Hong Kong Yearbook - Annual Report for the Year 1980

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HONG KONG 1981

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HONG KONG, KOWLOON & THE NEW TERRITORIES

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1.

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} HONG KONG 1981

A review of 1980

MEZAJAZNEPES

BEST SE

HONG KONG 1981

Editor:

Designer:

Cynthia Kerr Rao,

1769212 £51.15

HON

Government Information Services

Arthur Hacker,

Government Information Services

HKC

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

Government Information Services.

Special acknowledgement is due to the Exeter Maritime Museum, UK, for the photograph of the Keying II.

Printer and

Publisher:

Statistical

Sources:

D. R. Rick, Government Printer

Census and Statistics Department

The Editor acknowledges all contributors and sources

Copyright reserved

    Frontispiece: The egg-shaped dome of Hong Kong's space museum has created a new landmark on the waterfront of the Kowloon peninsula, close to the old clock tower, which has been preserved as a link with the past.

Contents

Chapter

1

HONG KONG: YESTERDAY AND TODAY

-

A PERSONAL VIEW

Page

1

2

INDUSTRY AND TRADE

16

3

FINANCIAL SYSTEM AND ECONOMY

35

4

EMPLOYMENT

50

5

PRIMARY PRODUCTION

59

6

EDUCATION

66

7

HEALTH

84

8

HOUSING AND LAND

98

9

SOCIAL WELFARE

116

10

PUBLIC ORDER

124

11

IMMIGRATION AND TOURISM

145

12

PUBLIC WORKS AND UTILITIES

152

13

COMMUNICATIONS AND TRANSPORT

159

14

THE MEDIA

176

15

THE ARMED SERVICES AND AUXILIARY SERVICES

183

16

RELIGION AND CUSTOM

189

17

RECREATION AND THE ARTS

195

18

THE ENVIRONMENT

209

19

POPULATION

223

20

NATURAL HISTORY

226

21

HISTORY

230

22

CONSTITUTION AND ADMINISTRATION

238

APPENDICES

251

300

INDEX

Frontispiece

People

Yesterday and Today

Illustrations

Between pages

4-5

12-3

Gold

28-9

Aberdeen

60-1

Hong Kong in London

92-3

Housing

108-9

Tourism

140-1

172-3

The Media

Leisure

Sai Kung

END-PAPER MAPS

Front:

Hong Kong, Kowloon and the New Territories

Back:

Hong Kong's External Trade

204-5

220-1

Appendix

1

UNITS OF MEASUREMENT

Appendices

2

OVERSEAS REPRESENTATION

3-4

INDUSTRY And Trade

Page

254

255

258

5-12

FINANCIAL SYSTEM AND ECONOMY

262

13-16

EMPLOYMENT

17-19

PRIMARY PRODUCTION

20-23

EDUCATION

24-27

HEALTH

28-29

HOUSING AND LAND

30-33

PUBLIC ORDER

34

PUBLIC WORKS AND UTILITIES

35-37

272

277

279

281

283

285

289

COMMUNICATIONS AND TRANSPORT

290

38

RECREATION AND THE ARTS

39

THE ENVIRONMENT

293

293

40-42

CONSTITUTION AND ADMINISTRATION

294

43

Social WelFARE

298

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 1980, the middle market rate was about HK$5.1=US$1.

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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.

1

Hong Kong:

Yesterday and Today-A Personal View

by Robin Hutcheon, Editor of the South China Morning Post

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It has been a year when the futurists have dominated the headlines of the Hong Kong press with grim forebodings and woeful tidings, as much because of the unresolved status of the New Territories lease, as because of the unchecked influx of immigrants who helped boost Hong Kong's population by 6.3 per cent in 1979. But it is perhaps timely to offer the view that all this agonising is an exercise in futility. There is unlikely to be a firm under- taking on Hong Kong's future, however much we may desire it, when 17 years must seem an age away for the present Chinese leaders. It is hard enough indeed to predict what might happen 17 days, or weeks, hence. As for the effects of massive immigration, perhaps hind- sight is more valuable than foresight, for we have experienced it all before. So let us indulge in a retrospect:

When the Japanese occupation ended in 1945, it left a hollow, broken shell of a city, little different from the one that died in December, 1941. However dedicated the surviving administrators who marched out of Stanley camp to get things moving, however capable the temporary military administration which took over, and however resilient the com- mercial and business community which put Hong Kong back on its feet a year later, as always it was the people who provided the lifeblood and determined that it would survive. And just as they deserted the city in its death throes in 1941, so they returned in 1945 and 1946 as the pulse of life began to beat again.

       Yet no sooner had Hong Kong respectably recovered its pre-war stability than civil war in China rattled at its gates. Newcomers began arriving, bringing with them new ideas, new ways and new capital from the sister city of Shanghai. Industrialists, workers, but above all people with a will to live and thrive, poured in to make Hong Kong a com- munity more crowded - and in many ways more impoverished (but eventually much richer) than it had ever been before.

       In the year 1980 we watched apprehensively and uncertainly as a similar process took place, though for different reasons. But however much we disliked what was happening (and short of an economic miracle in China, the latest wave of immigrants is unlikely to return), it is in Hong Kong's interests to try and get the best out of them and ensure they contribute usefully to their adopted community. For they will learn soon enough that there are no streets paved with gold, no handouts for shirkers, no indulgence for the wayward, no future for the useless and sharp shocks for the law-breakers.

Hong Kong has learned to live for the day and neither to bemoan the past nor begrudge the future. And so it has always been. The greatest challenge Hong Kong faces lies in the present and we can only plan hopefully for the time to come. The overthrow of one government and its replacement by another in China in the 1950s brought not only massive new population here but major problems as well. The outbreak of war in Korea led to the United Nations embargo on trade with China. No community or territory suffered more

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by this ban than Hong Kong. Overnight, the huge boom in exports to the newly-established People's Republic stopped in its tracks and, in the course of one year, the thriving entrepôt trade was destroyed. And it took Hong Kong 12 years to recover its former level of total exports.

New Directions

The territory could be certain that at that stage its salvation would not be found in supplying the needs of its neighbour. With its growing population, moreover, it needed to change the entire basis of its economy to one which would support not just a handful of merchants and hordes of commission brokers, but an ever-growing workforce. The Shanghai indus- trialists who came down here with their textile expertise, showed the way, and gradually trade began to grow. Hundreds of thousands of people at that stage, owing no allegiance to Hong Kong, made the historic decision to stay put, in spite of the appalling shanty towns in which they lived, and the hand-to-mouth existence they led. And to the credit of the government and people, none was turned away.

These were the days of soup kitchens and rice bowl welfare. A new turning point came when, on Christmas night, 1953, more than 50,000 were made homeless in an inferno at Shek Kip Mei, west of the Kowloon peninsula; the huge column of smoke from it blotted out the massif of Tai Mo Shan. Many people left Christmas dinners and volunteered to help on that night, and from this sprang three great initiatives which have helped make Hong Kong the city it is today:

First, the realisation that the refugees were here to stay and needed substantial homes;

hence, the birth of the resettlement and public housing programme;

Second, the voluntary spirit, which is perhaps Hong Kong's most priceless asset, survi-

ving and being continually renewed and replenished down the years;

Third, the foundation of a commitment by Hong Kong to its people, a commitment that

would broaden and intensify with the passing of time.

      Almost incidentally grew the understanding that Hong Kong needed something more than a market garden economy to sustain the growth that would have to take place. If welfare state Britain offered one model of progress Hong Kong had no choice but to reject it. The prohibitive cost alone would have been a fatal millstone around its neck. Moreover, constitutional advance - promised by the retiring post-war Governor, Sir Mark Young, in 1946 - was put aside, and under Sir Alexander Grantham, Hong Kong laid the founda- tions of an open industrial economy in which there would be no pretentious policies and no grandiose philosophies.

Taxation, which Hong Kong had accepted as a war-time necessity, was limited and controlled, and in remaining so to this day has proved one of the strongest economic incentives to old and new business. Enterprise was given the freedom to be itself and the commercial world was given almost carte blanche to get an over-populated, underemployed people to become a self-respecting workforce.

Serious riots in 1956, and trade barriers in the late 1950s against the thriving textile industry showed up Hong Kong's inadequacies, both administratively and in economic development. Without plans and without direction, a large textile industry had grown up to the point where its exported output proved indigestible to its struggling, out-dated counterpart in Britain. Hong Kong learned and adapted. Wisely, however, it was not for the government to direct and dictate the form that industry should take; leave that to market forces and let Hong Kong's natural skills come to the fore.

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Torches, rubber shoes, enamelware, ivoryware and metal goods flourished alongside a now thriving textile industry. The awakening of a world-wide demand for Chinese cuisine came from early exports of potted ginger, tinned lychees and soya sauce. And from over- seas, began the first small stream of tourists, as much to sample the delights of this bright new oriental pearl as to buy its wares from the front counter of this fascinating eastern emporium.

If wages rose slowly in those years, the government was also cautious in assuming the powers of a progressive and modern welfare state. Its concerns were basic: build housing, however limited; provide schools, however rudimentary; set up clinics to meet the most urgent health needs (like tuberculosis, which ravaged thousands each year); give food and rations where needed and succour only to the most desperate and deserving. And happily, in those days, many international relief associations came in to help Hong Kong.

An Ability to Adapt

There was fortunately no shortage of people for the ever-growing industries that were set up in the townships of Tsuen Wan and Kwun Tong, on the west and east of the Kowloon peninsula. The year 1962 saw a huge surge of immigrants following a temporary break- down of order in Guangdong (Kwangtung) province in China. Hong Kong worried then, as now, where they would live, who would feed and employ them, how they would be housed and cared for. But again events overtook plans as new industries took root, often in back-streets, in dreadful conditions and with old and decrepit machines, but handled by workers with a genius for making them productive. Wives and daughters strung plastic flowers and leaves on threads as the rice pot bubbled.

Resettlement blocks increasingly dominated our skyline 'biscuit boxes' they were somewhat derisively called. Yet, for thousands, they were home: proof against the fierce wind of the typhoon or the consuming flame of an overturned kerosene lamp or charcoal chatty. These blocks marched across the old shanty areas of Sham Shui Po, Shek Kip Mei, Wong Tai Sin and Choi Hung a growing concrete tide sweeping east and west, day by day, along the shoreline, up the hill and over the ridge. And in them the life of Hong Kong took root with surprising adaptability, great patience and good grace.

The old criss-cross runways of Kai Tak, good enough for DC-4s and DC-6s, and even the propeller-driven tri-tail Constellations of the late 1950s, were no longer adequate for the jet age which came first with the Comet and, eventually, the 707s. And gradually the long arm of the new runway reached out into Kowloon Bay to catch the tourist planes with their loads of eager buyers and sightseers. A good place for clothes, then as now, Hong Kong offered the best and the latest that Europe could provide at prices that were far cheaper. There were also Japanese cameras and pearls, Chinese antiques and handwork, Hong Kong-made jewellery and furniture, not to mention a local cuisine that would take the world by storm offering the knife and fork the nimble, intriguing challenge of the chop- sticks. The counter-reformation of the chicken leg and the hamburger was still more than a decade away.

Hong Kong in the early 1960s was taking on the appearance of a settled and stable com- munity with a rising standard of living. It bought hundreds of millions of dollars worth of pigs, vegetables, fish, eggs and delicacies from its neighbour -- in addition to the produce of the New Territories market gardeners and the fishing fleet - and paid for them with the hard cash it earned stitching suits, shirts, underwear, overcoats, jerseys, dresses, skijackets and shoes for the people of North America, Britain and Europe. Cash was the name of the game; there were few bad debts and Hong Kong could be trusted by the world.

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      It was a community that had learned to live with natural disasters. The fires that con- sumed whole squatter areas, depriving thousands of their homes and possessions, were followed in the early to middle 1960s by huge typhoons and a rainstorm which washed away streets and houses and left whole districts like The Peak marooned for days, with residents supplied by food drops from helicopters. Great landslides gouged-out giant claw marks on the hills and their outlines remain visible to this day.

      Wanda, the super-typhoon of 1962 which hit Hong Kong dead-centre, was the worst since the titanic storm of 1937 and, like its predecessor, scattered ships like so much flotsam on the shores and claimed a heavy loss of life. Again, the hillside dwellers and boat people bore the brunt and with little complaint demonstrated a humbling resilience to their more fortunate fellow citizens.

Water shortages added to their miseries. Long queues gathered outside emergency standpipes with a variety of buckets and basins to collect a four-day supply and then struggled up steep hillside paths, balancing shoulder poles. But in adversities of this kind the refugee population retained longer memories of a grimmer past, and for the most part stood with quiet patience and admirable endurance.

      There were, however, queues of another kind which often gave way to quarrels and bit- terness in the middle and later 1960s. Long before the growing number of banks were required to hold a minimum amount of liquid assets, the temptation by managements and proprietors to invest heavily in property proved the undoing of two well-patronised local institutions. This led to a run not just on the banks affected but on others as well, and long queues formed all over the territory as people rushed to recover their life's savings. The ensuing shortage of Hong Kong currency forced the government to fly out sterling notes from Britain as a stand-by, and declare them legal tender. They were not used, but the episode was a salutary lesson on the virtues of regulation of liquid assets and cash flow that Hong Kong was quick to learn.

The Stormy Mid-60s

There was, however, to be trouble of another kind the next year, illustrating a growing public consciousness of rights and wrongs, and in an era of public protest elsewhere in the world over weightier issues such as the Vietnam war, a small number of disgruntled Hong Kong young people took up the cudgels over a five-cent increase in the first-class Star Ferry fare. The riots of 1966, were the first since the serious 'Double Tenth' riots of 1956, and were to be followed by a convulsion far greater and more damaging in its impact in the following year, shaking as it did one of the foundations on which Hong Kong's security and confidence was built.

      Across the border, an ominous tension was building up in a land which had stabilised its society in the aftermath of tumultuous campaigns such as the 'Great Leap Forward' and 'The Hundred Flowers'. Hectic years spent trying to achieve economic equality with the Western world with a proliferation of backyard furnaces, lapsed into an era of sullen moodiness. Preoccupied with its own domestic turmoil, Hong Kong was in turn shaken when its great neighbour suddenly awoke from the torpor of a revolution gone stale, and broke out in a new frenzy of political activity. Hong Kong had watched similar manifes- tations in the past as campaign fever gripped the country and sent hundreds of millions rampaging in the streets and across the countryside with drums, posters and slogans. But never one like that which came to the boil in 1966 and burst over the borders with a sizzle and a crackle a year later.

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Previous page: A helping hand, and Her Royal Highness Princess Alexandra steps aboard a village ferry at Tai O on Lantını island, during her visit to Hong Kong in February...... 1980. Above: Skilful fingers are needed to assemble this giant paper horse, which will be burnt to celebrate Yue Lan, the Festival of Hungry Ghosts.

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Taking a break during the filming of a television programme, these dancers epitomise the zestful nature of Hong Kong's younger citizens.

KONG PUBLIC

PUBLIC LIBRA

Bv clapping hands, office workers ruise-the water level of a fountain, which responds to surrounding noise in the heart of busy Central District

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       Torrid days, with chanting crowds shaking clenched fists in front of Government House, turned into tempestuous weeks and months, with the strong hand of the Royal Hong Kong Police Force bearing the brunt of bombs and riots. But the troubles, while serious, were localised and elsewhere life went on almost normally. Food and water continued to arrive from mainland suppliers virtually without interruption. Industry got on with its work. Exports continued moving overseas. Offices carried on. Shops continued to do business. And at year's end, Hong Kong picked itself up, as it had from many a great storm of nature, felt its pulse, patched its wounds, stood on its feet, shook its head and confounded the critics by rising from the ashes.

Its resilience, indeed, surprised no one more than the people who at the end of the decade of the 60s, found themselves launched on one of the greatest booms of their history. These were the years that Hong Kong grew under the leadership of men like Sir Robert Black and Sir David Trench, who deserve credit for giving free rein to the natural enterprise and dynamism of the people, and repressing the temptation of all bureaucrats to interfere.

Into the Booming 70s

A profile of Hong Kong at the dawn of the decade of the 70s would have shown that its population was just over four million, with natural increase at a respectable 1.4 per cent and the crude birth rate down from more than 30 per 1,000 in the 1960s to less than 19. Gross domestic product per head was $4,716 and it was growing in 1970 at the rate of 15.4 per cent. By the year 1973, this had risen to $7,269 and growth was just under 24 per cent. Private consumption expenditure in the same period rose from $14 billion to almost $23 billion, and the annual growth rate was 32 per cent. Government consumption expenditure was lagging slightly at 23.5 per cent in 1973.

       Exports in 1970 were of the order of $12.3 billion, with re-exports of $2.8 billion and imports of $17.6 billion, giving a total trade of $32.8 billion. Textiles and garments were by far the largest element in our export trade then as now, accounting for 45 per cent by value and employing 40 per cent of the labour force which then totalled about 570,000 men and women. Plastics of all kinds was the second biggest, making up about a quarter of our exports. As for the major destinations, in spite of textile restraints imposed by both countries, the United States and Britain accounted for 54 per cent of our exports. Germany, Japan, Canada and Australia followed.

In terms of housing, about 43 per cent of Hong Kong's people were living in government- provided or government-assisted accommodation with controlled rents, but sturdy and dependable as the old resettlement estates were (the oldest then being 15 years) they were showing signs of deterioration. The first of a new generation of estates offering 35 square feet per adult was opened in November, 1970. It was also the 500th block. The all-in rent of a standard room of 120 square feet in an old block was $18 a month while in the new block the space had been increased to 135 square feet and the rent raised to $34.

In education, enrolment in primary schools was 765,397, and at all schools and colleges the figure was 1.24 million. The government was proposing to introduce free primary education in its own schools and to provide three years of assisted secondary education to those in the 12 to 14 age bracket.

In so far as the territory's health record, the old bogeys on the Hong Kong scene were beginning to recede. Tuberculosis, affecting about one per cent of the population, was on the decline with: 10,000 new cases a year and 1,436 deaths a sharp drop from the early 1950s. Diphtheria and malaria were likewise off the danger list. People were living longer and increasingly Hong Kong was noticing a trend towards longer life, fewer epidemics and

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a demand for more complex and sophisticated forms of treatment requiring more highly- qualified and specialised physicians and surgeons and better-equipped hospitals and clinics. There were just over four beds for every 1,000 people.

Narcotic drugs were still a major problem with well over 100,000 believed to be dependent. As for the welfare services, the Hong Kong attitude was slowly changing. The old emergency dry rations system, which was a feature of the late 1940s and early 1950s, was giving way to one which aimed to help the most needy to get back on to their feet, and listed priorities for those most needing help. These were: families and children; economic hardship cases; the physically and mentally disabled; and increasingly specialised attention for deprived children, with the accent on youth clubs, holiday camps and recreation centres. The public assistance programme was still based on dry rations and even then was sternly means-tested. However, cash substitution was at that time beginning to replace rations, but only at the rate of $30 to $70 a month. A scheme to help 15,000 people was launched at an estimated cost of $20 million. Such was the rudimentary welfare state.

      This brief statistical framework is presented to help assess both progress made in the 25 post-war years and to enable us to comprehend the advances in the next decade - a period of rapidly changing fortunes and, at its end, massive increases in population.

Shares Tumble

The boom of the early 1970s collapsed almost as dramatically as the frenzied explosion of the stock market in March, 1973. This was a brief era of madness that neither the government nor the people will soon forget. The meteoric rise of the index to 1,774 points, doubling itself in less than three months, is attributed by many to the gambling proclivities of a population largely ignorant of the function of a stock exchange. Certainly many fortunes were made. Just as certainly many were lost. And while many big companies and knowing individuals creamed large profits from this speculative aberration, the small investor was to learn a painful lesson that would last for many years. The roaring bull market came to a shuddering halt, and the bears took over with relish - the market plunging to a low the next year of 150 points. It was an era of much more than bruised pride and burnt fingers. Many, including some who had lost everything in the Sino-Japanese war, made it up again in the post-war years, lost it all again in the Chinese civil war, made it up again in 25 years of prosperity in Hong Kong, lost it all in 1973. And the share market was to remain in the doldrums for five long years.

      It was not only massive disillusionment with shares that triggered the downturn. In late 1972 the Government of China made known its intention to charge international prices for a range of goods. Moreover, the quadrupling of oil prices by the OPEC countries which sent the international economy reeling a year later, was to add bitter rice to broken rice bowls, and the ensuing recession bit heavily into a population already savaged by lost savings and seemingly worthless investments. In desperation, many sold out and the Cassandras who had moved away in the troubles of 1967 became the Jeremiahs of a new era of doom and despondency for Hong Kong.

But the people who stayed were neither strangers to misfortune nor hostages to fate. Certainly the times were hard and the fall in industrial production and trade in 1975, coupled with the sharp rise in unemployment and the even more prevalent underemploy- ment, saw Hong Kong's fortunes slump. Many others had to forego salary increases or take cuts that year, though in retrospect they count themselves lucky that they held their jobs. Real wages between March, 1973, and March, 1975, are estimated to have fallen more than 18 per cent.

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       The sequence of events had unexpected and unforeseeable results for Hong Kong. As inventories became exhausted overseas - particularly in our major markets - and as the world slowly adjusted to higher oil prices, demand began to pick up. Hong Kong, with its low labour costs, an industry eager to get into its stride again and to diversify where necessary, snapped hungrily at the inquiries and orders that began coming in. And with that admirable resilience that Hong Kong has so often displayed in times of adversity, the clouds rolled by. The annual growth of GDP in 1975, which fell on a per capita basis to 3.9 per cent, snapped back again to 25 per cent in the following year. And GDP which had stagnated at $8,478 in 1975, surged forward to $10,651 a year later. Private consumption expenditure showed equally dramatic changes. In March, 1978, real wages were back at the March, 1973, levels, but now sharply moving upwards.

       With the shrugging-off of recession came the impetus to devise and develop new products. The space age which had put American astronauts on the moon, had triggered a major interest in electronics and gave rise to a big upsurge of new products - into which Hong Kong's manufacturers and the same nimble-fingered workers who had put our textiles and garments on the shelves of the world's shops, eagerly plunged.

       The alliance between the plastics industry and the electronics manufacturer spawned a variety of calculators, watches and components. More recently it has moved into TV games, burglar alarms, smoke detectors and more complex products. Today there are more than 1,000 electronics factories employing 90,000 workers and exports are valued at $6.5 billion. Plastics, always strong, grew stronger under the stick of overseas competi- tion and the carrot of foreign investment. More than 4,600 plastics factories using the most up-to-date equipment, built up exports to $3.4 billion. Watches and clocks, at first assem- bled from imported parts, but later fully-manufactured in Hong Kong, forged their way into prominence, with exports in 1978-9 leaping 55 per cent to $4.6 billion.

Changing Identity

This new boom was at the same time radically changing the character of the Hong Kong people. New influences from abroad, mainly from the ubiquitous television screen but increasingly from an affluent world-travelling population, were widening the horizons of local people. There were demands for more in terms of housing, welfare, health care and education. But also for better. And the change when it came was to be radical. It was also to challenge the basic traditions on which family life in Hong Kong had been built for generations. And with this change Hong Kong had to come to terms, sometimes painfully.

       There were no riots in the 1970s, but Hong Kong found a far more demanding and assertive outlook among its young people. No longer was education a question of the three Rs, no longer children proverbial parrots, no longer teachers wedded to chalk and talk. There were calls for more quality, more self-questioning, more challenge, more depth and more precise definition. The incident at the Precious Blood Jubilee School was a straw in the wind. Students were no longer to be taken for granted and the traditional docility and diligence of school children were no longer the hallmarks of the rising generation. Young workers were equally more concerned about their rights and the obligations of employers and if wages were still keeping up with hopes and expectations, there was also a greater mobility in the labour force and a quest for jobs with more skill and responsibility.

New interests, a breakdown in old values, the urge to get away from cloying influences at home or school were to send young people out in search of new challenges in work and pleasure and a deeper commitment to life in general. The old stereotypes were changing,

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and indeed society was making its own demands in greater aptitudes in factories, more innovation in offices and work places - particularly with the advent of the computer age - and far more ambitious and sophisticated enterprises to develop.

In education, this called not just for more free places and for more openings in pre- primary and secondary schools, but better teaching, a far greater variety of courses, the lifting of the lid on senior, technical and higher education and the expansion of adult education. In housing, the old norms of family togetherness had given way to a new style of youthful independence which saw more and more young people moving away from their parental home and, wherever they could afford it, trying to make a down-payment for their

own.

In welfare, the dry ration which was on the way out in 1970, was an anachronism by the end of the decade, and while Hong Kong has a long way to travel before it competes with the advanced welfare states of the West, it has at least assured the most indigent and helpless that they have a claim on the growing wealth and concern of our society.

      In housing, years of frustration in the 1960s and 1970s as the government seemed to be trying to fill a bottomless well, led to new initiatives and bigger and more promising pro- grammes, assuring people of small flats rather than single but sub-dividable rooms and, in turn, home-ownership for people at the lower end of the economic scales. At the same time, these new estates could no longer be confined to the so-called urban areas. New cities would be needed in the old but increasingly unproductive rural areas.

Imaginative Planning

In recreation, it was not enough to tell people to amuse themselves. A far-sighted Urban Council built parks and swimming pools and subsidised concerts and entertainment at a variety of localities. And the government opened up Country Parks covering more than 40 per cent of Hong Kong's land area, as well as recreation and sports centres and summer holiday camps. Even a new racecourse at Sha Tin led to the formation of a major new enterprise in the coaching of sports which hopefully will put local sportsmen more frequently among the medal winners at international competitions. Hong Kong took off in the late 1970s on a quest for a quality of life that would prove satisfying to people with widely differing tastes and inclinations.

In medical and health services, Hong Kong foresaw that its own needs for doctors and dentists could never be met without a major expansion of university places. The new dental institution for training nurses and technicians, the dental school at the University of Hong Kong and a medical faculty at the Chinese University of Hong Kong will comple- ment what the old medical school at the University of Hong Kong for years shouldered on its own.

      But more than trained personnel were needed. As in developed societies in other parts of the world, the nature of illness had changed and the old infectious diseases which ravaged an ill-fed, ill-housed and undernourished populace in the post-war years, were passing. Life expectancy moved rapidly ahead and the British examiners who came to inspect medical teaching at the University of Hong Kong in 1980, felt that one area that needed particular attention was the problem of the geriatric - a hitherto neglected field for a community with many more urgent priorities in the post-war years. This view echoed what social workers had been saying about institutional facilities for the aged. Far more places were needed in these times when fewer and fewer old people could expect to remain with a young, active and increasingly outdoors family.

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No more vivid example of the way Hong Kong learned to devise its own solutions can be found than in the way it tackled its water supply problems. From the earliest times, Hong Kong has experienced water shortages, sometimes prolonged and severe, as in 1929, but persisting into the 1960s and 1970s. Twice in the post-war years water had to be rationed to one period of four hours every four days. Today, it enjoys unlimited supplies. This has been achieved as much by its own efforts by erecting the world's largest water desalting as by the help of the Guangdong

plant and building two ingenious storage reservoirs (Kwangtung) water authorities.

When the Hong Kong Government completed its two major post-war reservoirs, Tai Lam Chung on the mainland of the New Territories, and Shek Pik on the island of Lantau, there were no other natural valleys which could be earmarked for storage of water. Con- sultants and engineers at the PWD turned their attention to the coastal areas and picked two locations for development. One was Plover Cove in Tolo Harbour, which was blocked- off, drained, plugged and refilled with rain water from the nearby Pat Sin mountain range. The other was an even more imaginative project. On Hong Kong's northwest coast is the precipitous High Island, separated from the mainland by a narrow strait. By throwing out walls linking the steep-sided island to the equally steep-sided mainland, the engineers created a major storage area.

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But even these efforts to assuage Hong Kong's ever-increasing thirst would have been inadequate without the help of the Guangdong water authorities which are now supplying more than a third of our total consumption with a willingness to supply more as their own capabilities permit and as Hong Kong's needs grow. Hong Kong has in turn provided advance payment for future water supplies in order to help finance the massive investment in new pumping facilities which will be needed in Guangdong.

Equally serious difficulties confronted Hong Kong in the realm of traffic and public transport and a major road-building programme was launched involving the construction of flyovers, double-deck highways and tunnels. And though this added several kilometres of road and led to the construction by the private sector of the widely-appreciated and well-used tunnel across the harbour, the growth of traffic largely negated the improvements. At the end of the decade, road congestion, particularly at rush hours, was more serious than at any time in Hong Kong's history. There are now an estimated 230 vehicles for every kilometre of road - a figure exceeded only by the principality of Monaco.

In a major effort to resolve this problem as much for individual convenience as for economic necessity - the government decided early in the 1970s to go in for a mass transit rail system and, in 1975, set up an independent corporation to build and operate a 15- kilometre system which came fully into operation early in 1980. Because it operates under- ground and overhead, along Hong Kong's and Kowloon's most heavily populated areas, it offers an alternative public transport system to buses and trams and to that extent serves to reduce pressure on the roads, though so far there is little evidence of it. The modified initial system of the Mass Transit Railway is, however, being extended (initially to Tsuen Wan in 1982, and along the northern shore of Hong Kong Island by the end of 1986), while at the same time the government and the public transport companies are working to im- prove the movement of buses, trams and ferries to cope with demand for faster and more efficient services. Substantial orders for new buses have been placed by all three private enterprise bus companies, higher fares are in the offing (as much because of higher oil prices as to finance the new bus fleets), and there are to be increasing restrictions on private motorists and other road-users. At the same time, the road network in the New Territories, in the urban areas of Kowloon and along the waterfront of Hong Kong Island is to be

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extended, and the Hong Kong section of the Kowloon-Canton Railway is being modernised with double-tracking (for its entire length) and electrification, which will result in a much faster and better service between Kowloon and Sha Tin, Tai Po and Lo Wu.

     Congestion is, of course, at the root of most of Hong Kong's problems. Land is the most basic need. The unforeseeable and dramatic impact of China's 'four modernisations' policy, the resulting influx of overseas businesses into Hong Kong, and the upsurge in the rate of immigration, combined to put extreme pressure on residential and commercial premises. Thus, there has been growing dissatisfaction at the rate at which new areas have been brought on to the market and into use; equally disturbing have been the spiralling prices and rents. The government has long been opposed to rent controls though, because of the way in which domestic rents were soaring, restrictions (allowing 21 per cent increases for two years) were extended for a further two years to give the government time to revise the out-dated Landlord and Tenant Ordinance. The course preferred by both the govern- ment and the land developers, however, is to speed up land production and supply, and the government has appointed a high-level committee under the chairmanship of an Unofficial Member of the Legislative Council to try and achieve a breakthrough.

New Townships

Long ago it was realised that the old urban areas were incapable of further expansion and the government earmarked several sites in the New Territories for the building of new townships and industrial estates. The new towns are already rapidly becoming handsome and well-planned new cities, as the visitor to Tuen Mun (nestling below Castle Peak) and Sha Tin, will discover. And when these, and areas such as Yuen Long, Tai Po and Fanling (the so-called market towns) are in turn converted into small cities, the government will be focusing its attention on areas like Junk Bay and the north coast of Lantau, which have been recent subjects for commissioned studies. These new towns will be fully inte- grated and though linked by road or rail with Kowloon, will be independent of it for the most part. They will contain their own road and transport systems, housing estates, shopping centres, offices, cinemas and all government services, as well as factory space for industries prepared to break away from the old and increasingly costly and congested urban areas of Tsuen Wan and Kwun Tong.

     It is also important to note here that, while the government has given industry a free rein to develop, it has become obvious over the years that controls and regulations are needed for the protection of those who work in factories. The old sweatshop image of Hong Kong has changed for the better and, increasingly, factories offer their workers a clean atmosphere, good conditions, reasonable hours and fair pay. There are still many however which do not, and while the whiplash of economic recovery in 1976 has worked a striking improvement in wages (over 25 per cent in real terms in mid-1980), Hong Kong has taken steps to improve conditions for women and young people, to introduce benefits for long-service workers, improve safety, health and welfare, lay down statutory periods for leave and holidays and set up tribunals to adjudicate on conditions and wages.

     It was the proud claim of the Labour Department towards the end of the decade that it had introduced more than 150 items of legislation. Perhaps the most noteworthy was that which provided not only one rest day a week and statutory paid holidays (particularly at the major festivals), but also seven days' paid annual leave. While Hong Kong still falls short of the benefits enjoyed by workers in Europe and America, it ranks as one of the most advanced nations in Asia. And moreover, Hong Kong has largely avoided the infection

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of labour disputes that have ravaged the industrial countries of the West, though this could change if employers misread the growing recognition by workers of their rights and their demands for a fairer share of the wealth that their labours have generated.

Pitfalls of Prosperity

By any standard, Hong Kong ranks with the major cities of the world in terms of prosperity and affluence - as its spectacular skyline and busy harbour clearly show - though the con- trasts of life persist and are evident to every visitor. Affluence has brought in its wake an increasing concern over what is thought by some to be a peculiarly oriental custom but is, in fact, universal. 'Tea money' is as old an institution as Hong Kong itself, and among the crimes which flourished during the boom years of the early 1970s was not individual but institutional bribery, better known in Hong Kong as syndicated corruption. In this enter- prise, whole gangs were 'on the take' in a highly organised money-collecting racket. And it was evident to all, after a detailed official investigation into the affairs of a corrupt police officer who fled from Hong Kong to avoid arrest, that the problem had reached a stage calling for drastic remedies.

Hong Kong had long questioned whether the investigation of bribery should remain a police or indeed a government function, and the recommendation of the Commission of Inquiry was that a separate and independent body should be set up. This was in keeping with the clear wish of the people to pursue a clean and open administration, coupled with a change in the old ways of doing business.

Under the capable leadership of an experienced civil servant, the Independent Commis- sion Against Corruption was set up in 1974 and shortly after, it launched a three-pronged drive aimed not just at prosecution but prevention of corruption, and community relations. Its success was such that within a few years it was able to announce that the most blatant forms of syndicated corruption had been purged from the police force and government. The success of the ICAC was not by any means an uncontested victory and Hong Kong experienced in 1977, a backlash demonstration by a group of disgruntled policemen which created widespread shock waves throughout the territory. A portion of this group descended on the headquarters of the commission and assaulted some members of the staff. Shortly after, rank and file members of the force sought a representative voice by applying for and obtaining permission to create a Junior Police Officers Association.

This was an agonising time for Hong Kong, with some arguing that the ICAC had con- centrated too much of its effort against the police force, and others, that the commission had rightly acted on the basis of reports made to it by the public. The declaration of an amnesty by the Governor for offences committed before 1977 drew a mixed reaction from the public and the police force; and though disputed by sections of the media, the announce- ment temporarily averted a crisis. It also gave time for the public to declare its support for the government on condition that no further concessions were made and that investiga- tions of current cases of corruption would continue. The incident, though potentially serious and damaging to local confidence, prompted critical examination of the police force. For it was apparent that while the direct causes of the dispute were to be found in the measures to clean-up corruption, the force itself was in need of change following the rapid build-up of its strength to 20,000 men and women during the crime-racked days of the mid- 1970s. This in turn was the consequence of the massive rise in prosperity in the early years of the decade, followed by the hard times of the mid-1970s.

A team of leading British police officers visited Hong Kong in the aftermath of these events to help senior officers of the Royal Hong Kong Police Force to undertake a thorough

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examination of the force structure to see how it could be strengthened and improved. From this came a realisation that administration and welfare, among other things, had been neglected during the years of expansion. More recreation facilities, better housing and a need to increase the integration of policemen with the public, were other points stressed. Overall, Hong Kong's policemen take on a major responsibility in acting as the grass- roots contact between authority and the public, and it is the way that individual policemen exercise that authority that does much to influence public attitudes, not just to law and order, but to administration generally. The stress being placed, therefore, on developing a more educated, better-paid and more highly motivated force, equipped with modern communica- tions to bring a swift response to public need, is now well understood. This is the direction in which the force is moving, and at the end of the decade, relations between the police and the public had significantly improved and a greater degree of co-operation with the ICAC had replaced the earlier feelings of enmity and suspicion. Notable also was the welcome ability of the force to investigate public complaints against its own officers.

      Swift action by the police against criminal gangs has paid dividends and a reduction of some of the most heinous offences was noted. However, at the end of the decade there was still a worrying level of robberies with violence, big cash crimes, gang rape, kidnapping and, following the soaring of the gold price in the final years of the 1970s, a concentration by criminals on the traditionally open and unprotected gold and jewellery shops. Together with banks, these suffered repeated robberies.

If Hong Kong's crime-fighters scored impressively in any one particular direction, however, it was against drug-runners and the drug syndicates. In 1974, the police and the Customs and Excise Service notched up an impressive victory against drug smugglers and by year-end had hammered the major gangs into submission, not only in Hong Kong but those operating between Thailand and Hong Kong as well. This concentrated campaign resulted in the arrest of a number of the 'Mr Bigs' who had controlled the trade and reaped fortunes from it - though some, while out on bail, subsequently took flight to Taiwan. The result of these successes was a growing shortage of drugs on the market, forcing up prices to prohibitive levels and causing a serious crisis among drug-dependent people. The govern- ment had co-ordinated the attack on smugglers with a major drug substitution programme based on methadone, and in the years ahead impressive gains were made. Under a Commis- sioner for Narcotics appointed in 1972 (the first since China's appointment of Com- missioner Lin Tse-hsu in 1839) and with an expenditure of $200 million a year, the tide in the war against narcotics began to turn. Work by the Prisons Department, the Society for the Aid and Rehabilitation of Drug Abusers, the Action Committee Against Narcotics and others, resulted in a sharp fall in the numbers dependent on drugs - perhaps by as much as 60 per cent while the prisons population (once largely drug addicted or drug motivated) had fallen by 52 per cent; those charged with drug offences were down by 42 per cent.

      If the war against drugs is far from over, the achievements in the past decade give hope that it may be brought under control in the years to come, and the incidence of addiction reduced to insignificant proportions, though the methadone maintenance clinics will be with us for many years, until a new generation can be educated to avoid the insidious attraction.

      The successes Hong Kong has chalked-up against narcotics, once considered an in- soluble problem, is perhaps yet another indication of the widespread recognition of, and demand for, a higher quality of life. Having stoically endured the hard, grinding years of the early 1950s and 1960s, a more prosperous community today sets its sights on new and

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Top: In one of the greatest social achievements in Hong Kong's history, thousands of people ure moving each month to new homes in the New Territories where six self-contained new towns, such as Tuen Mun, are being built. Above: High Island Reservoir won from the sea and opened in November, 1978.

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Top: Disaster struck on August 17, 1971, amid the 150-knot fury of Typhoon Rose. More than 100 people were killed, hundreds injured and thousands made homeless. Twenty-six ocean-going ships sank or went aground. Above: The Seawise University, formerly the Queen Elizabeth, was engulfed by fire on January 9, 1972, and sunk in the harbour

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Top: Memories of the devastating rainstorms of June, 1972, are still vividly recalled. A week of torrential rain caused widespread landslips, serious traffic disruption and two major landslides; 71 people were killed at Sau Mau Ping and 67 in the Mid-levels of Hong Kong Island. Above: Vietnamese refugees arriving by the tens of thousands in unseaworthy boats - a sight that became all too familiar in the year 1979.

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Top: An exciting blend of cultural activities has made the annual Hong Kong Arts Festival one of the leading festivals of its kind in the world. Above: In a major programme to preserve the most beautiful tracts of countryside, almost 40 per cent of Hong Kong's land area has been designated as country parks since 1976.

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      different goals. The advent of more leisure, the need for wider interests and more recreation, the promotion of sport, the enjoyment of music, drama, dance and art, and the urge to travel abroad have all followed in the wake of growing prosperity - a prosperity that stems not from a one-track economy but one that is today drawing strongly from a variety of activities and services.

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       The growth of two-way tourism, the hotel trade, the banking and computer industries, the retail trade, containerisation (which has made us the third largest and the world's fastest container port) have all served to broaden the base of the economy and to spread the load of Hong Kong's prosperity. And, in turn, this has made new demands for the train- ing of skilled men and women to serve these various industries. Diversification somewhat hackneyed catch-cry over the years, aimed at breaking the textile monopoly and the concentration of exports to the United States market has come to assume a far greater significance, applying to all facets of the economy. A report published in 1979 by a high-level committee headed by the Financial Secretary, explored the subject in depth and its many conclusions pointed to what could in the years ahead lead to widespread benefits in many different sectors of the economy.

Closing the Door on Illegals

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In the closing years of the 1970s, Hong Kong's population passed the five million mark, largely due to the intake of half a million legal and illegal immigrants (mainly from Guangdong province) since 1976.

       In October, 1980, the government took a major policy decision by deciding to end the so-called 'reached base' policy under which illegal immigrants who succeeded in being reunited with relatives in Hong Kong, were allowed to remain and claim an identity card. This widely-criticised policy survived for a number of years because of the government's reluctance to permit a sub-stratum of people living outside the law who could be exploited by employers and blackmailed by unscrupulous people. But in the end, as the Governor himself admitted on his return from talks in Guangzhou, even the Chinese authorities accused Hong Kong of applying a policy which 'positively welcomed illegal immigrants'. It was a decision therefore welcomed by the Chinese who revealed that some communes had had their workforce reduced to 30 per cent by the mass exodus which at its height involved about 3,500 people a day, with about one-fifth of that number entering Hong Kong. The change of policy, requiring all Hong Kong people to carry identification at all times in all parts of the territory, caused an immediate sharp fall in the numbers of illegal immi- grants trying to enter. But it is too early to judge the long-term effects, and it would be none too surprising to see the figures increasing in 1981, so desperate are many in China to try and reach Hong Kong. The possibility that Hong Kong might one day have to cope with a population of 12 million is a recognition that immigration can, at best, be controlled but never stopped.

       Only slightly less daunting was the influx of more than 90,000 refugees from Vietnam since 1975. While more than two-thirds have been found new homes abroad, Hong Kong is still caring for more than 24,000 who may prove to be an indigestable remnant, for Hong Kong lacks the political clout of the ASEAN countries whose off-take of refugees has been higher in recent years. And while Hong Kong is grateful for the response of countries like the United States, Canada, Britain, Australia, France and Germany, there were signs at the year's end that some of the quotas, once filled, will not be renewed. Hong Kong has no option but to keep reminding the world that the refugees are an international problem and that its generous and humane treatment is not to be construed as a permanent commit-

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ment to adopt these people. There are already an estimated 750,000 people squatting in various parts of Hong Kong Island, Kowloon and the New Territories and several hundred thousand are still waiting in the queue for better public housing. In a city full to bursting, the refugees from Vietnam will remain a burden until the last one is cleared.

The massive influx of people, however, highlights a conundrum for Hong Kong. For while it is creating a severe problem at the human level, and tending to dilute the earning power of the Hong Kong worker by lowering wage levels, the same liberal policies which give rise to it have also added a significant new dimension to Hong Kong's economy. The China dimension is itself multi-faceted and both invites investment from Hong Kong and channels investment to it. Major property acquisitions by Chinese mainland groups have brought widespread benefits to Hong Kong. New rail and transport links have been forged, new co-operative agreements established, new trade developed and new initiatives in ship maintenance, containerisation, exports and re-exports and real estate development hold great hopes for the future.

Hong Kong's relations with Guangdong have never been better and if the more distant future still appears obscure and clouded, the strides made and the new developments noted in such diverse fields as water supply, electricity generation and distribution, trade and transport, give hope that in time the more fundamental question of the status of the New Territories will be positively resolved in the interests of Guangdong and China, as much as of Hong Kong itself. In the meantime, Hong Kong's economy could be further diversified by the servicing of China's off-shore oil industry, with wells reported in the neigh- bouring Pearl River estuary, and by the building of an oil refinery, once considered in the early 1970s before the international oil crisis. It is difficult therefore to be gloomy about the short-term future.

Choosing the Road Ahead

It would be all too easy to put Hong Kong's many successes in the past decade down to good luck - though certainly it has had that in abundance. The change in circumstances in China is clearly a consequence of policies shaped and decisions taken far from our borders, though it is fair to suggest that the lessons of Hong Kong's prosperity did not pass unnoticed in Peking. Great credit must be given to the people of Hong Kong whose labour and exertions have earned them increasing wealth and an improved way of life. But together with a higher quality of life comes the need for a better quality of leadership and a more responsive administration.

      The 1970s have been dubbed the MacLehose years; the experience that a new-style Governor brought from a lifetime spent in diplomacy, including several years in China and as Political Adviser in Hong Kong, and at Westminster, stood him in good stead. Sir Murray has received able and dedicated support from his colleagues in the government, especially valuable being the guidance of the economy by the Financial Secretary. A hard-working team of Unofficials in the Legislative Council has complemented a generally strong administration.

      There is no mystery about the Hong Kong system, based as it is on giving as free a play as possible to market forces, and non-intervention. The government has attempted over the years to foster change only where it is evidently needed. The experiments with the 'Fight Crime' and 'Clean Hong Kong' campaigns which in turn gave rise to increased public participation at the community level, has in recent times focused on the need to reorganise district administration. And at the year's end, a White Paper outlining changes in a system of elected district boards was in the offing.

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There is little doubt that while Hong Kong will remain a territory with a definite ceiling on constitutional progress, the horizons on the social and economic level are boundless. It is a truism that local people, though the children of a political eunuch, enjoy more real freedom than many of their Commonwealth counterparts. Certainly, at the end of the 1970s Hong Kong people were better off than millions of people in the region and, next to Japan, could claim one of the highest standards of living, with a gross domestic product per head of more than $15,000.

With exports 37 per cent up in 1979 at $55.9 billion, re-exports racing ahead by 51 per cent to $20 billion, and imports rising by 36 per cent to $85.8 billion, Hong Kong has high hopes for the future that its strong and continually diversifying economy will sustain an adequate growth rate. The tertiary sector and China provide able support for our still expanding secondary industries which in the future we aim to make more capital, rather than labour, intensive. Moreover, just as Hong Kong has established firm links with China, it will continue to develop its connections and business links with the region - reckoned by many to be the major growth area of the next decade.

       The 1980s promise, however, to be years when fine-tuning will be the order of the day for the government. Lest constitutional sterility breeds complacency, it is essential for the administration to be aware, to respond and, inevitably, to act decisively. And this will in turn call for all the powers and patience of a government that, if not representative should at least be fully responsive and accountable. A need to know more about the lives and longings of the people is the first duty of every government and the balance that Hong Kong has to strike is between its desire to give the economy as free a rein as possible and the public requirement for justice, fair play and responsible administration.

The increasing links that are about to be forged by the government with the people, at the district level, give hope that these will strengthen a two-way communication process that will be mutually productive and fulfilling.

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Industry and Trade

DESPITE the recessionary economic climate prevailing in some of Hong Kong's major markets, the manufacturing industry - which is heavily dependent on exports - in general performed well during the year and achieved a high overall rate of growth.

      The value of domestic exports in 1980 amounted to $68,171 million than in 1979.

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The major factors that have given Hong Kong its international reputation as a leading manufacturing and commercial centre over the years contributed to this outcome. Among them are the consistent economic policies of free enterprise and free trade; an industrious workforce; a sophisticated commercial and industrial infrastructure; a modern and efficient seaport that includes one of the world's largest container terminals; a centrally-located air- port 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, methylalcohol and some hydrocarbon oils. Tax also is payable on first registration of motor vehicles, except franchised buses.

      Apart from ensuring the provision of the infrastructure - either through direct services or by co-operation with privately-owned 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 inter- ference. The government normally intervenes only in response to the pressure of economic and social needs. It neither subsidises the export of manufactures, nor protects the domestic market for them.

Industrial Development and Industrial Land

     Light manufacturing industries, producing mainly consumer goods, continue to predomi- nate in Hong Kong. About 67 per cent of the total industrial workforce is employed in the textiles, clothing, electronics, plastic products, toys, and watches and clocks industries. These industries together accounted for 72 per cent of Hong Kong's total domestic exports. They have, over the years, been steadily introducing modern technology into their manufac- turing processes as indicated, for example, by the growth in production of electronic toys and watches.

At the same time non-consumer electronics, which require relatively higher levels of technology, are gaining rapidly in significance. In 1980, exports of non-consumer electronic products were valued at $3,310 million, representing 40 per cent of total electronics exports. The first two stages of the Tai Po Industrial Estate now provide 45 hectares of land for allocation to industries with a relatively high level of technology which cannot operate in the normal multi-storey factories which house the bulk of Hong Kong industry. A third stage of development is proposed, involving the reclamation of a further 20 hectares of

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land. By the end of the year, 163 applications had been received and sites had been offered to 27 companies. A second industrial estate, which is under construction at Yuen Long, will provide a further 72 hectares of land. This estate is scheduled for completion in 1982, although sites will become available well before then. Both industrial estates are managed by the Hong Kong Industrial Estates Corporation which is an independent statutory body, established in March, 1977.

To assist industrialists who wish to start manufacturing immediately, the Hong Kong Industrial Estates Corporation has decided to build a four-storey standard factory block. with units constructed with maximum flexibility to suit the varied requirements of potential occupiers.

Outside the industrial estates, 42 sites were sold for industrial use. These had an overall area of 147,711 square metres and special development conditions were attached to 14 of them. The conditions called for the provision of heavy loading capacities and high ceilings on some floors to accommodate certain types of 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 industries.

The government also proceeded with the construction of flatted factories to accommodate, in permanent buildings, squatter workshops and small operators cleared for public purposes. One of these factory blocks was completed in 1980, and another is scheduled for comple- tion in 1981.

Advisory Committee on Diversification

      During 1980, steps were taken to implement the series of recommendations contained in the report (completed at the end of 1979) by the Advisory Committee on Diversification, which was appointed by the Governor to advise on 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 ones.

In the area of industrial development, the advisory committee recommended that the government should seek to improve the provision of industrial support facilities and tech- nical back-up services for manufacturing industries, and establish an Industrial Develop- ment Board to plan, monitor and advise on the provision of such services. Recommenda- tions on improving and expanding government resources on industrial investment promotion. were accepted by the Governor in Council. In line with these recommendations an Industrial Promotion Committee, chaired by the Commissioner of Industry, was set up to plan and co-ordinate promotional activities. Plans were also made to set up overseas industrial pro- motion offices of the Trade Industry and Customs Department in Europe, Japan and the United States.

Industrial Investment Promotion

The Trade Industry and Customs Department continued to work closely with leading trade and industrial organisations in the promotion of industrial investment in Hong Kong. Major activities in 1980 included a series of industrial investment promotion missions to Australia, Britain, the Federal Republic of Germany, France, Italy, Japan, Sweden and the United States. These missions were combined, where appropriate, with visits to or participa- tion in trade, industrial and technology exchange fairs.

Although most industrial enterprises are Hong Kong-financed and managed, at the end of the year there were at least 460 factories either fully or partly-owned by overseas interests - 7.7 per cent more than in 1979. These factories employed 87,000 workers or 10 per cent

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     of the total workforce 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.

The Hong Kong/Japan Business Co-operation Committee continued to work closely with its counterpart in Japan in fostering friendship and understanding between the business communities of Hong Kong and Japan, and in the promotion of trade, industrial invest- ment and other economic co-operation. Working through their three respective working committees on Trade Development, Industrial Development and Communications, the committees organised two industrial investment study missions and one trade mission from Japan, as well as displays of Hong Kong products and trade and industrial investment semi- nars featuring prominent speakers from Hong Kong - in several cities in Japan.

      The Hong Kong Committee and Japan Committee held their third joint meeting in May, in Hong Kong, to review the work of their working committees and to draw up plans for future activities.

Textiles and Clothing

The textiles and clothing industries are Hong Kong's largest, together employing about 41 per cent of the total industrial workforce and producing some 41 per cent by value of total domestic exports. The spinning and weaving sectors experienced adverse conditions in the second half of 1980, due to strong competition and the fluctuating price of raw cotton. Export earnings by the clothing sector improved over 1979, 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 1980 were valued at $27,793 million, compared with $24,196 million in 1979.

      The output of cotton yarn was 166 million kilograms in 1980, compared with 185 million kilograms in 1979. Production of man-made fibre yarn and cotton/man-made fibre blended yarn was 46 million kilograms in 1980, compared with 47 million kilograms in 1979; and production of woollen and worsted yarn was 4.7 million kilograms, compared with 4.3 million kilograms the previous year. Most of the yarn produced was used locally.

The weaving sector, with 28,784 looms, produced 748 million square metres of woven fabrics of various fibres and blends, compared with 843 million square metres in 1979. The bulk of the production - 87 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 12 million kilograms of knitted fabrics - of which 23 per cent was of man-made fibres or blended cotton/man-made fibres, and 76 per cent was of cotton - compared with 10 million kilograms in 1979. In addition, a large quantity of knitted fabric of all fibres was used by local clothing manufacturers.

      The finishing sector of the industry provides sophisticated support facilities to the spin- ning, 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 274,950 workers or about 31 per cent of the total industrial workforce. Domestic exports of clothing in 1980 were valued at $23,258 million, compared with $20,131 million in 1979.

INDUSTRY AND TRADE

Other Light Industries

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The electronics industry maintained its position as the second largest export-earner among Hong Kong's manufacturing industries. Domestic exports of electronic products in 1980 were valued at $8,306 million, compared with $6,582 million in 1979. The industry comprises 1,197 factories employing 88,883 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 spreading application of electronics technology.

The plastics industry fared well in 1980. Domestic exports during the year were valued at $5,397 million, compared with $4,808 million in 1979. The industry has 4,816 factories and 86,314 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 1980, particularly in the electronic watches sector. Domestic exports during the year were valued at $6,576 million, compared with $4,623 million in 1979. The industry has 1,054 factories employing 40,628 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, appa- ratus 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 1.48 million 20-foot containers in 1980, 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 main- tenance, 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 9,070-gram capacity for the plastics industry; power presses; lathes; shapers and drilling machines; polishing machines; printing presses; textile knitting and warping machines; and electro- plating equipment.

External Trade

Total merchandise trade in 1980 amounted to $209,893 million, an increase of 30 per cent over 1979. Imports went up by 30 per cent to $111,651 million; domestic exports by 22 per cent to $68,171 million and re-exports by 50 per cent to $30,072 million. Domestic exports and re-exports together, valued at $98,242 million, registered an increase of 29 per cent.

Appendices 3 and 4 provide summary statistics of external trade, including a breakdown by country and commodity and comparisons with previous years.

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INDUSTRY AND TRADE

      Hong Kong is almost entirely dependent on imported resources to meet the needs of its 5.1 million people and the requirements of its diverse industries. In 1980, imports of raw materials and semi-manufactured goods totalled $46,489 million, representing 42 per cent of the year's total imports. The principal items imported were fabrics of man-made fibres ($4,430 million), plastic moulding materials ($2,605 million), watch and clock movements, cases and parts ($3,688 million), iron and steel ($3,426 million), woven cotton fabrics ($2,641 million), and transistors, diodes and semi-conductor integrated circuits ($1,927 million).

      Imports of consumer goods, valued at $29,469 million, constituted 26 per cent of total imports. Local demand remained strong for diamonds ($4,178 million), clothing ($3,461 million), radios, television sets, gramophones, records and tape recorders ($2,744 million), watches ($2,137 million), jade and precious stones, ivory, jewellery, and goldsmiths' and silversmiths' wares ($1,502 million).

Imports of capital goods totalled $16,055 million, representing 14 per cent of total imports. Imported capital goods consisted mainly of items such as electronic components and parts for machines ($2,823 million), transport equipment ($3,079 million), electrical machinery ($1,669 million), textile machinery ($765 million), miscellaneous industrial machinery ($788 million) and office machines ($731 million).

Imports of foodstuffs amounted to $12,065 million, or 11 per cent of total imports. The principal imported food items were fish and fish preparations ($1,750 million), fruit ($1,614 million), meat and meat preparations ($1,475 million), swine ($1,170 million) and vegetables ($1,231 million). Imports of mineral fuels, lubricants and related materials were valued at $7,573 million, representing seven per cent of total imports.

Japan continued to be the principal supplier of imports in 1980, providing 23 per cent of the total. China was the second major supplying source, accounting for 20 per cent of total imports and 47 per cent of all imported food and live animals. The United States contributed another 12 per cent of total imports. Other important sources included Taiwan, Singapore, Britain, South Korea, the Federal Republic of Germany and Switzerland.

Domestic exports consisted almost entirely of manufactured goods. Clothing, valued at $23,258 million, remained the largest sector although its share of the total domestic exports further dropped to 34 per cent from last year's 36 per cent. Sales of miscellaneous manu- factured articles, consisting mainly of plastic toys and dolls, jewellery and goldsmiths' and silversmiths' wares, and plastic flowers, were valued at $11,020 million, representing 16 per cent of total domestic exports. Photographic apparatus, equipment and supplies, optical goods, watches and clocks were valued at $7,119 million, contributing an additional 10 per cent to the total. Domestic exports of telecommunications and sound recording and reproducing apparatus and equipment, at $5,030 million, made up a further seven per cent of the total. Other important exports included textiles, electrical and non-electrical house- hold-type equipment, diodes, transistors and similar semi-conductor devices, electronic microcircuits, office machines, metal products and travel goods.

      The direction and level of Hong Kong's export trade are both largely influenced by econo- mic conditions and commercial policies in the territory's major overseas markets. In 1980, 62 per cent of all domestic exports went to the United States and the European Economic Community (EEC). The United States alone absorbed 33 per cent. The Federal Republic of Germany and Britain, Hong Kong's second and third largest overseas markets, absorbed 11 per cent and 10 per cent, respectively. Domestic exports to China rose rapidly during the year, amounting to $1,605 million or two per cent of the total. Other important markets were Japan, Australia, Singapore, the Netherlands and Canada. Exports to members of the organisation of Petroleum Exporting Countries (OPEC) continued to grow in 1980.

INDUSTRY AND TRADE

21

       Re-exports increased substantially during 1980, accounting for 31 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, precious and semi-precious stones; electrical machinery, apparatus and appliances; watches and clocks; and clothing. The main countries of origin of these re-exports were China, Japan and the United States. The largest re-export market was China, followed by the United States, Indonesia, Singapore, Taiwan and Japan.

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 were negotiated under the Arrangement Regarding International Trade in Textiles, commonly known as the Multi-Fibre Arrange- ment (MFA). A feature of the MFA is the Textiles Surveillance Body (TSB) which super- vises its implementation. In 1980, a Hong Kong representative sat on the TSB as an alternate member to the representative of the Republic of Korea.

As a result of negotiations under the MFA, bilateral agreements were concluded during the year with Finland and Switzerland, while the agreements concluded with Austria and Sweden in 1979 will remain effective until January, 1981, and March, 1981, respectively. Under the terms of these agreements, exports of certain textiles from Hong Kong to these countries were placed under restraint or surveillance.

The current bilateral agreement with the European Economic Community has a duration of five years from January, 1978, and covers all of Hong Kongs' exports of cotton, man- made fibre and wool textiles to the EEC. Exports in 49 categories of textile products are under specific restraint, while exports in the remaining categories are subject to the Export Authorisation Scheme operated by the Trade Industry and Customs Department.

Protracted textile consultations held with the United States during the second half of 1979, were finally concluded in January, 1980. As a result of these consultations, Hong Kong conceded that in 1980 it would limit utilisation of swing for certain cotton and man-made fibre apparel product categories, and that it would not use the carryover and carryforward provisions of the agreement on these categories.

The Hong Kong/United States administrative arrangement on trade in certain non- rubber footwear came into effect in October, 1978, and was continued into 1980. Hong Kong has declined to consider specific mechanisms to limit the volume of its exports of non- rubber footwear to the United States, but has agreed instead to institute a certification of origin system.

The current bilateral textile agreement with Canada has a duration of three years from January, 1979, and covers most of Hong Kong's exports of cotton, man-made fibres and wool textiles to Canada. Exports in 26 categories of textile products are under specific restraint, while exports in a few remaining categories are subject to the Export Authori- sation System operated by the Trade Industry and Customs Department.

Norway's action against imports of various textile items, which was introduced on January 1, 1979, under Article XIX of the GATT, remained in force during the year. The action was in the form of global import quotas but it had a discriminatory effect against Hong Kong. Following a complaint made by Hong Kong to the GATT Council in July,

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1979, a GATT Panel was established to investigate Norway's action. In its report submitted to the GATT Council in March, 1980, the panel concluded, among other things, that Norway had failed to make its action consistent with Article XIII of the GATT by not allo- cating to Hong Kong an appropriate share of the so-called global quotas, such a measure constituting, prima facie, a case of nullification or impairment of Hong Kong's rights under the GATT. The report was adopted in principle by the GATT Council in June, 1980, and, at the latter's instigation, a meeting between representatives of Hong Kong and Norway was arranged in Geneva in July, 1980, through the offices of the Director-General of the GATT. This was subsequently followed by consultations between the two governments with a view to reaching a mutually satisfactory solution. These consultations failed to resolve the issue because the Norwegian Government decided, in the final round, to terminate them and, instead of seeking a bilateral solution, to continue its unilateral import action. The Tokyo Round of Multilateral Trade Negotiations (MTN), which was launched in 1973 with the object of further liberalising world trade by removing or reducing tariff and non-tariff barriers, was concluded in 1979. Over 30 countries agreed to reduce their tariffs by about one-third over a period of seven years commencing in 1980. These reductions are made on a most-favoured-nation basis and automatically apply to Hong Kong. The MTN also resulted in a number of agreements on various non-tariff measures, and on improving some provisions of the GATT. Hong Kong accepted six of the agreements concluded in the MTN. These are: the Agreement on Implementation of Article VI of the GATT (Revised Anti-dumping Code); Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the GATT (Code on Subsidies and Countervailing Duties); Agreement on Technical Barrier to Trade (Standards Code); Agreement on Import Licensing Proce- dures; Agreement on Implementation of Article VII of the GATT (Customs Valuation Code) and the Agreement on Government Procurement. The first four of these came into force on January 1, 1980, and the last two will become effective on January 1, 1981.

The MFA is due to expire at the end of 1981 and a major review of its operation was conducted in October, 1980. Parties to the arrangement also considered whether the MFA should be extended, modified or discontinued. No decision emerged and consideration of the future of the MFA will continue in 1981. Hong Kong participated fully in these discussions.

      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), and some products from Hong Kong are excluded from the schemes operated by the EEC, Japan, Switzerland, Australia and Austria. Such differences in treatment is the subject of continuing official exchanges. Hong Kong has consistently made it clear to the countries concerned that it seeks no special advantages under these schemes; it only wants treatment similar to that accorded to close competitors.

Documentation of Imports and Exports

Import and export licensing formalities are kept to a minimum in line with Hong Kong's international obligations. The most complex 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.

INDUSTRY AND TRADE

23

       On August 1, 1980, all textile imports were made subject to an automatic licensing system. The main purpose of the system is to monitor the flow of textiles into Hong Kong to help identify possible instances of circumvention of the textiles export control system.

       After the completion of the computerisation of the system controlling textile exports to the United States of America in August, 1979, work commenced in early 1980 on the computerisation of the system controlling textile exports to the EEC.

In line with action taken in the United Kingdom and other member states of the European Economic Community, the government announced (on June 4, 1980) the imposition of economic sanctions against Iran. All exports to Iran are therefore subject to licensing control and, while those covering food and medical supplies are issued freely for humanitarian reasons, applications to export other products are not entertained unless the supply or sale of goods was made in pursuance of a contract made before May 30, 1980, or in pursuance of established business links.

       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 1980 was estimated at $18,093 million, of which $11,759 million was covered by government-issued certificates.

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       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. The five government-approved certifica- tion organisations have been approved to issue Form 'A' certificates for exports to Canada, Japan and Switzerland. The value of exports covered by Form 'A' certificates in 1980 amounted to $16,107 million.

Although Britain abolished Commonwealth preferential rates of duty from July 1, 1977, eight 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 1980 was $11 million.

-

An estimated 50.2 per cent of Hong Kong's domestic exports are covered by origin certi- ficates of one type or another - 40.7 per cent of them by government-issued certificates.

       During the year, representatives of the Trade Facilitation Committee a body set up to advise the Director of Trade Industry and Customs and industrial and trade organisations on standardising and simplifying trade documents and procedures - attended a series of international trade facilitation meetings in Europe. These provided opportunities for Hong Kong to learn from, and exchange views with, other bodies concerned with trade documentation and trade procedures. The committee also organised several seminars in Hong Kong to publicise and advocate the use of its aligned series of export document forms.

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INDUSTRY AND 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 malprac- tices 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 respon- sible for handling trade complaints, and plays an active role in the consumer protection field in conjunction with the Consumer Council.

       In 1980, the Trade Investigation Branch completed some 28,596 inspections of factories and consignments; 1,352 costing checks in connection with applications under the Generalised System of Preference schemes (Form 'A'); and 465 fullscale investigations relat- ing to infringements of legislation, including several into suspected substitution of foreign goods. In all, 437 companies and individuals were prosecuted, and fines amounting to $3.9 million were imposed by the courts.

       The branch also completed 19,348 inquiries and verifications relating to trade declarations and manifests, and conducted 2,414 associated investigations resulting in the collection of $1.6 million in ad valorem charges and administrative penalties.

       During 1980, close liaison between various units of the Trade Industry and Customs Department resulted in tight controls on textiles exported under quota arrangements. A major review of the Textiles Quota Control System was carried out and led to a modified system being introduced in July.

Protection of both consumers and traders under the appropriate industrial property legislation continued, and revised legislation aimed at strengthening the existing laws was put before the Legislative Council.

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 labour and those falling within the purview of the Industrial Development Board, the Director of Trade Industry and Customs takes advice from the Trade Advisory Board, the Industry Advisory Board and the Textile Advisory Board.

       The Trade Advisory Board comprises representatives of various sectors including com- merce, banking and insurance. The Industry Advisory Board, comprises representatives of manufacturing industries and banking appointed in their personal capacities, and chairmen of leading trade and industrial organisations, or their nominated representatives, serving ex-officio. These two boards replaced the Trade and Industry Advisory Board which ceased to exist on July 1, 1980. They usually meet once every two months.

       The Textiles Advisory Board, a more specialised body, is consulted on matters, other than labour matters, affecting the textiles and garment industries. It met on 33 occasions during 1980.

All three boards are served by specialist committees as the need arises.

The Trade Industry and Customs Department comprises three parts - the Department of Trade, headed by the Commissioner 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.

INDUSTRY AND TRADE

25

The department has three overseas offices in Brussels, Geneva and Washington - and is also represented in the Hong Kong Government Office in London. The overseas offices are almost entirely concerned with commercial relations work. They represent Hong Kong's interests on a day-to-day basis and provide information on international developments which may affect Hong Kong.

       The Commissioner of Trade is assisted by two deputy commissioners and five assistant commissioners. One deputy commissioner heads the EEC and Multilateral Group while the other heads the Rest of the World and Textile Systems Group.

       The EEC and Multilateral Group comprises two divisions, each headed by an assistant commissioner. One division is responsible for Hong Kong's external commercial relations and internal quota administration with the EEC and Greece, Portugal, Spain and Turkey -including the preparation for, and the conduct of, trade negotiations, and the collection and dissemination of information on trade policy measures taken by the countries concerned which may affect Hong Kong. The second division is responsible for Hong Kong's multi- lateral aspects of its external commercial relations and for gathering information and formulating policy recommendations on issues affecting Hong Kong and general commer- cial interests.

The Rest of the World and Textile Systems Group comprises three divisions, each headed by an assistant commissioner. One division is responsible for Hong Kong's external com- mercial relations and quota administration in respect of North America (USA and Canada); and a second division is responsible for the other regions (that is, other than the EEC and North America). The third division is responsible for overseeing the day-to-day operation of the Hong Kong Textile Export Quota System, the planning and implementation of the programme to computerise the textile controls system.

The Commissioner of Industry is assisted by a deputy commissioner, and two assistant commissioners who head the Industrial 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 in- frastructure and the health and safety standards set in Hong Kong's overseas markets. It also monitors the oil supply in Hong Kong.

       The division is being expanded and strengthened to enable it to discharge effectively the additional responsibilities arising from implementation of the recommendations of the Advisory Committee on Diversification in areas of industrial development. One of these recommendations is the establishment of an Industrial Development Board, under the chairmanship of the Financial Secretary, to co-ordinate the provision of existing and additional support facilities and technical back-up services for manufacturing industries. The board is serviced by a secretariat in the Department of Industry.

The Industrial Development Division promotes overseas investment in local industry by advising potential investors on Hong Kong's economy and infrastructure, and assisting them in the evaluation and establishment of manufacturing projects in Hong Kong. The division encourages industrial co-operation between Hong Kong and overseas manufac- turers, and liaises with leading trade and industrial organisations in Hong Kong in the promotion of industrial investment from overseas. It also advises the government on industrial land matters.

in its report to the Governor, the Advisory Committee on Diversification has recom- mended that the promotion of industrial investment should be better organised and pursued more actively than in the past. Specifically, the Trade Industry and Customs Department

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     should be given the responsibility of co-ordinating implementation of the industrial invest- ment promotion strategy developed on the advice of the Industry Advisory Board, and should continue to be responsible for dealing in Hong Kong with potential investors. To implement these recommendations, the Industrial Development Division is being expanded and strengthened. Overseas offices are being established in Europe, the United States of America and Japan, to enable greater promotional efforts to be made. Locally, a unit is being established to provide potential investors with information on statutory and other requirements for labour, environmental protection, safety and public health legislation, and on industrial accommodation, industrial support facilities, and technical back-up services.

      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.

The Customs and Excise Service is a disciplined force. Its 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 service. relies on the Government Laboratory to provide analytical and advisory services. Tobacco products, liquors, denatured spirits and treated diesel oils are regularly examined by the laboratory and a close watch is maintained for adulterated products, particularly liquors. The proposal to open a new brewery using a new brewing process culminated in the enactment of amending legislation in the course of the year.

      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 international trade with particular emphasis on Hong Kong's exports. Its chairman is appointed by the Governor, and the 17 members include representatives of major trade associations, leading businessmen and industrialists, and two senior government officials. The council is financed by: a grant from public funds; the net proceeds of an ad valorem levy on exports and on imports other than foodstuffs; and minor income from miscellaneous sources such as advertising fees and sales of publica- tions.

The staff of the council carried out an extensive trade promotion programme in 1980, organising around 60 major international projects. These included two economic missions to Europe (visiting London, Madrid, Barcelona, Bonn, Dusseldorf, Berlin, Vienna, Stock- holm, Oslo and Amsterdam); and another to the United States and Mexico. These missions.

INDUSTRY AND TRADE

27

were aimed at strengthening high-level contacts with senior government officials and business and industrial leaders of the host countries and developing trade promotional opportunities.

      Other promotional projects mounted during the year included a major fashion promotion at the IGEDO International Fashion Fair in Dusseldorf, and participation in many inter- national trade fairs around the world - notably, the Nuremberg International Toy Fair, Cologne International Houseware Fair, MACEF International Fair in Milan, Birmingham International Spring Fair, British Toy and Hobby Fair, Frankfurt Spring Fair, SPOGA International Trade Fair in Cologne, Chicago Consumer Electronics Show, New York Premium Show, New York International Fur Fair, Cairo International Trade Fair, Tokyo International Toy Fair and the Eastern-Stoff and Total Fashion Fair.

      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 also toured European countries and several African countries as well as the United States, Canada, Japan and Australia. Inward missions were also arranged for groups of business- men from Britain, France, Italy, Saudi Arabia and Panama.

In Hong Kong, the council organised the annual 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.

Besides its headquarters in Hong Kong, with a local branch office in Tsuen Wan, the council maintains overseas offices in 19 key commercial cities London, Manchester, Frankfurt, Hamburg, Paris, Marseilles, Stockholm, Zurich, Vienna, Milan, Amsterdam, New York, Chicago, Los Angeles, Dallas, Toronto, Panama City, Tokyo and Sydney. In addition to maintaining these offices, the council retains consultants in Dubai, the United Arab Emirates, Spain and Greece.

