entertainer who delighted audiences during the Festival of Asian Arts was a member of the Sri Lanka Army Cultural Dance Troupe who showed his skill in 'spinning the raban'.

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Fukienese string puppets, performing miniature versions of stage dramas, are an attraction for spectators of all ages at free performances sponsored by the Urban Council in parks and playgrounds.

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Painstakingly made-up, using designs and techniques that have been followed faithfully for hundreds of years, a Chiu Chow performer awaits his turn to go on stage.

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Under the exacting eye of visiting artistic director, Ivan Nagy, some of Hong Kong's most talented

ballet dancers strive to perfect their steps for a presentation of 'Giselle

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covering subjects such as Cantonese opera singing, Chinese stage movement, theatre and music for children, photography, ikebana, classical ballet, modern dance, calligraphy, painting and pi-pa playing. As well, the cultural organisations housed in the Arts Centre offered their own educational programmes.

       An unsubsidised educational charity, the Hong Kong Arts Centre was officially opened in October, 1977. It has already achieved its aim of operating without a deficit. In this it has been helped considerably by a number of generous donations. Such outstanding events as the major Ting Yen Yung exhibition and the Dunhill series of Asian Arts were made possible by special sponsorship.

Ballet and Music

The Hong Kong Academy of Ballet and the Hong Kong Conservatory of Music have been established to raise the standards of ballet and music in Hong Kong. Their objectives are to provide a high degree of professional training for talented musicians and ballet dancers and to increase teaching standards.

       The Hong Kong Academy of Ballet began operating in March, 1979, in rented accom- modation at the Hong Kong Baptist College. Donations amounting to $4 million have been made by the Royal Hong Kong Jockey Club and a private citizen to enable the academy to pursue its goals.

The Hong Kong Conservatory of Music began operating on a small scale at the Hong Kong Arts Centre in late 1978 and was officially opened in April, 1979. Twenty-six pupils were enrolled for full-time classes which began in September.

During the year, the Hong Kong Ballet Group gave 10 performances, two of which were presented by the Urban Council. Of particular note was the production of Giselle, under the direction of the internationally-renowned dancer, Ivan Nagy.

Music Administrator's Office

The Music Administrator's Office plans and promotes musical training and activities for young people. During 1979, the office further developed its instrumental training pro- gramme, organised music sessions throughout Hong Kong and 'Music for the Millions' concerts, and expanded its international exchange scheme. Established by the government in September, 1977, the office is located in the Hong Kong Arts Centre.

An enrolment of young people for the instrumental training classes was conducted in September. New trainees are continually being recruited and more classes were opened at the office's four music centres and at various schools in the New Territories. Courses for aural training, theory and music appreciation were also provided. For talented young musicians, special training is provided at both local and overseas training centres.

       Nine new orchestras and bands were formed during 1979. The Music Administrator's Office now runs two youth symphony orchestras, six youth Chinese orchestras and five youth symphonic bands. They rehearsed once a week and gave a total of 81 public perform- ances during the year. In addition, a total of seven children's choirs were formed in various districts.

To provide training venues and to facilitate the organisation and co-ordination of music activities on a regional basis, three sub-offices were opened during 1979. They are in Kwun Tong, Mong Kok and Tsuen Wan. Training facilities in each centre include one large rehearsal room, four practice rooms and a music library.

        To introduce serious music to new audiences, 400 'Music for the Millions' concerts were held for 265,000 students and young people. These concerts were held at different locations

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     schools, parks, playgrounds, community halls and factories - and were presented by the youth orchestras, bands and ensembles, and other groups.

      Visiting musicians are invited to run master classes and seminars to help broaden the outlook and experience of Hong Kong's young musicians. A total of 124 master classes and seminars have been held for more than 7,000 students and music lovers.

      The office also organises international exchange programmes. The Philippines Youth Orchestra visited Hong Kong in May and two concerts were given for an audience of 2,700 people. In June, 1979, the Australian Youth Orchestra came to Hong Kong and performed for an audience of 1,400 people.

      In August, the Hong Kong Youth Symphony Orchestra and the Hong Kong Youth Chinese Orchestra participated in the International Festival of Youth Orchestras in Aber- deen, Scotland. During their visit to the United Kingdom, which lasted a month, the two youth orchestras gave 17 public performances at various cities. In addition, the orchestras gave two concerts in Paris.

       The Second Hong Kong Youth Symphonic Band Festival was held in November. Two guest bands, one from Singapore and the other from the Philippines, took part in the five public concerts given with 20 local bands. In December, Hong Kong hosted the Third Asian Youth Music Camp. Nine countries in Asia sent representatives to the camp. The youth orchestras formed at the camp gave seven performances in Hong Kong for audiences totalling more than 20,000 people.

Public Records Office

The Public Records Office of Hong Kong, located at Murray Road, Central District, was established in 1972. It houses the archives of the Hong Kong Government which are of permanent value for official reference and private research.

The Public Records Office accommodates more than 5,000 shelf metres of records trans- ferred from 105 government agencies, and more than 50 shelf metres of archival material and manuscripts received from private institutions and individuals. In addition, there is a refer- ence library which contains published works and microfilm copies of archives and manu- scripts relating to Hong Kong. There are also valuable collections of maps and photographs. Public access to the government archives is subject to formal approval, but access to the library, including the microfilm, map and photograph collections, is unrestricted.

During the year, the storage capacity of the Public Records Office repository was ex- hausted and use of temporary annexes has been resorted to, pending the provision of additional, fully-equipped premises.

Hong Kong Museum of Art

The Hong Kong Museum of Art presented 12 exhibitions in 1979. While most of the exhibi- tions focused on Chinese and contemporary local art, there were two exhibitions of Japanese and French art. Besides the Urban Council's presentations, co-sponsorship was sought from the Consulate General of France and the Oriental Ceramic Society of Hong Kong for two of the exhibitions. Seven illustrated catalogues were produced for the exhibitions. An exhibition of cybernetic art was the first of its kind in Asia.

       During the year, 318,464 people visited the exhibitions - an average of 1,044 a day. The museum also organised regular film shows and guided tours for school groups. Small exhibitions were arranged for lending, free-of-charge, to schools, libraries and cultural institutions.

Significant pieces acquired by the museum in 1979 included a female funerary figurine of the Han Dynasty and a Hsing-type white-glazed bowl of the Tang (T'ang) Dynasty; a

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creamy-glazed Tzu-chou Mei-ping of the Northern Song (Sung) Dynasty; a gilt bronze figure of Amitayus of the Qing (Ch'ing) Dynasty; a Guangzhou (Canton) enamel plaque depicting a European subject in the 18th century; and an ivory snuff bottle of the Chien-lung period carved in the form of a goose.

Hong Kong Museum of History

In 1979, the permanent displays and special exhibitions organised by the Hong Kong Museum of History in its Star House galleries in Kowloon attracted 343,426 visitors. The Lei Cheng Uk Branch Museum and the Han Tomb had an additional 59,294 visitors.

The most popular exhibition, a display of Guangdong (Kwangtung), Hong Kong and Macau currency, was visited by a daily average of 1,560 people during its run from April to June. A special exhibition of traditional farming implements was the result of several years of ethnographic fieldwork in the rural areas of Hong Kong. Country parks and countryside conservation were the theme of another exhibition, presented jointly with the Agriculture and Fisheries Department.

During the Festival of Asian Arts, the museum co-operated with the Indian Government in staging an exhibition showing many Indian musical instruments and their historical development.

The museum's permanent display outlining local history was replaced by a new exhibi- tion on Hong Kong's earlier history. It was based on archaeological and ethnographic evidence and supported by reference to Chinese and European records and existing historical remains.

Important acquisitions during the year included two major numismatic collections com- prising a date set of 329 Hong Kong regal coins and 346 specimens of local paper money. Also of great interest were two traditional Chinese long-barrelled guns, or gingals, dating from the (Qing) Ch'ing Dynasty, which were donated by the villagers of Fanling Wai in the New Territories. Other notable acquisitions were a scale model of a 19th century tea clipper and an interesting selection of late 19th century lamp posts.

       The museum has been designated as Hong Kong's official archaeological repository. On behalf of the government, it receives for documentation and custody all archaeological material discovered or excavated under licence in the territory. As a result of this significant development, the archaeological reference collections have grown in size and importance and now form the central archaeological archive.

The Antiquities and Monuments Section continued its systematic programme of research, survey and documentation of items of historical and archaeological interest. In its work of recording and preserving Hong Kong's historical heritage, the section enjoyed the co-operation of many government departments, public and private institutions, and individuals.

       At the end of the year, eight historical sites had been declared monuments under the Antiquities and Monuments Ordinance. On many of these monuments a start has been made on conservation work. Particularly noteworthy projects are the fort at Tung Chung on Lantau Island, the fort ruins on the island of Tung Lung, the ancient kilns at Yi Long Wan, Lantau, and some of the prehistoric and historic rock carvings and inscriptions.

Libraries

The Urban Council and the Urban Services Department operate 19 public libraries. In addition, there are two mobile libraries, three gramophone record libraries and a video- cassette library. The City Hall Library, in Central District, has been designated a United Nations Depository Library by the UN Publications Board.

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In 1979, the Urban Council opened two new libraries in Wan Chai and Chai Wan. Plans are in hand to open more district libraries and to start a postal book service for the disabled and the aged.

      The Urban Services Department opened two district libraries in Yuen Long and Kwai Chung in 1979. A mini-library for Tai O and a mobile library service to cover other areas of the New Territories are being planned for 1980.

During the year 169,656 new books were acquired, bringing the total stock to 1.1 million volumes. The libraries also subscribed to 2,520 newspapers and periodicals. Other material included 3,333 reels of microfilm, 114 video cassettes, 784 sets of slides, and 10,786 gramophone records and cassette tapes. A total of 3,147 new publications were registered under the Books Registration Ordinance.

      Some 87,675 people registered as new members in 1979, bringing the total membership to 870,558. The lending libraries issued 4,733,754 books, while a further 4,595,652 were read in the libraries. More than 558,000 people participated in the various library extension activities such as book exhibitions, story hours, film shows and interest group sessions.

      A Chinese creative writing competition, organised under the Urban Council Arts Award Scheme, received a good response.

The British Council

Eleven British Council Bursaries, two Hornby Trust Scholarships and 10 Hornby Trust Bursaries were awarded for short English courses and attachments during the year. Acting for the Sino-British Fellowship Trust, the council arranged four scholarships and four grants for post-graduate studies and training in Britain. The council also completed placing and travel arrangements for eight Commonwealth fellows and scholars going to Britain. The British Council runs English language courses for students who wish to take part in the First and Proficiency Certificates Examinations of the Cambridge Local Examination Syndicate. About 20,000 students attended various courses during the year. The Professional and Company English Unit of the British Council has been set up to meet identified language training needs within companies and other organisations. Training programmes were organised for junior police officers, English language training officers of the Civil Service Training Division and inland revenue assessors.

      The British Council makes arrangements for specialists from Britain to visit Hong Kong for consultations with government departments, the universities, and with local experts in their fields. It also advises students leaving for higher education in Britain.

19

TEI

The Environment

A COMPREHENSIVE programme for the protection of the environment in Hong Kong in the 1980s and beyond was further developed during the year.

       The key elements in pollution control will be new legislation and the reorganisation and strengthening of resources for increased protection of the environment.

       The legislation consists of five new ordinances. Of these, four relate to the control of noise, air and water pollution, and to waste disposal. The fifth ordinance will cover the requirements of environmental impact statements which will assess new projects that may have an adverse effect on the environment.

       The reorganisation within the government provides for a two-tier structure, with policy development and environmental monitoring in the hands of the Environmental Protection Unit (EPU). The second tier, the carrying out of policy, including source sampling to ensure compliance with legislation, is to be the responsibility of a number of control units. Some of these already exist in departments and they will be strengthened. Other control units are to be established in the future.

Pollution Control: Planning for the 1980s

The Environment Branch, a policy-making and co-ordinating body within the Government 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), which is responsible to the Secretary for the Environment for overall policy development in the pollution control field. The EPU forms one tier in the two-tier structure that is being developed for environmental protection. The EPU formulates new legislation and deter- mines the regulations which flow from it. Other responsibilities include: the identification of priorities and the relative costs and benefits of alternative pollution control strategies; the establishment of objectives for environmental quality; and the monitoring of long-term trends in pollution levels to provide the data base essential for policy development and effectiveness.

       Further duties involve providing advice on environmental planning and on the selection of suitable sites for large-scale projects, and the preparation or vetting of environmental impact statements. In all these activities, the EPU seeks the views of government depart- ments which have either expertise or responsibilities in the areas concerned.

During 1979, approval was given for the provision of more staff and equipment which the EPU requires to carry out its various responsibilities. Starting in 1980, resources will be built up over a three-year period. This will enable the EPU to obtain the necessary local data on Hong Kong that is needed to formulate the detailed regulations which will flow from the new environmental protection ordinances. Considerable importance is attached

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to this activity. Only through such research will it be possible to avoid the error of adopting pollution control measures which may have worked elsewhere, but may be quite in- appropriate for Hong Kong.

Protecting the Environment

In 1979, much effort was devoted to the assessment of new projects which could have a substantial adverse effect on the environment. The objective was to ensure that adequate control measures were incorporated at the design stage.

Detailed environmental impact statements were prepared by the relevant companies for Hong Kong's two new power stations. They are Kowloon Electricity Supply Company's new plant at Tap Shek Kok in Castle Peak, to be operated by China Light and Power, and Hong Kong Electric's plant at Po Lo Tsui on Lamma Island. An environmental impact statement was also compiled for a cement manufacturing plant to be built adjacent to the Tap Shek Kok power station.

Each study analysed in considerable detail the potential effect of its development on the marine environment; air pollution and noise levels in the locality; the disposal of waste materials generated, such as pulverised fuel ash in the case of the coal-fired power stations; and the visual impact. The studies also contained proposals for reducing the adverse effects to acceptable levels.

      The reports were studied by the relevant government departments, by the Environmental Protection Unit and finally by the Environmental Protection Advisory Committee (EPCOM). Recommendations made have led to improved environmental measures. On Lamma Island, the electricity transmission system is to be placed underground to minimise the visual impact upon the countryside, and at Tap Shek Kok improved electrostatic precipitators will help reduce dust emissions at the power plant.

      Both the Lamma Island and Tap Shek Kok power plants are incorporating facilities for treating sewage generated on their sites, relocating heated water outfalls to minimise effects on marine life, and landscaping their surroundings. The Tap Shek Kok power plant is to increase its chimney height to improve the dispersion of combustion gases.

Consultations with Industry

      The main avenue for consultation on environmental matters is the Environmental Protec- tion Advisory Committee (EPCOM). In the 10 years since it was formed, EPCOM has evolved to meet the changing needs and circumstances of Hong Kong. Reconstituted in 1979, EPCOM has a membership of 13, comprising senior government officials, prominent citizens and representatives of three major industrial organisations: the Chinese Manu- facturers' Association of Hong Kong, the Federation of Hong Kong Industries and the Hong Kong General Chamber of Commerce. In addition, there are a number of EPCOM special committees that give detailed attention to specific areas of concern.

      In the past year, EPCOM has considered more than 60 reports ranging from the environmental impact statements on the new power stations and cement plant through to drafts of the environmental protection bills and proposals for automated pollution moni- toring networks. In each case, the committee has made recommendations to the Secretary for Environment on areas it feels need improvement.

      It has become the practice in developing the new environmental protection ordinances and their regulations to consult with organisations whose members may be affected by the new provisions. Discussions have taken place with the Hong Kong General Chamber of Commerce, the Chinese Manufacturers' Association of Hong Kong, the Federation of

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Hong Kong Industries, the Building Contractors Association, the Air Conditioning and Refrigeration Association, and others. Whenever possible, changes are made to make the legislation more workable, without detracting from its intended purpose. Any residual problems are then put to EPCOM for its advice, before the proposals are finalised for submission to formal legislative procedures.

Environmental Management

An important feature of the new environmental protection legislation will be the adoption of an environmental management approach. This will achieve the desired degree of environ- mental protection at a much lower cost than if the common approach of using blanket controls was followed. Environmental management entails imposing limits on polluting emissions so that a given environmental quality can be achieved. This means the emissions permitted will be considered in relation to the surrounding environment, with the aim of matching them to the ability of various areas to absorb or disperse them safely.

      The environmental management approach will require a detailed knowledge of the envi- ronment in different parts of Hong Kong. Acquiring this knowledge, upon which pollution controls will be based, will take time. For this reason, the new environmental protection ordinances are in a form which will enable specific regulations to be incorporated in subsidiary legislation at a later date. When regulations have been formulated they will be subject to the various consultative procedures. There will be a specific provision in the ordinances that the Secretary for the Environment must seek the views of EPCOM on all proposed regulations.

Noise Pollution

From July 1, 1979, the use of all mechanically-powered equipment in the carrying out of any construction work was prohibited between 7 pm and 7 am every day, and all day on Sundays and public holidays. This can be waived, under exceptional circumstances, if an exemption order is granted by the Governor in Council or a permit is obtained from the Director of Public Works under the Summary Offences (Permitted Work) Regulations. A monitoring and liaison group was set up with representatives of the government and the Building Contractors Association; this helped considerably in the introduction of the new provision.

Under the Public Health and Urban Services Ordinance, the Urban Services Department continued to control noise nuisances caused by air-conditioning and ventilating systems. A total of 240 complaints were received and investigated and these led to the issue of 36 abatement notices. All these notices were complied with and no prosecutions were necessary.

Water Pollution

      Severe pollution problems in Hong Kong's waters have been avoided to a large extent because of the effectiveness of coastal currents. The large majority of effluents are discharged into Victoria Harbour through short outfalls after preliminary screening only.

       However with the rapid population growth, the establishment of new towns in areas of restricted water circulation, such as Tolo Harbour in the New Territories, and the expansion of the industrial base, the Public Works Department has developed a new approach to maintain and improve conditions. The new towns of Sha Tin, Tai Po and Tuen Mun will each have an advanced sewage treatment works. The treatment works will be capable of producing good quality effluent suited to the pollution absorption capacity of the sur- rounding waters. In areas where bathing and recreation are important, sewage will be

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treated to an appropriate standard to protect public health: at Repulse Bay, for example, the final effluent from the sewage treatment works is treated with chlorine to kill bacteria and other organisms.

For the main centres of population and industry flanking Victoria Harbour, plans have been drawn up for a new treatment works to serve north-west Kowloon. Measures are in hand to extend existing short outfalls to deeper water for better dispersion and dilution.

With the implementation of new legislation, the waters of Hong Kong will be sub-divided into areas appropriate for certain activities such as fishing, marine fish culture and bathing, and industrial activities such as dockyards, shipbuilding and cargo-loading. For each of these activities a set of water quality criteria will be prescribed, and the pollution control authority within the Public Works Department will implement controls over individual discharges.

The problems of oil pollution and marine litter are dealt with by the Pollution Control Unit of the Marine Department. Regular inspections are made of vessels, bunkering faci- lities and oil-storage installations. Oil pollution control legislation is kept under review and strengthened, when necessary, to meet new contingencies. If an incident does occur, the unit is well-equipped to deal with oil-spills using a purpose-built launch, stocks of low toxicity chemical dispersant, oil containment booms and an oil skimmer device.

      The water-borne litter in Victoria Harbour, typhoon shelters and off bathing beaches is probably the ugliest form of environmental pollution in Hong Kong. A fleet of sampans is maintained to clear the rubbish near the points of suspected origin. However, the removal of an average of 15 tonnes of refuse a day from the water has proved inadequate and new mechanised techniques are now in operation. New legislation should do much to discourage the dumping of rubbish in the water, but final success will depend on a change in the attitudes and habits of residents.

The effects of water pollution on the stocks and quality of fish and shellfish around Hong Kong are investigated by the Marine Pollution Research Unit of the Agriculture and Fisheries Department. The work of the section has included the investigation of toxic metal levels in shellfish, basic surveys of sea bottom life, and the possibility of discharged nutrients producing unpleasant algal blooms and consequently killing fish. Although very large catches of commercial fish are not taken from adjacent waters, Hong Kong does have an important fish rearing industry based on floating cages. Marine fish culture is considered capable of expansion if water quality can be maintained.

      There is considerable water pollution in some of Hong Kong's low-lying areas where streams and rivers cross agricultural land, often through nullahs in villages and towns, to enter the sea. In addition to large quantities of domestic waste, the streams receive agricul- tural waste emanating from the half-a-million pigs and six million chickens in the New Territories. Pilot schemes to collect or divert these wastes are in operation. However, the scale and complexity of the problem is such that it may prove economically feasible to deal only with selected areas in the near future.

Waste Disposal

The year saw the government working towards the enactment of the Waste Disposal Ordinance which, apart from providing the Director of Public Works with statutory powers over waste disposal, will also make special provision for the safe disposal of toxic and dangerous wastes.

The amount of waste generated continued to rise during the year. A total of 1,136,000 tonnes of solid waste was disposed of at controlled tips, and a further 697,000 tonnes

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      was burnt in incinerators. It has become increasingly necessary to seek alternative means of waste disposal which are both cost effective and environmentally acceptable. More incinerators are considered undesirable because of their high cost and air pollution problems, and there is a shortage of suitable land for more controlled tips. With this in mind, a composting plant at Chai Wan and a high density rubbish baling plant at Sai Tso Wan began operating during the year.

       The disposal of agricultural waste - especially pig manure - continues to pose a major problem. During the year, the New Territories Services Department ran a pilot scheme for the collection and disposal of agricultural waste. This entailed the waste being collected in baskets and taken by lorry to a tip for disposal. Although the amounts collected were small, the scheme was generally successful and it is hoped to expand it.