Hong Kong Export Credit Insurance Corporation

Whether to give credit in today's sometimes uncertain overseas markets can be a difficult decision for Hong Kong's exporters. However, a form of safeguard in Hong Kong is pro- vided by the Hong Kong Export Credit Insurance Corporation (ECIC).

      This government-owned organisation provides support and encouragement to Hong Kong's exporters by offering them protection against the risk of not being paid by their overseas clients for goods and services sold on credit.

      An exporter can face problems of non-payment because of either commercial, political or economic risks. Commercial risks cover such areas as an overseas client's inability or unwillingness to pay owing to insolvency, repudiation of the contract, or default. Political and economic risks include war, revolution, strikes, foreign exchange blockage and transfer delay, and cancellation 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

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     policyholders. Trading and financial records are kept of some 40,000 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 cor- poration 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 the cause of 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.

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 guarantees opera- tions. The statutory limit of this guarantee was raised from $2,000 million to $2,500 million in May, 1980. The corporation does not receive any subvention and operates on a break- even basis, taking one year's result with another. In its daily business activities, the corpora- tion resembles private enterprise and markets its services in a commercial manner.

The ECIC benefits from the guidance and advice provided by the 12 members of its advisory board. As a member in its own right of the leading trade and industrial associations in Hong Kong, the corporation remained in close contact during the year with the tough realities of the international marketplace.

      During the 1979-80 financial year, nearly $3.5 billion-worth of goods and services were insured by the ECIC against non-payment by customers overseas who receive credit terms from their Hong Kong suppliers. The corporation received a premium income of $16 million as a result of insured export shipments. It settled 74 claims and had to provide funds for another 81 cases of difficulties. Many of these problems were caused by political or economic events in African countries. Diversification obviously had its price, and the ECIC found it increasingly difficult in 1980 to achieve any surplus in operations.

At the beginning of the year, the ECIC embarked upon developing a computer-based administration. It looks after the interests of more than 1,100 exporters, insuring some 150,000 shipments of Hong Kong products a year to over 40,000 international clients.

Hong Kong Productivity Council and Centre

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The Hong Kong Productivity Council, a statutory organisation established in 1967, responsible for promoting the increased productivity of industry in Hong Kong. The council comprises a chairman and 20 members, all appointed by the Governor, representing management, labour, academic and professional interests, and government departments closely associated with productivity matters. It is financed by an annual government subvention and by fees earned from its services.

The executive arm of the council is the Hong Kong Productivity Centre which provides technology, industrial consultancy, computers, technical information, economic analyses, technology transfer and other industrial development services. It also conducts a wide range of training programmes in industrial technology, management techniques and electronic data processing.

The centre's facilities include eight classrooms, a low cost automation unit, an industrial chemistry laboratory, a metal finishing laboratory, electronic data processing facilities

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If ever a word was guaranteed to have a rivetting effect on conversation in Hong Kong, then surely the word is 'gold'. Almost everyone, it seems, takes a pas- sionate interest in the glittering metal. Its merits and price fluctuations are studied and endlessly debated in boardrooms, banks and teahouses until only one observation can really be made with any certainty: for investment, trade, or simply adornment, local people are particularly fond of acquiring it. The reasons are basically historical, though a large measure of being in the right place at the right time is there, too. For, combined with tradi- tional enthusiasm, Hong Kong's freedom from foreign exchange controls, excellent financial and communications services, and fortuitous position on the global time grid have made it the world's largest gold trading centre after London and Zurich. Overseas gold dealers, producers and in- vestors use the Hong Kong market to hedge, arbitrage and trade because it is open when other major markets are closed. As the day progresses, the mid-morning price 'fixing in Hong Kong, by the 70- year-old Chinese Gold and Silver Exchange Society, is used as the basis for the day's first dealings in the other major centres. But until 1980, the territory lacked facilities for traders to take up positions on future gold movements. Now, that gap has been closed. With the opening of the Hong Kong Commodity Exchange's gold futures market in August, Hong Kong embarked on a new course one that promises to create still wider attention and new oppor- tunities, and to further enhance Hong Kong's stature as a vital link in a gold chain that circles the globe.

Previous page: A magnificent window dis- play in Hong Kong's busy Central District. Left: The spirited bidding style of the Chinese Gold and Silver Exchange is not for the faint-hearted; a trading lot on the gold exchange: floor traders try out their techniques prior to the opening of the gold futures market.

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While the artistry of Hong Kong's gold ornaments speaks for itself, a sales assistant helps by explaining some of the finer features of an exquisite elephant inlaid with jade, coral, and other semi-precious stones. Scenes like this are typical in a trade in which supply and demand are equally keen, and many goldsmiths stay open long hours, seven days a week, to cater-to `residents and visitors.

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Demand for the government's commemorative gold coins has become something of a local phenomenon each year. In 1980, more than 650,000 applications were received for the 22,000 Year of The Monkey coins offered for sale in Hong Kong. The issue was the fifth in a series marking the 12 Chinese lunar years from 1976 to 1987.

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INDUSTRY AND TRADE

29

      and a newly-established heat treatment unit set up with technical and financial assistance from the United Nations Development Programme. This new unit is now handling mass enquiries as well as practical heat treatments.

During the year, the centre organised over 300 training programmes for more than 6,500 participants to upgrade professionalism in management, improve skills and introduce advanced technology to industry. It completed over 270 consultancy and technical assistance projects assisting client companies in solving technical and managerial problems. Advisory services were also offered to local and foreign companies applying for industrial land to establish new technology-oriented and capital-intensive production plants.

The centre also strengthened its technical information activities in 1980. In addition to publishing two quarterly bilingual bulletins on plastics and furniture technology, an on- line information retrieval service was launched. The first of its kind in Hong Kong, the service provides rapid access via the major search networks in the United States of America to the latest technical information on reports, patents and research results on a wide range of subjects. A series of demonstrations of the new facility was held for represen- tatives of the government, academic institutions and industry support organisations as well as for those in the commercial and industrial sectors.

To improve productivity in the furniture industry, the centre disseminated its report on communal facilities for the preparation of furniture materials and on the establishment of an integrated particleboard plant to industry, appropriate government departments and the Industrial Estates Corporation.

There was an increased demand for environmental control services. In particular, the centre assisted a number of factories in the identification of pollution sources, and the design and implementation of effluent treatment systems and equipment. Under the spon- sorship of the Asian Productivity Organisation (APO), a feasibility study was carried out on the treatment of effluents resulting from dyeing and finishing processes in Hong Kong. The centre organised three industrial exhibitions on machine tools, furniture and micro- processor technology, and sponsored five study missions during the year. The 1980 edition of the Directory of Hong Kong Industries, a salary report and industry data sheets were published.

       In the Report of the Advisory Committee on Diversification published in December, 1979, it was proposed that the Productivity Centre should be the organisational focus of industrial support facilities, and that the centre should be charged with the responsibility of providing and co-ordinating activities involved in research and development, the facili- tation of technology transfer and the provision of a technical and technology information service.

Accordingly, detailed project proposals were submitted to the government during the year. When these services recommended by the Advisory Committee on Diversification are in operation, they should represent a coherent approach to effective technology transfer and technology development in Hong Kong.

       As a member of the Asian Productivity Organisation (APO), Hong Kong was represented at the 1980 meeting of the governing body, in Tokyo. The centre, on behalf of Hong Kong, hosted the 20th APO Workshop of National Productivity Organisations in January, 1980, and the Asian Productivity Congress in October, 1980- which commemorated the organi- sation's 20th anniversary.

The centre is a participating organisation of the TECHNONET Asia, which was incorporated as an independent legal entity in April, 1980. It is also a member of the Federation of International Documentation Sub-committee on Information for Industry.

309

INDUSTRY AND TRADE

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 over 2,400 companies 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 designers and design service users. The council operates a design depository for people who wish to obtain copyright protection, and organises annual design competitions and exhibitions. 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 (HKSTC) provides testing, inspection, certification and related services. Its facilities include chemical, calibration, electrical, electronic, engineering, food, footwear, gemmological, microbiological, packag- ing, pharmaceutical, textile, toy, watch and radio interference testing laboratories. The centre's services also cover pre-shipment inspection, quality control, production inspection, industrial research, product development and technical consultancy.

The federation 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, 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 runs a product display centre as part of its trade promotion activities. The Association's Testing and Certification Laboratories provide a variety of services which include product testing, certification, pre-shipment inspection and technical consultancy. The association is actively involved in the promotion of industrial safety. It also 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 is a statutory body established in 1974, to protect and promote the interests of consumers of goods and services. Its chairman and 14 members are drawn from various walks of life and are appointed by the Governor. The council has a staff of 50, is headed by an Executive Director, and is financed by an annual subvention from general

revenue.

The staff operates within the following main areas: administration, complaints, advice, testing, research, education, information and publications. These activities are planned and implemented under the direction of nine standing committees which are served by various members of the council, and meet on a regular schedule. The full council is convened once a month.

INDUSTRY AND TRADE

31

In October, an ad hoc committee on tenancy agreements compiled and published a booklet advising tenants and landlords of their basic rights and obligations in drawing up a tenancy agreement. This proved to be a most welcome source of reference as rent and tenancy matters have been a frequent cause of complaints to the council. An ad hoc committee was also formed to deal specifically with matters relating to motor insurance.

       The focus of the council's work is in the areas of advertising, and the health and safety aspects of products. Two standing committees have been set up to study these matters, while a third collects and studies relevant information from various local and international

sources.

       The year 1980 was particularly busy with a growing number of complaints being received from consumers who felt they had not had a fair deal from traders. In all, 7,366 complaints were received, representing an increase of 23 per cent over the previous year. The number of enquiries from the public handled at the council's three consumer advice centres also went up to 20,415, representing a 7.4 per cent rise over the preceding year.

       These increases were seen as reflecting the confidence of the consuming public in the work of the council, and even more importantly, in the growing consumer awareness in Hong Kong a trend that is continually being fostered by the council's consumer education and information programmes. The council strongly believes that an informed consumer exercis- ing rational choice in the purchase of goods and use of services, is probably the best means of consumer protection in the long run.

The council is in almost daily contact with all sections of the mass media, which gave prominent coverage to a wide range of consumer issues during the year. New shopping leaflets were produced for distribution at the council's advice centres and displays of con- sumer products were mounted, at the head office in Wan Chai, for the purpose of educating the public.

       In December, a cartoon competition on the theme of consumer rights was jointly organised by the council and the Community Youth Club Section of the Education Department. Following the introduction of consumer education as a subject in the school curriculum, the council is involved in stimulating greater interest in this relatively new topic of learning and providing guidance and assistance to teachers and students.

The council conducts comparative product testing and carries out regular research and surveys to ensure consumer interests are safeguarded. The findings of these projects are published in the monthly issue of Choice, the council's official publication. During the year, Choice reported test results on space heaters, electric plugs, honey, mosquito coils, television sets, colour films, household insecticides, dry cells, single-lens reflex cameras, furniture polishes, sports shoes and cigarettes. These reports provided consumers with independent information on various products to enable them to make a more considered choice in their purchasing and so obtain greater value for their money.

       In January, 1980, the council hosted a five-day international seminar on The Law and The Consumer. Organised by the Asia and Pacific Regional Office of the International Organisation of Consumers Unions (IOCU), the seminar was attended by some 160 delegates from 24 countries and represented an important step in the development of consumer protection legislation for many of the participants. The Hong Kong Consumer Council is a council member of the IOCU.

Trade in Endangered Species

The Animals and Plants (Protection of Endangered Species) Ordinance, which relates to the International Convention on Trade in Endangered Species of Fauna and Flora, has

32

INDUSTRY AND TRADE

been in force since 1976. Under the ordinance licences are issued, as appropriate, to allow legitimate trade in scheduled specimens to proceed. However, seizures and prosecutions have been brought to court when sufficient evidence exists to prove that the ordinance has been contravened.

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, and the positive encouragement of the use of metric units by the private sector. 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 activi- ties promoting SI.

       During 1980, there was a generally increased public awareness of the topic, and progress was made in the adoption of SI in particular areas of the private sector and within the government. In the private sector, the plastics industry set up a programme for metric conversion commencing on April 1, 1980 (and scheduled for completion by 1983) while, in the public sector, postal services were metricated with effect from August 5, 1980. Plans and programmes for other sectors were also being drawn up.

       A continuing effort was made in the fields of publicity and public education, with activi- ties which included a poster campaign, a television commercial and educational programme, and the publication of leaflets.

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 of charge from the Trade Marks Registry, Registrar General's Department. Every mark, even if already registered in Britain or in any other country, must satisfy all the requirements of the Hong Kong Trade Marks Ordinance before it may be accepted for registration. During 1980, 5,536 applications were received and 2,943, including many made in previous years, were accepted and allowed to be advertised. A total of 2,250 marks were registered. The principal countries of origin were:

Hong Kong

United States

United Kingdom

Japan

West Germany

603 466

France Switzerland

257

Italy

240

191

Denmark Australia

128

88

56

33

28

The total number of marks on the register at December 31, 1980, was 35,478.

       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

INDUSTRY AND TRADE

33

in Hong Kong. Registration of a United Kingdom patent or European Pattent (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 run from the 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 718 patents were registered during the year, compared with 893 in 1979.

Companies

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

Local companies are incorporated under the Companies Ordinance which is, to a large extent, still based on the Companies Act 1929 - formerly in force in Britain but 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. A lengthy bill incorporating most of the recommendations in the committee's Second Report, which have not already been implemented by legislation, was published in the Government Gazette of July 18, 1980, and members of the public were invited to make comments on it before the end of October. On incorporation, a company pays a registration fee of $300, plus $4 for every $1,000 of nominal capital. In 1980, 14,596 new companies were incorporated - 4,312 more than in 1979. The nominal capital of new companies registered totalled $4,755 million. Of the new companies, 211 had a nominal share capital of $5 million or more. During the year, 3,795 companies increased their nominal capital by amounts totalling $18,903 million, on which fees were paid at the same rate of $4 per $1,000. At the end of 1980, there were 81,206 local companies on the register, compared with 67,429 in 1979.

The Companies (Amendment) Ordinance 1979, which implements, 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, came into effect on June 23, 1980.

Companies incorporated overseas are required to register certain documents with the Companies Registry within one month of establishing a place of business in Hong Kong. Only small filing fees are payable in such cases. During the year, 182 of these companies were registered and 53 ceased to operate. At the end of 1980, 1,398 companies were regis- tered from 54 countries, including 341 from the United States, 195 from Britain and 154 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 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 - is main- taining similar deposits elsewhere in the Commonwealth. The approval of the Registrar General must be obtained for transacting motor vehicle third party risks insurance business.

34

INDUSTRY AND TRADE

There are 348 insurance companies, including 168 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.

      During the year, progress was made on the formulation of new insurance legislation. The Life Insurance Companies (Amendment) Bill and the Fire and Marine Insurance Companies Deposit (Amendment) Bill - imposing capital and solvency requirements on all life, fire and marine insurance companies - were presented to the Legislative Council in December, and it was expected that these would be enacted in early 1981. Work also progressed on the drafting of a new, comprehensive Insurance Companies Bill to cover all classes of insurance business.

      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 73 petitions in bankruptcy and 132 petitions for the compulsory winding-up of companies. The court made 49 receiving orders, three adminis- tration orders, and 104 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 1980 amounted to $42 million. In addition to these compulsory windings-up, 439 companies went into voluntary liquidation - 422 by members' voluntary winding-up and 17 by creditors' voluntary winding-up.

3

Financial System and Economy

IN 1980, the Hong Kong economy experienced yet another year of rapid growth. Preliminary estimates showed that the growth rate of the gross domestic product in real terms was as high as nine per cent, matching the performance in the four earlier post-recession years (1976-9) of 12 per cent a year. Given that world economic prospects were uncertain and that economic conditions in two of Hong Kong's major markets - the United States and the United Kingdom - were unimpressive, such a performance was remarkable.

More remarkable still was the fact that economic growth in 1980 continued to be export- led, although to a lesser extent than in 1979. The growth rate of total exports in real terms was 18 per cent and the growth rate of domestic exports in real terms was 11 per cent. These compared favourably with the growth rate of domestic demand at 12 per cent. In 1979, the growth rates of total exports and domestic exports, at 20 per cent and 17 per cent, respec- tively, were much higher than that of domestic demand at eight per cent.

However, in 1980 there was a tendency for the growth rate of domestic exports to slow down. This became obvious in the second half of the year when, presumably affected by unfavourable conditions prevailing in the economies of some of Hong Kong's major markets, the growth rate of domestic exports slowed down to five per cent, compared with 18 per cent in the first half of the year. At the same time, there was a tendency for the growth rate of domestic demand to pick up, as indicated, for example, by an acceleration in the growth rate of imports of consumer goods. Such changes, however, were gradual for there was, in 1980, no sign of any significant shift in the distribution of labour resources away from the manufacturing sector. Nor was there any sign of a significant widening in the visible trade 'gap' (or proportion of the value of imports which is not covered by the value of total exports) - a phenomenon usually associated with the growth rate of domestic demand being excessive.

      The entrepôt trade remained buoyant throughout 1980, recording a growth rate in real terms of 37 per cent. This was the third consecutive year that a growth rate in real terms in excess of 20 per cent had been recorded. So, Hong Kong's role as an entrepôt for the region - and in particular for China - continued to gain importance, along with its role as an international financial and communications centre.

      Activity in the financial and related business services sector (particularly the stock market) was also buoyant in 1980. The growth rates of such monetary aggregates as the money supply and total loans and advances in Hong Kong were rapid, but the precise significance of such rapid growth rates for the economy has yet to be established.

Labour Market

Economic growth in 1980 was also associated with a closer balance between the demand for, and supply of, domestic resources. The growth rate of the demand for output was

36

FINANCIAL SYSTEM AND ECONOMY

     more in line with the growth rate of the economy's capacity to produce that output, and this led to an easing of the pressure of demand on domestic resources (which in the previous two years was exercising unfavourable influences on domestic prices). This situation was particularly obvious in respect of labour. The unemployment rate rose a little - from 2.3 per cent and 3.4 per cent, respectively, in March and September, 1979, to 3.2 per cent and 4.3 per cent, respectively, in March and September, 1980- and the rate of increase in wage rates also slowed down.

      To a significant extent, however, this closer balance between the supply of, and demand for, labour was attributable to the sudden increase in the supply of labour as a result of immigration, rather than to a fall in the demand for labour. Further, as immigrants were generally less skilled than the local labour force, their arrival had differing effects on the labour supply in various sectors of the economy. The manufacturing sector appeared to be most affected. The growth rate of employment was rapid but there was a serious depressing effect on manufacturing wage rates. Between September, 1979, and September, 1980, average daily wage rates in the manufacturing sector increased in real terms by only 0.8 per cent.

      The building and construction sector also attracted a large number of immigrants and so the rate of increase in construction wages slowed down as well during the year. Although the supply of skilled labour continued to be limited, with no undue shortage of unskilled labour, there was a closer balance between the supply of, and demand for, construction labour. Coupled with relatively stable prices for construction materials generally, the rate of increase in building and construction costs slowed down considerably. The continuing recruitment of unskilled and inexperienced labour, however, had an adverse effect on the productivity of the building and construction sector. Hopefully, this effect should be short- lived because, in time, there should be an improvement in productivity as the sector's labour force becomes more experienced and skilled unless the demand for the sector's output continues to grow so fast that the absorption of new, unskilled, workers has to continue.

Property Market

Closely related to the building and construction industry is the properly market. The overheating, which characterised the property market generally (and residential accom- modation in particular) in 1979, eased considerably in early 1980. This was partly because demand was being temporarily curtailed or postponed, and partly because of the high level of supply that had been achieved. In the early part of the year, resale prices for some residential units were, in fact, somewhat below the levels they had reached at the end of 1979. However, there was a resurgence of buying and selling activities in the residential property market in the middle of the year as the strong underlying demand for residential accommodation re-emerged, stimulated in part by reductions in mortgage interest rates.

      Commercial and industrial property prices continued to increase fairly rapidly in 1980 because of generally keen demand, including some speculative demand for commercial property financed by inflows of funds from parts of Southeast Asia, and because of a persistent discrepancy between the supply of, and demand for, particular types of property in particular locations.

Rentals for commercial and industrial property, in general, continued to rise in 1980, while those for residential accommodation (other than for new lettings), were stabilised, mainly because of the extension of rent control to practically all residential units. The

FINANCIAL SYSTEM AND ECONOMY

37

evidence from new lettings during the year was that rent control was suppressing what would otherwise be an upward trend in rents in response to an excess of demand over supply.

Inflation

The rate of inflation in 1980 was fairly rapid. The Consumer Price Index (A) averaged 16 per cent higher in 1980 than in 1979. Much of the increase, however, occurred at the beginning of the year when the delayed effect of the depreciation of the Hong Kong dollar, and of the rapid rate of increase in import prices in the first half of 1979, was still filtering through to the retail level. But consumer prices remained remarkably stable for about six months after the Lunar New Year, and increases during the rest of the year were gradual. Hong Kong's experience of inflation in 1980 only matched that of most other countries. The rate of inflation in Organisation for Economic Co-operation and Development (OECD) countries, for example, was 13 per cent for the year. Given the externally-oriented nature of the Hong Kong economy, it is unlikely that, even under a floating exchange rate regime, Hong Kong could have escaped more than partially what was happening in the rest of the world.

       There is no doubt that, in recent years, inflation has been a much more influential feature of the Hong Kong economic scene. However, it must be recognised that, unlike many other economies, inflation in Hong Kong has usually been externally generated and associated with periods of sustained economic growth and relatively low unemployment

rates.

      Much of the internally generated inflation experienced in Hong Kong can be traced to the strains arising from a rapid growth rate of the economy and the shifts in relative prices necessitated by it. Although the rapid growth rate in recent years, and in 1980 in particular, may not have affected all sectors of Hong Kong's economy equally (with the result that the benefits of growth may not have been evenly distributed), a growth rate of per capita gross domestic product in real terms of 8.9 per cent a year in the four post-recession years 1976-9, and of 5.4 per cent in 1980, must have resulted in a substantial improvement in the average standard of living for the people of Hong Kong.

Public Finance

General Revenue Account

For the purpose of estimates and budgetary control, the government's expenditure is classified into four broad categories - Annually Recurrent Personal Emoluments, Annually Recurrent Other Charges, Special Expenditure and Public Works Non-recurrent. Annually Recurrent Personal Emoluments represent recurrent expenditure on payments of salaries and allowances to public officers; all other recurrent expenditure necessarily incurred in the provision of public services is classified as Annually Recurrent Other Charges. Special Expenditure is predominantly expenditure of a capital nature such as purchases of plant, equipment and minor public works, while Public Works Non-recurrent covers the capital expenditure on all projects included in the Public Works Programme - with the exception of the expenditure on Urban Council projects, which is included in the Urban Council budget.

In the financial year 1979-80, total gross expenditure, at $13,872 million, was $1,418 million over the original estimate. It comprised $3,517 million for Annually Recurrent

38

FINANCIAL SYSTEM AND ECONOMY

Personal Emoluments, $5,348 million for Annually Recurrent Other Charges, $1,915 million for Special Expenditure and $3,092 million for Public Works Non-recurrent. A further breakdown of expenditure is given in Appendix 9.

Consolidated Account

By respective resolutions over the years, the Legislative Council has created the Develop- ment Loan Fund, the Lotteries Fund, the Home Ownership Fund and the Student Loan 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 $2,626 million on March 31, 1980. This fund is used to finance social and economic developments, with the greater part applied to low-cost housing schemes. During 1979-80, a sum of $171.1 million was transferred from general revenue to cover the outstanding balance of loans issued to students following the creation of a new Student Loan Fund on February 1, 1980. At March 31, 1980, liquid assets of the fund totalled $391.5 million while approved out- standing commitments amounted to $3,381.9 million.

The Lotteries Fund, established in 1965, is mainly used to finance the development of social welfare services. This is done through grants and loans. The fund started with a transfer from general revenue of $7.4 million and has since been credited with an additional $193.4 million through the net proceeds of the former Government Lottery and, from September. 1975, the Mark Six Lottery and the auction of special vehicle registration numbers. At March 31, 1980, the fund's liquid assets totalled $86.2 million and grants and loans amounting to $167.5 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. Up to March 31, 1980, 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. During the year, a total of $395.6 million was spent on various projects while receipts from the sale of flats amounted to $92.8 million.

The Student Loan Fund, established on February 1, 1980, is used to finance loans to students of the two universities, the Hong Kong Polytechnic and other approved post- secondary institutions. Outstanding loans previously issued from the Development Loan Fund were transferred to this fund on February 1, 1980. At March 31, 1980, the fund's liquid assets totalled $14.4 million and outstanding commitments amounted to $10.7 million.

Surplus and Deficit

-

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 succession of surpluses have been accumulated during the years up to and including 1979-80. On March 31, 1980, accumulated reserves stood at $9,339 million. Such reserves are required to secure the government's contingent liabilities and to ensure that the govern- ment is able to cope with short-lived tendencies for expenditure to exceed revenue or for revenue yields to fall below expectations.

Revenue and expenditure for 1978-9 and 1979-80, together with the estimates for 1980-1, are detailed and compared in Appendices 7 and 8. Sources of revenue and expendi- ture in various fields are shown proportionately by charts in Appendices 7a and 8a.

FINANCIAL SYSTEM AND ECONOMY

39

       For 1980-1 the estimated revenue of $21,036 million and gross expenditure of $18,442 million give an estimated surplus of $2,594 million for the year.

Public Debt

――

At March 31, 1980, net available public financial assets were $9,339 million, while the public debt was equivalent to some $423 million about $84 per head of population. Indebtedness increased by some $19 million during 1979-80. This was principally due to drawings on loans from the Asian Development Bank towards the Sha Tin sewage treat- ment project, the Sha Tin urban development (housing) project and the Sha Tin hospital and polyclinic project, offset by instalment repayment of borrowings under the Asian Development Bank loan towards the Lok On Pai desalting project and under the loan from Lloyds Bank International Limited and the repayment in full of the drawing of US$6 million (equivalent to HK$30.5 million) from the Hong Kong and Shanghai Bank Consortium loan facility. The only other outstanding borrowing was in respect of the issue of $250 million of government 64% bonds in 1975-6 which was repayable in November, 1980.

Urban Council

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 1980-1 financial year, the council worked to an overall budget of $771 million.

Housing Authority

The Housing Authority, which also is financially autonomous, is responsible for the provi- sion and management of public housing. The authority's executive arm is the Housing Department. 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 govern- ment's public housing programme, the authority is provided with land, the value of which is reflected in the authority's balance sheet as a government contribution. Where its cash flow is inadequate to meet construction costs, the authority 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.

Revenue from Land Sales

Revenue received by the government from land transactions in the urban areas of Hong Kong Island and Kowloon is estimated to yield $6,249 million in 1980-1, compared with the actual collection in 1979-80 of $2,845 million.

40

FINANCIAL SYSTEM AND ECONOMY

During 1980-1, revenue from sales of land in the urban areas and in the New Terri- tories was expected to reach $4,418 million and $750 million, respectively, compared with actual revenue of $1,909 million and $391 million in 1979-80. There continued to be a high demand for the temporary occupation of Crown land. A number of sites were let by open competitive tender for various purposes.

Internal Revenue

Hong Kong's Internal Revenue comprises all taxes, duties and fees levied under: the Betting Duty Ordinance, Business Registration Ordinance, Entertainments Tax Ordinance, Estate Duty Ordinance, Hotel Accommodation Tax Ordinance, Inland Revenue Ordinance, and the Stamp Ordinance all of which are administered by the Commissioner of Inland Revenue, who holds the additional appointments of Collector of Stamp Revenue and Commissioner of Estate Duty.

In the financial year ending on March 31, 1981, it is anticipated that the yield from internal revenue will amount to $8,195.4 million, which compares with actual collections of $7,631.3 million for 1979-80.

Betting Duty

     Under the Betting Duty Ordinance, a duty is imposed on bets on authorised totalisators or pari-mutuels, and on proceeds of Mark Six lotteries. The rate of duty is either seven and a half per cent or 11 per cent (depending on the type of bet made), and 25 per cent on the proceeds of lotteries. The anticipated yield from 61 race meetings and 102 lotteries in 1980-1 is $720 million.

Business Registration

With the exception of businesses carried on by charitable institutions and certain others, all people operating businesses in the territory are required to register and pay an annual fee of $175. Limited liability companies are under a similar obligation whether or not they carry on a business. Exemption from payment of the fee is granted when an unincorporated business is very small. The total yield from these fees, service fees for copies of documents and other fees in the 1980-1 fiscal year is estimated to amount to $51.5 million.

Entertainments Tax

An entertainments tax is imposed on the price of admission to cinemas and race meetings at rates varying with the amounts charged for admission. This averages out at approximately eight per cent in the case of cinemas and 28 per cent in the case of race meetings. For the 1980-1 financial year the estimated yield is $39 million.

Estate Duty

This duty is imposed on that part of a deceased's estate which is situated in Hong Kong. The rates of duty charged range from a minimum of 10 per cent on estates valued between $600,000 and $650,000 to a maximum of 18 per cent on estates valued in excess of $3 million. Estates under $600,000 are exempt. Collections in the year ending March 31, 1981, are expected to amount to $165 million.

Hotel Accommodation Tax

This tax is levied on hotel and guest house accommodation at the rate of four per cent of

FINANCIAL SYSTEM AND ECONOMY

41

      the accommodation charges paid by guests. For the 1980-1 financial year the anticipated yield is $43 million.

Inland Revenue Ordinance

Earnings and profits tax is charged on four separate and distinct sources of income with a provision for certain taxpayers to elect to have a 'personal assessment' made on their total income. The four sources of income are business profits, salaries, property and interest. Tax is payable only on income arising in, or derived from, Hong Kong. The current standard rate of 15 per cent has been in force since April 1, 1966.

       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 business are taxed at 15 per cent and corporations at 17 per cent. Assessable profits are determined on the actual profits for the year of assessment, coupled with a system of provisional payment of tax based on the profits of the preceding year of assessment. Generally, all expenses incurred in the production of assessable profits are deductible, as are charitable donations to the extent of 10 per cent of net assessable profits. There is no withholding tax on dividends paid by corporations and dividends received from corporations are exempt.

Salaries tax is charged on emoluments arising in, or derived from, Hong Kong. Assessable income is determined on the basis of actual income for the year of assessment, coupled with a system of provisional payment of tax based on the income of the preceding year of assessment. Tax payable is calculated on a sliding scale which varies from five per cent to 25 per cent on $10,000 segments of assessable income, that is, income after the deduction of personal allowances. However, the overall effective rate is limited to a maximum of 15 per cent of income before the deduction of personal allowances. These allowances are: for the taxpayer $12,500; for his wife $12,500; for his children a maximum of $21,000 (ranging from $5,000 for the first child to $1,000 for the ninth); and $5,000 for each of his, or his wife's, dependent parents. In the 1979-80 year of assessment, additional personal allowances of $2,500 and $5,000 were extended to single and married taxpayers, respec- tively, without any abatement as in the previous year. Apart from the deduction of expenses necessarily incurred in the production of income, and charitable donations up to 10 per cent of taxable income, there are no other allowances.

Property tax is charged at the standard rate of 15 per cent on the owner of land and/or buildings in Hong Kong by reference to estimated rental value. There are exemptions, in- cluding property occupied by an owner for his residential purposes, vacant premises and property in certain undeveloped parts of the New Territories. Property owned by a corpora- tion carrying on business in Hong Kong is exempt from property tax because the profit derived from the ownership is chargeable to profits tax.

Interest tax is normally deducted at source through a withholding system at 15 per cent on interest arising in, or derived from, Hong Kong. Interest in the hands of a corporation carrying on business in Hong Kong is chargeable to profits tax because it is deemed to be part of the profits of the corporation. Interest paid by the government, and by licensed banks and specified utilities is exempt unless it exceeds specified rates which vary from time to time.

Personal assessment is a form of relief under which taxpayers with earnings and profits, normally chargeable at the standard rate for each separate source, may elect to be assessed on their total Hong Kong income. The advantages of personal assessment disappear when tax at the sliding scale on total income (after personal allowances) exceeds tax at the standard rate on total income (before personal allowances).

42

FINANCIAL SYSTEM AND ECONOMY

Taxes on earnings and profits will yield an estimated $6,493.9 million in the 1980-1 financial year.

Stamp Duty

Fixed and ad valorem stamp duties are imposed on different classes of documents relating to assignments of immovable property, leases and share transfers. Assignments are stamped at a fixed duty of $20 for the lowest range of values (up to $175,000), one per cent for the intermediate range ($175,001 to $250,000) and two and three-quarters per cent for those in excess, with provision for marginal relief at the commencement of higher rates. Lease premia attract ad valorem duty at two and three-quarters per cent; the rates of duty on lease rents vary with the periods of leases. Share transactions require the preparation of contract notes on which buyers and sellers each have to pay at the rate of $3 per $1,000 in value. The estimated yield for the financial year ending on March 31, 1981 is $683 million.

Financial Structure

Duties

     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 engaged in the import, export, manufacture or sale of dutiable commodities must be licensed.

      On liquors, the basic duty rates are 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 were due to be metricated with effect from January 1, 1981, when they would become $0.50 a litre on motor and aircraft spirits and $0.35 a litre on diesel fuel for motor vehicles. The rate for methyl alcohol is equivalent to $2.18 a litre.

Rates

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

On April 1, 1980, a programme was completed which brought into the rating system the developed and developing areas of the New Territories and the main outlying islands. However, the effect of the imposition of rates in new rating areas will be cushioned by the application of lower percentage rate charges during the initial five years. Despite the com- pletion of the initial programme, these new areas will be extended from time to time as further development takes place.

Reviews of rateable values of rated properties are carried out periodically, as directed by the Governor, to bring values up-to-date. The last review came into force on April 1, 1977. Plans for a revaluation during 1980 had to be abandoned mainly due to the extension of rent controls to virtually all domestic tenancies in December, 1979.

FINANCIAL SYSTEM AND ECONOMY

43

With the rapid pace of building development and the addition of new rating areas in the New Territories the valuation lists continue to grow. By April 1, 1981, it is expected the lists will have increased to over 600,000 assessments with a total rateable value of more than $12,000 million. The estimated rates revenue for 1980-1 is $1,402 million, of which about $420 million will go to the Urban Council.

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

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 statutory and non-statutory funds and other public bodies, as well as reviewing the financial aspect of 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 complete autonomy and independence in the exercise of his functions, the Director of Audit is not a civil servant and 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.

       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 em- powered, 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 in- cidental to the performance of the Director of Audit's duties or the exercise of his powers. In the operation of its authority, the committee may call any public officer or other person concerned to give information and explanations and to produce any 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 for Foreign and Commonwealth Affairs.

Hong Kong as a Financial Centre

Hong Kong continued to develop as a financial centre in 1980. Eight more major inter- national banks opened branches, under licences granted in 1979, and 53 deposit-taking companies also began to operate. The stock market had a very active year, reflecting a high level of corporate activity, and the commodity market expanded to begin trading in gold futures. The government took steps to improve the statistical information it obtains on developments in the monetary sector, and work continued on extending and improving the system of prudential supervision and control applied to all institutions taking deposits from the public.

44

FINANCIAL SYSTEM AND ECONOMY

Hong Kong has a number of institutional features which, together, make it probably unique as a financial centre. There is a low degree of specialisation, especially among the commercial banks, so that there is, for instance, only one small institution concerned only with granting mortgage finance, while none are established solely to gather savings deposits (these functions are instead normally carried out by commercial banks). There is no central bank or central monetary authority; such of the tasks of a central bank as arise in Hong Kong are carried out by the Monetary Affairs Branch of the Government Secretariat, operating as necessary through the Hong Kong Government Exchange Fund and through one or another of its commercial bankers. There is now no marketable government debt, and the total public debt is extremely low. There is a well-developed foreign exchange market, with no exchange control of any sort.

Banking Structure and Non-bank Financial Services

Banks are licensed in Hong Kong under the Banking Ordinance. The licensing authority is the Governor in Council. In March, 1978, a moratorium on the issue of banking licences (which had been in force since 1965) was eased in respect of applications from foreign banks which met a number of criteria relating to their size and background, although the govern- ment reserved the right not to grant a licence even when an applicant met all the criteria.

The grant of further licences was suspended again in August, 1979, after 41 banks from 12 countries had been granted licences, so raising the number of licensed banks in Hong Kong from 74, as of March, 1978, to 115 in August, 1979. Eight of these banks did not begin to operate under their new licences until 1980, while two banks were expected to begin to operate in 1981. At the end of 1980, the 113 licensed banks had between them 1,146 banking offices. In addtion there were 108 representative offices of foreign banks.

Finance companies and other non-bank financial institutions which take deposits from the public but do not conduct banking business (as defined in the Banking Ordinance) are required to register under the Deposit-taking Companies Ordinance. At the end of 1980, 302 such companies were registered. Most of these companies are incorporated in Hong Kong, but many are owned by interests outside Hong Kong, including foreign banks. From January, 1980, deposit-taking companies have been required to meet minimum liquidity requirements which are broadly similar in approach to those which have applied to licensed banks since 1965.

     Licensed banks and registered deposit-taking companies are subject to the prudential supervision of the Commissioner of Banking, who is at the same time the Commissioner of Deposit-taking Companies. In addition, Hong Kong branches of banks and deposit-taking companies incorporated outside Hong Kong are subject to the prudential supervision of the banking authorities in their countries of origin. Work progressed during the year on extending and improving the system of prudential control and supervision applied to banks and deposit-taking companies in Hong Kong.

The government took steps to incorporate by statute the trade association for all licensed banks, and to require all banks to be members of the association. The Hong Kong Associa- tion of Banks Bill was published in November, 1980. The government also encouraged the formation of an association to bring together all registered deposit-taking companies.

      Under the Monetary Statistics Ordinance, enacted in July, 1980, the government was empowered to collect detailed statistics from all banks and deposit-taking companies with a view to measuring developments in the monetary sector of the economy more effectively. The statistics previously available had not proved adequate for an increasingly complex financial system.

FINANCIAL SYSTEM AND ECONOMY

Non-bank financial services

45

Due partly to the wide range of facilities and services offered in Hong Kong by banks and deposit-taking companies, there is a relatively restricted range of other kinds of institutions in the Hong Kong financial sector. The range includes insurance companies and pension funds, which are relatively small in terms of the local markets; also, credit unions, co- operative societies, pawnshops and private money-lenders - each of which is even smaller in terms of the markets as a whole. In the course of 1980, the Money-lenders Ordinance was repealed and replaced by an entirely new ordinance to apply effective controls to this sector. The ordinance lays down a maximum effective rate of interest for loan transactions of 60 per cent a year.

Financial Markets

Domestic Money Market

ww

The domestic money market in Hong Kong is not a 'market' in the sense of a trading floor the phrase is used to refer to the activities of banks and deposit-taking companies engaged in raising or placing Hong Kong dollar funds between themselves. There are a few large commercial companies which also place funds directly on the money market. The demand for funds on the money market comes principally from those institutions (mainly the local branches of banks incorporated outside Hong Kong), which do not have an adequate Hong Kong dollar deposit base to support their Hong Kong dollar lending.

Virtually all transactions in the domestic money market were in the form of straight deposits until about 1977. In that year, the issue of Hong Kong dollar certificates of deposit began to develop and these are now quite widely used by some banks as means of raising Hong Kong dollar resources. The secondary market in these certificates of deposit is, however, still relatively undeveloped.

      The money market, and in particular the market in straight deposits, was strengthened from the beginning of 1980, when deposits placed by banks with deposit-taking companies were classified as liquid assets for banks, under the Banking Ordinance. This had the effect of unifying the inter-bank market and the inter-deposit-taking company market, which had until then been effectively separated by statutory liquidity rules and definitions.

      Another development in the domestic money market has been the use by the Mass Transit Railway Corporation of commercial paper, starting in February, 1979. The paper takes the form of negotiable bills of exchange accepted by the MTRC, and these have proved increasingly popular among investors.

There is now no marketable direct government debt, since the repayment of $250 million of Hong Kong Government 61% Bonds 1980 in November, 1980. There is a small amount of marketable government-guaranteed debt, comprising $400 million of 10-year bonds and $207 million of five-year notes issued by the Mass Transit Railway Corporation, and $150 million of notes issued by the Hong Kong Building and Loan Agency Limited.

Foreign Exchange Market

-

An important feature of the domestic money market is its very close connection with the foreign exchange market in Hong Kong. This connection arises because the shortage of money market instruments in Hong Kong dollars and, in particular, the absence of marketable government debt, such as Treasury Bills - means that the residual liquidity of licensed banks and registered deposit-taking companies has to be held in foreign currencies. In addition, the ability to buy Hong Kong dollars, against the sale of a foreign currency,

46

FINANCIAL SYSTEM AND ECONOMY

enables a bank in Hong Kong without an adequate local deposit base to acquire the resources to lend to a customer in Hong Kong, if it cannot borrow those resources at an acceptable rate of interest on the domestic money market.

There is no exchange control at all in Hong Kong, and a number of banks and deposit- taking companies are very active participants in the market, with many international banks dealing (through their local branches) on behalf of their other branches during the hours that the Hong Kong market is open. The government does not normally intervene in the foreign exchange market to influence the exchange value of the Hong Kong dollar, although it does occasionally seek to smooth out erratic fluctuations in the Hong Kong dollar exchange value.

One important development during the year was the issue by one bank in Hong Kong of United States dollar certificates of deposit. This was the first time this particular instru- ment had been issued in Hong Kong, and a number of other issues were subsequently brought to the market.

Stock Exchanges

There have been four stock exchanges in Hong Kong since 1972. During the course of 1980, the government took steps to bring about its long-term aim of unifying all four exchanges. The Stock Exchanges Unification Ordinance, which provides for the establish- ment of a unified exchange in place of the existing four, was enacted on August 7, 1980. Under the ordinance, The Stock Exchange of Hong Kong Limited, which was incorporated on July 7, will have the exclusive right to operate a stock market in Hong Kong, from a date to be appointed by the Financial Secretary. This date must not be more than three years after the commencement date of the ordinance, and so it will be not later than early 1984. Immediately after the commencement date of the ordinance, invitations will be extended to all members of the existing four exchanges to apply for shares in The Stock Exchange of Hong Kong Limited. These shares will carry with them membership of the unified exchange. The establishment of the unified exchange is expected to result in a broader market, and to increase the attractiveness of Hong Kong securities to overseas investors. Unification will also assist the better management of the stock market and the more effective regulation of stockbrokers.

      In the meantime, trading continues on the existing exchanges. The turnover for 1980 was: Far East Exchange, $43,595.5 million; Hong Kong Stock Exchange, $19,371.9 million; Kam Ngan Stock Exchange, $32,481.0 million; and Kowloon Stock Exchange, $236.6 million. The total of $95,684.7 million was an increase of 273.3 per cent over the 1979 figure of $25,633.2 million. The Hang Seng Index stood at 1,473.59 on December 31, 1980 (July 31, 1964-100), up from 879.38 on December 31, 1979.

Staff of the Office of the Commissioner of Securities continued to monitor financial transactions concerning securities, and to scrutinise unusual movements in individual prices. One of the functions of the office is to investigate possible instances of insider dealings in securities to establish whether there is a prima facie case to be examined by the Insider Dealing Tribunal. In June, 1980, the tribunal was convened to inquire into possible insider dealings in the shares of Hutchison Whampoa Ltd. at some time prior to September 26, 1979. On April 25, 1980, the Committee on Takeovers and Mergers issued a statement to make it clear that although the holding of 50 per cent of a company's voting rights is conclusive evidence of control, this is not an exclusive definition and other factors will be taken into account by the committee in considering whether control of a company has passed, thus requiring a mandatory bid to be made to all shareholders. The market, however, has shown

FINANCIAL SYSTEM AND ECONOMY

47

some difficulty in interpreting the exact meaning of this statement and, as the year ended, the committee was considering whether to introduce further amendments to the Code on Takeovers and Mergers. In 1980, there were six instances of completed takeovers and three further instances of minority shareholders being bought out.

      During 1980, 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 under the Securities Ordinance was 15, while four unit trusts authorised prior to the establishment of the code had their authorisation withdrawn since these trusts are no longer marketed in Hong Kong. In the light of operational experience, a revised Hong Kong Code on Unit Trusts and Mutual Funds (together with Rules of Practice) is being prepared.

      The combined Stock Exchange Compensation Fund - established to compensate those who suffer financial loss as a result of defaults by stockbrokers - amounted to $24.2 million on December 31, 1980. No payments were made from this fund during the year. Deposits lodged by dealers other than stockbrokers stood at $7.7 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 1980, 2,342 people were registered under the Securities (Dealers, Investment Advisers and Representatives) Regulations 1974.

Commodity Exchange

The Hong Kong Commodity Exchange Limited is the only company licensed under the Commodities Trading Ordinance to operate a commodity exchange in futures contracts in Hong Kong. In addition to cotton, sugar and soybean, the Commodity Exchange began trading in gold on August 19, 1980. Prices on this market are quoted in United States dollars per troy ounce of 99.5 per cent fine gold, with delivery in London.

      At the end of 1980, 1,228 people were registered under the Commodities Trading (Dealers, Commodity Trading Advisers and Representatives) Regulations 1976. The turnovers reported on the four markets for 1980 were: cotton market, 14,630 lots of 50 long tons each; sugar market, 17,969 lots of 50,000 lbs each; soybean market, 36,394 lots of 250 bags of 60 kg each and 134,088 lots of 500 bags of 60 kg each; gold market, 26,675 lots of 100 oz. each.

      To give further protection to investors, the Commodities Trading Ordinance was amended in August, 1980, to tighten the control on fringe dealing activities in commodities, including gold.

      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 $7.3 million at the end of the year. Deposits lodged by dealers, other than members of the Hong Kong Commodity Exchange, stood at $600,000. 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 in gold by the Chinese Gold and Silver Exchange Society was extremely active in 1980. 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 $3,088 per tael of 99 per cent fine gold at the end of 1979, to $3,592 at the end of 1980. One tael is equal to 37.429 grams.

48

FINANCIAL SYSTEM AND ECONOMY

      The international gold market in Hong Kong was equally active during the year. Dealings in this market take place in United States dollars per troy ounce of 99.95 per cent fine gold, with delivery in London. The price of gold loco London at the end of 1980 was US$588 per ounce compared with US$526 per ounce at the end of 1979.

Exchange Fund

The Hong Kong Government Exchange Fund is effectively the banker to the government, and so carries out a number of quasi-central banking functions. The Exchange Fund was established by the Currency Ordinance of 1935 (later renamed the Exchange Fund Ordin- ance), with its stated purpose being to regulate the exchange value of the Hong Kong dollar. The fund is managed by the Monetary Affairs Branch of the Government Secretariat under the directions of the Financial Secretary.

L

      From its inception the fund has held the backing to the note issue, with notes being issued by the two note-issuing banks The Hongkong and Shanghai Banking Corporation and The Chartered Bank against their holdings of certificates of indebtedness. These are non-interest-bearing liabilities of the Exchange Fund, and are issued or redeemed as the value of the notes in circulation rises or falls. The role of the fund was developed further in 1976 when all the assets of the Coinage Security Fund (which held the backing for coins issued by the government), as well as the bulk of the foreign currency assets held in the government's General Revenue Account, were transferred to the fund. In both cases, the transfers were made against the issue by the fund of debt certificates denominated in Hong Kong dollars. On December 31, 1978, the Coinage Security Fund was merged with the Exchange Fund and all the certificates held by the Coinage Security Fund were redeemed. Apart from some very small working balances the fund is, therefore, the sole repository of Hong Kong's official foreign currency reserves. As a result, 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, and all changes in the Hong Kong dollar value of official foreign currency assets are reflected in the Exchange Fund's accounts.

The role of the Exchange Fund was expanded again in 1978 when the government began to transfer the Hong Kong dollar balances of the General Revenue Account (apart from working balances) to the Exchange Fund against the issue of interest-bearing debt certificates. Now that the transfer has been completed, the bulk of the government's financial assets are held by the Exchange Fund. The resources of the fund are invested in Hong Kong dollars and in other currencies. These resources are used if the government intervenes in the foreign exchange markets to influence the value of the Hong Kong dollar. Steps were taken in 1979 to prevent short-term Hong Kong dollar balances held by the Exchange Fund with banks in Hong Kong from acting as a base for credit creation, and to remove those balances from the Hong Kong money supply.

Currency and Exchange Value of the Dollar

     Currency notes are issued by two commercial banks The Hongkong and Shanghai Banking Corporation and The Chartered Bank. Notes in everyday circulation are $10, $50, $100, $500 and $1,000, and may only be issued against holdings of Exchange Fund cer- tificates of indebtedness, apart from a very small fiduciary issue, which is backed by securities issued or guaranteed by the British or Hong Kong governments. The Exchange Fund bears the costs of maintaining the note issue (apart from that proportion of the costs which relates to the fiduciary issue), and the net profits of the note issue accrue to the fund.

FINANCIAL SYSTEM AND ECONOMY

49

       Coins of $5, $2, $1, 50 cents, 20 cents, 10 cents and five cents denominations, and currency notes of one cent denomination, are issued by the government. The fifth of a series of $1,000 gold coins minted to commemorate the Chinese Lunar New Year was issued early in 1980. These gold coins are legal tender, but do not circulate. The total currency in circulation at the end of 1980, and details of its composition, are shown in Appendix 11.

Hong Kong abandoned the silver standard of its currency in 1935, when the exchange value of the Hong Kong dollar was fixed at about Is. 3d. sterling (or $16 to £1). With the setting-up of the International Monetary Fund after World War II, the Hong Kong dollar was given a gold parity reflecting this pre-war rate. The relationship between the Hong Kong dollar and sterling was, however, at no time a statutory one but was established and maintained by the operations of the Exchange Fund in conjunction with the note-issuing banks. The relationship weakened after the devaluation of the pound in November, 1967, and ended after the pound was allowed to float in June, 1972. In the following month, the government announced the pegging of the Hong Kong dollar to the United States dollar, with provision for a fluctuation of two and a half per cent either side of the central rate. But in November, 1974, this link was broken as well. Since that time, the Hong Kong dollar has floated independently according to market conditions. Appendix 5 sets out changes in the exchange value of the Hong Kong dollar from 1946 to November, 1974.

      The effective exchange rate of the Hong Kong dollar, calculated against the currencies of Hong Kong's 15 most important trading partners, moved from 92.7 on December 31, 1979 (December 18, 1971=100) to 88.2 on December 31, 1980. Against the United States dollar, the Hong Kong dollar moved from 4,960 on December 31, 1979, to 5.140 on Decem- ber 31, 1980.

4

WARG

Employment

HONG KONG's total employed population recorded in the Labour Force Survey held in September, 1980, was 2,268,700 - comprising 1,477,200 males and 791,500 females. The Labour Force Survey is a sampled household survey. The distribution was: agriculture and fishing, mining and quarrying, 30,700; manufacturing, 947,000; electricity, gas and water, 12,400; construction, 172,400; wholesale and retail trade, restaurants and hotels, 460,500; transport, storage and communications, 171,000; financing, insurance, real estate and business services, 110,100; community, social and personal services, 364,500; and unclassifiable activities, 200.

      The Manufacturing Employment Survey, also held in September, recorded a total of 892,140 people engaged in 45,409 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 380,250 people - the largest share of the manufacturing workforce - 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 manu- facturing establishments, and of the numbers of people engaged in them, are given in Appendices 13 and 14.

       The bulk of the manufacturing workforce is concentrated in the urban areas of Hong Kong Island and Kowloon. However, industrial development in the New Territories is increasing and more than one-quarter of the manufacturing workforce now works there.

Labour Legislation

During 1980, 14 items of labour legislation were enacted to further improve workers' safety, health and welfare. This brings the total number of items of labour legislation enacted in the past decade to 141.

      The Employment Ordinance was amended to require the posting up of extracts of labour legislation and to bring employment agencies dealing solely with the recruitment of domestic helpers within the ambit of the Employment Agencies Regulations. So that the Employment Ordinance might deal with all measures of a social nature relating to employment - leaving the Factories and Industrial Undertakings Ordinance to deal with safety at work - the regulations concerning hours of work for women and young people were transferred to its control during the year and formed a separate set of regulations under the ordinance. Under this set of regulations the permitted period of employment for young people was further reduced to provide for a period of at least 12 hours rest at night. To further strengthen legislation preventing the employment of children, several amendments were made to the Employment of Children Regulations.

EMPLOYMENT

51

Significant amendments were made to the Workmen's Compensation Ordinance to extend its coverage to all workers regardless of their earnings; to raise substantially the levels of compensation; and to require employers to pay for the cost of repair and renewal of prostheses and surgical appliances.

      The Pneumoconiosis (Compensation) Ordinance was enacted, along with some sub- sidiary legislation, to provide compensation for people suffering from silicosis and asbestosis.

       The Factories and Industrial Undertakings Ordinance was amended to enable the maximum fine under the regulations to be increased from $10,000 to $50,000, and to increase the penalty for failing to comply with a magistrate's order from a fine of $10,000 to $50,000 and six months imprisonment.

      Minor amendments to the Apprenticeship Ordinance and its subsidiary legislation were also made.

      As a dependent territory of the United Kingdom, Hong Kong is not a member of the International Labour Organisation and is not called upon to ratify any International Labour Conventions which set international labour standards. However, the United Kingdom Government makes declarations on behalf of Hong Kong with regard to the application of conventions it ratifies. This is done after full consultation with the Hong Kong Government.

       As at December, 1980, Hong Kong had applied 44 ILO conventions, which exceeded the number ratified by most member nations.

Wages and Conditions of Work

There is no statutory 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 alternatively, on an incentive basis depending on the volume of work performed. Wages are customarily 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 are usually employed in the skilled trades or in technical and supervisory capacities. Men and women receive the same rate for piece- work, but women are generally paid less when working on a time basis.

      Although wages of manufacturing workers continued to increase in money terms during 1980, real wages remained stagnant because of the increasing impact of immigration and the rapid increase in the cost of living. In fact, real wages had begun to decrease in the second half of 1979 when the impact of immigration on the labour sector became in- creasingly apparent. By September, 1980, average daily wages (excluding fringe benefits) had increased by 109 per cent on the base period of July, 1973, to June, 1974. During the same time, the cost-of-living index went up by 61 per cent, making an increase of 30 per cent for the index of real average daily wages.

      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, 1980, this index stood at 168 (see Appendix 16). A Consumer Price Index (B) shows the effect of price changes on households spending $1,500 to $2,999 a month. These indices are now being revised and the new series will be published in April, 1981. Changes will be introduced in the expenditure brackets and in many other practical details.

52

EMPLOYMENT

In September, 1980, 75 per cent of the workers engaged in manufacturing industries received daily wages of $34.55 or more (male: $37.95 and female: $32.40), and 25 per cent received $51.80 or more (male: $65.78 and female: $46.60). The overall average daily wage was $46.49 (male: $54.86 and female: $40.80).

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

Employment of children under the age of 14 years has always been prohibited in in- dustry. The Employment of Children Regulations 1979, which were made under the Employment Ordinance and came into effect on September 1, 1979, extended the prohibi- tion of child employment to the non-industrial sector except in certain circumstances and subject to certain conditions aimed at ensuring their physical and moral protection. Children aged 13, or above, may be employed in non-industrial establishments subject to certain conditions and excluding certain occupations prohibited in the regulations. The types of employment and the conditions depend, among other things, on whether the child has completed Form III of secondary education. With effect from September 1, 1980, the minimum age for all types of employment was raised to 15 years.

Under the Women and Young Persons (Industry) Regulations 1980, which came into effect on July 1, young people aged 14 to 17 (15 to 17 from September 1, 1980) and women are permitted to work a maximum of eight hours a day, six days a week. However, work for all young people may not start earlier than 7 a.m. nor end later than 7 p.m. 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 under the age of 16, the break must not be less than one hour. The regulations also limit overtime employment for women to 200 hours a year. With effect from January 1, 1980, no young people are allowed to be employed in overtime work.

       During 1980, the labour inspectorate made 214,994 day and night inspections of in- dustrial and non-industrial establishments. In addition, two special campaigns against child employment reached approximately 17,565 establishments. Altogether, 149 cases involving 149 children were brought before the courts.

There is no statutory restriction on the hours of work for male workers aged 18 and above. According to the Report on the September, 1980, Labour Force Survey, published by the Census and Statistics Department, the average working week was about 49 hours. However, there were marked variations in the average hours of work for different occupa- tions and industries. Sales and service workers, and workers in the wholesale and retail trades, restaurants and hotels worked the longest shifts. 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 Part IIA of the Factories and Industrial Undertakings Regulations, no man may be employed to work underground in mines, quarries, and industrial undertakings in- volving tunnelling operations unless he has been medically examined and certified fit for such work. Those under the age of 21 years have to be medically re-examined at yearly intervals.

EMPLOYMENT

Trade Unions

53

Trade unions in Hong Kong are given the legal status of corporate bodies by a system of registration under the Trade Unions Ordinance administered by the Registrar of Trade Unions. Once registered they enjoy immunity from certain civil suits.

During the year, 21 new unions were registered, of which 13 were formed by civil servants. At the end of the year, the register showed a total of 357 employees' unions with an estimated membership of 401,300; 40 merchants or employers organisations with an estimated membership of 4,290; and 15 mixed organisations of employees and employers with an estimated membership of 5,640.

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 with an estimated membership of 203,020. A further 29 unions are friendly towards this federation and they have an estimated membership of 64,530. Members of the 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 71 affiliated unions with an estimated membership of 36,770 and 11 associated unions with an estimated membership of 1,380. The members of the affiliated and associated unions are mainly employed in the catering and building trades.

       The remaining 180 employees' unions are politically independent and have an estimated membership of 95,600, mostly drawn from the civil service and the teaching profession.

There is a tendency for the local independent trade unions to accept affiliations with external organisations based in the United Kingdom, the United States of America, Switzerland, Belgium and Japan. In this way they have cultivated good relationships with a number of international labour organisations and have become more aware of worldwide trends in trade union movements.

Labour Administration and Services

The Labour Department has an establishment of 1,644 and its services are continually expanding. Branch offices - all conveniently located in the urban areas and the New Territories - 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 is concurrently the Commissioner of Mines.

      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 14 divisions: administration, air pollution control, apprenticeship, development, employment services, selective placement, employment conditions, factory inspectorate, industrial health, labour relations, mines, prosecutions and training, training council, and employees' compensation.

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, it has not been necessary, so far, to resort to any of these provisions for the settlement of disputes.

54

EMPLOYMENT

      In 1980, 125 trade disputes were settled by the conciliation service provided by the Labour Relations Service of the Labour Department. These disputes led to 37 work stoppages, resulting in 21,069 working days lost, compared with 39,743 days lost in 46 stoppages in 1979.

       The Labour Relations Service also dealt with 12,555 labour problems in 1980. These were mostly grievances involving individual claims for wages in arrears, wages in lieu of notice, severance pay, annual leave pay and holiday pay.

The Labour Relations Service gained additional staff during the year to promote good labour-management relations through advisory visits to employers.

The Labour Tribunal, which is part of the Judiciary, provides a quick, inexpensive and informal method of settling certain types of disputes between employees and employers with a minimum of formality. The tribunal deals with claims of right, wherever possible in the language of the parties. It complements the Labour Relations Service and in no way supersedes the existing conciliation services of the Labour Department. During 1980, the tribunal heard 3,446 cases involving employees as claimants, and a further 371 cases in which the claims were initiated by employers. More than $8 million was awarded by presiding officers. Of the cases dealt with by the tribunal, 91 per cent were referred by the Labour Relations Service after unsuccessful conciliation attempts.

Finding Employment

The Local Employment Service of the Labour Department provides free placement services. It operates from 13 offices linked by a facsimile system through which information on employment opportunities is distributed. During the year, 28,235 people were success- fully placed in employment.

      The Labour Department's Special Register provides assistance to graduates of overseas and local universities and job-seekers who possess post-secondary or professional qualifica- tions. A total of 317 people found employment through this register.

A centralised Selective Placement Service for the disabled was established in the Labour Department in July. The service, initially, is providing assistance to physically handicapped job-seekers - including the deaf, blind and physically-disabled - but it will gradually be extended to cover the mentally disabled and the socially disadvantaged, whose placement needs in the meantime will continue to be met by the Job Placement Unit of the Social Welfare Department, the Employment Service of the Hong Kong Council of Social Service and voluntary agencies. During the year, a total of 113 people found employment through the Selective Placement Service.

Overseas Employment

The Contracts for Overseas Employment Ordinance controls contracts entered into in Hong Kong between overseas employers, or their authorised representatives, and all manual workers proceeding overseas for employment. Such contracts must be attested by the Commissioner for Labour before workers leave Hong Kong. During the year, 313 contracts were attested, compared with 398 in 1979.

Foreign Domestic Helpers

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, 7,914 such contracts were attested.

EMPLOYMENT

Employment Agencies

55

The Employment Agencies Regulations made under the Employment Ordinance require all profit-making employment agencies - unless they belong in an exempt category - to obtain a licence from the Commissioner for Labour before starting operation. From July 1, employment agencies dealing solely with domestic helpers, which had previously been excluded, were brought under the control of these regulations. During the year, the department issued 98 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 38 careers pamphlets and 100 occupations leaflets. The service also produces a monthly careers newsletter which is distributed free of charge to secondary schools, youth centres and other youth organisations.

In 1980, officers of the service gave 253 talks on careers to about 40,521 students in 182 schools. The service also organised 13 seminars and took part in 34 other activities to provide careers information to students, teachers, parents and interested individuals.

The service operates two careers information centres, one on Hong Kong Island and the other in Kowloon. Both centres have a careers reference library with approximately 1,100 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 ninth annual careers exhibition was held at the City Hall in November. Altogether, 20 exhibitors from commerce, industry and the government took part in the exhibition, which attracted some 100,612 visitors. In addition, four mini-careers exhibitions were staged on a specially-designed truck which 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. Together, these regulations provide for the health and safety of workers in factories, on building and engineering construction sites, and at other industrial undertakings. At the same time, advice and assistance are given to managements on guarding dangerous machinery parts, adopting safe working practices, and laying out new factories to achieve better working conditions. The inspectorate also investigates industrial accidents and other dangers.

-

The Factory Inspectorate, in conjunction with the Government Information Services, continued its long-term publicity programme to promote industrial safety through ex- tensive use of the news media. In March, an Industrial Safety Conference for Senior Management organised by the Labour Advisory Board Committee on Industrial Safety and Accident Prevention became the first conference of its type to be held in Hong Kong. To promote safety on construction sites, the department and the Construction Industry Training Authority jointly organised a construction safety exhibition at the authority's training centre at Kwun Tong in August. Then, in September, the department launched an industrial safety competition under the sponsorship of a local Chinese news- paper and a television station.

Throughout the year, the Industrial Safety Training Centre provided courses for students and workers from various industries.

56

Pressure Equipment

EMPLOYMENT

      The Boilers and Pressure Receivers Ordinance governs the use of steam boilers and compressed air containers and is administered by the Pressure Equipment Unit of the Labour Department. The unit also provides technical advice to the government and industry on matters relating to pressure equipment. The initial design scrutiny and physical inspection of pressure equipment is, however, carried out by engineers in the private sector. At the end of the year, about 50 engineers were Appointed Examiners under the ordinance.

      In March, the unit was given the additional responsibility of enforcing the Gasholders Examination Ordinance and Regulations which provide controls over the large containers used for storing town gas.

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 govern- ment 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.

      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 monitoring of workers, such as those handling fluoride and lead. It conducts analyses of samples taken for the purposes of environmental monitoring and is also responsible for the air pollution monitoring programme in Hong Kong.

Employees' Compensation

The Employees' Compensation Division of the Labour Department administers the Employees' Compensation Ordinance - which was re-titled from the Workmen's Compensa- tion Ordinance on November 1 - and the Pneumoconiosis (Compensation) Ordinance. The division ensures that injured employees and dependants of deceased employees covered by the Employees' Compensation Ordinance obtain from their employers, without undue delay, compensation in respect of injuries or death caused by accidents or occupational diseases arising out of, and in the course of, employment. It also ensures that people covered by the Pneumoconiosis (Compensation) Ordinance obtain compensation as soon as possible from a special fund.

EMPLOYMENT

57

       Important legislative changes came into force during the year with the enactment of the Workmen's Compensation (Amendment) Ordinance 1980. This ordinance was designed to implement the more immediate recommendations of the working party appointed by the Commissioner for Labour, in 1978, to carry out a comprehensive review of the Work- men's Compensation Ordinance. These included the extension of workmen's compensation to all employees; raising the various levels of compensation; making provision for an injured employee's age to be taken into account in assessing the compensation payable; requiring employers to be responsible for the repair and renewal of prostheses and surgical appliances originally fitted to injured employees; and revising the First Schedule to the ordinance concerning the percentage loss of earning capacity for various injuries. Further legislation is being drafted to implement the remainder of the recommendations made by the working party.

       The Pneumoconiosis (Compensation) Ordinance which was enacted in July - and the main provisions of which will come into operation on January 1, 1981 - introduces a revised pneumoconiosis compensation scheme, thereby repealing the Workmen's Com- pensation (Amendment) (No. 2) Ordinance 1978. It provides for the compensation of people suffering from silicosis and asbestosis. Compensation is to be paid from the Pneumoconiosis Compensation Fund financed by a levy imposed initially on the con- struction and quarrying industries. All people diagnosed as suffering from these diseases prior to the operative date of the legislation will be eligible for ex-gratia payments from the government.

Industrial Training

The Hong Kong Training Council was appointed by the Governor in 1973 to advise him on the measures necessary to ensure a comprehensive system of manpower training geared to meet the developing needs of Hong Kong's economy. On the council's recommenda- tion, the Governor appointed 10 industry training boards, 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 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 train- ing; 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 presently covered by the industry training boards and the other on technol- ogist training. The council submitted its sixth report to the Governor in July. The Training Council Division of the Labour Department is the secretariat of the council.

During the year, manpower surveys were conducted by the five industry training boards covering automobile repairs and servicing, electronics, machine shop and metal working, printing, and shipbuilding and ship repairs. An economy-wide survey was jointly conducted by the Accountancy and Allied Fields Training Board, the Wholesale/Retail and Import/ Export Trades Training Board and the Committee on Management and Supervisory Training, to assess the overall demand for trained personnel in their various fields. The

58

EMPLOYMENT

Committee on Technical Training in Institutions conducted a survey of employers' views on the part-time day-release courses offered by the Hong Kong Polytechnic and technical institutes. During the same period, 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.

The Clothing Industry Training Authority and the Construction Industry Training Authority are statutory bodies 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 Construction Industry Training Authority collects a levy based on the value of all construction work undertaken in Hong Kong. The revenues are 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 enter into a contract of apprenticeship when engaging an untrained young person, aged between 14 and 18 years, in a designated trade. The contract must then be registered with the Commissioner for Labour. Employers of apprentices engaged in non-designated trades, or of apprentices over 18 years engaged in designated trades, may also send their contracts of apprenticeship to the Labour Department for voluntary registration.

In August, the trade Hotel Cook (Western Style) became a designated trade, bringing the total number of designated trades to 37. 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 co-operating with technical education institutions to ensure that apprentices receive the necessary complementary technical education.

      In 1980, the Apprenticeship Division registered 5,019 apprenticeship contracts, of which 777 were for non-designated trades. These contracts covered 4,516 craft apprentices and 503 technician apprentices. By the end of the year, 10,389 apprentices were being trained in accordance with the Apprenticeship Ordinance.

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

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

5

摇菜味

Primary Production

產明瑩

HONG KONG produces a considerable amount of its own fresh food requirements such as vegetables, poultry, eggs, pigs and fish, even though the proportion of the working popula- tion involved in fishing and farming is less than three per cent.

      According to the United Nations Food and Agriculture Organisation, the territory 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. Local primary producers help to satisfy some of this demand, raising about 66 per cent of the total live chicken requirements and about 18 per cent of the live pigs slaughtered. Enough eggs are produced to make Hong Kong self-sufficient in eggs if it wished, with some 315,100 local birds and 33,900 hybrid birds being kept in breeding flocks in 1980.

The territory's fishing fleet of some 5,400 vessels catches about 89 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 9.4 per cent of Hong Kong's total land area is used for farming.

Agriculture and Fisheries Department

     The Agriculture and Fisheries Department encourages optimum land usage throughout the 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 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 recrea- tional 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 and those expected to prove both viable and in the interests of Hong Kong are encouraged. 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 and the projections are then related to local primary production capacity, both actual and potential.

60

PRIMARY PRODUCTION

      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 pollu- tion 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. To assist in the first objective, a new research vessel - the 36.6-metre long, locally-built Tai Shun was commissioned in the latter part of the year. The multi-purpose vessel is capable of staying at sea for 30 days and was built to a stern trawler design at a cost of over $10 million. It has a cruising range of 8.000 miles.

       The vessel will be used to conduct acoustic surveys of pelagic fish in the north part of the South China Sea to establish whether or not the stocks are capable of supporting commercial fishing. It will also carry out exploratory fishing on the edge of the northern continental shelf.

      Of the other facets of fisheries research going on, aquaculture is concerned with de- veloping more efficient culture systems; hydrographic investigations are designed to supply environmental information for an assortment of biological programmes; and marine pollu- tion research is primarily aimed at identifying the level of pollution and the principal indicators of various forms of pollution.

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 1980, there were 3,150 rotary cultivators and 2,050 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 1980, more than 4,750 farmers attended farm discussion groups led by professional and technical officers from the Agriculture and Fisheries Department. Some 88 field demonstrations of chemical weed control methods were conducted in the main vegetable-growing areas for the benefit of farmers. Officers also made more than 105,835 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.

سا

T

ABERDEEN

JUMBO

::

Tradition Survives

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==

2

برخورد

Fishing to live, and living to fish, has been the story of Aberdeen and its people for approximately 700 years. Even today, its links with the sea remain deeply en- trenched. The thrust of high-rise buildings, the signs of obvious prosperity, droves of tourists, and the continuing movement of the boat-dwellers to safer homes ashore, have not obliterated the essential character · of this port settlement on the south side of Hong Kong Island. Always, there is the enticing bustle of its harbour - seemingly choked with a conglomeration of junks, sampans, masts and rigging; the chugging of a motorised junk leaving or returning from open waters; the taste of salt in the air; a whiff of nets or fish drying, and the pervading smell of the sea. With a popula- tion that has grown to over 66,000, Aberdeen has a distinctive vitality which attracts many visitors for whom the sea- food at its internationally-renowned float- ing restaurants is a particular fascination. Closely allied with rapid development of the surrounding district including the important light industrial belt at Wong Chuk Hang- improved road access is moving swiftly ahead. On completion of the Aberdeen Tunnel late in 1981, travel- ling time from the crowded northern side. of the island will be significantly improved. Much-needed land has already been open- ed up by the new bridge link with the neighbouring island of Ap Lei Chau.

Previous page: Blazing lights from stem to stern, one of Aberdeen's huge floating restaurants awaits the evening's dinner crowd. Left: Tourists take a sampan ride; junk-building in progress at one of the many boatyards; Hong Kong Island's electricity is generated at the Ap Lei Chau Power Plant.

B

LI

ARK

.:

Age-old methods combined with modern innovations are greatly helping fishermen such as this one, seen aboard a junk in Aberdeen harbour artfully bonding pieces of synthetic line with his teeth.

A

2

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Contrasting the old and the new ways of life, a double-decker bus passes over the 320 metre-long Ap Lei Chau bridge, which was opened in March. Though barely a stone's throw from Aberdeen, the island residents previously lived relatively isolated lives.

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Motorists will be able to drive through the heart of Hong Kong Island when the Aberdeen Tunnel is completed around the end of 1981. Within moments, the high-rise urban landscape at the northern portals in Happy Valley (above), will give way to gentler vistas down the southern slopes, to Aberdeen, and out across the South China Sea.

191

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Above: Aberdeen's efficient fishing fleet brings in over 30 per cent of Hong Kong's total catch. Right: A youngster learns early to make a fishing net-

Left: An approaching storm brings a junk hurrying to shelter. Below: A boat moored at the fish market is readied for its next expedition.

     Above: Seafood hawkers offer a catch that is temptingly fresh and varied. Right: Sampans provide transport around the har-

bour.

-Left: Local girls still favour the typical headwear of the fisherfolk. Below Resi- dents are closeknit - here seven share a chat and a single umbrella.

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  Aberdeen's changing face is seen in dramatic perspective from The Peak. The bridge to Ap Lei Chau, the stalagmitic forms of high-rise housing, and the shifting of the three largest floating restaurants to Shum Wan- all emphasise the swing in focus to the southern reaches of Aberdeen harbour.

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PRIMARY PRODUCTION

61

arrangement is provided for fishermen, while experiments and demonstrations are conducted to test the suitability of new fishing gear. Fishermen's training classes in navigation, steering and engine operation are organised in the main fishing ports.

Education is available to the children of fishermen through 14 schools run by the Fish Marketing Organisation and, at the end of 1980, 3,927 children were attending these schools. A further 25 were attending other schools on scholarships which had been provided by the organisation.

Close contact with the fishing community is maintained through liaison with producer associations and fishermen's co-operative societies. Ten 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 Vegetable Marketing Organisation Loan Fund. All are administered through the Agriculture and Fisheries Department. On December 31, 1980, loans issued since the inception of these three funds had reached a total of $136.3 million. Of this, $128.4 million had been recovered.

The Fisheries Development Loan Fund, with a capital of $5 million, is administered by the Director of Agriculture and Fisheries specifically for developing the fishing fleet. Finance from the World Refugee Year Loan Fund for Co-operative Societies, donated by the United Nations High Commissioner for Refugees in 1962, also is available to members of fishermen's co-operative societies. The Fish Marketing Organisation Loan Fund, 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. On December 31, 1980, loans issued since the inception of these four funds totalled $95 million, of which $87.9 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. On December 31, 1980, some 11,729 farmers and more than 1,704 fishermen were members of co-operative societies formed to serve their various needs. There were 79 societies and two federations among the farming community, and 66 societies and four federations supported by fisherfolk. A further 253 societies with about 8,965 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, 60 credit unions with about 12,973 members were registered with the Agriculture and Fisheries Department. There were 30 credit unions comprising groups of people having a common bond of association; 24 unions of people having bonds of em- ployment; and six unions formed by groups each with a common bond of residence.

62

Land Usage

PRIMARY PRODUCTION

     Hong Kong's land area totals 1,060 square kilometres. Of this, 9.4 per cent is used for farming, 74.9 per cent is marginal land with different degrees of sub-grade character, and 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 agricul- tural 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

Percentage

Class

kilometres)

of whole

Remarks

(i) Built-up (urban areas)

166

15.7

Includes roads and railways.

(ii) Woodlands

125

11.8

(iii) Grass and scrub lands

624

58.8

Natural and established woodlands. Natural grass and scrub, including

(iv) Badlands

46

4.3

Stripped of cover. Granite country.

(v) Swamp and mangrove lands

1

(vi) Arable

81

7.7

(vii) Fish ponds

18

1.7

Plover Cove Reservoir.

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 $524 million in 1980 - a rise of 489 per cent. Vegetable production accounts for more than 87 per cent of the total value, having increased from $58 million in 1963 to $456 million in 1980.

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 gourd 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 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 especially for the Lunar New Year. The area of land under vegetables and flowers has increased from 910 hectares in 1954 to 3,180 hectares in 1980.

The amount of land used to cultivate rice has dropped from 9,450 hectares in 1954 to 30 hectares in 1980. 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.

PRIMARY PRODUCTION

63

      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 1980 it was 620 hectares.

       Other field crops such as sweet potatoes, taro, yams and sugar cane are cultivated in the remote and drier areas where water and transport facilities are inadequate for growing vegetables. Some 80 hectares were under rain-fed crops in 1980, 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 1980 amounted to $208.1 million.

      With an annual production value of $502 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 1980, local chicken production decreased by 5.9 per cent to about 15.4 million birds consumed, with an increase of 31 per cent in the number of live chickens imported from China. The value of hen eggs produced amounted to $43 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.

       The first case of rabies in Hong Kong for 25 years was reported on October 4, after an eight-year-old boy from On Po village in the New Territories died from the disease two months after being bitten by a dog. As a result, a 20-square-kilometre section of the New Territories was immediately declared a rabies-infected area and the movement of dogs in and out of the area was prohibited. Later, this zone was extended over a large part of the New Territories following the rabies death of a 75-year-old man in November. Up to the end of the year, 13 cases of rabies had been confirmed - two in people, one in a cat, and the remainder in dogs - and 390 square-kilometres of territory had been declared rabies- infected. From the onset, all branches of the Agriculture and Fisheries Department were mobilised in catching stray dogs and controlling the movement of dogs, including those on fishing vessels. As a further measure, the $15 dog-licensing fee was abolished to en- courage people to have their dogs inoculated.

      By the end of the year, 41,363 dogs had been humanely destroyed, while 80,780 had been licensed and inoculated against rabies.

      As standard practice, all imported dogs and cats, other than those from Britain, Aus- tralia and New Zealand, are subject to six months' quarantine. To reduce the number of potential vectors of rabies, stray dogs are caught and, if unclaimed, are destroyed under the rabies control policy. Any dog that bites a person is required to be detained for ob- servation in government kennels. In addition to the greatly increased publicity during 1980, 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.

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PRIMARY PRODUCTION

Fishing Industry Marine fish constitute 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.

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Total estimated production from the two major sectors marine capture and culture fisheries amounted to 194,560 tonnes with a wholesale value of $1,296 million in 1980. These figures represent increases of 2.5 per cent in weight and nine per cent in value com- pared with 1979. Local fishing activities were adversely affected by the high price of fuel oil which rose by 65 per cent during 1980, and this accounted for production increasing at a lower rate (2.3 per cent) than the 17 per cent growth rate achieved in 1979. 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 94 per cent are mechanised. There are four major types of fishing in terms of gear: trawling, lining, gill- netting and purse-seining. Trawling is the most important, accounting for 64 per cent or 68,900 tonnes of marine fish landed in 1980. The total landed catch of live and fresh marine fish available for local consumption in 1980 amounted to 83,020 tonnes, with a wholesale value of $507 million. This represented 89 per cent of the local consumer demand. Pond fish farming is the most important culture activity. Fish ponds covering 1,820 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 different carp species are cultured in the same pond, each deriving its food from a different source and so making the utmost use of 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 7,020 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 1980, live marine fish supplied by this activity from some 60 sites amounted to 760 tonnes valued at $38 million. A further 37 tonnes of cultured marine fish, valued at over $1 million, were destroyed by algal blooms which broke out in April, 1980, in Tolo Harbour and Mirs Bay in the New Territories.

Legislation was passed in January, 1980, to promote the orderly development of the marine fish culture industry in the limited sea area available.

Marketing

Much of the wholesale marketing of primary products - particularly fresh foods - is the responsibility of the Agriculture and Fisheries Department, and of the vegetable and fish marketing organisations administered by that department. During 1980, 29 per cent of the total quantity of locally-produced vegetables, and 74 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 (Mar- keting) Ordinance, which provides for a board to advise the Director of Marketing (the

PRIMARY PRODUCTION

65

Director of Agriculture and Fisheries). Its main concerns are transporting locally-produced vegetables from the New Territories to the wholesale market in Kowloon, providing marketing facilities, and supervising sales and financial 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 tertiary education scholarships to the dependants of farmers. During the year, 56,600 tonnes of vegetables valued at $132.4 million were sold through the organisation. The Fish Marketing Organisation operates under the Marine Fish (Marketing) Ordin- ance, which also provides for an advisory board. The ordinance provides for control of the landing, wholesale marketing, and the 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, with surplus earnings being channelled 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 awarding of scholarships for secondary and tertiary education.

In 1980, the wholesale fish markets handled 82,743 tonnes of marine fish, crustacea and molluscs which were sold for some $438 million. This included 1,100 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 government has brought a number of temporary wholesale markets into operation.

Mining

      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, six mining licences and two prospecting licences were valid for different areas.

      Kaolin, feldspar and quartz are mined by opencast methods. Most of the feldspar produced 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 regula- tions 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 delivery of explosives from government depots to blasting sites. In addition, it manages government explosives depots that provide bulk storage facilities for imported explosives.

A new commercial explosives manufacturing plant on Stonecutters Island, which com- menced operation in April, 1980, will ensure a steady supply of explosives to the busy construction industry. The consumption of explosives during 1980 reached a record level of 7,955 tonnes.

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XXD

Education

EDUCATION Continues to be one of the government's largest financial commitments, with some $2,943 million being spent in the category during the 1980-1 financial year. This represented 16.3 per cent of the total budget for the territory.

One of the major achievements in education in 1980, was the extension of compulsory junior secondary education to all children up to 15 years of age. Correspondingly, the power of the Director of Education to serve attendance orders on parents was enlarged, in September, to cover children up to the age of 15 years who have not completed Form 3. Free and compulsory education is now available to school-aged children for nine years - six years in a primary school and three years in a secondary school. 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 com- munity or because they choose to attend fee-charging schools even though free schooling is available.

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      The 1978 White Paper on the Development of Senior Secondary and Tertiary education envisaged the building of 14 secondary schools in addition to the 102 schools already in the building programme - to meet the target of providing subsidised Form 4 places for about 60 per cent of the 15-year age group in 1981. However, the increased demand for school places resulting from immigration has made it necessary to plan for an additional 14 schools, bringing the number of schools in the building programme to 130-64 of which have been completed. In the year under review, 10 new secondary schools were completed and they provided an additional 11,520 secondary places.

In line with the recommendations of the 1978 White Paper, the three Colleges of Educa- tion and the Technical Teachers' College introduced, in September, a new three-year full-time initial teacher education course for students with Certificate of Education quali- fications. In addition, a separately structured two-year full-time course was started at Northcote College of Education for students attaining at least Grade E in two subjects at the Advanced Level Examination.

To simplify the existing secondary school structure and improve the quality of secondary education, 54 non-profit-making schools, some of which were originally receiving a per caput grant, were included in a scheme of phased conversion to fully-aided status operating under a common code of aid. The conversion in the way of financing these schools is expected to be completed in September, 1982.

      A Junior Secondary Education Assessment Section was set up in the Education Depart- ment to implement the new system of selection and allocation for post-Form 3 education places which is to be introduced in 1981. Under this system, selection and certification will be based on internal school assessments made in accordance with a public monitoring test in the three basic subjects - Chinese, English and Mathematics. Allocation of subsidised

EDUCATION

67

Form 4 places will be on a territory-wide basis and will take account of parental choice of schools. To monitor this system, an advisory committee was appointed in September by the Director of Education.

       In April, the government published a Green Paper on Primary Education and Pre- Primary Services which emphasised quality improvement. In primary education, the Paper proposed the control of entry to Primary One level to eliminate competitive entrance tests; expansion of the activity approach to learning, stressing 'learning by doing'; reduction of class sizes; the re-training of teachers; and the establishment of class libraries. With regard to pre-primary education and child care, the paper proposed a fee assistance scheme for lower-income families with children in day-care centres and kindergartens; a reduction in the length of kindergarten courses from three years to two years, by phasing out 'baby classes'; reduction of the maximum class size from 45 to 30; and the expansion of in-service training for kindergarten teachers. The Green Paper, supported by comments from the public, will serve as a basis for firm proposals to be submitted in a White Paper to the Legislative Council in the 1980-1 session.

       Publication of the White Paper on primary education and pre-primary services will mark the completion of the current reviews of the Hong Kong education system. These started in 1974 with the White Paper on Secondary Education Over the Next Decade, and con- tinued in 1978 with the White Paper on Senior Secondary and Tertiary Education. It will now be possible, in 1981, to conduct an overall review of the entire system, to examine the coherence and effectiveness of the education service and to consider the priorities in its long-term development. The proposal for an overall review originated with the Board of Education, a statutory body whose function is to advise the Governor on educational

matters.

Kindergartens

In September, there were 761 kindergartens in Hong Kong providing pre-school education for 197,410 children in the three to five years 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 seminars, exhibitions, and a two-year part-time training course.

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, the primary school enrolment totalled 540,260 compared with 542,327 the previous year. In addition, 11,831 pupils attended night schools. During the past year, 13,368 primary places were provided in new and developing schools and more are being planned to meet the needs of developing areas, particularly in the new towns of the New Territories.

68

EDUCATION

      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 90,006 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 govern- ment and aided schools, private non-profit-making schools in receipt of per caput grants, and private independent schools in the 'bought places' scheme.

      Chinese is the language of instruction in most primary schools, with English taught as a second language. However, 11 junior schools -- eight operated by the government- subvented English Schools Foundation and three by private bodies cater for children. whose first language is English.

      During the year, the Student Guidance Scheme continued to expand. Fifty-six student guidance officers were providing a school social work service in 348 school sessions on the basis of one student guidance officer for about 3,000 pupils in urban schools, or 2,000 pupils in rural schools. It is planned that in two or three years, this service will eventually be extended to all primary schools.

Secondary Education

There are four main types of secondary schools - Anglo-Chinese secondary schools, Chinese middle schools, secondary technical schools and prevocational schools. The 321 Anglo- Chinese grammar day schools had enrolments totalling 386,531 (compared with 378,570 the previous year). They offer a five-year secondary course in a broad range of academic and cultural subjects leading to the Hong Kong Certificate of Education Examination. The medium of instruction is mainly English, although prominence is given to Chinese subjects taught in Chinese. Certificate of Education candidates with suitable results may enter a two-year sixth-form course to prepare for the Hong Kong Advanced Level Examination for admission to the University of Hong Kong. Most students also sit for the United Kingdom General Certificate of Education Examination at both ordinary and advanced levels.

In 1980, there were 87 Chinese middle schools accommodating 48,105 pupils, compared with 52,396 in 1979. Pupils at these schools also take courses leading to the Hong Kong Certificate of Education Examination. Instruction is mainly in Chinese with English being 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 for admission to the Chinese University of Hong Kong.

      Secondary technical courses were provided for 20,231 students in 23 schools. Ten of these schools are run by the government, 12 are aided and one is private. Instruction is in English with Chinese as a second language. Secondary technical establishments prepare their students for the Hong Kong Certificate of Education Examination, but emphasis is given to technical and commercial subjects. Suitably qualified candidates can continue their studies in Form 6 or at technical institutes, the Hong Kong Polytechnic, or the Technical Teachers' College.

      Prevocational schools are government-aided secondary schools basically offering three years of junior secondary education. Graduates of these schools may continue their educa- tion in the craft programmes offered by the technical institutes. From 1981, a small number of senior secondary classes will be provided for the more academically capable pupils to

EDUCATION

69

continue their education up to the Certificate of Education Examination level and later to proceed directly to technician programmes in the Hong Kong Polytechnic or the technical institutes.

       Prevocational schools provide students with a solid general education and an introduction to wide-ranging technical skills upon which future vocational training may be based. It is envisaged that, after completion of Form 3, about 60 per cent of prevocational students, will enter approved craft apprenticeship schemes with associated part-time day-release courses in a technical institute. Credit units are given by the institutes for technical subjects which have been studied in depth. In addition, direct entry into the second year of an approved craft apprenticeship may be given. This form of technical training is fully sup- ported by the Hong Kong Training Council and welcomed by industry. At present, there are 13 prevocational schools with a total enrolment of 9,720. A further 12 schools of this type are planned.

       A number of consultative arrangements aimed at providing additional avenues of com- munication between the Education Department, aided school management committees, and the heads and teaching staffs of both aided secondary and primary schools were introduced in the 1979-80 school year. These arrangements included small-group discussions between teacher representatives and senior officers of the Education Department; seminars of heads of aided primary schools; closer and more regular contact between area officers of the Education Department and heads and teachers of aided schools; and formal procedures for management-staff consultations in aided schools.

Special Education

The provision of special education continued to expand in 1980 in line with the objectives of the White Paper on Rehabilitation published in October, 1977. The number of special places for handicapped children increased from 22,722 to 26,017. There are 65 special schools three for the blind, four for the deaf, 20 for the physically-handicapped, 29 for the mentally-handicapped, eight for the maladjusted and socially-deprived and one for the slow-learning.

       In addition, there are 141 special and resource classes in ordinary government schools - 62 for the slow-learning, 36 for the partially-hearing, eight for the partially-sighted and 35 for the maladjusted; there are also 478 special and resource classes in ordinary aided schools - 446 for the slow-learning and 32 for the maladjusted. These special and resource classes (and a school for slow-learning children) are for the less severely handicapped. Their class ranges include both primary and junior secondary levels (Form 3). In addition, 1,254 less severely physically-handicapped children have been integrated into ordinary classes in government and aided schools. The progress of 900 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 an education for all mentally-handicapped children, irrespective of the degree of their handicap. In the past, they received less formal training in centres operated or sub- vented by the Social Welfare Department. However, since April, 1979, the Director of Education has carried out a phased takeover of responsibility to provide an education for these children. In 1980, 15 centres previously subvented by the Social Welfare Department were transferred to the Education Department.

       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 the course of the year, 293,759 children were provided with

70

EDUCATION

screening, assessment and remedial services by the Special Education Section of the Educa- tion Department. Of these, 250,582 primary school children underwent the group testing and screening programmes which included vision, audiometric and speech screening. Assessment and remedial services including adjustment groups, teacher and parent coun- selling, speech and auditory training, and speech therapy were also expanded substantially. Altogether, 43,177 children have benefited from these assessment and remedial services at the Education Department's special education 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 Educa- tion Section and local in-service courses are run for teachers in special schools and classes. During 1980, eight in-service training courses were run for teachers of handicapped children. They included courses for teachers of the blind and partially-sighted, the deaf and partially- hearing, the physically-handicapped, the slow-learning, the mentally-handicapped, the maladjusted and socially-deprived, and teachers who assist in speech therapy work. A total of 223 teachers enrolled in these courses during the year. In addition, short courses, seminars and workshops were organised by the Special Education Section for teachers in ordinary schools and for trainee-teachers at the colleges of education.

Technical Education

     Five technical institutes are run by the Education Department and a sixth is planned for the new town of Tuen Mun in the New Territories. These institutes provide courses at craft and technician levels on a full-time, block-release, part-time day-release and evening basis. The main subjects covered include: construction, electrical engineering, mechanical engineering, marine and fabrication, textiles and clothing, commercial 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 requirements of industry and commerce. During the first term of the 1980-1 academic year, there were about 3,000 full-time, 9,000 block-release and part-time day and 15,000 part-time evening students.

      A credit-unit system has been adopted for technician study programmes, chiefly to provide greater flexibility for the students. Programmes in the main disciplines such as electrical and electronic engineering, mechanical and production engineering, and building and civil engineering have already been validated by the Technician Education Council (TEC) in Britain, while validation for others is being sought. The programmes approved by the TEC enable successful students to obtain membership of a large number of pro- fessional societies, both locally and overseas.

During the 1980-1 academic year, about 50 handicapped students were enrolled in courses in technical institutes in line with the government's policy of helping to integrate the disabled into the community. The Technical Education for the Disabled Unit, estab- lished in 1979 in the Technical Education Division of the Education Department, has been actively engaged in the planning and development of technical education, vocational training and related supporting services for the disabled. In August, the unit assumed responsibility for the operation of the World Rehabilitation Fund Centre, in Kwun Tong, which provides technical and commercial vocational training for the disabled. An adviser from the International Labour Organisation came to Hong Kong in October to advise on the curriculum for this type of training. Meanwhile, progress was made in the preparation of a special code of aid for subventing vocational training centres operated by voluntary agencies.

EDUCATION

71

      A number of postal surveys were conducted to collect information from past and present students. These included an employment survey of former full-time students at technical institutes who left after completing the 1979-80 academic year, and an opinion poll on the courses attended by final year part-time day-release students. The industry training boards of the Hong Kong Training Council have also given advice on the curriculum of technical institute courses. These training boards have provided the institutes with up-to-date information leading to the provision of new courses and the revision of existing ones to meet the demands of industry and commerce.

Post-Secondary Education

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Three approved post-secondary colleges - the Hong Kong Baptist College, the Hong Kong Shue Yan College and Lingnan College - are approved and registered under the Post- Secondary College Ordinance.

The Hong Kong Baptist College, registered in 1970, has four faculties - arts, business, social sciences, natural sciences and engineering and has a total enrolment of 3,379 students.

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The Hong Kong Shue Yan College, registered in 1976, consists of three faculties - arts, social sciences and commerce with an enrolment of 3,159 students. The college has 11

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departments and offers day and evening courses.

Lingnan College was registered in October, 1978. It has three faculties for arts, business and music with an enrolment of 911 students.

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

In June, the government approved an increase in the rates of government assistance to Hong Kong Baptist College and Lingnan College, with retrospective effect from September, 1979. Government assistance was granted to the two colleges on their agreeing to restructure their courses in line with proposals set out in the White Paper on Senior Secondary and Tertiary Education.

In July, the government invited the Council for National Academic Awards in the United Kingdom to examine courses provided by the Baptist College and Lingnan College to determine their academic standard. This is in line with the White Paper's recommendation calling for independent assessments of the standards of the restructured post-Form 6 and Year 5 courses at the two colleges.

In addition, 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

Because of the importance attached to developing university and polytechnic facilities - and the sums of public money involved - the government relies on the University and Polytechnic Grants Committee, appointed by the Governor, to provide impartial and expert advice on the amount of finance required to develop or sustain any level of higher education activity. The committee also advises the government on the allocation of funds among the univer- sities and the polytechnic. Both universities and the polytechnic have some financial resources of their own, but are largely financed by the government.

       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

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     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 1980-1 academic year, $10 million in grants and $28 million in interest-free loans have been provided.

      The student finance scheme was extended to Hong Kong Polytechnic students in 1976-7. Some $1.6 million in grants and $17.8 million in loans were provided by the government for polytechnic students in 1980-1. The grants and loans are administered by the Poly- technic Committee on Student Finance.

      A Committee to Review Post-Secondary and Technical Education was established in November, 1980, to undertake an in-depth study of Hong Kong's higher education require- ments. This review was ordered by the Governor in Council in the light of advice from the University and Polytechnic Grants Committee and in response to concern expressed by the Advisory Committee on Diversification. The committee comprises both unofficial and official members and aims to report its findings in mid-1981.

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 Polytechnic has 17 teaching departments grouped under three divisions. The divisions are: the Division of Applied Science (comprising the departments 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 depart- ments of civil and structural engineering, electrical engineering, electronic engineering, industrial centre, mechanical and marine engineering, and production and industrial engineering). In addition, there are two institutes the Institute of Medical and Health Care and the Institute of Textiles and Clothing. A Centre of Environmental Studies began operating in January, 1980, to provide training in protecting and improving the environment. During the year, some of the polytechnic's diploma and certificate programmes were transferred to technical institutes run by the Education Department. This was in accordance with proposals contained in the government's White Paper on the Development of Senior Secondary and Tertiary Education.

      Presently, the polytechnic offers full-time, sandwich, part-time day release and part-time evening programmes of one to four years' duration. They lead to the awards of associateship, advanced higher diploma, higher diploma, diploma, higher certificate, certificate and other qualifications, and cover a wide range of both technical and commercial subjects. In addition, mixed-mode study programmes have been introduced under which students are permitted to take units in a suitable combination during the daytime and in the evenings. 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 prospectus published annually.

      Since 1972, student and staff numbers have increased tremendously. At the beginning of the 1980-1 academic year, there were approximately 7,200 full-time students (including sandwich programme), 3,400 part-time day release, 14,500 part-time evening and 200

EDUCATION

mixed-mode students. In July, the staff strength stood at 1,818

73

comprising 684 teaching,

177 senior administrative and 957 technical, clerical and ancillary staff.

Campus development progressed in 1980 with the construction of two wings adjoining the Tang Ping Yuen Building, which is expected to be completed by January, 1981. The new wings will comprise two floors of laboratories, studios and workshops (including the future Swire School of Design) beneath the podium, and six stories of classrooms, labora- tories and staff offices above it.

       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 1980, some 4,300 candidates sat for these examinations. In addition, the polytechnic 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, and advisory committees have been set up for every department, centre and institute. These committees have as appointed members prominent people from commerce and industry, the civil service and the universities, with wide knowledge and experience in their fields. Liaison and joint consultative committees have been formed with the Education Department, and these are aimed at achieving co-ordination between developments at the polytechnic and the technical institutes.

Regular contact is maintained with the two local universities as well. 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 poly- technic 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 Com- munity, giving details of the expertise and facilities available, is published regularly by the Polytechnic 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 Research Committee is responsible for overall research policies and the utilisation of research funds. A research handbook listing current and recently completed research projects undertaken by Polytechnic staff is to be published at regular intervals.

University of Hong Kong

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.

       The number of undergraduates registered in the various faculties and schools at the beginning of the 1980-1 academic year were: arts 1,102; science 649; medicine 849 (in- cluding 76 for dentistry); engineering 801; social sciences 815; architecture 247; and law 192. There were also 1,684 post-graduate students: 700 reading for higher degrees and 984 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

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of Doctor of Philosophy, Master of Philosophy, Doctor of Medicine, and Master of Surgery, as well as doctorates in Letters, Science, Social Sciences, Divinity, and Laws. Certificates and diplomas are obtainable in the fields of law, education, psychology, various engineering subjects, Chinese language, medical sciences, and management studies.

      The Faculty of Medicine contributes significantly to the higher professional training of registered doctors in Hong Kong. It also provides training for teachers of pre-clinical and clinical subjects from other medical schools in Southeast Asia.

In 1980, the Department of Extramural Studies provided 671 evening and day courses in a wide variety of vocational and professional fields for more than 20,000 adult students. The number of full-time teaching posts (including demonstratorships) at the university at the beginning of the 1980-1 academic year as 706.

      The number of volumes held in the university libraries in 1980 comprised 314,000 in the general library, 224,000 in the Fung Ping Shan Chinese Library, 50,000 in the medical library, 18,000 in the law library, and 3,000 in the dental library.

Research

     In the Faculty of Arts, research is progressing into aspects of both Chinese and English language and literature; comparative literature; 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 ecology of enterobacteria in Hong Kong waters; the physiology and metab- olism of fish with application to pond and marine culture; pathogens of local crop plants; parasites in humans and animals; the endocrinology of reproduction and foetal develop- ment; agricultural pests; the relationship between water stress and amino acid metabolism. in local crops; 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; the genetics of bacterial viruses and the molecular structure of their nucleic acids; 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; the identification of timber rots and studies of biodeterioration in stored foods; the study of hydrogen bonding by polar C-H groups; the use of multinuclear n.m.r. in structural investigations; the structure and reactivity of co-ordination compounds of elements such as rhodium, ruthenium, osmium and germanium with macrocylic ligands; the catalytic features of halides in various hydrocarbon reactions; the study of natural products of local origin and of fats and oils; the analysis of trace metals in local food products and the development of analytical methods suited to local problems; the develop- ment of synthetic methods for heterocyclic and natural products; pure mathematics; numerical weather prediction and application of operational research techniques; develop- ment of teaching materials for mathematics; the relation of local ionospheric and geo- magnetic phenomena to global variations; the cosmic ray flux in Hong Kong; data analysis and general theories of the origins of cosmic rays; methods of distinguishing and categorising gemstones; spectroscopic parameters of paramagnetic ions in crystals; and plasma theory, especially in relation to astrophysics.

The Faculty of Medicine is conducting research into a wide range of fields of both local and international interest, including cell and reproductive biology; the visual system; reproductive physiology; neurophysiology; endocrinology; temperature regulation;

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haematology; acupuncture; microvascular physiology; morbidity studies in households; studies of health care services; the growth and development of Chinese children; congenital diseases; common hereditary anaemias in Chinese; immune response to infections; pre- valence, aetiology and treatment of common malignancies in Hong Kong; bronchial asthma; diabetes mellitus; hypertension and heart disease; liver diseases; spinal deformities; blood coagulation factors; contraceptives and their relation to thrombosis; Chinese herbs; drug addiction; diseases associated with modern occupations and the environment; characteristics of battered children and their parents; and attempted suicide in Hong Kong. The Faculty of Engineering is conducting research into power apparatus; circuits and systems; electronics; data transmissions; solar energy; noise; mechanics; bio-engineering; soil and concrete; structural engineering; finite element analysis; traffic aspects; environ- mental engineering; biometric analysis of the Hong Kong adult population; industry- induced hearing loss; hot machining and grinding; and computer system design and operation.

In the Faculty of Social Sciences, research is being carried out on various 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. Research activities in the School of Architecture include transportation studies; energy and light analysis relating to buildings; computer application in space utilisation; the building industry with reference to construction cost, resources and industrial capacity; and preservation of Hong Kong's architectural heritage.

      In the School of Law, research in progress includes modern Chinese law; computerisation of the law; international commercial transactions and taxation; Chinese testaments; domestic violence; sentencing; personal injuries; comparative legal systems; and inter- national law.

       The School of Education received a grant of $179,200 from the Lotteries Fund to conduct the main IEA Survey of Mathematics which is taking place during the 1980-1 academic

year.

       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. In the past academic year, the centre formally instituted three seminar programmes in these areas to facilitate group research and to form a valuable link with the teaching function by enriching the courses offered at the university. The centre also acts as a base for overseas visitors and with their co-operation encourages the development of research and teaching activities. Publications include the Journal of Oriental Studies, which deals with a wide range of topics in the centre's fields of interest, and a monograph and research guides series, which often reports the results of research conducted through the centre.

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.

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      Undergraduate enrolment in September, 1980, was: arts 1,053; business administration 912; science 1,248; and social science 1,231. In addition, 638 students were enrolled in graduate programmes and 98 students and scholars from overseas attended the International 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 5,000 students fulfilled the entrance requirements in 1980. Of these, 1,185 were admitted for the 1980-1 academic year.

The university's four faculties - arts, business administration, science, and social science - offer a wide range of four-year programmes leading to Bachelor degrees. The graduate school offers courses of advanced studies and research, through 20 divisions, leading to the degrees of Doctor of Philosophy in Humanities and Science; 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 pro- fessional 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 1,196 students graduated from the university in 1980. They included 56 Masters of Philosophy, 57 Masters of Business Administration, four Masters of Arts (Education), one Master of Divinity, two Masters of Social Work, 256 Bachelors of Arts, 235 Bachelors of Business Administration, 267 Bachelors of Science and 318 Bachelors of Social Science. Thirty-seven of the Masters of Business Administration graduates belonged to the first graduating class of the three-year part-time MBA programme, which was established with generous grants from local business leaders.

The Department of Extramural Studies offered more than 1,000 general, certificate, correspondence and radio courses in many subjects. Most courses are conducted in Cantonese or Mandarin. The Department launched five courses by newspaper in 1980 in collaboration with six leading Chinese and English newspapers. The overall enrolment was 31,112.

The library system comprises the university library and three branch libraries at the colleges. Library holdings in 1980 were: 352,412 volumes in Oriental languages; 322,618 volumes in Western languages; and 4,559 current periodical titles.

Building projects completed during the year included an academic building, a building for the estates and maintenance activities, and two blocks of staff residences. The university's multi-purpose auditorium was almost completed while a sports centre and two additional blocks of staff residences were under construction.

During 1980, considerable progress was made towards preparing the Faculty of Medicine for the admission of its first students in 1981. A Medical Admissions Committee was set up under the Chairmanship of a University Council member to advise on all policy matters concerning the admission of medical students. The basic medical sciences building was nearing completion at the end of the year and construction work began on the hospital at Sha Tin (to be named the Prince of Wales Hospital), which will serve as the teaching hospital for the faculty. Progress was also seen in staff recruitment and a number of proleptic appointments of Chairprofessors were made. Various donations were received for establish- ing a research fund, acquiring books for the library and teaching aids, and providing bursaries, scholarships and prizes.

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Research

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In addition to the research programmes conducted in each department, there are four research institutes - the Institute of Business Management Studies, Institute of Chinese Studies, Institute of Science and Technology, and the Institute of Social Studies and the Humanities. They promote inter-disciplinary research in each faculty, with particular emphasis on projects with long-term regional significance or applied value, to supplement the research of each department.

Various research centres established 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, economic research, communication studies, social research, East Asian studies, public affairs research and geographical research.

      During the 1979-80 academic year, the university hosted a number of major international conferences. They included an international symposium on Sino-Japanese cultural inter- change; the Fifth Biennial General Meeting of the Southeast Asian Mathematical Society; a conference on recent advances in mathematics and its applications; the Hong Kong Conference on East-West Comparative Literature; a seminar on China: Modernisation and Diplomacy; a seminar on plants for fertility regulation; and an international seminar on public relations education and training.

Teacher Education

Teacher education, except for technical teacher training, is provided at the Education Department's three Colleges of Education - Grantham, Northcote and Sir Robert Black. With effect from September, 1980, all three colleges introduced a new three-year full-time course. This course replaced the traditional two-year course, which was designed to produce non-graduate teachers, qualified to teach in primary schools and the junior forms of secondary schools. A separately-structured, two-year, full-time course was started at Northcote College of Education for students who have obtained Grade E, or above, in two or more subjects in the Hong Kong Advanced Level Examination. The three colleges also offer Advanced Courses of Teacher Education for both trained serving teachers and students who have just completed an initial, full-time course. Part-time, in-service training courses are also provided for primary and secondary school teachers. In September, there were 478 students in the three-year course, 94 students in the new two-year course, and 1,024 in the in-service training courses and advanced courses.

Financial assistance in the form of interest-free loans and maintenance grants is provided by the government for students enrolled in the full-time courses. The maximum maintenance grants and interest-free loans to college students are $2,000 and $2,400 per annum, respectively.

      Technical teacher training is provided at the Hong Kong Technical Teachers' College. The college trains technical teachers for secondary schools, prevocational schools and technical institutes. Three regular courses are offered. A one-year full-time course is available for mature students who are well qualified and experienced in a technical field and have decided to take up technical teaching as a career. Generous grants are offered to attract such suitable recruits from commerce and industry. A two-year, full-time course for secondary technical school-leavers will be phased out by July, 1982, and replaced by a three-year full-time course. The college also provides in-service courses for teacher training, and courses for supervisors and instructors employed by industry.

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Adult Education

EDUCATION

     The Adult Education Section of the Education Department provides a wide range of courses and recreational activities for adults and young people who no longer attend formal education courses in day schools. These courses and activities are provided by the Evening School of Higher Chinese Studies, the Evening Institute and 15 Adult Education and Recreation centres.

The Evening School of Higher Chinese Studies offers a three-year diploma course in general arts for secondary school-leavers wishing to further their studies in Chinese litera- ture, philosophy and sociology. It also offers short courses of three to six months' duration in various aspects of Chinese classics and culture. At post-secondary level, teachers' courses provide additional in-service professional training in the teaching of English in junior secondary forms, English in primary schools, mathematics in junior secondary forms, physical education in secondary schools and a variety of creative subjects.

The Evening Institute offers courses, in 120 centres, ranging from literacy to secondary and post-secondary studies. A general adult education course provides fundamental and elementary education at primary level to meet the educational needs and interests of adults. Parallel to this are practical courses to teach adults such domestic skills as sewing and knitting, and woodwork. There are also three courses at secondary school level for adults the young people's course, the secondary school course and the middle school course the last two of which prepare students for the Hong Kong Certificate of Education Examina- tion. To improve proficiency in English, an English course is offered from Primary 4 to Form 5 at which level adult students are prepared for the English Language paper (Syllabus B) of the Hong Kong Certificate of Education Examination. Classes of Form 6 standard are organised to provide further training and practice in the use of English.

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The 15 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 other government departments, such as the Royal Hong Kong Police Force, the Urban Council and Urban Services Department, and Radio Television Hong Kong. During the year, about 24,000 people were enrolled in the formal courses and about 22,000 in the non-formal courses.

The 1978 White Paper on the Development of Senior Secondary and Tertiary Education recommended that government subventions should be made to voluntary agencies to run adult education projects that would complement and supplement the Education Depart- ment's own retrieval adult education courses. In August, a government contribution was made towards staff costs and essential equipment to assist non-profit-making organisations to launch selected experimental projects.

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 evaluates textbooks and instructional materials; it also carries out educational research and guidance and curriculum development. Close liaison is maintained with the universities, the Hong Kong Polytechnic, the post-secondary colleges, the Hong Kong Examinations Authority, other government departments, the British Council and the Consumer Council.

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      During 1980, the various subject committees of the Curriculum Development Committee (CDC) 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 the implementation of new or revised syllabuses were organised for primary and secondary teachers and heads. Numerous CDC journals, newsletters, bulletins and pamphlets were published for distribution to schools to keep teachers abreast of new developments in various subject areas.

      The activity approach in which primary schools are encouraged to adopt a less formal and more child-centred approach to learning, or 'learning by doing' continues to be accepted by teachers as a means to improve teaching in primary schools. During the year, special courses, seminars, workshops and exhibitions were organised for heads and teachers implementing this approach.

      The Textbooks Committee continues to give positive guidance to schools on the selection of books. A comprehensive list of recommended textbooks for kindergartens, primary and secondary schools is issued once every three months (March, June, September and Decem- ber). In an effort to improve the quality of textbooks, the committee maintains close links. with publishers of educational material.

The Geography Section of the Advisory Inspectorate organised a micro-climate survey in September. Over 130 secondary schools took part and a report of the results was compiled. The survey was useful because it not only provided a source of primary data on environ- mental pollution in Hong Kong but also helped students to gain valuable information and experience in the areas of geography and the environment.

Teaching Centres

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

During the year, the Chinese Language Teaching Centre conducted some 35 refresher courses and workshops, which were attended by about 1,400 teachers. The teaching re- sources unit of its Kowloon Centre was open to teachers of primary and secondary schools on Wednesday afternoons and Saturday mornings. Both primary and secondary schools benefit from the centre's free service for dubbing teaching tapes.

The English Language Teaching Centre organised 45 intensive courses, workshops, seminars and guest talks for 2,182 teachers during 1980. Nearly 400 follow-up visits were made to teacher participants, and a survey of the problem of mixed-ability classes was carried out. Over 2,000 language teaching tapes were issued to 88 schools. The centre has a specialist library containing 5,426 books on English language teaching and linguistics, and a display room for exhibiting modern English-teaching aids.

The Field Studies Centre, located at the Sai Kung Outdoor Recreation Centre, was established in 1979 to enable 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 pro- vided. The course programme is predominantly academic but recreational activities such as swimming, rope-work, archery and roller-skating are included. Orientation courses for secondary school teachers are also held. More than 1,000 students and over 300 teachers have attended these courses.

      In anticipating the introduction of computer studies into the secondary school curriculum in 1981, the Mathematics Section in co-operation with the Chinese University of Hong

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Kong and the Hong Kong Polytechnic - organised a number of in-service courses during the year. The courses covered such areas as programming techniques and the effective use of electronic calculators and microcomputers in classrooms.

       The Science Teaching Centre encouraged the construction of simple apparatus in science teaching by holding 11 workshops for 300 secondary science teachers and laboratory technicians; additionally, 19 courses, workshops, seminars and meetings were held for 1,000 primary school heads and teachers. Displays of resource materials for teaching physics, chemistry, biology, integrated science and primary science attracted hundreds of interested teachers to the centre throughout the year.

       The Social Subjects Teaching Centre provides in-service training for teachers of history, economics, economic and public affairs, geography, health education and social studies. In 1980, more than 500 secondary school teachers attended courses provided by the centre, which has a variety of reference and teaching materials on display. It is planned to further develop these resources. In particular, reading facilities will be strengthened to assist teachers of social studies in Forms 4 to 5.

Visual Education Centre

The Visual Education Centre continues to make available a wide range of audio-visual aids for use in schools. Its stocks include 16 mm films, filmstrips, slides, audio-cassette tapes, overhead transparencies, video tapes, learning packages and picture sets. Instructional hardware, such as projection equipment and sound recorders, is also available for loan to schools.

      Audio-visual techniques were demonstrated at nine in-service teacher training pro- grammes and 16 follow-up workshops during the year. These were attended by some 3,200 teachers. A series of seminars for 145 secondary school audio-visual co-ordinators provided further opportunities for sharing experiences and exchanging ideas. Teachers also made full use of the facilities of the Media Production Services Unit throughout the year.

Cultural Crafts Centre

The Cultural Crafts Centre of the Education Department has well-equipped workshops and provides opportunities for teachers from both primary and secondary schools to improve their teaching skills in art and design, craft and home economics. It organises in-service courses, workshops and seminars and in 1980 these were attended by some 2,000 teachers. Exhibitions of pupils' work arranged at the centre were very well attended.

       The Art Section gave advice and assistance to local organisations and schools in arranging competitions and exhibitions. It also organised the selection of local entries for students' art exhibitions and competitions in the United Kingdom, Korea, Finland and Japan. In July, the Young Artists of the Commonwealth Exhibition became the first international youth art exhibition to be held in Hong Kong. Presented jointly by the Art Section and the Hong Kong Arts Centre, the exhibition was originally organised and sponsored by the Commonwealth Institute, London, and before coming to Hong Kong the exhibits were on display in London and Edinburgh. Of the 154 paintings in the exhibition, 31 were by Hong Kong students.

      The Home Economics Section arranged 16 in-service courses and two seminars during the year and work commenced on a second series of standardised Chinese recipes for secondary schools. When completed, the recipes will be on sales at the Government Publications Centre.

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Special features of the in-service programme for music teachers during 1980 were courses on the Carl Orff Schulwerk System and the Kodaly Choral Music Method. Both were conducted by overseas experts. One hundred and twenty teachers attended the Orff music and movement course organised by the Advisory Inspectorate, in conjunction with the Goethe Institute and the Hong Kong Arts Centre, as part of the centre's Festival of Youth and the Arts programme. One hundred and fifty teachers attended the two-month Kodaly course which introduced the principle of the Kodaly Method and demonstrated how this form of structured music tuition could be applied in Hong Kong.

Physical Education

      The Physical Education Section is responsible for conducting regular school visits, training courses and seminars to improve the quality of physical education teaching in primary and secondary schools. Activity programmes for normal and special schools are also organised. These include swimming, dancing, canoeing, gymnastics, camps, and participation in the Duke of Edinburgh's Award Scheme.

      In August, the Hong Kong Schools' Dance Team - organised by the Education Depart- ment - participated in the First Commonwealth Film and Television Festival in Cyprus, and the Israel Arts Festival. The team members, comprising 12 dancers and three officials, were part of a larger group of young Hong Kong artistes making the tour. They proved to be excellent ambassadors for Hong Kong and their dance performances were very well received.

      With a subvention of approximately $300,000 from the Hong Kong Government and $750,000 from the Royal Hong Kong Jockey Club, the Physical Education Section of the Education Department was able to organise a large summer recreation programme for over 270,000 school children.

Community Youth Club

Participation in Community Youth Club activities doubled during the 1979-80 school year with 460 activities being organised for 98,505 young people.

       These activities were aimed at helping students to become more aware of community affairs and their civic rights and responsibilities, and included visits to places of interest, exhibitions, competitions, talks, seminars and community service projects.

       Two pilot CYC District Committees formed during the 1978-9 school year proved very successful in promoting the movement, and they have now been established in five districts, Each committee is composed of the heads of schools in the district.

       The CYC Section of the Education Department administers the Luen Yi Scheme, under which two schools - generally an urban secondary school and a rural primary school - are paired, giving them an opportunity to co-ordinate and arrange exchange visits and extra- curricular activities.

      In February, 64 schools participated in the joint school visits to Ocean Park and 36 schools took part in the Inter-school Telegames Day.

School Library Scheme

School library services continued to improve under the direction of an increased number of librarians and greater financial assistance. In August, 1979, approval was given for secondary schools in the public sector with 18 classes or more to have a teacher librarian

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of the non-graduate grade. Then, from September, 1980, the library grant was raised to $10 per pupil per year for all government and aided secondary schools, irrespective of their size.

A basic training course was organised jointly by the Education Department and the Hong Kong University Extra-mural Department for newly-appointed teacher librarians. in September, 1979, and an Exhibition on School Library Activities was held in May, 1980.

Educational Television

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 are also provided. Evaluations supplied by teachers, ques- tionnaires, visits to schools by ETV producers and inspectors, and reports from inspectors of the Advisory Inspectorate have resulted in many improvements to ETV since its inception in 1971.

      Primary school ETV programmes cover the four basic subject areas of Chinese, English, mathematics and social studies taught at Primary 3 to 6. Secondary school programmes are produced for Forms 1 to 3 in the same four subjects, plus science.

From mid-1979, colour television receivers have been purchased to replace, by stages, the existing black and white receivers in government and aided primary schools. In 1980, a further 680 primary schools were provided with new colour receivers and video cassette recorders. Secondary schools already have this equipment.

ETV's total audience during 1980 was estimated at 270,000 secondary and 340,000 primary school students.

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, the Hong Kong Higher Level Examination in 1979, and the Hong Kong Advanced Level Examination in 1980. Altogether, 120,221 candidates entered for the Hong Kong Certificate of Education Examination in 1980; 21,407 candidates entered for the Hong Kong Higher Level Examina- tion; and 12,164 candidates entered for the Hong Kong Advanced Level Examination.

The authority has also assumed responsibility for conducting a large number of overseas examinations on behalf of various examining bodies in Britain and elsewhere. These examinations include the General Certificate of Education, the Test of English as a Foreign Language and many others which enable students to acquire academic and professional qualifications. Appendix 21 lists the more important examinations held in Hong Kong in the past three years and the number of candidates who sat for them.

Hong Kong Students in Britain

The Students Division of the Hong Kong Government Office in London is responsible for providing assistance for and promoting the interests of Hong Kong students and nurses-in- training while in Britain.

      This division works closely with the Education Department and other government departments in Hong Kong. It monitors developments in education in Britain which may affect the welfare of Hong Kong students. For this purpose the division maintains close

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relations with educational institutions, departments of the British Government, local education authorities, the British Council, welfare organisations and, in the case of nurse trainees, the medical authorities.

The main development affecting students during the year was the increase in fees for overseas students in universities, polytechnics and colleges of further education.

The Hong Kong Students' Centre in London is a residential and social centre with accommodation for 90 people. The Hong Kong Commissioner in London administers the centre through a warden, who in turn is assisted by an advisory board which includes two student representatives.

Hong Kong Students Overseas

The Overseas Students and Scholarships Section of the Education Department gives advice to students wishing to further their education overseas and supplies information on educa- tional establishments in Britain and other countries.

Altogether, 4,255 students went to Britain during the year; 3,589 went to Canada for secondary or higher education; 2,765 to the United States and 155 to Australia.

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Health

IN the decade ahead, Hong Kong will see the fruits of a far-reaching and vigorous medical development programme involving the construction of six hospitals of over 1,000 beds each and more than 20 clinics and polyclinics in the new towns and population centres. Included in this programme is the establishment of a new teaching hospital for the territory's second medical school at the Chinese University of Hong Kong, three additional general nurse training schools and a new dental teaching hospital.

Expansion programming of these dimensions has become essential as the government gears its social services towards meeting heavier demands created by the sudden and dramatic increase in population. The high level of immigration during 1980, in particular, has given the Medical and Health Department an unprecedented increase in the pressure of work on all fronts.

Nevertheless, it was a year of both intense activity and significant progress. Several major projects were completed. Construction work finished on the South Kwai Chung Hospital, which is to provide 1,336 beds for treating the mentally ill; the Prince Philip Dental Hospital accepted its first intake of 76 dental students (who will be ready to serve the public by 1985); and the Kwong Wah Hospital gained an 11-storey wing to accommodate clinical pathology, occupational therapy and physiotherapy departments, an orthopaedic ward, prosthetic- orthotic unit, and an extension of the X-ray department. Also completed were the Fanling Hospital extension - providing an additional 50 beds, a casualty department, a general out-patient department and a family health centre to serve residents of the northeast New Territories; the Lek Yuen Health Centre at Sha Tin - consisting of a general out-patient department, a family health centre, the department of community medicine of the Chinese University, a public health laboratory, a health education centre and regional office; and the pre-clinical building for the medical school of the Chinese University of Hong Kong. Other major projects which were under construction, or being planned, included a 1,400-bed hospital and polyclinic at Sha Tin (due to be completed by September, 1982), a 1,300-bed hospital for the Tuen Mun new town, a health centre at Lei Muk Shue and an extension to the Wong Tai Sin Infirmary.

The hospital and polyclinic at Sha Tin - to be named the Prince of Wales Hospital - will serve as a regional hospital for the eastern New Territories and a teaching hospital for the medical school of the Chinese University of Hong Kong, while the hospital at Tuen Mun will serve as a major acute hospital for the western New Territories.

The Lei Muk Shue Clinic is expected to be completed in 1981. It will consist of a general out-patient department, a family health centre and a maternity home. The Wong Tai Sin Infirmary extension will accommodate an additional 300 beds.

Throughout 1980, significant improvements were achieved in the many categories of

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health services in Hong Kong - notably, in family health, school health, mental health, occupational health, port health, the control of communicable diseases, community nursing and psychiatric community nursing.

       To promote adequate standards of practice among the paramedical professions, new legislation was introduced to control medical laboratory technicians, radiographers, physiotherapists and occupational therapists, while in another area, amendments were made to the Pharmacy and Poison Ordinance to tighten controls over the export and import of pharmaceutical products.

       For the 1980-1 financial year the Medical and Health Department's estimated expendi- ture is $827.7 million. In addition, subventions totalling about $444.5 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 $245.9 million.

Health of the Community

      Hong Kong people continue to enjoy good general health, assisted by improvements in promotive, preventive, curative and rehabilitative health measures which have contributed to low mortality rates and a decline in the incidence of major communicable diseases.

The main causes of death are various forms of cancer, heart disease and cerebrovascular disease. The low infant mortality is attributed to continuing improvements in family health care as well as widespread advances in environmental and socio-economic conditions.

No quarantinable diseases were reported in 1980.

       Toward the end of the year, two cases of rabies occurred in remote villages in the New Territories, thus terminating Hong Kong's long record of being free from the disease. In October, an eight-year-old boy died after being bitten by a dog about one month earlier. His death was the first locally-originating fatality from rabies in 25 years. Some weeks later, in November, a 75-year-old man also died after he was bitten by his own dog.

       Following the death of the boy, the Agriculture and Fisheries Department took swift action on a number of fronts: it stepped up stray dog patrols, urged people to come forward to have their dogs inoculated free of charge, and created a restricted zone under which the movement of dogs was prohibited into and out of the area in the New Territories where the first case had occurred. Later, this zone was extended in stages over a 390 square- kilometre area of the New Territories following the rabies death of the elderly man and of 10 dogs and a cat.

The Medical and Health Department carried out additional measures to protect the population. These included setting up a medical advisory committee on rabies - consisting of professorial staff from the University of Hong Kong Medical School and consultants of the government medical services - and the designation of five centres for the pre-exposure prophylaxis and post-exposure treatment of the disease.

The incidence of tuberculosis and the number of deaths resulting from it continued to fall. With the BCG vaccination coverage of new-born babies now almost 99 per cent, tuberculosis among young people is rare.

There was an increase in the number of viral hepatitis cases in line with a pattern of upsurge every three years.

Venereal diseases continued to be treated free of charge at social hygiene clinics. Together with ante-natal blood testing, contact tracing and follow-up of defaulters, effective control has been maintained over sexually-transmitted diseases.

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       Anti-malarial measures such as oiling, draining and clearing of streams are still carried out although malarial transmission has practically ceased in Hong Kong.

       A rubella immunisation programme, introduced in 1978, continues to be directed at girls aged 11 to 14 years and women of child-bearing age.

Hospitals

There are three types of hospitals in Hong Kong - government, government-assisted, and private - with a total of 20,806 beds representing 4.1 beds per thousand of the population (institutions operated by the Armed Forces are not included). The four major regional hospitals are the Queen Mary, Queen Elizabeth, Kwong Wah and Princess Margaret hospitals.

Queen Mary Hospital, with 1,183 beds, is the regional hospital for Hong Kong Island. It is also 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 eastern 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 western 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, have been brought up to more than 80 per cent.

       In 1980, more than 500,000 patients were treated in the 12 government and 21 government-assisted hospitals.

Clinics

Out-patient services provided by the government, subsidised organisations and private agencies are being continually developed. The government operates 53 general out-patient clinics, 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 1980, 390 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 302 clinics were exempted from this requirement. Registered medical practitioners set up clinics in housing estates through the Estate Doctors Association Limited.

Total attendance figures at government out-patient clinics came to 13 million in 1980.

Family Health

The Family Health Service operates 38 centres, each of which provides a comprehensive health care programme for women of child-bearing age and children up to five years. Family planning is an important component of the Family Health Service. Ante-natal and post-natal health consultation sessions are conducted for mothers. Immunisation pro- grammes are carried out against diseases to which children are particularly vulnerable.

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      A Comprehensive Observation Scheme introduced in 1978 to detect and assess early developmental abnormalities, and where necessary to provide follow-up treatment, is now available at 38 Maternal and Child Health centres. Children attending these centres may be referred to child assessment centres staffed by specialists from various assessment fields, including paediatricians trained in child development and assessment, clinical psychologists, medical social workers, physiotherapists, occupational therapists, speech therapists and audiology technicians. This system enables rehabilitation processes to commence as early as possible. An expansion programme to set up more child assessment centres is now in progress. In Hong Kong, 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 18 clinics which provide vasectomy, female sterilisation and sub-fertility services, as well as giving advice to young people. It conducts educational programmes for school and community agencies; runs training programmes for midwives, teachers and social workers; organises information and publicity campaigns; and carries out clinical trials and surveys.

       The combined efforts of staff in the Family Health Service, the Comprehensive Observa- tion Scheme and the Central Health Education Unit, along with the high standards of obstetrical and paediatric care, have largely contributed to the placing of the health status of Hong Kong children amongst the highest in the world. The infant mortality rate for the territory has dropped over the past 25 years from 73.6 per thousand live births to 11.8 per thousand.

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 $5 a year, school-children can receive free medical treatment. The government contributes $30 a year for each pupil enrolled and also finances the board's administrative expenses. 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 make routine inspections and health officers immunise school-children against childhood infectious diseases. Rubella vaccination has also been included in the school immunisation programme.

Mental Health

The major event in the Mental Health Service in 1980 was the opening of the 1,336-bed psychiatric hospital at South Kwai Chung. Built on an 11-hectare site near the Princess Margaret Hospital, the new hospital is expected to relieve pressure on the Castle Peak Hospital. The psychiatric unit at Kowloon Hospital and the university psychiatric unit at Queen Mary Hospital also provide comprehensive psychiatric services in a general hospital setting. Having regard to the modern, universal trend in hospital development, future psychiatric units will be incorporated in general hospitals along with other specialised treatment units. The Mental Health Service operates on a multi-disciplinary approach comprising both medical and para-medical staff, such as clinical psychologists, medical social workers and occupational therapists.

      Supplementing hospital treatment are five day-centres - the Hong Kong Psychiatric Centre, the psychiatric unit at Kowloon Hospital, the Yau Ma Tei Psychiatric Centre, the Chai Wan Psychiatric Centre and the South Kwai Chung Psychiatric Centre. They provide occupational, social and recreational therapy. Severely mentally-handicapped patients are

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cared for at the Siu Lam Hospital. In 1979, completion of the Caritas Medical Centre extension provided 288 additional beds for mentally-handicapped children who require hospital treatment.

       The government plans to expand facilities for the mentally ill by providing a further 1,700 psychiatric hospital beds by the end of the decade. In addition, six psychiatric out- patient clinics and 300 day-centre places will be made available in the next six or seven years.

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.

Under the Pneumoconiosis (Compensation) Bill 1980, enacted in July, a fund is to be set up to compensate people incapacitated as a result of pneumoconiosis, and the depend- ants of those who die from the disease. The fund is to be financed by a levy on the major trades and industries initially on the construction and the quarrying industries which the great majority of pneumoconiosis cases are attributable.

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       Also in July, the Workmen's Compensation Ordinance was amended to make employers of people disabled at work liable for the cost of repair and renewal of prostheses and surgical appliances for a period of 10 years from the date of the initial fitting; thereafter, such costs are to be borne by the government.

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

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

Dental Service

Two major events took place in 1980 - establishment of the School Dental Care Service and the commissioning of the Prince Philip Dental Hospital. The service to schools will provide primary dental care to school-children and promote greater knowledge of dental health and hygiene. The scheme commenced in September after the first group of 30 dental therapists completed their training at the MacLehose Dental Centre in Wan Chai. The centre includes a training school for dental therapists and hygienists and a school dental clinic. Six more school dental clinics are being planned on a regional basis.

An important milestone was reached with the commissioning of the Prince Philip Dental Hospital which will provide full training courses for dentists. The first intake of 76 students will be ready to serve the public by 1985.

       The government's Dental Service provides dental care for all monthly-paid government servants and their dependants, as well as simple dental treatment for the inmates of penal institutions and specialist treatment for patients in government hospitals. Emergency treatment is also provided for the public at a limited number of centres. With the opening of the Prince Philip Dental Hospital, a limited 'walk-in' service will be available.

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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 vaccina- tion 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 inflow of boat refugees from Vietnam, Hong Kong remained free of all major quarantinable diseases.

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

Refugees

In 1980, the continuing influx of Vietnamese refugees further stretched the Medical and Health Department's resources. Emphasis was placed on preventing the importation of quarantinable diseases, especially plague, and preventing the spread of communicable diseases among the refugees and to the general population. Vigorous immunisation cam- paigns and health education programmes were conducted in all refugee camps. Health screening, including chest X-ray examinations, was carried out for new arrivals and a clinic was set up in the Canton Road Reception Centre for this purpose.

      Voluntary agencies co-operated with the running of camp clinics and the services of government specialists and hospitals were available to refugees upon referral. As a result of the efforts made by the government and the voluntary sector, the health status of the refugees improved significantly during their stay in Hong Kong.

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 radio- therapy 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 equipment 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.

Community Nursing

     Rapid expansion characterised the year for the Community Nursing Service, which became an integral part of the medical and health services following a recommendation by the Medical Development Advisory Committee in 1979.

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The service extends care to patients discharged from hospitals after acute illnesses, and provides domicillary medical care for the sick, the disabled and the elderly in their homes. During the year 6,859 patients were treated by community nurses and more than 112,500 home visits were made. At the end of the year, plans were in hand to expand the scope of the present service.

Health Education

The Central Health Education Unit plans and implements health education programmes, either departmentally or in co-operation with voluntary agencies. It campaigned ener- getically in a number of causes during the year. In January, a Family Health Campaign promoted public awareness of maternal and child health and the work of the Family Health Service, and an exhibition held at the City Hall in March, attracted over 40,000 people.

      In recognition of the World Health Organisation's Anti-smoking Year, the unit co- operated with the Hong Kong Cardiological Society, the Hong Kong Anti-cancer Society, the Hong Kong Heart Foundation and the Stoma Association of Hong Kong in mounting exhibitions and slide shows and distributing pamphlets and posters. Other major health education campaigns included a tuberculosis case-finding campaign and a rubella vaccina- tion campaign.

      A Health Education Resource Supply and Counselling Service was set up in January and catalogues were widely distributed to facilitate full utilisation of the unit's supply of films, slides, pamphlets, booklets and posters. Professional advice on health education methodology was given to other departments and voluntary agencies. The unit also conducts educational programmes for schools and community groups on such topics as the health of the elderly, sex education and personal hygiene.

Medical Fees

     The charge for a consultation at a government clinic was raised from $2 to $3 in 1980. 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 $3 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.

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       The University of Hong Kong produces about 150 medical doctors a year. A further 100 a year will eventually graduate from Hong Kong's second medical school, which is being established at the Chinese University of Hong Kong.

An Institute of Medical and Health Care at the Hong Kong Polytechnic provides training for paramedical staff. The courses, in operation since 1978, include radiography, physiotherapy, occupational therapy, medical laboratory science and dental laboratory technology.

       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 more nurse-training schools have been recommended for the Princess Margaret Hospital and the Prince of Wales Hospital, and it is envisaged another will be at the new hospital to be built at Tuen Mun.

      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 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.

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 physical and chemical testing of food under the Public Health and Urban Services Ordinance is also its responsibility. This work, which stems from the activities of the Hygiene Division of the Urban Council and Urban Services Department, is a consumer protection activity and continues to expand.

      In addition, the laboratory carries out urinalysis which is an essential part of the methadone maintenance and detoxification programmes. To meet the needs of the now expended methadone programmes a new methadone laboratory was opened in July.

Dangerous goods and pesticide residue analysis, and determinations of traces of noxious metals are also carried out. Scientific work for the Consumer Council comes under this heading and is a further indication of the government's concern for consumer protection. Environmental science is beginning to feature prominently among the laboratory's concerns, and a sophisticated gas chromatograph coupled to a mass spectrometer and a computerised data system was installed during 1980 to enable laboratory examinations in this field.

Narcotics

Drug abuse is a long-standing problem in Hong Kong with serious social, economic, legal, medical and psychological implications. The government's expressed policy is to stop the illicit trafficking of narcotic drugs into and through Hong Kong, to develop a multi- modality treatment and rehabilitation programme for drug addicts and to dissuade Hong

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     Kong's residents, particularly young people, from experimentation with drugs so as to reduce substantially, and eventually to eradicate, drug abuse in the community.

      The exact number of addicts in Hong Kong is not known. However, findings from the government's computerised Central Registry of Drug Addicts indicate that the size of the problem is probably less than 40,000 people.

      Since September, 1976, the Central Registry of Drug Addicts has received 120,000 reports on 35,200 individual addicts, of which only six per cent were females. Of the 35,200 addicts, 63 per cent were over 30 years of age at the time of their first report, 33 per cent were in the 20-29 age bracket and only four per cent were under 20. Heroin is the principal drug of abuse in Hong Kong and is used by 95 per cent of the addicts reported to the central registry in 1979; three per cent took opium and the remaining two per cent were on other drugs. Injection is becoming the most widely-used method of taking heroin - probably because of its high price and the scarcity of supply - while opium abusers generally smoke the drug.

      The profile of a typical addict in Hong Kong is an adult male over 21, in the lower income group, with not more than six years of formal education, living in overcrowded conditions and generally employed as a casual labourer, or an 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 programme is in the region of $210 million a year. It consists of four main elements - law enforcement, treatment and rehabilita- tion, preventive education and publicity, and international co-operation. Law enforcement is the responsibility of the Narcotics Bureau and individual district formations of the Royal Hong Kong Police, and the Customs and Excise Service of the Trade Industry and Customs Department. Treatment and rehabilitation are undertaken 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 educa- tion 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. Effective law enforce- ment action pushes up the price of illicit drugs and reduces their supply - in turn, inducing addicts voluntarily to seek treatment.

A wide range of programmes is offered to addicts to suit their individual and varied needs. At the same time, preventive education and publicity efforts persuade others, especially the young, not to experiment with drugs. On the international front, Hong Kong maintains close contacts with other countries and exchanges information and expertise with them.

      All of these efforts are co-ordinated by the Action Committee Against Narcotics (ACAN), a non-statutory body comprising a chairman, nine government officials and five unofficial members. Formed in 1965, the committee is the government's sole advisory body on all anti-narcotics policies and actions internal or external - and whether related to government departments or to voluntary agencies. The ACAN is served by the Narcotics Division of the Government Secretariat, which is headed by the Commissioner for Narcotics.

      Sustained efforts in the four major anti-narcotics strategies continued to produce reward- ing results in 1980. In law enforcement, effective police and customs action continued to frustrate the attempts of drug traffickers to import significant quantities of narcotics into Hong Kong or to expand their operations. Although the availability of heroin in the

KOWLOON

ALEXANDER

HONG KONG

IN LONDON

Hons. dang in London

4th west)

H

WAL

Left: Young and old are spellbound by the artistry at the puppet theatre. Below: Busi- ness was brisk for over 100 stall-holders selling Hong Kong crafts and food products.

Above: The Festival Queen, Mable Liu. was chosen from among the pretties! Hong Kong girls in Britain. Right: Dragon dancers take a rest before a strenuous performance.

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Above: Visitors found much to see and buy during the two-day festival in London's Battersea Park. Right: There was even a replica of Hong Kong's renowned Noon Day Gun to sound mid-day and start dragon boat races on the Thames.

Left: Onlookers scatter as a northern Tion explores its new domain. Below: A sandal- wood fan carver demonstrates his intricate skill.

IC

IBRA

ان ابارك ااد

The Keying II, built to commemorate a Chinese junk that sailed from Hong Kong to London in 1848, rides at her mooring during the first Hong Kong in London Festival in September. Timed to coincide with the Chinese Mid-Autumn Festival, the two-day event attracted an estimated 750,000 visitors to London's Battersea Park and was overwhelmingly successful in

achieving its aim of giving people in Britain an authentic taste of Hong Kong's cultural heritage.

Section Cover: In the shadow of London's famous Big Ben, a northern lion symbolises the exotic spirit of the festival.

Above: A Chinese wedding is faithfully enacted. Right: All eyes were on stage for the graceful fairy dance.

Left: Dancers from a Hong Kong television station surround the featured performer. Kwan Kuk-ying. Below: Playing the dual role of girl and old man was great fun for the impish child starlet, Queenie Lo.

Above: Entertainers, Rowena Cortes and Louis Castro, delighted audiences with their exuberant singing style. Right: A spec- tacular fan dance combines precision and beauty.

Left: A moment of suspense in an acrobatic. feat held spectators enthralled. Below: A leading Hong Kong TV personality, Lydia Sung, made everyone feel right at home.

BLIC LI

   A few soft words in Cantonese and Miss Hong Kong 1980, Wanda Tai Yuet-ngor, has a fearsome compatriot eating from the palm of her hand.

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illicit market increased marginally during the year, compared with the situation in 1979, its price remained at a very high level with no major fluctuation in purity content.

       In the field of treatment and rehabilitation, it was the busiest year ever experienced. For, as a result of high drug prices at street level, large numbers of addicts sought, and remained in, treatment voluntarily.

The Narcotics and Drug 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 a long-term treatment approach which is intended to prevent an addict's return to illicit heroin or other narcotic abuse, while detoxification is a short-term form of medical treatment aimed at eliminating the physical dependence on narcotics.

Due to the increasing numbers of addicts approaching the methadone out-patient clinics for treatment, a new urine-testing laboratory was opened at Ho Man Tin in July to enable the progress of the methadone treatment programme to be more adequately monitored.

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, while SARDA's female treatment centre is located in Wan Chai on Hong Kong Island and can take 30 patients. Linked with these two centres are six regional after-care centres, three units for the intake of patients and three hostels. During 1980, 2,592 patients, in- cluding 95 women, were admitted to SARDA's two centres.

Under these two voluntary treatment programmes and the Prisons Department's com- pulsory treatment programme, 13,128 addicts and ex-addicts are now receiving some form of treatment, rehabilitation and after-care every day. This represents an increase of 30.3 per cent compared with the situation five years ago. In addition, addiction among young people continues to decline. Addicts under 21 in the Prisons Department's drug addiction treatment centres decreased from 25 per cent in 1969 to 3.4 per cent in 1980; at SARDA's Shek Kwu Chau voluntary in-patient treatment centre addicts under 19 also decreased from 13 per cent to 0.9 per cent in the same period.

In the area of legislation, an amendment was made to the Dangerous Drugs Ordinance to control instances of trafficking in a substance purporting to be a dangerous drug, and two new pieces of legislation were drafted. Based on recommendations by the Action Committee Against Narcotics, the new legislation is intended to provide for the con- fidentiality of records on drug addicts and to impose stringent penalties on ships repeatedly found to be carrying dangerous drugs into Hong Kong.

       Preventive education and publicity continues to play an important part in Hong Kong's fight against drug abuse. Work in this area is focused on fostering public awareness of the dangers of drug abuse, promoting community involvement in tackling the problem, and persuading young people not to experiment with drugs. In 1980, the Action Committee Against Narcotics (ACAN) spent more than $1 million in its largest preventive education and publicity campaign to date. The major events included a water carnival, campaigns in the Central, Western, Yuen Long and Yau Ma Tei districts and seminars for community leaders, students and social workers. To support these activities and publicise anti-narcotics messages in the media, TV newsclips and dramas, films, posters and a mobile exhibition kit, were produced.

In July, a Drug Education Liaison Centre was established under the Preventive Educa- tion and Publicity Unit of the Narcotics Division. Its main duties are to gather drug-related information, to liaise with members of the public and to organise anti-narcotics training

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and education for young people, parents, teachers and organisations. The centre also makes available to the public a range of anti-drug information in the form of publications, films, video-cassette tapes and slides.

      The Drug Abuse Telephone Enquiry Service, which was started in September, 1977, continued to operate in 1980. By the end of the year, the service had received 16,540 enquiries since its inception and the response from both addicts and non-addicts has been good.

      Externally, Hong Kong continued to play an active and important part in international anti-narcotics operations. 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 1980, Hong Kong took part in 17 international meetings concerned with anti-drug law enforcement, treatment and rehabilitation, and preventive education. Hong Kong also made its sixth 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 programme 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.

The techniques and methods employed by Hong Kong in its anti-narcotics work have made it an important venue for training anti-narcotics personnel from other countries. In 1980, 126 anti-narcotics officers from various countries came to Hong Kong on study visits, either through bilateral arrangements with their governments or under the sponsor- ship of United Nations bodies such as the World Health Organisation, or the Colombo Plan.

      In April, Hong Kong organised an international meeting on 'The role of education in the social re-integration of former drug users'. Arranged in collaboration with the United Nations Educational, Scientific and Cultural Organisation, the meeting was attended by delegates from Australia, Malaysia, the Philippines, Pakistan, Thailand, the United States of America, Vietnam and Hong Kong, and produced a very useful exchange of ideas and experiences.

Following the success of the first World Health Organisation Inter-Regional Training Course on the Treatment and Rehabilitation of Drug-dependent Persons held in Hong Kong in 1979, the WHO invited Hong Kong to organise a second course in October and November. The course was held successfully and provided 22 physicians from Egypt, Pakistan, India, Sri Lanka, Thailand, Indonesia and Burma with an in-depth account of the latest theories and practices in the field of drug addiction treatment and rehabilitation. As a result of continual efforts to eradicate the scourge of drug addiction, Hong Kong can now claim to have contained its drug problem and made successful inroads into preventing the spread of drug abuse among young people and in reducing criminal be- haviour among addicts.

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.

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A regular task-force of about 5,000 workers is employed in street cleaning duties that extend around the clock in Hong Kong. All streets are swept at least once a day, either manually or mechanically, while the main thoroughfares are swept four to eight times a day. The cleansing force is equipped with a fleet of more than 500 vehicles, and includes specialised refuse collection vehicles, street-washing vehicles, mechanical sweepers, night- soil collectors and gully and cesspit emptiers.

       Approximately 3,000 tonnes of household refuse is collected each day from the built-up areas of Hong Kong. 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. With the rapid development and urbanisation of the territory, the number of premises requiring this service is decreasing.

The Keep Hong Kong Clean Campaign, jointly sponsored by the government and the Urban Council, is continuing. A second major Keep Hong Kong Clean Campaign is also planned for 1981, with particular emphasis on increased government efforts in cleansing, education, community involvement and law enforcement. During 1980, more than 56,200 people were fined for litter offences.

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 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.

       The health inspectors also work closely with the Medical and Health Department in the investigation and control of food poisoning outbreaks and infectious diseases.

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. Imported frozen meat, poultry, confections and UHT milk were among the large variety of food examined. The section also inspects and certifies local food intended for export.

In 1980, the Health Education Section continued to organise publicity campaigns on various health topics and to run food hygiene training courses for members of the catering trade. In addition, health lectures were given to school-children, Vietnamese refugees and members of voluntary welfare agencies. Contests and competitions were also held in schools to promote health education. The Central Licensing Section 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 Ordin- ance and the Dutiable Commodities (Liquor) Regulations.

District and regional pest control units employed a combination of source-reduction, chemical and legislative measures to prevent and control rodents, mosquitoes, flies, cockroaches, fleas and other pests.

During the year, 103 student health inspectors and 50 health inspectors completed training courses at the department's new training school in Oi Kwan Road, Wan Chai. For more specialised training, nine experienced health inspectors were sent abroad to undergo training in health education, administration, food technology and solid wastes management.