Air Pollution

The Air Pollution Control Division of the Labour Department administers the Clean Air Ordinance, the Clean Air (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations and the Clean Air (Restriction and Measurement of Smoke Emission) Regulations. The division is responsible for the control of air pollution by stationary sources, such as fuel-using plants and factories using non-combustion processes.

The division requires that plans for the installation or modification of furnaces, ovens, chimneys or flues be submitted to it to ensure that the design is up to anti-pollution standards. It organises inspections, investigates complaints, gives technical advice to polluters and takes legal action against persistent offenders. By monitoring and keeping under surveillance major air polluters, it helps to prevent the deterioration of air quality. During the year, the division was strengthened by the addition of eight smoke inspectors. Amendments were made to the Clean Air Ordinance and its subsidiary regulations to streamline administrative procedures and this has resulted in more efficient enforcement.

In 1979, the division investigated 975 air pollution complaints from the public. There were 58 prosecutions under the Clean Air Ordinance and its subsidiary regulations against persistent offenders, resulting in 58 convictions with fines ranging from $200 to $2,700. Four daily monitoring stations were operated to monitor atmospheric pollution levels. Readings at Queen Elizabeth Hospital showed a slight increase in sulphur dioxide con- centrations, registering about one 14th of the maximum permitted level of 1,310 ug/m3. The 12-month mean average of sulphur dioxide readings at Hung Hom, Sham Shui Po and Central Market stations were 57 ug/m3, 33 ug/m3 and 32 ug/m3, respectively. The smoke density readings at Hung Hom, Queen Elizabeth Hospital, Sham Shui Po and Central Market stations were 28 ug/m3, 37 ug/m3, 96 ug/m3 and 46 ug/m3, respec- tively.

       Beginning in June, staff of the division and students of the University of Hong Kong jointly conducted a nine-week survey of air pollution levels. Concentrations of sulphur dioxide, carbon monoxide and lead particulates were monitored at different altitudes in busy streets and in industrial areas.

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 with rushing streams, and open hillsides. Some 20 freshwater reservoirs of various sizes nestle among the hills, giving additional charm to the scenery.

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About three-quarters of Hong Kong's land area is covered with hills and the vegetation on them includes grass, scrub and some 125 square kilometres 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 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 recrea- tional purposes. It also gives particular protection to vegetation and wildlife.

During 1979, further progress was made to complete the country parks designation programme. An additional 10 parks, covering a total area of about 14,000 hectares, were designated. These are Lam Tsuen, Tai Mo Shan, Tai Lam Chung, Ma On Shan, Kiu Tsui, Clear Water Bay, Plover Cove Extension, and three small parks on Hong Kong Island. About 40 per cent of the total land area of Hong Kong is now country parks.

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 management services to deal more effectively with fire and litter - the most serious problems created by visitors.

The department also is responsible for fire protection, landscape rehabilitation, and the protection of flora and fauna. The Forests and Countryside Ordinance provides for the general protection and management of 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 342 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 scientific interest to ecologists, such as a site where a rare tree or a rare species of butterfly can be found. Up to December 31, 1979, more than 40 sites had been identified for future conservation action.

Topography and Geology

Hong Kong is part of an ancient Cathaysian landmass that some 1,000 million years ago extended from Shandong (Shantung) in northern China to the Gulf of Hainan. Follow- ing intensive folding of its metamorphic and crystalline rocks, intense mountain building occurred with granitic and volcanic intrusions during the Mesozoic period, about 250 million years ago. From the beginning of the Quaternary period, between two to three million years ago, the lower-lying areas were alternatively flooded or exposed as masses of water were locked up or released from ice sheets. The last marine incursion was about 10,000 years ago; since that time there have been sporadic depositions of sedimentary material eroded from the hills.

      This erosion of the hills and deposition in the valleys increased rapidly following the widespread colonisation of the Hong Kong area during the Song (Sung) Dynasty (960-1279).

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Large volumes of sedimentary material are brought regularly to Hong Kong by the Zhu Jiang (Pearl) River, but this process has been accelerated in recent years by extensive reclamation projects along the coastline. Hong Kong's granitic and volcanic rocks are deeply weathered and are prone to landslides if disturbed, but they can be excavated quite easily for use as reclamation material. Much of the natural landscape is changing as hills are removed and the fill is used at reclamation sites on Hong Kong Island and in Kowloon and the New Territories.

Apart from providing decomposed rock material as fill for reclamation, the hills that make up most of the total land area of Hong Kong have little economic value. Soils are thin and nutrient-deficient, supporting only a sparse cover of grass or scrub except in protected valleys or in water catchment areas where a policy of afforestation has succeeded in estab- lishing hardy pines with some deciduous trees. While Hong Kong does possess some deposits of iron, lead, zinc, tungsten, beryl and graphite, they have only been mined in small quantities.

Because Hong Kong lacks large rivers, lakes and underground water supplies, reservoirs have had to be constructed in large valleys such as Tai Lam Chung, in the New Territories, and in coastal inlets such as Plover Cove and High Island where the land has been reclaimed from the sea. The areas surrounding Hong Kong's reservoirs and their water catchment areas have become part of the government's Country Parks Scheme.

       The most important agricultural area Hong Kong possesses is the flat alluvium around Yuen Long in the New Territories. These alluvial lowlands have emerged from the sea only within the last 2,000 to 3,000 years, and some coastal areas are still prone to flooding when heavy rainfall coincides with high tides. The natural deposition of sediment is con- tinuing around the Deep Bay area where brackish water fishponds have been successfully established in areas that were once mud flats, mangrove swamp or salt-water rice paddies.

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, the 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 thunder- storms. Winds are generally moderate in strength and rather variable in direction, although the south-west monsoon is the prevailing wind affecting Southeast Asia. Afternoon tem- peratures 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 one to cause 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 about 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. Heavy rainfall from tropical cyclones often causes more damage and casualties than the wind.

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Spring is characterised by cloudy skies, periods of light rain or drizzle, and occasionally 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 is only occasionally interrupted by tropical cyclones or outbreaks of cold air, generally making it the best time 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 millimetres. The driest month is December when the monthly average is only 25.9 millimetres and when rain usually falls on only about five days in the month. October is the sunniest month when an average of 58 per cent of possible hours of sunshine is recorded. Climatological information on Hong Kong's weather is given in Appendix 39.

The severe weather phenomena that can affect Hong Kong include tropical cyclones between May and November, strong winds from the winter monsoon between October and March, frost and ice on hills and inland in the New Territories between December and February, and thunderstorms that are most frequent from April to September. Water- spouts, hailstorms and snow are rare. Although the lowest temperature recorded at the Royal Observatory in Tsim Sha Tsui is 0°C, sub-zero temperatures are recorded at times at higher elevations and in the New Territories.

The Year's Weather

Because the summer was much wetter than normal, Hong Kong's annual rainfall amounted to 2,614.7 millimetres in 1979 - 368.3 mm above normal. However, the year's mean cloudi- ness and temperatures were close to normal.

The first quarter of the year was very warm. The mean temperature for the first three months was 18.6° Celsius which is the third highest on record. The summer was cooler and less sunny than usual. Rainfall was well above average and August and September were exceptionally wet. The last quarter of the year was sunny and very dry: the total rainfall amounted to only 11.4 mm which is the second lowest on record. Due to the very dry conditions, numerous hill fires broke out and destroyed hundreds of thousands of trees and thousands of hectares of vegetation.

There were 29 tropical cyclones over the western North Pacific and the South China Sea during 1979; for six of them tropical cyclone warning signals were hoisted in Hong Kong. The hurricane signal, No. 10, was hoisted during the passage of Typhoon Hope on August 2. The last time this signal was hoisted was for Typhoon Elsie in October, 1975. Typhoon Hope was the most severe typhoon to affect Hong Kong since Typhoon Rose in 1971. Severe Tropical Storm Mac passed over western Lantau Island during the night of Septem- ber 23. It brought gales and heavy rain to Hong Kong. The four other tropical cyclones caused strong winds in Hong Kong but damage was minimal. The rainfall associated with these four tropical cyclones, together with that from Typhoon Hope and Severe Tropical Storm Mac, amounted to more than 1,000 mm which represents nearly half of the year's summer rain.

The 1978-9 winter was mild and January, 1979, was the warmest January since 1966. There were only three days with minimum temperatures below 10°C. The month was cloudier and less sunny than normal. Although most of the month's rainfall occurred in two short spells, the total rainfall was slightly above average. The strong monsoon signal was hoisted on three occasions while low temperature warnings were issued twice. Strong northerly winds set in during the evening of January 30 and the following two mornings were very cold.

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On February 1, the Royal Observatory recorded a minimum temperature of 6.1°C which was the lowest in 1979. The minimum temperatures at Tate's Cairn and Tai Mo Shan were -0.1°C and ---2.4°C, respectively. Temperatures began to rise the next day and the month as a whole was the second warmest February since 1884. The month's mean temperature was 18.9°C which is 3°C higher than normal. The warmest February was in 1973 with a mean temperature of 19.2°C. Although there was very little rain, the month was cloudier and less sunny than normal.

March was a wet month. There were only six days without rain at the Royal Observatory; the month's total rainfall was 71.9 mm, that is, 22.6 mm above normal. The month was also slightly warmer and more humid than usual. Fourteen aircraft were diverted due to fog on March 13. The strong monsoon signal was hoisted on three occasions while the yellow fire danger warning was only issued on two days.

April was much wetter than usual. The month's total rainfall amounted to 234.5 mm which is 73 per cent above average. Although the mean temperature for April was slightly below normal, the temperature on April 26 reached a maximum of 32.4°C - the highest April temperature since April 27, 1956. Four short periods of strong winds were experienced during the month and the strong monsoon signal was hoisted. The arrival of an intense cold front on April 2 brought heavy squally showers and thunderstorms, and flooding was reported in parts of Hong Kong. Widespread fog on April 7 and 8 affected the ferries between Hong Kong, Macau and Guangzhou (Canton).

May was cloudier and less sunny than usual. The month's total rainfall amounted to 311.6 mm which is eight per cent above average. More than half of this amount fell between May 13 and 15 when a trough of low pressure was near Hong Kong. Flooding was reported in many places and several minor landslips occurred.

Conditions in June were quite normal except that rainfall was below average. The wettest period was between June 7 and 11; on June 11 the rainfall amounted to 113.6 mm. The heavy rain resulted in several landslips and approximately 200 people had to be evacuated.

July was sunnier and hotter than usual. On July 5, temperatures rose to a maximum of 33.8°C which was the highest in 1979. A long spell of fine and hot weather was experienced from July 7 to 28 when daily mean temperatures exceeded 29°C every day. The month's rainfall was slightly above average with most of the rain falling on the last three days of the month. A total of four tropical cyclones developed over the western North Pacific and the South China Sea during July, and for two of them tropical cyclone warning signals were hoisted in Hong Kong. Typhoon Ellis passed about 100 nautical miles to the south- southwest of Hong Kong around midnight on July 5. It resulted in a short period of strong easterly winds and some showers in Hong Kong. Severe Tropical Storm Gordon was centred near Shantou (Swatow) early on July 29, and it weakened as it moved westwards across southern Guangdong (Kwangtung). Gordon was nearest to Hong Kong around 2 am on July 29 when it was about 40 nautical miles to the north. Although there were only a few hours of strong winds offshore, rainfall was very heavy. Many places in the New Terri- tories were flooded and some minor landslips occurred.

Typhoon Hope was the most significant weather development during August. The typhoon brought hurricane-force winds and torrential rain as it passed across the New Territories on August 2. Hope caused 12 deaths, injured 260 people and made several hundred people homeless. A number of vessels went adrift in the harbour and traffic came to a standstill. Widespread flooding occurred in the New Territories and many vegetable crops, flowers and fruit trees were destroyed or severely damaged. The passage of Hope set two records. The minimum instantaneous mean sea-level pressure of 961.6 millibars recorded on August 2 at the Royal Observatory is the lowest on record for August. The

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      hourly rainfall of 82.1 mm recorded at 3 pm on the same day also set a new record for August. Typhoon Hope, together with a tropical depression near Xisha (the Paracels), brought the month's total rainfall to 706.9 mm which is 286.7 mm above average. The month was also cloudier and less sunny than usual. The total duration of bright sunshine was 138.2 hours which ranks as the fourth lowest on record for August. Widespread thunder- storms occurred for several hours around noon on August 9.

       Heavy rain associated with Severe Tropical Storm Mac brought September's total rain- fall to 506.3 mm, which is 53 per cent above average. The month was less sunny and slightly cooler than normal. There have been very few occasions when two tropical cyclones have been centred within 400 nautical miles of Hong Kong at the same time. On September 19 the stand-by signal, No. 1, was hoisted for Tropical Storm Nancy, but as Nancy moved away westwards across Hainan Dao (Hainan Island) Severe Tropical Storm Mac ap- proached from the southeast and the stand-by signal remained hoisted. Mac passed over western Lantau Island during the night of September 23 and brought gales and heavy rain to Hong Kong. Mac left one person dead and 67 people injured. Many roads were flooded and several minor landslips occurred.

       October was the driest October on record with no rainfall registered at the Royal Observa- tory. It was also the sunniest, least humid and least cloudy October on record. There were no significant changes in the daily weather: every day was fine, sunny and dry. More than 2,000 fires occurred during the month. About 400 of these were hill fires which destroyed or damaged more than 200,000 trees and 1,600 hectares of vegetation.

       November was dry and windy. The strong monsoon signal was hoisted on five occasions and displayed for a total duration of 108 hours and 10 minutes. Both figures are the highest on record for November since the introduction of this signal in 1950. The month was also less sunny and cooler than usual. There were more than 1,600 fires reported in the month. About 200 of these were hill fires which destroyed more than 300,000 trees and 1,105 hectares of vegetation. Strong to gale force winds blew over Hong Kong from the evening of November 17 until the morning of November 19. Due to the very dry conditions, single fire which broke out on the morning of November 18 in the Tai Lam Chung area raged for 30 hours and destroyed some 265,000 trees and 500 hectares of vegetation.

       December was mild, sunny and dry. There was just one day with measurable rain recorded at the Royal Observatory: the total rainfall recorded was only 0.2 mm which is the seventh lowest amount on record for December. The mean temperature of 18.6°C was 1.1°C higher than normal, while the sunshine duration of 230.4 hours was 58.5 hours more than normal.

The Royal Observatory

The Royal Observatory is concerned with matters relating to meteorology and geophysics. Apart from the World War years of 1940-6, meteorological observations have been made at its Tsim Sha Tsui headquarters since 1884. The most important function of the observa- tory is the provision of weather forecasting services and tropical cyclone warnings to the public and international shipping and aviation.

       Routine weather forecasts for the public are prepared in the Central Forecasting Office and broadcast over radio and television at frequent intervals every day. Warnings of hazardous conditions such as thunderstorms, heavy rain, fire danger or low temperatures are issued whenever necessary. The Central Forecasting Office is also responsible for issuing weather forecasts twice daily for shipping covering areas in the China Seas. In April, 1979, a broadcast of comprehensive weather information for the south China coastal waters, in both English and Chinese, was introduced in response to the needs of fishermen, yachts-

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      men and the international shipping community. This replaced the forecast for fishermen which was broadcast only in Cantonese.

Services for aviation are provided at the Airport Meteorological Office. All aircraft leaving Hong Kong are given briefings, forecasts and weather charts. A continuous watch is kept on the weather at other airports and along air routes.

       Every year, more than 20 tropical cyclones form over the western North Pacific and the China Seas causing disruption to shipping and aviation. Tropical cyclones have caused substantial loss of life and property in Hong Kong. Whenever a tropical cyclone is located between latitudes 10°-30° North and longitudes 105°-125° East, warnings for shipping giving forecast positions up to 48 hours ahead are issued every three hours. These warnings are disseminated to ships at sea, to shipping companies and airlines, and to neighbouring countries. Objective forecasts of tropical cyclone movements are made four times daily by computer. The objective forecasts are used as guidance material for forecasters in the Central Forecasting Office and are also sent to other countries in the region. When tropical cyclones approach Hong Kong, warnings are issued at frequent intervals and are widely distributed by visual signals, telephone, radio and television, along with advice on what precautions to take.

      In order to provide these forecasting and warning services, the observatory collects about 15,000 weather reports each day from land stations, ships and aircraft. Coded meteorolo- gical messages are received from Peking, Tokyo and Bangkok through direct point-to-point circuits, and weather reports from voluntary observing ships are received by radio. All the weather reports received are processed by computer to provide analysis charts for use in the Central Forecasting Office.

       The observatory operates five meteorological stations in Hong Kong and an extensive network of special observing stations primarily manned by volunteers. These include a network of more than 100 rainfall stations and six tide gauges. The observatory also provides instruments for about 45 selected voluntary ships.

       In June, 1979, a temporary meteorological station at Chek Lap Kok Island was estab- lished to collect data for a feasibility study for a new airport. It is equipped with modern instruments including a pulsed laser ceilometer and a spark light visibility meter.

       The radar mounted on top of Tate's Cairn, 580 metres above mean sea level, is a valuable aid for tracking the centre of tropical cyclones which move within 400 kilometres of Hong Kong. A video time-lapse system is used in the Central Forecasting Office to record and play back the radar information. In order to receive high resolution photographs from the Japanese geostationary meteorological satellite, a data acquisition system was installed at the observatory towards the end of the year. Pictures received by this system are very helpful to forecasters in the analysis of weather situations and preparation of forecasts.

      Apart from routine weather forecasts for the public, specialised weather forecasts are prepared and issued to the power companies and others to suit their individual requirements. The observatory also answers inquiries on climatological and meteorological information from various government departments, industry and the public, and issues certificates for litigation purposes and for insurance claims.

       The observatory is responsible for Hong Kong's Time Service. Six-pip time signals are broadcast every 15 minutes on a frequency of 95 megahertz and are relayed by radio and television stations. The signals are also broadcast to ships at sea and aircraft in flight.

Instruments and Measurements

The observatory maintains meteorological instruments at various locations throughout Hong Kong. Anemometers are installed at 12 sites for wind information, which is particu-

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larly important during tropical cyclone alerts and is also used in connection with engineering projects. The observatory co-operates with the University of Hong Kong in operating anemometers at Cape D'Aguilar to record the vertical structure of winds, especially in relation to wind stress on buildings. As the majority of these instruments are unique in Hong Kong, all repairs, calibration and maintenance are done by observatory staff.

      Special meteorological instruments, including transmissometers used to measure runway visual range, are operated at Hong Kong International Airport, where the safety of aircraft depends on reliable and accurate meteorological measurements. In 1979, a new system of five anemometers to identify low-level wind shear along the airport approaches began operating. Based on information obtained from this system, warnings on significant varia- tions in winds occurring during the critical periods of take-off and landing are provided to pilots.

      The seismology section operates six seismographs in a specially-constructed cellar at the observatory's Tsim Sha Tsui headquarters. On average, tremors from about 800 earthquakes all over the world are detected and analysed each year. Other tremors, such as those from underground nuclear explosions, storm microseisms, local blasting or piling, are also 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.

      A telemetry network of three modern short-period seismographs was established during 1979 at Tsim Bei Tsui, Chi Ma Wan and Yuen Ng Fan. A microprocessor-based data acquisition system, based on a mini-computer, is being set up to process the data collected. The seismology section also operates three strong-motion accelerographs installed on bedrock, decomposed granite and reclaimed land. Data from these instruments is used to study the response of different geological structures to seismic waves.

      The observatory prepares bulletins on all earthquake tremors recorded, and participates in the Tsunami Warning System for the Pacific region. Tsunamis are abnormal sea waves caused by earthquakes. Whenever an intense earthquake is recorded with an epicentre in the Pacific Ocean or the South China Sea, a tsunami warning message is sent to Tokyo, Bangkok and Honolulu.

Geomagnetic measurements are made at the geomagnetic station at Tate's Cairn in a joint project with the University of Hong Kong. The observatory also monitors radio- activity. Regular measurements of beta and gamma activity in the atmosphere, in rainfall and in tap water, have been made since 1961 at the King's Park Meteorological Station. The general level of atmospheric radioactivity during 1979 was low.

      The concentrations of particulates and sulphur dioxide in the atmosphere are measured daily at the Tsim Sha Tsui headquarters and at King's Park. A derivative spectrometer at King's Park also provides a continuous record of sulphur dioxide concentrations in the atmosphere. This air pollution data is processed by computer and monthly summaries of the results are produced. The information is needed for a scientific study of the effects of local weather on the concentration of pollutants.

Research

     Apart from research in applied meteorology and geophysics, considerable effort is devoted to meet the demand for meteorological analyses required by industry and also various engineering projects. Consultative services are also rendered from time to time to government departments and to local and overseas organisations in relation to various weather-sensitive activities.

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The observatory participated actively in the Global Weather Experiment, organised by the World Meteorological Organisation, which was held from December 1, 1978, to November 30, 1979. Special radiosonde ascents were made on board a naval vessel in February, 1979, and on board m.v. Taipoosek in the South China Sea in May and June, 1979. The observatory also served as a data centre for ship weather reports in the Winter Monsoon Experiment, which was a regional sub-programme of the Global Weather Experiment. Data obtained in these experiments will be used in future research work, with a view to gaining a better understanding of the causes and predictability of weather.