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In the urban areas of Hong Kong Island and Kowloon, the Urban Council runs 48 public markets containing more than 4,300 stalls. These markets provide the public with a wide range of retail outlets at convenient locations.

It is the Urban Council's policy to reprovision old market buildings in these areas, and where possible, to build new market buildings with 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 to be made of land available while, at the same time, providing a variety of services at one location.

      The $11 million Bowrington Road Market, opened in Wan Chai in early 1980, is one of the Urban Council's most modern multi-purpose market complexes. In replacing the Canal Road Temporary Market the new building provides sufficient stalls for tenants of the temporary market, hawkers from the Canal Road Market Bazaar, and on-street licensed and unlicensed hawkers in the vicinity.

Three new temporary markets - Tai Shing Street Temporary Market, Sze Shan Street Temporary Market and Tong Mei Road Temporary Market - were also opened during the year.

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In the New Territories, the government provides a total of 28 markets with 2,339 stalls. In addition, there are approximately 2,800 market stalls being provided in various public housing estates in the New Territories.

Hawkers

The number of hawkers operating in the urban areas of Hong Kong Island and Kowloon is estimated to be about 42,000, comprising 31,000 licensed and 11,000 unlicensed operators. In addition, about 10,000 people engage in hawking in the urban public housing estates.

      It seems unlikely that this number will diminish significantly until more markets are provided and hawkers become market stall-holders. In the meantime, the Urban Council intends to confine hawking to specified areas for environmental reasons. The long-term policy is to re-site as many hawkers as possible in public markets and allow them to hold market stall leases on a monthly rental basis.

In the urban areas, enforcement of the law in relation to hawking is shared between the Urban Council and the Royal Hong Kong Police Force, with the Urban Council controlling the Hawker Permitted Areas and other hawker concentration areas, and the police keeping major thoroughfares clear of obstruction and providing a constabulary presence during special operations, such as major clearances. The Urban Council runs 12 General Duties teams which were formed to control hawkers. Hawker control duties in the New Territories are performed by six General Duties teams under the management of the New Territories Services Department.

During the year, hawker surveys were carried out in a number of urdan districts and itinerant and unlicensed hawkers registered in the surveys were issued with fixed-pitch licences and allowed to hawk in Hawker Permitted Places.

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

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More than 3.01 million pigs and 194,331 cattle were slaughtered in 1980 in the two abattoirs operated by the Urban Council 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 mechanised 'on-the-rail' cattle dressing line at Cheung Sha Wan Abattoir became fully operational in August.

Meat and offal condemned in the abattoirs as unfit for human consumption is sent to the by-products plant at Kennedy Town Abattoir for processing into blood meal, meat and bone meal and animal grease. These by-products, together with pig hair and pig thyroid and suprarenal glands, are sold by public tender for agricultural and industrial use. Most is exported.

There are two licensed private slaughterhouses in the New Territories supervised by health inspectors of the New Territories Services Department. A third private slaughter- house, located in Tsuen Wan, is also expected to come into operation during 1981.

Cemeteries and Crematoria

      The Urban Council provides inexpensive funeral facilities in the urban areas by operating two depots, one in Hong Kong and the other in Kowloon, within the Hung Hom Public Funeral Parlour. Free funeral services are provided, if necessary. In addition, the Tung Wah Group of Hospitals provides non-profit-making funeral services.

With land in the territory so limited, it has been official policy to encourage cremation, and the ratio of cremation to burials in 1980 was 50:50.

In the urban areas there are five public cemeteries, 19 private cemeteries and two public crematoria, while in the New Territories there are five public cemeteries, seven private cemeteries and two crematoria. Additional crematoria and columbaria are being planned for Sha Tin and Tuen Mun.

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 in the New Territories are the same as those of the Urban Services Department in the urban

areas.

Following a comprehensive review of the department's structure, the NTSD headquarters was reorganised in 1980 to improve co-ordination in the provision of services. The depart- ment's nine district offices were grouped under two regional offices - North and South - each headed by an assistant director. The North Region comprises the districts of Tuen Mun, Yuen Long, Tai Po, and North District, while the South Region encompasses Tsuen Wan, Kwai Chung, Sha Tin, Island and Sai Kung.

The activities of the department continued to expand in keeping with the rapid develop- ment and increasing population of the New Territories. Altogether, five capital projects were completed and 219 new projects were being planned. They will include markets, pleasure and sports grounds, indoor games halls, swimming pools, beach buildings, public toilets, refuse collection points and depots to cater for the department's growing fleet of specialised vehicles.

8

Housing and Land

At the end of the 1970s a paradoxical situation existed in the housing field. The annual supply of housing had in 1979-80 reached the unprecedented levels of more than 32,000 public rental and Home Ownership flats with an additional 28,600 completions by the private sector, and the overheated construction industry appeared to have responded to the measures taken in the 1979-80 Budget. However, the continuing influx of refugees from China had meant a slowing down of the improvements expected to have been brought about by the increased supply.

An overall review of Hong Kong's housing policy was undertaken by the government during the same period. This was carried out by a study group set up to examine in depth the demand for, and supply of, both public and private housing in the broad social and economic context.

The study concluded that, in attempting to provide a solution to Hong Kong's housing problems, the continued application of resources by both the government and private developers will be needed for many years to come. Public sector rental housing will be needed to provide subsidised accommodation for people who are unable to afford to rent or purchase homes in the private sector; to provide for people displaced by government action; and for those in special categories such as compassionate cases and the elderly. Private sector production will continue to meet the home ownership and rental accom- modation needs of households which do not meet the Housing Authority's income criterion.

The review also showed that the steadily improving housing situation since 1973 is expected to be further improved upon during the 1980s. As a result of the measures introduced by the government in October to contain immigration and assuming that the current high levels of production by both the public and private sectors are maintained the percentage of households in permanent domestic accommodation will increase significantly. If, as is hoped, it proves possible to improve on this production from the mid-1980s, the shortfall of self-contained accommodation will be further reduced by the end of the decade.

Certainly, the housing commitments for the future are considerable; but they are hopeful. Even taking into account the fact that many of the new immigrants are young people who will soon be marrying and starting families, it should prove possible for them to be housed. It was on this optimistic note that members of the Housing Authority performed the official opening ceremony of the 100th public housing estate at On Ting in Tuen Mun new town, in December. This, in itself, was a highly significant milestone. Meanwhile, the high rate of immigration has produced a further serious, and more immediate, problem. Although many new arrivals initially find accommodation with friends and relatives in private housing, a large proportion begin as, or become, squatters.

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Compounding this, groups of young immigrants have been active in building squatter huts on the fringes of urban Kowloon for sale to even newer arrivals. Considerably increased action by the Housing Department's squatter control force, and its expansion to the main urban areas of the New Territories, has not been able to stop this spread entirely and, in 1980, it became apparent that increasing numbers of people were living as squatters in simple huts and more permanent structures.

       Not surprisingly, the greatly increased congestion in squatter areas has led to several large fires. These, in turn, have resulted in the virtual swallowing-up of all remaining accommodation in temporary housing areas, which are provided for that purpose and for people who have to be moved during land clearances and who are not eligible for permanent housing. Under this pressure the Housing Authority has been forced to re- examine the eligibility criteria for both permanent and temporary housing and, during 1980, a number of major changes were introduced. Permanent housing is now offered to squatter families in 1976-surveyed huts with 15 years or more residence in Hong Kong. Furthermore, in urban areas, overcrowded families living in old Mark I and II blocks which are not due for redevelopment in the next few years are offered the opportunity of moving to new estates. Premises recovered in this way are then made available for allocation as temporary housing spaces under a new 'primary housing' scheme. Other groups, particularly new arrivals occupying huts built illegally in the urban areas, continue to be given temporary housing in the new towns outside the urban area.

The large number of flats completed in the 1979-80 financial year - 32,198

                                              32,198 - enabled the authority to allocate a much-increased quota to people on the waiting list and, for the first time since 1973, the number housed surpassed new registrations. However, with about 150,000 families on the list and the typical waiting time being about seven years, the list remains unacceptably long. Continued efforts are being made to reduce the waiting time so that ultimately, registration on this list, with its careful criteria of need, will become the normal method of entry to permanent public housing.

       The influx of immigrants from China up to October, 1980, was reminiscent, albeit on a different scale, of the very conditions that led to the birth of Hong Kong's public housing programme 26 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 sub-division into cubicles and bed spaces robbed entire floors of light and air. The late-comers, and those who could not bear the desperate overcrowding nor afford the soaring rents, took to paddy fields and steep hillsides where they built 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

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both types of housing, and these met with an overwhelming demand that has not diminished over the years. As a result, the Resettlement Department and the Housing Authority were amalgamated in 1973 into a new Housing Authority to oversee the new housing programme. A total of 26 estates all of them self-contained communities have so far been built under this programme and today more than two and a quarter 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.

The Housing Authority

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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 Ordinance.

      The Housing Authority is chaired by the Secretary for Housing and comprises 13 unofficial 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 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, with a notional five per cent interest shown in the authority's balance sheet as a government contribution. Capital funding for the public housing programme now set at a production target of 35,000 flats a year is provided through the Government Budget, which contains a four-year expenditure forecast rolled forward annually. The government has emphasised that the rate of production is not a maximum target and that, when economic circumstances permit, expansion can be considered.

Construction

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The current government housing programme aims at producing 180,000 flats, for rent and for sale, over the next five years. Some 37 building contracts were let during 1980 at a cost of $3,224.5 million. At the end of the year, 55 building contracts, including 15 for Home Ownership Scheme projects, were in progress to provide 77,800 flats over the next three years.

Home Ownership Scheme

To meet the community's growing aspirations for home ownership, the government has established a scheme that enables lower-income families to buy their own flats at reasonable prices. Run by the Housing Authority, the scheme has already provided cost-price homes for some 8,300 families and a further 50,000 flats are scheduled to be built this decade. Plans are also underway to provide a similar limited scheme for middle-income earners who can neither qualify for the Home Ownership Scheme nor afford flat prices on the open market.

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Major factors built into the framework of the Home Ownership Scheme were that it should be non-profit-making, self-financing, and in no way detrimental to the buoyant property market. It was decided, therefore, that flats would be sold at prices based on the actual costs of land, design, construction and marketing. Experience has shown that these prices are at least 20 per cent below market levels. Because of the relatively low incomes of eligible purchasers, special mortgage terms have been arranged through leading banks and financial institutions, which offer reduced interest rates and extended repayment for up to 15 years. To avoid quick profit-taking, purchasers may not sell their flat within five years, except back to the Housing Authority at the original price. Management control of the completed estates is retained by the authority.

Eligibility for the scheme is confined to two distinct groups - public housing tenants who are prepared to surrender their low-rent flats, and families living in the private sector whose incomes fall within a specific bracket above the cut-off point for rental public housing. Each category is also required to meet a number of other criteria concerning family composition and length of stay in Hong Kong. However, unlike private sector families applying, public housing tenants are not bound by any income limit and are not disqualified by existing ownership of domestic property. These concessions are granted as an inducement to better-off public housing tenants to relinquish their subsidised flats in favour of families who genuinely need public housing. The benefits of this policy have already been felt through the recovery of some 4,000 units for re-allocation.

       Flats built under the scheme are up to the standard of good private developments, with modern fittings and door-phone security systems. Sizes range from 35 to 65 square metres in net area with two or three bedrooms, kitchen, bathroom and living room. Prices for the Phase I flats sold in 1978 when the income limit for private sector applicants was $3,500 a month - ranged from $90,000 to $166,000. To keep pace with inflation, the income limit was raised to $5,000 in 1980 when there were two sales exercises for flats priced at $151,000 to $271,000. All phases were heavily over-subscribed and it was necessary to hold ballots to determine the successful applicants. Separate draws were held for the two categories of applicant to provide an equal share of flats between the respective groups.

       The two lists were then combined into an overall priority list and each applicant was interviewed to verify eligibility. Eligible applicants could then choose, in order of priority, any flat remaining unsold and make a 10 per cent down-payment. Anyone found to have made a false statement was automatically disqualified and a small number of applicants were subsequently prosecuted.

A further three home ownership projects are being built by private developers under the Private Sector Participation Scheme. As the name implies, the scheme is designed to give private sector interests the opportunity to contribute their expertise towards a public housing project. The basic specifications and unit price for the flats is stipulated by the government and the developers tender for the land reserved for the project. Processing and screening of applicants is carried out by the Housing Department in the same way as for the Home Ownership Scheme. The flats in two of these developments were sold in late 1979 and the third is expected to be sold within the next two years.

The planned scheme for the middle-income group will be run on similar lines to the Private Sector Participation Scheme, although the flats will be slightly larger.

Urban Housing and Redevelopment

Private development and some 100 public housing estates occupy most of the developable land on Hong Kong Island and in Kowloon, where population densities are among the

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highest in the world. However, every effort is being made to extract the optimum develop- ment potential from the less intensively developed sites, some of which are occupied by squatter huts and resettlement cottages built in the 1950s.

In east Kowloon, further phases of Shun Lee Estate, including the first cinema to be built in a public housing estate, were completed in 1980. Work also continued on additional phases of the neighbouring Shun On Estate. These two estates, together with the Shun Chi Court Home Ownership Scheme, are well on the way to forming a large, self-contained community of 69,000 people. Nearby, a further 776 flats in the fourth phase of Choi Wan Estate were completed.

To the south of this area, work progressed on Kai Yip Estate, which is being built on the former RAF Kai Tak site to provide homes for more than 21,000 people, while at Sham Shui Po, in west Kowloon, another site formerly occupied by the military was being turned into a similar-sized estate to be known as Lai Kok.

During the year, families moved into the first 2,200 flats to be built on the island of Ap Lei Chau, overlooking crowded Aberdeen Harbour on Hong Kong Island.

Work also continued on a massive redevelopment programme aimed at improving the living conditions of about 340,000 people occupying 12 Mark I and II resettlement estates built as emergency housing between 1954 and 1964.

Housing in the New Towns

     During 1980, an increasingly large number of flats were 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 genera- tion of estates to be planned with more generous densities. 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 new town, the first two phases of Shek Wai Kok Estate were completed to provide 3,112 flats and work began on the final two phases, which will produce a further 3,340 flats.

On Tsing Yi Island, a five-storey commercial complex was completed at Cheung Hong Estate and work continued on an extension that will provide a further 720 flats.

Some 12 public housing estates are planned for the new town of Sha Tin, where a population of about 200,000 will have become established by the mid-1980s. At the third of these estates, Sha Kok, four domestic blocks containing 3,400 flats and a commercial complex were completed.

To the south, the first four blocks of Sun Tin Wai Estate were finished at the end of the year to provide 1,730 flats.

Work also began on Mei Lam Estate, the first phase of which will involve the construc- tion of 2,880 flats, and layout plans were approved for a further three estates - Pok Hang, San Tin and Tin Sam. Together, these three estates will provide 17,460 flats for 86,700 people.

At the third new town of Tuen Mun, which is also planned to house more than half a million people by the middle of this decade, the authority's 100th public housing estate, On Ting, was opened in December. This estate, together with its 'sister', Yau Oi, will provide a total of 15,500 flats for 84,600 people.

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Work also began during the year on Butterfly Estate - the largest, single public housing complex planned for the new town. This estate is being built in six phases and, when completed in 1984, will provide 12,160 flats for 62,300 people. Piling work was started on the first phase of Shan King Estate.

Development advanced on three smaller but no less important new towns at Tai Po, Fanling Sheung Shui Shek Wu Hui, and Yuen Long. In Tai Po, the first four blocks of Tai Yuen Estate were completed to provide 2,655 flats and layout plans were approved for a second estate comprising 8,070 flats.

At Shek Wu Hui, which is being linked with the adjoining market centres of Fanling and Sheung Shui to form a single community, work continued on the first phase of Shek Wu Hui Estate.

In Yuen Long, construction advanced on the 2,000-flat Shui Pin Wai Estate, while 182 flats were completed at Lung Tin, which is the first public housing estate to be built at Tai O on Lantau Island.

Allocations

The Housing Authority possesses a stock of 420,200 domestic flats, of widely varying sizes, amenities and rent levels. During the year, 29,600 flats were allocated to 134,200 eligible people in the following categories: waiting list applicants; development clearance cases; tenants of early housing estates under redevelopment; 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; residents affected by the re-use of temporary housing areas; junior civil servants and pensioners; and miscellaneous. A total of 7,260 flats were allocated to families rendered homeless by development clearances, while 13,000 were allo- cated 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, 446,300 families have applied, of whom 76,500 have been rehoused with another 213,000 found to be ineligible for public housing. Applications are considered in date 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 1980 and now ranges from $2,400 a month for a family of three to a maximum of $3,450 for a family of 10 or more.

Management

Close contact is maintained with tenants through regular visits by estate staff. In addition, regular meetings are held with more than 750 mutual aid committees and other residents' associations established for such purposes as the Keep Hong Kong Clean and Fight Crime campaigns. The door-to-door system of rent collection, which covers all estates, 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 30,000 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 eligible to apply for transfer to new flats. The flats they vacate, usually being smaller and having a lower rent, are made available for other families which do not yet qualify for permanent

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housing. Other families wishing to move into a different flat can register with the Mutual Exchange Bureau or, if they have substantial reasons other than overcrowding for moving, they can request a transfer to a flat of the same size.

      The Housing Authority is also an important commercial landlord, with 12,400 shop, bank and restaurant tenancies of various sizes. Shops and shop-stalls in new commercial complexes are let on tendered rentals, thus giving the smaller operator with limited capital an opportunity to obtain an estate shop. Commercial properties are generally let on a three or five-year agreement. Rents are raised to near-market levels on renewal of an agreement, but, 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 4,390 factory tenancies in 29 purpose-built blocks and 5,120 cottages in various districts.

      The authority lets about 170 premises on estates for various welfare and community purposes at reduced rentals. 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 let to various government departments including police posts and offices - are generally let at near-commercial rents.

      Maintenance and improvements are major items, particularly in the older estates. During the year, some $46 million was spent on contract cleansing and $187 million was spent on maintenance and improvements - mainly painting contracts, planned preventive mainten- ance of buildings and electrical systems, and estate improvements such as recreation areas and lighting.

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 their own internal and external walls. Facilities provided include concrete hardstanding; home 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 around $7 for each square metre. During the year, a two-storey design was introduced which enables families. to construct a small 'cockloft', or mezzanine floor, thus increasing the numbers of people that can be accommodated in these areas which, although temporary in nature, are land intensive.

At total of 25,700 people, including 5,300 affected by typhoons and fires, moved into temporary housing during the year. This brought to 88,700 the number of people living in the 41 temporary housing areas that are managed throughout the territory by the Housing Authority.

Transit Centres

The Housing Authority also provides short-term accommodation in transit centres for people made homeless by fires or natural disasters. The total capacity of the transit centres is about 1,450 people.

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Despite higher production figures for public housing, the number of squatters has increased considerably in the past few years because Hong Kong's population has grown so alarmingly - mainly from illegal immigration. The policy for dealing with the environmental and social problems created by squatters 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 develop- ment.

       Squatters with 15 years' Hong Kong residence, who occupy huts covered by the 1976 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-1976 survey structures and houseboats are only eligible for temporary housing.

      The 1980 clearance programme yielded 210 hectares of land for development with the removal of about 46,000 people from squatter-type and permanent structures. Of these, 31,300 were allocated permanent housing and the balance primary housing in the urban area or temporary housing in the new towns.

The Housing Department is responsible for controlling squatters in five districts the urban areas of Hong Kong Island and Kowloon, and the three new towns of Tsuen Wan, Tuen Mun and Sha Tin in the New Territories. About 312,100 squatters live in these 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, 11,000 structures or extensions were demolished in a number of districts designated as intensive patrol areas.

The largescale immigration in 1980 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.

Action was taken by the Housing Authority during the year to close a loophole which enabled opportunists to enter permanent or temporary housing ahead of long-term residents. The new measures, introduced in August, specify that when a tenement building or village-type house is designated for clearance, the occupants, apart from fulfilling the normal residential and other eligibility criteria, must now prove that they have been living on the premises since the date clearance negotiations began or the date on which the Execu- tive Council approved the resumption, whichever is the earlier. Onus of proof of residence is on the occupants under these measures, which are aimed at preventing unscrupulous owners, landlords or principal tenants from cashing in on queue-jumping rackets.

Town Planning

The two bodies mainly responsible for town planning in Hong Kong are the Town Planning Board, chaired by the Director of Public Works and comprising six official and eight un- official members, and the Land Development Policy Committee, chaired by the Secretary for the Environment and comprising seven official members.

       The Town Planning Office of the Public Works Department services these two bodies and other related committees. The main types of plan prepared by the office are the Hong

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Kong Outline Plan, statutory outline zoning plans, and departmental plans. These depart- mental plans, in the form of outline development plans, layout plans and planning guides, are used administratively within the government to guide and control development. The office also scrutinises development submissions, reserves sites for various public purposes, undertakes special planning studies and provides planning advice to other government departments, advisory bodies, consultants and the public.

      The Hong Kong Outline Plan is a document which lays down general planning concepts, defines standards and locational factors for the provision of government and other com- munity facilities and so provides a framework for the preparation of statutory outline zoning plans and departmental plans. The document was first prepared in the late 1960s but is kept under constant review to take account of changes in government policies, population forecasts and other social and economic trends. Since the last revision was approved by the Land Development Policy Committee in 1979, a further review of some of the chapters has become necessary to take account of changing circumstances. This work continued during the year.

      Statutory outline zoning plans for existing and potential urban areas are prepared under the provisions of the Town Planning Ordinance while the Town Planning Board is respon- sible for their preparation and revision. These plans show, in general terms, areas set aside or zoned for residential, commercial, industrial and other specified purposes. During the year, the board published for public inspection 11 draft statutory outline zoning plans including draft amendment plans for The Peak area, Kowloon Tong, Aberdeen, Shau Kei Wan, Causeway Bay and Cha Kwo Ling, and a new plan for the South Lantau coast. A total of 10 objections to the published plans were received and considered by the board and, as a result, some of the draft plans were amended for further public examination. By the end of the year, 26 out of a total of 39 planning areas in the main urban areas were covered by draft or approved statutory plans. In the New Territories, there were six draft statutory plans covering Tsuen Wan, Kwai Chung, Tsing Yi, Sha Tin, the South Lantau coast and Tai Po; draft plans for Tai Po and Tuen Mun were under preparation.

      The Town Planning Ordinance makes provision for a schedule of notes to be attached to each statutory plan. This schedule shows the land uses always permitted in a particular zone, together with other uses for which the Town Planning Board's permission must be sought under Section 16 of the ordinance. This provision to apply for planning permission allows greater flexibility in land-use planning and improves the control over development, in line with changing needs. During the year, the board received and considered 111 applica- tions compared with 127 applications in the previous year. Where the board refuses to grant permission, the applicant can apply for a review of the decision. In 1980, there were 38 applications for review, compared with 25 in 1979.

Compared with statutory plans, departmental outline development and layout plans are normally drawn to larger scales and show road proposals and the disposition of sites for various uses in greater detail. They are 'action' plans to enable land to be prepared and released for public or private development. Many departmental plans for new development areas were prepared and existing plans were revised during the year to take account of changes in population forecasts, government policies, planning standards and other trends. The work of the Town Planning Office can generally be classified into two main streams, outline planning and district planning. The first aspect of the work is undertaken largely by the Outline Planning Division, whose main duties - besides reviewing and revising the Hong Kong Outline Plan and preparing a 10-Year Development Programme to implement it - are to carry out planning surveys and studies to provide background data for planning

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purposes. During the year, the more important planning studies undertaken included one on the implications of any removal of the airport from Kai Tak, and others undertaken in connection with the Special Committee on Land Production and the Working Group on Population Distribution.

The district planning function is performed by two divisions within the office - one for the main urban areas comprising Hong Kong Island, Kowloon and New Kowloon, and one for the New Territories. Besides providing planning advice on all public and private development applications within their districts, including Section 16 applications, the two district planning divisions are responsible for preparing all statutory outline zoning plans, including those for the New Territories, and all departmental plans outside the new towns, including the reservation of sites for various government and community uses. Town plan- ners are seconded from the office to the various New Town Development Offices where, under the direction of the project manager, they prepare detailed departmental plans and provide planning advice within the framework of the Hong Kong Outline Plan and the statutory outline zoning plans.

       In the development of the New Territories the role of the Town Planning Office is basically twofold. At the regional level, it is responsible for the forward planning of large areas in the New Territories through the preparation of planning studies to guide the future development of these regions. In parallel with these regional studies, the statutory development control of the new towns is exercised through the draft statutory Outline Zoning Plans for the New Towns.

      During 1980, planning studies prepared included the North-western New Territories Planning Study, the North Lantau Outline Strategic Plan and the Planning Guide for the Future Development of Sai Kung District. At the local level, the Town Planning Office also undertakes detailed planning for smaller rural districts, particularly those under various forms of development pressure. Plans of this nature prepared during the year included the Kam Tin Layout Plan, the Kwu Tung Residential Layout and various plans for low-density residential development in the Sai Kung District.

       In the main urban areas, major layouts undertaken during the year included those for the Tat Chee Avenue and Tai Hom Development Areas, for part of the former Victoria Bar- racks and for the Yau Ma Tei Typhoon Shelter reclamation.

      Other studies covered the redevelopment potential of existing government quarters and government-owned buildings, and a comprehensive survey of new sites for high-class housing. Feasibility studies were also carried out and planning briefs were produced for sites earmarked for public housing estates and Home Ownership Schemes to ensure the meeting of the government's public housing target.

With the establishment of the Central Information Section in August, the Town Planning Office was able to involve itself more actively in the dissemination of planning information and in giving advice to the public on town planning and land development matters, partic- ularly in regard to planning applications under Section 16 of the Town Planning Ordinance. Of particular note during the year was the setting up of a Strategic Planning Unit in the Environment Branch. The principal function of this new unit will be to formulate a terri- torial development strategy to provide guidance to the government for the long-term provision of land and infrastructure to meet needs arising from continued population growth. This work will require, in the first instance, the commissioning of various sub- regional development studies and the reassessment - from a transportation point of view

of assumed alternative population distributions.

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     Private Building During 1980, property developers did not appear to be unduly worried by the high interest rates in the first quarter of the year and the extension of rent control to almost all tenancies in post-war premises. New building proposals submitted during the year numbered 949, compared with 988 in 1979. The total number of Occupation Permits for new buildings issued in the same period was 544, providing a total floor area 1,750,683 square metres for commercial or industrial uses and 858,880 square metres for residential purposes. The total construction cost, excluding the cost of land, amounted to $4,674 million.

Private building continued to be dominated by largescale developments such as the 64-storey Hopewell Centre, the Sun Hung Kai Centre, the Great Eagle Centre and the China Resources Building. When completed, these will dramatically change the appearance of the Wan Chai District. In the Central District of Hong Kong Island redevelopment continued with the completion of Phase I of the Landmark Development (formerly Gloucester Building). Many well-known buildings, including Marina House, the Bank of East Asia Building, Edinburgh House, Central House, the P. & O. Building and Regent House were demolished to make way for the construction of new office towers. In Kowloon, the New World Centre was in its final phase of development and the growing number of hotels and shopping complexes along the Tsim Sha Tsui waterfront to the east, and Harbour City to the west, were at advanced stages of construction. In the New Territories, private development in the Sha Tin new town was gaining momentum with a large number of industrial and residential projects under way; work continued on the Jubilee Sports Centre, the most up-to-date and largest of its kind in the territory; site formation and reclamation works were in progress on the Ho Chung Marina project overlooking Hebe Haven near Sai Kung; and Kwai Chung and Tsuen Wan continued to develop rapidly as integrated industrial, commercial and residential districts of the Tsuen Wan new town.

Intense building activities in the private sector, coupled with the government's land sale programme, kept up the heavy demands on the Geotechnical Control Branch of the Build- ings Ordinance Office. The temporary restriction on new development proposals in specified areas of the Mid-levels on Hong Kong Island continued in effect throughout the year. Meanwhile, data was collected in the extensively instrumented areas to assist in a detailed study.

During the year the Building Authority achieved little improvement in control over unauthorised structures. Altogether, 1,405 buildings were kept under surveillance, resulting in the serving of 544 Statutory Notices requiring remedial works to be effected by the

owners.

The Dangerous Building Division of the Buildings Ordinance Office carried out its principal function of dealing will dangerous and potentially dangerous buildings under the Buildings Ordinance, while the Works Division continued its primary role of repairing or demolishing dangerous buildings in the private sector in cases of default by the owners or on an emergency basis. The Works Division also increased its activities in obtaining com- pliance with orders served by the Building Authority in respect of unauthorised structures. The Buildings Ordinance Office's Mass Transit Division continued to examine Mass Transit Railway proposals and to maintain its surveillance on operations involving dewatering, tunnelling, ground anchors and blasting in order to safeguard properties adjoining the railway alignment. The division is also responsible for administering the Buildings Ordinance in respect of property developed by the Mass Transit Railway Corporation. Progress achieved in this area during the year included the completion of

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Rising to the Challenge

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Hong Kong's special talent for tackling its problems with imagination and speed is nowhere better reflected than in the f ambitious programme it has developed to house its crowded population. Spanning just 26 years, the housing programme has provided homes for more than 2.25 million people about four in every 10 of the population and brought new security and hope to their lives. More than 400,000 homes have been built and the number is growing at the rate 35,000 new flats each year. Sustaining this momentum is a major challenge which, in 1980, involved the production of one flat every seven-and-a-half minutes of a 12-hour working day, 365 days a

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December, the Housing Authority's pro- gramme recorded, without pause, the completion of its 100th housing estate, On Ting - which, combined with its sister estate, Yau Oi, will provide homes for 80,000 people in Tuen Mun new town. To witness the degree of advanced technology and planning that goes into a modern estate it is difficult to imagine the urgent im- provisation and daunting conditions that led to the programme's beginning. But while the quality of the solution has con- tinued to improve, the magnitude of the problem has not. With around 350,000 residents still living in old estates due for redevelopment; some 750.000 applicants now on the waiting list, and anywhere from 500,000 to 750.000 people in squatter areas. it will be many years yet before Hong Kong's public housing planners can afford to slacken their pace.

Previous page: Elevated walkways segre- gate pedestrian and vehicular traffic at Choi Wan in East Kowloon. Left: Emergency housing, built more than 25 years ago, is undergoing a massive conversion and re- development programme; a family takes over the keys to a new Home Ownership Scheme flat in Sui Wo Court at Sha Tin: Lung Tin, the first public housing estate to be built on Lantau, received its first residents during the year.

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    Although built more than 20 years ago, North Point Estate on Hong Kong Island remains one of the Housing Authority's most popular estates because of its convenient location.

Wah Fu, Hong Kong's largest public housing estate, offers its 52,000 residents magnificent views of the East Lamma Channel bordering the southern shores of Hong Kong Island.

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    Children's play equipment frames the twin-tower blocks at Shun Lee - part of a three estate development that will eventually house 70,000 people.

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Imaginative landscaping and sitting-out areas create a pleasant environment for the residents of the twin-estates Lek Yuen and Wo Che in Sha Tin new town.

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Rising dramatically from the rural landscape of rice paddies and banana palms, the towering cruciform blocks of Tai Hing estate symbolise the arrival of a new era in fast-developing Tuen Mun new town.

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The spacious interior of a modern rental flat reflects the way in which the public housing programme has been adapted to keep pace with the rising aspirations of the population. A typical rent for this flat would be $300 a month.

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two commercial developments over station premises in the Central District of Hong Kong Island and Stage I of a residential complex on the podium over the Kowloon Bay Depot.

Management of Buildings in Multiple Ownership

      During 1980, 237 new owners' corporations were formed under the Multi-storey Buildings (Owners' Incorporation) Ordinance. This legislation, passed in 1970, enables owners of a building in multiple ownership to incorporate themselves and appoint a committee for the better management of their building, particularly to ensure its maintenance and to uphold environmental standards. By the end of 1980, the total number of corporations was 1,659.

       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 nor legal entities in themselves. Membership is open to all residents of a particular building. By the end of 1980, 4,245 mutual aid committees were registered.

A government Working Group consisting of representatives from several departments was set up in the Kwun Tong District during 1980, under a pilot scheme aimed at assessing the effectiveness of the existing legislation governing conditions in multi-storey buildings and suggesting a basis for further improvement. The group met seven times during the year.

Rent Control of Pre-war Premises

      Legislation controlling the rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after World War II and, in 1947, it was embodied 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 new or substantially reconstructed buildings.

Increases in rents are permitted periodically, the latest being in May, 1980, when the legis- lation was amended to provide for permitted rents to be six times the standard rent in the case of domestic premises, and 12 times for business premises. In neither case, is the permitted rent to exceed the fair market rent. There are provisions for the Commissioner of Rating and Valuation to certify the user of premises and their fair market rent. A Tenancy Tribunal is appointed to 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. In addition, the department administers a Rent Officer

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     Scheme, under which rent officers attend City District Offices and the District Offices in the New Territories on set days each week to deal with referred cases and to answer enquiries on landlord and tenant matters relating to both pre-war and post-war premises.

Rent Control of Post-war Premises

Comprehensive legislation affecting post-war domestic premises in the private sector has been in force in one form or another since 1962 - apart from the period between 1966 and 1970 - and it is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinance. This legislation provides security of tenure and controls increases in rents for nearly all tenants and sub-tenants in post-war domestic premises in the private sector. Increases in rent for protected tenants are limited to a maximum of 21 per cent every two years.

      Prior to December 18, 1979, rent control provisions did not 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.

Following an upsurge of rentals in the uncontrolled sector of the domestic property market in 1979 - which created difficulties for tenants in negotiating renewals of tenancies and in finding alternative accommodation at reasonable rents - the Landlord and Tenant (Consolidation) Ordinance was amended in February, 1980, to extend controls to almost all domestic tenancies in post-war buildings. As a result, nearly all tenants previously ex- cluded from protection are now provided with security of tenure and protection from excessive increases in rent.

      At the same time, a committee was appointed under the chairmanship of the Secretary for Housing to conduct an overall review of the Landlord and Tenant (Consolidation) Ordinance. The committee's terms of reference are to review the ordinance and to make recommendations on various aspects of rent control legislation having regard, inter alia, to the demand for housing, the rate of construction of new housing, the need for adequate maintenance of the existing housing stock and to the interests and needs of developers, owner-occupiers, landlords and tenants, and of the community as a whole. Members of the public, associations and other interested parties, were invited to submit representations to the committee and a total of 200 was received. The committee met 24 times during the

year.

Land

The formulation of overall targets for the production and sale of land is the responsibility of the Special Committee on Land Production which, during the year met four times to consider various technical reports which will provide a basis for a final report to the Governor in early 1981. As an extension of the work of this committee, a Land Disposal Sub-committee under the chairmanship of the Deputy Secretary for the Environment formulates and monitors a land sales programme. Specific sites are identified and collated in the Crown Lands and Survey Office and by the New Territories Administration.

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

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Lands and Survey Office of the Public Works Department, are responsible for carrying out land sales, land and property valuations, land acquisition, estate management and clearance services. The staff of professional 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 department 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 than public housing) development in the urban areas is sold by public auction or tender. 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.

       During the year, two very valuable sites were offered to the public by tender rather than by means of public auction. The response to these two tenders was very good, and it is expected that the more valuable sites will be disposed of in this way in the future.

The government has also embarked on a programme to redevelop sites occupied by government staff quarters which are at present under-developed. The intention is to provide more staff quarters and at the same time to make land available for good quality private housing. These sites are offered for sale by public tender and the purchaser is required to build and return to the government a specified number of staff quarters as well as paying a premium. The remainder of the permissible development on each site is retained by the developer as his share of the transaction.

To meet the demand for high-class housing the government has embarked on a scheme to put on to the market more land to meet this demand. In particular, a large site of 134,990 square metres at Red Hill on Hong Kong Island was offered for sale by public tender.

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 both the urban area and the New Territories

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incorporated lease conditions requiring the developer to design a percentage of the permis- sible 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.

The option to pay premium for industrial land by instalments over 10 years with interest at 10 per cent per year, was withdrawn at the end of the year. From January 1, 1981, such premiums will be payable in full within one calendar month of the date of sale. As a transi- tional measure, the initial payment of 10 per cent of the premium soon after the auction, required under the existing instalment system, was increased to 40 per cent in July, 1980. At the same time, the alternative of paying the premium by four equal annual instalments spread over two years, without interest, was also withdrawn.

Land for community purposes, such as schools and hospitals to be developed by private non-profit-making bodies, is 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 complying 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.

Legislation

In July, the Legislative Council passed the Electricity Network (Statutory Easement) Ordinance 1980, to enable the China Light and Power Company to begin construction and maintenance works for electricity networks over private land. The need for this ordinance was prompted by the 400 kV network which is currently being established around the New Territories to distribute power from the Tap Shek Kok Power Station now under construction.

Important Transactions

Important government land transactions during 1980 included the sales by tender of two prime commercial sites. One site in the Central District, with an area of 3,214 square metres, sold for $908 million - a unit price of $282,514 per square metre. The other site, in Tsim Sha Tsui, had an area of 6,600 square metres and sold for $1,314 million or $199,136 per square metre. A large residential site of 134,990 square metres at Red Hill was also sold by tender for $1,308 million. This site can accommodate 101,243 square metres gross floor area of building development.

A tender for a site in Ap Lei Chau with an area of 24,900 square metres for industrial godown use, and requiring the purchaser to carry out largescale land reclamation work, was sold for $818 million. At Shum Wan in Aberdeen a 51,363 square-metre site for a boat marina with associated facilities was sold by tender for $116.5 million.

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       At public auction, a residential development site of 18,607 square metres in Kowloon Tong realised $210 million, and a site of 4,800 square metres on The Peak, with excellent views and usage restricted to a single family residence, sold for $19 million.

       Among the major land transactions in the New Territories during 1980 was the sale in January (for $191 million) of a 1.068-hectare site in Tuen Mun, on which the first part of the new town centre is being built. The site was the first of seven town centre sites which will be disposed of over the next few years.

       Also in January, documents were signed for the grant by private treaty of a 15-hectare site for a cement plant at Tap Shek Kok, near Tuen Mun. Investment in the plant is expected to be $1,000 million. American and local interests have joined together to build and operate the plant, the products of which will be for local use.

In August, the Secretary for the New Territories officiated at a ceremony marking the beginning of work on the Discovery Bay resort project on the outlying island of Lantau. This project, covering more than 604 hectares, will cost $2,500 million and will provide housing and recreation facilities for 20,000 people.

       Also in August, the government sold the first wholly commercial site in Tsuen Wan new town for $234 million. The site, measuring 4,600 square metres, will include a bus terminus which will be linked by covered pedestrian walkways to the Mass Transit Railway station and to other buildings in the area.

       In September, the government sold by tender to holders of land exchange entitlements, a 2.6-hectare site in Sha Tin for the town centre commercial complex. Another large land parcel that went to land exchange entitlement holders was a site of more than six hectares for high-class residential development at Tai Wo Tsuen, Tsuen Wan.

Land Office

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 drafting, completion and registration of conditions of sale, grant and exchange of Crown land; the granting of mining leases; the registration of owners' corporations; the apportion- ment of Crown rents and premia; the recovery of outstanding Crown rents; the enforce- ment 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 and government land transactions.

       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. To facilitate the im- plementation of the microfilming system, the Land Registration Ordinance was amended by the Land Registration (Amendment) Ordinance 1980, and regulations providing for the microfilming of Land Office records and for other registration procedures of the Land Office were drafted and were under discussion with the Law Society of Hong Kong at the end of the year.

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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, 193,092 instruments were registered in the Land Office, compared with 170,054 in 1979. 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 383,091 people, an increase of 21,100 over the previous year. Some own several properties, but most are owners or part-owners of small, individual flats.

Urban Renewal and Environmental Improvement

The purchase continued of privately-owned property zoned for open space and government, institutional and community uses in the areas covered by the town plans for Western District, Wan Chai and Yau Ma Tei. During the year, 11 properties were acquired at a cost of $9 million and 36 properties were cleared and demolished. All eligible tenants were offered rehousing and given an ex-gratia allowance upon clearance. The cleared sites, in most cases, will be developed and managed by the Urban Council as open space. In addition, 152 expired-lease properties in Yau Ma Tei and Tai Kok Tsui districts were taken over by the government for direct management.

       The land sales programme for the Urban Renewal Pilot Scheme (in an area bounded by Queen's Road Central, Queen's Road West, Hollywood Road, Shing Wong Street and Gough Street) is nearly completed, and it is expected that the one remaining site will be sold by auction in the near future. Accumulated revenue derived from the auction of sites within the scheme has so far reached $574 million.

       The Urban Council plans to redevelop the Western District Market, with the associated widening of Morrison Street, in a scheme designed to improve the area's general environ- ment and market facilities. The proposed market complex, which is expected to be com- pleted in 1983, 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, either party can refer the case 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.

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       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 provi- sions for the lodging of objections and the payment of compensation.

       During 1980, some $30 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 environmental improvement programmes and Mass Transit Railway acquisitions.

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 contouring for the standard metric 1:1,000 series of plans. Aerial photography for photogrammetric plotting purposes, and for engineering and environmental studies, is supplied by the Air Survey Unit, assisted by the Royal Hong Kong Auxiliary Air Force.

       Following the completion of the new main survey control system in 1979 very good progress was made in converting and adjusting minor control to the new system, with excellent results.

The cadastral sections were very busy during the year. Redevelopment of old lots accounted for most of the work in Hong Kong and Kowloon while in the New Territories most activity was centred in the new towns and smaller development areas.

Cartographic projects undertaken by the Survey Branch during 1980 included continua- tion of the revision and production of a second edition of the 1:20,000 topographic map series, 11 of which are now completed; revision and reprinting of Hong Kong Streets and Places, Volumes I and II - the former in its third edition; and the publication of the fourth 'Countryside' series map Sai Kung and Clear Water Bay. In addition, compilation was in progress for the fifth map in the series, showing the northern New Territories, and redesign- ing commerced on the first map, Hong Kong Island. A modest start was made on the production of a 1:5,000 series for the New Territories with the completion of sheets for Tai Po and Yuen Long, while the proposed 1:10,000 monochrome series was still delayed due to a staff shortage.

       Production of the interim series 1:1,000 sheets ceased due to the increase in availability of metric contours from the Photogrammetric Unit and, from now on, efforts will be concentrated on producing new fully metric sheets. Extra staff approved for this task will improve the production rate once they are recruited and trained.

       Sales of the 'Countryside' and 1:20,000 topographic map series again approached 100,000 sheets, reflecting the increasing popularity of outdoor activities such as hiking and picnicking.

       The Public Works Department's Survey Training School provides training for both the survey and cartographic disciplines. During the year, 217 government officers attended various courses at the school.

URBAN COUNCIL PUBLE LIBRARIES

REFERENCE LIBRARY

9

Social Welfare

福社

新藥

HONG KONG'S social welfare services came under the scrutiny of social workers from all over the world in July, 1980, when the territory hosted the 20th International Conference on Social Welfare and two associated professional gatherings, the Symposium of the International Federation of Social Workers and the International Congress of Schools of Social Work. Altogether, some 465 overseas and 62 local delegates took part.

      Still further attention was focused on Hong Kong when, toward the close of the conference, a Hong Kong social worker became the first Asian to be elected President of the International Council of Social Welfare. The appointment was the second for the year at international level in the field of social welfare, following the election of local ortho- paedic surgeon as President of Rehabilitation International in June.

Another significant development during the year was the publication in April of a Green Paper on the care and education of pre-primary and primary school-children. The paper outlined, inter alia, the government's proposals for improving care and education services for children under six years of age, and included a new scheme of fee assistance for low-income families. A White Paper, taking into consideration the views expressed by the public and interested parties, will be drafted for publication in 1981.

      Apart from these highlights, the year in social welfare was chiefly devoted to planning and implementing the policies and programmes laid down in the 1979 White Paper on Social Welfare into the 1980s. In April, the disability allowance was extended to the profoundly deaf, and a disability supplement was introduced for partially disabled people receiving public assistance. Among the other important advances during the year was the opening of a housing estate community centre and two community halls, and the addition of 595 places in hostels for the elderly in public housing estates, 275 places in homes for the mentally-handicapped and physically-disabled, and 1,436 subvented places in day-care centres (including 60 for mildly mentally-handicapped children).

Considerable progress was also made in obtaining public housing premises and land allocations for more residential facilities for the elderly and the disabled, and in the detailed planning of projects that will be opened over the next five years.

      The additional services arising from the 1979 White Paper and the 1977 White Paper on Rehabilitation were reflected in considerable increases in both capital and recurrent expenditure. Some $773.1 million in recurrent expenditure and $18.7 million in capital expenditure is being spent on social welfare in the 1980-1 financial year. This is an increase of $112 million in recurrent expenditure and $2.6 million in capital expenditure over 1979-80.

      Responsibility for carrying out government policies on social security and social welfare rests with the Director of Social Welfare, who heads the Social Welfare Department. The department is organised on a regional basis, with 11 district offices divided into four

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regions Hong Kong Island, West Kowloon, East Kowloon and the New Territories. The district offices are the main points of contact with the public and voluntary welfare organisations and they provide a complete range of social welfare services. The department also has Development and Social Security branches responsible for the central planning and development of new policies in social welfare and social security, and a Subventions. Branch which deals with the central administration of subventions, evaluation and the servicing of the various advisory committees.

       On all matters of social welfare policy, except rehabilitation, the government is advised by the Social Welfare Advisory Committee, whose members are appointed by the Governor. This committee is under the chairmanship of the Director of Social Welfare. The Rehabilitation Development Co-ordinating Committee advises on rehabilitation services and is chaired by an unofficial.

       During 1980, a review was carried out of the staffing structure in the voluntary sector, following the lines of a similar review in the Social Welfare Department in 1978-9. The purpose of these reviews is to ensure that the best use is made of trained social workers and to improve career structures for social workers at all levels. A working party is being set up by the Secretary for Social Services to look into the shortage of trained social workers and to devise a long-term manpower policy.

       Voluntary agencies play a key role in the provision and development of social welfare services in Hong Kong. Most are affiliated with the Hong Kong Council of Social Service and are assisted by annual subventions from the government. These subventions amounted to $159 million in the 1980-1 financial year. In the middle of the year, a government working party recommended major changes in the present discretionary system of sub- vention, which would provide 100 per cent of the financing for the basic costs of defined services, and these proposals were still being discussed with the voluntary sector at year's end.

       The Community Chest, which has some 77 welfare bodies affiliated with it, represents an endeavour by these organisations to co-ordinate their local fund-raising activities. The Community Chest raised $19 million in its 12th annual fund-raising campaign in 1979-80, compared with $17.7 million in 1978-9.

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. All of these schemes are administered 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 basic subsistence 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 dependents of their families, unless they are orphans or are without relatives.

       The scales of assistance are regularly reviewed and were last adjusted on September 1, 1980, when an increase of 22 per cent was made to keep pace with inflation. In addition to the basic scale rates, old age supplement, disability supplement (effective from April 1), and long-term supplement are payable to eligible applicants.

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An annual long-term supplement of $700 for a family, and $355 for a single person, is given to those who have relied on public assistance for not less than 12 months. The scheme also provides supplementary grants for rent, school expenses, special diets and other essential requirements.

      To encourage self-help, recipients who are not expected to seek work as a condition of their public assistance grant may retain any marginal earnings up to $150 a month. However, any earnings in excess of $250 a month are taken into account in assessing public assistance entitlements. At the end of 1980, the number of active public assistance cases was 45,664 compared with 46,114 in 1979. Expenditure on public assistance for the 1979-80 financial year totalled $193.3 million.

      The Special Needs Allowance Scheme provides a cash allowance, in addition to public assistance, to people who are severely disabled or aged 70 years or more. These allowances are non-means-tested and non-contributory but there is a residence qualification of five years for those claiming the old age allowance, and one year for those claiming the dis- ability allowance. The number of people drawing disability and old age allowances at the end of the year was 183,366 compared with 166,321 at the end of 1979. Expenditure in the 1979-80 financial year was $236.9 million, an increase of $79.2 million over the previous year.

The Criminal and Law Enforcement Injuries Compensation Scheme provides ex-gratia payments to those injured in crimes of violence or through the action of law enforcement officers in the execution of their duties. The scheme is administered by the Criminal Injuries Compensation Board and the Law Enforcement Injuries Compensation Board. During 1980, compensation under this scheme amounted to $1.28 million, compared with $1.1 million the previous year.

The Traffic Accident Victims Assistance Scheme provides immediate financial help to traffic accident victims or their dependents, regardless of who was at fault in causing the accident. The scheme does not affect the applicant's right to make other legal claims, however, those who subsequently receive damages or other compensation in respect of the same accident, must refund the compensation they have received under this scheme. Altogether, 2,247 people received aid totalling $17.1 million in 1980, compared with the 2,763 people who received $6.7 million during the period from May to December, 1979, when the scheme was introduced.

For those who are affected by disasters, emergency relief is given in the form of hot meals, blankets and other essential requirements. In addition, injury, burial and death grants are paid from the Emergency Relief Fund to victims or their families.

To prevent abuse of welfare assistance, a special team investigates cases of suspected fraud or over-payment. During the year, the team completed investigations in 112 cases, some of which were referred to the Attorney General for possible prosecution.

      The Social Security Appeal Board, which considers individual appeals against the decisions of the Director of Social Welfare regarding social security payments, heard 58 cases during the year.

Aid for Probationers

The services for criminal offenders programme gives effect to the directions of the courts on the treatment of offenders by social work methods, with the aim of reintegrating them into the community. These services include probation supervision (operated through probation offices established in each magistracy or higher court building), a remand home service, residential training in correctional institutions and after-care.

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Apart from professional services, volunteers from many walks of life participate in the programme under a Volunteer Scheme for Probationers. The purpose of the scheme is to enhance community involvement in rehabilitating probationers. Probation, which is a sentencing alternative to imprisonment, applies to offenders of all age groups. It allows offenders to remain in the community under the supervision of a probation officer and subject to prescribed rules of conduct set by the courts.

Remand homes and correctional institutions are designed to prepare offenders to return to the community as law-abiding citizens. Educational, prevocational, social and recrea- tional training is provided. The Social Welfare Department has five institutions special- ising in this work, each with a slightly different training programme to cater for different ages and sexes.

       The Begonia Road Boys' Home and the Ma Tau Wai Girls' Home are combined remand and probation institutions for offenders or young people in need of care and protection, and who are under the age of 18 years. The Castle Peak Boys' Home is for boys under 16 and above 14 on admission, who are sent there for a relatively long-term, residential, re- education programme, following conviction by the courts. The O Pui Shan Boys' Home is a reformatory school for juvenile offenders aged 14 and under on admission. Character training and education are the main objects and a family atmosphere is provided in accord- ance with modern concepts. The Kwun Tong Hostel is a probation hostel for young men aged between 16 and 21 who are placed on probation by the courts subject to the special condition that they reside at the hostel for up to one year.

The department also operates an After-care Unit which helps offenders to rejoin society by preparing them while they are still in the schools and giving them support after they leave.

       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, all make significant contributions to the correctional services programme.

Family Welfare Services

The family welfare services programme helps individuals and family members to avoid personal and family problems, or to deal with them when they arise, with the aim of preserving and strengthening the family unit. These services are provided on a territory- wide basis through 17 centres operated by the department and a number of voluntary agencies.

The services include counselling on personal and family problems; care and protection for young people under the age of 21; providing residential and foster care for children up to the age of 21; day-care for children under six; and making referrals for schooling, housing, employment, financial assistance, legal advice, medical attention, home help, and placements in appropriate institutions for vulnerable groups. The number of families and individuals assisted in 1980 totalled 19,017.

      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.

      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

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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 11,571 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 in some acute

cases.

      Medical social workers assigned to government hospitals and clinics work closely with doctors and nurses to help patients and their families to cope with the many personal problems which often accompany illness or disability.

      The Adoption Unit handles both local and overseas adoption. With the influx of Viet- namese boat refugees to Hong Kong, the unit plays an important role in handling adoption cases involving Vietnamese children. At the end of the year there were 482 cases of legal adoption by court orders, 20 proposed adoption cases and 144 cases of overseas adoption.

Care of the Elderly

In 1980, people aged 60 years and over constituted 9.7 per cent of the population com- pared with 4.8 per cent in 1961. This increasing proportion of elderly people in the com- munity has resulted in a growing number of services and facilities catering to their particular needs.

These services, which are provided mainly by the voluntary sector with assistance from the government, aim to promote the well-being of the elderly through care in the community, and by the community. The range includes home help, meals, visiting and laundry services, community education, and social and recreational activities. Multi-service centres for the elderly serve as focal points for the provision of these services and, at the end of 1980, there were five of these in operation.

      Hostel-type accommodation in public housing estates is provided for elderly single people or couples who are capable of independent living but who do not have families or are unable to live with them. For those who require personal or nursing care, residential institutional facilities are available in the form of homes for the aged and care-and-attention homes. At the end of 1980 there were 324 places in care-and-attention homes and 3,161 places in homes for the aged.

Community Building

While constantly reviewing and expanding the many welfare activities which have come to be regarded as standard services in Hong Kong, the government has attached increasing importance in recent years to promoting community welfare in a much wider sense.

      The Community Building Policy Committee was formed in 1977 to draw together and co-ordinate a territory-wide network of services and facilities which aims broadly at creating a cohesive and harmonious society in which to live. The need to foster community spirit and a sense of belonging is particularly evident in the large public housing estates and the fast-growing 'new towns' of the New Territories.

Special emphasis is given to promoting mutual concern and a community spirit by encouraging and supporting such community organisations as mutual aid committees, owners' corporations, area committees, kaifongs, rural committees, clansmen's associa- tions, community service groups and other voluntary organisations; also by providing and encouraging the provision of physical facilities for group and community activities. These facilities are provided in community centres and halls, estate community centres, kaifong and rural committee buildings, village offices and youth and children's centres throughout Hong Kong.

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       At present, three government departments contribute directly to community building at district level the Home Affairs Department in the urban areas, the New Territories Administration, and the Social Welfare Department. The Education Department, the Urban Services Department, the Recreation and Sport Service and the Royal Hong Kong Police Force also organise activities which contribute towards community building objectives.

       Voluntary agencies play an important role in the programme as well. Among the services they provide are children's and youth centres, neighbourhood level community develop- ment projects, uniformed and youth groups and volunteer work.

Services for Young People

-

Two territory-wide functions for young people - the Summer Youth Programme and the Chinese New Year Programme are organised each year by the Central Co-ordinating Committee for Youth Recreation. During the summer months, 2,000,000 young people took part in 8,000 programmes organised jointly by a number of government departments and voluntary agencies, while at Chinese New Year there were 281 events with 59,285 participants.

The School Social Work Service is designed to help school pupils whose academic, social or emotional development is in jeopardy. The service is provided jointly by the Social Welfare Department, the Education Department and voluntary agencies. Its objec- tives are to assist students in making the maximum use of their educational opportunities, to develop their potential to the fullest extent, and to prepare for responsible adult life. In primary schools the work is carried out by student guidance officers of the Education Department, who are former teachers with in-service social work training. They have the support of professional social workers from the Social Welfare Department and voluntary agencies.

       During the 1979-80 school year, five student guidance officers extended counselling to 349 primary schools with a student population of 43,363.

       In secondary schools the service is provided by professional social workers from the Social Welfare Department and voluntary agencies. During the 1979-80 school year, the service was available in 213 secondary schools and it is hoped to extend it to cover all schools in 1981.

A further area in which social workers are active among the young is in staffing out- reaching teams which establish direct contact with young people in places where they may be at risk. Assistance and guidance is offered to help these youngsters to solve any personal problems they may have and so bring about a change of behaviour. There are 18 out-reaching teams operating in Hong Kong.

Rehabilitation

       Rehabilitation services are aimed at enabling disabled people to develop their physical, mental and social capabilities to the fullest extent possible, and to help them become integrated into the community. The Social Welfare Department is responsible for meeting the general welfare and social rehabilitation needs of the disabled, either through direct services or by providing subventions to voluntary agencies - which have played an im- portant role in the development of services in this field.

In accordance with proposals made in the 1977 Rehabilitation White Paper, a number of changes in departmental responsibilities have taken place. The Education Department has assumed responsibility for the education of disabled children of school age, and most

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of the children's training centres run by voluntary agencies have been transferred to the Education Department and placed under the Codes of Aid for Special Education. This operation is expected to be completed in 1981 when all of the remaining centres will have been transferred to the Education Department. As a result, the Social Welfare Department will cease to operate its own children's centres and will convert the premises for alternative use. During 1980, one centre was converted to a sheltered workshop and three others became work activity centres providing day-care training for severely mentally handicapped adults.

The Education Department is also assuming, by stages, the responsibility for providing vocational training for the disabled, and in 1980 took over from the Social Welfare Depart- ment the vocational and pre-vocational training sections of the World Rehabilitation Fund Day Centre. Similarly, the responsibility for placing the deaf, blind and physically disabled in employment has been transferred from the Job Placement Unit of the Social Welfare Department to a newly-established Selective Placement Service run by the Labour Department. In 1982-3 this service will be extended to the ex-mentally ill and mentally handicapped, and to the socially handicapped in 1984-5.

      The Social Welfare Department continues to provide counselling services for the disabled, and to be responsible for pre-school care, residential and day care for adults, sheltered workshops, special transport schemes and recreation and sports. At present, the department operates 19 centres and institutions and subvents 44 centres run by voluntary agencies, serving about 4,000 disabled people.

      During 1980, a total of 138 additional places were provided for disabled pre-school children in three special child-care centres operated by the Spastics Association of Hong Kong, Caritas and the Po Leung Kuk. A fourth centre with 24 places was being planned for operation by the Hong Kong Society for the Deaf. In addition, 60 places were provided for mildly disabled children in ordinary child-care centres, bringing the total number of these places to 180.

       Residential places were increased by 86 for disabled children and 180 for disabled adults. These became available chiefly through the expansion of residential facilities at Canossa School for the Blind, Pinehill No. 3 School and the Wong Tai Sin Hostel run by the Spastics Association of Hong Kong; the relocation of the Hong Kong Red Cross Hostel from Tsz Wan Shan to Shun Lee Estate; and the opening of new centres by the Mental Health Association, the Spastics Association and the Society of Homes for the Handicapped.

      The Social Welfare Department opened two new sheltered workshops for 220 people at Pak Tin and Tung Tau estates, while five new workshops, providing 395 places, were opened by four voluntary agencies - Caritas, the Spastics Association of Hong Kong, the Hong Kong Federation of Handicapped Youth and the New Life Psychiatric Rehabilita- tion Association. The Hong Kong Society for the Blind reprovisioned its Yuen Long workshop in Tai Hang Estate, Tuen Mun, making more space available for additional residential places at the Yuen Long Home for the Blind.

      Progress was also seen in a relatively new service in Hong Kong, with the opening of more day-care centres where severely mentally handicapped adults are taught self-care and simple work activities. The Social Welfare Department opened three of these centres during the year in premises previously used for children's centres; the new facilities enable an intake of 110. In addition, 48 places became available in conjunction with residential centres operated by the Society of Homes for the Handicapped.

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Emphasis continued also to be placed on social and recreational services for the disabled. Of particular note was the opening of two new centres for the deaf, run by the Hong Kong Recreational Club for the Deaf and the Y's Men's Club of Victoria; two centres for the ex-mentally ill, run by the New Life Psychiatric Rehabilitation Association and the Mental Health Association; and two for the mentally handicapped, run by the Sports Association for the Mentally Handicapped and the Action Group for Aid to the Mentally Handicapped. Also during 1980, the Social Welfare Department began to subvent the Rehabus Scheme operated by the Hong Kong Society for Rehabilitation to provide special transport facilities for severely disabled people who cannot use the regular transport services. There are now 11 of these buses operating throughout Hong Kong Island and Kowloon.

Training Social Workers

Formal social work education is provided by five training institutions - the University of Hong Kong, the Chinese University of Hong Kong, the Baptist College, Shue Yan College and the Hong Kong Polytechnic. In the 1979-80 academic year there were 198 social work graduates from these institutions.

       A major function of the Training Section of the Social Welfare Department is to provide in-service training in social work, including refresher courses and staff development pro- grammes, to social welfare workers employed in the government and voluntary agencies. A total of 38 courses, seminars and workshops were organised during the year.

In addition, the 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 child-care centre workers undergoing in-service training.

The Training Section also contributes to social work education through field work placement and supervision services to social work students from the academic institutions. Altogether, 191 students were assisted by the department during the year.

To help people wishing to be trained in social work, a number of grants and scholar- ships are available from the Social Work Training Fund, the Hong Kong and Shanghai Banking Corporation, the government and various private donors.

10

Public Order

THROUGHOUT 1980 illegal immigration from China continued to be a major cause of con- cern and made heavy demands on the manpower and resources of Hong Kong's law enforcement agencies. Heavy pressures were felt as members of the Royal Hong Kong Police Force, supported by Her Majesty's Forces, were diverted from their normal duties to spend long hours engaged in anti-illegal immigration patrols on land and at sea, in manning road blocks to intercept 'IIs' en route to the urban areas, in apprehending and escorting them, and also in investigating areas of criminal activity associated with the enormous number of new arrivals.

Following the introduction of regulations in September making it compulsory to carry identity cards in the New Territories (later extended to the whole territory as part of the new measures to stem the influx in late October), police had the added task of checking the identity of members of the public, aged 15 years and over.

In addition to these activities, which were in the forefront of public attention during the year, major contributions towards the general welfare and safety of the community were 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 has the chief responsibility for maintaining law and order throughout the territory. In this it is aided by the Royal Hong Kong Auxiliary Police Force which provided valuable strength during the year when an average of 1,000 officers of the regular force were deployed every day on anti-illegal immigration duties.

The incidence of 'quick cash' crime, which reached a peak in September, 1979, declined during 1980 as a result of concerted police efforts and a greater public awareness of the need for more determined efforts to prevent crime - a message emphasised strongly through- out the year by the Fight Crime Campaign. Particularly highlighted was the long-term need to design new buildings with built-in security measures. In line with the campaign, which was in its seventh year, the Police Crime Prevention Bureau was expanded to include specially-trained Divisional Crime Prevention Officers to give advice on security matters and to visit the scenes of crimes to advise victims on ways to make their premises safer in future.

      Heavy traffic congestion and associated parking and control problems continued to beset the Traffic Police. Contributing in no small measure to the situation was the continuing increase in the number of registered vehicles. By the end of 1980 the figure had risen from 260,928 to 299,395 - a rise of 14.7 per cent - giving a vehicle density of 258 vehicles for each of the 1,161 kilometres of road.

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       A memorable event for the force was the visit in February of Her Royal Highness Princess Alexandra and the Honourable Angus Ogilvy. As Honorary Commandant-General of the Royal Hong Kong Police, Princess Alexandra was the guest of honour at the Police Chinese New Year Fair at the Kai Tak Club, which was attended by some 5,000 members of the force and their families.

      Overall, the year within the police force was mainly one of planned consolidation and improvement. The appointment of a Police Administration Officer, at the Deputy Com- missioner of Police level, increased the development capability of the force and further strengthened liaison between the police and the central administration of the government. The year also saw the reorganisation into two separate wings of the Operations and Support Department in police headquarters. Development continued with the opening of the Tuen Mun Police Division and the completion of six neighbourhood police units and six police reporting centres.

      The process of consolidation also continued in the recruitment field and targets for an additional 2,000 constables and 198 inspectors were set for the 1980-1 financial year. In line with the policy of placing greater emphasis on the standard of officer recruited, the minimum entry qualification for constables was raised to Form 5.

      Force arrangements for dealing with the public and the media were reviewed and internal training on community relations was increased for all ranks. These measures, along with additional efforts in all aspects of public relations, encouraged more people to become involved in the fight against crime. During 1980, members of the public were responsible for 11 per cent of all arrests made an all-time record.

In November, two auxiliary police constables PC Chan Kwan-fai and PC Tung Chi-kan were invited to Buckingham Palace to receive the Queen's Gallantry Medal. It was the first time the award had been bestowed upon members of the auxiliary police. The two men were honoured for their bravery during a shooting incident involving three armed men in 1979.

In the course of the year, two police officers gave their lives while on duty and a further 102 were injured.

      The inquest and subsequent Judicial Commission of Inquiry into the death of Police Inspector John MacLennan, who was found dead in his Ho Man Tin flat, was the focus of considerable public attention.

Crime

During 1980, 73,838 crimes (excluding blackmail and associated thefts) were reported to the police, compared with 62,346 in 1979. Of these 37,470 were detected, giving a detection rate of 50.7 per cent compared with 51.9 per cent the previous year.

      A total of 27,552 people were arrested compared with 23,374 in 1979. Adults prosecuted totalled 23,699, and juveniles (under 16 years) numbered 3,853 giving increases of 14.3 per cent and 45.9 per cent, respectively, over the previous year. The increase in juvenile delinquency is causing serious concern.

Triads

The Triad Society Division continued to exert pressure on organised triad gang activities. In line with changes in tactics by various gangs, the charter of the division has been slightly modified to concentrate on largescale protection, monopoly and other extortion-type rackets involving public transport, redecoration companies, resite areas and squatter exploitation, with the aim of apprehending the organisers.

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During 1980, a number of special operations aimed at specific triad groups were carried out. Amongst these was an operation against the 'King Yee', one of Hong Kong's prominent triad societies, which resulted in 35 people being arrested and charged with multiple counts of triad-related offences. The division also broke up a triad initiation ceremony conducted by the 14K Triad Society, in June.

      By the end of the year, 434 people had been arrested for offences with triad connections, 82 had been prosecuted for blackmail and nine charges of conspiracy were filed.

Commercial Crime

The Commercial Crime Bureau concluded investigations into two public companies. In one of the cases, the ex-managing director was convicted on various fraud charges connected with the flotation and trading of a company between 1973 and 1975. In the other case, an order was granted for the ex-chairman to be extradited from the United States of America to face charges relating to the issued share capital of the company. Investigations continued into several other complex fraud cases.

Enquiries also continued into the sinking of three cargo vessels and allegations of fraud stemming from subsequent insurance claims. One shipowner was charged in this connec- tion (but was subsequently acquitted), while two other ship operators were charged with offences relating to the alleged bribing of insurance investigators.

      Action was taken against both possessors and producers of counterfeit currency and coinage. Three separate syndicates counterfeiting HK$5 coins were smashed and a large quantity of counterfeit coins and minting equipment was seized. In one counterfeit currency case, a Chinese man was arrested for counterfeiting United States banknotes, an activity he had intermittently been engaged in for more than eight years. Partially-completed bank- notes to the face value of about HK$24 million were seized.

Narcotics

     Continued police action hampered the attempts by small groups to import quantities of narcotics and to expand their operations. The import by small loosely-knit syndicates of relatively high-quality heroin base (a trend that started in 1978), remained unchanged during 1980. The general availability of heroin at street level increased over that of 1979 and the average purity remained moderately stable throughout the year, averaging about 26 per cent. Retail prices remained unchanged, varying between about $400,000 and $500,000 per kilogram, although wholesale illicit prices dropped slightly.

Attendance at Methadone Treatment Centres, which registered a sharp increase in mid- 1979, remained stable at a moderately high level above that recorded prior to the period of shortage in 1979 - showing a 7.6 per cent decline over the whole year from about 7,250 to 6,700 people daily.

During 1980 it was apparent that there was again a considerable shortage of opium in the Golden Triangle area straddling the borders of Burma, Laos and Thailand, although it was not as severe as that of the previous year. This was due to an abnormally heavy rainfall in the planting season at the end of 1979 and drought at the beginning of 1980. It is also believed that the shortfall of narcotics from the area was offset by increased cultiva- tion in the Iran-Pakistan-Afghanistan area.

Abuse of cannabis, although a relatively minor problem in comparison to heroin abuse, continued to be closely monitored. The most disturbing aspect of this problem was the continuing trend of bulk imports for sale and distribution, as opposed to the situation in previous years when the drug was imported in small quantities for personal use.

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     Computerisation of the Criminal Records Bureau Nominal Index System began and a complete systems design was drawn up. The system is expected to be fully operational by mid-1982.

Crime Prevention

The Crime Prevention Bureau increased its strength by about 50 men and small crime prevention teams are now working in every division. Of particular note was a permanent exhibition of security equipment which was opened at police headquarters, and a special campaign entitled 'Stop Crime Now', which was launched to make people more aware of their civic duty to take preventive measures to protect their own property.

Illegal Immigration

Altogether, 82,154 illegal immigrants from China were arrested and repatriated while 8,428 Vietnamese refugees arrived in Hong Kong by sea. Resettlement of the Vietnamese to other countries continued slowly but steadily, however, and there were still 24,066 refugees in Hong Kong camps at the end of the year.

To keep pace with the development of new tactics by syndicates involved in illegal im- migration, particularly those using powerful speedboats between Macau and Hong Kong, the Marine Police Small Boat Unit was strengthened by the addition of three Zodiac in- flatable craft and three speedboats, which proved highly effective in apprehending illegal immigrants in shallow waters. The Small Boat Unit was responsible for 10,780 arrests. In addition, the Marine Police District was provided with nine new, high-speed launches. The command and control centre for maritime operations (POLNAV) was reorganised to include a Royal Navy unit to co-ordinate all Royal Navy and military resources acting in support of the Marine Police. At the same time, the Marine Police maintained close liaison with the Royal Air Force and the Royal Hong Kong Auxiliary Air Force in whose aircraft police observers flew daily in search of illegal immigrants.

      In the New Territories, intensive efforts were made to counter illegal immigration across the land frontier. Police patrols continued to complement HM Forces and a new chain link fence, topped with dannert wire and illuminated with powerful lights supported by observation towers, was erected along the entire length of the land border. The 'snake fence', lying some distance back from the actual border and stretching from Sha Tau Kok to Lok Ma Chau, was realigned and strengthened.

      New legislation was introduced in July, 1980, under which all illegal immigrants coming to Hong Kong direct from China were classed as 'unauthorised entrants'. The effect of the new law was that anyone found to be aiding and abetting the entry of illegal immigrants from China could be charged under legislation enacted in the previous year, which provided a maximum penalty of life imprisonment and a $5,000,000 fine for the offence. During the year, 555 people were charged with aiding and abetting illegal immigrants. Although the maximum sentences were not imposed, some offenders were sentenced to between five and six years' imprisonment.

Public Order

There were no major incidents affecting the territory's internal security, although a few localised and spontaneous incidents of confrontation between the police and members of the public created a great deal of media and general interest. However, these incidents were not indicative of any serious deterioration in relations between the police and the public.

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      A review of legislation relating to the holding of public meetings and processions was completed and resulted in the enactment of the Public Order (Amendment) Ordinance 1980. The amended ordinance gives a more precise definition of what constitutes a 'public meeting'; it replaces the licensing requirement for public meetings by a simpler system of notification; and exempts small meetings and processions, and some public meetings held in private premises, from needing any form of prior authorisation. The aim of the initial review was to liberalise the law as much as possible, bearing in mind the special considera- tions which apply in Hong Kong's crowded environment. Underlying the amending legisla- tion was a desire to facilitate the expression of views in public and so provide easier channels of communications on matters of public interest, while at the same time ensuring that a satisfactory state of public order will still be maintained.

Traffic

Traffic accidents which showed a welcome levelling-off in 1979 totalled 16,304 in 1980, and resulted in 404 people being killed on the roads and 20,559 others being injured. This was a 7.5 per cent increase over the number of accidents recorded the previous year. In an effort to reduce the accident toll, the Road Safety Division soon to be established within the Public Works Department will be intensifying its research into the underlying causes of Hong Kong's traffic accidents.

      The opening of the Mass Transit Railway had a noticeable effect on traffic patterns: its transportation of about half a million people daily, together with the reinstatement of numerous diversions and roadworks involved in its construction, resulted in improved traffic conditions in certain areas. Meanwhile, work progressed on the MTR's Tsuen Wan extension which is expected to open in mid-1982. In December, the government decided to proceed with the construction of a further MTR system along the northern coast of Hong Kong Island, and planning went ahead on traffic management in connection with the project.