The observatory is involved in numerical modelling by computer of storm surges - storm- induced high sea levels which occur during tropical cyclone passages. The findings are used to optimise design levels for many civil engineering projects, including sea-walls and the drainage of various reclamation sites. During 1979, computations were carried out for 10 projects, including the proposed power stations at Tap Shek Kok in Castle Peak, and Po Lo Tsui on Lamma Island.

Objective techniques to forecast tropical cyclone movements were refined during the year. A study was also carried out to evaluate similar objective forecast techniques in this region under the auspices of an international typhoon committee.

In addition, a study into wind shear conditions at Hong Kong International Airport based on aircraft reports and data from the special network of anemometers was completed.

20

Population

THE total estimated population at the end of 1979 was 5,017,000, comprising 2,611,600 males and 2,405,400 females. This represents an increase of 28 per cent on the 1969 population estimate of 3,906,100.

      The average annual rate of increase over the 10-year period was 2.5 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 16.4 to 11.7 per thousand. This was the result of the birth rate declining from 21.3 per thousand in 1969 to 16.9 per thousand in 1979, 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 there being fewer women in the prime child-bearing ages of 25 to 34, and by women generally having fewer children. In the second half, the decrease was mainly the result of fewer births. In recent years, later marriages also have contributed to this trend, along with im- provements in education and job opportunities.

      Reflecting the baby boom of the 1950s and early 1960s, the number of women in the fertile age group of 20 to 34 years will increase substantially from 618,500 in 1979 to 757,200 by 1989. To counter an anticipated large increase in the number of births during this period, the government is making available to those who desire them a whole range of family planning services. Continuous efforts are being made to encourage the development of small families.

      Hong Kong, with a land area of only 1,061 square kilometres, is one of the most densely- populated places in the world. The overall density per square kilometre at the end of 1979 was 4,729. 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 people per square kilometre; but for the New Territories it was 554 per square kilometre. These area densities will, of course, change with the development of new towns in the New Territories. Six new towns are being developed to alleviate high densities in the urban areas and to help provide an increasing population with better housing and an improved living environment.

      The population of Hong Kong is very young - in 1979 about 39 per cent were below the age of 20. But the median age of the population was 24.8, compared with 20.7 10 years ago. The age distribution of the population has also changed considerably. In 1969, 38.4 per cent of the population were under 15; now it is 26.5 per cent. The relative figure for those aged 65 and above has risen from 4.2 per cent to six per cent. As a result of the changing numbers of the young and the aged, the proportion of the working age population (those aged 15 to 64 years) has increased from 57.4 per cent to 67.5 per cent. This shows that there is a greater potentially productive population available to support children or those 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 742 per thousand in 1969 to 481 per thousand in 1979.

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      People in Hong Kong live longer nowadays. Between 1969 and 1979, the expectation of life at birth increased by four per cent for males and by about five per cent for females. The life expectancy for males born in 1979 is 70 years and it is 76.7 years for females.

      About 98 per cent of the population can be described as Chinese on the basis of language and place of origin. At the end of 1979, the provisional estimate of the number of non- Hong Kong Commonwealth citizens residing either permanently or temporarily in Hong Kong was 64,900. These comprised: British 23,400 (excluding members of the Armed Forces); Indian 13,900; Australian 7,800; Singaporean 4,200; Canadian 2,800; and other Commonwealth countries 12,800. The provisional estimate for non-Commonwealth alien permanent and temporary residents was 61,400. Of these, the largest groups were: American 10,600; Filipino 9,500; Pakistani 7,400; Japanese 7,400; Thai 6,200; Portuguese 6,000; Indonesian 2,700; German 2,100; Korean 1,600; French 1,400; and Dutch 1,000.

      About 57 per cent of the population is of Hong Kong birth. Most of these people, and the greater part of the immigrant population, originated from Guangdong (Kwangtung) Province 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 origins in other places of Guangdong (Kwangtung), Shanghai and the coastal provinces of China.

Marriages

All marriages in Hong Kong are governed by the Marriage Ordinance and the Marriage Reform Ordinance. Under the Marriage Ordinance, at least 15 days' notice of an intended marriage must be given to the Registrar of Marriages. The Registrar has discretionary powers to reduce the period of notice in special circumstances or to grant a special licence dispensing with notice altogether. But this is done only in the most exceptional circum-

stances.

      Marriages may take place either at places of public worship licensed for the celebration of marriages, or at any of the 12 full-time marriage registries and four part-time sub-registries located in the main urban districts and rural centres. During the year, 42,341 marriages were performed in the registries and 2,881 at licensed places of worship. The total of 45,222 was 4,822 more than in 1978. 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 marriages, and validates certain other marriages known as 'modern marriages' provided, in each case, they were entered into before October 7, 1971. The ordinance also makes provision for post-registration of these customary and modern marriages, and for dissolution of such marriages. During the year, 44 customary and 20 modern marriages were post-registered.

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

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     period and the expiration of one year from the date of birth, a fee of $5 is charged. During the year, 82,157 live births and 26,179 deaths were registered, compared with 79,173 and 22,843, respectively, in 1978. The figures, when adjusted for under-registration, gave a natural increase in population for 1979 of approximately 56,862.

      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, 1,609 births were post-registered. The principal reason given for non-registration at the time of birth was negligence, but a small 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.

      In July, 1979, responsibility for the registration of births, deaths and marriages was trans- ferred from the Registrar General's Department to the Immigration Department.

21

RIED TH

Natural History

HONG KONG is one of the world's most heavily populated places and large-scale housing and industrial development programmes have resulted in the rapid spread of urbanisation. However, factors such as the territory's generally hilly topography and the designation of water catchment areas have enabled a large expanse of the countryside to be preserved. It is in these locations that wildlife and many plant species can be found. Most of Hong Kong's countryside is under the protection of the Forests and Countryside Ordinance, the Wild Animals Protection Ordinance and the Country Parks Ordinance.

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. 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 increasingly scarce, yet they continue to be very important for many birds. Recent new sightings from woodland areas have included an assortment of Phylloscopus Warblers and there is growing evidence to suggest that the Black Baza, a bird of prey, may breed in Hong Kong.

Of the larger indigenous mammals, the Chinese Pangolin (Scaly Anteater) is seen occa- sionally. It grows to a length of about one metre and is protected by horny scales. Areas around the Kowloon reservoirs are inhabited by monkeys that originated from specimens either released or escaped from captivity, and they emerge from the trees to be fed by visitors. There are 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. Once, wild pigs were sufficiently scarce to warrant their being protected under law. But the numbers increased to such an extent that the damage to crops caused by wild pigs resulted in bitter complaints from farmers. Accordingly, this species was removed from the Second Schedule of the Wild Animals Protection Ordinance and is no longer protected.

Occasional reports are still received of less common species such as the Leopard Cat and Barking Deer - sadly these are often killed on roads. The increasing presence of people in the countryside means an uncertain future for these larger species.

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

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death from snake bite is 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 they 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.

      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.

      Since it was introduced to Hong Kong in 1938, the African Giant Snail has become a major pest in vegetable crops and gardens. Farmers are also troubled by several slugs. One of these - Veronicella - is a large, black slug sufficiently different from the other slugs to be placed in a separate family.

Aquatic Life

     Marine life forms in Hong Kong are diverse and mainly tropical in character. They include a large number of commercially-important species of fish, crustacea and molluscs. The types and quantities of fish prevalent fluctuate according to seasonal influences and also vary according to the area. The waters of Hong Kong can be broadly divided into a western sector, influenced by the Zhu Jiang (Pearl) River and predominately brackish, and an eastern sector, subject to the influences of the open sea. Various locations provide natural propagation and nursery grounds for many species of fish, crustacea and molluscs, and provide seasonal feeding for large transient predators, such as the Little Tuna, Dolphinfish, Sailfish and sharks.

      The presence of sharks in local waters was highlighted in 1979 when a number of swimmers were attacked and many sightings were made. Over the years, more than 20 species of shark have been recorded in Hong Kong waters, mainly in the eastern and south-eastern areas. Sharks have been sighted in Mirs Bay in the New Territories and as far south as Stanley and Deep Water Bay on Hong Kong Island. Their presence in Hong Kong is a result of the influence of warm ocean currents off the South China Sea during the summer months, in particular, July to September.

Sharks, which are common in Hong Kong and are potentially dangerous, are the Hammerhead Shark species and the True Shark family species, which can grow to more than three metres. Other commonly-found sharks which do not normally attack humans include the Cat Shark and the Leopard Shark.

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Flora

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The Hong Kong Herbarium is more than 100 years old. This government institution con- tains a collection of about 33,300 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.

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. These are listed in the new Check List of Hong Kong Plants (Agriculture and Fisheries Department). New publi- cations on flora include Hong Kong Freshwater Plants by I. J. Hodgkiss (Hong Kong Government Printer).

Before conservation, countless hillsides had been left bare of trees through centuries of cutting, burning and exposure to the elements. Their only cover was coarse grass or scrub. 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 growing numbers of people who spend their leisure time in the countryside.

Remnants of bygone forests - either as scrub forest or as well-developed woodland - can occasionally be found in steep ravines. These have survived the destructive influences of man and fire by their precipitous topography and their moist winter microclimate. It is in such places that many of the more interesting plants 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 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 territory's two universities and amateur botanists have been productive. Plant species previously unre- corded in Hong Kong have been found and are now represented in the herbarium collection. A new herb, Impatiens Hongkongensis, was named after Hong Kong by C. Grey-Wilson, of the Kew Herbarium.

Zoological and Botanical Gardens

The Hong Kong Zoological and Botanical Gardens, under the management of the Urban Council, was established as the Botanic Gardens in 1871 when the total area was about seven hectares. The layout of the present 5.35-hectare garden is strictly formal with wide

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paths, pavilions, flower beds and a central fountain. The fountain terrace, which is located on the roof of a 21,000 cubic metre-service reservoir, includes symmetrical flower beds containing roses, medicinal plants and annual bedding plants. In two nearby greenhouses, tropical shade-loving plants are cultivated. The gardens contain a wide range of plants from various climates but, in future, it is planned to concentrate more on native species.

      Zoological exhibits in the gardens comprise both animals and birds. They include Jaguars, Pumas, Orang-utans, Patas Monkeys, Crested Porcupines, Common Squirrel Monkeys, Tree Squirrels, Siamangs, Golden Agoutis, Celebes Black Apes, White-cheeked Crested Gibbons and Common Marmosets. Some of these animals have bred offspring in the gardens.

The bird collection, which is among the best in Asia, concentrates on rare or protected species. Altogether, more than 700 specimens representing about 300 species are housed. An excellent breeding record for birds in captivity has been achieved in recent years, including success with the White-naped Crane and the Count Raggi's Bird of Paradise, the latter being only the fifth instance on record in the world.

      The success of the bird collection is encouraging the creation of aviaries in the Urban Council's public parks. As a first step, a new display aviary has been built in an attractively- landscaped setting in Kowloon Park.

22

History

LE

SINCE its founding in 1841, Hong Kong's history has been characterised by periodic influxes of people. The year, 1979, will be remembered for its inflow of boat refugees from Vietnam and illegal immigrants from China. The optimism prevailing in 1978 as new programmes forged ahead to improve Hong Kong's prosperity and its quality of life was tempered as some resources were diverted to face new challenges.

But Hong Kong has met similar challenges before when great numbers of people have entered the territory. Both the 19th and 20th centuries have witnessed waves of migration because of outside political forces and the opportunities provided by Hong Kong's free market economy. Entrepreneurial Hong Kong has been able to turn these sporadic influxes to its advantage, becoming a leading manufacturing and commercial centre.

       Hong Kong Island was ceded to Britain by China under the Convention of Chuanbi (Chuenpi) in January, 1841. Until then, it had been an uninviting prospect for settlement, being mountainous and short of fertile land and water. But it possessed one outstanding asset its harbour which was largely the reason for the British presence. Within a few years ships from all over the world were using Victoria Harbour as they engaged in the China trade.

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Bandcam

       Hong Kong's second 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 138 years since the founding of Hong Kong, many changes have taken place but these two assets remain. The harbour, supplemented by a modern, international airport, has become one of the busiest in the world, and an enterprising and industrious population continues to build economic and social success.

Archaeological Background

Archaeological studies in Hong Kong, which began in the 1920s, have uncovered Stone Age artefacts at numerous sites scattered along the winding shoreline, testifying to events stretching back over several thousand years. More recently, extensive excavations at Sham Wan on Lamma Island and Chung Hom Wan on Hong Kong Island have revealed two main neolithic cultural traditions lying in stratified sequence. At lower levels there is coarse, cord-marked pottery together with finer decorated pottery, and chipped and polished stone tools. Cultural comparisons supported by several scientific datings indicate that the begin- ning of this culture in the area may have been around 3,000 BC. The evidence from the pottery shapes and decorations suggests that they may have been the result of contacts with the northern Chinese Stone Age cultures of Longshan (Lung-shan).

At the higher level, a cultural change is noticed when the pottery, soft and hard, is decorated with stamped geometric designs. This geometric tradition, of which the best

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HISTORY

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known example is the 'Kui' or 'double-f' pattern a late geometric motif common in South China - began about 1,500 BC. The resemblance of pottery decorations to the northern bronze motifs of the Shang Dynasty (1766-1154 BC) and the Zhou (Chou) Dynasty (1122- 249 BC) has led to the hypothesis that they inspired the geometric pottery tradition of the south. The excavations also reveal the appearance of bronze in this area around 600 BC and the advent of the Chinese of the Qin (Ts'in) (221-207 BC) and Han (206 BC-220 AD) Dynasties as evidenced by the discovery of coins from this period.

      Although little is known of the early aboriginal inhabitants themselves, it is likely that they belonged to the ancient 'Yueh' tribes of South China, and were of Malaysian-Oceanic origin. The abundance of seashore sites suggests that they were boat people, sailing freely in the sheltered waters around Hong Kong's many islands, frequently landing and spending some time ashore. They lived by fishing, but may have practised some agriculture close to their landing sites. An interesting archaeological feature, almost certainly made by these people, is the rock carvings of geometric patterns found at Shek Pik, Lantau Island; on Po Toi and Cheung Chau Islands; and at Big Wave Bay, on Hong Kong Island.

      China's military conquests during the Qin (Ts'in) and Han Dynasties must have brought Chinese in increasing numbers to the south and exerted pressure on the local population. The Han tomb at Lei Cheng Uk, in Kowloon, stands as firm evidence of the presence of Han Chinese in this area.

      Although the early garrisons may have cultivated the land for self-subsistence, the Chinese chronicles contain no records of land tenures until the Song (Sung) Dynasty (960-1279). A strong tradition exists locally that the first Chinese settlers to arrive were the family surnamed 'Tang' whose members subsequently established the peasant and land- owner traditions in this area.

      Hong Kong's connection with the Song (Sung) Dynasty is rich in legend and tradition. As the Mongol armies pursued the young Song emperor and his shattered forces into the south, the final defeat of the Song forces is reputed to have taken place in the Guangzhou (Canton) estuary. There is a belief that following the defeat the court fled to Lantau Island where many loyal Song courtiers lie buried. Some archaeological support exists since Song relics have been found from time to time on the island, while in 1962 a rich cache of thou- sands of Song coins was accidentally uncovered during the construction of the Shek Pik Reservoir. Another site - Nim Shue Wan, on the east coast of Lantau although never excavated, has been known for many years to local archaeologists as a rich source of Song pottery.

The fate of the aboriginal boat people of this area is uncertain. It is believed that some may have fled to other islands, while others remained and were absorbed by the Chinese who had gradually assumed sway over the region. The present Tanka boat people, who are undoubtedly of ancient origin, fit in best as the possible descendants of Hong Kong's early inhabitants.

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 Guangzhou (Canton) but found conditions unsatisfactory, mainly because of the conflict- ing viewpoints of two quite dissimilar civilisations.

The Chinese regarded themselves as the only civilised people and foreigners trading at Guangzhou (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

HISTORY

215

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, 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 Ze-xu (Lin Tse-hsu) in March, 1839, as special Com- missioner in Guangzhou (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.

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 settlement of Sino-British commercial relations. Arguing that in surrendering the opium the British in Guangzhou (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 agree- ment was reached between Elliot and Qishan (Keshen), the Manchu Commissioner. Lin had been replaced by Qishan after his exile in disgrace over the preliminaries of a treaty.

Under the Convention of Chuanbi (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 Chuanbi (Chuenpi) terms. The cession of a part of China aroused shame and anger among the Chinese, and the unfortunate Qishan (Keshen) was or- dered to Peking in chains. Palmerston was equally dissatisfied with Hong Kong, which he con- temptuously described as 'a barren island with hardly a house upon it', and refused to ac- cept it as the island station that had been demanded as an alternative to a commercial 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 Chang Jiang (Yangtze River) and threatening to assault Nanjing (Nanking), he brought the hostilities to an end by the Treaty of Nanjing (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.

URBAN COUNCIL LIBRARIES

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HISTORY

      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 Nanjing (Nanking), deviated from his instructions by successfully demanding both a treaty and an island, thus securing Hong Kong. In addition, five Chinese ports including Guangzhou (Canton) were opened for trade. The commercial treaty was embodied in the supplementary Treaty of the Humen (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 Tianjin (Tientsin), 1858, which ended the war, gave the British the privilege of diplomatic representation in China. The first British envoy, Sir Frederick Bruce, who had been the first Colonial Secretary in Hong Kong, was fired on at Dagu (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 Guangzhou (Canton), secured from the Viceroy the perpetual lease of the peninsula as far as Boundary Street, including Stonecutters Island. The Convention of Peking, 1860, which ended the hostilities, provided for its outright cession.

      Other European countries and Japan subsequently demanded concessions from China, particularly after Germany, France and Russia 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, was 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 insofar as may be inconsistent with the military requirements for the defence of Hong Kong'. An Order in Council of December 27, 1898, revoked 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.

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217

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.

       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 instructions 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 Shandong (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 Guangzhou (Canton). This petered out, but not before causing considerable 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 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. Guangzhou (Canton) fell to the Japanese in 1938, resulting in a mass flight of refugees to

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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.

      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 over- whelmed and Hong Kong surrendered on Christmas Day. The Japanese occupation lasted for three years and seven months.

Trade virtually disappeared, currency lost its value, the supply of food was disrupted and government services and public utilities were seriously impaired. Many residents moved to Macau, the Portuguese province hospitably opening its doors to them. Towards the latter part of the occupation, the Japanese sought to ease the food problems by organising mass deportations. In the face of increasing oppression, the bulk of the community remained loyal to the allied cause. Chinese guerillas operated in the New Territories and escaping allied personnel were assisted by the rural population.

       Soon after news of the Japanese surrender was received on August 14, 1945, a provisional government was set up by the Colonial Secretary, Mr (later Sir) Frank Gimson. Rear Admiral Sir Cecil Harcourt arrived on August 30 with units of the British Pacific Fleet to establish a temporary military government. Civil government was formally restored on May 1, 1946, when Sir Mark Young resumed his interrupted governorship.

The Post-War Years

Following the Japanese surrender, Chinese civilians - many of whom had moved into China during the war - returned at almost 100,000 a month. 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 Guangdong (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 about five 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 woollens and, in the late 1960s, man-made fibres and made-up garments. The fact that textiles and clothing have consistently taken up 46 to 53 per cent of Hong Kong's total domestic exports each year since 1959 clearly shows the economy's dependence on these items. While textiles remain the mainstay of Hong Kong's economy, major contributions are made by plastic goods, electronic products, watches and clocks, and other light industries.

      The development of Hong Kong's economic base has enabled the government to increase spending on social services over the years. As a result, more than two million people now live in some form of public housing managed by the Housing Authority. During the 1978-9 financial year, 87,479 people moved into Housing Authority accommodation, lifting the

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total population of the authority's 88 estates to almost two million. A further 131,300 live in subsidised housing provided by the Hong Kong Housing Society, a government-aided voluntary organisation. Since 1977, the Housing Authority also has been charged with operating a government-funded Home Ownership Scheme which provides flats for sale to families within a set income limit.

       Expenditure on education has increased significantly - from $694 million in the 1972-3 financial year to $2,196 million or 17.5 per cent of total government expenditure in the 1979-80 financial year. Free and compulsory primary education was introduced in 1971 and, in 1978, sufficient places were made available for every primary school-leaver to com- plete three years of free secondary education.

      Major achievements in social welfare have been made by the government and voluntary agencies. Looking to the future, a comprehensive White Paper entitled 'Social Welfare into the 1980s' was published in April, 1979. In the 1979-80 financial year, government expendi- ture on social welfare, including subventions to voluntary agencies, increased to a total of $630 million compared with $87.7 million in the 1972-3 financial year.

Medical and health services have been continually improved. A development programme over the next five years will provide 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. During the post-war years, a comprehensive system of protection for wages, rest days, statutory holidays, paid annual leave, maternity leave, sick pay and severance payments has been built up, and the benefits provided have improved considerably. In September, 1979, the minimum age of 14 years for employment in industry was extended to apply to the non-industrial sector, and it will be increased to 15 in September, 1980.

New roads and flyovers have completely transformed road travel in the post-war era. But while many major road building programmes have proceeded, Hong Kong's unusually crowded conditions have posed a unique set of problems. The government's White Paper on Transport, published in May, 1979, gives top priority to the expansion and improvement of public transport to the 1990s.

One of the major events of 1979 was undoubtedly the opening of the underground Mass Transit Railway. The first section of the modified initial system, between Shek Kip Mei and Kwun Tong stations, began operating in October. The 15.6-kilometre system, which links Central District on Hong Kong Island with Kwun Tong in Kowloon, was scheduled to be fully operational by February, 1980.

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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 September, his term of office was extended to April, 1982, which will make Sir Murray Hong Kong's longest-serving Governor.

In late March, 1979, following an invitation by the Chinese Minister of Foreign Trade, Sir Murray went to China for 11 days on the first official visit ever made to China by a Hong Kong Governor. He met with senior Chinese officials and discussions covered Hong Kong's role in China's modernisation programmes.

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.

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.

Executive Council

The Executive Council consists of five ex-officio members (the Chief Secretary, the Com- mander 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

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Alongside the vigorous activity of big business in Hong Kong, many Chinese festivals continue to be celebrated with great enthusiasm. Small villages on the territory's many islands have maintained themselves by fishing for hundreds of years, and most folk pay homage to the Taoist sea goddess Tin Hau, or Queen of Heaven. One of the most popular celebrations is at the Tin Hau temple in Joss House Bay, where hundreds of craft adorned with flags, pennants and banners gather to observe her birthday the 23rd day of the third moon. In 1979, villagers from the island of Tap Mun held their special celebration for Tin Hau - an event which is organised only once every 10 years. Legend has it that after the Heavenly Queen saved a group of ship- wrecked villagers from drowning, they vowed to commemorate her mercy. Some family members now living in Britain, Holland and the United States returned for the colourful festivities. On the island of Cheung Chau, a temple dedicated to Pak Tai, Supreme Emperor of the Dark Heaven, is the focal point for the famous Bun Festival. Thousands of buns marked with Chinese characters are strung on to bamboo towers for a traditional 'ghost feast'. During the Dragon Boat Festival, which is based on a folk tale some 2,500 years old, exuberant teams in long, narrow dragon boats race each other, spurred on by the quickening beat of their drummers.

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Previous page: Water taxis ferry people from fishing junks moored at Tap Mun Island for Tin Hau celebrations. Left: Dec- orative flags exhort teams competing in the Dragon Boat Festival races; elders in tradi- tional dress at the opening ceremony of the Tap Mun Festival; coils of incense, offered by worshippers, in the Pak Tai temple on Cheung Chau.

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      A continual procession of people, intent on honouring the birthday of the Taoist sea goddess, Tin Hau, snakes its way around the Joss House Bay temple in the New Territories.

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Churning spray and straining hard, a Dragon Boat crew gives one last, mighty thrust of paddles to halt their beast following a close contest at Shau Kei Wan. The Dragon Boat races re-enact a legend in which fishermen struck the water with their paddles to prevent fish from devouring a noble statesman.

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instructions of the Secretary of State. In September, 1978, the number of appointed members was increased from nine to 10, making one official 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 prerogative powers or of powers con- ferred 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 govern- ment 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 (chairman), 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. It has two sub-committees, the Public Works Sub-Committee and the Establishment Sub-Committee. The Public Works Sub- Committee is responsible for reviewing the progress and priority of projects in the Public Works Programme. The Establishment Sub-Committee is responsible for examining staff requests.

The Public Accounts Committee was established by resolution of the Legislative Council in May, 1978. The committee consists of a chairman and six members, all of whom are

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unofficial members of the council. Its task is to consider reports of the Director of Audit on the government's annual accounts, on other accounts required to be laid before the Legislative Council, and on any matter incidental to the performance of the director's duties. The main aim of the committee is to establish the circumstances surrounding the matters reported on by the Director of Audit and to consider if any remedial action is necessary.

UMELCO

The Unofficial Members of the Executive and Legislative Councils (UMELCO) play a significant role in the administration of Hong Kong. They help to shape government policies, enact legislation, and bring about improvements in public administration. The unofficial members are leading representatives of the community and are knowledgeable on many aspects of public affairs. In addition to membership of the two councils, they serve on the extensive network of government and community committees and boards which are so important in Hong Kong. Because of their wide experience, their views carry considerable weight. In recent years, they have been selected from a wide spectrum of society.

The unofficial members are supported by the UMELCO Office which provides them with administrative services and, under their direction, handles complaints and representa- tions from the public on the whole range of government activities. Hundreds of individual grievances or appeals against government decisions are dealt with and, where necessary, rectified each year. In carrying out this function, unofficial members have access to govern- ment papers and senior officials and, when appropriate, they can challenge established procedures and policies or refer issues to either of the two councils.

A special UMELCO Police Group, together with the Attorney General, monitors the handling of complaints by the Complaints Against the Police Office in the police force. An ICAC Complaints Committee similarly monitors complaints against the Independent Commission Against Corruption.

Besides making regular and formal contributions to the Executive and Legislative Councils, unofficial members spend a great deal of time examining proposals for new policies and draft legislation in informal groups set up for this purpose. These groups often have thorough discussions with official representatives and representatives of public bodies. Public views are taken into account during these deliberations, which not infre- quently result in amendments to proposed policies and legislation.

There is substantial informal day-to-day contact between unofficial members and govern- ment officials, during which views are exchanged on matters of public concern and on matters which are brought to their attention by members of the public.

Urban Council

The Urban Council consists of 24 members, 12 being appointed by the Governor and 12 being 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 a further term. The chairman is elected by the council and can be an appointed member, an elected member, or any person who is not a member but has agreed to accept election to such office.

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. The council meets in public once a month, but most of its business is decided by the standing committee of the whole council, 13 select committees and 26 sub-committees, boards and panels.

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The Urban Council's responsibilities are restricted to Hong Kong Island, Kowloon and New Kowloon, which have a population of nearly four million. The council's main duties are: public sanitation and cleansing; the licensing and hygienic control of all food premises, offensive trades and bathhouses; and the management and control of civic centres, museums, football stadia, markets, abattoirs, hawkers, cemeteries, crematoria and funeral parlours. Other responsibilities include the 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; the provision and promotion of cultural services and outdoor entertainment; the licensing of places of public entertainment; and liquor licensing. In all these fields, the council's policies and decisions are carried out by the Urban Services Department, the director of which is the principal executive officer of the council under the Urban Council Ordinance.

The council's main revenue is derived from its share (34.8 per cent) of the yield from rates in the urban area. Fees and charges provide other sources of income. In the 1979-80 financial year, the council worked to an overall budget of $680 million.

Advisory Committees

An important aim of the government is that of improving its contacts with the population 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 employees and members of the public, are a distinctive feature of the system of government 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 are created than disbanded because of 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 Territories to which have been added eight district advisory boards), or a particular industry (such as the Textiles Advisory Board), or deal with a particular area of community concern (such as the Action Committee Against Narcotics), or of government activity (such as the Transport Advisory Committee). Other examples of such bodies are the Board of Education, the Medical Development Advisory Committee, the Social Welfare Advisory Committee, the Labour Advisory Board, the Trade and Industry Advisory Board, the Social Security Appeals Board, the Metrication Committee and the Country Parks Board.

Civil Service

The civil service provides the staff for all government departments and other units of the administration. During 1978-9 financial year, the number of posts in the civil service grew from 126,500 to 134,700, an increase of six per cent. Recruitment was maintained at high level and the number of officers increased by 6.1 per cent during the same period from 115,700 to 122,800. Of the total strength, 97.5 per cent were local officers. This indicated that, at that time, one person in every 17 of the estimated adult working popula- tion - or one in 40 of the total population - was 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 37,300. 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,

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public works and utilities, urban cleansing and public health, and the police, are not always servants of the central government. In Hong Kong, the Medical and Health Department (16,400), the Public Works Department (17,200), the Urban Services Department (22,200) and the Royal Hong Kong Police Force (24,400) account for a total of 80,200 posts or about 60 per cent of the entire civil service.

       The service has grown from 17,500 in 1949 to about 69,000 in 1967 and now to nearly 123,000. 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 1979-80 financial year, this is estimated to be about $3,150 million, excluding pensions. This is about 38 per cent of the total estimated recurrent expenditure for the year.

       During 1978 and 1979, a number of disputes occurred with individual civil service staff associations pressing their claims for more pay. The reasons behind these claims were complex, but one important aspect was the time which had elapsed since the last compre- hensive review by a salaries commission in 1971. The predominant theme of the associations' claims was that they were underpaid relative to other groups of civil servants, rather than to people employed in the private sector.

       A new Standing Commission on Civil Service Salaries and Conditions of Service was appointed in January, 1979. It immediately embarked on a review of the principles and practices governing civil service pay, and began examining the pay and structure of indivi- dual grades. This commission was different from previous salaries commissions in that it was permanent, and was composed entirely of part-time members who were not government officials. An unprecedented degree of consultation with staff associations was involved in the establishment of the commission and, in its first months, the commission continued and developed this trend. The commission made its first report in July on the principles and practices governing civil service pay. Recommendations on pay levels for individual grades were submitted to the government three months later, in October.

       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 Establishment Sub- Committee. The Finance Committee examines all requests for additional posts 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 relations, 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 eight policy branches, two resource branches, a branch dealing with the machinery of government, and a branch dealing with New Territories' affairs. Each branch, except the Administration Branch, is headed by a secretary. The policy branches are based on programme areas, as indicated by their titles: Economic Services, Environment, Home Affairs, 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 interests of Hong Kong students, including nurses and government trainees in Britain.

The Appointments Division of the London Office is responsible for all government recruitment in Britain. The division also recruits people of Hong Kong origin in the United Kingdom to the 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 com- munities in the north of England and Scotland.

Government Departments

The administrative functions of the government are discharged by 47 departments, most of which are organised on a functional basis and have responsibilities 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. However, there is a necessary and growing regional element in the way in which many departments are organised, and this is particularly important in the extension of services to the new towns of the New Territories.

Home Affairs Department

One of the main functions of the Home Affairs Department is to monitor public opinion on current affairs, to assess public response to proposed government policies and activities,

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and to promote better understanding, particularly where government activities are causing dissatisfaction. This function is generally achieved by personal contact with all sectors of the community. Other means of ascertaining public reaction are through the monitoring of talk-back radio programmes, complaints made at City District Offices, correspondence in the daily newspapers, public consultations on major policy issues, and the conducting of public opinion surveys.

In discharging its various functions, the department stands a little apart from the main executive machinery of government. However, it maintains close contact with unofficial bodies such as the Tung Wah Group of Hospitals, Po Leung Kuk, kaifong associations, district and clansmen's associations, mutual aid committees, multi-storey building owners' corporations, and religious and charitable organisations.

The department runs the City District Office Scheme which was introduced in 1968 to improve communications between the government and the people. There are 10 city district offices and 16 sub-offices in the crowded urban areas of Kowloon and Hong Kong Island. A variety of services are offered, the best known being the public inquiry service which dealt with more than 3.9 million inquiries in 1979. 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 to fill them in. It also operates a 24-hour weather in- formation service during typhoons and heavy rainstorms when the city district offices are kept open for 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 crime, keeping Hong Kong clean, and recreation and culture, particularly for young people. People are also able to discuss public affairs through the medium of area committees and city district committees which are serviced by city district officers and their staff.

Much of the community work undertaken by the city district offices is done through mutual aid committees. These were first formed in 1973 to encourage residents of multi- storey buildings to co-operate in tackling the problems of security and cleanliness. At the end of 1979 there were 3,052 of these committees in the urban areas, an increase of 194 over 1978. The Mutual Aid Committee Scheme has provided many people with an addi- tional channel of communication with the government.

Use of the Chinese Language

      The year saw a further expansion in the use of Chinese by government departments in dealing with members of the public. The appointment of more non-English-speaking people to serve on advisory boards and committees has further increased the demand for high- quality translation and interpretation. To meet this demand, the Home Affairs Department has intensified its training programme for Chinese language officers.

The government's policy is to accord Chinese equal status with English in government communications with the public, and to promote the widest possible use of Chinese in government departments in this context. To ensure conformity with the policy, regular visits to government departments were made during the year by staff of the Chinese Language Division of the Home Affairs Department to monitor performance and evaluate the quality of the services provided. Where appropriate, recommendations for the improve- ment of services were made to the departments.

Throughout the year, the Chinese Language Division of the Home Affairs Department continued to undertake the translation of documents of major significance. Assignments included the Governor's policy speech at the opening of the Legislative Council; the

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Financial Secretary's Budget Speech; the 1979-80 Budget: Economic Background; various government Green and White Papers; the Hong Kong Annual Report (Hong Kong 1980); the Royal Hong Kong Police Force 1978 Annual Report; Report of the Working Party on the Comprehensive Review of the Workmen's Compensation Ordinance; Report of the Public Services Commission, Hong Kong, for the year 1978; Report of the Advisory Com- mittee on Diversification; the 1978 Hong Kong Narcotics Report; First Report on Civil Service Pay by the Standing Commission on Civil Service Salaries and Conditions of Service; Survey Report on Metrication in Everyday Consumer Activities; Agreement between the Kowloon-Canton Railway and the Chinese Authority; and the Report of the UMELCO Police Group, 1978.

       The division also continued to sponsor a youth cultural and arts competition that included contests in Chinese translation, writing, speech making, inter-school debate, calligraphy and painting, and radio quizzes on the knowledge of Chinese philosophy, culture and literature. The objective of these contests is to promote interest in the study of the Chinese language and culture, and to raise the standard of Chinese among the younger members of the community.

New Territories Administration

The New Territories is administered as an integral part of Hong Kong, but in a different way from the urban areas of Hong Kong Island and Kowloon. The New Territories comes under a district office system with the district officer largely drawing his authority from his responsibilities as a land officer.

       The system has been modified accordingly to keep pace with the changing times. These changes have become more evident in the past few years with the development of six new towns which will house some two million people, smaller-scale public development in various rural areas, and considerable private development. The six new towns are Tsuen Wan, Tuen Mun, Sha Tin, Yuen Long, Tai Po and the Fanling-Sheung Shui-Shek Wu Hui region.

       Since 1974, the New Territories Administration has been headed by a secretary who has the overall responsibility for co-ordinating all government activities in the New Territories, particularly those relating to development, community building and services, land, and security. The secretary remains the land authority, which means that the main executive functions of the administration are tied to the allocation, disposal, acquisition and control of land.

       The wide-ranging urban development in the New Territories has necessitated an in- creased commitment to community relations. Traditional links between the government and the people have been through the rural leaders elected to the 27 rural committees of the New Territories. These rural leaders have, in turn, formed the nucleus of the Heung Yee Kuk, a statutory body which advises the government on New Territories' matters. The changing character of the region has brought with it new, urban-based organisations such as mutual aid committees, fight crime committees, and groups with interests in the arts, recreation and sport, and a host of other community activities.

       In 1977, the traditional rural and newer, urban-based organisations were brought together in each administrative district to form district advisory boards. These boards have a majority of unofficial members representing a wide cross-section of each local community. They advise the government on all matters affecting the well-being of their communities and have funds to promote cultural and sporting activities, and to implement minor environ- mental improvements. The boards already have made an impact and response to their initiatives and activities has been very encouraging. The boards are not intended to dispense

228

CONSTITUTION AND ADMINISTRATION

with the long and well-established links of communication with rural people who live in the New Territories' 651 villages; their objective is to broaden the consultative process. The shape and style of the New Territories Administration has also changed. In 1976, the post of district officer at Tsuen Wan - where there is now a population of well over half a million was upgraded to that of town manager with special responsibilities to promote and encourage community involvement. In 1977, Development and Community Affairs Divisions, each headed by an assistant secretary, were established to co-ordinate the administration's efforts in the districts.

In 1979, the Tai Po District was split, bringing the number of administrative districts to eight Islands, Northern, Sai Kung, Sha Tin, Tai Po, Tsuen Wan, Tuen Mun and Yuen Long. A regional commissioner was also appointed for the north-western New Terri- tories taking in the districts of Northern, Tai Po, Tuen Mun and Yuen Long. The regional commissioner's task is to co-ordinate and monitor the implementation of government policies in the region, to ensure that government policies are fully explained, and to see that the opinions of those living in the region are made known to the government. It is envisaged that there will be four regional commissioners covering the north, south, east and west of the New Territories as the population increases during the 1980s.

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 Govern- ment to operate offices in London, Washington, Geneva and Brussels to maintain and improve commercial relations with other countries.

Judiciary

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, conveyed through the Secretary of State. District judges are appointed by the Governor, by instrument under the Public Seal, and magistrates by the Governor by

warrant.

The Judiciary tries all prosecutions and determines civil disputes, whether between in- dividuals 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.

English common law and the rules of equity are in force in Hong Kong, so far as they may be applicable to local circumstances. English Acts of Parliament are in force in Hong Kong only if applied by a Hong Kong Ordinance, by their own terms, or by an Order in Council.

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.

The Labour Tribunal provides speedy settlement of individual money claims arising from contracts of employment.

The Lands Tribunal adjudicates on statutory claims for compensation relating to land. The tribunal's province includes claims made under the Mass Transit Railway (Land

CONSTITUTION AND ADMINISTRATION

229

Resumption and Related Provisions) Ordinance, which deals with land acquired for the Mass Transit Railway.

The Small Claims Tribunal has the exclusive jurisdiction to deal with monetary claims involving amounts not exceeding $3,000. The procedure followed is simple, informal and legal representation is not allowed.

Magistrates exercise criminal jurisdiction over a wide range of indictable and summary offences. Their powers of punishment are restricted to a maximum of two years' imprison- ment 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 imprison- ment imposed by magistrates, for two or more offences tried together, may not exceed three years. Magistrates hold preliminary inquiries to decide whether persons accused of the most serious offences should be committed for trial in the High Court. They also transfer criminal cases to the District Court for trial, on the application of the Attorney General. There is a Coroner's Court in Kowloon for the whole territory.

At the beginning of 1979, about 200 people from varied backgrounds were appointed as lay assessors to assist in the Magistrates' Courts. Being bilingual and well-equipped with a knowledge of local customs, traditions and community feelings, the assessors sat with expatriate magistrates hearing cases involving dangerous drugs, robbery and burglary, theft, common assault and traffic offences. More lay assessors are needed and the govern- ment will invite those willing and capable to come forward.

The District Court, established in 1953, has jurisdiction over 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 and Labour Tribunal matters. Trial of both civil and criminal proceedings in the District Court is by a judge sitting alone. 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 dealt with in all courts for the years 1977-9 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. Its jurisdiction corresponds 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.

Legal Aid

The Legal Aid Department administers legal aid schemes for both civil and criminal cases. The department conducts most legal aid cases through its own professional officers, sup- ported by junior staff, and is assisted by members of the Bar Association and the Law Society of Hong Kong.

In Hong Kong, legal aid, which is subject to a means test, can be granted to both resi- dents and non-residents. People of all nationalities are entitled to seek legal aid if they have a cause of action here.

The government keeps the means test under continual review. People with a real capital of up to $70,000 plus a real monthly income of up to $3,000 have been known to qualify for legal aid.

230

CONSTITUTION AND ADMINISTRATION

       People wishing to apply for legal aid can make their applications at the department's headquarters in Des Voeux Road, Central District, or at the Kowloon Branch Office in Nathan Road, Mong Kok. Their cases are processed by full-time legal aid officers. When all the evidence has been gathered and the relevant law is applied, a decision is made about whether to grant or refuse legal aid. If aid is refused, the applicant has a right of appeal to the Registrar of the Supreme Court.

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, often for fees which are smaller than those earned in private cases.

Civil Legal Aid Scheme

Legal aid in civil cases is provided by the Legal Aid Department if an applicant can show he has a prima facie case based on tenable evidence or, if he is a defendant in the proceed- ings, that he has a valid defence. There is no fee required for making an application for legal aid.

       When aid is granted, the aided person is required to make a small contribution towards the cost of his case, depending on his assets. In cases of hardship, contributions can be paid by 12 or more instalments. If aided people are successful in their litigation (about 93 per cent are) and costs are obtained from their opponents, then all contributions are repaid to them.

After legal aid is granted, the case may be sent to the department's Litigation Unit for conduct up to finalisation. In these cases, the department's professional officers essentially play the role of solicitors; the Bar is briefed in cases where it would be normal to brief a barrister in private practice. Cases of particular complexity, importance or urgency are referred to a specialist section of the Litigation Unit known as the 'task force'.

Other cases may be assigned to solicitors in private practice. These solicitors generally conduct cases tried in the District Court. In the High Court and in the Court of Appeal, they brief the Bar in the ordinary way. Appropriate fees are paid to them by the Legal Aid Department.

The types of cases for which legal aid is available extend across a wide range of civil actions. They include traffic accident claims, landlord and tenant cases, claims in respect of industrial accidents and workmen's compensation, and every branch of family law ranging from divorce, separation, maintenance and custody to wardship. Cases such as admiralty, bankruptcy and company winding-up proceedings are also covered; the majority of these cases are of social importance because they deal with employees' wages and severance pay.

Criminal Legal Aid Scheme

Jurisdiction for aid by the Legal Aid Department in criminal cases covers the District Court, the High Court and the Court of Appeal (including appeals heard from the Magistrates' Courts to the High Court).

       While there is a means test for criminal legal aid, as in civil legal aid, only a small number of applications for aid have been refused. 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 granted even to accused people who wish to plead guilty and only require pleas in mitigation of sentence.

CONSTITUTION AND ADMINISTRATION

231

       Subject to the means test, legal aid is mandatory in appeals in capital cases. But in other appeal cases, aid is granted only if the department's director considers that there are valid grounds for appeal. This policy, however, is operated with compassion.

Administration of the Legal Aid Schemes

The government is committed to an adequate legal aid system within its programme of social justice. In January, 1967, the Legal Aid Department comprised one professional officer assisted by five junior staff members. It occupied two small rooms in the old Supreme Court Building. Today, the establishment consists of 34 professional officers, 48 law clerks, two executive officers and the necessary supporting staff; in all, more than 200 people in offices of 2,865 square metres. Plans are proceeding to expand the legal aid schemes in the years ahead.