      The penalties for parking contraventions under the Fixed Penalty (Traffic Contraven- tions) Ordinance were increased from $30 to $70 and fixed penalties for 'moving' traffic offences under the Fixed Penalty (Criminal Proceedings) Ordinance were doubled to $100 and $200.

      Two major road safety publicity campaigns were mounted by the government. One was aimed at educating pedestrians in correct road use while the second urged motorists to drive safely and ensure their vehicles undergo regular maintenance checks. The campaigns were directed at the two main current causes of traffic accidents - pedestrian negligence and drivers travelling too fast for prevailing road conditions. Both campaigns received active support from a number of organisations and reached people from all walks of life.

Assistance to the Public

The police force comes into contact with members of the public more often than any other government department or organisation. Concerted efforts in encouraging the public to approach the police for help yielded positive results during 1980 and a total of 415,963 reports were received on the '999' telephone system, at police stations, neighbourhood police units, reporting centres, and by patrolling police officers. This represented an in- crease of 84,215 over last year's total of 331,748.

      A most encouraging feature was that, of the total number of reports received, 290,994 (or 70 per cent) were not related to crime, compared with 237,259 (72 per cent) last year. These reports were mainly for general assistance in such areas as domestic disputes, tenancy

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matters, nuisance complaints, household accidents, complaints of inaction by other depart- ments and requests for information, advice and help. The steep rise in the number of requests for police assistance is evidence of growing public confidence in the force.

       The Marine Police also played a significant role in providing assistance to the public and shore parties from patrol launches regularly visited various islands and remote areas to bring the day-to-day problems of the villagers quickly to the notice of the relevant govern- ment departments. In addition, police launches were regularly engaged in casualty evacua- tions and requests for assistance from people aboard pleasure craft, canoeists and swimmers.

Community Relations

      Continued efforts by the police to improve its relations with the public - through the Police Community Relations Offices, neighbourhood police units, Junior Police Call, the Good Citizen Award and co-ordinated publicity campaigns - played a significant role in en- couraging members of the public to become more actively involved in the fight against crime. Results were reflected by the fact, mentioned earlier, that 11 per cent of all arrests during the year were made by members of the public.

       Junior Police Call enrolled its 250,000th member in July and by the end of the year its membership stood at 257,452 - making it possibly the largest youth organisation of its type in the world. Organised through the scheme are some 250 to 300 different youth activities ranging from sporting competitions and camps to fund-raising campaigns for charity and carrying out domestic chores for the aged and disabled. Weekly radio and television programmes continued to be produced in connection with the scheme.

Four winners of the Young People's 'Help the Police' competition held in 1979 visited New Zealand early in 1980 as guests of the New Zealand police. Now, plans are being made for the winners of the 1981 competitions to have a holiday in Canada as guests of the Royal Canadian Mounted Police.

A further 217 civic-minded citizens, who actively helped the police in combating crime, were given Good Citizen Awards by the Hong Kong General Chamber of Commerce. This brought to 942 the total number of people to have been selected for the award since the scheme was launched in 1973.

       Following the success of the Chinese television drama series On the Beat, produced in 1979, the series was extended by a further 10 episodes in 1980. The programmes began screening in September and continued to attract good prime-time audiences. Production of the two long-established, weekly Police Report television programmes, which seek help from the public in solving outstanding crimes, continued throughout the year with 437 arrests being attributed to information received from viewers.

Fight Crime Committees

Community efforts in preventing and combating crime are co-ordinated by the Fight Crime Committee which has been in existence since 1973. Chaired by the Secretary for Home Affairs and attended by the Secretary for Security and other senior government officials, the committee also includes seven unofficial members appointed by the Governor. Its terms of reference are to plan, organise and co-ordinate government and public efforts to assist the police to combat crime.

       The committee has considered a wide range of crime-related topics since its inception and has commissioned a number of important surveys, the latest being a fullscale study on crime victimisation. Various legislative amendments have also been brought about through its work, the most recent of these being the overhaul of the law relating to loitering.

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      The Fight Crime Committee oversees the annual Fight Crime Publicity Campaign and its members frequently participate in publicity and promotional activities organised by the police force Public Relations Wing and the Information Services Department. The com- mittee also undertakes an on-going review of territory-wide street lighting facilities to ensure the best available resources are directed towards eliminating unlit paths and street- corners, and other crime blackspots.

At the district level, a network of District Fight Crime Committees promote frequent contact between the police and members of the public. Both official and unofficial members of these committees are actively involved in the planning, co-ordination and monitoring of crime-fighting activities at the local level. While the district police representatives make a point of keeping the committees will briefed on district crime statistics, the committee members' perspective on local conditions and problems is, in turn, of assistance to the police in combating crime.

      District Fight Crime Committees channel their views to the central Fight Crime Com- mittee by the submission of quarterly reports which are discussed at the central forum.

Recruitment and Personnel

By the end of 1980 the establishment of the force had risen to 26,180, an increase of 1,430 over the corresponding figure in 1979. In addition, the force had an establishment of 4,260 civilians, representing 16.3 per cent of the overall establishment.

      Despite the raising of the minimum educational standards for constables, the number of applications to enter the force stood at 5,565. Of these, 72.9 per cent met the required physical and educational standards and 1,621 constables, including 60 women constables, were taken on strength during the year.

The 179 officers appointed to the inspectorate came from three major sources. Officers from overseas (principally the United Kingdom) numbered 54, while 51 local applicants were appointed directly to the inspectorate and 74 officers were promoted from the junior ranks.

      A new scheme introduced during the year provides an opportunity for exceptionally experienced and capable station sergeants, who do not possess a certificate of proficiency in English, to be promoted to the rank of inspector. In this way, six station sergeants were promoted in 1980 after being recommended by their commanders and selected by a Force Promotion Board. From now on, the board will sit annually to select further suitable officers.

Training

The Police Training School, situated at Wong Chuk Hang, Aberdeen, continued to provide a 20-week basic training course for police constables and a 36-week course for recruit inspectors. Instruction covers criminal law, police procedures, leadership training, court procedures, physical training, first aid, weapon training and drill. Overseas officers also attend an eight-week course in colloquial Cantonese.

      In addition to basic training, the school runs training courses for serving junior police officers and newly-promoted NCO's to up-date their knowledge on new legislation and to prepare officers for higher rank. Courses are also conducted for newly-recruited traffic wardens and there are specialised traffic courses for serving officers.

      A District Continuation Training Scheme operates from centres in each of the four police districts. It provides additional training for constables in their first two years of service

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after passing out from the Police Training School and involves class attendance for two consecutive days each month. This scheme supplements the constables' practical knowledge and also prepares them for promotion examinations, which they may take after three years' service.

The Detective Training Wing of the Police Training School moved into new premises at Kai Tak and continued holding 12-week, main training courses throughout the year. Each year, four courses are held with 20 inspectorate officers, 20 detective sergeants and 100 detective constables attending each course. Police officers from overseas forces and officers from the Immigration Department and Customs and Excise Service also regularly attend. The added facilities of the new school enabled the commencement, in June, of preliminary courses for Uniform Branch inspectorate officers with CID potential. These courses are of four weeks' duration and are designed to equip officers to enter the CID at divisional level.

The Marine Police Training School, which runs courses in navigation, seamanship, engineering and wireless telegraphy to prepare police officers for duty at sea, moved into more spacious premises at the old Aberdeen Police Station and enabled more personnel to attend its regular courses. During 1980, 597 men and women officers underwent training at the school. In addition, 69 engineering officers attended courses in Singapore on the operation of the new Damen launches.

During the year, 1,614 police officers, ranging from the rank of constable to super- intendent, underwent training in all aspects of crowd control and internal security at the Police Tactical Unit at Fanling. The training consisted of a three-week cadre course followed by a 10-week course for the full four-platoon company. After training, the companies per- formed operational duties in various police districts.

Some 216 junior police officers attended full-time English language courses of six months' duration, and 14 local inspectorate officers attended an English language training course in the United Kingdom followed by working attachments to police forces there. In addition, 17 police officers were undertaking the diploma course in Japanese organised by the Hong Kong Polytechnic.

       Following recent surveys by the British Council, functional English courses were started for Uniformed Branch and CID junior police officers at the Police Education and Language Section in Canton Road, and the Detective Training Wing at Kai Tak. Twelve officers attended radio telephony courses at the Hong Kong Polytechnic.

Police Cadet School

Since its formation in 1973, the establishment of the Police Cadet School has progres- sively been increased from its original 150 to its present 750. During its seven years of operation, 1,148 cadets have graduated from the school. Of this number, 1,001 joined the police force, 31 entered the Fire Services Department, 51 chose the Customs and Excise Service and 21 joined the Prisons Department.

Organisation and Structure

Apart from the organisational changes in police headquarters mentioned earlier, the New Territories District was strengthened in 1980 to cope with the rapid increase in the popula- tion it serves. By 1985-6, the number of people in the area is expected to reach 2,100,000. At the end of the year, the district had a total establishment of 3,567 police officers, with an actual strength of 3,399.

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Special provisions had to be made for policing the Modified Initial System of the Mass Transit Railway System, which was officially opened in February, 1980. The railway traverses eight police divisions - six in Kowloon and two on the Island - and so is provided with a separate division, the MTR Police Division, which started operation in late 1979 and now has an establishment of 137 police officers.

The Airport Division was further strengthened to enhance the security and day-to-day policing of the Hong Kong International Airport at Kai Tak, to cope with the increasing traffic and major structural developments. High-level liaison was maintained with organisa- tions in, and connected with, the aviation industry and security within and outside Hong Kong.

Buildings and Equipment

     Approval was obtained for a number of building projects of major importance. Foremost, was the acceptance of a proposal for a new force headquarters building to replace the existing headquarters. When constructed, the new building will also provide a new district headquarters for Hong Kong Island and a new divisional police station for Wan Chai District. Other projects provide for the expansion of the Police Training School, the modernisation of older police stations, improvements to existing canteens and messes and the installation of fitness training rooms at selected police stations. In August, the New Territories Police District Headquarters was moved to the old Sha Tin Police Station building pending the construction of new premises.

The Communications and Transport Branch manages a fleet of 1,490 vehicles (com- prising 999 four-wheel vehicles and 458 motorcycles), and is responsible for the provision, maintenance and development of a highly-sophisticated communications network.

      A major consultancy for the telecommunications requirements for policing the Mass Transit Railway was signed and equipment tenders were issued. In addition, a project team began the study and design of a system to provide a joint police-armed services radio communications network for all maritime forces in Hong Kong, and to also have the capability to reach service aircraft and military units.

Further background work continued on major projects such as extensions to the beat radio scheme, however, the major technical planning effort was directed toward replanning and replacing much of the VHF radio networks. Apart from the age and condition of much of the equipment, new standards of radio equipment will be necessary from 1982.

Complaints Against Police Office

Members of the public can register complaints about police procedures or misconduct by police officers through the Complaints Against Police Office, which has premises on both sides of the harbour. The offices monitor all investigations into complaints made against members of the force, and investigates all complaints of misconduct and alleged criminal offences by police officers, except those involving corruption (which are handled by the Independent Commission Against Corruption). During 1980, 2,601 complaints were received, a 13.7 per cent rise over the figure for 1979.

The UMELCO Police Complaints Group continues to review the handling of such com- plaints at its monthly meetings. The group comprises seven 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.

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The Royal Hong Kong Auxiliary Police Force, which has an establishment of 5,176, recruits volunteers from all walks of life. Its actual strength in 1980 was 5,005. The principal role of the auxiliary force is to support the regular force in its constabulary duties. In an emergency, when mobilisation may be ordered, the auxiliaries are provided for internal security duties.

During the year, a daily average of 780 auxiliary volunteers turned out for constabulary duties in support of the regular force with a further 162 being provided as a result of the mobilisation to strengthen anti-illegal immigration operations.

       Parity of pay with regular force salaries - from the rank of constable to station sergeant, with flat rate payments above this level was approved with retrospective effect from April 1, 1980. The pay adjustments stimulated recruitment to the force and additional recruit training courses were organised to cope with the increase in applicants.

      Also approved later in the year was the payment of ex-gratia allowances to auxiliary policemen who are required to perform continuous active service in excess of eight hours. in any period of 24 hours. It is intended that this should apply in emergency situations only.

Customs and Excise Service

The Customs and Excise Service is a disciplined force which forms a self-contained part of the Department of Customs and Controls - one of the three constituent departments of the Trade Industry and Customs Department. Its main functions are to enforce the laws of Hong Kong relating to dutiable commodities, dangerous drugs, import and export controls and copyright protection. The service is also charged with a wide range of other responsibilities, including the prevention and detection of illegally imported goods which are prohibited or restricted for reasons of public health and safety, or in compliance with international obligations.

      The establishment and structure of the service are undergoing major reorganisation pro- grammes to meet present-day conditions and growing responsibilities, which have increased both in complexity and variety. The aim of the moves is to provide for more efficient and effective management and control, and improved operational standards. To strengthen the administration of the service, a Management Technical Unit was established in late 1979 to provide appropriate advisory and technical support; to provide an organised system of internal management control; and to advise on the organisational structure and monitor the service's future expansion. The establishment at the end of 1980 totalled 1,565 personnel in all ranks, supported by 142 civilians. The Commissioner of the Customs and Controls Department is the Commissioner of the Customs and Excise Service.

Revenue Protection

There are four dutiable commodities in Hong Kong - alcoholic liquors, tobacco, methyl alcohol and hydrocarbon oils used as fuel for motor vehicles and aircraft. The Customs and Excise Service is responsible for collecting and protecting revenue derived from dutiable commodities. Controls over the import, export, manufacture, sale and storage of these commodities throughout Hong Kong are imposed under the Dutiable Commodities Ordinance, which is administered by the service. Some $883 million in revenue was collected on dutiable commodities in the 1979-80 financial year, compared with $830 million in 1978-9. Seizures and confiscations involved 1,002 kilograms of tobacco, 10,598 litres of liquor and 5,957 litres of hydrocarbon oil. A total of 1,007 people were arrested or sum- monsed, and fines amounting to $325,523 were imposed by the courts.

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The service is responsible for the prevention and suppression of illicit trafficking in narcotics, other dangerous drugs and acetylating substances under the Dangerous Drugs Ordinance, the Pharmacy and Poisons Ordinance and the Acetylating Substances (Control) Ordinance. More than half of the service is committed to anti-narcotics activities. Apart from inter- cepting illegal imports by sea and air, action is also taken against drug manufacturing, trafficking and smoking of drugs on land. The service has maintained close liaison and co-operation with overseas customs authorities and other law enforcement agencies in many parts of the world in an effort to combat drug trafficking and abuse. Much closer links have also been established locally with the Narcotics Bureau of the Royal Hong Kong Police Force for the purpose of combined operations and exchanging information and intelligence.

Considerable success has been achieved by the Joint Intelligence Unit formed at Hong Kong International Airport in July, 1979. Comprising two mixed teams of police and customs officers, the unit is able to combine the expertise of the two enforcement agencies in gathering information and intelligence on drug trafficking by air. Since its inception, the unit has arrested 11 drug couriers, in addition to fulfilling its intelligence role.

During the year, anti-narcotics operations led to the seizure of 175 kilograms of dangerous drugs including 27 kilograms of heroin and 38 of heroin base. A total of 767 people were arrested for narcotics offences, of whom 579 were charged with possession for personal use or with smoking dangerous drugs. The illicit market value of the narcotics seized was estimated at more than $74 million.

Copyright Protection

The Customs and Excise Service is the sole agency responsible for enforcing the Copyright Ordinance. Despite the relatively short history of the Copyright Protection Unit - which is responsible for detecting and suppressing the manufacture and distribution of un- authorised copies of literary, dramatic and musical works - excellent results have been achieved and the service has earned international acclaim in its field. During the year, the unit conducted 36 operations in connection with copyright infringement, resulting in the seizure of 83 tape recorders, 10 records, 5,160 pirated tapes, and 6,101 pirated books. A total of 24 people were convicted for various copyright offences and fines amounting to $48,350 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 course and a firing range. It also has a museum displaying a variety of ingenious smuggling devices, narcotics paraphernalia and illicit distilling apparatus. Since it opened in 1974, the school has been used by other agencies, such as the United Nations, for a variety of courses and seminars.

The school provides training courses for new appointees entering as customs officers or inspectors. These courses cover the full range of basic duties, and such ancillary training as first-aid, life-saving, unarmed combat and the correct use and care of firearms. The school also runs specialist courses in prosecution techniques, driving, supervisory develop- ment and skin-diving. It also provides refresher training for officers whose knowledge of law and customs working procedures needs to be brought up-to-date. During the year, 188 recruits and 185 serving officers received training at the school.

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A number of senior officers have been sent to the United Kingdom, Australia, the United States of America and various European countries for courses on customs control pro- cedures or seminars on anti-narcotics measures. Others have attended personnel manage- ment courses at local and overseas universities, and the Hong Kong Polytechnic, to develop their leadership and supervisory abilities.

Independent Commission Against Corruption

The year 1980 was one of increased activity for the Independent Commission Against Corruption (ICAC). A record number of 333 cases were brought to court and action was stepped-up on the corruption prevention and community relations fronts.

The ICAC was set up in February, 1974, to tackle the problem of corruption through detection and investigation, prevention, and the enlistment of public support in fighting corruption. The commission is financed from general revenue and the Commissioner of the ICAC answers directly to the Governor and engages his own staff.

The commission has an establishment of 1,096, with 644 personnel in the operations department, 78 in the corruption prevention department and 268 in the community rela- tions department. Administration support for the three departments is provided by an administration branch consisting of 106 posts. At the end of the year, the commission had 974 members of staff, with 600 in operations, 60 in corruption prevention, 225 in com- munity relations and 89 in the administration branch.

The commission receives advice on policy matters affecting staffing, financial estimates, administration and other aspects of its work from the Advisory Committee on Corruption, which consists of leading citizens and senior government officials. Each of the three func- tional departments of the commission has a separate advisory committee whose member- ship is 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.

Operations

The Operations Department is responsible for receiving and investigating reports of alleged and suspected offences under the Prevention of Bribery Ordinance, the ICAC Ordinance and the Corrupt and Illegal Practices Ordinance.

In 1980, 333 people were taken to court for alleged violations under these ordinances. This was the highest number of prosecutions since the commission was established. Of the 264 prosecutions completed by the end of the year, 202 resulted in conviction, representing a conviction rate of 77 per cent. A further 64 cases were still pending. During the year, 82 reports were submitted by the commission to various government departments for their consideration of disciplinary or administrative action against serving government officers.

The department received 1,772 corruption complaints in 1980 compared to 1,665 in 1979. Of these, 750 were made by telephone; 469 by personal visits to the commission's 24-hour report centre and the nine ICAC local offices; and 343 were by letter. A significant trend in the complaints received was the increase in reports alleging corruption in the private sector, which rose from 398 in 1979 to 534 during 1980. Corruption complaints against members of the Royal Hong Kong Police Force eased off during the year. In 1980, 523 complaints were made against the police compared with 635 in 1979.

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the

During the year, two of the three main ordinances enforced by the commission Prevention of Bribery Ordinance and the ICAC Ordinance were amended to tighten- up certain provisions in view of difficulties experienced during some investigations and prosecutions. The amendments gave the commission wider investigative powers and in- creased the financial penalties for offences.

Corruption Prevention

The Corruption Prevention Department is responsible for giving advice on how to reduce corruption opportunities arising out of the practices and procedures of government depart- ments and public bodies, and of any private organisations which may ask for assistance.

During the year, 66 studies were completed and the reports were forwarded to the heads of government departments and other organisations for consideration. At the end of the year, 25 studies were under preparation and 174 areas of activity were awaiting study.

By the end of 1980, the department had completed 420 studies since its establishment in 1974. Consequently, its task of checking whether recommendations have proved effective has greatly increased. In many areas there have been so many fundamental changes since the original studies were made that complete re-examination has become necessary.

The External Training Team, set up in 1978, continued primarily to convey the principles of supervisory accountability as a corruption prevention measure. The original target audience was junior management, but seminars are now being run for people at all levels of management; in some departments it has been found desirable to speak also to front-line supervisors. The scope of instruction has been extended to cover advice to the individual on what to do if a bribe is offered, and the procedures to follow within a department when a report is made about such an offer. The need for instruction at much more junior levels has resulted in the development of programmes to 'train the trainers' within government departments so that the corruption prevention message can be spread as widely as possible. During the year, 317 seminars were run for officers at various levels up to the directorate in 15 government departments.

The ultimate responsibility for ensuring that employees are not exposed to the temptation to offer or solicit bribes rests with the heads of departments and organisations. Over the years, the Corruption Prevention Department has established a close working relationship with most departments in the government.

When corruption prevention advice is sought in the planning stage of new ventures, special procedures and methods of organisation can be devised to reduce the opportunities for corruption.

Community Relations

The Community Relations Department is responsible for fostering and enlisting public support in the anti-corruption fight in Hong Kong. This is achieved mainly through disseminating information via the mass media and by direct personal contact with members of the public individually, and in groups.

      On the information front, the department engaged an international advertising agency in 1980 to design a multi-media publicity package to emphasise the harmful repercussions of corruption. The package included three 30-second announcements for screening on television, as well as printed publicity material. At the end of the year, a new seven-part, 60-minute TV drama series was in full production and this should be screened in mid-1981. The department also continued its production of a series of five-minute informative films for local television audiences.

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       The department established the commission's ninth local office in Yau Ma Tei in March. These offices, all situated in densely populated areas are open from 9 a.m. to 9 p.m., Monday to Saturday. They serve as centres for receiving corruption complaints and bases from which liaison officers can move out into the community to establish and maintain contact with the public.

During the year, liaison staff kept in touch with different sectors of the community through 9,901 liaison meetings. In mid-1980, the department devoted special efforts to explaining to people in the commercial and industrial sectors some amendments made in the ordinance relating to corruption in the private sector. Special target groups - including students and people engaged in occupations which are likely to be confronted with corrup- tion practices - continued to receive the department's attention.

       Work with education institutes and the teaching profession was also stepped-up in 1980. A major project, entitled Know Your Government, was organised for secondary school students in Hong Kong. A seminar on the theme was also conducted for secondary school teachers.

       A small unit in the commission continued to monitor public response to, and perception of, the commission's work. Its findings were mainly used as a basis for planning public education and information 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 heavily engaged in the scientific investigation of crime and has a number of specialist units. The largest unit in the division is concerned with general forensic science where the laboratory examination of exhibits from many crime scenes is coupled with visits by scientists to the scenes. This unit also contains a forensic blood-grouping laboratory (which commenced operation in 1978 and has had considerable success), a questioned document laboratory, and an arson investigation group.

        Other units of the division are involved in the examination of narcotics, scheduled poisons, and organs and body fluids in cases where the cause of death is unknown.

A scanning electron microscope with an energy dispersive X-ray attachment, which was acquired during the year, will have numerous applications in the scientific fight against crime.

Prisons Department

In February, 1980, the prison service hosted the first Asian and Pacific Conference of Correctional Administrators. Organised by the Prisons Department in conjunction with the Australian Institute of Criminology, the conference was attended by administrators of prisons and other correctional institutions from Australia, Canada, Indonesia, Japan, Macau, Malaysia, Papua-New Guinea, the Philippines, Sri Lanka, Thailand, Tonga, Western Samoa and Hong Kong. Common problems encountered by correctional admin- istrators in the region were considered and discussed.

With the opening of a centre at Tai Tam Gap for young female offenders in May, 1980, the Prisons Department became responsible for administering two centres for women. The opening of a separate institution for young offenders permitted the implementation of a new rehabilitation programme.

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During the year, prison officers continued to assist in caring for many of the Vietnamese refugees who arrived in Hong Kong and 85 prison officers were seconded to administer the Canton Road Reception Centre, the Ma Tau Wei Camp and Argyle Street Camp. The Prisons Department also provided detention facilities for up to 4,848 illegal immigrants, including those who claimed to be Vietnamese refugees, pending a full investigation of their circumstances.

Work resumed on the construction of a maximum security prison at Shek Pik on Lantau Island and plans to extend the Staff Training Institute were well advanced.

On December 31, 1980, the Commissioner of Prisons was responsible for the overall administration of 18 penal institutions, a half-way house, a staff training institute, and several detention centres for illegal immigrants. The department had an establishment of 4,304 uniformed staff and 440 non-uniformed staff. Excluding illegal immigrants the average daily penal population was 6,499 in 1980, compared with 6,108 in 1979.

Adult Prisons

The department operates eight prisons and a psychiatric centre. The full certified accom- modation of these institutions is 4,999.

      The adult prisoner population increased during the year, so that the average daily population (excluding illegal immigrants) was 4,218 compared with 3,895 in 1979. Except for occasional overcrowding at the two maximum security prisons, however, the accom- modation situation was satisfactory.

Stanley Prison is a maximum security institution with a capacity for 1,605 prisoners who are now accommodated one to a cell. Tenders for building the superstructure of a new maximum security prison at Shek Pik on Lantau Island were invited during the year. This new prison will relieve pressure on Stanley Prison by helping to cater for the ever-increasing number of life, and long-term, prisoners.

The Lai Chi Kok Reception Centre provides maximum security, high-rise accommodation for 960 inmates. It houses all adult males on remand, detainees under the Immigration Ordinance, debtors and newly-convicted prisoners awaiting classification and allocation to other prisons. The majority of appellants are detained at Lai Chi Kok - except those appealing against sentence of death and those sentenced to 15 years or over, who are held in Stanley Prison.

There are two medium security prisons: Victoria (accommodation 428) in Central District and Ma Po Ping (accommodation 570) on Lantau Island. Victoria, which was used during 1979 to house illegal immigrants reverted to its original role as a prison in February, 1980. Toward the end of the year, however, part of it was again used to house illegal immigrants. Ma Po Ping Prison was originally for recidivist prisoners with previous institutional experience but now also houses first offenders.

      Minimum security prisons are located at Ma Hang (accommodation 155), Pik Uk (accommodation 400), and Tong Fuk (accommodation 225). A fourth, at Chi Ma Wan, was converted to house Vietnamese refugees during 1979. During 1980, it was used mainly to house illegal immigrants.

At Pik Uk, which is for prisoners serving short sentences with previous institutional experience, work is progressing on a new industrial complex - including a laundry and this will be completed in 1981.

      Prisoners at Ma Hang and Tong Fuk prisons are mainly employed on outside work. Ma Hang and Ma Po Ping prisons have geriatric units for prisoners who are considered to be too old to participate in ordinary activities.

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139

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 of other institutions requiring psychiatric treatment, or those for whom the courts require assessment, are also sent there but are detained separately. The centre continues to be overcrowded, having an average muster of 143, and work is proceeding on a planned extension.

Young Male Offenders

      Three correctional programmes training centre, detention centre and prison - operate for young offenders. There are five main centres which have a total certified accommodation of 1,119 for young inmates; during 1980, the average daily population was 929. In addition, drug addiction treatment is provided for young offenders at Tai Lam Drug Addiction Treatment Centre.

Lai King Training Centre (accommodation 260) houses young convicts remanded for reports on their suitability for sentence to a training centre; young people remanded from the courts for trial on minor offences; and training centre inmates aged 14 to 17 years.

      Cape Collinson Training Centre, which was converted to a refugee camp during 1979, reverted during the year to being a centre for young offenders and was renamed Cape Collinson Correctional Institution. With accommodation for 142, it houses training centre inmates aged 18 to 21 years and prisoners under 21 years of age who have been sentenced to less than three years.

The Pik Uk Correctional Institution (accommodation 385) is a maximum security in- stitution with separate facilities for a training centre and a prison. Also accommodated are young people, including adults under 25 years, convicted by the courts but remanded for reports on their suitability for sentence to a detention centre.

       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. Nei Kwu Chau Detention Centre (accommodation 112) on the island of Hei Ling Chau, caters for the 14 to 16 year-olds. 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. Deten- tion ranges from one month to six months for those under 21 years, and three months to 12 months for those 21 to 24 - followed by 12 months' compulsory after-care in each case. Discharge within these limits is at the discretion of the Commissioner of Prisons and occurs when it is considered that the inmate has achieved the maximum benefit.

After-care supervision is a vital aspect of both the training and detention centre pro- grammes. The officer on after-care duties builds up a working relationship with an inmate and his family during the inmate's time in the centre, and then visits him regularly after release. On these visits, the officer acts as a guide and counsellor, while checking that his charge is complying with the conditions of his supervision order.

       The success rate for 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 deten- tion centre, without subsequent reconviction - is 53.93 per cent for the training centres and 94.97 per cent for the detention centres.

Since the inception of the detention centre programme for young adults in 1977, 237 detainees have been admitted for corrective training. Of these, 155 have completed their training and been released under supervision and 83 have successfully completed their period of supervision.

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PUBLIC ORDER

      Legislation was enacted in May, 1980, to provide for the supervision of certain young offenders on their release from prison. This requires a supervision order to be made against a person who, before he is 21 years old, is sentenced to a term of imprisonment of three months or more and is released from prison before he is 25 years old. Supervision com- mences on the date of release from prison and continues for a period not exceeding 12 months.

Drug Addiction Treatment

The Prisons Department provides the only compulsory drug addiction treatment and rehabilitation programme in Hong Kong. The programme provides the courts with an alternative to prison for minor offenders who are drug dependents. The programme has achieved a success rate of 66.43 per cent since it came into law in 1969. Success is defined as the satisfactory completion of a one-year drug-free period of supervision after release, without a further conviction.

      There are three drug addiction treatment centres: Tai Lam Drug Addiction Treatment Centre (accommodation 508), which incorporates the young inmate centre; Hei Ling Chau Drug Addiction Treatment Centre (accommodation 1,008); and the drug addiction treat- ment section at Tai Lam Centre for Women.

      An inmate of a drug addiction treatment centre is required to stay for a period of from four to 12 months, and is subject to one year's compulsory supervision following release. During the supervision period he can be recalled for further treatment if this is found to be necessary. The treatment programme is based on discipline, physical activity and the com- plete absence of drugs. Counselling plays an important part in the programme and helps inmates to develop self-confidence. Relatives are encouraged to visit as often as possible to cement good family relationships.

Medical, psychological and welfare services are provided, and job placement is arranged for those who have difficulty finding employment to go to on their release.

Tai Lam Drug Addiction Treatment Centre provides accommodation for convicted people who have been remanded for reports on their suitability for sentence to a drug addiction treatment centre, as well as those sentenced to this form of treatment. Inmates in the centre are very much involved in community projects and, during the year, continued with the clearance of 20 kilometres of undergrowth and the construction of a 17.5-kilometre barbed-wire fence on the border as part of the barrier erected to keep out illegal immigrants. Many inmates of the Hei Ling Chau Drug Addiction Treatment Centre have long criminal records although their offences may be relatively minor. The open-air physical work under- taken includes running a farm and expanding the centre.

Female Offenders

On its opening in May, 1980, the Tai Tam Gap Correctional Institution for young female offenders became the second women's centre to be administered by the Prisons Depart- ment. The institution, which was formerly used for young male offenders, is divided into two sections: a training centre and a prison for young women under the age of 21. It has accommodation for 160 inmates. The original women's centre, the Tai Lam Centre for Women (accommodation 287) continues to operate as a prison for adult women and as a drug addiction treatment centre. A security wing in the centre now accommodates all of the high-security prisoners who were previously housed in a separate section at the nearby Siu Lam Psychiatric Centre. The programmes in the training and drug addiction treatment sections of the women's institutions are similar to those in the institutions for men.

A

TOURISM

鳳山中留静

NAMAN

X

1

Alluring Destination

Each year more than two million visitors flock to Hong Kong, making tourism a major industry which is set to expand even further with the advent of growing com- petition among the airlines serving the territory. Sharp peaks in the arrival figures are recorded in the spring (March to May) and autumn (September to November) when the weather is at its most favourable for visitors. Even at other times travellers come and go in sufficient numbers to keep the tourist industry at a vibrant level all year round. Hong Kong offers one of the world's most exciting destinations and its geographical compactness makes it easy for the visitor to enjoy an itinerary that can be breathtaking for its endless variety. There are festivals - religious and cultural; water tours and visits to the outlying islands and countryside; almost round- the-clock shopping; every style of cuisine imaginable; and a glittering nightlife. Hong Kong hoteliers have registered their firm faith in the territory's continuing allure by injecting vast sums into building programmes that will generate no fewer than seven new hotels in 1981. Visitors. too, are spending considerably more, with the result that tourist revenue since 1975 has doubled. Yet the industry does not permit itself the luxury of becoming com- placent and the success of its many en- deavours to promote tourism is reflected in a particularly satisfying discovery: half of all Hong Kong tourists have visited the territory before.

1

I

Previous page: Surging forward to an in- sistent drum-beat, participants in the 1980 International Dragon Boat Races exemplify the colour and excitement of one of Hong Kong's fastest-growing annual attractions. Left: Visitors to the Sung Dynasty Village at Lai Chi Kok can watch the traditional art of fan-making; have a Chinese-style painting made to order; or opt for the refined silken daywear of Sung nobility.

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Fragrant joss-sticks scent the air as two costumed workers pass the time of day at the Sung Dynasty Village while waiting to transport another group of visitors, back in time, to an incense shop in China around a thousand years ago,

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Feeding the sealions is one of many unforgettable attractions that earns top tourist marks for Hong Kong's fascinating Ocean Park - the largest oceanarium in the world.

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Maintaining Hong Kong's reputation for international cuisine keeps restauranteurs in constant search of yet another gastronomic coup. A particularly lavish event during the year involved visiting chefs from one of China's most famous hotels, seen here preparing platters of mouth- watering morsels for a series of banquets at a leading hotel.

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   Trainee tourist guides gain useful background information about the Wong Tai Sin New Temple, in Kowloon, during a field excursion from the Haking Wong Technical Institute. Built on traditional lines, and dedicated to the Taoist deity, Wong Tai Sin, the temple only appears to be of considerable age. It was opened in 1973.

Top: Running a fullscale restaurant under the direction of specialist instructors gives technical institute students a solid grounding for their future careers. Above: With over 5,000 new hotel rooms due for completion in the next two and a half years, students from this one-year hotel reception and housekeeping course will be much in demand.

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Stanley Market, in the heart of a picturesque fishing village, holds many rewards for shoppers with time to venture off the beaten track and browse.

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PUBLIC ORDER

Prison Industries

141

Prison industries train inmates in the habit of doing useful work under comparable condi- tions to those of outside industry and to better utilise inmate labour in providing goods and services. To further these objectives, a Works Unit was established during the year to under- take suitable clearance and construction projects and it is envisaged that this unit will greatly enlarge the scope of the work presently done by inmate labour. The productive work of prison industries includes the manufacture of garments, shoes and fibreglass products; silk-screening, carpentry, laundering, printing and light engineering. The value of prison products in 1980 was estimated as $25 million, compared with $21 million in 1979. Progress was made during the year on providing additional industries and on improving the quality of products. Work commenced on a new workshop for manufacturing pre-cast concrete products a new trade in prison industries.

Visiting Justices

Visiting Justices are appointed by the Governor and each penal establishment is visited by two Justices of the Peace (one official, one unofficial) fortnightly or monthly, depending on the type of institution. These visits are undertaken at times and on days of the justices' own choosing, within a prescribed period, and take place without prior notice. Visiting justices are required to carry out certain statutory duties such as the investigation of com- plaints made to them by prisoners, the inspection of diets, and the examination of accom- modation. They are required to make reports in writing to the Governor of any abuses they observe or discover. They are also required to assist the Commissioner of Prisons with advice and suggestions on the employment of prisoners, with particular reference to their employment opportunities on discharge. All comments, suggestions and recommendations are carefully evaluated and considered for appropriate action. A total of 361 visits were made by justices to the various institutions during the year.

Medical Care

All penal institutions are equipped with hospitals or sick bays where inoculations and chest X-rays are provided and regular urinalysis is carried out to detect the presence of narcotics. Medical treatment is also given for tuberculosis and minor ailments. Emergency cases and those requiring intensive care are transferred to government hospitals, while the less urgent cases are referred to visiting consultants or to government specialist clinics. 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.

      Two psychiatrists from Castle Peak Hospital visit Siu Lam Psychiatric Centre each day to provide treatment; to prepare psychiatric reports for the courts; and to examine prisoners referred from other institutions for assessment.

Staff Training

The Staff Training Institute conducts one-year training courses for recruit officers and assistant officers. Both courses are divided into three stages interspersed with two periods of field training. The syllabus includes operational knowledge on such subjects as super- vision, escort duties, report-writing, self-defence and disturbance control. Refresher and specialised continuation courses are also organised for staff of all ranks to supplement in-service training.

142

Discharged Prisoners' Aid Society

PUBLIC ORDER

The Discharged Prisoners' Aid Society is a voluntary agency, established in 1957, for the care and rehabilitation of discharged prisoners. The society provides a wide range of services, both before and after release, and operates a Volunteers' Scheme to assist prisoners' families to solve domestic problems such as baby-sitting, homework coaching, visits and escort services. During 1980, the society arranged a number of recreational activities in institutions including variety shows, sports fixtures and film shows. These were well received and assisted in building a good relationship between prisoners and the society.

Fire Services

The Fire Services Department responded to and dealt with 240,585 emergencies in 1980, of which 13,213 were fire calls, 6,315 special service calls and 221,057 ambulance calls. Fires caused 37 deaths, including that of a fire officer, and left a further 699 other people injured. Of the injured, 120 were firemen. A total of 947 people were rescued and hundreds of others were led to safety by firemen.

      False alarm calls numbered 4,106, of which the great majority were raised with good intent either by the public or by ultra-sensitive automatic alarm systems.

Buildings and Quarters

     Under the department's development programme to provide an emergency response to all areas within minimum set times and according to the category of risk, two new fire stations and one regional headquarters building were commissioned during the year. These were the Sha Tin Divisional Fire Station, the City Fire Station on Hong Kong Island and the New Territories Fire Command Headquarters. The total number of fire and ambulance depots is now 54. Others 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 1,940 departmental quarters were occupied or available for occupation. Construction work on 480 additional married quarters for firemen and ambulancemen will start as soon as funds are made available.

Communications System

The Centralised Communication Centre, which has been in operation since 1979, has proved successful in reducing the response times of emergency vehicles. Through efficient mobilising of resources, fire appliances are able - in most cases to reach locations in the urban area within the target time of six minutes of being called; most ambulances arrive within 10 minutes.

Improvements were made to the radio system during 1980 by the provision of new sets which operate on a higher VHF frequency than the old obsolete ones. New repeater stations were also installed to give the main stations a better coverage.

Fire Prevention

The department is responsible for enforcing fire safety regulations. It also advises and assists all sections of the community in the abatement and elimination of fire hazards.

      Publicity campaigns increased the community's awareness of fire safety during the year and as a result there were requests for more fire prevention lectures, exhibitions and demon- strations frequently conducted in association with kaifongs, rural committees and other community groups. The task of educating the public on fire dangers and methods of prevention is an important part of the department's work.

PUBLIC ORDER

143

The increasing number of complaints (9,143) received from members of the public was seen as an indication of the level of public concern over potential fire hazards and a grow- ing realisation of the services provided by the department.

Fire Services personnel made 322,265 inspections of all types of premises and, where fire hazards were found, abatement notices were issued. In 1980, there were 4,448 prosecu- tions for non-compliance with abatement notices resulting in fines amounting to $1,745,304. Major increases in the present maximum fines have been proposed.

       All new building plans are vetted by the department, which specifies the requirements for built-in fire protection and advises on means of escape and other matters. More than 9,935 new plans were processed during the year.

       Research into matters associated with fire safety is continuously being carried out by the department. Fact-finding surveys of a non-technical nature are important to this research and university students are regularly employed to assist with this during their summer vacation. Over 9,026 unregistered factories operating in non-industrial premises were located in the most recent survey by students and action to tackle the identified problems was in progress during the year.

Ambulance Service

The Fire Services Department operates the government ambulance service with an author- ised strength of 1,169 in all ranks of uniformed staff, and 95 civilian employees. The service operates 135 ambulances from 12 ambulance depots throughout the territory and from many fire stations. During the year a total of 221,163 calls, involving 287,208 people, were handled - representing an average of 604 calls every 24 hours. This was an increase of 11 per cent in the number of calls compared with the total for 1979.

       Facilities aboard the ambulances and new methods of treating patients are constantly under review. In addition to basic life-saving equipment, all ambulances are equipped with analgesic apparatus, piped oxygen, inflatable splints, spinal boards and special stretchers. Refresher training of personnel is a continuous process.

Appliances and Workshops

The Fire Services Department is equipped with more than 500 modern operational fire appliances, ambulances and vehicles fitted with up-to-date fire-fighting and rescue equipment.

       In 1980, 120 new or replacement appliances and units of various kinds were brought into service. Among the major appliances commissioned were two 16-metre hydraulic platforms, one 37-metre turntable ladder, an emergency feeding unit and 47 ambulances. An additional major fire boat intended to service Kwai Chung was under construction. When completed, the new boat will bring the total number of major fire boats to five and the overall total to seven.

       To maintain the fleet of appliances and other equipment, the department operates three workshops located on Hong Kong Island, Kowloon and the New Territories.

Training

      Recruits are trained at the Fire Services Training School at Pat Heung in the New Terri- tories. The courses vary in content and last from eight to 26 weeks. During the year, 482 men successfully completed training; 33 were fire officers, 278 were firemen, and 271 were senior ambulancemen or ambulancemen. At the end of the year, 200 recruits of all ranks were still undergoing training at the school.

144

PUBLIC ORDER

      The school also conducts basic fire-fighting and fire protection training for staff of other government departments and private organisations in Hong Kong. Some 1,410 people attended these courses during the year.

Establishment and Recruitment

The uniformed establishment of the Fire Services Department at the end of 1980 totalled 5,197. In addition, the number of civilian staff employed by the department increased by 73 to 499.

      The services of 15 officers and 111 men were lost through death, retirement, resignation or dismissals during 1980. A number of recruitment exercises were held resulting in the appointment of 21 officers and 374 firemen and ambulancemen. Standards are high and only about 10 per cent of all applicants are accepted for appointment.

11

Immigration and Tourism

事入 旅務境 遊和

IN 1980 the problems created by the massive inflow of illegal immigrants from China overshadowed all other immigration issues and showed no sign of easing. Therefore, as the year drew to a close - and to counter what was becoming a grave threat to Hong Kong's way of life - the government made a major change in its policy. From October 23, no illegal immigrant from China was to be allowed to remain in Hong Kong. Those already here were given three days in which to register for an identity card and new legisla- tion was enacted to deter others from coming.

Prior to this, the last change in the policy had been in 1974, when the practice of allowing all immigrants from China to remain was ended; from then on, those arrested on arrival were repatriated. However, all others who evaded capture and subsequently 'reached base', that is, gained a home with relatives or otherwise found proper accommodation, were permitted to stay. Not only was there a reluctance to remove those who had established themselves here, there was also apprehension over the prospect that further pursuit might lead to the creation of an illegal community - one whose members would be compelled to live on the fringe of society and be drawn to crime as a means of survival. In the following three years, the implementation of this dual policy brought no major difficulties - about 6,000 illegal immigrants from China were reaching base every year and were being absorbed without strain. But 1978 saw a change. With the new, more liberal environment in China, the greater freedom of movement there and the increase in contacts with the rest of the world, those living in the communes were not only able to see the attractions of Hong Kong more clearly but also found it easier to reach the border. The rise in numbers entering the territory was dramatic:

Arrested on Arrival and

Year

1977

1978

1979

1980 (Jan-Oct)

Repatriated

1,800

8,200

89,900

80,500

Evaded Capture

and Remained

(Estimated)

Total

6,600

8,400

28,100

36,300

107,700

197,600

69,500

150,000

       The Royal Hong Kong Police Force and HM Forces in Hong Kong responded vig- orously to this challenge. Their personnel were redeployed; reinforcements were sent from the United Kingdom; the command and control systems were improved; a substantial fence was built along the land border and a wide range of new technical devices were brought into use. The capture figures demonstrate what was achieved: whereas in 1978,

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IMMIGRATION AND TOURISM

less than one in four illegal immigrants was arrested, by 1980, the proportion had risen to more than half. On the Chinese side too, the authorities - using exhortations, warnings, heavier punishments and their security forces - made determined efforts to stem the flood: for every two would-be immigrants who reached the Hong Kong border, about three others were apprehended in China by the Chinese forces.

      But, despite these measures, the immigrants continued to swarm into Hong Kong in tens of thousands, drawn by the lure of higher wages and the knowledge that, if they evaded capture, they were safe. It became increasingly clear to all in Hong Kong during 1980 that as long as there remained a marked disparity between the material standards of life in Hong Kong and those in the neighbouring areas of China, and as long as potential immigrants saw the prospect of being able to enjoy those higher standards unhindered, the pressure to immigrate would continue.

Throughout the 1970s, the government had planned the expansion of social services in line with the anticipated needs of the community; housing, hospitals, schools, welfare facilities and public transport were among the crucial areas covered. But these plans were based on an annual growth in the population of about two per cent. The effect of im- migration from China was to push this figure up to over five per cent by the end of the decade, with damaging effects on the government's programmes. In the employment field too, the addition of 200,000 largely unskilled workers to the labour market had adverse effects: real wages stayed lower than they otherwise would have and the development of more sophisticated and capital intensive production was retarded. In the event of reces- sion and unemployment, serious social strains could have occurred.

The situation was aggravated by the concurrent steady flow of some 55,000 legal arrivals a year from China, most of whom had been given permission by the Chinese authorities either to visit Hong Kong or to pass through in transit to other countries, but who re- mained in the territory permanently. As a separate but additional problem, 1979 also saw Hong Kong's scarce facilities further strained by a flood of refugees from Vietnam. Throughout the first six months of 1980 the rate of the illegal inflow from China was high, but in both August and September, 1980, the situation grew worse. In each of the two months, an estimated 23,000 illegal immigrants arrived in Hong Kong and nearly half evaded arrest and reached base. The government decided that it could delay further action no longer.

It was considered that, if the incentive of a legalised existence (with no fear of removal, the right to work and free access to all public services) could be eliminated, then Hong Kong would lose a great deal of its magnetism. Accordingly, after the Chinese authorities had been informed and their co-operation sought, the decision was taken. It was publicly announced on October 23 that, in future, all illegal immigrants from China who reached base and were subsequently detected would be treated in the same way as those caught on arrival: they would all be sent back to China. To avoid retrospective action, those already in Hong Kong were allowed three days in which to regularise their presence by applying for an official identity card.

      At the same time, it was recognised that this new deterrent, or removal of incentive, would be much less effective if additional steps were not taken to facilitate detection and make it difficult for an illegal immigrant to exist here. Since no illegal immigrant could, from that point of time, be issued with an identity card, legislation was enacted to require all adult residents of Hong Kong to carry their identity cards - or some other acceptable proof of identity at all times. In addition, a ban was imposed on the employment of illegal immigrants by making it obligatory for employers to inspect the identity cards of

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IMMIGRATION AND TOURISM

147

      all those either on their payroll or whom they wished to recruit. Furthermore, all services (other than those of an emergency nature) normally provided to the public by the govern- ment would be withheld if proof of identity could not be produced.

       These new measures came into operation by early November. The first results, to which the concurrent high level of activity by the Chinese security forces undoubtedly contributed, were encouraging. From a daily average of nearly 450 arrests in September, the figure fell to 25 in November. But it would be premature to conclude that the problem has been finally solved. On two previous occasions recently, what had appeared to be a halt to the inflow proved to be only temporary. It is likely that would-be immigrants in the communes are now waiting to see how resolute and tenacious the people and government of Hong Kong are prepared to be in the long-run. Considering the strength of the public's support for the new measures, however, the government is encouraged in its hope and resolve to continue to enforce them indefinitely.

Immigration

A total of 21.2 million people passed through immigration control points as they entered or left Hong Kong during 1980. This was 12 per cent more than in 1979. The bulk of the increase was recorded between Hong Kong and China and Hong Kong and Macau, but there was also a substantial increase in traffic at the Hong Kong International Airport.

The Immigration Department has a staff of 3,000, of whom 1,543 are members of the Immigration Service. The work of the department falls into two main streams - controlling people moving into and out of Hong Kong, and providing travel documents and registra- tion facilities for local residents.

Immigration Control

All immigration control points were extremely busy during the year, with the heaviest pressure on the control point at Lo Wu which dealt with over 6.9 million passengers between Hong Kong and China. This volume of work represented a 85.8 per cent increase in the last three years (up from 2.2 million in 1977). The rapid growth in traffic imposed great strains on the limited facilities provided at Lo Wu and plans are going ahead for a new immigration control point to be built as part of the modernisation of the railway system. There was a considerable expansion of ferry services to China during the year, and two 'through' trains continued to leave Hung Hom each day for Guangzhou (Canton). The inadequate facilities at the Hong Kong-Macau Ferry Terminal were improved towards the end of the year by the opening of a temporary terminal for use while a new permanent terminal complex, with modern facilities, is being built. In addition, the ex- pansion and improvement of immigration facilities at Hong Kong International Airport were virtually completed during the year, making the journey through immigration controls there quicker and more convenient.

At the end of 1979 there were over 50,000 Vietnamese refugees in Hong Kong. During 1980, a further 11,173 arrived mostly in the period from May to August. As a result of the efforts of the government and the United Nations High Commissioner for Refugees, 37,468 refugees were resettled overseas in the course of the year - leaving a balance of 24,065 refugees awaiting resettlement at year's end. Many countries have helped in the effort to find homes for the refugees. The United States of America, Canada and the United Kingdom have accepted the largest numbers but many other countries have also contributed. Some countries have made a point of accepting physically, mentally or socially handicapped refugees who have been difficult to place elsewhere.

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IMMIGRATION AND TOURISM

      The five refugee camps originally established by the government remained in operation during the year. These are administered under the auspices of the United Nations High Commissioner for Refugees and managed by the Red Cross, Caritas-Hong Kong, the International Rescue Committee, the Hong Kong Christian Service and the Young Men's Christian Association. Special efforts were made by these and other voluntary agencies to organise educational and recreational activities for the refugees and to prepare them for their eventual resettlement.

The office of the United Nations High Commissioner for Refugees has continued to play a key role in arranging for the resettlement of the refugees and in providing funds for their maintenance in Hong Kong.

About 39 per cent of arrivals were refugees who left Vietnam in 1978 and 1979 and settled in China but who subsequently came illegally to Hong Kong. There was good co-operation with the Chinese authorities in arranging their return to the places where they had been settled. During the year, 6,428 of these immigrants were repatriated to China and at the end of the year 2,388 others were awaiting repatriation.

Although 1980 saw a reduction in the number of Vietnamese refugees in Hong Kong, much more remains to be done before a solution to the boat refugee problem is found. The morale of the refugees in Hong Kong is generally good, but it is vital that the rate of resettlement be maintained so that they do not lose heart.

Cases of travellers attempting to use forged or falsified travel documents continued to increase 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 carried out a number of investigations leading to the arrest of members of the syndicates organising these rackets. Every effort is being made to detect and prevent the use of bogus documents and visas, and close co-operation is maintained with the Royal Hong Kong Police Force and the immigration authorities of other countries.

Personal Documentation

Following the enactment of legislation requiring all adult residents of Hong Kong to carry acceptable proof of identity at all times, and banning the employment of those without identity cards, there was a substantial increase in the demand for replacement of lost or damaged identity cards. Some 73,699 requests for replacement identity cards were received during the last two months of 1980, compared with 206,235 for the entire year. Steps were taken to expedite the issue of replacement cards.

The demand for travel documents remained very high during the year, and over a million separate documents were issued. Re-entry permits for travel to China and Macau were the most sought-after documents but there was also a substantial increase in the demand for passports for travel overseas. As new immigration branch offices had been opened and some existing offices expanded, the Immigration Department was able to cope with this demand without the long queues of applicants which had been seen in 1979.

As a result of the increased immigration from China, the temporary Registration of Persons Office at Victoria Barracks near Central District was crowded (up to the end of October) with new arrivals from China seeking to stay in Hong Kong. This situation dramatically illustrated the immigration pressures to which Hong Kong is now being subjected and highlighted the need to maintain and strengthen immigration controls.

IMMIGRATION AND TOURISM

Tourism

149

Hong Kong received 2,301,473 visitors during the year (an increase of four per cent over 1979), and they spent an estimated $6,060 million on goods and services while in the territory. This was a value increase of 2.3 per cent over the previous year.

      Of the major sources of visitors during 1980, the first five by volume were Southeast Asia (28 per cent), Japan (20.5 per cent), the Americas (19.1 per cent), Western Europe (14.9 per cent) and Australia and New Zealand (8.4 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 ensuring 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 contribute also, through membership dues and through a variety of co-operative activities.

The HKTA has its headquarters in the Connaught Centre, on the waterfront of Hong Kong Island. Information offices for visitors are maintained at three other locations: Hong Kong International Airport; the Star Ferry concourse in Kowloon and the Govern- ment Publications Centre near the Hong Kong terminal of the Star Ferry. These offices play an important role in ensuring that visitors obtain up-to-date information about Hong Kong, and achieve maximum satisfaction during their stay. Analysis of the information requested and a continuous visitor survey programme provide valuable insights into visitors' needs and interests.

       The HKTA has its own representative offices in London, Paris, Rome, Frankfurt, New York, Chicago, San Francisco, Sydney, Auckland, Tokyo, Osaka and Singapore; the addresses of which are given in Appendix 2. Additionally, in Southeast Asia, Japan, Western Australia, the United States, Bahrain and Dubai, the association is represented by Cathay Pacific Airways.

The HKTA aims to maximise tourism revenue by attracting more visitors from poten- tially high-yield market segments, 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 members 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 to meet the anticipated future demand. During 1980, the average occupancy rate of Hong Kong hotels was 87 per cent, and based on future visitor arrival projections there is a need for a substantial increase in hotel rooms. Fortunately, investors continue to show a keen interest in hotel development. At the end of the year, the total number of hotel rooms was 15,041. During 1981, it is projected that seven new hotels will be opened, providing 2,300 extra hotel rooms. By the end of 1983, nearly 20,000 hotel rooms should be available. To maintain occupancy rates and to develop business in the off-peak months, the association pursues a highly selective marketing policy and an active product development programme. Tourism to China continues to grow, bringing with it a bonus for Hong Kong in the form of an increasing number of visitors who stay here either on their way to or from China. Visitors arriving in Hong Kong from China in 1980 accounted for 10.5 per cent of the total number of arrivals. Close liaison with the Chinese tourism authorities is continuing.

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IMMIGRATION AND TOURISM

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 department's efforts have been concentrated on encouraging investment and development in hotels, holiday resorts, restaurants and other visitor facilities, and on the promotion and organisation of festivals, special interest tours, cultural and other events suitable for visitors.

In 1980, plans were made to upgrade the general standard of tourist guiding in Hong Kong, providing, on the one hand, for an assessment and evaluation of the training needs of this segment of the travel industry followed by the formulation of a training programme to meet those needs and, on the other, for revision of entrance requirements

     for affiliated tour guides. A workshop on communication skills was organised to improve the working knowledge of HKTA staff and tour guides, and seminars were scheduled to keep guides fully abreast of the latest developments in Hong Kong. Four commentaries on Hong Kong Island, Kowloon and the New Territories were revised and updated, and translated into Japanese for the first time. A new commentary of the Eastern Hong Kong Island Tour was prepared.

The Third International Dragon Boat Races, held off the East Tsim Sha Tsui waterfront, attracted six overseas and 68 local teams. The event was broadcast 'live' by satellite to Japan and was covered by television teams from Hawaii, Singapore and Japan. The sum of $400,000 was raised for the Community Chest.

      During 1980, other product development activities included the annual lantern carnivals in Victoria and Morse parks, and the establishment of a permanent location for the weekly Chinese cultural shows which are presented free of charge in the Ocean Terminal-Ocean Centre lobby.

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 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 1980 there were 169 international conferences with an overseas attendance of more than 31,500.

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 while bearing in mind the need to ensure good occupancy rates for the new hotels through the promotion of additional high-yield group business.

Qualitative research projects were conducted in the United Kingdom, Australia and Japan (along the lines of similar projects conducted in 1979 in West Germany and the USA) to explore ways of attracting more high-yield visitors to Hong Kong. Other projects

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included a shopping survey which examined the attitudes of visitors to shopping. A survey carried out by the Hong Kong Productivity Centre established the high value- added content of tourism in relation to two major manufacturing industries.

       Efforts by the HKTA to portray a more accurate image of Hong Kong as a tourist destination continue to pay off. The economic recession in Japan has brought about a drop in the number of Japanese visitors, although this appears to be a temporary phe- nomenon. While visitors from Southeast Asia showed an overall decline for the year, the main influence was thought to be the imposition of travel restrictions in Taiwan. Growth from other Southeast Asian countries remained healthy, as did the Australian and New Zealand, North American and Western European markets.

       Public Relations activities were stepped up in North America with the aim of creating improved awareness of Hong Kong as an attractive, easily reachable holiday destination among potential travellers.

       The introduction of lower air fares between Australia and Hong Kong, as a result of changes in Australia's International Civil Aviation Policy, has resulted in a substantial growth in visitors from Australia. In terms of per capita expenditure, the Australians were the highest spenders in the first six months of 1980.

       The decision to allow Cathay Pacific Airways and British Caledonian Airways to operate alongside British Airways on the route between Hong Kong and London, and the con- sequent reduction in air fares and more direct routing with fewer stops, brought about an unprecedented increase in the number of visitors from the United Kingdom from July onwards.

       During the year, major promotional campaigns were mounted in the United States, South America, Japan, the United Kingdom, West Germany, Italy, France, the Philippines, Singapore, Thailand, Australia and New Zealand to increase interest in Hong Kong as an exciting tourist destination. These trade and consumer promotions effectively communi- cated the vibrancy, colour and culture of Hong Kong through film shows, audio-visual presentations and live cultural performances by craftsmen, chefs and entertainers.

A total of 2,196 people from the travel industry visited Hong Kong in 1980 from all parts of the world. They were briefed and familiarised with attractions and facilities by the HKTA.

        Print was the main medium used in an extensive consumer and travel trade advertising campaign mounted worldwide. A new 16-minute colour film depicting the way of life of the people of Hong Kong was produced, along with six short films on the major Chinese festivals celebrated in Hong Kong. Nearly 7.5 million printed items were produced in 1980 for distribution in Hong Kong and overseas, some of them translated into up to 11 languages. They included a wide range of information leaflets, guide books, 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 conducted throughout the year.

       Public relations and publicity programmes were created in support of several significant events during 1980, including the International Dragon Boat Races, the Hong Kong Arts Festival, the Hong Kong International Film Festival, the Mid-Autumn 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 locations. A total of 1,040 media visitors were the guests of the HKTA during the year.

12

Public Works and Utilities

申程 雪花

AI

THE government's largest single category of expenditure is normally that of public works. This covers the formation and reclamation of land, port and airport works, roads, sewers, bridges and tunnels, the supply and distribution of water, and the construction of public buildings.

For the financial year 1980-1, approved provision of funds for capital works was $3,359 million, some 18 per cent of the government's total expenditure. Of this sum, $563 million was to be spent on roads, $314 million on water supplies and $64 million on public housing constructed by the Public Works Department (PWD) in addition to that built by the Housing Authority.

Geotechnical Control

During the year, the Geotechnical Control Office of the PWD was expanded by the forma- tion of a Design Section and an Engineering Geology Section, which completed major geotechnical studies on four areas.

Detailed investigation of the stability of slopes throughout the territory continued and checks were made on the design of new slopes associated with the construction of all major government engineering and building projects. Preventive works on 12 fill slopes in the urban area were satisfactorily completed and contracts were let at the start of the 1980-1 dry season for works on a further 16 fill slopes.

Some 104,000 tests were made on various construction materials by the PWD materials testing laboratory and 40,000 metres of borehole was drilled in the seven site investigations that were being carried out during the year.

Quarrying

The quarrying industry's total production of aggregates for the year amounted to 13,476,500 tonnes, including both fine and coarse aggregates. In addition to the two government- operated quarries, eight contract quarries and one rock-crushing facility were in operation. The government-operated quarries supplied 444,380 tonnes of aggregates and 149,660 tonnes of bituminous products for use in government projects during the year. One of the new contract quarries, established in 1978, completed the installation of its main crushing plant and the opening ceremony was performed by the Director of Public Works in April, 1980. The demand for aggregates has continued to increase and further investigations will be carried out to identify potential sites for future quarries.

During the year, 1,039,000 cubic metres of fine marine dredged sand was imported for use by the building industry and a smaller quantity of river sand was also imported from China.

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Buildings

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The three-year building boom continued into 1980 but with a significant reduction in in- flationary pressures on the industry. The acceleration in building costs experienced in recent years had begun to show signs of easing in the third quarter of 1979, and this trend continued throughout 1980. During the 12 months from July, 1979, to June, 1980, wage rates increased by 31 per cent compared with 21 per cent for the previous corresponding period. Materials increased by 12 per cent (compared with 57 per cent), and the consolidated index covering both labour and materials rose by only 13 per cent (compared with 38 per cent). An analysis of tenders did not show such a marked difference, however, and the increase in tender prices was 23 per cent for the same corresponding periods.

One of the most notable projects completed in 1980 was the Hong Kong Space Museum. This forms part of a proposed Cultural Centre situated on a prominent waterfront site at the tip of the Kowloon Peninsula. The dominant feature of the Space Museum, which was opened in October, 1980, is the egg-shaped structure housing the sky theatre where about 320 visitors can make imaginary trips into space. The post-tensioned structure is set within a shallow pool to give a floating effect, and has an adjoining two-storey rectangular block housing a lecture hall and solar sciences hall. Work was carefully programmed so that the sophisticated audio-visual equipment was installed largely within the construction period.

       Other building projects completed in Kowloon included a computerised International Mail Centre at Hung Hom and several projects at Hong Kong International Airport, including a passenger pier and apron deck, two air bridges, the podium for the western half of the multi-storey carpark and a new restaurant and kitchen all of which were constructed and brought into use while maintaining the normal operation of the airport's facilities.

The Queen Elizabeth Stadium at Morrison Hill on Hong Kong Island, which was partly financed by the Royal Visit Commemorative Fund marking the visit of Her Majesty the Queen to Hong Kong in May, 1975, and by the sale of Royal Visit gold coins, was opened in August, 1980. The building can be adapted for a wide variety of indoor sporting and other events and has a mixture of fixed and retractable seats. Sportsmen preparing for events have the use of special warm-up and practice facilities, and visiting teams can be fully boarded in hostel accommodation within the complex.

       Other building projects completed on Hong Kong Island included an eight-pool swimming complex at Chai Wan; the first phase of a dental teaching hospital at Sai Ying Pun; a temporary fire station at Garden Road; senior staff quarters at Queen Mary Hospital; Stage I, Phase I of non-departmental quarters at Mount Butler; and a new residence for the Deputy Commander British Forces at Stanley Fort.

In the New Territories the Tsuen Wan Town Hall was opened in February by Her Royal Highness Princess Alexandra. Facilities there include an auditorium seating 1,500, an activities hall, an exhibition gallery and a landscaped garden. The multi-purpose audi- torium is modelled on the City Hall Concert Hall but has numerous improvements and provision is made throughout the complex for physically handicapped people.

Other works completed in the New Territories included a new mental hospital at South Kwai Chung; a clinic at Sha Tin; an indoor games hall at Kwai Chung; and an extension to Fanling Hospital.

Projects under construction at the end of 1980 included an air mail centre at Kai Tak; village housing at Ngau Chi Wan; swimming pools at Sha Tin and Yuen Long; a market at Tin Wan; two markets at Tuen Mun; a teaching hospital and staff quarters at Sha Tin;

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a maximum security prison and staff quarters at Shek Pik; the first standard 24-classroom secondary school on Lantau Island; the redevelopment of Osborn Barracks and Perowne Barracks as part of the reprovisioning of facilities given up by the military at Lei Yue Mun Fort and Sham Shui Po; quarters for military officers at Sek Kong Village; a Medical Department laundry at Pik Uk; an indoor stadium at Hung Hom; and fire stations at Sheung Wan and Wong Tai Sin.

At the end of the year, projects at the planning stage included a new Supreme Court and government offices in Queensway; cultural complexes at Tsim Sha Tsui, Sha Tin and Tuen Mun; a new district court in Wan Chai; housing redevelopment at Shek Kip Mei; a promenade at Tsim Sha Tsui; three plant nurseries in the New Territories; two swimming pool complexes at Tsuen Wan; government offices at Sai Kung; a crematorium and colum- barium at Sha Tin; a training school for the police at Aberdeen; and numerous other education, medical, recreational and amenity projects.

In view of the current problems associated with fossil fuels, two pilot schemes were initiated to evaluate the economics of solar energy for government projects. The first solar energy water heating system was installed in a public bath house at Stanley Village. The design is in accordance with a feasibility report prepared by a professor of the University of Hong Kong, and provides for the daily public usage of 33 showers. A similar installation for five showers was provided at a PWD depot in Sek Kong. Detailed monitoring of the performance of both projects will provide useful design data for further installations.

The construction and leasing of new premises for public use has continued to result in an expansion of maintenance activities. The 1980-1 projected expenditure on maintenance works represents an increase of 33 per cent over that spent in 1979-80. In addition to the normal maintenance activities, there was an increase in works in the border area to provide facilities for the security forces engaged in anti-illegal immigration operations.

Land Development

In Kowloon, reclamation by public dumping was completed for the second stage of reclamation at Sham Shui Po, where about three hectares was formed for use as open space. Reclamation by public dumping was also completed at To Kwa Wan, where about 4.8 hectares was formed for a sewage treatment plant, schools and use as open space.

On Hong Kong Island, reclamation by public dumping continued at Quarry Bay, where about two hectares was formed for eventual industrial use. Two other reclamations were commenced, providing one hectare at Sai Wan Ho for future roads and industrial use and four hectares at Siu Chai Wan for future industrial use.

      In the New Territories, reclamation was completed for the second stage of Tai Po Industrial Estate, which provides 30 hectares of land for industrial use.

The engineering feasibility study for urban development in the northern part of Lantau Island continued. The study area extended from the northeastern tip at Kap Shui Mun to the district of Tung Chung, half-way along the north coast. It also considered the effect on the new urban development of a possible replacement airport at Chek Lap Kok Island, to the north of Tung Chung.

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

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acceptable in the waters where it is discharged. Sewage from rural areas where sewage systems are not provided is sometimes disposed of through separate sewage treatment facili- ties such as septic tanks, Imhoff tanks and package sewage treatment plants.

A major stormwater culvert and intercepting sewer was completed during 1980 at Aldrich Bay Reclamation in Shau Kei Wan.

Construction of sewage treatment works at Yuen Long, Tuen Mun and Sha Tin and sewage pumping stations at Hung Hom and Tsuen Wan continued to progress, while work on detailed designs for additional sewage treatment facilities at Sha Tin and Tai Po, and for the first stage of treatment works for northwest Kowloon, also went ahead satis- factorily. The design for the sewage treatment works at Tai O an Lantau was completed. Work started on the construction of a trunk sewer in Kowloon Bay reclamation and a long, submarine sewer outfall off the airport runway at Kai Tak.

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 throughout the year. A data report summarising all monitoring results up to mid-1979 was completed, and a technical report was prepared on the significance of the results, pollution trends and recommended action.

       About 1,130,000 tonnes of solid waste was treated at the five controlled tipping sites at Sai Tso Wan, Ma Yau Tong, Siu Lang Shui, Shuen Wan and Junk Bay. The controlled tip at Gin Drinkers Bay was completed.

A refuse composting plant at Chai Wan became operational during 1980, and com- missioning trials of the refuse baling plant, at Sai Tso Wan, were completed.

Port Works

On Hong Kong Island, construction work was completed on 570 metres of seawall forming a breakwater arm for cargo-handling purposes in Western District. The construction of 900 metres of seawall foundation in Western District was also completed and a new contract was let for the seawall superstructure. New contracts were let for the construction of a 90 metre-long breakwater at Kellett Island and 510 metres of seawall in Aberdeen. Work on the construction of 675 metres of seawall continued at Quarry Bay, and construction of 185 metres of seawall with pump-houses was in progress at Tamar East Basin.

In Kowloon, construction of salt water pump-houses at Tsim Sha Tsui was completed and a contract was let for the construction of 400 metres of seawall in Cheung Sha Wan. In the New Territories, work was well advanced on the construction of a seawall and related reclamation works in the Rambler Channel Typhoon Shelter to extend the existing cargo-handling area. At Cheung Chau, construction work on the foundations for a breakwater was completed, and work commenced on forming the breakwater superstructure.

Water Supplies

Despite below average rainfall in 1980, a continuous water supply was maintained through- out the year. At the beginning of 1980 there were 403 million cubic metres of water in storage, compared with 361 million cubic metres at the start of 1979. Rainfall for the year was 1,710.6 millimetres compared with the average of 2,246.4 millimetres.

       On January 1, 1980, the combined storage in Hong Kong's largest reservoirs, High Island and Plover Cove, was 363 million cubic metres. The salinity of the water at High Island remained at about 26 milligrams per litre while at Plover Cove the salinity varied from 74 milligrams per litre at the beginning of the year to 86 milligrams per litre at the end.

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      The most significant event during 1980 was the signing, in May, of a supplementary water agreement with the provincial authorities of Guangdong (Kwangtung) Province. Under the terms of the previous agreement, 168 million cubic metres of water is currently supplied annually and this will be increased to 182 million cubic metres in 1982. The new agreement provides for subsequent annual incremental increases rising to a total supply of 620 million cubic metres in 1994, when it will represent about 60 per cent of the forecast demand. A total of 172 million cubic metres of water was piped from China in 1980.

      Water consumption showed a marked increase, and a new peak of 1.60 million cubic metres per day was reached, an increase of 5.3 per cent over the 1979 peak of 1.52 million cubic metres per day. The average daily consumption throughout the year was 1.39 million cubic metres, an increase of 8.6 per cent over the 1979 average of 1.28 million cubic metres. A total of 508 million cubic metres of potable water was consumed, compared with 467 million cubic metres in 1979. In addition, 77 million cubic metres of salt water for flushing was supplied, 1.3 per cent more than in 1979.

      The 'mothballing' of the 181,850 cubic metres-per-day sea water desalter was completed and the plant is now in a 'care and maintenance' state.

       During the year, investigation and design for the reception and distribution systems for future increases in the water supply from China progressed steadily and several contracts for the supply of essential plant and pipelines were let. Planning studies on the introduction of new treatment facilities at Sheung Shui and Tsuen Wan, as well as for new supply systems for Stonecutters Island and for development at Tai Tam Reservoir Road, were completed. Other studies in hand included those for the improvement of water supplies to Shek O, Chai Wan, Shau Kei Wan, Quarry Bay and Aberdeen; a new treatment works at Sai Kung; improvement of the trunk feed system to various service reservoirs in Kowloon East District; and for a new cross-harbour submarine main between the Kowloon peninsula and Hong Kong Island.

Construction progressed satisfactorily on the new supply systems for Sha Tin, Tuen Mun and Tsuen Wan new towns, together with those for Yuen Long, Tsing Yi, and the Tai Po Industrial Estate. On Hong Kong Island, works continued to improve the water supply to Pok Fu Lam, Chai Wan, Stanley and Repulse Bay. In the New Territories, works were in hand to improve the supplies to Sai Kung, Tai O, Cheung Chau and Cheung Sha. Construction work on a new tunnel and pipeline system, as a further development of the East River Scheme, was delayed because difficult ground conditions were encountered. On February 9, 1980, Her Royal Highness Princess Alexandra officiated at a ceremony to mark the start of pumping into supply from the High Island Reservoir.

      Implementation of the computerised water billing and information system progressed steadily. Domestic and other consumers were being converted to computerised billing with the first of the accounts being despatched on March 20, 1980, and full implementation is planned for June, 1981.

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 profit of the two main undertakings.

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The Hongkong Electric Company's Ap Lei Chau Power Station has two 60 MW and seven 125 MW units in operation. The last 125 MW turbo-generator was commissioned in March, 1980, bringing the total generating capacity of Ap Lei Chau Power Station to 1,061 MW.