Over the years, tens of millions of dollars have been obtained through legal aid for people involved in civil cases. Most of these cases, which brought justice to aided people, would not have seen the light of day if it had not been for legal aid. Financial figures do not show, however, what legal aid has achieved in criminal cases. Many people acquitted in criminal trials and successful appellants in criminal appeals owe their freedom to its ready availa- bility.

Legal Assistance and Advice Schemes

Two new schemes offering free legal assistance and advice have been organised under the auspices of the Law Society of Hong Kong. Financed by government subvention at an estimated cost of more than $3 million a year, the schemes reflect the continued importance attached by the government to the availability of professional legal advice and representa- tion. The two schemes are managed on behalf of the Law Society by an executive com- mittee drawn from the legal profession and representing both the Law Society and the Bar Association.

The scheme which provides free legal assistance in the Magistrates' Courts began operat- ing in three magistracies at North Kowloon, San Po Kong and Causeway Bay in January, 1979. Legal representation is available for people charged with the offences of membership of a triad society, loitering, unlawful possession, going equipped for stealing, resisting arrest and possession of dangerous drugs.

In the first four months of the scheme, 1,450 defendants used the free legal representation service. Of the 473 'not guilty' pleas heard in the period, 231 or 48 per cent were acquitted. The scheme is in an experimental stage and it will be reviewed in 1980.

The free Legal Advice Scheme commenced at two City District Offices - 751 Nathan Road, Mong Kok, and 884 King's Road, North Point - in November, 1978. A panel of volunteer lawyers was drawn up and a total of eight lawyers now attend the two centres for one evening each week to offer free legal advice. The centres are catering to more than 100 clients a month and it is clear that there is an established and growing demand for this service. A third legal advice centre in the Wong Tai Sin City District Office began operating in November, 1979.

APPENDICES

Appendices

1

Units of Measurement

2

Overseas Representation

34

3

Hong Kong's External Trade by Major Trading Partners

4

Hong Kong's External Trade by SITC (Revised 2) Commodity

Section/Division

56

Exchange Value of the Hong Kong Dollar

236

237

238

239

242

Expenditure on the Gross Domestic Product at Current Market Prices

Expenditure on the Gross Domestic Product at Constant (1973) Market

Prices

243

243

7

Government Revenue and Receipts by Source

244

7a

Government Revenue and Receipts by Source (Chart)

245

8

Government Expenditure by Function

246

8a Government Expenditure by Function (Chart)

247

9

Comparative Statement of Recurrent and Capital Income and

Expenditure

248

10

Revenue from Duties

250

Licence Fees under the Dutiable Commodities Ordinance

250

Miscellaneous Fees (Trade Industry and Customs)

250

H23

11 Money Supply

250

12

Liabilities and Assets: Banks and Deposit-taking Companies

251

13 Number of Establishments and Employment in Manufacturing Industry

Analysed by Main Industrial Groups

252

14

Number of Establishments and Employment in Selected Manufacturing

Industries

253

15

Reported Occupational Accidents

255

16

Consumer Price Index (A)

256

Consumer Price Index (B)

256

Hang Seng Consumer Price Index

256

17

Estimated Local Production of Crops, Livestock, Poultry and Fish

257

18

Local Production and Imports of Ores and Minerals

257

19

Imports of Crops, Livestock, Poultry and Fish

258

20

Categories of Registered Schools

259

222223

21

School Enrolment

Overseas Examinations

Hong Kong Students in Britain

Students leaving Hong Kong for Overseas Studies

259

259

260

260

235

27

28

2 2 2 2 2 2

23

Expenditure on Education

260

24

Vital Statistics

261

25

Causes of Death

261

26

Hospital Beds

262

Professional Medical Personnel

262

Number of Quarters and Estimated Persons Accommodated as at

263

March 31, 1979

29

Land Office

264

Considerations in Instruments Registered in Land Office

264

30

Traffic Accidents

265

Traffic Casualties

265

31

Crime

265

32

Cases in the Supreme Court, District Court, Tenancy Tribunal, Labour

Tribunal and Lands Tribunal

268

Work in the Magistracies

268

33

Prisons

269

34

Electricity Consumption, 1979

269

Electricity Distribution

269

Gas Consumption and Distribution

269

Water Consumption

269

35

International Movements of Aircraft and Vessels

270

International Movements of Passengers

270

International Movements of Commercial Cargo by Different Means of

Transport

270

336

Registered Motor Vehicles

271

Public Transport: Passengers Carried by Undertaking

271

Public Transport: Passengers Carried by Area

271

Public Transport: Daily Average Number of Passengers Carried by

Different Modes of Transport

271

37

Communications

272

38

Recreational Facilities Provided by the Urban Council and the New

Territories Services Department

272

39

Climatological Summary, 1979

273

Climatological Normals

273

40

The Executive Council

274

41

The Legislative Council

275

42

Urban Council

277

43

The Hong Kong Council of Social Service

278

The Community Chest of Hong Kong

279

236

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 measure- ment 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 millen- nia 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 14ğ 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

Length

10 fan

10 tsün

= 1 tsün (Chinese inch) = 1 chek (Chinese foot)

37.147 5 mm

0.371 475 m

Mass

10 fan (candareen)

==

1 tsin (mace)

10 tsin

= 1 leung (tael)

3.779 94 g 37.799 4 g

16 leung

100 kan

= 1 kan (catty)

1 tam (picul)

0.604 790 kg

60.479 0 kg

       The metric equivalents for length are exact. Six significant figures are used for the metric equivalents for mass.

Appendix 2

Overseas Representation

I. Commonwealth Countries

Countries

Australia

Bangladesh

Canada

India

Malaysia

Mauritius

237

Represented by

Countries

Represented by

Commissioner

Nauru

Trade

New Zealand

Honorary Consul Commissioner

Commissioner

Nigeria

Commissioner

Seychelles

Commissioner

Singapore

Commissioner

Sri Lanka

Commissioner

Honorary Consul Commissioner

Honorary Consul

Honorary Consul

(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

Luxembourg

Honorary Consul

Colombia

Consul-General

Mexico

Consul-General

Costa Rica

Consul-General

Monaco

Honorary Consul

Cuba

Consul-General

Netherlands

Consul-General

Denmark

Honorary

Norway

Consul-General

Consul-General

Pakistan

Consul-General

Dominican Republic

Ecuador

Egypt

El Salvador

Finland

Honorary

France

Consul-General

Honorary Consul

Consul-General

Honorary Consul

Consul-General

Consul-General

Panama

Consul-General

Paraguay

Honorary Consul

Peru

Consul-General

Philippines

Consul-General

Portugal

Consul-General

Republic of South

Consul-General

Africa

Gabon

Honorary Consul

Spain

Consul-General

Germany

Consul-General

Sweden

Consul-General

Greece

Honorary

Switzerland

Consul-General

Consul-General

Thailand

Consul-General

Guatemala

Honorary Consul

Turkey

Consul-General

Iceland

Honorary Consul

United States of

Consul-General

Indonesia

Consul-General

America

Iran

Consul-General

Uruguay

Consul-General

Irish Republic

Honorary Consul

Venezuela

Consul-General

Israel

Honorary

Consul-General

238

Appendix 3

(Chapter 3: Industry and Trade)

Hong Kong's External Trade by Major Trading Partners

Imports

1977

1978

1979

Source

1978-9

Change in

$ Million

Per cent

$ Million

Per cent

$ Million

Per cent

per cent

Japan

China

11,547

23.7

14,405

22.8

19,320

22.5

+34.1

8,082

16.6

10,550

16.7

15,130

17.6

+ 43.4

United States

6,093

12.5

7,519

11.9

10,365

12.1

+ 37.9

Taiwan

3,254

6.7

4,257

6.8

6,035

7.0

+ 41.8

Singapore

2,888

5.9

3,219

5.1

4,821

5.6

+ 49.7

Britain

2,192

4.5

2,975

4.7

4,350

5.1

+ 46.2

Germany, Federal Republic

1,463

3.0

2,072

3.3

2,775

3.2

+ 33.9

Switzerland and Liechtenstein

1,292

2.7

2,115

3.4

2,592

3.0

+ 22.6

Republic of Korea (South Korea)

1,682

3.5

1,793

2.8

2,529

2.9

+41.1

Australia

956

2.0

1,274

2.0

1,579

1.8

+ 24.0

Others

9,252

19.0

12,876

20.4

16,340

19.0

+ 26.9

Merchandise total

48,701

100.0

63,056

100.0

85,837

100.0

+ 36.1

Domestic Exports

Destination

United States

13,552

38.7

15,125

37.2

18,797

33.6

+ 24.3

Germany, Federal Republic

3,669

10.5

4,426

10.9

6,344

11.3

+ 43.3

Britain

3,035

8.7

3,871

9.5

5,974

10.7

+ 54.3

Japan

1,386

4.0

1,856

4.6

2,656

4.8

+ 43.1

Australia

1,247

3.6

1,494

3.7

1,789

3.2

+ 19.7

Canada

1,171

3.3

1,271

3.1

1,637

2.9

+ 28.8

Singapore

904

2.6

1,104

2.7

1,413

2.5

+ 28.0

Netherlands

763

2.2

937

2.3

1,406

2.5

+ 50.1

France

472

1.3

575

1.4

1,004

1.8

+ 74.7

           Switzerland and Liechtenstein Others

572

1.6

683

1.7

949

1.7

+ 39.0

8,233

23.5

9,370

23.0

13,942

24.9

+ 48.8

Merchandise total

35,004

100.0

40,711

100.0

55,912

100.0

+ 37.3

Re-exports

Destination

Japan

United States

1,339

13.6

2,282

17.3

2,477

12.4

+ 8.6

883

9.0

1,232

9.3

1,995

10.0

+ 61.9

Singapore

1,063

10.8

1,390

10.5

1,804

9.0·

+ 29.8

Taiwan

872

8.9

1,221

9.3

1,730

8.6

+ 41.7

Indonesia

1,059

10.8

1,302

9.9

1,684

8.4

+ 29.3

China

175

1.8

214

1.6

1,315

6.6

+613.5

Republic of Korea (South Korea)

456

4.6

600

4.5

818

4.1

+ 36.4

Philippines

331

3.4

507

3.8

777

3.9

+ 53.4

Macau

318

3.2

358

2.7

605

3.0

+ 68.9

Thailand

360

3.7

368

2.8

542

2,7

+ 47.2

Others

2,975

30.3

3,724

28.2

6,276

31.3

+ 68.5

Merchandise total

9,829

100.0

13,197

100.0

20,022

100.0

+ 51.7

Appendix 4

239

(Chapter 3: Industry and Trade)

Hong Kong's External Trade by SITC (Rev. 2) Commodity Section/Division

Imports

$ Million

Section/division

1977

1978

1979

Food and live animals chiefly for food

Live animals chiefly for food

1,237

1,283

1,332

Meat and meat preparations

896

1,018

1,186

Fish, crustacea and molluscs and preparations thereof

987

1,178

1,533

Cereals and cereal preparations

967

1,104

1,304

Vegetables and fruit

1,626

2,004

2,397

Others

1,522

1,621

1,894

Sub-total

7,234

8,207

9,646

Beverages and tobacco

Beverages

410

542

767

Others

326

447

586

Sub-total

736

989

1,353

Crude materials, inedible, except fuels

Cork and wood

210

274

493

Textile fibres (other than wool tops) and their wastes

(not manufactured into yarn or fabrics)

1,675

1,815

1,929

Crude animal and vegetable materials, n es

1,063

1,253

1,378

Others

308

415

513

Sub-total

3,256

3,756

4,312

Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials

2,907

3,029

4,759

Others

89

94

147

Sub-total

2,995

3,122

4,906

Animal and vegetable oils, fats and waxes

Fixed vegetable oils and fats

Others

Sub-total

247

275

345

4

4

11

251

279

355

Chemicals and related products, ne s

Dyeing, tanning and colouring materials

598

727

903

Medicinal and pharmaceutical products

623

726

967

Artificial resins and plastic materials, and cellulose esters and ethers Others

1,042

1,325

2,294

1,378

1,829

2,656

Sub-total

3,641

4,606

6,819

Manufactured goods classified chiefly by material

Paper, paperboard, and articles of paper pulp, of paper or of paperboard Textile yarn, fabrics, made-up articles, n e s and related products

995

1,349

1,767

6,608

8,681

11,863

Non-metallic mineral manufactures, nes

3,283

5,425

5,739

Iron and steel

1,369

2,018

2,884

Others

2,357

3,025

4,678

Sub-total

14,612

20,498

26,931

Machinery and transport equipment

Telecommunications and sound recording and reproducing

apparatus and equipment

1,513

2,057

3,257

Electrical machinery, apparatus and appliances, n e s, and electrical parts thereof Road vehicles (including air-cushion vehicles)

2,990

3,896

5,821

971

1,425

1,982

Others

4,067

5,089

7,549

Sub-total

9,541

12,467

18,609

Miscellaneous manufactured articles

Articles of apparel and clothing accessories

954

1,299

1,980

         Professional, scientific and controlling instruments and apparatus, n e s Photographic apparatus, equipment and supplies and optical goods,

nes; watches and clocks

212

242

386

3,027

4,300

5,765

Miscellaneous manufactured articles, n e s

1,545

2,154

3,048

Others

619

889

1,345

Sub-total

6,356

8,884

12,525

Commodities and transactions not classified according to kind

78

247

379

Total merchandise

48,701

63,056

85,837

Gold and specie

626

1,679

4,720

Grand total

49,327

64,734

90,557

Note: ne s=not elsewhere specified.

240

Appendix 4

·Contd (Chapter 3: Industry and Trade)

Domestic exports

Section/division

Food and live animals chiefly for food

        Fish, crustacea and molluscs and preparations thereof Vegetables and fruit

Miscellaneous edible products and preparations

Others

Sub-total

Beverages and tobacco

Tobacco and tobacco manufactures

Others

Sub-total

Crude materials, inedible, except fuels

Pulp and waste paper

Metalliferous ores and metal scrap

Crude animal and vegetable materials, nes Others

Sub-total

Mineral fuels, lubricants and related materials Animal and vegetable oils, fats and waxes

$ Million

1977

1978

1979

ཚོཤ༄།

384

400

461

112

133

101

125

152

74

98

623

/ /

711

844

54

50

65

8

59

55

73

78

153

203

105

37

8887

86

131

371

83

85

41

62

373

412

650

50

3

3

Chemicals and related products, n e s

Dyeing, tanning and colouring materials

49

67

Essential oils and perfume materials; toilet, polishing and cleansing

preparations

119

120

Artificial resins and plastic materials, and cellulose esters and ethers

51

70

Others

84

88

Sub-total

303

345

Manufactured goods classified chiefly by material

Paper, paperboard, and articles of paper pulp, of paper or of

paperboard

79

102

Textile yarn, fabrics, made-up articles, n e s and related products Non-metallic mineral manufactures, n e s

2,696

2,869

237

313

Manufactures of metal, nes

995

1,124

Others

194

226

Sub-total

4,201

4,635

z ཨཱནྡཀྐ།ཙ」 རོབྷཱུམོཧྲིཨཽÊ」

Machinery and transport equipment

Electrical machinery, apparatus and appliances, n e s, and electrical

parts thereof

Telecommunications and sound recording and reproducing apparatus

and equipment

2,769

2,819

4,063

1,744

2,109

3,235

Others

1,189

1,475

2,015

Sub-total

5,702

6,403

9,314

Miscellaneous manufactured articles

Sanitary, plumbing, heating and lighting fixtures and fittings, n e s Travel goods, handbags and similar containers

383

475

611

711

913

1,223

Articles of apparel and clothing accessories

13,908

15,709

20,131

Footwear

365

427

518

Professional, scientific and controlling instruments and apparatus, n e s Photographic apparatus, equipment and supplies and optical goods,

nes; watches and clocks

175

120

101

2,131

3,263

5,126

Miscellaneous manufactured articles, n es

5,734

6,634

9,454

Others

261

275

361

Sub-total

23,668

27,815

37,525

Commodities and transactions not classified according to kind

73

Total merchandise

35,004

331

40,711

510

55,912

Gold and specie

E

Grand total

35,004

40,711

55,912

Note:* Less than $0.5 million.

n e s=not elsewhere specified.

Appendix 4

- Contd (Chapter 3: Industry and Trade)

Re-exports

Section/division

241

1977

1978

$ Million

1979

Food and live animals chiefly for food

Fish, crustacea and molluscs and preparations thereof Vegetables and fruit

227

318

490

243

295

407

Coffee, tea, cocoa, spices and manufactures thereof Miscellaneous edible products and preparations

240

121

148

24

34

44

Others

Sub-total

Beverages and tobacco

Tobacco and tobacco manufactures

Others

Sub-total

Crude materials, inedible, except fuels

Cork and wood

Textile fibres (other than wool tops) and their wastes

(not manufactured into yarn or fabrics)

Crude animal and vegetable materials, nes

Others

Sub-total

Mineral fuels, lubricants and related materials

88

106

131

| |

823

873

1,220

71

22

29

93

100

228

72

129

55

184

Petroleum, petroleum products and related materials Others

Sub-total

Animal and vegetable oils, fats and waxes

ཞཱ⌘8」」 27༄」 ོ

96

96

194

261

288

720

926

79

173

1,156

1,580

193

234

4

6

197

239

17

36

33

Chemicals and related products, n e s

Dyeing, tanning and colouring materials

323

380

422

Medicinal and pharmaceutical products

366

419

535

Artificial resins and plastic materials, and cellulose esters and ethers Others

94

153

322

483

623

923

Sub-total

1,265

1,576

2,201

Manufactured goods classified chiefly by material

Textile yarn, fabrics, made-up articles, n e s and related products Non-metallic mineral manufactures, n es

1,200

1,815

2,772

1,247

1,870

2,379

Non-ferrous metals

93

148

317

Manufactures of metal, n es

167

215

370

Others

192

280

601

Sub-total

2,899

4,327

6,440

Machinery and transport equipment

Electrical machinery, apparatus and appliances, n e s, and electrical

parts thereof

510

664

1,195

Road vehicles (including air-cushion vehicles)

179

276

469

Others

985

1,347

2,252

Sub-total

1,673

2,287

3,916

}

Miscellaneous manufactured articles

Articles of apparel and clothing accessories

309

464

935

Professional, scientific and controlling instruments and apparatus, n es Photographic apparatus, equipment and supplies and optical goods,

nes; watches and clocks

43

56

97

1,059

1,268

1,802

Miscellaneous manufactured articles, n es

417

560

876

Others

168

242

380

Sub-total

1,995

2,589

4,091

Commodities and transactions not classified according to kind

29

56

117

Total merchandise

9,829

13,197

Gold and specie

12

82

Grand total

Note: n e s=not elsewhere specified.

9,841

13,279

20,022

445

20,467

242

Appendix 5

(Chapter 4: Finance and Economy)

Exchange Value of the Hong Kong Dollar

Par value of

December 18, 1946

IMF parity established

the HK$ in

grams of

fine gold, as

HK$1

£1=

US$1

SDRI=

reported to

the IMF

£

US$

SDR

HK$

HK$

HK$

0.223834

0.0625

0.2519

16.00

3.97022

September 18, 1949

Hong Kong dollar devalued by 30.5% pari passu with the pound sterling

0.155517

0.0625

0.175

16.00

5.71429

November 20, 1967

Hong Kong dollar devalued by 14.3% pari passu with the pound sterling

0.133300

0.0625

0.15

16.00

6.66667

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

0.146631

0.06875 0.165

14.5455

6.06061

0.146631

0.06875

0.17914 0.165

14.5455 5.58213

6.06061

July 6, 1972

        Following the floating of the pound sterling in June 1972, the Hong Kong dollar was pegged to the US dollar

0.146631*

0.17699 0.163018

5.65

6.13429

February 14, 1973

        Following the US dollar devaluation, the US$/HK$ central rate was adjusted

0.146631*

0.196657 0.163018

5.085

6.13429

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

0.146631*

Note: 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 4: Finance and Economy)

Expenditure on the Gross Domestic Product

at Current Market Prices

243

$ Million

GDP components

1976

1977

1978*

Private consumption expenditure

31,857

39,126

48,767

Government consumption expenditure

3,047

3,675

4,453

Gross domestic fixed capital formation

9,698

12,830

16,907

Increase in stocks

+2,979

+1,702

+1,105

Exports of goods

41,557

44,833

53,907

less Imports of goods

43,520

48,796

63,263

Exports less imports of services

6,355

6,059

7,298

Total expenditure on gross domestic product at

current market prices

51,973

59,429

69,174

Per capita GDP at current market prices ($)

11,695

13,166

15,017

Expenditure on the Gross Domestic Product

at Constant (1973) Market Prices

GDP components

Private consumption expenditure

26,119

30,626

36,255

Government consumption expenditure

2,392

2,690

3,034

Gross domestic fixed capital formation

7,681

9,533

11,219

Increase in stocks

+2,415

+1,331

+869

Exports of goods

32,215

33,853

38,517

less Imports of goods

33,743

36,424

44,244

Exports less imports of services

4,926

4,522

5,103

Total expenditure on gross domestic product at

constant (1973) market prices

42,005

46,131

50,753

Per capita GDP at constant (1973) market prices ($)

9,452

10,220

11,018

Note: A major revision in the series of estimates of GDP has been adopted. The new series replaces the previously published

series.

* Provisional estimates.

244

Appendix 7

(Chapter 4: Finance and Economy)

Government Revenue and Receipts by Source (note 1)

(See also Appendix 7a)

Item

$ Million

Estimate 1979-80

rent Capital Total

Actual 1977-78

Actual 1978-79

Recur-

rent Capital Total

Recur-

rent Capital

Recur-

Total

Direct taxes

Earnings and profits tax

3,357.2

Estate duty

109.7

3,357.2 109.7

4,114.6

Sub-total

3,357.2

109.7 3,466.9

4,114.6

4,114.6 128.5 128.5

128.5 4,243.1

4,990.5

4,990.5

134.8 134.8

4,990.5 134.8 5,125.3

Indirect taxes

General rates

722.9

722.9

806.9

806.9

882.0

882.0

Excise duties

733.6

733.6

830.4

830.4

791.5

791.5

Royalties and concessions

134.4 112.4

246.8

161.9 249.9

411.8

159.9 292.5 452.4

Stamp duties

490.0

490.0

761.8

761.8

800.0

800.0

Other taxes (note 2)

530.2

530.2

821.8

821.8

1,031.0

www

1,031.0

Sub-total

2,611.1

112.4 2,723.5

3,382.8

249.9 3,632.7

3,664.4

292.5 3,956.9

Other revenue

Fines, forfeitures and penalties

Licences

Provision of goods and services

86.3

86.3

109.1

269.9

269.9

323.3

Income from properties and investments

Sub-total

1,154.7

1,154.7 442.1 1,831.3 2,273.4

1,953.0 1,831.3 3,784.3

1,308.8

694.9 2,018.6 2,713.5

109.1

323.3

98.1 379.3

1,308.8

1,365.5

98.1

379.3

1,365.5

754.3 1,982.7 2,737.0

2,436.1 2,018.6 4,454.7

2,597.2 1,982.7 4,579.9

Reimbursements, contributions

and loan repayments

Reimbursements

Contributions

Loan repayments

Sub-total

Grants and loans

Grants

Loans

Sub-total

Total

186.9

186.9

165.7

165.7

173.6

173.6

42.5

42.5

47.1

47.1

50.7

50.7

1.6

1.6

13.7

13.7

1.5

1.5

229.4

1.6

231.0

212.8

13.7

226.5

224.3

1.5

225.8

26.9

26.9

26.9

26.9

8,150.7 2,081.9 10,232.6

10,146.3 2,410.7 12,557.0 11,476.4 2,411.5 13,887.9

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

14,000

13,000

12,000

11,000

Actual

10,000

9,000

8,000

$3,467

million

7,000

34%

6,000

Actual

Estimate

$4,243 million 34%

$5,125 million 37%

Direct taxes

Indirect taxes

5,000

$2,724

$3,633 million 29%

$3,957 million 28%

million

27%

4,000

3,000

2,000

1,000

$4,042

million

0

39%

$4,681 million 37%

1977-78

1978-79

$4,806 million 35%

1979-80

Other

revenue

245

246

Appendix 8

(Chapter 4: Finance and Economy)

Government Expenditure by Function (note 1)

(See also Appendix 8a)

Item

General services

$ Million

Actual 1977-78

Actual 1978-79

Estimate 1979-80

Recur-

Recur-

Recur-

rent Capital

Total

rent Capital

Total

rent Capital

Total

Administration

154.6

16.2

170.8

196.3

29.7

226.0

222.8

22.0

244.8

Law and order

825.2

80.8

906.0

982.0

70.6 1,052.6

1,049.9

56.7 1,106.6

Defence

285.5

102.9 388.4

382.5

214.2

596.7

383.9

69.0 452.9

Public relations

40.0

1.5

41.5

48.7

7.5

56.2

68.0

1.4

69.4

Revenue collection and financial control

124.2

3.9

128.1

231,1

1.8 232.9

163.7

9.5

173.2

Sub-total

1,429.5

205.3 1,634.8

1,840.6

323.8 2,164.4

1,888.3

158.6 2,046.9

Economic services

Primary products

42.4

8.8

51.2

50.6

12.2

62.8

59.5

19.4

78.9

Airport and harbour

74.3

46.3

120.6

72.1

77.5

149.6

95.5

102.1

197.6

Commerce and industry

30.9

0.7

31.6

43.0

0.8

43.8

47.1

3.0

50.1

Communications

220.4

38.0

258.4

248.9

92.7

341.6

242.4

179.3

421.7

Other

149.1

13.5

162.6

71.8

6.6

78.4

203.4

7.0

210.4

Sub-total

517.1

107.3 624.4

486.4

189.8

676.2

647.9

310.8

958.7

Community services

Transport, roads and civil engineering

(note 2)

245.3 1,189.4 1,434.7

294.0 1,476.0 1,770.0

355.0 1,622.5

1,977.5

Water

336.0

Fire Services

Amenities and related services

Sub-total

Social services

102.7

72.8

136.9 472.9 25.6 128.3 60.6 133.4

756.8 1,412.5 2,169.3

267.0 137.5 404.5 121.3 28.4 149.7 89.0 85.0 174.0

771.3 1,726.9 2,498.2

269.6 179.9 449.5

136.6

28.2 164.8

107.1

107.6

214.7

868.3 1,938.2 2,806.5

Education

1,534.0

90.9 1,624.9

1,785.8

Medical and health

723.7

32.0

755.7

850.0

144.0 1,929.8 104.9 954.9

1,949.7

246.2 2,195.9

Housing

74.3

857.9

932.2

95.9

1,208.2 1,304.1

932.5 68.6

· 217.3 1,149.8

1,095.5

1,164.1

Social welfare

387.6

5.1

392.7

526.7

Labour

24.2

0.1

24.3

29.8

6.6 533.3 0.8

644.7

10.0

30.6

37.7

25.8

654.7 63.5

Sub-total

2,743.8

986.0 3,729.8

3,288.2 1,464.5 4,752.7

3,633.2 1,594.8 5,228.0

Common supporting services

Government launches and dockyard

22.4

2.0

24.4

36.6

1.1

37.7

37.7

3.0

40.7

Government printing

19.3

1.4

20.7

24.6

1.1

25.7

24.1

2.1

26.2

Government supplies

33.4

0.4

33.8

39.5

0.8

40.3

34.3

1.0

35.3

Building development and electrical

and mechanical engineering offices

239.0

26.1

265.1

295.7

39.5

335.2

341.9

42.5

384.4

Sub-total

314.1

29.9 344.0

396.4

42.5

438.9

438.0

48.6

486.6

Unallocable expenditure

Government quarters

47.7

20.8

68.5

57.5

29.0

86.5

68.1

38.7

106.8

Passages, telephones, telegrams, etc

155.6

10.9

166.5

185.6

2.5

188.1

464.4

1.1

465.5

Sub-total

203.3

31.7

235.0

243.1

31.5

274.6

532.5

39.8

572.3

Other financial obligations

Public debt

Pensions and gratuities

Sub-total

Total

20.7

233.9

254.6

25.7 233.9

5.0 259.6

6,219.2 2,777.7 8,996.9

5.0

20.1 262.0

282.1 3.0 285.1

7,308.1 3,782.0 11,090.1

3.0

23.1

20.5

3.0

23.5

262.0

331.6

331.6

352.1

3.0 355.1

8,360.3 4,093.8 12,454.1

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

14,000

13,000

12,000

11,000

10,000

Actual

9,000

Actual

Estimate

8,000

$5,228 million 42%

Social services

7,000

$4,753 million 43%

6,000

$3,730

million

42%

5,000

247

$2,498

$2,807 million

Community

million

23%

services

23%

4,000

$2,169

million

24%

3,000

$2,047

$2,164

million

General

$1,635

million

16%

services

million

19%

2,000

18%

$959

million

$624

$676

8%

Economic services

million

million

1,000

7%

6%

$839

$999

$1,414

Other expenditure

million

million

0

9%

9%

million 11%

1977-78

1978-79

1979-80

248

Appendix 9

(Chapter 4: Finance and Economy)

Comparative Statement of Recurrent and Capital Income and Expenditure

249

$ Million

Income

Actual 1977-78

Actual Estimate 1978-79 1979-80

Expenditure

Actual

Actual

Estimate

1977-78

1978-79

1979-80.

Duties

Direct taxes

Indirect taxes

General rates

Recurrent Account

Earnings and profits tax

Recurrent Account

Personal emoluments

3,357.2

4,114.6

4,990.5

2,475.0

2,892.1

3,150.8

Departmental recurrent expenditure

844.6

1,075.9

1,223.8

733.6

830.4

791.5

Public Works Recurrent

457.6

427.7

502.7

722.9

806.9

882.0

Subventions

1,327.0

1,581.6

1,777.9

Internal revenue (note 1)

872.2

1,324.5

1,489.0

Motor vehicles taxes

148.0

259.1

342,0

University and Polytechnic Grants Committee

306.8

348.1

374.9

Franchises

63.4

74.1

78.6

Defence

270.3

363.1

361.6

Airport concessions

71.0

88.0

81.4

Pensions

233.9

262.0

331.6

Other revenue

Miscellaneous

304.0

Fines, forfeitures and penalties

86.3

109.1

98.1

357.6

637.0

Licences (note 2)

267.4

320.6

376.4

Transfer to Capital Account

695.8

1,371.3

1,682.2

Fees and receipts

509.6

591.2

606.5

Surplus

1,235.7

1,466.9

1,433.8

Revenue from properties and investments

375.2

614.6

683.3

Reimbursements

231.8

216.3

228.1

Water

206.7

225.6

244.0

Postal services

266.6

298.5

295.9

Airport and air services

200.3

226.5

235.7

Kowloon-Canton Railway

38.5

46.3

53.3

8,150.7

10,146.3

11,476.3

8,150.7

10,146.3

11,476.3

Capital Account

Direct taxes

Estate duty

Indirect taxes

Taxi concessions

Other revenue

Capital Account

109.7

128.5

134.8

Public Works Programme (other than New Towns and Housing)

Buildings

169.9

271.6

408.2

Engineering

406.3

650.0

673.8

112.4

249.9

292.6

Waterworks

107.3

98.8

118.0

Public Works Non-recurrent: Headquarters

69.2

209.6

99.6

Land sales

1,831.3

2,007.8

1,971.9

Public Works Programme (New Towns and Housing)

684.2

1,043.9

1,299.5

Loan repayments

1.6

13.7

1.5

Loans and grants

26.9

Sale of Associated Properties Limited Shares

10.8

10.8

Transfer to Development Loan Fund for Housing Authority Transfer to Home Ownership Fund

100.0

620.0

1,000.0

587.1

399.4

Deficit on Capital Account met by transfer from Revenue Account

695.8

1,371.3

1,682.2

Other capital expenditure

Subventions

52.5

48.7

107.0

University and Polytechnic Grants Committee

24.5

65.2

85.0

Departmental special expenditure

76.2

105.3

183.9

Defence Costs Agreement: Capital works

23.4

37.6

29.8

Miscellaneous (including public debt)

477.1

231.9

89.0

2,777.7

3,782.0

4,093,8

2,777.7

3,782.0

4,093.8

Note: 1. Comprising taxes on bets and sweeps, entertainment, hotel accommodation and stamp duties.

2. Including business registration fees.

250

Appendix 10

(Chapter 4: Finance and Economy)

Revenue from Duties*

Item

Import duty on

Hydrocarbon oils

Intoxicating liquor

Liquor other than intoxicating liquor

Tobacco

Duty on

Locally manufactured liquor

Methyl alcohol

Total

Actual

Actual

1977-78

1978-79

$ Thousand

Estimate 1979-80

216,673

240,184

232,000

213,899

259,013

236,000

4,144

4,569

4,160

255,671

281,623

272,000

42,966

44,719

275

311

47,000 300

733,628

830,418

791,460

Note: * These figures represent net revenue collected, ie after deducting refunds and drawbacks of duty.

Licence Fees under the Dutiable Commodities Ordinance

Hydrocarbon oils

218

228

Liquor

Tobacco

Miscellaneous

Total

4,766

4,960

806

803

14

16

5,804

6,007

Miscellaneous Fees (Trade Industry and Customs)

Denaturing

Bonded warehouse supervision

Total

356

402

2,095

2,945

2,451

3,347

Appendix 11

(Chapter 4: Finance and Economy)

Money Supply

4,839

5,890

Hཏྟཱཙྪབྷཱནཱ

440

3,190

3,630

$ Million

1977

As at end of year

1978

1979

Legal tender coins and notes in circulation

Commercial bank issues (A)

The Hongkong and Shanghai Banking Corporation

4,729.00

5,854.00

The Chartered Bank

1,000.48

1,132.25

6,184.00 1,736.27

Mercantile Bank

29.14

Government issues (B)

One thousand-dollar gold coins

58.23

81.82

115.69

Five-dollar coins

115.50

149.99

166.97

Two-dollar coins

64.50

96.78

106.98

One-dollar coins

192.82

252.72

217.49

Subsidiary coins

164.77

207.26

256.42

One-cent notes

0.77

0.81

0.83

Demand deposits with licensed banks (C)

12,650.00

15,733.00

20,472.00

Time deposits with licensed banks (D)

19,616.00

26,275.00

34,284.00

Savings deposits with licensed banks (E)

20,753.00

24,850.00

33,258.00

Licensed banks' holdings of legal tender (F)

924.00

1,227.00

1,495.00

Money supply

Definition 1 (A+B+C÷F)

18,081.21

22,281.63

27,761.65

Definition 2 (A+B+C+D+E-F)

58,450.21

73,406.63

95,303.65

Appendix 12

(Chapter 4: Finance and Economy)

251

Liabilities and Assets: Banks and Deposit-taking Companies

$ Million

As at end of year

Banks

1977

1978

1979

Number of licensed banks

74

88

105

Liabilities

Deposits:

Demand

12,650

15,733

20,472

Time

19,616

26,275

34,284

Savings

20,753

24,850

33,258

Amount due to banks abroad

36,850

51,385

73,685

Other liabilities

10,497

13,624

24,159

Total liabilities

100,366

131,867

185,858

Assets

Cash (legal tender notes and coins)

924

1,227

1,495

Amount due from banks abroad:

Demand and short term claims

28,952

37,425

46,568

Time deposits

Loans and advances:

Hong Kong

Abroad

Investments:

Hong Kong Abroad Other assets:

     Hong Kong Abroad

Total assets

Deposit-taking Companies

Number of registered deposit-taking companies

Liabilities

Deposits

Amount due to banks in Hong Kong

5,200

13,381

19,867

36,856

52,814

73,690

18,793

16,411

20,778

3,836

4,294

5,462

101

137

180

4,218

5,980

9,581

1,486

198

8,237

100,366

131,867

185,858

241

269

10,447

24,495

6,386

11,463

Amount due to banks abroad

27,398

31,160

Other liabilities

8,121

10,347

Total liabilities

52,352

77,465

Assets

Cash

5

Amount due from banks in Hong Kong

6,760

20,029

Amount due from banks abroad:

Demand and short term claims

2,753

3,293

Time deposits

6,190

10,266

Loans and advances:

Hong Kong

Abroad

Investments:

Hong Kong

Abroad

Other assets:

Hong Kong Abroad

Total assets

10,139

13,566

21,165

24,778

1,062

1,157

842

997

1,644

1,459

1,792

1,916

52,352

77,465

252

Appendix 13

(Chapter 5: Employment)

    Number of Establishments and Employment in Manufacturing Industry Analysed by Main Industrial Groups

Establishments

Persons engaged

Industry

Food products

Beverages

Tobacco

Dec 1977 Dec 1978* Dec 1979

Dec 1977 Dec 1978* Dec 1979

1,117

1,175

1,153

15,274

16,454

16,567

28

31

26

3,260

3,543

3,444

3

3

4

774

768

812

Textiles

3,721

3,734

3,657

102,461 98,607 100,825

Wearing apparel, except footwear

8,714

9,456

9,647

251,273

271,318

277,270

Leather and leather products, except footwear and

wearing apparel

132

146

148

2,075

2,184

2,605

Footwear except rubber, plastic and wooden footwear

452

444

435

5,001

5,106

6,115

Wood and cork products, except furniture

1,288

1,324

1,273

7,868

8,128

8,310

Furniture and fixtures, except primarily of metal

1,299

1,432

1,418

8,732

9,388

9,415

Paper and paper products

1,086

1,133

1,180

9,619

10,049

11,177

Printing, publishing and allied industries

2,062

2,292

2,457

22,091

23,936

25,129

Chemicals and chemical products

447

523

577

5,822

6,354

6,874

Products of petroleum and coal

4

6

5

24

76

120

Rubber products

372

407

435

5,394

6,198

5,298

Plastic products

3,995

4,515

4,674

78,449

86,512

87,853

Non-metallic mineral products, except products

of petroleum and coal

332

359

366

4,056

4,579

4,803

Basic metal industries

326

344

333

4,100

4,439

4,196

Fabricated metal products, except machinery and

equipment

6,481

7,357

7,330

70,931

80,106 84,805

Machinery except electrical

1,386

1,478

1,471

11,967

12,910 13,582

Electrical machinery, apparatus, appliances and supplies

1,332

1,576

1,860

89,525

97,962 117,713

Transport equipment

270

318

307

12,205 13,482 14,127

Professional and scientific, measuring and controlling

equipment, and photographic and optical goods

470

662

920

20,635 26,786 39,345

Other manufacturing industries

2,251

2,525

2,606

23,572 27,798 30,513

Total

37,568

41,240

42,282

755,108 816,683 870,898

Note: Figures refer to all manufacturing establishments known to the Census and Statistics Department, including those registered

with or recorded by the Labour Department.

* Revised figures.

Appendix 14

(Chapter 5: Employment)

Number of Establishments and Employment in Selected Manufacturing Industries

Industry

Food

Bakery products

Canning and preserving of fruits and vegetables

Beverage

Soft drinks and carbonated waters

253

Establishments

Dec 1977 Dec 1978* Dec 1979

Persons engaged Dec 1977 Dec 1978* Dec 1979

559

574

550

5,950

6,308

5,837

103

109

118

2,378

2,643

2,684

11

14

11

2,253

2,494

2,477

Textiles

Bleaching and dyeing

315

319

296

11,305

12,392

12,826

Cotton knitting

299

309

332

6,052

5,186

5,402

Cotton spinning

33

33

36

18,892

16,838

17,072

Cotton weaving

382

413

407

25,167

26,059

27,892

Embroideries

189

215

250

1,976

2,008

2,456

Made-up textile goods, except weaving apparel

200

227

228

2,485

2,657

3,377

Other textile finishing

96

117

114

2,332

2,998

2,671

Textile stencilling and printing

192

204

199

3,357

2,987

2,752

Woollen knitting

1,046

916

754

15,796

12,681

10,959

Woollen spinning

17

16

18

1,538

1,356

1,452

Weaving apparel, except footwear

Garments, except knitwear from yarn

6,519

6,958

6,940

198,519

211,202

212,984

Gloves

374

407

435

11,395

11,574

12,022

Handbags

667

772

851

12,215

15,164

16,655

Knitwear from yarn

801

910

998

21,516 24,358

25,926

Raincoats

65

81

91

3,229

3,805

3,770

Footwear, except rubber, plastic and wooden footwear Footwear, except rubber, plastic and wooden footwear

452

444

435

5,001

5,106

6,115

Wood and corks products, except furniture

Rattan articles

Wooden articles

262

289

262

2,622

2,492

2,513

470

482

455

2,285

2,444

2,421

Furniture and fixtures, except primarily of metal Wooden furniture and fixtures

1,143

1,236

1,195

7,774

8,179

8,009

Paper and paper products

Paper boxes

762

773

823

7,205

7,253

7,915

         Printing, publishing and allied industries Job printing

1,542

1,711

1,862

14,554

15,695

16,923

Newspaper printing

38

40

42

3,602

3,934

4,145

Chemicals and chemical products

Drugs and medicines

211

228

245

1,928

1,975

2,237

Rubber products

Rubber footwear

171

198

219

3,858

4,568

3,840

254

Appendix 14

· Contd (Chapter 5: Employment)

Industry

Establishments

Dec 1977 Dec 1978* Dec 1979

Persons engaged

Dec 1977 Dec 1978* Dec 1979

Plastic products

Plastic flowers and foliage

422

430

392

6,865

6,163

5,233

Plastic toys

1,400

1,567

1,636

42,369

46,201

46,705

Miscellaneous plastic products, except plastic flowers

and foliage and plastic toys

2,173

2,518

2,646

29,215

34,148

35,915

        Non-metallic mineral products, except products of petroleum and coal

Glass and glass products

156

172

165

1,979

2,195

2,211

Basic metal industries

Iron and steel basic industries

154

163

174

2,557

2,747

2,738

Fabricated metal products, except machinery and

equipment

Aluminium ware

86

116

106

2,836

3,460

3,168

Buffing and polishing and electro-plating

610

690

671

5,120

5,961

6,724

Hand tools and general hardware

1,157

1,402

1,351

7,440

8,881

9,070

Metal toys

127

183

196

3,438

4,397

4,995

Structural metal products

680

776

690

3,087

3,673

3,590

Torches, torch cases and parts, except torch bulbs Wrist watch bands

46

47

49

3,808

5,058

5,610

305

367

382

6,650

7,246

8,576

Machinery, except electrical

Special industrial machinery and equipment,

except metal and wood working machinery

479

530

504

3,815

4,188

4,508

Electrical machinery, apparatus, appliances and supplies

Dry batteries

11

14

Electrical appliances and housewares

278

329

342

Electrical industrial machinery and apparatus

101

145

150

Electronics

711

842

1,075

Sound reproducing and recording equipment and

*

15

2,663

2,595

3,105

8,889

11,303

14,642

2,360

3,253

2,609

70,188

74,534

90,567

apparatus

52

69

82

1,666

3,028

3,125

Torch and electric bulbs

99

96

100

2,520

2,005

2,140

Transport equipment

Aircraft repairing

Ship building and repairing

        Professional and scientific, measuring and controlling equipment, and photographic and optical goods

Photographic and optical goods

Watches and clocks

2688

368

B88888

2

101

23

2,846

3,096

3,576

93

7,244

7,890

8,360

116

136

5,190

5,422

7,276

530

770

15,326

21,182

31,931

Other manufacturing industries

Artificial pearls and imitation jewellery

282

292

261

2,387

2,494

2,791

Jewellery and related articles

668

703

612

7,849

7,942

7,998

Toys other than plastic toys, metal toys and wooden toys

93

135

183

1,688

2,802

3,982

Wigs

42

39

39

40

826

724

629

Note: Figures refer to all manufacturing establishments known to the Census and Statistics Department, including those registered

with or recorded by the Labour Department.