Generation of electricity on the mainland is carried out by China Light and Power, Peninsula Electric Power Company Limited (PEPCO) and Kowloon Electric 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). Four gas turbines units of KESCO (264 MW) are housed at Hok Un. Operation of plants owned by PEPCO and KESCO is in the hands of China Light, which also has its own stations Hok Un 'A' and 'B' (total 350 MW) and a number of diesel sets (total 6 MW).

Transmission by China Light and Power and Hongkong Electric is carried out at 132 kilovolts (kV) and 66 kV, while distribution is mainly at 33 kV, 11 kV and 346 volts (V). Supply is 50 hertz (Hz) alternating current (ac), normally at 200 V single-phase or 346/200 V three-phase.

       Work on the interconnection between the systems of China Light and Power and Hong- kong Electric has proceeded smoothly. The interconnection will be made through submarine cables and is scheduled to be completed by April, 1981.

Since April, 1979, China Light and Power's system has been interconnected with that of Guangdong Electric Company of China and about one million units of electricity is exported to Guangdong (Kwangtung) Province daily. The interconnection results in the better utilisation of the company's generating capacities during off-peak demand periods and provides the facility to feed power from Guangdong to the company's system when required. The connection with Guangdong comprises 11 kilometres (km) of 66 kV overhead line between China Light's substation at Fanling and that of the Guangdong Electric Company at Shenzhen (Shum Chun) in China.

       Since October, 1979, when restrictions on the use of electricity for advertising, flood- lighting and display purposes were lifted because of an easing in the oil supply situation, the public has been exhorted to achieve voluntary savings. 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 manu- facturing centre and the general improvement in the standard of living of the population. Main electricity statistics for 1980, as well as electricity sales figures for 1978 to 1980, are shown in Appendix 34.

       To cater for the rising demand for electricity, two new power stations are being construct- ed; one is being built on Lamma Island by Hongkong Electric, while the other is being built at Tap Shek Kok by KESCO. A significant feature of the projects is that in both cases the generators will be capable of being fired by either oil or coal. Given the instability of the world oil supply situation and the greatly increased cost of oil, both power companies intend to use coal to fire their new stations, with an oil-firing facility for start-up and stand- by. Hongkong Electric's Lamma Island power station will initially house two 250 MW generating sets, while KESCO's power station at Tap Shek Kok will initially have four dual coal/oil-fired 350 MW units in addition to a number of gas turbines. It is expected that the first sets at both stations will be commissioned in 1982.

      To tie in with the new power stations, work has already commenced on the staged development of an extra high-voltage transmission system to transmit power from the Tap Shek Kok station to the various load centres. The new network, at 400 kV, will comprise

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87 km of double-circuited overhead line encircling the New Territories, 14 km of cables and six extra high-voltage substations. The first stage of the network will be completed in 1981. Power from the new Lamma Island station will be transmitted via underground and submarine cables at 275 kV to Hong Kong Island.

The two major electricity companies are the primary users of fuel oil, accounting for more than 50 per cent of Hong Kong's total import of petroleum products in 1980. To reduce the repercussions of supply restrictions, the government took measures at the end of the year to store a temporary reserve of fuel oil, for electricity generation, in a very large tanker moored in local waters. The first phase of the scheme came into effect on December 31, with the arrival of the tanker Straits Dahlia, with a cargo of 74,000 tonnes, and further purchases of oil were planned to bring the reserves up to 200,000 tonnes stored in this way. The tanker was moored west of the Ninepin Group of islands and strict precautions against pollution were taken. It is anticipated that this form of storage will be required until late 1981, when land tanks being constructed at the new power stations on Lamma Island and at Tap Shek Kok will be available for long-term storage.

The installed capacity of the Cheung Chau Electric Company is 8 MW.

Gas

The Hong Kong and China Gas Company supplies Towngas to Hong Kong Island, Kowloon and the New Territories.

-

Supply is available throughout the urban areas including Aberdeen, Ap Lei Chau, Repulse Bay and Stanley (on Hong Kong Island) and also in the industrial towns of Kwun Tong, Sha Tin, Kwai Chung, Tsuen Wan and neighbouring Tsing Yi Island in the New Territories.

Towngas production is centred at Ma Tau Kok in Kowloon and Hong Kong Island is supplied by submarine gas mains across the harbour.

The gas is produced in six cyclic naphtha reforming plants, with a total installed capacity of 934,454 cubic metres per day. Two units of naphtha plant are currently under construc- tion and, when commissioned early in 1981, will add a total of 679,604 cubic metres per day to the installed capacity of the station. A further two units of the same capacity have been ordered and are scheduled to be commissioned early in 1982, at which time the total installed capacity will become 2,293,662 cubic metres per day.

Towngas is distributed at a heat value of 17.27 MJ/m3 and a specific gravity of approxi- mately 0.56. Gas is sold on a thermal basis (one therm-105.5 megajoules). Towngas sales in 1980 amounted to 33.4 million therms (3.5 million gigajoules) compared with 28.6 million therms (3 million gigajoules) in 1979.

13

Communications and Transport

도배해

DENSE urban development, an increasing population and the corresponding growth in the number of vehicles registered continued to place heavy demands on Hong Kong's transport system in the year 1980. To cope with the steadily intensifying pressures, the territory's integrated public transport network of buses, ferries, minibuses, trams and railways needs to be continually improved through modernisation and greater efficiency. The government's White Paper on Internal Transport Policy, 1979, which defined ways to meet transport challenges up to the 1990s, indicated that the development of a complete multi-modal transport system rested on three major principles: 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 rapid development, both in the urban areas and in the New Territories. Accordingly, while new roads, flyovers and tunnels are being constructed, research and planning is continuing to devise more imaginative and practical schemes to meet the territory's traffic needs. Although the government-imposed financial restraints on the road development programme eased during the year, implementation of some of the road projects was impeded because of lack of capacity in the construction industry. This, in turn, led to more emphasis being placed on the upgrading of public transport, and the better use of roads. The most significant improvement in public transport in 1980 was the opening of the full Modified Initial System of the Mass Transit Railway (MTR) in February, 1980. Serving 15 stations on Hong Kong Island and urban Kowloon, the underground railway carried 155 million passengers in its first 10 months of full operation. It is anticipated that one million passengers a day will be using this system before the mid-1980s. At year's end, work on the 10.5-kilometre Tsuen Wan extension of the MTR was proceeding on schedule to an opening in 1982.

      Studies on the most appropriate public transport system to serve the crowded north shore of Hong Kong Island resulted in the government deciding, in December, to build an Island Line of the Mass Transit Railway in preference to a light rail transit line. However, a light rail system was being considered for the new towns of Tuen Mun and Yuen Long in the western New Territories.

      Work on the modernisation of the Kowloon-Canton Railway continued during 1980, with the breakthrough in the new Beacon Hill Tunnel taking place in April. The first stage of electrification is expected to be commissioned by early 1982, providing a high-speed suburban service between the new town of Sha Tin in the New Territories, and Kowloon. Full electrification of the line to Lo Wu is scheduled to be completed by the end of 1982. In February, a second 'through' passenger train service was introduced between Kowloon and Guangzhou (Canton). The through coach express services have proved extremely popular, and were fully booked both ways during the year.

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      To ensure that the expansion of the two major bus companies Kowloon Motor Bus Company Limited and the China Motor Bus Company Limited - was accompanied by a parallel development of maintenance and depot facilities, the injection of planning and management resources, and the provision of new equipment, both companies signed an agreement with the government in February, 1980, defining improvements to be achieved in these areas.

      Detailed consideration continued on development proposals for a possible fixed road crossing between Lantau and the mainland, which was recommended by consultants appointed by the government in 1979.

       In view of the increasing traffic in the Cross-Harbour Tunnel, a group of consultants was appointed by the government to examine the various aspects of additional cross- harbour facilities. The study of short-term options was finalised, and work on the long- term study was scheduled for completion in early 1981. Good progress was made on the construction of the Aberdeen Tunnel, one tube of which is expected to be open for traffic by August, 1981. The tunnel, together with its approaches, will provide a high-capacity traffic corridor linking the southern part of Hong Kong with the rest of the territory.

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 3,130 franchised buses and coaches (of which approximately 86 per cent are double- deckers); 4,350 minibuses; 9,856 taxis; 163 double-deck trams with 20 single-deck trailers; 93 ferry vessels; a funicular cable tramway ascending one of the world's steepest gradients; diesel-hauled trains of the Kowloon-Canton Railway (British section); 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 year 1980 saw continued growth in the number of motor vehicles in use, and a con- sequent deterioration in bus operating speeds in many traffic corridors. To maintain mobility for the majority of commuters, who use public transport, the government has stepped-up the introduction of public transport priority schemes, including bus-only and tram-only lanes (which are being introduced, in stages, over a five-kilometer stretch of road along the north shore of Hong Kong Island between Shau Kei Wan and Causeway Bay). Similar schemes for other urban areas, such as in the Central District of Hong Kong Island and Sham Shui Po and Kwai Chung in Kowloon, were in the course of preparation during the year.

The Kowloon Motor Bus Company Limited is the largest of the three franchised companies, with a fleet of buses operating over routes in Kowloon, the New Territories and, jointly with China Motor Bus Company Limited, through the Cross-Harbour Tunnel. In 1980, the fleet carried 912 million passengers and travelled 122 million kilometres. Fares are charged according to route distance and range from 30 cents to $5. A higher scale of fares applies to the 16 express coach services, two of which serve Hong Kong International Airport.

      The opening of the MTR and the introduction of higher bus fares in February, had a significant effect on bus services. This was particularly noticeable on the cross-harbour and coach services routes, and on routes running parallel to the railway, where demand

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dropped. Elsewhere, demand continued to increase (especially in the New Territories) and KMB is pursuing a programme of vigorous expansion to supplement capacity in the urban area as well as meeting the demands of new developments in the New Territories. In 1980, 34 new routes were introduced including 17 feeder routes to MTR stations.

The China Motor Bus Company Limited operates 99 bus routes on Hong Kong Island and 18 cross-harbour routes jointly with the KMB. In 1980, the fleet carried 276 million passengers and travelled 42 million kilometres. Expansion of the company's services on Hong Kong Island continued and 18 new routes were introduced in 1980 including 12 feeder routes to the Admiralty MTR station.

Both CMB and KMB were granted approval to raise their fares in February. The in- creases, by about 60 per cent, brought KMB urban fares up to a range of 30 cents to 70 cents and CMB's up to a range of 50 cents to 70 cents, with higher fares for suburban, rural and express routes.

       On Lantau Island, the New Lantao Bus Company Limited operates a fleet of 56 buses over six franchised routes which, during 1980, carried an average of 6,293 passengers each weekday, while recreational demand increased this figure to an average of 13,621 on Sundays and public holidays. The company introduced its first two double-deck buses in early 1980, and four more are ordered for delivery in 1981. Fares were raised on April 1, 1980.

The franchised bus services are supplemented by a fleet of 2,024 non-franchised public buses, which are operated for hire on a group contract basis, as well as private buses which service private housing developments or factories.

Minibuses

The territory's fleet of 4,350, 14-seater minibuses carried some 1.495 million passengers per day in 1980. Fares on minibuses tend to be higher than those of the regular bus and rail services and fluctuate with demand - but PLBs are popular with passengers who, by paying a higher fare than they would for an equivalent bus journey, may obtain a quicker, more direct, or more comfortable service.

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Public Light Buses tend to concentrate on the main bus and tram corridors, delaying the high-capacity carriers by their density and frequent uncontrolled stops. As a result, a number of measures have been introduced to limit the congestion they cause. On an increasing number of busy streets PLBs have been prohibited from stopping, and they are prohibited from entering certain areas.

Since 1972, PLB owners have been invited to apply to operate a growing number of 'maxicab' routes, on which frequency, fares and stopping places are fixed by the government, and a measure of route protection is offered. There routes are designed to serve areas for which large buses are unsuitable or where demand is inadequate to justify a full bus service. By the end of 1980, 53 maxicab routes involving 328 PLBs were in operation throughout the territory. Some 31 of these services had passed their trial periods and the operators had been awarded franchises.

A fleet of 955 private light buses is also maintained by schools, private housing develop- ments or commercial enterprises for their own needs.

Trams

      The tramway along the densely populated north shore of Hong Kong Island has been a feature of Hong Kong's public transport services since 1904. During 1980, the fleet of 163 double-deck tramcars and 20 single-deck trailers operated by the Hongkong Tramways Limited carried a daily average of 434,926 passengers.

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A 5.46 per cent increase in patronage was recorded during the year, as the tramway retained a flat fare for adults of 30 cents and 10 cents for children on each of its five over- lapping routes, while bus fares on parallel routes were raised.

       In addition, useful gains in speed and capacity were realised by the exclusion of motor and pedestrian traffic from sections of the track and, at year's end, some 10.2 kilometres of line was reserved for trams only.

Since 1888, the Peak Tramway Company has operated a cable-hauled funicular railway from Garden Road to The Peak on Hong Kong Island. There are five stations on the 1.4 kilometres line, which ascends to 397 metres above sea level, and in places negotiates a gradient of 45 per cent.

       The railway is popular with tourists, and provides a direct route to the Central District for residents of The Peak. The service employs two cars, with a third available as a replacement for maintenance purposes.

During the year, a flat fare of $2 for adults and $1 for children was introduced, and patronage declined from 5,770 passengers a day in 1979 to a daily average of 5,576.

Ferries

Ferry services in Hong Kong are, for the most part, provided by two major companies - the Hongkong and Yaumati Ferry Company Limited and the Star Ferry Company Limited. The Hongkong and Yaumati Ferry Company operates a varied fleet of vessels on 16 cross-harbour services (three of them carrying vehicles), 15 services to outlying districts, and a coastal ferry service along the north shore of Hong Kong Island. The company has a fleet of 83 vessels comprising double and triple-deck ferries, water buses and water taxis, and high-speed hovercraft.

The Star Ferry Company has a fleet of 10 vessels, plying across the harbour between Edinburgh Place on Hong Kong Island, and Tsim Sha Tsui and Hung Hom in Kowloon. In the months since the Mass Transit Railway was extended across Victoria Harbour in February, 1980, cross-harbour ferry services operating within the MTR catchment area have suffered significant passenger losses. Daily traffic on the Star Ferry's Tsim Sha Tsui service fell by 20 per cent compared with 1979, and HYF's cross-harbour services dropped by 10 per cent. However, despite the increased competition across the harbour, HYF is continuing to develop a wide range of services to outlying districts to cater for commuter traffic and the intense demand for travel to the outlying islands on weekends and holidays. Both ferry companies raised their fares during the year. Cross-harbour adult fares are now 50 cents on Star Ferry services, and 60 cents on the shorter HYF routes. HYF's longer routes charge ordinary-class fares up to $2, on weekdays, and surcharges are made for the air-conditioned de luxe class, and hoverferry services.

Apart from the two major ferry operators, a number of minor ferry services are licensed to small operators. In the New Territories supplementary services, known as 'kaitos' are operated in response to local demand, while in Victoria Harbour fleets of motor boats known as 'walla-wallas' are available for hire at the public piers on either shore.

Taxis

      Hong Kong is served by two types of taxis: Hong Kong and Kowloon taxis, which may operate anywhere on Hong Kong Island or in Kowloon, and New Territories taxis which are restricted to rural areas in the New Territories.

During 1980, the government continued its policy of increasing the number of Hong Kong and Kowloon taxis, and at the end of the year 9,118 licences had been issued. The number

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of New Territories taxis which had remained at 738 since their re-introduction in 1976 was also reviewed, and a recommendation that a further 100 licences be issued was implemented in 1980.

       Both categories of taxi applied for and received approval to raise their fares during the year, and the increases were implemented in October. The new rates for Hong Kong and Kowloon taxis became $4 for the first two kilometres and 50 cents for each subsequent 0.25 kilometre, while for New Territories taxis the first two kilometres cost $2.40 with 30 cents for each subsequent 0.25 kilometre.

Mass Transit Railway

In February, 1980, Her Royal Highness Princess Alexandra officially opened the Mass Transit Railway by unveiling a commemmorative plaque at the concourse level of Chater Station, on Hong Kong Island. The section of the railway from Tsim Sha Tsui in Kowloon, through the immersed tube to Admiralty and Chater stations, was the last section of the railway (known as the Modified Initial System) to be opened. The first section, between Kwun Tong and Shek Kip Mei in Kowloon, was opened to the public on October 1, 1979, followed by the Nathan Road stations as far as Tsim Sha Tsui during December, 1979.

Since the railway began running, until December, 1980, it had been used by some 180 million people with daily passenger volumes running at around 600,000. However, on two occasions during the year the figure of 600,000 was surpassed - on February 16 (during Chinese New Year) when 795,000 people were carried, and on September 23 (Mid-Autumn Festival) when the total number of travellers was 701,000. To meet the steady increase in demand, the corporation began introducing six-car trains and at the end of the year all trains in daily use were made up of six cars.

The majority of people using the railway purchased single-ride tickets although there was a growing demand for the multi-ride ticket, which initially provided 10 rides of each of the fare denomination values. A 50-ride ticket will be introduced in the new year and the corporation intends to introduce a 'stored-value' ticketing system later in 1981.

       During 1980, there were eight major incidents which caused delays of one hour or more in the railway's service. These arose from teething problems with the new equipment which were steadily overcome as the year progressed. Despite these problems, however, the record for trains arriving at a destination within two minutes of the scheduled time rose from 94 per cent for the first few months to 98 per cent at year's end.

       The Modified Initial System of the railway comprises 15 stations, of which 12 are under- ground and three overhead. It serves the East Kowloon area, North Kowloon, Nathan Road, and the Central District of Hong Kong Island. The railway was built several weeks ahead of schedule and within the budgeted construction cost of $5,800 million. It is anticipated that the Modified Initial System will carry up to one million people per day before the mid-1980s.

       At the end of 1980, work was well advanced on an extension of the present system to the growing industrial town of Tsuen Wan. The Tsuen Wan extension is 10.5 kilometres in length and branches from the Modified Initial System at the north end of Nathan Road and then runs in a westerly direction to Tsuen Wan. It incorporates 10 stations and is being built at a cost of $4,100 million.

More than 70 per cent of the civil engineering work has been completed on the extension, which will probably come into operation ahead of schedule during 1982. It will cater for some 800,000 passengers per day.

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      As with the Modified Initial System, much of the financing for the construction of the Tsuen Wan extension is in the form of export credits covering construction and equipment contracts placed with overseas companies, with the balance being funded by local and international banks. All loans raised to finance the construction of the Modified Initial System and Tsuen Wan extension are expected to be repaid by 1992-3.

During 1980, the corporation entered into a further three joint property developments. These are at Kwai Fong, Kwai Hing and Argyle stations. The other development schemes undertaken by the corporation are at Kowloon Bay Depot, Tsuen Wan Depot, and at Admiralty and Chater stations.

In December, 1980, the government announced that the Mass Transit Railway Corpora- tion could proceed with the construction of an underground line on Hong Kong Island to be called the Island Line. This line, along the island's crowded northern shore, will link Chai Wan with Western Market. New stations will be constructed and the railway will take advantage of the two stations already provided under the Modified Initial System at Admiralty and Chater. It is estimated that the cost of the Island Line, in 1980 dollar terms (not including interest charges), will be $7,000 million and construction work is expected to begin in April-May, 1981.

      Much of the inconvenience caused by construction of the Modified Initial System was overcome during 1980 but close liaison continues to be maintained between the corporation and various government departments concerning disturbance due to construction work on the Tsuen Wan extension.

Compensation payments made during the construction of the Modified Initial System totalled approximately $35 million, while for the Tsuen Wan extension the figure at the end of 1980 was approximately $5 million.

Kowloon-Canton Railway

A highlight of the year 1980 was the introduction, on February 11, of a second 'through' passenger train service between Kowloon and Guangzhou (Canton). Seating 680 passengers, the new train has a slightly larger capacity than the initial service and operates with new coaches. Both express trains have proved extremely popular and were fully booked both ways during the year.

Despite ageing and very limited resources (12 locomotives and 96 coaches), the railway carried a record 19,389,399 passengers during the year with substantial increases also registered for freight and livestock.

      In 1978, the government approved proposals to modernise and electrify passenger services on the Kowloon-Canton Railway. The project will provide a fast, frequent and air-condi- tioned service along the main transport corridor between urban Kowloon, Sha Tin, Tai Po, and Lo Wu at the border. In 1980, the project gathered momentum: the construction phase was entered in earnest and more than 20 contracts were let - the largest being for the construction of a new maintenance depot at Ho Tung Lau in Sha Tin to house and maintain the new electric multiple-unit trains.

      An order has been placed for 45 of these three-car units with the first delivery expected early in 1981. These trains will be powered by 25 kV/ac supplied from overhead cables. Construction of a sub-station in Tai Wai, Sha Tin, to supply electricity for the overhead wire commenced in April, 1980, and is expected to be completed by March, 1981.

      Contracts for double-tracking the remaining sections of the line from Sha Tin to the border town of Lo Wu have all been awarded.

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       The largest single event of the project during 1980, was the breakthrough on April 23 in the new double-bore Beacon Hill Tunnel, which is scheduled for completion in April, 1981.

       In tandem with double-tracking, a highly sophisticated signalling system and a modern telecommunications network will be installed. The signalling system will be centrally- controlled from the Kowloon terminus.

Safety along the electrified railway will be improved by fencing-in the entire line; work on this has already started and will be completed before the opening of the high-frequency services in 1982. In addition, subways and footbridges will be provided at frequent intervals. Under the modernisation programme, all of the existing stations are to be rebuilt to cater for the anticipated large numbers of passengers who will be carried (an estimated 250,000 people each day by the mid-1980s, rising to 500,000 a day by 1990). Work has already started on a new station at Kowloon Tong, which will have a three-level interchange with the Mass Transit Railway, and rebuilding of the Sha Tin and Mong Kok stations is moving ahead for completion by 1982. Remodelling and replacement of the other stations will be phased in with the opening of the new electrified service.

       The first stage of electrification between Kowloon and Sha Tin is expected to be commis- sioned in the first half of 1982 with full electrification of the line up to Lo Wu by the end of 1982.

Roads

Construction of highways proceeded satisfactorily in 1980, with $598.1 million being spent on major projects and $77.6 million on improvements and maintenance. The total length of roads maintained by the government now stands at 1,161.3 kilometres, of which 347.8 kilometres are on Hong Kong Island, 346.2 kilometres in Kowloon and 467.3 kilometres in the New Territories.

On Hong Kong Island, major highway projects started during 1980 included the con- struction of a service road on the Aberdeen Reclamation near the Wholesale Fish Market and construction of new roads and drains at Mount Butler. Work continued on the im- provement of Victoria Road near Bisney Road. Other major highways projects in progress included the Wong Nai Chung Gap Road/Stubbs Road flyover, the Hill Road flyover, and several ancillary contracts for the construction of the North Point section of the Hong Kong Island Eastern Corridor. By the end of the year, work on the main contract of this important project was about to start. Interim improvement work to Island Road from Wong Chuk Hang to Deep Water Bay was also commenced, as was work on bus and tram priority lanes from Shau Kei Wan to Causeway Bay.

Works completed during 1980 included the transport interchange system in the Mass Transit Railway's Admiralty Station area; the reinstatement of Pedder Street, Des Voeux Road and Chater Road in the Central District, following the construction of the railway; and an extension to the North Point Bus Terminus. The covered footbridge system along Connaught Road in Central District was also completed, providing a safe, fast and direct link between the hub of the business area and various public transport terminals. This footbridge system is the longest in Hong Kong and is also the first of its type to be provided with escalators. The Ap Lei Chau Bridge was opened early in 1980, providing the first road link with Ap Lei Chau Island.

In Kowloon, work on the permanent reinstatement of roads following the completion of the first section of the Mass Transit Railway was well in hand, and a new public bus terminus serving the Mass Transit Railway's Kwun Tong Station was completed. Work was started

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on the construction of a new access road to a new public housing estate at Chuk Yuen, and on several roads and drainage schemes for new developments in Kowloon Bay. Good progress was maintained on the East Kowloon Way and the San Shan Interchange at To Kwa Wan which, together, will eventually complete the arterial traffic route between Kwun Tong and the Kowloon peninsula. The West Kowloon Corridor at Tai Kok Tsui continued to make headway and a contract was let for a further part of the elevated primary distri- butor road linking Yau Ma Tei with Lai Chi Kok.

Major highway projects which were completed in Kowloon included the eastern road connection for the Airport Tunnel at Kowloon Bay and the Wuhu Interchange at Hung Hom which marks the commencement of the western approach to the tunnel.

In the New Territories, satisfactory progress was maintained on the construction of the grade-separated intersection of Castle Peak Road and Texaco Road; improvements to Clear- water Bay Road from Anderson Road to Clearwater Bay Apartments; the second carriageway of Tuen Mun Road between Tsuen Wan and Sham Tseng; and the first stage of the Tsuen Wan By-pass. Contracts were also let for the additional three-lane carriageway between Sham Tseng and Tuen Mun and for a grade-separated interchange at Chai Wan Kok to link Tuen Mun Road with Castle Peak Road and the future coastal route of the Tsuen Wan By-pass. Construction of the coastal trunk route between Sha Tin and Tai Po also commenced during the year with the letting of the contract for a bridge over the railway track near Yuen Chau Tsai. This will improve traffic flow across the railway in advance of completion of the trunk road. A start was made on the widening of Man Kam To Road, the eastern footbridge at Lo Wu, and the first stage of the Rambler Channel typhoon shelter cargo-handling area.

Major projects completed in the New Territories included the Tai Wo Tsuen Interchange on Castle Peak Road; the interim improvement at the intersection of Castle Peak Road and Kwai Chung Road; improvements to South Lantau Road from Shui Hau to Shek Pik; improvements to Clearwater Bay Road from Hiram's Highway junction to Pik Uk and from Pik Uk to Clearwater Bay Apartments; and the widening of the access road to Tai Lam Chung.

The feasibility report for a Lantau fixed-crossing was adopted by the government and consultants were instructed to proceed with detailed engineering designs for the bridge crossings together with the interconnecting works. Planning and detailed design work continued also for the New Territories circular road from Tai Po to Yuen Long, and for the improvement of the existing Tai Po Road from Ho Tung Lau to Tai Po Mei.

Traffic management techniques and computerised surveillance and signal control con- tinued to be employed in an effort to facilitate traffic movements on the existing road network. Traffic management schemes, including the introduction of clearways, the re- routing of existing traffic flows and restrictions on kerbside parking, loading and unloading activities, together with public transport priority measures, were implemented in major congested areas.

Good progress was maintained on the installation of traffic light signals at road intersec- tions and pedestrian crossings and a total of 427 sets were in operation by the end of the year. In addition, some 2,729 new lighting points were added to the road lighting system.

Road Tunnels

There are two twin-tube road tunnels operating in Hong Kong - the Cross-Harbour Tunnel and the Lion Rock Tunnel.

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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 was 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 1980, $213.2 million in revenue was col- lected from 35.3 million vehicles.

        In view of the increasing traffic congestion in the Cross-Harbour Tunnel, a consultancy group was appointed by the government to investigate both short-term and long-term aspects of additional cross-harbour facilities. The study of short-term options was finalised and work on the long-term study was scheduled to be completed in early 1981.

The Lion Rock Tunnel links Kowloon with Sha Tin and other areas of the northeastern New Territories. Managed by the Transport Development, the tunnel began operating in November, 1967, as a single-tube facility. Following completion of a second tube and refur- bishment 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 34,310 in 1980. The three-category toll charge ($1, $1.50 and $2) produced $15.1 million from 12.56 million vehicles during the year.

Two additional twin-tube tunnels are under construction in Hong Kong - the Airport Tunnel at Kai Tak International Airport and the Aberdeen Tunnel on Hong Kong Island.

The Airport Tunnel, which passes under the Kai Tak Airport runway, will form part of a through route connecting the Cross-Harbour Tunnel at Hung Hom on Kowloon peninsula with the airport and the industrial area of Kwun Tong. It will be toll-free and is expected to have one tube in operation by mid-1981, and the second a year later.

Civil engineering works in the Aberdeen Tunnel continued throughout 1980 and electrical and mechanical works - to provide the lighting, ventilation and other ancillary services - were begun. This tunnel, together with its approaches (the Canal Road flyover extension to the north and the Wong Chuk Hang Interchange in the south) will form a high-capacity traffic corridor bringing the southern part of Hong Kong Island within easy reach of Kowloon and the New Territories. The north-bound tube of the tunnel is expected to be open to traffic by August, 1981, while the second tube is expected to be operating early in 1982. Both the airport and Aberdeen tunnels will be managed by the Transport Department.

Transport Administration

The Governor in Council is advised by a government-appointed Transport Advisory Com- mittee on the broad issues of transport policy aimed at improving the movement of people and freight. During 1980, the Secretary for the Environment relinquished the chairmanship of the committee in favour of a non-official chairman. The Commissioner for Transport is the statutory authority responsible for the planning and regulation of all forms of public transport; traffic management; vehicle registration and licensing; driving tests and licences; the examination of vehicles; the management of government road tunnels and off-street carparks; and the operation 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. The Transport Tribunal which came into being in December, 1979, provides members of the public with an avenue for the review of cases in which decisions have been made against them by the Commissioner for Transport.

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During the year, amendments were made to the road traffic legislation to allow for an increase in taxi fares and the metrication of taxi meters. A general review of all road traffic legislation was nearing completion at the end of the year and revised legislation was expected to be enacted early in 1981.

Public Transport Management and Planning

With the exception of the Kowloon-Canton Railway, all transport services are maintained and managed by non-government undertakings. However, in most cases, the Commissioner for Transport exercises controls over the schedules of services and fares and provides trans- port-related needs such as bus terminals, ferry piers and land for depots. Close contact is maintained between the operators and the Transport Department to co-ordinate the wide- range of services provided.

Major studies for long-term transport planning needs are usually undertaken by con- sultants, particularly if they concern largescale development or redevelopment projects. During 1980, studies were in progress to consider the future transport requirements of the new towns under construction in the New Territories; access to North Lantau; additional cross-harbour links; integration of the MTR into the overall public transport system; and the transport system for the Hong Kong Island Corridor. These studies by consultants are monitored by government steering or working groups.

For shorter-term transport planning, the Transport Department Planning Division and the PWD Traffic and Transport Survey Division undertake surveys and economic and statis- tical work in order to solve immediate and short-term problems.

In view of Hong Kong's high population density, a major consideration in all transport planning is to ensure that due emphasis is placed upon the role played, and to be played, by public transport as the dominant mode of transport. Accordingly, arrangements were made during 1980 to accelerate Hong Kong's bus-purchasing programme to record levels. Over the next five years, it is anticipated that some 500 new double-decker buses - ordered by all three of the franchised bus operators - will enter service each year. Less conventional modes of public transport are also examined. There is a distinct possibility that ultra- modern, high-capacity trams will make an appearance in Tuen Mun new town (and travel from there to Yuen Long), and various rail proposals are under consideration for both the urban areas and the New Territories.

Licensing

The number of registered vehicles continued to rise in 1980 reaching 299,395 by the end of the year. Compared with 1979, this was an increase of 38,467 vehicles, or 15 per cent. The bulk of the increase was in private cars, some 27,384 of which were registered during the year. Detailed statistics are given in Appendix 36.

      Registration procedures for motor vehicles were computerised when the second stage of the VALID (Vehicle And Licensing Integrated Data) system came into operation in the course of the year. This new system enables swift checking of vehicle records by the police and transport departments.

The demand for driving licences remained high and, by the end of 1980, the total number of licences held by Hong Kong residents was 695,084, compared with 642,860 in 1979.

During 1980 the Transport Department's five vehicle examination centres carried out 66,499 inspections. Most were in connection with the registration and licensing of vehicles, including goods vehicles first registered before 1971, which became subject to compulsory annual examination from October 1, 1979, when the Road Traffic (Amendment) (No. 3)

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Ordinance 1978 came into effect. This amendment provides for the charging of fees for vehicle inspections, together with the authority to issue vehicle repair orders and even to suspend vehicle licences if a vehicle is found to be unroadworthy. Annual inspection of older goods vehicles was made possible by the opening of the new semi-automated multi- lane Vehicle Examination Centre at Hoi Bun Road, Kowloon Bay.

Under the Traffic Accident Victims Assistance Scheme, which began operating in May, 1979, immediate cash assistance is given to victims of road traffic accidents and their depend- ants, irrespective of which party might have been at fault in causing an accident. To finance the scheme, each driving licence holder is required to contribute $25 a year, and each vehicle owner $75 a year upon the issue or renewal of his vehicle licence. The Transport Depart- ment is responsible for collecting the levies under this scheme and for crediting the amount to the Traffic Accident Victims Assistance Fund administered by the Director of Social Welfare. The total amount of levies collected in 1980 was $39.9 million.

With effect from September, 1980, a school hire car permit scheme was introduced with the issue of 1,408 hire car permits for vehicles which provide school transport for children - popularly termed 'amah driver' vans.

Parking

Parking facilities are provided by the government in nine multi-storey carparks with 6,069 spaces, and four temporary open-air parks with 1,044 spaces. Two of the four open-air parks cater for goods vehicles. The most common rate in these carparks is $3 per hour in the daytime and $1 per hour in the evenings, but charges are generally higher for those near the business areas. The open-air parks have a lower rate which ranges between 50 cents per hour to $2 per hour.

Parking facilities are also provided by the private sector in about 40 multi-storey carparks with some 10,000 spaces, mostly in the commercial-residential areas of Causeway Bay, North Point, Tsim Sha Tsui, Mong Kok and San Po Kong. The rate in these varies from $3 to $5 per hour.

On-street parking is provided in places where traffic conditions permit and parking meters have been installed to ration occupancy. There are 9,012 metered spaces throughout the territory, of which 677 are reserved for goods vehicles. Payment is required from 8 a.m. to midnight from Mondays to Saturdays. Where there is a need to ration parking spaces all through the week - such as on The Peak and at Hong Kong International Airport - charges are also made on Sundays and public holidays. In April, a programme was started to replace all older types of parking meters, which have been in use for 10 years or more, with meters of more modern construction.

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On-street parking is controlled by traffic wardens who, together with the police, operate a fixed penalty system for parking offences. These penalties were increased from $30 to $70 in July, 1980.

A comprehensive review of parking policy, including the provision and management of carparks; the needs of lorry parking; parking in new towns; and major transport inter- changes, has been completed.

Shipping

Hong Kong is the seventh largest port in the world in terms of the tonnage of shipping using its facilities, cargo handled and the number of passengers carried, and has earned a world- wide reputation for the way in which it caters for the requirements of modern shipping.

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Victoria Harbour, lying between Hong Kong Island and the city of Kowloon, is regarded as one of the three most perfect natural harbours in the world and has an area of 6,000 hectares varying in width from 1.6 to 9.6 kilometres.

      Administration of the port is one of the responsibilities of the Director of Marine. To ensure that port facilities and services continue to develop with the changing needs of Hong Kong and of the ships which use the port, the director is advised on its administration by the Port Committee and the Port Executive 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 three container termi- nals in the world, handled 1.48 million TEU's (20-foot equivalent units) in 1980. 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. Up to six 'third generation' containerships can be accommodated and worked simultaneously at these berths, all of which are operated by private companies or consortia.

In 1980, some 10,229 ocean-going vessels called at Hong Kong and loaded and discharged. more than 30 million tonnes of cargo. This included 24 million tonnes of general goods, 55 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 2,024 lighters and junks. The ratio of mechanised junks has slightly decreased to about 29 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 and con- tainer 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 who, in September, 1979, commenced construction of 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 72 mooring buoys provided and maintained by the Marine Department for ocean-going vessels. Of these, 44 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 so located that ships can remain secured during tropical storms. This obviates unnecessary ship movements and so helps 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 1980 more than 6.6 million passengers were carried by the jetfoils, hydrofoils

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and conventional ferries plying this route. A further 127,268 passengers were carried on the hoverferry service between Hong Kong and Guangzhou (Canton) in China, 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 a.m. to 6 p.m. at the Eastern Quarantine Anchorage. Ships are normally cleared inwards on arrival and large passenger vessels are processed on the way to their allocated berths. Advance immigration clearance and radio pratique may be obtained by certain vessels on application.

Surveyors of the Marine Department are available to survey any British or foreign ship and issue safety certificates under the International Convention for the Safety of Life at Sea, 1974, and other international safety conventions. Examinations for certificates of competency as masters, mates and engineers are held regularly on scheduled dates and certificates of competency issued by Hong Kong are recognised by the Department of Trade in the United Kingdom and are entitled to Commonwealth validity.

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 its approaches are constantly being improved to ensure greater safety. All fairway buoys are lit and fitted with radar reflectors. In 1980, all the necessary changes were made to bring navigation buoys in Hong Kong waters into uniformity with the International Association of Lighthouse Authorities (IALA) Maritime Buoyage System 'A'. 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 comprehensive marine communications throughout the harbour and its approaches. Marine Department teleprinter/telex facilities are linked directly to users on a worldwide basis. There is also a continuously monitored disaster network which links the Marine Department's Search and Rescue Co-ordination Centre to 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 experiencing difficulties in the South China Sea, within about 1,300 kilometres of Hong Kong, the Marine Department acts as a rescue co-ordinating centre.

       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 floating 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 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 is capable

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of lifting vessels of up to 100,000 tonnes deadweight. Hong Kong has more than 130 minor shipyards equipped to undertake repairs to small vessels. These yards also build specialised craft, particularly sophisticated pleasure craft and yachts.

      Hong Kong remains a prominent centre for the recruiting of seamen. The Seamen's Recruiting Office and the Mercantile Marine Office register and supervise the employment of 19,000 seamen on board 1,200 vessels of all flags. The Hong Kong Merchant Navy Training Board met three times during 1980 to continue to assess the needs of local seamen. Particular emphasis has been placed on the need for an improvement in the standard of training of Hong Kong seamen, having regard to the recent International Conference on Training and Certification of Seafarers, 1978, under the auspices of the Inter-Governmental Maritime Consultative Organisation (IMCO). The Mariners' clubs in Kowloon and Kwai Chung continue to provide recreational and welfare facilities of a high standard for visiting seamen of all nationalities. Steps are being taken to improve relations in this field by the setting up of a Port Welfare Board which will enhance the activities of the present Port Welfare Committee.

Civil Aviation

The international air transport industry went through a difficult year during 1980 as a result of increasing fuel prices which cut deeply into the profitability of the industry. Consequently, airlines were forced several times to make upward revisions in air fares and cargo rates to offset their higher operating costs.

      Hong Kong, though not particularly hard-hit by these enhanced fares and cargo rates, nevertheless suffered a slight setback. During 1980, a total of 6.8 million passengers travelled by air through Hong Kong, representing an increase of about nine per cent over 1979. This was the first time in five years that the passenger traffic growth rate had dropped to below 10 per cent. The number of transit passengers, however, rose from the 1979 total of 550,000 to 680,000.

The air freight industry remained buoyant but as a result of high rates, some shippers switched to sea transport to cut down on costs. In terms of volume of cargo handled, the industry registered zero growth with a total throughput of some 258,000 tonnes. The value of goods carried, however, was estimated to amount to more than $44,000 million, rep- resenting an increase of more than 20 per cent over 1979. In all, the volume of freight forwarded by air carriers in 1980 accounted for about one-fifth of Hong Kong's domestic imports in terms of value; nearly one-quarter of its exports; and more than one-quarter of the re-export trade. The United States remained the major market for Hong Kong's exports sent by air, accounting for about 40 per cent of products, and for imports air-freighted into Hong Kong, took over the lead from Japan with about 22 per cent of the total.

Towards the end of 1980, 31 airlines were operating more than 960 scheduled passenger and cargo services each week between Hong Kong and the United Kingdom, China, the United States, Canada, Europe, South Africa, the Middle East, Australia, the South Pacific region and Asian countries. In addition, more than 10 airlines operated about 40 non- scheduled services a week.

International aircraft movements for the year decreased by 2.4 per cent from 55,928 to 54,569. The drop was mainly due to the continuing move by airlines towards wide-bodied aircraft to cope with traffic needs, and partly due to the worldwide slowing down of traffic growth which forced some airlines to cut down on the frequency of their flights. At year's end, about two-thirds of the aircraft calling at Hong Kong International Airport were of the wide-bodied type.

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During 1980, several airlines suspended their services to Hong Kong. In January, Con- tinental Airlines dropped its all-cargo services between South America and Hong Kong; in August, Cathay Pacific Airways and the Civil Aviation Administration of China services were suspended; and Braniff International also suspended its services between Hong Kong and the United States in October.

British Airways' monopoly of the Hong Kong-London route came to an end when Cathay Pacific Airways and British Caledonian Airways started scheduled services on the route in July and August, respectively.

Hong Kong International Airport remains one of the busiest airports in Southeast Asia and currently handles an average of 18,000 passengers a day. During 1980, the airport was further extended and improved under a four-stage, long-term development programme costing $600 million. By the end of the year, nearly all major expansion projects under this programme had been completed and the remaining work was expected to be finished before the end of 1981.

New extensions to the arrivals and departures levels of the passenger terminal were opened in January, 1980 effectively enlarging the public greeting area and the departures hall - and a new departure check-in island comprising 36 counters for airlines, a group baggage conveying system and a third baggage reclaim loop, were progressively brought into use. Closely following these improvements was the completion of two new nose-in parking piers for wide-bodied aircraft (built alongside the six existing inner bays) and an associated bus dock for transfer vehicles to take passengers between the aircraft parked at outer bays and the passenger terminal.

Redevelopment of the older half of the passenger terminal was carried on throughout the year and work on the installation of a fourth baggage-reclaim loop and another depar- ture check-in island was progressing smoothly at the end of the year.

       A new air traffic control centre equipped with advanced electronic equipment was opened in June, 1980, to replace the old centre built in 1962. Providing improved radar displays and radio and inter-communication facilities, the new centre handles various types of air traffic control functions for in-coming and out-going flights - including approach and departure control, area control, flight information and alerting services.

       In May, 1980, the government decided to go ahead with further studies on the possible building of a replacement airport at Chek Lap Kok off northern Lantau, after endorsing the findings and recommendations of consultants engaged in March, 1979, to develop a pilot plan and cost estimates for such a project.

        Selection of consultants to undertake the airport master plan study and the civil engineer- ing design studies was initiated and it was planned to start these studies in March, 1981.

Postal Services

The highlight of the year in the Post Office was the opening in September of the International Mail Centre at Hung Hom. Built at a cost of $53.5 million, the new centre handles Hong Kong's exchange of international mail with more than 200 postal administrations, as well as sorting all mail from Kowloon and the New Territories.

       With the opening of three more post offices during the year, there are now 78 post offices operating in Hong Kong, including two mobile post offices. The metric (SI) system of units was adopted for all postal services on August 5, 1980, but no significant changes were made to postage rates as a result.

In most areas of Hong Kong, there are two deliveries of mail each weekday and, despite the continuous increase in the volume of letters and parcels handled, the Post Office can

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still achieve its target of delivering most local mail within 24 hours of posting. As an im- provement to the mail delivery in the rural areas, door-to-door delivery has now been ex- tended to 331 villages in the New Territories.

       During 1980, the Post Office handled an average of more than one million letters and parcels each day; the total for the year (398 million) represented an increase of 8.2 per cent over 1979. Local mail increased by 14.7 per cent while outward surface mail was the only category of traffic to show a sharp decrease. Due mainly to the decline in the number of parcels and small packets posted to China, the number of outward surface items dropped 12 per cent compared with 1979.

       Air mail traffic continued to increase and each day the Post Office handled an average of 22 tonnes of mail at Hong Kong International Airport. More than 5,100 tonnes of mail was despatched by air and over 2,800 tonnes of air mail was received from abroad - representing increases of 21.4 per cent and 12.5 per cent, respectively, over 1979. A purpose-built Air Mail Centre, designed to cope with the increased traffic levels, is under construction at the airport.

      Eighteen countries were served by Speedpost and new traffic records were established during the year. In addition to the formerly established links with Australia, Belgium, Brazil, France, Japan, Kuwait, Macau, the Netherlands, South Africa, South Korea, Singapore, Switzerland, Taiwan, the United Kingdom and the United States, the service was extended to China, the Federal Republic of Germany and Canada. The increase of 84,700 items (up 64.7 per cent) over the quantity handled in 1979 reflected the continued popularity of this speedy and reliable service.

       Philatelic sales also continued to increase and sales of first-day covers, which previously averaged 200,000 covers for each special issue, doubled in 1980. There were three special stamp issues. Three stamps issued in May were based on the theme 'Hong Kong's Rural Architecture' and depicted the Tsui Shing Lau Pagoda, the Ching Chung Koon temple and a typical village house. In August, a single stamp was issued to commemorate the 80th birthday of Her Majesty, Queen Elizabeth the Queen Mother. This stamp formed part of an omnibus issue involving similar stamps being released by 12 dependent territories in all. The third special issue was released in November with 'Hong Kong's Parks' as its theme. It comprised four stamps depicting the Zoological and Botanical Gardens, Ocean Park, Kowloon Park and Country Parks.

      Agency services carried out by the Post Office on behalf of other government departments included the payment of social welfare benefits amounting to $15 million a month.

Telecommunications Services

The Postmaster General is the Telecommunications Authority in Hong Kong and he ad- ministers the Telecommunication 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 Telecommunication 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.

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In addition, the Post Office provides advisory and planning services for the communica- tions requirements of government departments. It also co-ordinates and regulates the use of all radiocommunications sites. During 1980, projects undertaken included the replace- ment of the Civil Aid Services radio network; the expansion of the radio network for the Agriculture and Fisheries Department; installation of a radio network for the Customs and Excise Service; expansion of the Police Private Automatic Branch Exchange network; and provision of PABX facilities for the Trade Industry and Customs Department, the Queen Elizabeth Stadium and the Prince Philip Dental Hospital. On July 1, 1980, the responsibility for supplying and maintaining government electronic equipment was trans- ferred to the Electrical and Mechanical Office of the Public Works Department.

The Hong Kong Telephone Company Limited, operating under franchise from the government, provides telephone and other telecommunications facilities in Hong Kong. With 1.6 million telephones connected to the network, Hong Kong has a density of more than 31 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 64 exchanges operating equipment ranging from electro-mechanical switching systems to advanced electronic systems.

A wide range of services and equipment is available to subscribers. Services include a direct-dial radio-paging service; a ship-to-shore telephone service; and a computerised directory enquiry service. Equipment available includes a comprehensive selection of residential telephones, business switching systems, auto-diallers, answering machines and data modems. The year 1980 saw the introduction of a telephone conference service enabling a conference to be held between up to eight people in Hong Kong and overseas; a time and temperature announcement service; and the development phase of Viewdata, an information service linking a television set, via a telephone line, to an information- bearing computer.

Hong Kong's international telephone service is provided by the Hong Kong Telephone Company Limited 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 70 countries and represent approximately 55 per cent of outgoing inter- national calls.

Other international telecommunication services as well as local telegram and telex services are provided by Cable and Wireless Limited. These include public telegram, telex, leased telegraph and telephone circuits for private communication networks, photo-telegram, public switched data, facsimile, international television and voicecast, and International Database Access Service. International facilities are provided via land and submarine coaxial cables and tropospheric-scatter, microwave, satellite, and high-frequency radio systems.

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The Media

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AS VISITORS to Hong Kong can readily observe, the processes of public information play a more important role here than in almost any other territory in the world. Certainly, no other place of similar size can boast such a range and intensity of media activity.

Much of this activity undoubtedly arises from Hong Kong's geographical situation. Traditionally the territory has been a trading post in the Far East and over the years has expanded into a manufacturing and banking centre. In recent decades, it has become a base for those studying and reporting on political events in China and neighbouring countries. For all these roles sophisticated international communications have been developed.

       The facilities available through satellite and the latest telecommunication equipment have attracted news media representatives from many parts of the world. News agencies, newspapers with international readerships and overseas television companies and corpora- tions have found it convenient to establish their bureaux and offices here. Regional publica- tions produced in Hong Kong have prospered, reflecting the territory's enhanced position as a centre of industrial and trading expertise.

      Within Hong Kong itself, there is a lively and flourishing news media made up of many daily newspapers, a range of weekly magazines, two private television companies and two radio stations. There is a free, critical and outspoken press without legislative controls other than those intended to provide safeguards against libel and pornography. The news media provides an efficient and speedy supply of information to a literate, industrious and healthily inquisitive society.

      The news media plays a vital part in the territory's precautionary measures against sudden climatic threats. When typhoons approach or rainstorms spell danger the news media reacts to alert, inform and advise the population.

Against this background, it is not surprising that remarkable advances and innovations have taken place in the information field in recent years. For example, a leading English- language newspaper has adopted a fully-computerised news-processing system, a develop- ment putting it ahead of most technically-advanced papers in Europe and North America. The government has matched this progress by producing and participating in an in- creasing number of public affairs programmes on television and radio, and by expanding its information services - notably by increasing the information staff in departments and also enlarging staff to meet the needs of visiting journalists.

The Press

      Hong Kong's flourishing free press consists of 97 newspapers and 388 periodicals, catering to a high readership market. The territory has the second highest newspaper readership in

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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. Six English language and 63 Chinese language newspapers are published each day. Generally, the price of newspapers is below $1.

Hong Kong is the base of Southeast Asian operations for many newspapers, magazines and news agencies. International news agencies represented include United Press Interna- tional, 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, journalist and associate members. Its professional activities include lectures, news conferences, briefings and film shows.

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 24 members and four associated 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.

It is generally recognised that the standard of training for journalists in Hong Kong must be improved. Following recommendations by the Hong Kong Training Council, a training board set up by the Governor is examining manpower training in journalism.

Sound Broadcasting

There are nine radio channels in Hong Kong. Five are operated by Radio Television Hong Kong (RTHK) the publicly-financed station, three by Commercial Radio and one by the British Forces Broadcasting Service.

In April, RTHK became the first station to introduce 24-hour broadcasting in both English and Chinese. The move proved extremely popular, and looks like becoming a permanent feature of Hong Kong's fast developing media industry. Both English and Chinese services provide round-the-clock news and are now better equipped to provide emergency information during typhoons or in the event of natural disasters.

By moving to 24-hour broadcasting the government station's four main channels in- creased output to some 830 hours a week of separate programming, an increase of nearly 30 per cent. In addition, Radio 5, an FM channel, broadcasts for 20 hours each day to provide a relay for the BBC World Service. During the day, the same channel caters for a number of minority-interest programmes in various Chinese dialects.

Despite problems in recruiting, staff of the RTHK newsroom continued to provide a highly informative daily news-interview programme, in addition to normal news bulletins and summaries in both English and Chinese. During the year, the Chinese morning news programme was extended from half an hour to one full hour and from five to six days each week. Both the English and Chinese programmes contain a balanced mixture of news, current affairs interviews, sports and finance, as well as short features.

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RTHK also announced it was working on a new plan for local radio, to cater for the tens of thousands of people moving to the new towns in the New Territories. The proposal is for an experimental local radio station at Tsuen Wan, and if the scheme is successful others may follow for Sha Tin and Tuen Mun.

      RTHK policy was set out in a document published by the Information Secretariat in May. It stated that RTHK was required to provide a balance of information, education and entertainment, a service of objective news and public affairs programming, and to expand productions which encouraged audience participation. It was to reflect fully the views of the government and the people of Hong Kong, providing a two-way channel of communication between them.

       On the radio programme side, both English and Chinese channels became even more involved in Hong Kong's cultural life. The English Fine Music section received high praise for its role in presenting, with the Hong Kong Arts Centre, a production of Stravinsky's A Soldier's Tale. The three public performances formed part of the 1980 Hong Kong Arts Festival and the opening night was attended by HRH Princess Alexandra.

      The Chinese music section was equally active and, as well as producing nearly 20 hours of music each day on channels 2 and 4, the section produced 13 special community in- volvement projects. One of these, the Amateur Singing Contest, was organised in conjunc- tion with the Urban Council. It attracted more than 2,000 contestants and seats for the final judging were sold within two hours.

On the general programmes side subjects as diversified as the Transport White Paper, illegal immigration, politics and the Olympic Games, were all given an airing on the weekly panel discussion In Perspective, while the Talk About programme, the Chinese service equivalent to Open Line, moved to an earlier and more popular time of 8 to 10 a.m.

      The English language Open Line programme continued to be one of the most popular and important channels of communication between members of the public and the govern- ment. Nearly 5,000 different enquiries, complaints, suggestions and comments were aired on the programme during the year.

       On the English service the new Cantonese by Radio series Everyday Cantonese proved to be a worthy successor to the Kwang Tung Wah lessons which were first broadcast in 1963. Educational programming in Chinese now averages about one hour each day on subjects ranging from medical advice to courses on Chinese history and literature. English lessons still prove to be extremely popular, with courses such as English Examined and The Bellcrest Story being well received by both school children and working adults.

       Commercial Radio celebrated its 21st anniversary with record growth in all areas. Several major outside broadcasts were mounted, including a free open-air pop concert attended by more than 10,000 people; a charity celebrity basketball match; soccer and tennis from Canton; golf from the United Kingdom; and harness racing from Macau. Funds were raised for several charities and, as usual, the stations were heavily involved in the Community Chest's Walks for A Million. All three channels provided valuable service during typhoons. A wide range of live shows from overseas was presented - ranging from the serious (Vincent Price as Oscar Wilde), to the entertaining (The Osmonds). Listenership and advertising revenue grew at an encouraging rate.

The British 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 and to provide a link with home for servicemen, their families and the civilian component of the forces.

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The station operates one MF transmitter, which carries Nepali programmes, and two FM transmitters, which carry English. Nepali programmes include daily news from Nepal, reports from scattered elements of the Brigade of Gurkhas, and information programmes produced by various ministries and agencies of the government of Nepal. Quiz shows are especially popular with the Gurkhas, and the station mounts three series a year, one of them for the children of Gurkha soldiers. Major sporting fixtures are also covered by means of the station's well-equipped outside broadcasts vehicle.

English programmes include a wide variety of programmes especially produced by BFBS London for services' audiences worldwide. The station in Hong Kong regularly links up with a number of radio stations in the UK for request programmes. During 1980, the total number of broadcasting hours was gradually increased until, by the end of the year, the station was operating for about 150 hours a week, divided roughly into three- fifths Nepali and two-fifths English. The operational staff consists principally of Gurkha soldiers, with a small number of professional programme and engineering staff, and a number of freelance staff.

Television

Television continues to be Hong Kong's principal leisure activity. Over 90 per cent of households possess at least one television set. Two enfranchised commercial broadcasting stations - Television Broadcasts Limited (TVB) and Rediffusion Television Limited (RTV) - and the government-owned Radio Television Hong Kong (RTHK), are the three main programme-producing bodies in Hong Kong. They produce an average of 76 hours of programming each week.

      Programme trends changed considerably during the year, as the lavishly-costumed kung-fu epics that once reigned supreme were replaced by drama serials cashing in on the nostalgia wave. Hong Kong in the 1940s and 1950s provided a backdrop for long, serialised dramas from both commercial stations and considerable pains were taken to evoke a nostalgic mood. Mini-series also were extremely popular, and featured a diversity of themes ranging from suspense-detective to nostalgic comedy.

Following the popularity of the documentary film on China The Rising Sun, RTV produced its own version, a series of 50 eight-minute programmes hosted by Tina Ti. After the international boycott of the Olympic Games both commercial stations cancelled their heavily-promoted coverage of the events.

RTHK produces 7 hours of programming per week, and its drama and documentary programmes rank among the Top 10 regulars. Heritage, an historical production, enjoyed both artistic and popular acclaim. Commonsense and Police One-Five, both Top 10 fixtures, went into their 4th and 5th years, respectively, while the children's programme Banana Boat went into its second year. One new segment by RTHK was the open discussion pro- gramme City Forum, which even in its off prime-time slot still managed to capture more than 150,000 viewers.

       In addition to its major function as a source of entertainment, good use is also made of television in the field of education. The government Educational Television Service (ETV), which utilises the transmission facilities of the commercial stations for eight hours each school day, is watched by 600,000 children in both primary and secondary schools. The programmes are devised and written by specialists on the Education Department staff, who provide schools with associated programme literature and follow-up work. The pro- grammes are produced in colour by the government station, Radio Television Hong Kong, using film animation, drama and documentary techniques.

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Government Information Services

THE MEDIA

The Government Information Services (GIS) serves as the government's link with the mass communications media and, through them, with the people of Hong Kong. During the year, in a re-organisation designed to improve the department's dual functions of providing information to the public and reflecting public opinion to the government, the News Division and the Public Relations Division were merged to form the Press and Public Relations Division. As a result, the department now comprises two main divisions; the other being Publicity.

       The Press Sub-division runs a round-the-clock news service through its teleprinter and facsimile networks which are directly linked with leading newspapers, news agencies, and radio and television stations. In 1980, the sub-division handled many thousands of enquiries from the media on a wide range of subjects - the total number again showing an increase over the previous year.

      The Public Relations Sub-division keeps the government fully informed of public opinion as expressed in the local media. It produces a daily news sheet in English, The Gist (which summarises news and editorials in the major Chinese newspapers), and Opinion, a weekly review of Chinese editorial comment.

       The division's newsroom becomes a communications centre during the passage of a typhoon or severe tropical storm, or other emergencies. It provides information to the media, mainly radio and television, to keep the public informed of latest developments. Staff of the department is mobilised for emergency duty in the newsroom and at various key positions in other departments.

       A network of information units has been established in 20 government departments and branches to improve the flow of information to the media and to improve relations with the public. During the year, a new information unit was set up in the Judiciary to increase public understanding of the workings of the courts and the administration of justice in Hong Kong. Staff in a number of departmental units was also increased to strengthen their links with the media and the public.

      A wide variety of publications is produced by the department, ranging from daily news- sheets and a wide choice of leaflets and fact sheets to the Hong Kong Annual Report, which has become the best-selling hardback book in the territory. Sales of government publications rose by 20 per cent to more than $9.6 million in 1980, compared with $8 million in 1979.

      To keep people overseas up to date on local events, a weekly news-sheet in English The Week in Hong Kong, is published. Another GIS publication, the Hong Kong News Digest, a fortnightly Chinese paper, helps to maintain close contact with Hong Kong Chinese living in Britain, the United States and other parts of the world.

      Through its Publicity Division, the department handles many publicity campaigns on such community service projects as anti-narcotics activities, fire prevention, road safety, the fight against crime and the drive to keep Hong Kong clean.

       The Overseas Public Relations Sub-division helps visiting correspondents, and television and film crews and works closely with news agencies and overseas journalists based in Hong Kong. International interest continued to be taken in the high level of illegal im- migration from China and in Vietnamese boat refugees stranded in Hong Kong awaiting resettlement abroad, and the workload on the section remained substantial. During the year, GIS officers arranged programmes, handled enquiries and gave briefings to 840 visiting journalists, film teams and broadcasters.

The Information Section of the Hong Kong Government Office in London works closely with GIS to assist the British media with information about events and developments in

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Hong Kong. During the year, the section played an important role in the staging of the Hong Kong in London Festival in September. A major overseas promotion effort, the festival was organised by the London Office in association with the Greater London Council. It was generously assisted by community groups and private sponsors in Hong Kong, and by the Hong Kong Chinese community in the UK.

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 the Secretary for Information. The branch is inter alia responsible for advising the government on the presentation of its policies and on its public relations. Its establish- ment as a separate entity in 1979 reflects the high level of importance the government attaches to keeping members of the community well-informed about matters affecting their lives.

Film Industry

By the end of 1980 the number of cinemas in Hong Kong, Kowloon and the New Territories stood at 83. However, with rising property values it is expected that this figure will prob- ably decline during the coming year. The annual cinema attendance totalling 65 million did not differ much from that of the previous year. Related to the population, the high attendance figures demonstrate that cinema-going remains a very popular leisure activity despite an increase in admission prices during the year by an average of 15 per cent (12.5 per cent to 25 per cent).

       The number of locally-produced films was 142 in comparison with 137 for 1979. The number of imported films, however, declined slightly from 470 to 459. While imported films continue to be popular many Western box-office successes are summarily dismissed by cinema-goers when released in Hong Kong. There were exceptions, however, such as The Empire Strikes Back and Faces of Death - both of which did extremely well at the box office. On the other hand, a relatively low-budget, locally produced film which happens to strike the right note, can also make enormous profits for its producers. Examples were The Young Master which in 27 days grossed over $11 million, and a documentary The Rising Sun on the history of China through World War II, which grossed $9.4 million.

       There were no significant developments in the local film production industry, except that the trend to produce films in Cantonese rather than in Mandarin (a trend that started in the early 70s) continued. Themewise, there were few social dramas the accent being on 'action' films and comedies.

All films intended for exhibition in Hong Kong must be submitted to the Film Censor- ship Authority. Censorship standards are drawn from ascertained community views and a panel comprising around 80 members of the public assists the Panel of Film Censors in reflecting the community views on levels of acceptability in filmed entertainment. During the year 746 films were submitted for censorship (including films intended for cine-clubs). Of the total number submitted, 328 were approved without excisions; 263 were approved after excisions and 10 were totally banned.

Printing and Publishing

The international status of Hong Kong's printing industry has grown steadily in recent years, and there are now over 2,000 printing companies in the territory employing around 22,000 people.

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Hong Kong's geographical location as a natural centre for Southeast Asian trade, the relatively low company and salary taxation, modern equipment, good communications systems and reasonable wage rates have combined to influence not only some of the large Japanese printing companies to establish operations in the territory, but also has attracted printing work from many overseas countries with Australia, Britain and the United States as the major customers.

The most modern techniques are employed. Traditional hot metal typesetting and letter- press printing methods began to give way to new technology in the late 1960s, with all of the large companies, as well as many smaller ones, adopting cold composition and good quality four-colour process printing. Highly advanced colour separation scanners on the origination side and fully automated book-binding and finishing equipment further enhance the quality of local work.

      Approximately 85,000 tonnes of printing paper is imported annually and although a portion is re-exported before processing, most of it is printed in Hong Kong.

      A number of international publishing organisations, such as Heinemann Educational Books, Oxford University Press, McGraw-Hill Far Eastern Publishers and the International Publishing Corporation, have established offices or regional headquarters in Hong Kong. Publications they produce include editions of the Far-Eastern Economic Review, Asiaweek and The Asian Wall Street Journal, together with the Asian editions of Time, Newsweek and 700,000 copies per month of Reader's Digest.

       Although Hong Kong did not completely escape the world-wide recession that has hit the printing industry, the volume of overseas trade decreased only slightly compared with the previous year, and the majority of companies remained fairly busy.

      Numerous international and local printing machinery and equipment suppliers, together with more than 200 advertising agencies, are now well-established in Hong Kong and provide the support services that are essential to an efficient printing and publishing industry.

       Among the leaders in the field of computer-assisted photo-composition are the Hong Kong Government Printing Department and the South China Morning Post. During the year, the Government Printing Department purchased a fourth generation typesetting installation - the Monophoto Lasercomp Photosetter with Multiset forward system - which is the first laser beam typesetting unit in Hong Kong. It has a capacity of 1,000 founts, each of 128 characters.

15

和三

輔軍

The Armed Services

and Auxiliary Services

隊助

ANTI-ILLEGAL immigration operations, in support of the Royal Hong Kong Police Force, continued to be the principal task of the Armed Forces in 1980. For the second year in succession, deployment of the forces was kept at a high level all year and reinforcements were necessary to strengthen the garrison.

The Royal Navy, the British Army and the Royal Air Force are all represented in the Hong Kong garrison, which at present comprises five Royal Navy patrol craft, a Gurkha engineer regiment, a Gurkha signals regiment, one United Kingdom and three Gurkha infantry battalions, one Army helicopter squadron equipped with Scout helicopters, and one Royal Air Force squadron of Wessex helicopters.

The Armed Services are stationed in Hong Kong to provide support for the civil au- thorities in maintaining security, stability and confidence. They are under the overall command of the Commander British Forces, who advises the Governor on matters affecting the security of Hong Kong and is also responsible to the Chief of Defence Staff in London.

The size and composition of the garrison, and the government's contribution towards its cost, are determined by an agreement between the Hong Kong and United Kingdom governments known as the Defence Costs Agreement (DCA). In the latter part of 1979 a thorough re-appraisal of the size and composition of the garrison was undertaken, by the Hong Kong Government and Headquarters British Forces, in the light of developments in Hong Kong since the signing of the last DCA in 1976.

       Negotiations with the British Ministry of Defence were then held in 1980 to increase the size of the garrison from four to five battalions and to provide for additional helicopters and other support units. A more detailed costing of the garrison was also undertaken and arrangements were agreed on by which the cost could be regularly updated. These negotia- tions were successfully concluded in October when a new Defence Costs Agreement was signed.

The agreement will come into effect on April 1, 1981, and will run for seven years with provision for extensions of five years. The Hong Kong contribution will continue to be 75 per cent of the cost. The additional battalion will be a Gurkha battalion in the first in- stance, units of which will be formed progressively until the full battalion comes into service in early 1982.

Naval and air reinforcements of one fast patrol boat, two hovercraft and three Scout helicopters provided to stem the dramatic increase in illegal immigration from China in 1979 remained throughout 1980. A reinforcement infantry battalion from the United Kingdom and additional infantry companies from the Gurkha battalion stationed in Brunei, strengthened the garrison for various periods.

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Royal Navy

THE ARMED SERVICES AND AUXILIARY SERVICES

The Royal Navy in Hong Kong has remained fully involved in deterring and apprehending illegal immigrants from China and in intercepting refugees from Vietnam. Under the command of the Captain-in-Charge Hong Kong, the resident forces assisting in this task manned five patrol craft (ex-TON Class minesweepers) and the naval tug Clare.

      Since late 1979, additional forces have included a fast patrol boat, two hovercraft and a small boat squadron of Royal Marines, all operating from the naval base at HMS Tamar on the north side of Hong Kong island. They carry out patrols, mainly at night, in support of the Marine Police - co-ordination with whom has been a key factor in their success.

The Captain-in-Charge also has a responsibility for search and rescue operations in the South China Sea within the Hong Kong flight information region and as far south as latitude 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 diving tasks. Their two-compartment decompression chamber is the only one of its kind in Hong Kong. With recent reinforcements, the strength of the naval establishment is now about 670, supported by some 60 locally-employed civilians. The patrol craft are manned partly by locally-entered Chinese ratings and partly by UK officers and ratings. Altogether, ashore and afloat, about 330 Chinese ratings are employed in the seaman, engineering and supply branches. A further 500 locally-recruited merchant seamen and storehousemen serve world- wide aboard nine ships of the Royal Fleet Auxiliary Service, providing logistic support to Her Majesty's Fleet.

      In addition to supporting the main operational tasks, HMS Tamar provides the facilities of a small naval base to visiting warships of several nations.

      When local operations permit, the ships of the Hong Kong Squadron visit other countries in Southeast Asia to provide ocean training for the crews, a chance to exercise with other navies, and a change from 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 the Gurkha Field Force, while logistic units are grouped as support troops under the command of the Deputy Commander British Forces.

      Infantry battalions stationed in Hong Kong during 1980 were: 1st Battalion the Queen's Own Highlanders (Seaforth and Camerons); 10th Princess Mary's Own Gurkha Rifles; 6th Queen Elizabeth's Own Gurkha Rifles; and 7th Duke of Edinburgh's Own Gurkha Rifles.

Permanently stationed in Hong Kong are the Queen's Gurkha Engineers and the Queen's Gurkha Signals. Other units include the Training Depot Brigade of Gurkhas; the Com- posite Ordinance Depot; the Gurkha Transport Regiment, which includes a maritime troop; the British Military Hospital; 50 Command Workshops Royal Electrical and Mechanical Engineers; and the Depot Hong Kong Military Service Corps. In addition, there is the Royal Hong Kong Regiment (The Volunteers) - a locally-enlisted regiment of part-time soldiers.

      The Hong Kong Military Service Corps, although a locally-enlisted force, is part of the British Army. All of its ranks are staffed by full-time regular soldiers who can serve for up to 22 years with the army. The corps which currently numbers 1,250 Chinese officers and soldiers is being expanded to provide increased support for locally-based British and Gurkha units. Its Chinese soldiers serve throughout Hong Kong in a wide variety of roles,

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such as infantrymen, military policemen, interpreters, dog-handlers, drivers, cooks, clerks, seamen and storement. The Hong Kong Military Service Corps has assumed an important role in operations against illegal immigrants and provides a valuable contribution to the garrison.

The primary roles of the army are internal security and preserving the integrity of the border - active and concurrent operational tasks carried out in support of the Royal Hong Kong Police Force. All military internal security operations are directed by the Gurkha Field Force from the joint Colony Police Military Headquarters on Hong Kong Island.

       The army has been fully engaged in anti-illegal immigrant operations throughout 1980, and two soldiers lost their lives as a direct result of this commitment.

Although the land border was made more difficult to infiltrate by the increased deploy- ment of surveillance devices, observation platforms and a much improved, illuminated border fence, soldiers continued to work long hours with little respite throughout the year. Much-needed relief was felt with the arrival of the 1st Battalion the Parachute Regiment and the 1st Battalion the Royal Regiment of Wales, from the United Kingdom, and in- dividual companies from the 10th Princess Mary's Own Gurkha Rifles, from Brunei. Units were then able to take brief periods off for rest and training.

       The high standard of individual training in Hong Kong-based units was once more demonstrated in the 1980 shooting competition at Bisley in the United Kingdom, an event in which all units of the British Army are eligible to compete. This was again won by the 2nd Battalion of the 2nd King Edward VII's Own Gurkha Rifles. Among the first seven places in the competition, six were taken by units from Hong Kong.

Royal Air Force

The headquarters of the Royal Air Force Hong Kong is at Sek Kong in the New Territories, along with the headquarters of the Gurkha Field Force. The RAF Wessex helicopters of No. 28 (Army Co-operation) Squadron operate from Sek Kong airfield and are supported by engineering and administrative squadrons, a technical supply flight and an air traffic control unit, which provides a control service for all aircraft using Sek Kong airfield and an advisory service covering the whole of the New Territories.

       The two additional RAF units in Hong Kong are the RAF Airport Unit located at the Hong Kong International Airport, Kai Tak, and an RAF Provost and Security Services unit accommodated in Blackdown Barracks, San Po Kong. In addition, a number of RAF officers and NCOs serve on the joint staffs of Headquarters British Forces.

During the past year, the speed of response and the flexibility of helicopters was fully exploited by the army, Royal Navy and Royal Hong Kong Police Force units engaged in anti-illegal immigrant operations. With much of Hong Kong's territory inaccessible except by helicopter or on foot, the capability of the Wessex helicopter to carry up to 14 troops - or 1.5 tonnes of freight - made a significant contribution to the success of security forces' operations.

At year's end, the Wessex aircraft of No. 28 (AC) Squadron were still operating at their maximum sustainable rate of effort in flying reconnaissance, troop deployment, re-supply and casualty evacuation missions from dawn until dusk, seven days a week. At night, additional aircraft and staff were on standby in case of emergencies.

Despite the many duties it was called upon to perform during 1980, the squadron con- tinued to assist military and government construction projects in remote areas by carrying men and materials to the sites. An amazing assortment of items was involved, ranging from transformers and generators, to flagpoles and concrete blocks.

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      No. 28 (AC) Squadron also remained available for search and rescue and missions and medical emergency evacuations tasks it shared with the Royal Hong Kong Auxiliary Air Force.

      But probably the most unusual role for the RAF Wessex was in fire-fighting. Flying with a bucket holding 1.5 tonnes of water suspended underneath, the helicopter is able to deliver a quick dousing to hillside fires. This capability proved invaluable during the dry season, when many potentially dangerous fires, which were inaccessible to conventional fire appliances, were extinguished before they could become a major threat to life and property.

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. Its role is primarily one of internal security but also includes reconnaissance in anti-illegal immigrant operations and assistance to other government departments in the event of natural disasters.