* Revised figures.

Appendix 15

(Chapter 5: Employment)

Reported Occupational Accidents

255

1977

1978

1979

Non-

Non-

Non-

Cause

Fatal

fatal

Total

Fatal

fatal

Total

Fatal

fatal

Total

Machinery: power driven

8 9,368

9,376

7

8,805

8,812

27

10,998

11,025

Machinery: other

1

638

639

1

461

462

1

663

664

Transport

53

1,157

1,210

48

1,492

1,540

57

2,123

2,180

Explosions or fires

Hot or corrosive substances

Gassing, poisoning and other

toxic substances

7

250

257

8

313

321

29

165

194

2

2,315 2,317

2

2,424

2,426

3,025

3,025

76

76

6

31

37

1

32

33

Electricity

6

122

128

21

137

158

13

204

217

Falls of persons

59

5,273

5,332

47

5,801

5,848

51

5,639

5,690

Stepping on or striking against

objects

11

13,164 13,175

14

16,150

16,164

8

17,032

17,040

Falling objects

28

2,817 2,845

11

2,959

2,970

12

3,653

3,665

Falls of grounds

3

14

17

24

25

6

25

31

Handling without machinery

1 6,743

6,744

5

6,103

6,108

3

7,386

7,389

Hand tools

4,275

4,275

2

4,745

4,747

5,305

5,305

Miscellaneous

86

3,377 3,463

79

1,659

1,738

66

2,331 2,397

Causes not yet ascertained

26 2,270

2,296

27

7,953 7,980

Total

265 49,589 49,854

278

53,374 53,652

301 66,534 66,835

Note: Figures for 1979 are subject to amendments.

256

Appendix 16

(Chapter 5: Employment)

Consumer Price Index (A)

(July 1973-June 1974-100)

Monthly average

Index for December

Item

All items

Weight

1977

1978

1979

1977

1978

1979

100.00

117.7

124.7

139.2

117

127

147

Foodstuffs

56.60

113.5

121.3

134.3

111

121

140

Housing

14.08

124.3

130.3

142.6

127

137

148

Fuel and light

3.39

134.9

134.7

172.7

135

135

208

Alcoholic drinks and tobacco

2.65

133.4

141.7

160.0

137

147

168

Clothing and footwear

3.82

100.8

103.3

110.0

103

107

117

Durable goods

1.41

109.2

114.4

126.0

110

119

131

Miscellaneous goods

4.58

124.7

133.2

146.2

125

137

163

Transport and vehicles

4.36

115.3

121.7

152.3

117

128

165

Services

9.11

129.9

137.1

148.0

133

140

157

Note: The weights are derived from households with monthly expenditure between $400 and $1,499 in 1973-4.

Consumer Price Index (B)

(July 1973-June 1974-100)

Monthly average

Item

All items

Weight

1977

1978

1979

1977

Index for December 1978

1979

100.00

117.9

124.9

139.3

118

128

147

Foodstuffs

47.82

114.3

121.9

136.0

112

123

142

Housing

16.79

123.1

129.4

142.0

126

136

148

Fuel and light

2.71

133.9

133.7

168.5

134

134

200

Alcoholic drinks and tobacco

2.04

130.1

137.5

154.9

133

142

163

Clothing and footwear

5.92

100.3

102.3

108.5

102

106

116

Durable goods

2.97

106.8

111.8

123.0

107

117

127

Miscellaneous goods

5.17

121.3

129.9

143.7

122

135

158

Transport and vehicles

5.11

119.9

125.3

158.0

121

130

171

Services

11.47

130.3

138.0

150.4

134

141

160

Note: The weights are derived from households with monthly expenditure between $1,500 and $2,999 in 1973-4.

Hang Seng Consumer Price Index

(July 1973-June 1974-100)

Monthly average

Index for December

Item

Weight

1977

1978

1979

1977

1978

1979

All items Foodstuffs

100.00

115.3

121.8

137.1

116

126

145

26.27

113.4

120.6

134.8

112

122

141

Housing

28.14

107.8

113.8

120.9

110

117

128

Fuel and light

2.53

130.3

130.3

165.8

131

130

190

Alcoholic drinks and tobacco

0.73

125.3

131.4

146.6

127

135

155

Clothing and footwear

6.11

101,5

104.8

111.8

106

110

120

Durable goods

3.88

102.9

106.6

113.2

104

108

116

Miscellaneous goods

4.36

117.3

123.7

136.5

118

128

149

Transport and vehicles

7.47

127.8

132.8

166.3

129

136

178

Services

20.51

127.0

137.3

159.3

130

147

169

Note: The weights are derived from households with monthly expenditure between $3,000 and $9,999 in 1973-4.

257

Appendix 17

(Chapter 6: Primary Production)

Estimated Local Production of Crops, Livestock, Poultry and Fish

Item

Crops

Rice (unhusked)

Unit

1977

1978

1979

tonne

1,400

400

100

Other field crops

tonne

3,500

2,700

Vegetables (fresh, frozen or simply preserved)

tonne

194,000

175,000

2,800 192,000

Fresh fruits and nuts

tonne

3,100

2,600

1,070

Flowers

Livestock and poultry

Cattle

$ thousand

34,698

39,414

42,440

head

1,900

2,300

2,100

Pigs*

thousand head

403

500

530

Chickens

Other poultry

Dairy products and eggs

Milk (fresh)

Eggs (fresh)

Fish and fish preparations

Marine water fisht

tonne

27,100

27,500

29,800

tonne

7,200

10,900

9,400

tonne

4,500

4,100

3,800

thousand

165,600

183,944

226,230

Fish (fresh, chilled or frozen)

tonne

118,200

122,410

139,090

Fresh water fish

tonne

4,180

5,790

6,540

Fish (dried, salted or smoked)

Marine water fish

tonne

4,160

4,050

4,870

Crustacea and molluscs (fresh, frozen, dried, salted, etc)

tonne

23,640

22,090

30,790

Fish products and preparations

tonne

1,550

1,310

1,030

Crustacean and mollusc products and preparations

tonne

440

440

320

Meals (animal feeding stuffs)

tonne

6,060

6,400

7,110

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 6: Primary Production)

Local Production and Imports of Ores and Minerals

Item

Quartz

Feldspar

Graphite

Clay and kaolin

Tonnes

Production

Imports

1977

1978

1979

1977

1978

1979

2,062

665

2

2,973

4,021

2,130

3,378

3,157

742

3,975

6,327

13,838

1,344

1,201

1,325

2,466

89,460*

2,841

22,612

26,188

50,613

Note: * Including 64,414 tonnes of crude clay.

258

Appendix 19

(Chapter 6: Primary Production)

Imports of Crops, Livestock, Poultry and Fish

Item

Crops

Unit

1977

1978

1979

Rice (unhusked)

tonne

340,924

343,638

361,078

Wheat

tonne

147,164

124,853

136,596

Other cereals and cereal preparations

tonne

374,517

382,631

419,501

Other field crops

tonne

47,655

49,111

45,475

Vegetables (fresh, frozen or simply preserved)

tonne

314,977

325,178

355,244

Vegetables (preserved or prepared)

tonne

73,904

81,148

99,086

Fresh fruits and nuts

tonne

353,205

357,536

364,683

Dried fruits and fruit preparations

tonne

40,905

52,796

63,793

Flowers

Sugar and honey

Coffee

$ thousand

6,602

7,100

9,740

tonne

113,488

118,752

125,582

tonne

11,212

2,466

4,135

Cocoa

Tea and mate

tonne

212

322

269

tonne

11,351

10,101

10,602

Livestock and poultry

Cattle

head

203,031

205,992

227,614

Sheep, lambs and goats

head

17,097

16,974

14,737

Pigs

thousand head

2,857

2,940

2,896

Chickens

tonne

14,354

12,766

11,645

Other poultry

tonne

11,251

12,434

13,726

Live animals

tonne

1,070

1,831

2,213

Meat and meat preparations

tonne

131,486

144,961

148,531

Dairy products and eggs

Milk (fresh)

tonne

5,354

7,004

7,642

Cream (fresh)-

tonne

817

832

1,130

Milk and cream (evaporated, condensed, powdered, etc)

tonne

34,121

36,743

37,179

Butter, cheese and curd

tonne

6,050

6,245

6,289

Eggs (fresh)

thousand

1,043,980

1,132,426

1,233,716

Eggs (preserved)

thousand

89,087

86,724

84,091

Fish and fish preparations

Fish (fresh, chilled or frozen)

Marine water fish

tonne

8,321

10,617

12,309

Fresh water fish

tonne

29,833

30,360

35,443

Fish (dried, salted or smoked)

Marine water fish

tonne

6,940

8,354

7,060

Fresh water fish

tonne

213

139

61

Crustacea and molluscs (fresh, frozen, dried, salted, etc)

tonne

26,600

28,877

32,370

Fish products and preparations

tonne

2,335

2,239

3,471

Crustacean and mollusc products and preparations

tonne

2,252

1,760

1,881

Oil and fats (crude or refined)

tonne

58

40

53

Meals (animal feeding stuffs)

tonne

7,827

7,051

8,311

Appendix 20

(Chapter 7: Education)

Categories of Registered Schools

Government

Grant

Subsidised

Private

Special education

Total

School Enrolment

259

1977

As at September 30 1978

1979

112

22

756

109

22

798

104

22

803

1,840

1,783

1,749

35 2,765

37

51

2,749

2,729

Kindergarten

Private

171,879

186,130

192,517

Primary

Government and aided

495,846

476,050

472,738

Private

95,421

87,334

82,807

Sub-total

591,267

563,384

555,545

Secondary

Government and aided

138,996

196,925

204,945

Assisted private

50,694

7,430

7,238

Other private

298,354

325,357

312,209

Sub-total

488,044

529,712

524,392

Post-secondary

Government*

Private

Sub-total

Adult education

Private

2,656

2,290

2,501

9,323

9,774

10,300

11,979

12,064

12,801

Government*

Sub-total

Special education

Government and aided

Private

Sub-total

Total

37,450

39,930

40,819

37,831

40,295

48,013

75,281

80,225

88,832

6,698

7,730

9,633

6,698

7,730

9,633

1,345,148

1,379,245

1,383,720

Note: The schools and enrolment refer to both the day and night sections.

* Excluding students enrolled in Hong Kong Polytechnic.

Appendix 21

(Chapter 7: Education)

Overseas Examinations

Examination

Conducted by Hong Kong Examinations Authority:

Association of Certified Accountants

Association of International Accountants

Institute of Chartered Secretaries and Administrators

Institute of Cost and Management Accountants

London Chamber of Commerce and Industry

Pitman Examinations Institute

Royal Society of Arts

Test of English as a Foreign Language (TOEFL)

University of Cambridge

Entries

1977

1978

1979

3,139

4,162

4,560

2,127

1,994

1,602

1,775

2,095

1,988

637

674

686

41,725

44,332

51,393

13,500

15,790

22,895

122

271

9,728

12,024

948 15,156

267

270

University of London

General Certificate of Education

18,519

24,725

127 30,186

University of London External Degree

www.

575

668

544

Associated Examining Board General Certificate of Education Royal Academy of Dancing

2,336

3,245

4,596

1,212

1,493

Royal School of Music

13,812

14,245

Others

1,048

697

Total

95,498

125,971

886 151,305

Conducted by Hong Kong Polytechnic:

City and Guilds of London Institute Technological Examinations Council of Engineering Institutions

1,950

1,950

2,514

718

840

968

Institute of Statisticians

308

195

129

Total

2,976

2,985

3,611

260

Appendix 22

(Chapter 7: Education)

Hong Kong Students in Britain

Course attending

As at December

1977

1978

1979

Professional courses

Engineering

1,151

1,135

Secretarial

391

441

1,177 495

English language

275

405

474

Science

335

377

416

Management and business studies

307

314

349

Nursing

387

203

223

Computer science

141

181

169

Accountancy

158

166

162

Law

129

135

143

Education

81

104

131

Medical science

95

103

120

Economics

Textiles

Social science

Pharmacy

Music

Architecture

Arts

90

88

92

87

72

83

60

69

81

91

83

71

21

35

39

36

46 43

59

71

38

Hotel and catering

21

23

30

Dentistry

23

20

29

Art and design

40

38

23

Others

138

151

1,914

Sub-total

4,119

4,250

6,309

          General Certificate of Education School children

3,585

4,225

4,020

1,920

2,550

2,903

Total

9,624

11,025

13,232

Students Leaving Hong Kong for Overseas Studies

Country

Britain

United States

Canada

Australia

Appendix 23 (Chapter 7: Education)

Expenditure on Education

1976-7

1,669

2,719

1,858

249

1977-8

1978-9

2,566

5,093

2,605

2,560

2,061

2,155

215

439

$ Thousand

School year Aug-July

1976-7

1977-8

Recurrent expenditure

229,540

270,291

Capital expenditure

13,710

21,882

Grants and subsidies

869,362

1,041,483

1978-9

290,685 23,333 1,213,801

Grants to Universities and Polytechnic (including rates)

306,854

341,591

444,591

University and Polytechnic Grants Committee (including university

student grants)

7,811

Total

1,427,277

8,829

1,684,076

9,415

1,981,825

Education expenditure by other departments

15,804

18,342

20,401

Appendix 24 (Chapter 8: Health)

Vital Statistics

Estimated mid-year population

Births:

Known live births

Crude birth rate (per 1,000 population)

Deaths:

Known deaths

Crude death rate (per 1,000 population)

Infant mortality rate (per 1,000 live births) Neo-natal mortality rate (per 1,000 live births) Maternal mortality rate (per 1,000 total births)

Appendix 25

(Chapter 8: Health)

Causes of Death

261

1977

1978

1979

4,513,900

4,606,300

4,900,000

80,022

80,785

81,801

17.7

17.5

16.9

23,331

23,885

24,939

5.2

5.2

5.2

13.9

11.8

13.3

8.9

8.3

8.4

0.16

0.06

0.08

1976

1977

1978

Infective and parasitic

757

749

634

Tuberculosis, all forms

568

532

420

Neoplasms

5,382

5,662

5,991

Malignant, including neoplasms of lymphatic and

haematopoietic tissues

5,368

5,652

5,978

Endocrine, nutritional, metabolic and blood

396

366

351

Diabetes mellitus

288

261

283

Nervous system, sense organs and mental disorders

207

202

181

Circulatory system

6,699

6,737

7,096

Heart diseases, including hypertensive diseases

3,967

4,135

3,893

Cerebrovascular diseases

2,520

2,422

3,081

Respiratory system

3,368

3,607

3,288

Pneumonia, all forms

2,119

2,312

2,087

Bronchitis, emphysema and asthma

961

913

780

Digestive system

1,158

1,133

994

Peptic ulcer

194

181

182

Cirrhosis of liver

383

352

295

Genito-urinary system

506

523

574

Complications of pregnancy, childbirth and the puerperium

14

13

5

10

Skin, subcutaneous tissues, musculoskeletal system and

connective tissues

86

74

66

Congenital anomalies

377

399

358

Certain causes of perinatal morbidity and mortality

493

470

440

Symptoms and ill-defined conditions

1,865

1,757

1,692

Accidents, poisonings and violence

1,887

1,767

1,173

All accidents

951

994

688

Suicide and self-inflicted injuries

Total deaths

654

629

330

23,195

23,459

22,843

262

Appendix 26 (Chapter 8: Health)

Hospital Beds

Category of hospitals

As at end of year

1977

1978

1979

Government hospitals

8,788

8,987

9,055

Government dispensaries

393

393

390

Government-assisted hospitals

8,199

8,347

8,630

Private hospitals

2,289

2,320

2,443

Private maternity homes

67

45

45

Private nursing/maternity homes

43

43

43

Total

19,779

20,135

20,606

Appendix 27 (Chapter 8: Health)

Professional Medical Personnel

As at end of year

In Government service

1977

1978 1979

1977

Medical doctors

850*

915* 972*

3,356

Total registered 1978

3,029† 3,291

1979

Provisionally registered medical doctors

(house officers)

122

138

131

202

214

201

Dentists

76

90

98

633

611† 667

Pharmacists

28

31

31

284

240+ 278

Midwives (without nursing qualifications)

348

338

329

982

982

981

Nurses (general, male and female,

excluding student nurses)

3,099

3,219

3,446

with midwifery qualifications

without midwifery qualifications

1,555 1,681 1,631 1,544 1,538 1,815

8,919 9,407 10,097 5,179 5,421 5,668 3,740 3,986 4,429

Nurses (psychiatric, male and female,

excluding student nurses)

258

286

294

302

327

361

Nurses (mentally sub-normal, excluding

student nurses)

2

Note: * Including unregistrable 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.

Appendix 28

(Chapter 9: Housing and Land)

Number of Quarters and Estimated Persons Accommodated

as at March 31, 1979

Number of Quarters

263

Rest of

Category

Urban

areas

Tsuen

New

Wan

Territories

Total

Government quarters

12,970

610

3,170

16,750

Public housing

Housing Authority estates

293,420

78,280

16,450

388,150

Housing Authority cottage areas

4,700

130

2,100

6,930

Housing Society estates

21,390

3,180

24,570

Sub-total

319,510

81,590

18,550

419,650

Private housing

394,350

22,350

82,500

499,200

Total permanent

726,830

104,550

104,220

935,600

Estimated Persons Accommodated

Hong

Kowloon

Kong

and New

Tsuen

Rest of

New

Category

Island

Kowloon

Wan

Territories

Total

Government quarters

23,500

28,400

2,400

12,700

67,000

Public housing

Housing Authority estates

203,400

1,114,500

364,400

66,500

1,748,800

Housing Authority cottage areas

9,100

15,200

400

6,600

31,300

Housing Society estates

59,100

55,300

14,700

129,100

Sub-total

271,600

1,185,000

379,500

73,100

1,909,200

Private housing

809,000 1,143,400

114,200

315,600

2,382,200

Total permanent

1,104,100 2,356,800

496,100

401,400

4,358,400

Temporary

360,600

Marine

Total population

60,000

4,779,000

264

Appendix 29

(Chapter 9: Housing and Land)

Land Office

Item

1977

1978

1979

Instruments registered

Assignments of whole buildings or sites

1,250

1,283

988

Assignments of flats or other units

36,591

47,780

46,092

Agreements for sale and purchase of flats or

other units

25,728

33,290

31,354

Building mortgages

114

127

121

Other mortgages

36,589

46,347

44,288

Reassignments and certificates of satisfaction

22,177

25,323

26,450

Exclusion orders

50

56

36

Re-development orders

9

15

53

Miscellaneous

11,130

16,494

20,672

Total

133,638

170,715

170,054

Conditions of sale, grant, exchange, etc registered

168

129

95

Consents granted to entering into agreements for

sale and purchase

152

159

151

Modifications and variations of lease conditions

69

97

69

Crown leases issued

67

58

12

Determinations of Crown rent and premium

117

164

109

Multi-storey building owners corporations registered

128

164

171

Public searches in Land Office records

223,185

316,122

485,374

Considerations in Instruments Registered in Land Office

Assignments of whole buildings or sites

Assignments of flats or other units

Building mortgages

Other mortgages

Reassignments

Miscellaneous instruments

Total

$ Thousand

2,575,526

3,416,508

7,131,861

10,736,213

6,673,090

12,344,400

728,486

586,747

801,628

7,673,551

11,575,872

16,876,348

4,005,218

5,185,044

6,430,440

17,239

35,253

402,932

22,131,881

31,535,637

43,528,838

Appendix 30

(Chapter 11: Public Order)

Traffic Accidents

Hong Kong Island

Kowloon

New Territories

Marine

Total

Traffic Casualties

265

1977

1978

1979*

4,180

4,405

4,165

6,890

8,052

7,718

2,771

2,785

3,289

21

13,862

26

15,268

24

15,196

Hong Kong Island

Fatal

Serious

77

98

1,508

Slight

Kowloon

Fatal

3,518

1,545 3,636

159

200

Serious

2,845

3,241

Slight

5,620

6,637

New Territories

Fatal

135

139

Serious

1,672

1,883

Slight

2,293

2,348

Marine

Fatal

Serious

1

6

Slight

Total

Note: * Provisional figures.

23

17,857

102

1,481 3,595

201

2,818 6,425

154 2,015 2,623

1

9

13

36

52

19,772

19,480

Appendix 31

(Chapter 11: Public Order)

Crime

Police Cases

Against lawful authority

Against public order

Number of crimes/offences reported

Number of persons* prosecuted

1977

1978

1979

1977

1978

1979

1,424

1,312

1,456

1,885

1,994

2,121

Perjury

220

200

314

143

131

198

Escape and rescue

97

74

60

38

32

33

Unlawful society

2,877

1,874

1,334

1,766

1,081

740

Other offences

354

289

280

156

146

147

Sub-total

4,972

3,749

3,444

3,988

3,384

3,239

Against the person

Murder and manslaughter

57

63

68

48

45

61

Attempted murder

4

1

2

3

4

Serious assaults

5,039

5,206

5,810

3,206

3,890

4,152

Abortion

10

5

3

17

4.

5

Kidnapping

3

3

7

3

3

9

Criminal intimidation

709

632

596

464

431

385

Other offences

110

80

145

54

56

117

Sub-total

5,932

5,990

6,631

3,795

4,429

4,733

266

Appendix 31

- Contd (Chapter 11: Public Order)

Against public morality

Rape and indecent assault

Other offences

Sub-total

Number of crimes/offences reported

Number of persons* prosecuted

1977

1978

1979

1977

1978

1979

931

772

819

385

343

387

522

340

442

293

254

304

1,453

1,112

1,261

678

597

691

|

Against property

Robbery with firearms

24

23

14

21

16

6

Other robberies

6,501

5,637

7,606

990

974

1,445

All burglaries

5,565

5,412

7,470

445

543

784

Going equipped for stealing, etc

739

656

638

88

153

145

Blackmail

2,840

2,678

1,428

732

600

657

Theft from persons

1,565

1,816

2,752

314

313

521

Other thefts

16,829

19,939

22,520

4,394

4,586

5,383

All frauds

2,052

1,942

1,861

580

621

490

Handling stolen goods

327

383

844

122

135

183

Criminal damage to property

1,558

1,852

2,212

493

611

672

Unlawful possession

853

869

850

449

390

419

Possession of an unlawful instrument

505

444

365

71

62

76

Loitering and trespass

2,261

2,008

1,950

2,160

1,712

1,680

Sub-total

41,619

43,659

50,510

10,859

10,716

12,461

Other crimes

Forgery and coinage

708

680

1,163

123

90

103

Bribery and corruption

67

37

42

40

21

32

Possession of arms and ammunition

130

55

86

77

42

43

Conspiracy

80

49

86

134

75

198

Breach of deportation

9

13

11

7

10

Other crimes

111

32

43

42

7

11

Sub-total

Serious narcotic offences

1,105

866

1,431

423

245

395

1,668

1,700

1,376

2,096

2,162

1,855

Total

56,749

57,076

64,653

21,839

21,533

23,374

Total less blackmail and associated theftst

51,610

52,387

62,346

Overall detection rate

(excluding blackmail and associated thefts)

1977-57.0 per cent

1978-56.3 per cent

1979-51.9 per cent

Narcotic Offence Cases

Serious offences

Manufacturing

7

1

16

19

5

Trafficking (importing)

-

-

Other trafficking

179

188

90

195

220

134

Possession for purpose of trafficking

1,482

1,506

1,285

1,885

1,923

1,716

Sub-total

1,668

1,700

1,376

2,096

2,162

1,855

Minor offences - Opium

Possession of opium

567

525

353

414

453

271

Possession of equipment

252

348

237

87

225

77

Keeping a divan

159

99

63

130

80

42

Smoking opium

1,249

820

331

1,180

770

275

Other opium offences

11

1

6

5

Sub-total

2,238

1,793

990

1,816

1,528

665

Appendix 31

- Contd (Chapter 11: Public Order)

267

Number of crimes/offences reported

Number of persons* prosecuted

1977

1978

1979

1977

1978

1979

Minor offences - Heroin

Possession of heroin

3,750

3,890

2,643

3,551

3,597

2,497

Possession of equipment

1,206

1,671

1,170

547

715

499

Keeping a divan

18

13

-

22

11

Smoking heroin

747

668

348

512

398

215

Other heroin offences

36

17

39

4

5

14

Sub-total

5,757

6,259

4,200

4,636

4,726

3,225

Minor offences - Other dangerous goods

Possession

228

262

295

204

259

259

Smoking

22

12

22

15

10

5

Other offences

27

39

51

12

18

35

Sub-total

277

313

368

231

287

299

Total

9,940

10,065

6,934

8,779

8,703

6,044

Note: If a person is prosecuted on two or more occasions in a year, he will be recorded once for each occasion; on the other hand, if a person is prosecuted on the same occasion for more than one offence, only the principal offence will be taken for tabulation.

† Excessive multiple counts often arise from these two offences.

ICAC Cases

Number of persons prosecuted

1977

1978

1979

Nolle

Pending Convicted Acquitted Prosequi

Total

2

3

12

1

17

10

44

1

1

8

1

4

28

46

13

88

| | | | | | | | |--19|

5

11

||- | | | | |-

1213

6

FIFO|||| 19-18

1

59

17

| |~~~~ |||│** | | 8 |

~ |O|||~~~ |

Involving individuals employed in government departments

Agriculture and Fisheries

Fire Services

Education

Government Supplies

Housing

Immigration

1

Crown servants/private individuals* Public bodiest

198

11

3

1

Public bodies/private individuals*

3

Private sector‡

37

32

56

12226

15

50§

3

3

14

102

Sub-total

Total

63

215

72

45

82

29

2

158

151

73

128

42

3

246

Note:

* These are cases in which Crown/public servants and private individuals were involved. † As defined in the Prevention of Bribery Ordinance 1971, Cap. 201.

These are cases in which only private individuals were involved.

1" 1 །g། ། 1g |

1

10

152

Legal Aid

Medical and Health

New Territories Administration

Post Office

Prisons

Public Works

Rating and Valuation

Royal Hong Kong Police Force Social Welfare

Television and Entertainment

Licensing Authority

Trade Industry and Customs

Transport

Urban Services

Sub-total

Others

Judiciary

§ These figures do not include corruption cases, mainly Police on-street arrests, handled by the Police which are included

separately under Police Cases in this Appendix.

268

Appendix 32

(Chapter 11: Public Order)

Cases in the Supreme Court, District Court,

Tenancy Tribunal, Labour Tribunal and Lands Tribunal

1977

1978

1979

Supreme Court

Civil appeals

74

107

Criminal appeals

1,373

1,239

104 1,215

Original jurisdiction

3,773

4,760

5,800

Miscellaneous proceedings

842

768

850

Adoptions

415

347

409

Divorce

160

59

66

Criminal sessions

124

127

115

Admiralty jurisdiction

208

287

240

Probate grants

2,261

2,657

2,896

Bankruptcy

89

76

107

Company winding-up

82

94

111

Total

9,401

10,521

11,913

District Court

Criminal jurisdiction

763

855

Civil jurisdiction

15,896

17,104

1,009 20,448

Workmen's compensation

356

330

375

Distress for rent

2,120

2,107

2,104

Divorce jurisdiction

1,372

1,728

2,018

Small claims tribunal

8,881

11,597

14,738

Total

29,388

33,721

40,692

Tenancy Tribunal

Ordinary cases

159

129

Exemption cases

160

166

174

Demolished building cases

20

12

2223

72

79

Total

339

307

325

Labour Tribunal

Claims dealt with

2,799

3,508

4,235

Lands Tribunal

Claims filed

376

39

9

Work in the Magistracies

Summary matters (charges, summonses

and applications, etc)

550,307

483,600

599,809

Adult defendants

568,648

491,301

600,078

Adult defendants convicted

539,050

463,572

570,808

Juvenile defendants

5,110

5,148

6,945

Juvenile defendants convicted

4,660

4,752

6,456

Charge sheets issued

157,833

129,205

107,503

Summonses issued

384,982

346,342

488,465

Miscellaneous proceedings issued

5,203

4,674

3,840

Appendix 33

(Chapter 11: Public Order)

269

Prisons

As at end of year

1977

1978

1979

Population of

Prisons

Prisoners

4,958

4,242

4,139

Detainees (illegal immigrants)

749

4,481

Training centres

469

357

287

Detention centres

106

228

296

Treatment centres

1,658

1,606

1,197

Discharges under aftercare

2,966

2,535

2,565

Appendix 34

     (Chapter 13: Public Works and Utilities) Electricity Consumption, 1979

Sales per

Maximum

head of

demand

Sales million

Consumers

population

megawatts

megajoules

hundreds

megajoules

China Light and Power Company

1,780

26,756

8,516

7,040

(1,572)

(23,619)

(8,125)

(6,843)

The Hongkong Electric Company

Cheung Chau Electric Company

691

9,681

2,939

9,272

(658)

(9,142)

(2,789)

(8,807)

2.5

34

56

1,480

(2.3)

(32)

(54)

(1,465)

36,470

11,511

7,443

Note: Figures in brackets refer to 1978.

1 megajoule=0.28 kW.h

Electricity Distribution

Domestic

Industrial

(32,793)

(10,968)

(7,119)

Million megajoules

1977

1978

1979

6,944

7,364

7,556

11,499

12,781

14,124

Commercial

Street lighting

Export to China

Total

11,236

12,533

13,763

112

117

120

www

907

29,792

32,794

36,470

Note: The export of electricity to China commenced in April 1979.

Gas Consumption and Distribution

Domestic

Industrial

Commercial

Total

Note: 1 megajoule=0.01 therm

Water Consumption

Fresh water

Salt water (flushing purposes)

Million megajoules

1977

1978

1979

994

1,249

1,501

180

179

202

904

1,076

1,318

2,077

2,503

3,021

1977

387

75

Note: Fresh water supply hours for 1977 and 1978 totalled only 5,990 and 7,314 respectively.

Million cubic metres

1978

1979

412

467

76

76

270

Appendix 35

(Chapter 14: Communications and Transport)

International Movements of Aircraft and Vessels

1977

1978

1979

Aircraft

Arrivals

25,025

26,320

27,965

Departures

25,025

26,322

27,963

Total

50,050

52,642

55,928

Ocean-going vessels

Arrivals

8,916

9,436

9,810

Departures

8,968

9,396

9,900

Total

17,884

18,832

19,710

River steamers, hydrofoil vessels, junks

and launches

Arrivals

35,711

36,298*

41,679*

Departures

35,722

36,291*

41,634*

Total

71,433

72,589*

83,313*

Note: * Including Hong Kong-Canton Hoverferries.

International Movements of Passengers (Immigration figures)

Arrivals

Air

Sea

Land

Total

Departures

Air

Sea

Land

Total

Note: All figures quoted here exclude:-

i. Passengers in transit.

ii. Passengers refused permission to land.

iii. Military passengers.

Thousands

2,279

2,624

2,827

2,584

2,726

3,392

1,113

1,437

3,246

5,976

6,787

9,465

2,300

2,657

2,900

2,589

2,735

3,373

1,082

1,371

3,188

5,971

6,763

9,461

International Movements of Commercial Cargo by Different Means of Transport

Tonnes

Air

Imports

Exports

Total

Sea

Imports

Exports

70,639

91,307

107,019

113,374

137,624

150,389

184,013

228,931

257,408

19,112,226

20,909,017

22,598,774

6,525,061

6,923,416

7,711,080

Total

25,637,287

27,832,433

30,309,854

Rail

1,447,149

1,447,934

Imports* Exports

Total

Note: * Excluding livestock totalling 1,749,065 head in 1977, 2,027,013 head in 1978 and 1,977,286 head in 1979.

4,021

1,941,566

785

1,832,368 1,224

1,833,592

1,937,545

271

Appendix 36

(Chapter 14: Communications and Transport)

Registered Motor Vehicles

Public service vehicles

Public buses

        China Motor Bus Company Kowloon Motor Bus Company

New Lantao Bus Company Others

Public light buses

Taxis

Public hire cars

Private vehicles

Motor cycles

Motor tricycles

Private cars

1977

As at end of year 1978

1979

751 1,708

820

848

1,804

1,867

49

53

58

1,227

1,416

1,609

4,350

4,350

4,350

6,203

7,663

8,762

916

21,344

22,093

23,289

14

12

7

122,858

142,049

162,762

Private buses

263

242

222

Private light buses

1,079

1,026

964

Goods vehicles

42,798

47,405

Crown vehicles (excluding vehicles of HM Forces)

Motor cycles

943

Other motor vehicles

3,018

Total

207,521

997 3,220 233,150

51,780

915 3,495 260,928

Tramcars

Hongkong Tramways Limited

Tramcars

162

Trailers

223

162

163

22

22

329

20

Peak Tramways Company

Tramcars

3

3

3

Total

187

187

186

Public Transport: Passengers Carried by Undertaking

Thousand journeys

1977

1978

1979

Kowloon Motor Bus Company

810,930

860,480

934,339

China Motor Bus Company

239,608

254,687

274,324

Hongkong and Yaumati Ferry Company

133,443

131,183

142,415

'Star' Ferry Company

Hongkong Tramways Limited

Kowloon-Canton Railway

Peak Tramways Company

134,455

138,655

150,935

50,961

54,213

56,538

13,796

15,835

18,353

1,942

1,971

2,107

New Lantao Bus Company

2,007

2,203

2,481

Ocean Park Limited

2,029

1,532

1,586

Mass Transit Railway Corporationț

11,742

Total

1,389,171

1,460,759

1,594,820

Note: † The Modified Initial System of the Mass Transit Railway opened on 1.10.79.

Public Transport: Passengers Carried by Area

Hong Kong Island

Kowloon

Cross Harbour

Ferry

Tunnel

New Territories

Urban

Rural

Ferry

Total

Thousand journeys

316,879

332,024

358,530

542,465

557,511

590,590

166,653

166,587

177,275

127,790

139,743

153,772

126,738

137,281

161,388

90,895

108,804

131,587

17,751

18,809

21,678

1,389,171

1,460,759

1,594,820

Public Transport: Daily Average Number of Passengers

Carried by Different Modes of Transport

Thousand journeys

Bus

2,884

3,061

3,319

Public light bus*

1,615

1,498

1,577

Taxi*

665

833

717

Ferry

505

508

545

Tram

374

385

420

Public hire car*

33

Railway

38

43

50

Mass Transit Railwayt

128

Total

6,114

6,328

6,756

Note: * Estimate.

† The Modified Initial System of the Mass Transit Railway opened on 1.10.79.

272

Appendix 37

(Chapter 14: Communications and Transport)

Communications

Postal traffic:

1977

1978

1979 Estimate

Letter mails (million articles)

posted to destinations abroad

78.8

85.1

96.8

posted for local delivery

154.5

168.9

189.6

received from abroad for local delivery

61.9

66.8

78.1

in transit

3.0

3.4

3.7

Parcels (thousands)

posted to destinations abroad

2,412

1,850

1,829

posted for local delivery

117

146

174

received from abroad for local delivery

562

540

541

in transit

42

42

41

Telecommunications traffic:

Telegrams (messages) (thousands)

accepted for transmission

1,133

1,161

1,370

received

1,405

1,463

1,522

in transit

1,323

1,288

1,505

Telex calls (thousand minutes)

outward

12,355

16,526

19,117

inward

14,861

19,426

22,413

International telephone calls (thousand minutes)

outward

17,442

23,026

31,356

inward

22,023

30,597

39,844

Radio pictures

transmitted

8,348

6,954

received

19,410

25,298

7,690 25,652

Broadcast and reception services (thousand hours)

press

30

30

32

meteorological

123

120

115

International telephone circuits

638

744

919

International telegraph circuits

1,811

2,081

2,412

849

988

1,188

67

82

115

923

972

1,182

62

62

63

1,203

1,253

1,331

994

1,083

1,171

1,251

1,380

1,518

27.4 21,804

29.0

30.5

27,907

36,200

Telex trunks

International leased circuits

voice grade

telegraph

Telephone exchanges

Exchange capacity (thousand lines)

Subscribers (thousands)

Telephones (thousands)

Telephones per 100 population

Telecommunications licences (all types)

Appendix 38

(Chapter 18: Recreation and the Arts)

Recreational Facilities Provided by the Urban Council

and the New Territories Services Department

Facilities

Children's playgrounds

Parks and gardens

Grass games pitches

Hard-surface mini-soccer pitches

Tennis courts

1977

1978

1979

222

227

194

452

478

457

45

47

47

129

136

130

Basketball/volleyball/badminton courts

326

328

267

43

43

46

Running tracks

8

9

13

Beaches

37

40

40

Swimming pool complexes

10

11

11

Multi-purpose indoor games halls

4

4

5

Obstacle golf course, squash courts, practice tennis court, bowling

and putting greens, roller-skating rinks, table tennis tables Aviaries and mammal exhibits, concrete chess tables, model boat

pools, open-air theatre

41

52

61

16

55

61

Bandstand, barbecue pits, composite beach buildings, changing rooms, fountains, dog's gardens, refreshment kiosks, public toilets, public libraries, pavilions/shelters, spectator stands

Total area of public open space administered (hectares)

731

663

1,100

672

1,174

730

Note: 216 estate playgrounds in the urban area were handed over to Housing Department for management with effect from 1.4.77. 78 estate playgrounds in the New Territories were handed over to Housing Department for management with effect from 1.1.79.

1 hectare-2.47 acres

Appendix 39

(Chapter 19: The Environment)

Climatological Summary, 1979

Mini-

mum

273

Mean

pressure

Maxi-

mum

Mean

Mean

Mean

Mean

Total

Prevailing

Mean

Month

  at mean air tem- sea level perature

air tem-

air tem-

dew

relative

amount

bright

Total

wind

wind

perature

perature

point

humidity

of cloud

sunshine

rainfall direction

speed

kilopascals

°C

°C

°C

°C

per cent

per cent

hours

mm

points

m/s

January

101.94

23.7

17.6

6.8

14.0

80

70

122.5

45.1

ENE

5.8

February

101.63

26.5

18.9

6.1

14.8

78

72

93.9

9.4

E

6.1

March

101.40

27.8

19.3

12.6

17.2

88

90

38.0

71.9

ENE

7.5

April

101.29

32.4

21.7

14.1

18.9

85

83

86.0

234.5

ENE

6.0

May

100.91

31.2

24.4

19.4

21.9

86

84

94.3

311.6

E

5.9

June

100.82

32.3

26.9

22.1

24.2

86

78

142.1

378.2

E

5.3

July

100.60

33.8

29.2

24.4

25.1

79

63

273.7

339.4

SW

5.0

August

100.41

33.5

27.9

23.5

25.1

85

76

138.2

706.9

WSW

5.2

September

101.05

32.9

27.1

22.5

23.4

81

65

164.3

506.3

E

6.0

October

101.53

30.6

24.7

20.3

16.2

61

20

297.4

0.0

November

101.92

28.9

20.4

10.5

11.8

60

57

150.7

11.2

Z t

E

5.7

N

8.2

December

102.09

25.3

18.6

11.4

13.3

73

30

230.4

0.2

ENE

6.4

Mean

101.30

23.1

18.8

79

66

E

6.1

Total

-

1,831.5

2,614.7

Climatological Normals (1947-1976)

Month kilopascals

°C*

°C*

°C

per cent

per cent

hours

mm points†

m/st

January

102.01

26.9

15.6

0.0

9.9

72

February

101.83

27.8

15.9

2.4

11.8

223

58

157.2

28.5

ENE

6.5

79

71

109.0

44.9

ENE

6.4

March

101.63

30.1

18.4

6.2

14.9

82

76

106.3

49.3

ENE

6.0

April

101.31

33.4

21.9

9.9

18.8

84

76

119.3

135.3

E

5.3

May

100.92

35.5

25.9

15.4

22.7

84

73

164.2

289.3

E

5.3

June

100.59

35.6

27.6

19.2

24.4

84

77

149.4

457.5

SW

5.7

July

100.55

35.7

28.5

22.2

24.9

82

66

226.0

319.3

SW

5.2

August

100.53

36.1

28.1

21.6

24.8

83

66

206.1

420.2

E

5.1

September 100.84

35.2

27.5

18.4

23.3

80

62

191.2

330.8

E

5.9

October

101.39

34.3

24.9

13.5

19.4

73

54

209.0

107.2

E

7.2

November

101.75

31.8

21.3

6.5

15.1

70

53

189.4

38.2

E

7.4

December

101.96

28.7

17.5

4.3

11.4

70

54

171.9

25.9

E

6.9

Mean

101.28

22.8

18.5

78

55

Total

I

1

T

65

1,998.8

2,246.4

E

6.1

1

Note: 1 kilopascal=10 millibars

1 m/s 1,94 knots

* 1884-1939; 1947-1979.

† 1953-1979 as record commenced in 1953 at Waglan Island.

274

Appendix 40

(Chapter 23: Constitution and Administration)

The Executive Council

Type of

appointment Names of Members on January 2, 1980

Presided over by His Excellency the Governor

Sir Crawford Murray MACLEHOSE, GBE, KCMG, KCVO

Official Members:

Ex-officio The Honourable the Chief Secretary Sir Jack CATER, KBE, JP

Ex-officio The Honourable the Commander British Forces

Major General Sir Roy REDGRAVE, KBE, MC

Ex-officio The Honourable the Financial Secretary

Sir Philip HADDON-CAVE, KBE, CMG, JP

Ex-officio The Honourable the Attorney General

Mr John Calvert GRIFFITHS, QC

Ex-officio The Honourable the Secretary for Home Affairs

Mr Li Fook-kow, CMG, JP

Nominated The Honourable David AKERS-JONES, CMG, JP (Secretary for the New Territories)

Unofficial Members:

Nominated The Honourable Sir Yuet-keung KAN, GBE, JP

Nominated The Honourable Sir Sidney GORDON, CBE, JP

Nominated The Honourabl