      The regiment has over 700 volunteers and is organised into four reconnaissance squadrons, a home guard squadron and a headquarters squadron which includes an escort and liaison troop, a boat patrol troop, the Regimental Recruit Training Wing and the normal command and administrative elements. There is also a junior leaders' squadron of 135 boys who are trained in youth activities and leadership.

      Recruiting for the regiment has remained strong as there are always many people waiting to enlist. This has allowed the regiment to be extremely selective and to maintain high standards of physical fitness and consistent attendance for training.

      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 and Hong Kong and are also attached to battalions for overseas training in Brunei, Malaysia, Australia and Fiji. In the last two years, all locally-recruited officer cadets completed a two-week course at the Royal Military Academy at Sandhurst in the United Kingdom, before receiving commissions in the regiment.

      The new headquarters building at Happy Valley, opened in early 1980, provides excellent facilities which have led to marked improvements in the standard of training.

      The regiment continued throughout 1980 to assist the police and the Regular Army in stemming the flow of illegal immigrants from China, although the commitment was mostly confined to weekends so that employers would not be unduly inconvenienced.

In October, 1980, the entire regiment was deployed on the border for one week in lieu of annual camp. The volunteers performed in a professional manner and achieved con- siderable success in apprehending illegal immigrants and people engaged in illegally aiding them. Employers were most co-operative in releasing the volunteers for these duties and a turn-out of over 95 per cent was achieved.

Royal Hong Kong Auxiliary Air Force

The Royal Hong Kong Auxiliary Air Force based at its headquarters near the main runway at Hong Kong International Airport, has an establishment of 116 volunteers and 67 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 Cessna Titan, a twin-engined Britten-Norman Islander, two Scottish Aviation Bulldog trainers and three new Aero- spatiale Dauphin twin-engined helicopters.

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An important role of the unit is internal security but it serves in a variety of other roles. It works closely with the Royal Hong Kong Police Force and, during the year, provided at least two flights per day on anti-illegal immigrant patrols as well as long-range surveillance flights to spot craft carrying Vietnamese refugees.

The unit also responded to a number of requests from the Marine Department to search for, and provide assistance to, ships in distress in the South China Sea. Among numerous other duties, the Cessna Titan and Britten-Norman Islander continued to assist the Public Works Department in aerial surveys and photography for map-making and development planning, while the Bulldogs maintained regular meteorological evaluation flights.

The auxiliary air force's three helicopters 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. During the dry season, the helicopters are frequently employed to assist in combatting fires in the countryside.

In response to an increasing demand for its services during 1980, the auxiliary air force extended its working day from nine to 17 hours, in addition to the overnight emergency stand-by shifts maintained by the volunteers.

With its flexible and economic range of aircraft and staff, the Royal Hong Kong Auxiliary Air Force is able to provide both civil and military flying services adaptable to the changing needs of Hong Kong.

Civil Aid Services

The Civil Aid Services is a disciplined volunteer service founded in 1952 and trained to assist the regular emergency services in dealing with natural disasters or other emergencies. It also plays an important role in performing crowd-control duties at public gatherings and assisting in the organisation of local Chinese festivals, charity fund-raising drives, govern- ment publicity campaigns and sports meetings.

Civil Aid Services volunteers are trained to handle casualties, conduct search and rescue operations to recover people trapped after landslides or building collapses, and to control crowds. Other operational duties which are performed regularly include patrolling country parks, fighting forest fires, carrying out mountain rescues, and life-saving.

Throughout 1979 the resources of the Civil Aid Services were heavily involved in the management of camps established for the Vietnamese refugees, and in delivering food to refugees waiting in the quarantine anchorages. However, as the inflow of Vietnamese refugees grew less in 1980, and as the management of certain camps was assumed by the United Nations High Commission for Refugees, the Civil Aid Services was able to reassess its organisation.

The adult members of the Civil Aid Services comprise 3,000 volunteers from all walks of life. On completion of their training most join a unit in the area in which they work or reside. This allows a unit to be mobilised rapidly in an emergency, and the volunteers' knowledge of their own neighbourhoods increases the effectiveness of the unit to which they belong. Units are strategically located in the heavily populated parts of urban Hong Kong, and have now been established under a New Territories Regional Command in all large towns in the New Territories. The most recent additions, the units at Sha Tin and Kwai Chung, were established during 1980.

       The Civil Aid Services has a cadet corps comprising 2,220 boys aged between 14 and 18 years. The aim of the corps is to encourage civic awareness and responsibility among the young people of Hong Kong and to help prepare them for adulthood. These objectives are

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      achieved through regular activities which include training courses, sports events, exercises in leadership and initiative, and operational duties such as patrolling country parks, life- saving, mountain rescues and crowd control.

Like their adult colleagues, Civil Aid Services cadets are recruited from the areas in which they reside or study. Their training resembles that of the adult service, and includes camping, trekking, forest conservation and mountain craft. More advanced courses are held for the older cadets in mechanical engineering, canoe fibre-glassing, and welding.

       At the age of 18, cadets must leave the corps. However, they may then join the adult branch of the Civil Aid Services, or another auxiliary or regular disciplined service.

       Adults and cadets share a 20-hectare training camp, situated on a plateau 250 metres above Castle Peak Road at Tsing Lung Tau. There is also a centre for water-based activities at Tai Tan on the Sai Kung peninsula.

Auxiliary Medical Service

The Auxiliary Medical Service, founded in 1950, is a volunteer medical service with a membership of nearly 6,000. Although some of the volunteers are doctors and nurses the majority are laymen. They are under the control of the Director of Medical and Health Services.

       In the event of an emergency, the Auxiliary Medical Service may be mobilised to augment the Medical and Health Department and the ambulance service. Members assist by treating victims on the spot, conveying casualities to hospitals, and manning aid stations and hospital units which may be established to cope with the emergency situation.

Apart from its emergency role, the Auxiliary Medical Service provides assistance at medical centres, methadone treatment clinics, inoculation posts, and hospitals. Members regularly reinforce the Fire Services Department's Ambulance Command and perform life guard and life-saving duties at Hong Kong's popular beaches and swimming pools during weekends and public holidays.

Since 1972, the permanent staff of the Auxiliary Medical Service has given first-aid training to many hundreds of government officers, especially those in the disciplined services. Each year, approximately 850 of these officers receive their first-aid certificates and a further 2,500 attend lectures on first-aid.

The Auxiliary Medical Service has played a prominent part in the care and treatment of the Vietnamese refugees, manning medical centres at the refugee camps, immunising new arrivals and providing a variety of essential health and medical services and supplies.

16

Religion and Custom

FOXX

of

AMID the rush of their busy lives, Hong Kong people allow time to follow a wide range spiritual beliefs and religious customs - all of which co-exist in absolute harmony. 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.

But while Buddhism and Taoism have, by far, the greatest number of followers, the world's other great religions are also represented by active communities. There are Christian churches, mosques, Hindu and Sikh temples, and a synagogue where believers can profess their own faith.

Buddhism and Taoism

      Hong Kong possesses more than 600 Buddhist and Taoist temples, some of which are centuries old and contain priceless antiques; others are impressive new buildings constructed along traditional Chinese architectural lines. In addition, almost every household has its ancestral shrine and countless shops have a God Shelf, supporting images of the most favoured of the hundreds of divinities.

Although Buddhism and Taoism are basically two different religions, there is a tendency among devotees to see them as similar, in that they both involve the practise of sacred rites of traditional origin. It is not unusual, therefore, to find Taoist deities in a Buddhist temple, and vice versa.

Almost all temples and monasteries are open to the public, but with religious observances also taking place in the home, many people reserve temple-going for festivals and other special occasions. In particular, the traditional rites associated with birth, marriage and death are widely observed.

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, many of the Tin Hau temples which were originally built near the sea are now some distance inland.

Other leading deities include Kwun Yum, the Buddhist Goddess of Mercy; Kwan Tai, the God of War and the source of righteousness; Pak Tai, Lord of the North and local patron of Cheung Chau Island; Hung Shing, God of the South Seas and a weather prophet; and Wong Tai Sin, after whom an area of New Kowloon is named. The temple built in his honour, around which a public housing estate has been constructed, is huge and is

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extremely popular. Dedicated to the Gods of Literary Attainment and Martial Valour, the Man Mo Temple in Hollywood Road, run by the Tung Wah Group of Hospitals, is equally popular and famous.

       One of the most important events of the year was the opening, in May, of the magnificent Temple of Ten Thousand Buddhas at Tuen Mun in the New Territories. Completed after six years' work, at a cost of about $60 million, the three-storey temple is decorated with Chinese and Thai paintings and more than 10,000 images of Buddha.

Besides providing for spiritual needs, Buddhist and Taoist organisations help to meet welfare, educational and medical needs in Hong Kong, either directly, or by contributing to charitable organisations.

      Religious studies are conducted at monasteries, nunneries and hermitages. Those at Sha Tin and Tsuen Wan are particularly popular with people living in urban areas because of their close proximity. The best-known monasteries, however, are situated in the more remote and unspoilt parts of the New Territories. One of them, 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. 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 and Taoist institutions hold gatherings in these places and the sutras are expounded.

      Traditional clan organisations continue to play an important role in the lives of villagers in the New Territories. Many villages have an ancestral hall where ancestral tablets of the clan are kept and venerated. Animism is found also, in the form of shrines or simply the appearance of joss sticks at the foot of certain rocks and trees within which spirits are believed to dwell. This practice is common among Hakka and Chiu Chow villagers.

      There are five major festivals in the Chinese calendar, all of which are statutory public holidays. The first and the most important is the Lunar New Year when gifts and visits are exchanged among friends and relatives, and children receive red packets containing '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 456,800 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 313 Catholic schools, with more than 281,000 pupils. Vocational

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schools are being increased and at present have an enrolment of almost 20,000 pupils. Catholic social and health services include 13 social centres, six hospitals, 14 hostels (with 1,289 residents), 16 clinics, three homes for the aged, two homes for the blind, and many self-help clubs and associations.

Roman Catholics in Hong Kong number about 266,800. They are served by 350 priests (133 Chinese and 217 of other nationalities); 92 Brothers (41 Chinese and 51 of other nationalities); and 777 Sisters (441 Chinese and 336 of other nationalities), belonging to 21 different religious congregations. There are 53 parishes, and 43 mass centres which are not parishes. Services are in Chinese, in general, with a few churches providing some services 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 the various groups they are organised under a body called the Central Council of the Catholic Laity. The central council includes repre- sentatives of such organisations as the long-established Society of St Vincent de Paul, the widely-spread Legion of Mary, which has units in nearly every parish, and such professional groups as the Guild of St Luke, and the Catholic Nurses Guild. A variety of youth organisa- tions, such as the Christian Life Communities, 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. In addition, the Church's interest in developing better means of communicating its message has resulted in the establishment of the Hong Kong Catholic Social Communications Office.

       Over a year ago, the Church, through the agency of Caritas-Hong Kong, set up a camp to care for Vietnamese refugees, who were arriving in great numbers. Other Catholic voluntary groups also share in this work.

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, Mon- signor Theodore Joset, built a matshed church at what is now the intersection of Wellington and Pottinger streets in the 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 consecrated 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, and present, 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 1979 Hong Kong Church Directory lists 50 Protestant denominations and independent groups with a combined membership of more than 190,000, or some four per cent of the population. These include the major traditions such as Adventist, Anglican, Alliance, Baptist, Lutheran, Methodist, Salvation Army and Pentecostal, plus the Church of Christ in China representing the Presbyterian, Congregational and Reformed traditions. These

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     churches are responsible for more than 150 primary schools, some 100 secondary schools, and three post-secondary colleges. The training of church leaders is carried out by several seminaries and Bible schools.

      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, youth centres, counselling centres and scholarship aid for students. Historically, the Salvation Army has been one of the leaders in these areas of Christian service, and this year the Army recorded the 50th anniversary of its work in Hong Kong.

Co-operative work is facilitated by two organisations, the oldest being the Hong Kong Chinese Christian Churches Union with a membership of more than 200 congregations. 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, and to stimulating local Christians to minister to the needs of the people of Hong Kong. This is achieved through several operational bodies including the Hong Kong Christian Service, the Communications Department, the Industrial Committee, and the United Christian Medical Service.

      During 1980, the churches continued to act on their concern for refugees here and abroad. They improved conditions at the Sham Shui Po Transit Centre, operated by the Hong Kong Christian Service, and continued their efforts to assist the Hong Kong Vietnamese refugee population by offering various services and contacting overseas govern- ments and agencies to step-up their resettlement programmes.

The churches also launched a special appeal to alleviate the suffering of the Kampuchean people. The $35,000 raised was used to buy food, medicine and other essentials and dis- tributed to the Kampucheans through the service agency of the World Council of Churches. In November, 1980, the Hong Kong Christian Council sponsored a four-day conference on the mission of the Church in Hong Kong in the 1980s, with delegates from all of the major Protestant churches and organisations in attendance.

The wider ecumenical movement continues to flourish in Hong Kong. The Protestant and Roman Catholic churches have a Joint Committee on Development, which plans joint action in areas of mutual concern. Church leaders again issued joint pastoral letters during the year, and various bodies of both churches co-operated on a number of mission and service projects.

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 1980, they mainly gathered for prayers at the Shelley Street Mosque on Hong Kong Island, following demolition of the Nathan Road Mosque during the year.

Built in 1896 for use by Muslim soldiers of the former Indian Army, and subsequently handed over to the Muslim community, the Nathan Road Mosque had badly deteriorated with age. Rebuilding is currently going ahead on the site and it is envisaged a beautiful new mosque will be completed early in 1982.

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A mosque situated at Wong Nai Chung Road also was demolished in December, 1978 to make way for the Aberdeen Tunnel project. However, the government made available a site in Oi Kwan Road, Morrison Hill, and a new mosque will open there in 1981. The Shelley Street Mosque, the first to be built in Hong Kong, dates back to the introduction of the Islamic faith in the 1880s. It was rebuilt in 1915.

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 represent- atives of sections of the Muslim community, is responsible for the management and maintenance of mosques and cemeteries. The trustees are also 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.

Hindu Community

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, Dussahara and Diwali.

Various linguistic groups amongst the Hindu organise additional festivals for the deities Hanuman, Devi and Ganesh, and conduct monthly bhajans for Skanda on Shashthis, the sixth day of the waxing fortnight. The Hindu community can trace its ties with Hong Kong back to early settlement.

Sikh Community

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.

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Jewish Community 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.

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Recreation and The Arts

FUNDAMENTAL changes in the leisure habits of Hong Kong people became increasingly evident in 1980. As a response to improved working hours and the rapid development of modern facilities, all sections of the population were able to take part in a richer and more diverse range of recreational and cultural activities than ever before.

       Imaginative use was made of available space, both indoors and out, for staging thousands of popular events. There were variety concerts, exhibitions and traditional Cantonese operas, performances of ballet, theatre and orchestral music often featuring inter- nationally-renowned performers.

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       The City Hall and the Hong Kong Arts Centre continued to be the focal points for artistic presentations and festivals, while the opening of multi-purpose facilities at the Tsuen Wan Town Hall and the Queen Elizabeth Stadium were timely events during the year. The Space Museum - first stage of the Tsim Sha Tsui Cultural Complex - opened to enthusiastic crowds in October.

       Through the concerted efforts of government departments, the Urban Council, the Council for Recreation and Sport and its sub-committees, governing sports bodies and voluntary associations, greater numbers of people were encouraged to spend their free time in healthy physical, recreational and sporting activities.

To ensure Hong Kong maintains the number and quality of leisure programmes its citizens have now come to expect, more facilities are under construction or are being planned. Construction progressed on the Jubilee Sports Centre at Sha Tin and on the Hung Hom Indoor Stadium, which will be one of the finest multi-purpose indoor arenas in Asia. In addition, work began on a $26 million market with recreational facilities at To Kwa Wan; land was granted for a multi-million-dollar community and sports centre at Tuen Mun; and a further private treaty land grant was being considered for a similar sports centre at Tai Po.

The Countryside

Hong Kong's easily accessible countryside is a valuable recreational resource to meet one of the principal needs of its population. Every morning, city-dwellers walk to nearby woodlands and open spaces on the urban fringes for physical exercise; every weekend and on public holidays, people of all ages ramble across the hills and through the wooded valleys of the more remote areas seeking a relaxing change of pace.

To cater for the growing interest in outdoor recreation, provision was made in 1976 for the more scenic areas of countryside to be set apart as country parks under a new Country Parks Ordinance. Since then, 21 country parks covering about 40 per cent (40,833 hectares) of Hong Kong's total land area have been designated. They were visited by an estimated eight million people in 1980.

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      The Director of Agriculture and Fisheries is the Country Parks Authority and is respon- sible for their management. Facilities provided in the parks include picnic sites with tables and benches, litter bins, children's play equipment, and fireplaces for barbecues. In the more remote areas, a campsite programme has been carried out to provide simple facilities for hikers. The newly-established 100-kilometre MacLehose Trail which traverses the New Territories from Sai Kung in the east to Tuen Mun in the west, entirely through country parks - proved to be extremely popular. In other areas, rural footpaths are being improved and waymarked, and there are nature trails with guidebooks available for people who are interested in the local flora and fauna.

A pilot Country Park Ranger service was introduced in 1980 to advise and guide visitors in the use and care of countryside recreational facilities, to protect the plants and wildlife, and to carry out the countryside educational programme.

Urban Council

The Urban Council plays an important role in community life, providing a wide range of recreational and cultural facilities in the urban areas of Hong Kong. The council's executive arm on recreation and the arts is the Cultural Services Department of the Urban Services Department. In the urban areas, this work is done under the guidance of the Urban Council, while in the New Territories, the Cultural Services Department works closely with the district advisory boards, government departments and community organisations.

      The Urban Council is responsible for managing parks, playgrounds and swimming pools in the urban area, and beaches; it also organises sports and entertainments in urban Hong Kong. Among the many projects going ahead are the provision of boating facilities at Wong Nai Chung Reservoir park, the Ko Shan Road Park in To Kwa Wan, and addi- tional grass and artificial turf football pitches. The Kowloon Park aviary - the first of its kind in Hong Kong - and the Hong Kong Tennis Centre at Wong Nai Chung Gap, were opened for public use in 1980.

With the opening of the Queen Elizabeth Stadium at Morrison Hill on Hong Kong Island, on August 27, 1980, indoor facilities of international standards became available for basketball, badminton, volleyball, table tennis, gymnastics, boxing, fencing, judo and cultural activities.

The $50 million stadium, a multi-purpose indoor sports and entertainment complex, is one of the finest in Asia and the first of its kind in Hong Kong. It is fully air-conditioned and can seat 3,500 people around its main arena. Major events held there in 1980 included the First World Cup Table Tennis Championship, the Asian Women's Basketball Cham- pionship, the International Invitational Volleyball Championship, the Asian Badminton Championship, and performances by the Sadler's Wells Royal Ballet.

The even larger and more sophisticated indoor stadium being constructed by the gov ernment at Hung Hom, is scheduled to open in 1982. Situated on the podium of the Kowloon-Canton Railway terminus, the Hung Hom Stadium will be able to accommodate about 12,500 spectators. In addition, 10 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.

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 constructed especially for recreational and cultural use. In 1980, 12 multi- purpose market buildings were being planned along these lines.

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      The Urban Council's annual sports and recreation programme, which began in 1973 with a modest budget of $200,000, was provided with $4.5 million in 1980. This covered about 11,000 events involving more than 130 sports and other recreational activities, and benefited about 1.8 million people, including the physically and mentally handicapped. The events were organised by the Cultural Services Department in co-operation with various sports bodies, the Council for Recreation and Sport, the Recreation and Sport Service and community organisations.

During the year, the Urban Council also organised 941 free outdoor entertainment programmes throughout the urban areas on both sides of the harbour. Events included variety shows, concerts, Cantonese operas, puppet shows, film shows, ballet, youth dances, folk singing and folk dances, children's parties and carnivals. About 1,221,660 people were entertained at these events which were presented in parks, playgrounds, gardens, and recreational and community halls.

An intensive 50-day Summer Fun Festival was held during the summer holidays. More than 48,000 people, mostly school children, took part in various outdoor events such as launch picnics, swimming parties, family harbour cruises, carnivals, camping activities, youth dances, film shows and children's parties.

In celebration of the annual Dragon Boat Festival, the Urban Council, in association with the Hong Kong Tourist Association, presented the 1980 International Dragon Boat Races. Sixty-eight local teams and six international teams took part in the races which were held off the East Tsim Sha Tsui waterfront.

For the Chinese Mid-Autumn Festival, the Urban Council organised three lantern carnivals - at Victoria Park and The Peak on Hong Kong Island and at Morse Park in Kowloon. Similar carnivals were also organised at district level with the council's support. These carnivals, combining both traditional and modern forms of entertainment, attracted more than 143,000 people.

A number of other events - entitled Christmas Special, New Year Fiesta, Chinese New Year Programme and April Fiesta - were organised to mark the festive seasons and special occasions throughout the year. Entertainment programmes were also regularly held at social centres and homes for the handicapped and disabled.

       Similar entertainment programmes were held in the New Territories, where about 109,525 people took part in 147 events.

Recreation and Sport Service

Significant administrative moves in 1980 reflected the rapid growth and popularity of cultural and recreational activities organised by the government, and the importance being attached to their future development.

In January, a Recreation and Culture Division was established within the Government Secretariat and planning progressed throughout the year on a proposal for the formation of a separate government department.

The new division, which is headed by a Commissioner for Recreation and Culture, took over executive control of the Recreation and Sport Service and the Music Office (from the Education Department), and assumed responsibility for the policy aspects of recreation in country parks.

Meanwhile, the everyday work of the service's headquarters and 17 district offices continued to aim at encouraging people to become more active, whether it was by taking up a sport, going on a camp, or making an excursion into the countryside. Running various types of facilities from simple gymnasia to large holiday and recreation centres also became

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increasingly important. Expertise now being gained is expected to benefit other agencies active in this field and several already look to the Recreation and Sport Service for advice and assistance.

Complementing the work of the local sports associations and organisations remained another significant aspect of the service's work and continued help was given in training instructors and officials for various sports.

      One major project during the year brought the service together with two sports bodies, the Jubilee Sports Centre, and a local company, to provide football training for some 3,000 youngsters. At the end of the course, the 150 youngsters showing the most promise were selected for advanced coaching at the Jubilee Sports Centre.

During 1980, over 556,625 people took part in 4,116 programmes offered by the service, an increase of 24 per cent over the previous year. Much of this increase was made possible by commercial sponsors, who supported 157 events. The Urban Council provided $407,000 for staging 256 programmes in conjunction with the service - attended by 51,483 people - and in the New Territories the district advisory boards provided about $600,000 for recrea- tional activities following a successful pilot scheme the previous year.

Most of the participants in RSS programmes are young working people. Activities which would involve them in even greater numbers led to the organising of the first in-house programmes for individual firms and factories in 1980, and was seen as a step forward by managements in the area of staff welfare.

Of the new facilities opened in 1980, the Lady MacLehose Holiday Village at Tsak Yue Wu, Sai Kung, was the largest. Converted from engineers' quarters constructed for the High Island Reservoir Scheme, the village has been designed for an eventual capacity of 250 campers and provides similar amenities to those of the popular Sai Kung Outdoor Recreation Centre - although the accent is more on relaxation than on strenuous activities. Another recreational bonus provided by the High Island Reservoir project was the man-made lake behind the west sea coffer dam, which the RSS has begun using to run boating courses for the public. In addition, Hong Kong's first permanent water sports centre was further developed at Tai Mei Tuk near Tai Po.

Throughout the year, good use continued to be made of the temporary sports centre at the Hung Hom car park, which began operating in 1976. Altogether, 82,699 people gathered there for 744 programmes which included dancing, fitness training, and trampolining. Consideration is now being given to providing a number of similar centres in the next few years.

While encouraging people to become more active, the service also takes an interest in seeing that they have places where they can exercise regularly. During the year talks were held with the Housing Authority to see how facilities in housing estates, especially in the rapidly-growing new towns, can be improved to provide more areas for active recreation. The service is also closely involved with schemes to make better use of Hong Kong's extensive rooftop areas. A tennis court operated by tenants, on a residential block at Lai Tak Chuen, could become the prototype for many more.

Summer Youth Programme

The 12th Summer Youth Programme, which was arranged by the Central Co-ordinating Committee for Youth Recreation, provided more than two million young people with addi- tional recreational and sporting activities from mid-June to early September. This annual programme, organised by government and non-government bodies, assisted by 50,000 young volunteers, provided over 8,000 indoor and outdoor events at a cost of $8.1 million.

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       The programme aimed to provide something for everyone with several new activities being introduced for the first time. Among the new events was a Music Camp for 200 young musicians where expert instruction was given in playing Chinese and Western instruments. However, the outdoor activities again proved to be the most popular - being made possible by a donation of $2.5 million from the Royal Hong Kong Jockey Club, and additional funds from the government, the Urban Council, private donations and the participants themselves.

       During the Chinese New Year, the Central Co-ordinating Committee for Youth Recreation arranged a further programme of recreational activities and entertainments in the districts and territory-wide.

Swimming

      Swimming is Hong Kong's most popular summer recreation and there are 40 gazetted beaches. These comprise 12 beaches on Hong Kong Island, under the Urban Council's control, and 28 in the New Territories, managed by the New Territories Services Depart- ment. The beaches have life-guards, first-aid posts, changing rooms, showers and other facilities. The Urban Services Department also manages 10 swimming pool complexes in the urban areas for the Urban Council, while the New Territories Services Department manages two in the New Territories. The tenth swimming pool complex, the Chai Wan Swimming Pool and Park, was officially opened in May.

It is estimated that 24 million people visited the beaches and 4.5 million used the swimming pools during the swimming season. Thirteen new swimming pool complexes are being planned one on Hong Kong Island, seven in Kowloon, and five in the New Territories. The addition of these facilities will help in further promoting the popular Age Group competitive swimming programme which is open to all young people under 17 years of age.

Youth Hostels

The Hong Kong Youth Hostels Association is a charitable organisation providing leisure opportunities for young people. It maintains contact with similar organisations in other parts of the world through its membership of the International Youth Hostels Federation. Membership has shown a healthy growth rate during the past few years, with the majority of hostel users being young Hong Kong people aged 14 to 28 years. The associa- tion has so far established, and operates, six hostels in various parts of the Hong Kong countryside.

The association's most significant project during the year was starting work on a hostel to be built on the heights of Mount Davis on Hong Kong Island. The site overlooks Victoria Harbour and the surrounding waters of Hong Kong to the south and west. The Hong Kong Jockey Club donated $2.7 million to finance the project. In addition, the government granted a new site for a hostel at Mong Tung Wan on Lantau Island and negotiations are continuing for the grant of a further site in one of the Sai Kung country parks.

Outward Bound

Outward Bound celebrated two major events during the year completion of its first decade in Hong Kong, and the launching of The Outward Bound Trust's sail training ship, the Ji Fung.

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The ship, an ocean-going brigantine, was built in Hong Kong with a donation of $5.5 million from the Royal Hong Kong Jockey Club. The vessel is the first of its kind to be constructed in the Far East for over 100 years, and the first sailing ship ever to be built specifically for Outward Bound purposes. Eighteen-day courses are being planned that will take 40 students at a time on voyages throughout the China Seas and to the Philippines. In the meantime, the school (at Tai Mong Tsai in the New Territories) will continue to expand its land-based courses, which provide very high standards of character training and development to people from many walks of life. Courses organised during 1980 involved the young and the old, business executives, families and the handicapped, and included such activities as rock-climbing, outdoor safety instruction, and deep-sea canoeing- all areas in which the staff at the school are particularly well qualified.

Ocean Park

     Ocean Park, a non-profit organisation, is the world's largest oceanarium, and 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 nearly eight million visitors since it opened four 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. During the year, plans were approved for installing a series of escalators on the mountainside bordering Tai Shu Wan, as an alternative means of access to the headland site where the park's three main marine exhibits are located.

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The Ocean Theatre, with a 4,000-seat auditorium features daily performances by trained dolphins, sealions and a Killer Whale, while the Wave Cove - a simulated coastline of rocks and waves allows visitors to see and feed intermingled species of seals, sealions and penguins. At the Atoll Reef, the shallows and depths of a tropical atoll are recreated, along with viewing galleries at four levels. This is the world's biggest aquarium, displaying some 300 species of marine life 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 1980 included many kinds of primates on loan from China, and the annual flower festival.

Tsim Sha Tsui Cultural Complex

Overlooking the harbour on the site of the former Kowloon-Canton Railway teminus and newly-reclaimed land at the tip of the Kowloon peninsula, the Urban Council and the government are planning a cultural complex that will become the centre of Hong Kong's cultural life.

Upon completion, its facilities for the arts will include a crescent-shaped auditoria block housing a 2,300-seat concert hall for presenting unamplified orchestral music; a 2,000-seat lyric theatre for opera, ballet and stage shows; and a 350-seat theatre-in-the- round for drama and chamber music. A nine-story tower block will accommodate the offices of the Cultural Services Department, an arts library, a restaurant, conference and lecture rooms. The complex will also include a new Museum of Art.

Space Museum

The Hong Kong Space Museum, a $60 million project which forms the first stage of the Tsim Sha Tsui Cultural Complex, was opened in October. It provides the public with an

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       exceptional entertainment venue in which knowledge of the universe, space exploration and related sciences are presented through sky shows, exhibitions, lectures in astronomy and telescopic observations.

        The museum houses a 300-seat space theatre, a general exhibition hall, a solar hall and a 200-seat lecture hall. Eight sky shows are presented every day in the space theatre by means of a Zeiss star projector and an Omnimax projection system capable of projecting 9,000 stars in various configurations and surrounding the audience with a panorama of ultra-sharp definition. This combined system is only the fifth of its kind in the world and the first to be installed outside the United States.

        The main exhibition hall on the ground floor features man's achievements in astronomy and space exploration. On the first floor, the 400-square-metre solar hall, scheduled to open in early 1981, will provide information on the structure and activities of the sun and its relationship with the earth. Visitors 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. During 1980, the Space Museum was visited by 341,950 people.

        A site to the east of the Space Museum in Salisbury Road, Kowloon, has been selected for the construction of an observatory to further boost public interest in astronomy.

Museum of Science and Technology

The Hong Kong Museum of Science and Technology project took a major step forward in early 1980 when it was included as an item in the Public Works Programme. The government has reserved a site for this project to the east of Chatham Road in Kowloon. When completed, the Museum of Science and Technology will have a total floor area of 17,000 square metres, of which at least half will be used as exhibition space. It is intended that the museum will emphasise visitor involvement and audience participation rather than become solely a depository of passive exhibits.

City Hall

       Opened in 1962, the City Hall occupies about 11,000 square metres of land in Hong Kong's Central District and consists of two separate blocks connected by a public 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 public libraries operated by the Urban Council. The headquarters of the Cultural Services Department is also located there.

        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 hub of cultural life in Hong Kong. During the year, about 641,453 people attended 1,129 performances in the concert hall, the theatre and the recital hall, and 153 exhibitions were held at the exhibition hall and exhibition gallery.

        Among the performances, the Urban Council presented 74 overseas artistes and groups, 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 the Alliance Francaise. The Urban Council also received generous help from various consulates.

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Among the internationally-acclaimed artistes who performed under the council's auspices were the pianists Andre Tchaikovsky, Peter Katin and Nicole Wickihalder; violinist Salvatore Accardo; sitarist Ravi Shankar; vocalists Joann Grillo, Richard Kness, Elly Ameling and the Scholars; cellist Rohan de Saram; guitarists Alice Artzt and Julian Byzantine; the Mexico City Philharmonic Orchestra; the Netherlands Chamber Orchestra; the California Chamber Symphony; the Gulbenkian Orchestra; soloists from the Royal Danish Ballet; the Dance Theatre of Harlem; the National Ballet Company of Portugal and the Dublin Festival Theatre Company.

The Urban Council also takes an active part in promoting local artistic talent. In July and August, the Third Chinese Opera Festival was held, featuring Peking, Chekiang and Cantonese operas in a total of 11 performances. In addition, a number of talented new- comers made their debut under the council's sponsorship in the Young Artistes Series. During the year, the Urban Council presented 56 vocal and instrumental recitals, 22 opera performances and 22 Chinese and Western dance performances.

Festival of Asian Arts

The Fifth Festival of Asian Arts was held in Hong Kong for 17 days from October 16. This major artistic event, organised by the Urban Council, attracted more than 400 participants from Australia, Bangladesh, China, India, Indonesia, Japan, Korea, New Zealand, the Philippines, Sri Lanka, Thailand and Turkey. They were joined by over 2,000 local performers.

      Altogether, 151 events covering a wide spectrum of the arts in Asia - were staged at the City Hall, the Hong Kong Space Museum and at various outdoor venues on Hong Kong Island and in Kowloon. Five exhibitions on Australian aborigines, Chinese anti- quities, the art of Chen Shu-jen, contemporary Philippine art and Singapore paintings, were also held. Well over 433,000 people were entertained by these performances at indoor and outdoor venues. Over the past five years, the festival has developed into a cultural event of considerable local and regional significance.

Hong Kong Arts Festival

During the month-long Arts Festival, held during February, Hong Kong audiences enjoyed 85 performances by a distinguished gathering of international and local artistes.

Theatrical productions were provided by the Arena Stage Company from the United States, whose two presentations You Can't Take It With You and After the Fall, played to capacity houses. The Hong Kong Repertory Theatre produced a Cantonese drama based on the well-known novel by Lao Tse, The Rickshaw-Puller Camel Cheung, while English- language presentations included reviews by well-established local drama groups and a presentation of the musical Cole.

The National Ballet of Spain delighted audiences of all ages with their rich and varied programmes of folk and regional dances.

      Of particular note were the performances by the New Zealand Symphony Orchestra. The orchestra gave 10 concerts and featured works by prominent New Zealand composers, which were played for the first time in Hong Kong.

Another highlight of the festival programme was a production of Stravinsky's The Soldier's Tale, by an entirely local cast. It featured soloists of the Hong Kong Philharmonic Orchestra and a fascinating blend of East and West in its imaginative choreography and narration.

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In addition to the many performances which attracted near-capacity audiences through- out the festival, special outdoor events were warmly welcomed by the younger generation. A choreographed disco evening opened the festival, with hundreds of young people responding to the contemporary sounds of the Hong Kong Youth Symphonic Band. A folk concert held in the grounds of the Hong Kong Polytechnic was also a resounding success and helped to widen the scope of the Arts Festival throughout the community.

Two performances given in the newly-opened Tsuen Wan Town Hall brought the festival closer to the people of the New Territories.

The festival closed on a colourful note with a traditional Chinese lantern fun fair outside the City Hall. Thousands of people enjoyed the festivities which included Chinese folk, lion and unicorn dances. The final concert, held in the City Hall Concert Hall, was given by the Hong Kong Philharmonic Orchestra.

Hong Kong Philharmonic Orchestra

During 1980 the Hong Kong Philharmonic Orchestra continued to develop towards its goal of becoming an orchestra of international standing. As early as February, critics were commenting on the continued improvement in the standard of performances and favourably comparing the orchestra to some of the international orchestras which have visited Hong Kong.

The highlight of the year was the orchestra's tour of Kuala Lumpur, Penang and Bangkok accompanying performances by London's Sadler's Wells Royal Ballet. This was the first overseas tour undertaken by the philharmonic, and its selection to accompany the Royal Ballet is an indication of its high standing in the region.

In addition to the regular subscription concerts at the City Hall throughout the year, the orchestra continued to give concerts at the Academic Community Hall in Kowloon, and at two new venues the Tsuen Wan Town Hall and the Queen Elizabeth Stadium in Wan Chai. To over 60 concerts were added eight opera performances, 17 ballet perform- ances, a series of chamber concerts and regular performances for schools. Distinguished guest artists included the pianists Walter Klein, Jean Bernard Pommier and Peter Katin, and, in addition to the orchestra's music director, Ling Tung, conductors included Brian Priestman, Rainer Miedel and Kenneth Schermerhorn.

In 1980, the orchestra's budget was increased to $8.5 million, towards which the Urban Council and the government provided grants of 42 per cent and 28 per cent, respectively. The orchestra employs 74 full-time musicians and an administrative staff of 15.

Hong Kong Chinese Orchestra

The City Hall concert hall is the regular venue of the Hong Kong Chinese Orchestra, which recorded its fourth professional season during the year. Under the direct finance and management of the Urban Council, the orchestra offered a wide variety of concerts and gave 57 performances under the baton of its music director, Ng Tai-kong, and guest conductors. Of the total number of performances, 12 were given in schools. The orchestra now has 60 full-time and 15 part-time musicians. Using traditional Chinese instruments, they have demonstrated a wealth of talent and won high acclaim from the public.

Hong Kong Repertory Theatre

The Hong Kong Repertory Theatre was transformed into a professional company with the Urban Council's sponsorship in 1977. Under the artistic direction of Chung King-fai

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in 1980, the theatre company staged 79 performances in Cantonese, one of which was a Cantonese adaptation of the musical West Side Story. The company employs 15 full-time actors and a number of freelance artistes and production staff.

Film Festival

The Fourth Hong Kong International Film Festival was held in the City Hall and the King's Theatre during April. A non-competitive event presented by the Urban Council, the festival has been accredited by the International Federation of Film Producers' Associa- tions in Paris, and has already become established as a major cultural highlight in Hong Kong. In all, 114 films from 30 countries were seen by more than 50,000 people. A further 30,000 people visited a festival exhibition of posters and photographs.

The Urban Council and local and international cultural organisations jointly presented many additional films during the year. These included a regular series of French and German films, a Japanese film exhibition, a French film festival, and an independent short films festival.

Hong Kong Arts Centre

Activities in the Hong Kong Arts Centre's auditoria, exhibition galleries, rehearsal areas, studios and libraries increased in number and diversity during the year. So great was the demand for extra rehearsal, practice and studio space that three new facilities were opened at the centre's 19-storey building on the Wan Chai waterfront. These were the Redgrave Room, intended mainly for drama and dance rehearsals and courses, and two additional well-equipped studios for art and crafts.

      The main event of the year was the Festival of Youth and the Arts, which took place during eight weeks from July to September. The festival comprised some 300 events and focused attention on the inter-relation of young people and the arts. It comprised a balanced mixture of amateur and professional events with local and overseas artists, and included a wide range of workshops and courses. A highlight of the festival was an exhibition entitled Young Art In Asia Now, which attracted a very high quality of entries from nine countries.

      From time to time the Arts Centre presents major events in other venues. One such event, and a highlight on Hong Kong's cultural calendar for the year, was the successful visit of the Boston Ballet. Presented by the Arts Centre at the Sunbeam Theatre, the company had just completed a visit to China and played to full houses in Hong Kong.

Much of the Arts Centre's work, however, is on a considerably less glamorous plane. For example, the centre's educational work has developed rapidly, and it now houses and provides a wider range of arts courses and classes than any other organisation in Hong Kong. In an average month, over 100 separate educational courses supplement the daily exhibitions and performances available throughout the year. An unsubsidised educational charity, the Hong Kong Arts Centre was opened in October, 1977.

Tsuen Wan Town Hall

The Tsuen Wan Town Hall - opened on February 7, by Her Royal Highness Princess Alexandra - is the first multi-purpose cultural complex to be built in the New Territories. Centrally located on a 5,900-square-metre site next to the Tsuen Wan Magistracy, the capital cost of the three-storey building was $25 million - of which $10 million was donated by the Royal Hong Kong Jockey Club and the rest by the government.

LEISURE

   Previous page: Two small girls share the wonder of nature at the Urban Council's 13th annual flower show in the City Hall. Above: Excitement ripples through the chill night air over Victoria Park, Causeway Bay, as revellers throng the huge Lunar New Year fair to buy blossom, citrus trees and flowering pot-plants.

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A thrilling table tennis demonstration match is watched by the Governor, Sir Murray MacLehose, during the inauguration of the Queen Elizabeth Stadium in August. Built at a cost of $50 million, the huge indoor sports and entertainment complex can be adapted for many types of events ranging from boxing to hallet.

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   Always undisputed favourite as Hong Kong's number one spectator sport, horse-racing draws enormous crowds to Royal Hong Kong Jockey Club race-meetings from September to May. During the running of events on Derby Day (above), 33,000 people packed the stands at Sha Tin.

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The main feature of the town hall is a 1,400-seat multi-purpose auditorium, similar to that of the City Hall concert hall in design, but with modifications to suit both concert and theatrical performances. Other facilities include an exhibition gallery, a cultural activities hall, a lecture room, a conference room, a music book shop and a coffee lounge.

The Tsuen Wan Town Hall is administered by the Cultural Services Department and managed by a committee comprising representatives from the government, the Tsuen Wan District Advisory Board and local community organisations. Apart from making the facilities available for hire, the management presents various cultural and artistic pro- grammes of its own. During the year, about 533,210 people attended 33 performances and 314 exhibitions in the new centre.

       To mark the opening of the new town hall, the Second Tsuen Wan Arts Festival was held there from late February to mid-March, and was very well received. Twenty-seven performances were given at the town hall, in addition to 10 outdoor programmes, four exhibitions and eight lectures. Featured on the programme were the Hong Kong Philhar- monic Orchestra, the Hong Kong Chinese Orchestra, the Hong Kong Academy Ballet Company, the New Zealand Symphony Orchestra and the Kefka Mime Troupe of West Germany. A 93 per cent attendance was recorded for the performances, while 325,000 people visited the exhibitions.

       The government plans to build cultural complexes similar to the Tsuen Wan Town Hall in the new towns of Sha Tin and Tuen Mun in the New Territories.

Music and Ballet

The Hong Kong Academy of Ballet and the Hong Kong Conservatory of Music continued to expand their activities during 1980. For the academic year starting in the autumn, the conservatory enrolled an additional 15 students, making a total of 28 students, while the academy took a further 11 students bringing its total enrolment to 18. During the year, the government agreed to support the Conservatory of Music by granting an annual subvention towards its running costs.

       A highlight of the year for the Academy of Ballet Hong Kong's first professional ballet school was its official opening in April, some 17 months after it began operating with a small nucleus of dancers.

       In addition, the Hong Kong Ballet Group performed regularly to enthusiastic audiences. Among its presentations were Coppelia in January, On Stage 1980 in May; a varied programme for the Festival of Youth and the Arts in July; and Sleeping Beauty in September.

Of particular note during the year was the study of dance activities in Hong Kong conducted by two British experts. Commissioned by the Secretary for Home Affairs, and funded by the Hong Kong Jockey Club Music Fund, the study covered all forms of dance in Hong Kong, and made recommendations for the further development of dance activities. The Programme Plan for Music and the Performing Arts was also completed in 1980. This plan was drawn up by the government, in consultation with interested unofficials and with the UMELCO Cultural Affairs Group, to review provisions for music and the per- forming arts in Hong Kong and to make recommendations on their future development.

Music Office

The Music Office, formerly known as the Music Administrator's Office, was set up in 1977 to promote music training and activities for young people. During 1980, the scope of its activities was further expanded, and 379 classes were conducted each week as part of the

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instrumental music training programme. These were held at the office's four music centres, various schools and community centres. At the end of the year, 1,624 trainees were receiving lessons every week.

Aural and theory training was also provided to prepare students for the Royal School of Music examinations and to supplement students' lessons in playing musical instruments. Special training continued to be provided for talented young musicians; 19 trainees received special instruction from the Music Office and 11 others received further training, locally and overseas, under the sponsorship of the Jockey Club Music Fund Scholarship Scheme.

The Music Office has continued to consolidate and expand the training of youth orchestras and choirs, and now runs two youth symphony orchestras, five youth Chinese orchestras, five youth symphonic bands and six choirs. They rehearsed once a week and gave a total of 30 public performances during the year.

Music for the Millions concerts given by the Music Office instructors' orchestras, youth orchestras, bands and ensembles were held at various schools, playgrounds and community halls to introduce music to new audiences and to stimulate interest in learning musical instruments. Up to the end of the year, 350 concerts were held for a combined audience of 216,000 people.

To help broaden the horizon and experience of young musicians in Hong Kong, master classes and seminars were conducted by visiting musicians. A total of 87 master classes and seminars were held for 12,200 students and music lovers.

       The office continued also to organise international exchange programmes. In July, the Long Island Youth Orchestra visited Hong Kong and gave a concert in conjunction with the Hong Kong Youth Symphony Orchestra. A highlight of the year was the highly successful tour undertaken in August by the Hong Kong Jing Ying (which comprised a chamber orchestra, a Chinese instrumental ensemble and a team of young Chinese dancers.) During the tour, the group participated in the Israel Arts Festival and the First Common- wealth Film and Television Festival in Cyprus, and gave 27 concerts at various cities in the two countries.

Also in August, the Music Office and the Recreation and Sport Service organised the First Hong Kong Youth Music Camp at the Outdoor Recreation Centre in Sai Kung. A total of 210 young musicians took part in the eight-day camp. The Third Hong Kong Youth Symphonic Band Festival was held in November before audiences in the Tsuen Wan Town Hall and the Queen Elizabeth Stadium.

Public Records Office

The Public Records Office of Hong Kong houses records of the Hong Kong Government which are of permanent value for official reference and private research. It is located in Murray Road, Central District.

       Since its inception in 1972, the holdings have grown rapidly and now occupy over 5,500 metres of shelving. Most of the records are official in origin, but transfers have also been accepted from non-government sources such as religious institutions, societies and individuals.

       The library, which consists largely of official publications, includes an extensive collection of English-language newspapers dating from the middle of the 19th century, as well as valuable collections of maps, photographs, manuscripts and microfilm copies of documents relating to Hong Kong. Public access to the library is unrestricted, however, formal approval is required to gain access to the official archives.

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The storage capacity of the main repository has now become exhausted and temporary sub-offices have had to be established, pending the provision of further permanent accommodation. During the year, an additional sub-office was opened with a capacity of 1,000 metres of shelving.

Hong Kong Museum of Art

Housed in the high block of the City Hall, the Hong Kong Museum of Art presented 12 exhibitions in 1980. These featured Chinese and contemporary local art, as well as art from France, Britain, Singapore and the Philippines. A children's art exhibition organised by the museum added a bright note in the year's programme. Co-sponsors of these events included the Association of Hong Kong Children's Art Exhibitions, the Consulate-General of France, the British Council, the Min Chiu Society, the Museum of Philippine Art and the Ministry of Culture of Singapore.

       During the year, 277,530 people visited the exhibitions - an average of 898 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 1980 included a calligraphy album by Wu Li, a watercolour album by Tingqua, a portrait by Lamqua, sketches by George Chinnery and Auguste Borget, and many fine mandarin robes of the mid-Qing (Ch'ing) Dynasty (1644-1911 ad).

Hong Kong Museum of History

During 1980, the Museum of History at Star House in Kowloon organised a series of special thematic exhibitions. Along with the regular standing displays, these exhibitions attracted 428,383 visitors. The Lei Cheng Uk Branch Museum and the Han Tomb received an additional 46,359 visitors.

One of the most important exhibitions of the year was entitled Rescuing the Past: Salvage Archaeology in Hong Kong. This exhibition paid unexpected dividends when members of the public were encouraged to donate to the museum recent archaeological finds ranging from Tang (T'ang) Dynasty ceramics (618-907 AD) to Song (Sung) Dynasty coins (960-1279 AD). Another special exhibition was Hong Kong's Transport: Past, Present and Future, which traced the progress of transport up the Mass Transit Railway.

The museum participated in the Hong Kong in London Festival in which its scale model of the famous Chinese junk, the Keying, was exhibited. Later, the model was displayed for several months in the Exeter Maritime Museum.

       Significant additions to the museum's collection during the year included Birds of Asia, containing more than 500 hand-coloured lithographs by John Gould (1804-1881); a fine and comprehensive collection of Hong Kong butterflies, and seven breech-loading British cannons of the Victorian period.

The archive on Hong Kong's historic buildings and archaeological sites continued its steady growth and is now a major source of data.

With the co-operation of the Prisons Department, the work of restoring the perimeter walls and staircases of the fort at Tung Chung on Lantau Island, was completed. Ex- cavation of the foundations of interior structures in the Qing (Ch'ing) Dynasty fort on Tung Lung Island continued.

At the end of the year, the list of monuments gazetted under the Antiquities and Monuments Ordinance had increased to nine.

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RECREATION AND THE ARTS

The Urban Council and the Cultural Services Department operate 20 public libraries in various districts in Hong Kong, Kowloon and the New Territories. In addition, there are four mobile libraries, four gramophone record listening services and one video-cassette library.

In 1980, the Urban Council opened a new library in North Point; the Cultural Services Department opened a small library in Tai O; a mobile library was equipped for work in the New Territories; a listening library was added to the Kwai Chung Public Library; and the government agreed in principle to a major expansion programme for public libraries in the New Territories.

At the same time, a three-year post-graduate course in librarianship was set up by the extra-mural department of the University of Hong Kong, with the assistance of the Urban Council. This course will produce 24 qualified librarians each year and represents a significant advance in two-language librarianship in Southeast Asia.

During the year, 125,043 new books were acquired by the two library systems, bringing the total stock to 1.19 million volumes. The libraries also subscribed to 2,901 newspapers and periodicals. Other material included 3,659 reels of microfilm, 336 video cassettes, 1,414 sets of slides, and 11,706 gramophone records and cassette tapes. A total of 4,258 new publications were registered under the Books Registration Ordinance.

       Some 86,747 people registered as new members in 1980, bringing the total number of library card-holders to 954,059. More than 5.19 million books were issued for home reading and a further 5.41 million were read in the libraries.

       With the installation of hi-fi equipment and pianos in the extension activities halls of some of the libraries, record concerts and other musical performances were regularly arranged. Other extension activities included book exhibitions, story hours, film shows, interest-group sessions and competitions. During the year, 954,603 people participated in the various programmes organised in the public libraries.

The British Council

The council's popular English language courses showed continued growth during the year, with almost 25,000 students enrolling for general English instruction. Specialist language courses were arranged by the Professional and Company English Unit for officers of government departments, and the staff of many large companies, hotels and banks. In- service refresher courses were also held, in conjunction with the Education Department, for English-language teachers in primary and secondary schools.

       The council organised visits to England for 59 people on scholarships, bursaries and visitorships, and brought 18 specialists from Britain to give advice to local institutions in such varied fields as dance, arts administration and fund-raising.

The Chung Ying Theatre, set up by the council in 1979, was involved in a wide and increasing variety of theatrical activities. Of particular acclaim, were performances of The Three Cent Opera and School for Clowns in the City Hall Theatre, and the staging of The Merchant of Venice and Romeo and Juliet in secondary schools. At the end of the year, the company mounted the first musical adaptation of George Orwell's Animal Farm in the new Queen Elizabeth Stadium.

       Further highlights of the year's work were the exhibitions Colour in Modern British Painting, which was mounted in the City Hall, and Contemporary British Pottery, in the Hong Kong Arts Centre.

18

The Environment

PROGRESS continued to be made during the year to develop an overall environmental protection strategy recognising the special needs and problems of Hong Kong. In partic- ular, significant advances were made in the fields of legislation and the organisation of resources the two key components in the programme.

At year's end, two new ordinances - dealing with solid waste, and water pollution - had been enacted, and three more were being prepared.

An important feature of the new environmental protection legislation is the adoption of an environmental management approach under which permitted emissions will be con- sidered in relation to the surrounding environment. The aim of this is to match pollutants to the ability of an area to absorb or disperse them safely. This will achieve the desired degree of environmental protection at a much lower cost than if the common approach of using blanket controls was followed.

However, since this approach requires a more detailed knowledge of the environment in different parts of Hong Kong, its implementation will take time. For this reason, the new environmental protection ordinances are in a form that will enable specific regulations to be incorporated in subsidiary legislation later on. When such regulations have been for- mulated they will then be subject to the various consultative procedures.

Legislation: Establishing a Framework

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      Environmental protection legislation - both approved, and proposed has been divided into five ordinances covering waste disposal, air and water pollution, noise abatement and environmental impact assessment of large new projects. Each ordinance is intended to establish a framework on which to base regulations, and has as a general principle the control of polluting emissions by varying licence conditions according to individual cir- cumstances, rather than the imposition of uniform standards.

The Waste Disposal Ordinance was enacted in February, 1980, and improves on pre- vious provisions for the collection and disposal of waste, as well as specifying the statutory authorities responsible for each function. Certain sections of the ordinance, relating mainly to waste collection, were brought into operation during the year. Gradual introduction of the remaining provisions will be carried out in phases, as staff become available for their implementation. Also, work began on formulating regulations under the ordinance to provide for the safe disposal of toxic and dangerous wastes.

The Water Pollution Control Ordinance, enacted in July, 1980, will ensure the proper control of pollution levels in local waters. Again, the basic theme of the ordinance was flexibility rather than the imposition of blanket controls and, with this in view, it provides for Hong Kong to be divided into zones - each with specific water quality objectives set

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according to the beneficial uses of the water in these areas. In effect, consideration will now be given to the particular purposes for which the waters in each zone should be used -- such as swimming, commercial fisheries, irrigation or other activities.

Considerable research will be carried out prior to the introduction of specific controls to ensure that licence conditions to be imposed will achieve the environmental quality objectives for each area.

The Air Pollution Control Bill, which will be presented to the Legislature in 1981, is designed to deal with air pollutants emitted from stationary sources. Basically, it retains the controls over dust, grit and smoke provided for under the Clean Air Ordinance, but extends the scope to cover toxic emissions and pollutants from the wide range of local industries which have emerged and developed in the past decade, or which can be expected in Hong Kong in the future.

The approach of the bill is to define air quality objectives in which maximum desirable concentrations of air pollutants, such as sulphur oxides and particulate matter, will be identified. It is intended, in the implementation of the ordinance, that the best practicable means in air pollution technology should be employed. Under the ordinance a system of licensing will be applied to new developments which fall into a special category termed 'specified processes'. As with the other environmental protection ordinances, this legisla- tion is enabling and provides a framework within which subsequent regulations specifying maximum emission limits, fuel composition and other standards or codes of practice, can be prepared and implemented.

      After a great deal of preparatory work and discussion with industry, drafting began on the Noise Control Bill which will cover various forms of noise including construction and industrial noise. The bill will be the subject of further discussion and consultation as it evolves towards a final version.

Drafting of the Environmental Impact Assessment Bill is progressing at a slower pace since valuable experience is being accumulated from the present non-statutory arrange- ments in which the developers of major industrial projects, such as the new power stations and cement plants, have been asked to provide an impact assessment in a form, and to a timetable, laid down by the government.

Achieving Pollution Control

The Environment Branch of the Government Secretariat is the principal policy-making and co-ordinating body responsible for land, transport and environmental protection matters, including the structure being developed in the government for pollution control. Resources for environmental protection are organised into a two-tier structure comprising a central nucleus of specialists, the Environmental Protection Unit (EPU), and a series of control units in executive departments of the government.

The EPU was established in 1977, within the Environment Branch, as a small unit responsible for developing policy and formulating legislation on environmental protection. Now, its expansion plans are moving ahead and 1980 saw the recruitment of scientists and technicians to 34 new posts, the purchase of pollution monitoring equipment - including a dedicated mini-computer to analyse data from automatic environmental sensors - and a move to larger accommodation with laboratory space. As well as developing a policy for environmental protection and overseeing the implementation of environmental legislation, its work involves establishing quality objectives, monitoring long-term trends in environ- mental quality, and assessing and advising on the impact of major new developments.

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As a further measure, pollution control units are to be established in appropriate govern- ment departments to enforce regulations, issue licences and provide surveillance and control for individual discharges or emissions. Generally, their responsibility will be to ensure that the level of pollutants in any area does not result in a breach of the quality objectives specified for that area, and to see that licence conditions are set accordingly.

These developments are part of the phased build-up of staff and resources for environ- mental protection which, over the next three years, will involve an estimated annual expenditure of approximately $15 million. In addition, there will be a total expenditure of around $6 million on equipment.

Considerable importance is being attached to investigational work which will establish the factors affecting pollution locally. Only through detailed research will it be possible to avoid the error of adopting pollution control measures which may have worked elsewhere, but may be quite inappropriate for Hong Kong.

Protecting the Environment

      An important part of the strategy for environmental protection in Hong Kong is ensuring that projects which could be potential sources of pollution incorporate adequate control measures at the design stage. This is achieved through the submission, by the developer, of detailed environmental impact assessments which are then examined by government departments, the Environmental Protection Unit and the Environmental Protection Ad- visory Committee (EPCOM).

Such assessments continued to be submitted during the year by the companies involved in constructing Hong Kong's two new power stations one at Tuen Mun in the New Territories, and the other on Lamma Island - which are due to begin operation in 1982. Reports on aqueous and aerial emissions and the visual impact of the stations were among the assessments to be examined.

Discussions in EPCOM - and with the companies concerned over the possible effects of emissions from the Tap Shek Kok power station on the Tuen Mun urban area, led to an increase in the chimney height to improve plume dispersion. Construction of the chimney was completed in mid-1980 and, at 215 metres, it is presently the tallest concrete structure in Southeast Asia.

Moving into another area, the EPU and relevant government departments began work in 1980 on environmental studies in and around Junk Bay, which will be developed to provide industrial and residential land on the eastern side of Kowloon. The investigations will determine the capacity of the Junk Bay environment, particularly the air and water, to absorb or disperse polluting emissions and to establish environmental quality objectives compatible with the expected development.

To achieve these aims, a range of control strategies will be explored for domestic, indus- trial and agricultural emissions. The study will comprise data gathering, measurement and analysis and, taking full account of seasonal variations, is expected to last approximately two years.

Consultative Process

In order to balance the protection of the environment with the demands of the economy and social and public needs, the government has made a firm commitment to the process of consultation.

The principal consultative forum on environmental matters is the Environmental Pro- tection Advisory Committee (EPCOM). In the decade since its formation, EPCOM has

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evolved to meet the changing circumstances of Hong Kong. It advises the Secretary for the Environment on all aspects of environmental protection, and particularly ensures that the new environmental legislation is appropriate to Hong Kong in balancing the need for environmental improvement against the requirement that industry remains viable and competitive.

     In 1980, EPCOM comprised 13 members, the majority of whom were prominent citizens including representatives of three major industrial organisations: the Chinese Manufac- turers' Association, the Federation of Hong Kong Industries, and the Hong Kong General Chamber of Commerce. At the beginning of the year, four special committees were es- tablished to examine specific areas of environmental protection and pollution, in detail, and to obtain a wider representation of views from experts, academics, members of the public, industrial organisations and government departments. The four committees were concerned with air, noise, land and water pollution, and legislation.

During the year, EPCOM considered a wide variety of reports, from landscaping aspects of new town developments in the New Territories, to Hong Kong's contribution to the World Conservation Strategy. The special committees were concerned with more specific subjects such as agricultural waste; marine pollution control; the effects of aircraft noise on schools; the control of construction noise; the lead content of petrol; the principles of air quality management; and a report on suspected air pollution incidents which affected school children in the industrial area of Kwun Tong in June, 1980.

A provision for consultations on environmental protection regulations and related matters is incorporated in all of the new ordinances and requires the Secretary for the Environment to consult EPCOM on all proposed regulations, environmental quality ob- jectives and standards. In addition, draft legislation is discussed with any organisations whose members may be affected by its enactment.

In 1980, the various special committees and major industrial organisations were involved in discussions on the Waste Disposal Ordinance, the Water Pollution Control Ordinance, the draft Air Pollution Control Bill, and the drafting of proposals for the Noise Control Bill. Whenever possible, changes were made to ensure that the legislation was workable, without detracting from its intended purpose of protecting the environment. Any residual problems were then put to EPCOM for its advice, before the proposals were finalised for submission to normal legislative procedures.

Noise Pollution

The legislation implemented in July, 1979, to control construction noise between 7 p.m. and 7 a.m. every day, and all day on Sundays and public holidays, was supplemented during the year by the issue of a non-statutory set of guiding principles. These explained the calcula- tion of permissible noise levels for construction sites, based on the sensitivity of the area, the type of equipment used, and the times of operation.

      The Director of Public Works is authorised, under the Summary Offences (Permitted Work) Regulations, to issue permitted work permits for a total period of 12 months to allow contractors to use powered mechanical equipment - other than for piling - during otherwise prohibited hours. Exemptions for longer periods, or for piling, require an order made by the Governor in Council.

A liaison group comprising representatives of the government and the Building Con- tractors' Association continued to meet to monitor progress, examine the guiding principles and to discuss the drafting of the sections on construction noise in the proposed Noise Control Bill.

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Under the Public Health and Urban Services Ordinance the Urban Services Depart- ment continued to control noise nuisances caused by air-conditioning and ventilating systems. A total of 295 complaints were received and investigated and these led to the issue of 73 abatement notices all of which 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 diluting effect of strong 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 expan- sion 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 a sewage treatment works. These will be capable of producing good quality effluent suited to the pollution absorption capacity of the surrounding waters. In areas where bathing and recreation are important, sewage will be 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 also in hand to extend existing short outfalls to deeper water for better dispersion and dilution.

The Water Pollution Control Ordinance will enable the waters of Hong Kong to 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 handling. For each of these activities a set of water quality criteria will be prescribed, and the pollu- tion control authority within the Public Works Department will implement controls over individual discharges.

       The Pollution Control Unit of the Marine Department is responsible for dealing with offshore oil pollution, the collection of floating refuse, and control of all dumping activities in Hong Kong waters.

        The unit maintains surveillance on all aspects of oil transfer to and from ships; it inspects tankers discharging fuel oil at the various terminals, and the terminais also, in an effort to detect or prevent any spillages. Since the unit's establishment, numerous pollution offenders have been successfully prosecuted; the maximum penalty being a fine of $200,000. The costs incurred in clearing or dispersing oil pollution are recovered from offenders.

        To combat oil pollution, the unit has at its disposal a launch equipped with modern pollution control facilities, a shallow-draught launch, stocks of low-toxicity chemical dis- persants, an oil containment boom, polyurethane absorbents and an oil skimmer. In an emergency, 20 government launches fitted with oil pollution equipment can be mobilised and deployed at short notice.

       As a result of Hong Kong agreeing to participate in three international conventions on marine pollution, the use of oil dispersant and surface tension modifier chemicals has been restricted since January 1, 1979, to approved types with a low toxicity to marine life. All users of these chemicals in Hong Kong waters are required to obtain a licence issued by the Director of Marine.

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Floating refuse continued to be a problem and, during the year, 4,339 tonnes of floating refuse was collected from the harbour - including that retrieved by the free service which collects domestic refuse from ocean-going vessels.

Following extensive trials with two mechanised, floating refuse collectors, plans are now well advanced to mechanise the entire system over a five-year period. Initially, the new craft will cover only the present areas of collection, which extend from Tsuen Wan in the west, through Victoria Harbour to Junk Bay and Chai Wan in the east, and also to Aberdeen Harbour. However, in view of the rate of industrial and urban development in Hong Kong, plans are in hand to provide harbour cleansing services at Cheung Chau, Tuen Mun, and later at Sha Tin. Phased mechanisation of the present manual methods of collection will in future provide a more efficient service with higher cost effectiveness.

      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 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 enactment of the Waste Disposal Ordinance in 1980 provided statutory powers over waste collection and disposal to the Director of Public Works, the Director of Agriculture and Fisheries, the Director of Urban Services (and his authority in the New Territories, the Director of New Territories Services).

      Of the 2,010,600 tonnes of waste generated in the territory this year, by far the greatest amount - 1,130,000 tonnes - was disposed of at controlled tips. There are limits on extending this method of disposal, however, due to the competing demands for land use in Hong Kong. As a means of greatly helping to reduce this problem, consideration is now being given to the use of controlled tipping to create development land.

      Incineration, which accounted for 809,000 tonnes of waste disposal over the year, is considered less desirable than controlled tipping because of higher costs and the associated problems of air pollution. Two recently-built waste treatment processes the composting plant at Chai Wan and the high-density baling plant as Sai Tso Wan - processed approxi- mately 64,000 tonnes of waste between them. The processed waste was disposed of primarily at controlled tips.

In 1979, the New Territories Services Department initiated a pilot scheme at Ta Kwu Ling for the collection and transportation of agricultural waste to a controlled tip. This scheme achieved some success by early 1980 and it has now been extended to the Hung Shui Kiu area where river and stream pollution from agricultural waste is particularly acute.

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       A Waste Management Policy Committee was established during the year to advise the Secretary for the Environment on disposal strategy. Aimed at ensuring the adequate avail- ability of disposal facilities, the committee will be placing particular emphasis on the use of methods which are both environmentally acceptable and cost effective. It is envisaged that much of the committee's activity will provide the basis for the Waste Disposal Plan which is a statutory requirement under the new legislation.

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) Regula- tions. The division is responsible for the control of smoke, grit and dust from stationary sources such as fuel-using plants.

The division requires that plans and specifications for the installation or alteration of furnaces, ovens, chimneys or flues are submitted to it to ensure that the design is up to appropriate standards. It organises inspections, investigates complaints, gives technical advice to industry and takes legal action against persistent offenders.

During the year, the division processed 356 sets of plans and specifications under the Clean Air (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations, including plans for two 215-metre-high, multi-flue chimneys for the new power-generating plants at Tap Shek Kok and Po Lo Tsui. The division also offered advice to a number of developers at Tai Po Industrial Estate and on Lamma Island, on the installation of suitable pollution control equipment.

In addition, the division investigated 1,100 air pollution complaints, several of which originated from other forms of environmental pollution such as the emission of malodorous gases from public sewers and nullahs.

There were 40 prosecutions under the Clean Air Ordinance and its subsidiary regulations against persistent offenders, resulting in 40 convictions with fines ranging from $250 to $2,500.

The four daily monitoring stations continued to monitor atmospheric pollution levels. The 12-month mean average of sulphur dioxide readings at Hung Hom, Queen Elizabeth Hospital, Sham Shui Po and Central Market stations were, respectively, 69 ug/m3, 98 ug/m3, 31 ug/m3 and 44 ug/m3, and the corresponding smoke density readings were 25 ug/m3, 32 ug/m3, 91 ug/m3 and 49 ug/m3. The highest daily reading of sulphur dioxide registered during the year was 494 ug/m3 which was very much below the maximum guideline of 1,310 ug/m3 recommended by the former Advisory Committee on Air Pollution.

From June onwards, staff of the division and students of the University of Hong Kong jointly conducted an 11-week survey of air pollution levels. They monitored concentrations of sulphur dioxide, oxides of nitrogen, carbon monoxide and lead particulates at different altitudes in busy streets and in industrial areas.

During the year, suspected air pollution incidents affecting school children were reported in a number of different locations. In May, pupils from a college and two schools in the Kwai Chung area complained of various degrees of discomfort, ranging from eye-burn to nausea, and attributed the symptoms to the presence of an irritant gas. Staff from the Labour and Fire Services departments made immediate investigations. They undertook a thorough search for chemical spillage and inspected factories and dumping areas. However, no definite source was found.

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REFERENCE LIBRARY

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      Equally inconclusive was a widespread search, in June, for the cause of an incident which affected school children in the Sau Mau Ping and Lam Tin areas in the industrial district of Kwun Tong. Complaints by pupils of feeling ill, apparently due to obnoxious odours, were received over a period of three days. This led to a thorough search and tests in the area for possible sources. A special task force was mobilised from the staff of various government departments - including the Government Chemist, and the Medical and Health, Fire Services, Labour and Urban Services departments - and co-ordinated by the En- vironment Branch. However, the task force uncovered no evidence to confidently pinpoint any harmful substance in the air. The pupils' symptoms of illness were not sustained and various hypotheses of mass hysteria, triggered off by a transient bad odour, were advanced to explain the incident.

As a result of the investigations in Kwai Chung and Kwun Tong, the government is planning to streamline the response procedures in cases of this nature, as well as under- taking long-term studies of the areas to enable better controls and easier identification of sources should future incidents occur.

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.

About three-quarters of Hong Kong's land area consists of 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 make the countryside more beautiful but are important in the management of water catchments.

The Agriculture and Fisheries Department is the principal government agency responsible for conserving the territory's countryside. The Country Parks Ordinance, which came into effect in early 1976, provides for the designation, control and management of the most important areas of countryside as country parks, and enables them to be developed for recreational purposes. It also gives particular protection to vegetation and wildlife. There are now 21 country parks throughout Hong Kong, covering about 40 per cent of the land area.

Within these country parks, recreational amenities include picnic and barbecue places, waymarked walks, shelters, toilets, and information and educational services. Road access is also being improved to enable park staff to deal more effectively with fires and litter the most serious problems created by visitors.

The department also has the responsibility for protecting the flora and fauna throughout the whole of Hong Kong. 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. While most of the countryside has been covered by some form of prohibition on the hunting of birds, wild animals and the carrying of firearms, an amendment to the Wild Animals Protection Ordinance in 1980, provided further protection for Hong Kong's fauna by imposing a ban on hunting by all members of the public. This ban was instituted for reasons of public safety, due to the growing popularity of the countryside for recrea- tional purposes, and the spread of urbanisation - both leaving very few areas, if any, that are suitable for hunting.

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Overall enforcement of the ordinance is carried out by six full-time game wardens, supported by 253 government officials with the powers of game wardens, and by 23 Honorary Game Wardens. Justices of the Peace and police officers also have the statutory powers of game wardens.

In addition to 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, 1980, 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. Following 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 alternately 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).

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 establishing hardy pines with some deciduous trees. While Hong Kong does possess some deposits of iron, lead, zinc, tungsten, beryl and graphite, they have been mined only 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 re- claimed 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 fishponds have been successfully established in areas that once were mud flats, mangrove swamp or salt-water rice paddies.

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Climate Although Hong Kong lies in the tropics it has a remarkably temperate climate for nearly half the year. The best months are usually November and December when there are pleasant breezes and comfortable temperatures, with plenty of sunshine. During January and February there is relatively more cloud and occasional cold fronts followed by cold dry northerly winds which, at times, can be too cold for comfort. It is not uncommon then for temperatures to drop below 10°C, and ice is occasionally reported in the New Territories. March and April can also be very pleasant except for occasional spells of fog, drizzle and high humidity which can be particularly unpleasant on high ground exposed to the south-east.

      May and June are hot and humid with frequent showers and thunderstorms occurring mostly in the mornings; afternoon temperatures often exceed 32°C. At night, temperatures generally remain around 26°C with high humidity.

There is usually a fine spell in early July which may last for one or two weeks.

An average of 13 tropical cyclones of various intensities enter the South China Sea each year, mostly between July and October. About five of them become typhoons that is, the wind speeds near the centres exceed 64 knots. Fully-developed tropical cyclones generally have relatively calm eyes averaging 50 kilometres in diameter surrounded by walls of cloud about 20 kilometres thick. Inside the cloud walls the strongest winds rotate anti-clockwise and the heaviest rain occurs. Outside them, bands of cloud and rain spiral in some 500 to 1,000 kilometres towards the centre.

Tropical cyclones occur in the Pacific and South China Sea throughout the year but none has ever caused gales in Hong Kong during the period from December to April. When tropical cyclone is about 700-1,000 kilometres south-east of Hong Kong the weather is usually fine and exceptionally hot. Thunderstorms sometimes occur in the evenings. If the centre moves closer to Hong Kong, the wind increases and rain can become heavy and widespread. Heavy rain from tropical cyclones lasts from one to three days and sometimes can cause more damage than the winds.

      The mean annual rainfall is 2,246 millimetres, of which about 80 per cent falls between May and September. The wettest month is June when rain occurs about two days out of three and the average monthly rainfall is 457.5 millimetres. The driest month is December when the monthly average is only 25.9 millimetres and 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.

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, hail- storms and snow are rare. Although the lowest temperature recorded at the Royal Observatory in Tsim Sha Tsui was 0°C, sub-zero temperatures are recorded at times at higher elevations and in the New Territories.

The Year's Weather

The year 1980 was generally hot and dry with the level of rainfall reaching only 1,710.6 millimetres compared with a normal of 2,246.4 mm. To a large extent this shortfall was due to the remarkably hot and dry weather experienced in the month of June. The number of tropical cyclones in the western North Pacific and China Seas was nearly normal and

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storm signals were hoisted on 10 occasions, including seven on weekends. However, none of the storms came very close to Hong Kong and winds only once reached gale force for a few hours during Typhoon Joe.

       The winter of 1979-80 was exceptionally dry. The total rainfall for the four months from October, 1979, to January, 1980, amounted to only 15.7 mm, making it the driest four- month period on record. Although temperatures were very cold at the end of January, the month as a whole was milder than usual. An intense cold front on January 29 cleared the mist and fog and caused an extremely sharp drop in temperature of more than 19°C in 40 hours. On the morning of January 31, frost was reported on Tai Mo Shan and a minimum temperature of -3.7°C was recorded there.

Although the mean temperature for February was only 1.9°C below normal, the first 10 days of the month were very cold with daily minimum temperatures ranging from 5.5°C to 11.4°C. The cold spell which commenced on January 30 lasted for 12 days. The mean tem- perature for this period was 9.9°C making it the coldest 12-day period since January, 1900. February 9 was the coldest day of the year the Observatory recording a drop to 5.5°C, which was the lowest temperature recorded since December 14, 1975. The cold weather killed about 1,000 tonnes of fresh water fish in the New Territories. Thunderstorms in February are rare in Hong Kong and have not occurred at the Royal Observatory since 1966. However, there were thunderstorms on four of the last six days of February, 1980. The thunderstorms in the early morning of February 27 were associated with the arrival of a cold front coupled with perturbations in the upper westerly winds. They were accom- panied by violent northwesterly squalls. A Chinese passenger ferry, the Shuguang No. 401, capsized on the river Tan Jiang about 80 nautical miles west of Hong Kong, while hail never before recorded in February was reported by a number of people residing in the Kwai Chung and Repulse Bay areas.

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March was warmer, cloudier and more humid than normal. The most significant weather event in March was the hail which fell on March 5 and 6 - setting a new record of three hailstorms in nine days. On March 5, residents in Yuen Long, Kam Tin, Tuen Mun, Tsuen Wan, Tai Mo Shan and Tai Po reported hail between 12.05 p.m. and 12.45 p.m. About 400 hectares of vegetable crops - representing 12 per cent of Hong Kong's total vegetable production were damaged by the hailstones (the largest of which measured 30 mm in diameter). Hail was against reported shortly after 5 a.m. on March 6 at Kam Tin, Lam Tsuen and Yuen Chau Tsai. Coastal fog from March 1 to 9, resulted in Waglan Island reporting its longest period of consecutive foggy days since 1953. Fog was also reported inside Victoria Harbour on six of these days. A 3,139-tonne container ship ran aground in thick fog off Pak Sha Wan, Lei Yue Mun, on the morning of March 4, while 33 aircraft were diverted from Hong Kong during the entire foggy period.

April was less sunny and cloudier than usual. Widespread thunderstorms and heavy showers occurred on April 13, and mist and fog developed between April 19 to 22. The Strong Monsoon Signal was hoisted on five occasions during the month.

May was cooler with less sunshine than usual. The showers and thunderstorms on the first 11 days of the month brought 224.3 mm of rain - representing more than 80 per cent of the month's total rainfall. Severe Tropical Storm Georgia passed about 90 nautical miles to the east-southeast of Hong Kong on May 23, bringing gales (which were experienced offshore and on hilltops), however, Georgia did not bring much rain to Hong Kong.

       During most of June, Hong Kong was under the influence of a pronounced and per- sistent ridge of high pressure from the Pacific anticyclone and, as a result, the month was much sunnier and hotter than usual. Maximum temperatures were above 33°C every day

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between June 17 and 24 and above 34°C between June 19 and 22. The hottest day of the month was June 22 when the maximum temperature reached 34.8°C. This was the second highest temperature on record for June (the highest being 35.6°C recorded on June 1, 1963). A spell of eight consecutive days with maximum temperatures above 33°C, and four above 34°C, was unprecedented in any June since records began to be taken in 1884. The month had only 12 days with measurable rain and this was also a new record for June. The month's total rainfall of 150.9 mm (306.6 mm below normal) ranks as the tenth lowest on record for June. Severe Tropical Storm Herbert was the only tropical cyclone over the western North Pacific and the South China Sea during the month. Herbert passed-by about 300 nautical miles from Hong Kong on June 28, bringing some showers and thunderstorms but causing little damage in the territory.

     July was hotter and wetter than usual. The month's total rainfall of 454.4 mm was 42 per cent above normal, while the maximum temperature of 35°C (recorded on July 10), was the highest temperature of the year. Local storm warning signals were hoisted for four tropical cyclones. One of these was Severe Tropical Storm Ida, which was closest to Hong Kong on July 11 and brought 190.8 mm of rain. Another tropical storm, south of Hong Kong, caused strong winds on July 18. The only gale signals of the year were hoisted for 13 hours 25 minutes while Hong Kong was lashed by Typhoon Joe, which passed about 190 nautical miles to the south-southwest on July 22. Typhoon Joe claimed two lives in an accident on a construction site in Kwai Chung, and one man was reported missing from a sinking junk off Aberdeen; 59 people were injured. Typhoon Joe passed over the Leizhou (Luichow) Peninsula and, according to Chinese newspapers, the typhoon was the strongest experienced in the region in 26 years. Typhoon Kim which devastated the northern Philippines on July 25, came closest to Hong Kong on July 27 but caused only slight damage.

August was hotter and drier than usual. The month's mean temperature of 28.8°C was the fourth highest on record for August and the month's total rainfall of 250 mm was 170.2 mm below average. Thunderstorms and heavy rain on August 7 resulted in serious flooding in Tsuen Wan and Kwai Chung. A tropical depression passed to the southwest on August 18 without causing any damage.

September was drier and cloudier than usual. Seven tropical cyclones developed over the western North Pacific and the South China Sea during the month, but none came very close to Hong Kong. Typhoon Ruth struck Hainan Dao (Hainan Island) on September 15, reached the coast of Vietnam near Hanoi on September 16, and became the worst typhoon to hit Thanh Hoa province in 30 years. Typhoon Percy passed over the southern tip of Taiwan close to Hengchun on September 18 and crossed into China near Shantou (Swatow). The last three months of the year were all sunnier, drier and warmer than normal. There was a prolonged fine spell from September 29 until October 17. Tropical Storm Cary churned across the South China Sea between October 29 and November 2 but did not affect Hong Kong.

     November's mean temperature of 22.3°C was the seventh highest since 1884. The con- tinental anticyclone dominated China throughout the month, leading to generally fine and sunny weather in Hong Kong. There was only one day (December 7), with measurable rain and the month's total rainfall was only 0.7 mm.

The Royal Observatory

The Royal Observatory is the department of the government responsible for meteorology, geophysics and related sciences. Its most important function is to provide weather

SAI KUNG

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Sea, sky and serenity

Sai Kung provides a striking change to the clamour and crowds of urban Hong Kong. With its refreshing lack of con- formity, in a place more usually renowned for its dynamism and industry, this beauti ful eastern part of the New Territories has become increasingly synonymous with leisure, tranquillity, and getting-away- from-it-all. Extending for over 200 square kilometres of breathtaking vistras, quiet mountain trails and picturesque villages. the region forms a natural back garden to the throbbing streets of Hong Kong Island and Kowloon. On weekends and holidays it is a magnet, drawing pleasure-seekers to a variety of popular sites for picnicking. hiking, climbing, camping, swimming. wind-surfing, sailing and canoeing. Nearly 50 per cent of its land area now lies within two country parks, and for enthusiastic walkers there is the start of the 100- kilometre MacLehose Trail. Yet, 10 years ago, Sai Kung was largely a forgotten place: two mountainous peninsulas and an assortment of islands; sparsely inhabited, and served by the narrow roads, few facilities and simple ferries required by a dwindling rural population. The develop- ment of High Island reservoir was the catalyst for major change. Local, and world, attention was suddenly focused on the carving of a huge freshwater reservoir from the sea. Better access roads and amenities followed, and the hinterland was rediscovered by a population thirsty not only for water, but for recreational outlets and low-density housing. With the excep- tion of peripheral Junk Bay - already the site of Hong Kong's heaviest industries. and next 'new town' - Sai Kung has been zoned to retain its individuality, and its role as a natural counterbalance to an increasingly urbanised lifestyle.

Previous page: From the air, rehousing for villagers displaced by high Island Reservoir gives Sai Kung town an unusually uniform appearance. Left: A boatman navigates Sai Kung harbour; deserted Sheung Yiu village in quiet decay; youngsters pass the time tadpoleing at Wong Chuk Yeung vallage.

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   Site selected, a camping party sets about pitching tents on picturesque Yim Tin Tsai, one of the Inner Port Shelter islands. Incongruously, the allure of this lovely and peaceful island remains apparent mainly to outsiders: three-quarters of its population stay elsewhere.

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.........While his companion heads off to refuel, a model aircraft enthusiast tries to coax his tempera- mental machine into the air at Kei Ling Ha, a popular picnic and camping site on the shores of Three Fathoms Cove.

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services and tropical cyclone warnings for the public and for international shipping and aviation.

       Routine weather forecasts are prepared and broadcast over radio and television at frequent intervals every day. Warnings of fire danger or hazardous weather - such as thunderstorms, heavy rain, and low temperatures are issued whenever necessary. Special marine forecasts are issued for ships in the China Seas and for fishermen and yachtsmen in coastal areas.

Services for aviation are provided by the Airport Meteorological Office. All aircraft leaving Hong Kong are given briefings, forecasts and weather charts for various flight levels. A continuous watch is kept on the weather at other airports and along air routes. Every year, more than 20 tropical cyclones affect the western North Pacific and China Seas; some of them develop winds of hurricane force (64 knots or more), and are then called typhoons. Warnings and forecasts are issued every three hours for ships at sea, for shipping companies and for airlines. Objective forecasts of tropical cyclone movements are made by computer. Whenever tropical cyclones approach Hong Kong, warnings and statements are issued at frequent intervals and are widely distributed by visual signals, telephone, radio and television.

       In order to provide these services the observatory collects about 15,000 weather reports each day from land stations, ships and aircraft. Coded messages are analysed by the observatory's computer and exchanged automatically with neighbouring countries. The observatory has accumulated a wide variety of historical weather records, mostly on computer tape and microfilm. These are used to provide data for a variety of organisations involved in planning, research, insurance, industry, and teaching, both in Hong Kong and overseas.

       The most significant event of 1980 was the opening of the observatory's new satellite ground station on January 24. Satellites have revolutionised tropical meteorology and the observatory's new ground station is proving just how much, as it receives pictures from the Japanese geostationary meteorological satellite (GMS), every three hours. The pictures are enlarged and enhanced by a special computer to the extent that even bush fires in Australia can be identified. It is now possible from these satellite pictures to locate the centre, and estimate the maximum winds in a tropical cyclone, almost as accurately as from a reconnaissance aircraft.

        Another important advance in 1980 was the modernisation of the observatory's time service. Until 1966, the observatory provided time signals derived from pendulum clocks. A thermostatically controlled crystal clock was installed in 1966, but in 1980 the observatory acquired its first caesium beam atomic clock. Time signals from the new clock are accurate within a few microseconds and should not only improve navigation but also provide a valuable calibration standard for Hong Kong's expanding watch and clock industry. Six pip time signals are broadcast from the observatory headquarters every 15 minutes and relayed by radio and TV stations.

Instruments and Observations

The observatory operates six meteorological stations in Hong Kong and a network of special observing stations manned mainly by volunteers. These include more than 100 rainfall stations and two tide gauges. The observatory also provides instruments for about 40 selected ships. A radar station on the top of Tate's Cairn (580 metres), is connected to displays in the observatory and at the Hong Kong International Airport and is used for tracking tropical cyclones and thunderstorms to a radius of about 400 kilometres.

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At the end of the year, the observatory was awaiting delivery of two new acoustic radars (or sodars), which will be installed early in 1981 at Chek Lap Kok Meteorological Station and at the Lok On Pai Desalting Plant to investigate turbulence in connection with the feasibility study for the proposed new airport. These instruments emit sound upwards and record the echoes caused by temperature and wind irregularities in the atmosphere. Geomagnetic observations continued to be made, in a joint project with the University of Hong Kong, at a geomagnetic station on Tate's Cairn. The observatory also monitors radioactivity. Routine measurements of the beta and gamma radioactivity and the levels of sulphur dioxide and particulates are made at King's Park Meteorological Station in Kowloon.

      In another development during the year, a new network of three short-period seismo- meters was connected to a central microcomputer at the Royal Observatory. The system is now capable of detecting tremors throughout Southeast Asia and computing the epicentres of earthquakes automatically. The system located blasting on Lamma Island and Tap Shek Kok with an accuracy of about 200 metres; it has also detected some weak earthquakes in the sea-bed south of Lamma Island. An earthquake that it located in the Taiwan Strait at 0238 GMT on May 8, 1980, was felt by residents in Hong Kong.

Long-period seismographs are operated in a cellar at the Royal Observatory and record tremors from all over the world. The largest earthquake recorded was of Magnitude 8 on the Richter scale and occurred in the New Hebrides on July 17, 1980.

      An eclipse of the sun on February 16, 1980, aroused considerable interest and the Hong Kong Amateur Astronomical Society organised a scientific expedition to Kunming, in China, to make observations.

Research

One of the objectives of research at the Royal Observatory is to investigate aspects of the local climate and to present the results in a convenient manner. Altogether, about 230 technical publications have been written on a wide range of subjects.

Research is also directed at improving the observatory's own forecasts and improving its instruments. In 1980, there was an investigation of the relationship between windshear actually experienced by aircraft and the windshear measured by the five anemometers located round the Hong Kong International Airport. A comparison was made between measurements by radiosondes used in China with those used in Hong Kong.

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Population

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THE total estimated population at the end of 1980 was 5,147,900, comprising 2,693,400 males and 2,454,500 females. This represents an increase of 29 per cent on the 1970 popula- tion estimate of 3,995,400.

The average annual rate of increase over the 10-year period was 2.6 per cent, with the rate fluctuating year by year because of changes in migration flow- particularly during the past three years, in which there has been large-scale immigration from China - both legal and illegal - and a massive inflow of boat refugees from Vietnam. This is seen more dramatically in a breakdown of the growth rate by years: the average annual growth rate from 1971 to 1977 being only 1.9 per cent, while that of the years 1978, 1979, and 1980 was 3.4 per cent, 6.3 per cent and 2.6 per cent, respectively.

At the same time, the rate of natural increase dropped steadily over the decade of the 70s from 14.9 to 12.0 per thousand. This was the result of the birth rate declining from 20 per thousand in 1970 to 16.9 per thousand in 1980, and the death rate remaining stable at about five per thousand.

In the early part 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 later part, the decrease was mainly the result of fewer births. In recent years, later marriages also have contributed to this trend, along with improve- ments 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 25 to 34 years will increase substantially from 387,800 in 1980 to 538,400 by 1990. 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 1,060 square kilometres, is one of the most densely- populated places in the world. The overall density per square kilometre at the end of 1980 was 4,852. But this figure obscures the wide variety of density between 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. This will, of course, change with the development of new towns in the New Territories. Six new towns are currently being developed to alleviate high density 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 still young in 1980 about 37 per cent were below the age of 20. But the median age of the population was 25.1, compared with 21.2 10 years ago. The age distribution of the population has also changed considerably. In 1970, 37.1

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     per cent of the population was under 15; in 1980 the figure was 25.3 per cent. The relative figure for those aged 65 and above has risen from 4.3 per cent to 6.1 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 58.6 per cent to 68.6 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 708 per thousand in 1970, to 458 per thousand in 1980.

People in Hong Kong live longer nowadays. Between 1970 and 1980, the expectation of life, at birth, increased by four per cent for males and by about three per cent for females. The life expectancy for those born in 1980 is 70.1 years for males and 76.8 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 1980, the estimated number of non-Hong Kong Com- monwealth citizens residing either permanently or temporarily in Hong Kong was 65,000. These comprised: British 22,200 (excluding members of the Armed Forces); Indian 14,000; Malaysian 8,700; Australian 7,600; Singaporean 4,300; Canadian 3,700; and other Com- monwealth countries 4,500. The estimate for non-Commonwealth alien permanent and temporary residents was 66,800. Of these, the largest groups were: Filipino 11,600; American 11,100; Pakistani 7,700; Japanese 7,000; Thai 7,700; Portuguese 6,500; In- donesian 3,100; German 2,000; Korean 1,800; French 1,400 and Dutch 1,100.

About 57 per cent of the population was born in Hong Kong. Most of these people, and the greater part of the immigrant Chinese population, originated from Guangdong (Kwangtung) Province in China. The Cantonese group forms the largest community while the second largest group is Sze Yap, followed by the Chiu Chow group. The remaining Chinese population have their origins in other parts 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, 48,271 marriages were performed in the registries and 2,574 at licensed places of worship. The total of 50,845 was 5,623 more than in 1979. All records are maintained at the principal marriage registry at the City Hall.

       During 1980, group marriages - with up to six couples being married at the same time - were introduced at some registries. These proved popular and helped meet the increasing demand for marriage registrations. Arrangements for weekend marriage registrations were extended and these were also popular.

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 other marriages

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known as 'modern marriages' provided, in each case, they were entered into before October 7, 1971. The ordinance also makes provision for the post-registration of these marriages, and for their dissolution. During the year, 43 customary and 21 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 period and the expiration of one year from the date of birth, a fee of $5 is charged. During the year, 85,406 live births and 25,987 deaths were registered, compared with 82,175 and 26,179, respectively, in 1979. The figures, when adjusted for under-registration, gave a natural increase in population for 1980 of approximately 60,112.

        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, 1,412 births were post-registered.

       The Immigration Department is responsible for the registration of births, deaths and marriages in Hong Kong.

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Natural History

     DESPITE its small area and one of the highest population densities in the world, Hong Kong manages to accommodate a rich and surprisingly diverse flora and fauna. To a large extent, this is due to the rapid spread of urban development being offset by three principal deterrents - the territory's generally hilly topography, and the designation of water catch- ment areas and Country Parks. By constraining building sites, for the most part, to shores, foothills and reclamations, they have enabled large expanses of the countryside to be preserved - and with it, a wide variety of the indigenous animal and plant life.

       Most of Hong Kong's countryside is additionally protected by the Forests and Country- side Ordinance, the Wild Animals Protection Ordinance, and the Country Parks Ordinance. During the year, the Wild Animals Protection Ordinance was amended to totally ban game hunting from January 1, 1981. Underlying the ban is the increased urbanisation of parts of the New Territories, the designation of most of the scenic hill lands as Country Parks, and the growth of the population - all of which have left very few areas, if any, where a firearm may be discharged without the risk of endangering human life.

Wildlife

The Mai Po Marshes, which form a restricted area under the Wild Animals Protection Ordinance, is an important attraction for Hong Kong birdwatchers. The 380 hectares of mudflats, shrimp ponds and dwarf mangrove form a very rich bird habitat, particularly for ducks and waders. Of more than 250 species of birds which have been recorded in this marshy area, at least 110 are rarely, if ever, seen elsewhere in the territory.

       Yim Tso Ha, also restricted, is the largest egretry in Hong Kong and five species nest there regularly - the Chinese Pond Heron, Night Heron, Cattle Egret, Little Egret, and the rare Swinhoe's Egret. About 1,000 egrets can be found there during the nesting season between April and September. There is one other egretry in Hong Kong, but it is not visited by the Swinhoe's Egret or Night Heron.

Traditional fung shui woods near the older villages and temples are becoming increasing- ly scarce, yet they continue to provide a very important habitat for many birds. Recent new sightings in wooded 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 animals, the Chinese Pangolin (Scaly Anteater) is seen oc- casionally. 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 which escaped from captivity, and they will 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

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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 protection by law, but their numbers have increased to such an extent that the damage they have done to crops has resulted in bitter complaints from farmers. Consequently, 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, however, 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. Also, there are various species of terrapins and turtles, although none is common. Most of the local snakes are non-poisonous and death from snake bite is a very rare occurrence. 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.

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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.

There are more than 200 recorded species and forms of colourful butterflies, several of which, 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. All are described and illustrated in the first major reference work on local butterflies This is Hong Kong: Butterflies by G. and B. Johnston (Hong Kong Government Printer) - which was published during the year.

www.

Of the local plant bugs, two are especially noted for their colour and shape. They are the rare and beautifully-spotted Tea Bug, which has been recorded only 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

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NATURAL HISTORY

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. A new publication, Hong Kong Freshwater Fishes by Dr I. J. Hodgkiss (Urban Council series), lists the many species to be found in local streams and reservoirs.

       In 1980, a 6.6 metre-long whale shark a species rarely seen in Hong Kong waters - was landed at Aberdeen by a local fisherman. The shark was caught near Pratas Island in the South China Sea. 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 potentially dangerous, are the Hammer- head 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.

Flora

The Hong Kong Herbarium is more than 100 years old. This government institution contains a collection of about 33,600 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, located at the headquarters of the Agriculture and Fisheries Department in the Canton Road Government Offices in Kowloon, is open to the public.

Situated near the northern limit of the distribution of tropical Asian flora, the plants of Hong Kong are large in number and variety. It is estimated that there are about 2,600 species of vascular plants, both native and introduced. These are listed in the Check List of Hong Kong Plants (Agriculture and Fisheries Department).

Before the introduction of conservation measures, the hillsides were becoming increasing- ly bare of trees as a result of cutting, burning and exposure to the elements. On most the only cover was coarse grass or scrub. Now many slopes, particularly those in the water catchment areas, have been planted 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 increasing amounts of their leisure time in the countryside.

Remnants of the original forest cover either scrub forest or well-developed woodlands - are still to be found in steep ravines. These have survived the destructive influences of man and fire through their precipitous topography and moist winter microclimate. It is in such places that many of the more interesting plants grow. Small areas of well-grown wood- lands can also be found near the older villages and temples. These fung shui, or sacred, groves owe their existence to the protection afforded by generations of villagers in accord- ance with ancient tradition.

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       On muddy sea shores, an interesting type of vegetation known as the Dwarf Mangrove Association is occasionally found; there are also 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. The orchid species are described and illustrated in Hong Kong Orchids by G. Barretto and J. L. Young Saye (Urban Council series), published during the year.

        Many villagers have a good working knowledge of the usefulness of some local plants. Aquilaria 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. For example, two plant species previously unrecorded in Hong Kong, and which are now represented in the herbarium collection, are Haloragis micrantha and Scutellaria barbata.

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 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, is surrounded by symmetrical flower beds containing roses, medicinal plants and annual bedding plants. In two nearby green- houses, tropical shade-loving plants are cultivated. The gardens contain a wide range of plants from various climates, but it is planned to concentrate more on native species in future.

       Zoological exhibits in the gardens comprise both animals and birds. They include Jaguars, Tree Kangaroos, Orang-utans, Caracal Lynx, Crested Porcupines, Common Squirrel Monkeys, Tree Squirrels, Siamangs, Golden Agoutis, Celebes Black Apes, White-cheeked Crested Gibbons, Common Marmosets and Red Mantle Saddleback 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, in- cluding 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.

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History

RESOURCEFUL, optimistic, and confident, Hong Kong continues to display the dynamic drive which has enabled it to make rapid economic and social progress.

      Throughout the 139 years since its founding as a British settlement, the events which have most dramatically affected Hong Kong have been the result of external influences beyond its control. Always, Hong Kong has faced its problems with characteristic resilience and forbearing.

       The year 1980 has been one of reassessment and adjustment to the massive inflow of immigrants from China - both legal and illegal - and boat refugees from Vietnam, which occupied so much attention the previous year.

Demonstrating, once more, an amazing ability to absorb great numbers of people and to prosper as a leading manufacturing and commercial centre, the impact nevertheless reached into all corners of life. Increased pressures were widely felt in the areas of housing, road congestion, public transport, and medical and other social services and facilities. Planners, amongst others, felt the frustrations keenly.

       But Hong Kong has faced similar challenges before: three large surges of immigration have occurred in the past 36 years, increasing the population more than threefold. The third wave, with large numbers of illegal immigrants attempting to enter (and which began in 1978), continued until late October, 1980, and required special efforts from the security forces to contain it.

Paradoxically, in its early days Hong Kong was not viewed as a desirable place to in- habit. Prior to its cession to Britain by China, under the Convention of Chuanbi (Chuenpi) in January, 1841, the territory was regarded as at best an uninviting prospect for settle- ment. Mountainous and deficient in fertile land and water, it possessed only one natural asset, its fine and sheltered anchorage. Largely the reason for the British presence, Victoria Harbour was strategically located on the trade routes of the Far East, and it was soon to become the hub of a burgeoning entrepot trade with China.

Hong Kong's second asset - its people - then began to appear and, by their industry and business acumen, to develop the infrastructure and services which have allowed the small territory to thrive. Today, the harbour, supplemented by a modern international airport, is one of the busiest in the world, and an enterprising and industrious population is fashioning an increasingly more substantial and impressive quality of life.

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

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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 beginning 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 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 thousands 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.

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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.

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A Place from Which to Trade

HISTORY

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 con- flicting 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 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 Commissioner 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 agreement 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 ordered to Peking in chains. Palmerston was equally dissatisfied with Hong Kong, which

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      he contemptuously described as 'a barren island with hardly a house upon it', and refused to accept it as the island station that had been demanded as an alternative to a 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), signed on August 29, 1842. In the meantime, the Whig Government in England had fallen and, in 1841, the new Tory Foreign Secretary, Lord Aberdeen, issued revised instructions to Pottinger, dropping the demand for an island.

Pottinger, who had returned to Hong Kong during the winter lull in the campaign, was pleased with the progress of the new settlement and, in the Treaty of 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 territory's earliest 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. There, Chinese authority was permitted to continue 'except insofar as may be inconsistent with the military requirements for the defence of Hong Kong'. However, an Order in Council of December 27, 1898, revoked this clause and the British unilaterally took over Kowloon City. Some desultory opposition when the British took over the New Territories in March, 1899, soon dis- appeared. The area was declared part of the colony but was administered separately from the urban area.

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Initial Growth

HISTORY

The new colony did not go well at first. It attracted unruly elements, while 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 popula- tion 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 as the currency unit in 1862. In 1935, when China went off silver, Hong Kong had to follow suit with an equivalent 'managed' dollar.

Hong Kong's administration followed the normal Crown colony pattern, with a governor nominated by Whitehall and nominated Executive and Legislative Councils with official majorities. The first unofficial members of the Legislative Council were nominated in 1850, and the first Chinese in 1880; the first unofficial members of the Executive Council appeared in 1896, and the first Chinese in 1926. Two electoral bodies the Hong Kong General Chamber of Commerce and the Unofficial Justices of the Peace allowed, from 1885 onwards, to nominate a member of the Legislative Council.

       The British residents pressed strongly for self-government on a number of occasions, but the home government consistently refused to allow the Chinese majority to be subject to the control of a small European minority.

were each

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 admin- istrations 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.

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      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. Later, the voluntary schools mainly run by missionaries were included in a grant scheme in 1873. The College of Medicine for the Chinese, founded in 1887, developed into the University of Hong Kong in 1911 and offered arts, engineering and medical faculties.

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       After the Chinese Revolution of 1911, which overthrew the Manchu Dynasty, there was a long period of unrest in China and large numbers of refugees found shelter in the colony. The agitation continued after Chinese participation in World War I brought in its train strong nationalist and anti-foreign sentiment - inspired both by disappointment over failure at the Versailles peace conference to regain the German concessions in

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      Shandong (Shantung), and by the post-war radicalism of the Kuomintang. The Chinese sought to abolish all foreign treaty privileges in China. Foreign goods were boycotted and the 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, though not before causing considerable disruption in Hong Kong. Britain, with the largest foreign stake in China, was at that time the main target of the anti-foreign sentiment. But in this odious role she was soon to be replaced by Japan.

The 1930s and World War II

During World I, Japan presented her '21 demands' to China. Then, 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 Hong Kong. It was estimated that some 100,000 refugees 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 people were sleeping in the streets.

       Japan entered World War II with an attack on Pearl Harbour on December 7, 1941, and an attack at approximately the same time on Hong Kong (December 8, 1941, local time). The Japanese attacked from the mainland and, subsequently, the British were forced to retire from the New Territories and Kowloon to Hong Kong Island. After a week of stubborn resistance on the island, the defenders including the local Volunteer Corps - were overwhelmed and Hong Kong surrendered on Christmas Day. The Japanese occupation lasted for three years and seven months.

       Trade virtually disappeared, currency lost its value, 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 com- munity remained loyal to the allied cause. Chinese guerillas operated in the New Terri- tories and escaping allied personnel were assisted by the rural population.

       Soon after news of the Japanese surrender was received on August 14, 1945, a pro- visional government was set up by the Colonial Secretary, Mr (later Sir) Frank Gimson. Rear Admiral Sir Cecil Harcourt arrived, on August 30, with units of the British Pacific Fleet to establish a temporary military government. Civil government was formally restored on May 1, 1946, when Sir Mark Young resumed his interrupted governorship.

The Post-War Years

Following the Japanese surrender, Chinese civilians - many of whom had moved into China during the war returned at the rate of 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.

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About three quarters of a million refugees - mainly from Guangdong (Kwangtung) province, Shanghai and other commercial centres entered the territory 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 over five million.

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      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 43 to 55 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. Throughout 1980, public housing flats were being constructed at an average rate of one every 7.5 minutes each 12-hour working day, every day of the year - and it is planned to continue providing about 35,000 flats a year under present conditions. At the end of 1980, the number of public housing estates had grown to 100. The Hong Kong Housing Society, a government-aided voluntary organisation, provides subsidised housing for a further 132,000 people.

A milestone in Hong Kong's housing development was reached in January, 1980, when tenants moved into the first flats completed under the government-funded Home Ownership Scheme. Well-appointed and self-contained, the flats are sold on attractive terms to tenants who have financially outgrown public housing, and to families on a limited income in the private sector. The higher standard of living they provide for people unable to afford open market rents, is an impressive example of the progress that has been achieved since the territory's public housing programme began 26 years ago. Development of the Home Ownership Scheme is being planned in phases to produce some 45,200 flats by 1988.

Expenditure on education rose to $2,943 million in the 1980-1 financial year and rep- resented 16.3 per cent of the total government budget. By late 1980 there were 2,694 educa- tion institutes, including those run by the government, with a total enrolment of 1.4 million. Since 1979, the government has provided nine years of free education for every child.

In the field of social welfare, such major advances have been made by both the govern- ment and voluntary agencies, that expenditure in the past decade has increased twenty- fold. Reviewed annually to keep abreast of changing needs, the social welfare programme included among its priorities in 1980: the development of social security in the form of cash benefits and emergency relief for victims of natural disasters; group and community services with an emphasis on young people; social rehabilitation of young law-breakers and probationers; family services for individuals and families with problems; facilities for the physically and mentally disabled to help integrate them into the community; and im- provements in services for the elderly.

The medical and health services are also undergoing vigorous development programmes which, by the end of the decade, will provide six more hospitals of over 1,000 beds each and 20 additional clinics and polyclinics. A dental school was opened during the year and a second medical school is scheduled to be opened in 1982. Medical and hospital care is available to everyone at a nominal cost - but fees can be waived when necessary.

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 steadily improved. In September, 1980, the minimum age for employment in both the industrial and non-industrial sectors was raised from 14 years to 15.

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       New roads, tunnels and flyovers have completely transformed road travel throughout the territory in the post-war era and modern, multi-lane highways are opening up many

new areas.

But, undoubtedly, the major transport event of 1980 was completion of the underground Mass Transit Railway's 15.6-kilometre initial system. Opened by Her Royal Highness Princess Alexandra on February 12, the railway was enthusiastically welcomed by the travelling public. Each day, approximately 400,000 people travelled between 15 stations stretching from Kwun Tong to Tsim Sha Tsui in Kowloon, and under the harbour to the Central District on Hong Kong Island, and an extension of the system to the growing industrial town of Tsuen Wan was underway and scheduled for completion by the end of 1982.

An announcement that the government had decided to construct an MTR Island line was warmly received as the year ended. The new line, to run from Western Market to Chai Wan on Hong Kong Island, will cost an estimated $7,000 million (at 1980 prices) and is expected to be fully operational by the end of 1986.

22

Constitution and Administration

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UR PH

      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, and in 1979 his term of office was further extended to April, 1982. All Bills passed by the Legislative Council must have the Governor's assent before they become law. With strictly defined exceptions, he is respon- sible for every executive act of the government and consequently exerts considerable influ- ence on the way Hong Kong is run.

The Governor is appointed by the Queen and derives his authority from the Letters Patent passed under the Great Seal of the United Kingdom. The Letters Patent create the Office of Governor and Commander-in-Chief of Hong Kong, and require him to observe its law and instructions given to him by the Queen or the 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, the Governor's relationship to them, and powers and procedures relating to the passage of legislation and Colonial Regulations.

Executive Council

The Executive Council consists of five ex-officio members (the Chief Secretary, the 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 instructions of the Secretary of State. On September 1, 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.

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The council usually meets once a week throughout the year. Its function is to advise the Governor, who is required by the Royal Instructions to consult it on all important matters of policy, subject to certain exceptions such as in 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 refusa! 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 - is also the statutory authority for making regulations, rules and orders under a number of ordinances. The Governor in Council also considers appeals, petitions and objections under ordinances which confer such a statutory right of appeal.

Legislative Council

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In August, 1980, the maximum potential membership of the Legislative Council was in- creased from 50 to 54 comprising 27 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 27 unofficial members. The present actual membership is 22 official and 26 unofficial members, which leaves room for expansion within the ap- proved 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 may also be made by the Parliament of the United Kingdom and by the Queen by Order in Council, in exercise either of prerogative powers or of powers conferred by an English Act of Parliament.

The 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.

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The Finance Committee of the Legislative Council consists of the Chief Secretary (chairman), the Financial Secretary, the Director of Public Works and all the unofficial members of the council. It meets in private to scrutinise public expenditure, both at special meetings held in March at which Members examine the draft estimates of expenditure - and at regular meetings held throughout the year to consider requests for financial com- mitments and the supplementary provision of funds. It has two sub-committees, the Es- tablishment Sub-Committee and the Public Works Sub-Committee. The Establishment Sub-Committee examines staffing proposals in detail, while the Public Works Sub-Com- mittee reviews the progress and priority of capital works in the Public Works programme. 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 Unofficial Members of the council. Its task is to consider reports of the Director of Audit

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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) perform significant roles in the administration of Hong Kong. They assist in the shaping of govern- ment policies, enact legislation, and bring about improvements in public administration. As leading members of the community they are knowledgeable on many aspects of both local and international affairs. In addition to membership of the two councils, they serve individually throughout the extensive network of government and community committees and boards that are so important in Hong Kong. Because of their extensive experience and local interests, their views carry considerable weight. Over recent years they have been selected from an increasingly 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. Each year, hundreds of individual grievances or appeals against government decisions or proposed new legislation are dealt with and, where necessary, rectified. In carrying out this function, unofficial members have access to government files and senior officials and, when appropriate, may challenge established procedures and policies. Alternatively, they can escalate any issue which they think is sufficiently important by referring it to either of the two councils. A special UMELCO Police Group of unofficials, 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 also draft legislation in informal groups set up for this purpose. When neces- sary, these groups have thorough discussions with official representatives and representa- tives of public bodies. Public views are taken into account during these deliberations, which not infrequently result in amendments to proposed policies and legislation.

Besides holding periodic formal meetings with the heads of government policy branches and departments, a substantial amount of informal, day-to-day, contact takes place between unofficial members and government officials. During these contacts, views are exchanged on matters which are brought to their attention by members of the public.

Urban Council

The Urban Council is a body corporate and derives its authority from the Urban Council Ordinance. It is responsible for managing its own finances and is the only body taking part in the business of government in Hong Kong to consist solely of members of the public. The council meets in public once a month, but most of its business is decided by the standing committee of the whole council, nine select committees and 24 sub-committees, boards and panels.

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The Urban Council consists of 24 members 12 appointed by the Governor, and 12 elected. The term of office for both appointed and elected members is four years, but a

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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 the office.

The Urban Council's responsibilities are restricted to Hong Kong Island, Kowloon and New Kowloon, which have a combined 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; the management and control of civic centres, museums, football stadia, markets, abattoirs, hawkers, cemeteries, crematoria and funeral parlours. Other responsibilities include managing 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 1980-1 financial year, the council worked to an overall budget of $771 million.

District Administration

Wide-ranging changes in district administration were put forward in a Green Paper entitled A Pattern of District Administration in Hong Kong, which was published by the government on June 6, 1980. Covering both the urban areas and New Territories, its proposals were aimed principally at promoting a greater degree of co-ordination and responsiveness by the administration at district level, and increasing the involvement of residents in each district.

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The paper proposed that these aims should be achieved, in the New Territories, by the introduction of elections on a constituency basis to produce an elected element in the existing District Advisory Boards (which will be re-named District Boards). In the urban area, the District Management Committee system, which has been set up on an experi- mental basis in the Kwun Tong district, would be extended to other districts. District Boards, including unofficial membership, would also be established in the urban area and seats would be reserved for Urban Councillors to participate in their work.

Turning to the Urban Council, the Green Paper proposed that each councillor should be elected by a constituency; for this purpose, the urban area would be divided into eight districts, one of which would have one elected member and the rest, two - returning a total of 15 elected Councillors. The number of appointed councillors would also be increased to 15. The Green Paper further proposed that the electoral franchise for the New Territories District Boards and the Urban Council elections should include all adults over the age of 21 years, with at least three years residence in Hong Kong.

The Green Paper has provoked considerable interest among the people of Hong Kong. Its main proposals have been generally understood and constructive suggestions have been received from a wide cross-section of the community.

Advisory Committees

The network of government advisory boards and committees plays an essential role in the efficient administration of Hong Kong, and there are now more than 360 in existence. A distinctive feature of the system of government in the territory, the purpose of these bodies

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is to see that, after consultation with interested groups in the community, the government is provided with the best possible advice on which to base its decisions. As a consequence, nearly all government departments are assisted by advisory bodies of some kind.

Government officials and members of the public are both represented on these committees - the members of the public being appointed on account of specialist knowledge or expertise, or through their record or interest in contributing to the life of the community.

       While the membership of a committee is generally reviewed when a member's term of office expires, a more systematic and regular monitoring of the composition and effective- ness of these bodies is now planned. This is in keeping with the growing number and im- portance of advisory committees as the work of the government increases in range and complexity.

      Advisory bodies are divided into four broad categories: appeal boards (such as the Education Appeals Board, or the Board of Review Long Term Prison Sentences); those which deal with the interests of a particular industry (such as the Construction Industry Training Authority and the Fish Marketing Advisory Board); committees which advise on government action (Special Committee on Land Production and the Commodities Trading Commission); and others which share common interests in a particular locality (such as area and neighbourhood committees in the urban areas and the New Territories, district advisory and area committees, and neighbourhood Fight Crime committees).

Civil Service

The civil service provides the staff for all government departments and other units of the administration. During the 1979-80 financial year, the number of posts in the civil service grew from 134,700 to 141,700, an increase of 5.2 per cent. Recruitment was maintained at a high level and the number of officers also increased by 5.2 per cent during the same period, from 122,800 to 129,200. Of the total strength, 97.7 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 39 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 37,400. The Hong Kong civil service is somewhat unusual in that it does some jobs which in other territories and administrations are done by people who do not belong to the civil service. Elsewhere, for example, staff for hospitals, public works and utilities, urban cleansing and public health, and the police, are not always servants of the central government. In Hong Kong, the Medical and Health Department (17,400), the Public Works Department (17,500), the Urban Services Department (22,600) and the Royal Hong Kong Police Force (24,800) account for a total of 82,300 posts -- or about 58 per cent of the entire civil service.

       The number of people working in the civil service has grown from 17,500 in 1949, to about 69,000 in 1967, and now to more than 129,000. 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 1980-1 financial year, this is estimated to be about $4,065 million, excluding pensions. This is about 38 per cent of the total estimated recurrent expenditure for the year.

       Although claim for more pay is usually the major cause of confrontation between ad- ministration and staff in the civil service, the strengthening of staff management is seen as an important element in preventing disputes. A Staff Management Division was therefore established in the Civil Service Branch of the Government Secretariat in May, 1980, with

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the objective of working out service-wide strategies for improving staff management. The division also has the responsibility of identifying and reviewing any civil service policies and practices which may lead to staff problems, and suggesting remedies.

The Standing Commission on Civil Service Salaries and Conditions of Service con- solidated and developed its first year's work in three main areas. It continued its regular programme of meetings with staff associations; made recommendations to the government, following a detailed review of grades not covered in its report on pay levels in October, 1979; and recommended changes in the existing arrangements for consultations with staff. Following submission of its various recommendations in September, 1980, the commission began an examination of the government's overall pay policy as one of its major priorities. In addition, the commission gave separate advice on restructuring the upper ends of civil service pay scales to restore the differentials between senior civil servants and the staff they supervised, and these recommendations were accepted in July 1980.

Prior to March 31, 1980, the establishment of each post in the civil service required the approval of the Finance Committee of the Legislative Council, assisted by the advice of its Establishment Sub-committee. Since that date, a system has been introduced, on a trial basis, under which posts below the directorate level in a department may be submitted to a Departmental Establishment Committee for consideration and then to the Controlling Officer of the department for creation, redeployment or deletion. Despite this delegation, however, the controlling officer of a department is subject to a ceiling on the size of his departmental establishment, as authorised by the Finance Branch every year. The establish- ment of posts at the Directorate level, however, continues to require the approval of the Finance Committee of the Legislative Council.

Recruitment and promotions in the civil service in the middle and senior ranks are subject to the advice of the Public Service 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.

       The Government Secretariat is organised into eight policy and two resource branches, a branch dealing with the machinery of government and a branch dealing with New Ter- ritories 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: Environ- ment, Economic Services, 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.

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London Office

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The London Office, at 6 Grafton Street, W1, is a projection in Britain of the Hong Kong Government. The Commissioner provides a point of direct contact in London between Hong Kong and departments of the British Government, Members of Parliament, and 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, international rela- tions and government for one academic year.

Subsidiary offices are maintained in Manchester and Edinburgh to enable the London Office to develop its welfare and liaison services among the Hong Kong Chinese communities in the north of England and Scotland.

Government Departments

The administrative functions of the government are discharged by 49 departments, most of which are organised on a functional basis and have responsibilities covering all of 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 exten- sion 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, assess public response to proposed government policies and activities, 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 maintains close contact with un- official bodies such as the Tung Wah Group of Hospitals, Po Leung Kuk, kaifong associa- tions, district and clansmen's associations, mutual aid committees, multi-storey building owners' corporations, and religious and charitable organisations.

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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 enquiry service which dealt with more than 5.2 million enquiries in 1980. This counter service can advise a citizen on almost any aspect of government policy and procedure, provide him with any forms he might need and help him fill them in. It also operates a 24-hour weather information service during typhoons and heavy rainstorms when the city district offices are kept open for those who may be in need.

Through the liaison 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 local problems and 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 1980 there were 3,291 of these committees in the urban areas, an increase of 239 over 1979. The Mutual Aid Committees Scheme has provided many people with an addi- tional channel of communication with the government.

The role of the department as monitor and co-ordinator of government services at district level has taken on new emphasis with the success of a pilot District Management Com- mittee in Kwun Tong and the decision to extend the scheme throughout the urban area.

Use of the Chinese Language

The year saw further expansion in the use of Chinese by government departments in com- municating with members of the public, and in other official business. The appointment of non-English-speaking people to serve on advisory boards and committees, the greater number of publications in Chinese, and the increasing amount of correspondence in Chinese have increased the demand for high quality interpretation and translation. 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 wider use of Chinese in government departments in this context. To ensure conformity with the policy, regular visits to govern- ment 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 improvement 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 address at the opening of the Legislative Council; the Financial Secretary's Budget Speech; the 1980-1 Budget: Economic Background; the Green Papers on primary education and pre-primary services, and on district administra- tion in Hong Kong; the Hong Kong Annual Report (Hong Kong 1981); the Royal Hong Kong Police Force 1979 Annual Review; the Annual Summary by the Director of Educa- tion 1978-9; the Report of the Public Services Commission, Hong Kong, for 1979;

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Reports 2 and 3 of the Standing Commission on Civil Service Salaries and Conditions of Service; the Report of the UMELCO Police Group 1979; Reports of the Director of Audit and the Public Accounts Committee; career pamphlets for university graduates, graduates of the Hong Kong Polytechnic and registered post-secondary colleges, matricul- ants and school-leavers; instruction booklets for the 1981 Census; and the KCR Rule Book.

      The division also continued to sponsor a youth cultural and arts competition that in- cluded contests in Chinese translation, writing, speech-making, inter-school debate, calli- graphy and painting, and radio quizzes on knowledge of Chinese philosophy, culture and literature. The objective of these contests was to promote a greater 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 to keep pace with changing times. These changes have become more evident in the past few years with the development of six new towns which will house more than two and a half 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. It is planned to build another at Junk Bay.

      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 Ter- ritories, particularly those relating to development, community building and services, land, and security.

Traditional links between the government and the people are maintained through rural leaders elected to the 27 rural committees of the New Territories. These rural leaders form the nucleus of the Heung Yee Kuk, a statutory body which advises the government on New Territories' matters. However, the rapidly changing character of the region has brought with it the need for 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 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 have made an impact, and the response to their initia- tives and activities has been very encouraging. Proposals on the direction in which these boards are to develop in future are contained in the Green Paper A Pattern of District Administration in Hong Kong.

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 nearly 700,000 - was changed to town manager with special responsibilities to promote and encourage community involvement.

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       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 Territories taking in the districts of Northern, Tai Po, Tuen Mun and Yuen Long. The regional com- missioner's task is to co-ordinate and monitor the implementation of government policies in the region, to ensure that these 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 rapidly 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 individuals or between individuals and the government. The principle of English con- stitutional 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 Dis- trict 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 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-

248

CONSTITUTION AND ADMINISTRATION

     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 1980, about 350 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 1978-80 is in Appendix 32. The highest court in Hong Kong is the Court of Appeal, which is composed of the Chief Justice and six 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 is subject to a means test and can be granted to both residents 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. Even so, the test does have a certain degree of flexibility, and 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.

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.

CONSTITUTION AND ADMINISTRATION

Civil Legal Aid Scheme

249

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 95 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 Magis- trates' 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.

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, and plans are proceeding to expand the legal aid schemes in the years ahead. 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 41 professional officers, 61 law clerks, two executive officers and the necessary supporting staff; in all, more than 240 people.

250

CONSTITUTION AND ADMINISTRATION

      Since July, 1980, the department has been operating a mobile unit to provide residents in the New Territories with on-the-spot advice and assistance in processing their legal aid applications. Travelling in a specially-equipped van, teams of lawyers and law clerks from the department go out each working day to a variety of locations, which they visit accord- ing to a regular schedule. The new service has been particularly welcomed by elderly applicants and accident victims, who would otherwise find the journey to the department's offices difficult and tiring. It also benefits workers, who no longer need to take a day off work and travel long distances to seek aid.

      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 what legal aid has achieved in criminal cases, however, many people acquitted in criminal trials and successful appellants in criminal appeals owe their freedom to its ready availability.

Legal Advice and Assistance Schemes

     Two schemes are now in their second year of operation. Organised under the auspices of the Law Society, and financed by government subvention, they are administered by an executive committee drawn from the legal profession and representing both the Law Society and the Bar Association.

      The Legal Assistance Scheme provides free legal representation in the Magistrates' Courts for people charged with any of the following offences: membership of a triad society, loitering, unlawful possession, going equipped for stealing, resisting arrest and possession of dangerous drugs. It began operation in 1979 on an experimental basis at three of the eight magistracies, and was extended to a fourth in 1980. The four magistracies are North Kowloon, San Po Kong, Causeway Bay and South Kowloon. Last year, legal representation was provided under the scheme in 4,398 cases and this year the figure rose to 4,979.

      The government is committed to a steady expansion of the scheme, and has agreed in principle to its extension to all eight magistracies.

The free Legal Advice Scheme commenced at two city district offices - Eastern and Mong Kok - in November, 1978, and was extended to Wong Tai Sin one year later. In its first 12 months of operation, 1,660 people applied for legal advice through some eight referral agencies. In May, 1980, two further centres were established at Wan Chai and Tsuen Wan.

      The scheme is presently manned by 150 volunteer lawyers - drawn from the Bar, local practising solicitors and government service - of whom 17 are available for consultation each week at the five centres. They handle an average of 250 cases each month.

APPENDICES

Appendices

Units of Measurement

1

254

23 →

2

Overseas Representation

255

3

Hong Kong's External Trade by Major Trading Partners

258

4

Hong Kong's External Trade by SITC (Rev. 2) Commodity

Section/Division

259

5

Exchange Value of the Hong Kong Dollar

262

6

Expenditure on the Gross Domestic Product at Current Market Prices Expenditure on the Gross Domestic Product at Constant (1973) Market

Prices

263

263

7

Government Revenue and Receipts by Source

264

7a

Government Revenue and Receipts by Source (Chart)

265

8

Government Expenditure by Function

266

9

10

8a Government Expenditure by Function (Chart)

Comparative Statement of Recurrent and Capital Income and Expenditure

Revenue from Duties

267

268

270

  Licence Fees under the Dutiable Commodities Ordinance Miscellaneous Fees (Trade Industry and Customs)

270

270

=23

11 Money Supply

270

12

Liabilities and Assets: Banks and Deposit-taking Companies

271

13

Number of Establishments and Employment in Manufacturing Industry

Analysed by Main Industrial Groups

272

14

Number of Establishments and Employment in Selected Manufacturing

Industries

273

15

Reported Occupational Accidents

275

16

Consumer Price Index (A)

276

Consumer Price Index (B)

276

Hang Seng Consumer Price Index

276

17

Estimated Local Production of Crops, Livestock, Poultry and Fish

277

18

Local Production and Imports of Ores and Minerals

277

19

Imports of Crops, Livestock, Poultry and Fish

278

20

Categories of Registered Schools

279

22223

21

School Enrolment

Overseas Examinations

Hong Kong Students in Britain

Students Leaving Hong Kong for Overseas Studies

279

279

280

280

253

26

27

2 2 2 2 2 2

23

24

25

   Expenditure on Education Vital Statistics

Causes of Death

280

281

281

Hospital Beds

282

28

Professional Medical Personnel

Number of Quarters and Estimated Persons Accommodated as at

282

283

March 31,

1980

29

Land Office

284

Considerations in Instruments Registered in Land Office

284

30

Traffic Accidents

285

Traffic Casualties

285

31

223

Crime

285

32

Cases in the Supreme Court, District Court, Tenancy Tribunal, Labour

Tribunal and Lands Tribunal

288

Work in the Magistracies

288

33

Prisons

289

34

Electricity Consumption, 1980

289

Electricity Distribution

289

Gas Consumption and Distribution

289

Water Consumption

289

35

International Movements of Aircraft and Vessels

290

International Movements of Passengers

290

International Movements of Commercial Cargo by Different Means of

Transport

290

36

Registered Motor Vehicles

291

Public Transport: Passengers Carried by Undertaking

291

Public Transport: Passengers Carried by Area

291

Public Transport: Daily Average Number of Passengers Carried by

Different Modes of Transport

292

37

Communications

292

38

Recreational Facilities Provided by the Urban Council and the New

293

Territories Services Department

39

Climatological Summary, 1980

293

Climatological Normals

293

40

The Executive Council

294

41

The Legislative Council

295

42

Urban Council

297

43

The Hong Kong Council of Social Service

298

The Community Chest of Hong Kong

299

254

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 under Hong Kong's Weights and Measures Ordinance.

      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 14 inches. The variation of the size of the chek with usage still persists in Hong Kong but the chek and derived units are now used much less than in the past. For the retail sale of cloth, a 'yard' of 24 Chinese inches (35.1 inches) is frequently used.

      In the past, the values in China for the units of mass have varied according to the locality but the conventional Chinese units have been replaced by the kilogram and its multiples and sub-multiples. A metric catty of exactly 0.5 kilogram is also in use. The tabulated values below are calculated in accordance with the present Hong Kong statutory equivalent for the leung (tael) of 14 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

Length

10 fan

10 tsün

Metric equivalents

= 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)

16 leung

1 kan (catty)

100 kan

= 1 tam (picul)

3.779 94 g 37.799 4 g

0.604 790 kg

60.479 0 kg

The metric equivalents for length are exact. Six significant figures are used for the metric equivalents for mass.

Appendix 2

Overseas Representation

I. Commonwealth Countries

255

Countries

Represented by

Australia

Commissioner

Countries Nauru

Bangladesh

Commissioner

Canada

Commissioner

New Zealand Nigeria

Cyprus

Honorary Consul

Seychelles

India

Commissioner

Singapore

Represented by Honorary Consul Commissioner Commissioner

Honorary Consul Commissioner

Malaysia

Mauritius

Commissioner

(There also is a Senior British Trade Commissioner)

II. Foreign Countries

Sri Lanka

Honorary Consul

Honorary Consul

Tonga

Honorary Consul

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

Cuba

Consul-General

Netherlands

Consul-General

Denmark

Honorary

Norway

Consul-General

Consul-General

Pakistan

Consul-General

Dominican Republic Honorary Consul

Panama

Consul-General

Ecuador

Honorary Consul

Paraguay

Egypt

El Salvador

Finland

France

Consul-General

Honorary Consul

Honorary

Consul-General

Consul-General

Peru

Honorary Consul Honorary

Vice-Consul

Philippines

Consul-General

Portugal

Consul-General

Republic of Africa

Consul-General

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

Haiti

Honorary Consul

United States of

Consul-General

Iceland

Honorary Consul

America

Indonesia

Consul-General

Uruguay

Consul

Iran

Consul-General

Venezuela

Consul-General

Irish Republic

Honorary Consul

Israel

Honorary

Consul-General

256

Appendix 2 contd

III. Hong Kong Organisations Represented Overseas

HONG KONG TRADE INDUSTRY AND CUSTOMS DEPARTMENT

Hong Kong Office

Ocean Centre, 15/F, Canton Road, Kowloon, Hong Kong.

Tel.: 3-7222240/1 Cable: CANDIHONG HONG KONG Telex: 75126 CNDI HX

Overseas Offices

Hong Kong Government Office, 6 Grafton Street, London WIX 3LB, England.

Tel.: 01-499-9821 Cable: HONGAID LONDON Telex: 05128404 HKGOVT G

United Kingdom Mission (Hong Kong Office), 37-39 rue de Vermont, 1211 Geneva 20, Switzerland. Tel.: (022) 34-90-40 Cable: PRODROME GENEVA Telex: 04528880 HKGV CH

British Embassy, Hong Kong Government Office, Avenue Louise, 228 (Bte 2), 1050 Brussels, Belgium. Tel.: (02) 648-38-33 Cable: HONGREP BRUSSELS Telex: 04661750 HONGREP B

British Embassy, 3100 Massachusetts Avenue, N.W., Washington D.C. 20008, U.S.A.

Tel.: (202) 462-0139 Cable: PRODROME WASHINGTON Telex: 023440484 HKWSH UI

HONG KONG TRADE DEVELOPMENT COUNCIL

Hong Kong Office

3 & 4/F, Connaught Centre, 1 Connaught Place, Hong Kong.

Tel.: 5-257151 Cable: CONOTRAD HONGKONG Telex: CONHK HX 73595

Overseas Offices

14-16 Cockspur Street, London SW1Y 5DP, England. Tel.: 01-930-7955 Cable: CONOTRAD LONDON SW1 Telex: 916923 CONLON G

4 St. James's Square, Manchester M2 6DN, England. Tel.: 061-834-6164/6196 Cable: CONOTRAD

MANCHESTER

18 Rue D'Aguesseau, 75008 Paris, France. Tel.: 742 4150 Telex: HKTDC 641098F

452 Avenue du Prado, 13008 Marseilles, France.

Tel.: (91) 775454 Cable: HONGTRAD Telex: 430797

Brahegatan 30, 114 37 Stockholm, Sweden. Tel.: (08) 610072 Cable: CONOTRAD STOCKHOLM Telex: 11993 TDC S

Ulmenstrasse 49, 6000 Frankfurt/Main, Federal Republic of Germany.

Tel.: (0611) 721655 Cable: CONOTRAD FRANKFURT Telex: 414705 COFRA D

Hansastrasse 1, D-2000 Hamburg 13, Federal Republic of Germany.

Tel.: 040-417422 Cable: CONOTRAD HAMBURG Telex: 214352 CONHA D

2 Piazzetta Pattari, 20122 Milan, Italy. Tel.: (02) 865405 Cable: KONGTRAD MILAN Telex: 333508 HKTDCI

Rotenturmstrasse 1-3/8/24 A-1010 Vienna, Austria. Tel.: (0222) 639326 Cable: CONOTRADREP WIEN Telex: 75079 HKTDCA

548 Fifth Avenue, New York, N.Y. 10036, U.S.A. Tel.: (212) 582-6610 Cable: HONGTRADS NEW YORK Telex: 710 581 6302 HKTDC NYK

Los Angeles World Trade Centre, 350 South Figueroa Street, Suite 520, Los Angeles, California 90071, U.S.A. Tel.: (213) 622-3194 Cable: CONOTRAD LOS ANGELES Telex: 194288 HKTDC LA LSA

333 North Michigan Avenue, Suite 1511, Chicago, Illinois 60601, U.S.A.

Tel.: (312) 726-4515 Cable: CONOTRAD CHICAGO

World Trade Centre, 2050 Stemmons Freeway, Dallas, Texas 75258, U.S.A.

Tel.: (214) 748-8162 Cable: HONGTRADS DALLAS Telex: 791719 HKTDC DAL

Suite 204, 347 Bay Street, Toronto, Ontario, M5H 2R7, Canada.

Tel.: (416) 366-3594 Cable: CONOTRAD TORONTO

Condominio Plaza Internacional, Primer Alto, Oficina No. 27, Edificio del Banco Nacional de Panama, Via Espana y Calle 55, Panama, Republica de Panama. Tel.: 69-5894 Telex: 3792989

Toho Twin Tower Building, 4/F., 1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100, Japan.

Tel.: (03) 502-3251/5 Cable: CONNOTRADD TOKYO Telex: HKTDCT J26917

Suite 3314, Level 33, Australia Square Tower, Sydney, N.S.W. 2000, Australia.

Cable: HONGKONGREP SYDNEY Telex: CONSYD AA 21313

Bellerivestrasse 3, 8008 Zurich, Switzerland.

Tel.: (01) 251-01-85 Cable: CONOTRAD ZURICH Telex: 58550 CONZH CH

Nieuwe Spiegelstraat 36, 1017 DG Amsterdam, Netherlands.

Tel.: 020-253865 Cable: CONOTRAD AMSTERDAM Telex: 15081 HKTDCNL

Hong Kong Trade Development Council - Consultant Representatives

Balmes, 184, Barcelona 6, Spain.

Tel.: (93) 217 6250 Cable: PUBLICRELATIONS BARCELONA 6 (SPAIN) Telex: 97862 SARP E

6 Kerasoundos Str., Athens 611, Greece. Tel.: 7793560 Cable: KLONTRAD ATHENS Telex: 219908 GHK GR

Dubai Pearl Building, 14/F, Dubai, U.A.E. Tel.: (284) 236/9 Telex: 47200 LME EM

Appendix 2 contd

257

HONG KONG TOURIST ASSOCIATION

Hong Kong Office

Connaught Centre, 35/F, Connaught Road Central, Hong Kong.

Tel.: 5-244191; 5-244101 Cable: LUYU Hong Kong Telex: 74720 LUYU HX

Overseas Offices

Hong Kong Bank Building, 160 Sansome Street, Suite 1102, San Francisco, Calif., 94104, U.S.A.

Tel.: (415)-989-5005 Cable: LUYU SAN FRANCISCO Telex: 470247 LUYU UI

584 Fifth Avenue, New York, N.Y. 10036, U.S.A. Tel.: (212)-947-5008 Cable: USALUYU NEWYORK

333 N. Michigan Avenue, Chicago, Illinois 60601, U.S.A.

Tel.: (312)-782-3872 Cable: LUYU CHICAGO

G/F, 14-16 Cockspur Street, London SWIY 5DP, England.

Tel.: 01-930-4775 Cable: LUYU LONDON Telex: 916923 CONLON G

38 Avenue George V, (53 rue Francois Ier., 7/F), 75008 Paris, France.

Tel.: 720-39-66, 720-39-54 Telex: 650055 ANI

Wiesenau I, D-6000 Frankfurt I, West Germany. Tel.: Frankfurt 722841, 722842 Telex: 412402 HKTAF D

C/o Sergat Italia, S.r.1., Casella Postale 620, 00100 Roma Centro, Italy.

Tel.: 366-3668 Cable: Italsergat

Bligh House, 4-6 Bligh Street, Sydney, N.S.W. 2000, Australia.

Tel.: 232-2422 Cable: LUYU SYDNEY Telex: 24668 HKTASYD

General Buildings, G/F, Corner Shortland and O'Connell Streets, Auckland, New Zealand. Tel.: 798-642 Telex: Sita 2447

Toho Twin Tower Building, 4/F, 1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100, Japan.

Tel.: (03) 503-0731 Cable: LUYUTOURIST TOKYO Telex: 02225678 LUYUTO J

Kintetsu Honmachi Building, 4-28-1 Honmachi, Higashi-ku, Osaka 541, Japan. Tel.: (06)-282-1250

Suite 2503, Ocean Building, 25/F, Collyer Quay, Singapore 1, Singapore.

Tel.: 915464, 914257 Cable: LUYUSIN

258

Appendix 3

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by Major Trading Partners

Imports

1978

1979

1980

1979-80

Change in

Source

$ Million Per cent

$ Million

Per cent

$ Million

Per cent

per cent

Japan

China

United States

14,405

22.8

19,320

22.5

25,644

23.0

+ 32.7

10,550

16.7

15,130

17.6

21,948

19.7

+ 45.1

7,519

11.9

10,365

12.1

13,210

11.8

+ 27.4

Taiwan

4,257

6.8

6,035

7.0

7,961

7.1

+31.9

Singapore

3,219

5.1

4,821

5.6

7,384

6.6

+ 53.2

Britain

2,975

4.7

4,350

5.1

5,456

4.9

+ 25.4

Republic of Korea (South Korea)

1,793

2.8

2,529

2.9

3,869

3.5

+ 53.0

Switzerland and Liechtenstein

2,115

3.4

2,592

3.0

2,897

2.6

+ 11.8

Germany, Federal Republic

2,072

3.3

2,775

3.2

2,883

2.6

+ 3.9

Australia

1,274

2.0

1,579

1.8

1,698

1.5

+ 7.5

Others

12,876

20.4

16,340

19.0

18,701

16.7

+ 14.5

Merchandise total

63,056

100.0

85,837

100.0

111,651

100.0

+ 30.1

Domestic Exports

Destination

United States

15,125

37.2

18,797

33.6

22,591

33.1

+ 20.2

Germany, Federal Republic

4,426

10.9

6,344

11.3

7,384

10.8

+ 16.4

Britain

3,871

9.5

5,974

10.7

6,791

10.0

+ 13.7

Japan

1,856

4.6

2,656

4.8

2,329

3.4

-

12.3

Australia

1,494

3.7

1,789

3.2

1,941

2.8

+ 8.5

Singapore

Canada

1,104

2.7

1,413

2.5

1,791

2.6

+ 26.8

1,271

3.1

1,637

2.9

1,782

2.6

+ 8.8

China

81

0.2

603

1.1

1,605

2.4

+166.1

Netherlands

937

2.3

1,406

2.5

1,575

2.3

+ 12.0

France

575

1.4

1,004

1.8

1,407

2.1

+ 40.2

Others

9,972

24.4

14,289

25.6

18,975

27.8

+ 32.8

Merchandise total

40,711

100.0

55,912

100.0

68,171

100.0

+ 21.9

Re-exports

Destination

China

214

1.6

1,315

6.6

4,642

15.4

+252.9

United States

1,232

9.3

1,995

10.0

3,085

10.3

+ 54.6

Indonesia

1,302

9.9

1,684

8.4

2,761

9.2

+ 64.0

Singapore

1,390

10.5

1,804

9.0

2,510

8.3

+ 39.2

Taiwan

1,221

9.3

1,730

8.6

2,229

7.4

+ 28.9

Japan

2,282

17.3

2,477

12.4

2,201

7.3

11.1

Macau

358

2.7

605

3.0

923

3.1

+ 52.6

Philippines

507

3.8

777

3.9

904

3.0

+ 16.3

Republic of Korea (South Korea)

600

4.5

818

4.1

899

3.0

+ 9.9

Nigeria

247

1.9

377

1.9

843

2.8

+123.6

Others

3,845

29.1

6,441

32.2

9,075

30.2

+ 40.9

Merchandise total

13,197

100.0

20,022

100.0

30,072

100.0

+ 50.2

Appendix 4

259

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by SITC (Rev. 2) Commodity Section/Division

Imports

$ Million

Section/division

1978

1979

1980

Food and live animals chiefly for food

Live animals chiefly for food

1,283

1,332

1,635

Meat and meat preparations

1,018

1,186

1,475

Fish, crustacea and molluscs and preparations thereof

1,178

1,533

1,776

Cereals and cereal preparations

1,104

1,304

1,556

Vegetables and fruit

2,004

2,397

2,843

Others

1,621

1,894

2,273

Sub-total

8,207

9,646

11,558

Beverages and tobacco

Beverages

542

767

841

Others

447

586

743

Sub-total

989

1,353

1,583

Crude materials, inedible, except fuels

Cork and wood

274

493

504

Textile fibres (other than wool tops) and their wastes

(not manufactured into yarn or fabrics)

1,815

1,929

2,371

Crude animal and vegetable materials, ne s

1,253

1,378

1,671

Others

415

513

721

Sub-total

3,756

4,312

5,267

Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials

3,029

4,759

Others

94

147

7,642 240

Sub-total

3,122

4,906

7,882

Animal and vegetable oils, fats and waxes Fixed vegetable oils and fats

275

345

368

Others

4

11

8

Sub-total

279

355

376

Chemicals and related products, n e s

Dyeing, tanning and colouring materials

727

903

960

Medicinal and pharmaceutical products

726

967

1,064

Artificial resins and plastic materials, and cellulose esters and ethers Others

1,325

2,294

2,605

1,829

2,656

3,305

Sub-total

4,606

6,819

7,934

Manufactured goods classified chiefly by material

Textile yarn, fabrics, made-up articles, nes, and related products Non-metallic mineral manufactures, ne s

8,681

11,863

14,895

5,425

5,739

6,963

Iron and steel

2,018

2,884

3,426

Manufactures of metal, nes

928

1,539

2,272

Others

3,446

4,906

6,164

Sub-total

20,498

26,931

33,720

Machinery and transport equipment

Telecommunications and sound recording and reproducing apparatus and

equipment

2,057

3,257

4,471

Electrical machinery, apparatus and appliances, n e s, and electrical parts thereof Road vehicles (including air-cushion vehicles)

3,896

5,821

7,526

1,425

1,982

3,311

Others

5,089

7,549

9,825

Sub-total

12,467

18,609

25,133

Miscellaneous manufactured articles

Articles of apparel and clothing accessories

1,299

1,980

Footwear

224

395

3,467 631

Photographic apparatus, equipment and supplies and optical goods, nes;

watches and clocks

4,300

5,765

7,647

Miscellaneous manufactured articles, nes

2,154

3,048

4,174

Others

907

1,336

1,708

Sub-total

8,884

12,525

17,628

Commodities and transactions not classified according to kind

247

379

Total merchandise

63,056

85,837

569

111,651

Gold and specie

1,679

4,720

2,991

64,734

90,557

114,641

Grand total

Note: nes not elsewhere specified.

260

Appendix 4

Contd (Chapter 2: Industry and Trade)

Domestic exports

$ Million

Section/division

1978

1979

1980

Food and live animals chiefly for food

Fish, crustacea and molluscs and preparations thereof Vegetables and fruit

400

461

346

112

133

164

Miscellaneous edible products and preparations

125

152

180

Others

Sub-total

Beverages and tobacco

Tobacco and tobacco manufactures

Others

Sub-total

74

98

122

711

844

813

50

65

103

5

8

11

55

73

114

Crude materials, inedible, except fuels

Pulp and waste paper

86

131

157

Metalliferous ores and metal scrap

203

371

762

Crude animal and vegetable materials, nes

83

85

119

Others

41

62

69

Sub-total

412

650

1,108

Mineral fuels, lubricants and related materials

*

50

89

Animal and vegetable oils, fats and waxes

3

5

10

Chemicals and related products, ne s

Medicinal and pharmaceutical products

61

83

113

Essential oils and perfume materials; toilet, polishing and cleansing preparations Artificial resins and plastic materials, and cellulose esters and ethers

120

138

182

70

106

123

Others

94

105

124

Sub-total

345

432

542

Manufactured goods classified chiefly by material

Textile yarn, fabrics, made-up articles, nes and related products Non-metallic mineral manufactures, nes

• 2,869

4,065

4,535

313

394

472

Non-ferrous metals

81

159

239

Manufactures of metal, nes

1,124

1,537

2,037

Others

248

354

449

Sub-total

4,635

6,509

7,732

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

2,819

4,063

5,030

2,109

3,235

4,490

Others

1,475

2,015

2,856

Sub-total

6,403

9,314

12,375

Miscellaneous manufactured articles

Sanitary, plumbing, heating and lighting fixtures and fittings, nes Furniture and parts thereof

475

611

746

275

361

386

Travel goods, handbags and similar containers

913

1,223

1,505

Articles of apparel and clothing accessories

15,709

20,131

23,258

Footwear

427

518

624

Photographic apparatus, equipment and supplies and optical goods, nes;

watches and clocks

3,263

5,126

7,119

Miscellaneous manufactured articles, nes

6,634

9,454

11,020

Others

120

101

156

Sub-total

27,815

37,525

44,814

Commodities and transactions not classified according to kind

331

510

574

Total merchandise

40,711

55,912

68,171

Gold and specie

Grand total

Note: nes

        not elsewhere specified. * Less than $0.5 million.

40,711

55,912

68,171

Appendix 4

- Contd (Chapter 2: Industry and Trade)

Re-exports

Section division

261

1978

1979

$ Million 1980

Food and live animals chiefly for food

Fish, crustacea and molluscs and preparations thereof Vegetables and fruit

318

490

472

295

407

442

Sugar, sugar preparations and honey

17

24

104

Coffee, tea, cocoa, spices and manufactures thereof

121

148

157

Others

Sub-total

Beverages and tobacco

Tobacco and tobacco manufactures

Others

123

151

243

873

1,220

1,418

22

72

129

200

29

55

92

Sub-total

100

184

291

Crude materials, inedible, except fuels

Textile fibres (other than wool tops) and their wastes

(not manufactured into yarn or fabrics)

261

288

463

Metalliferous ores and metal scrap

17

71

343

Crude animal and vegetable materials, nes

720

926

1,165

Others

159

296

402

Sub-total

1,156

1,580

2,373

Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials

193

234

325

Others

4

7

Sub-total

197

239

332

Animal and vegetable oils, fats and waxes

36

36

33

46

Chemicals and related products, ne s

Dyeing, tanning and colouring materials

380

422

462

Medicinal and pharmaceutical products

419

535

594

Artificial resins and plastic materials, and cellulose esters and ethers Others

153

322

427

623

923

1,333

Sub-total

1,576

2,201

2,817

Manufactured goods classified chiefly by material

Textile yarn, fabrics, made-up articles, nes and related products Non-metallic mineral manufactures, n e s

1,815

2,772

4,310

1,870

2,379

2,388

Non-ferrous metals

148

317

596

Manufactures of metal, nes

215

370

590

Others

280

601

878

Sub-total

4,327

6,440

8,762

Machinery and transport equipment

Telecommunications and sound recording and reproducing apparatus and

equipment

287

641

1,283

Electrical machinery, apparatus and appliances, n e s, and electrical

parts thereof

664

1,195

1,963

Others

1,336

2,080

3,516

Sub-total

2,287

3,916

6,762

Miscellaneous manufactured articles

Articles of apparel and clothing accessories

464

935

1,554

Footwear

44

111

215

Photographic apparatus, equipment and supplies and optical goods, nes;

watches and clocks

1,268

1,802

2,810

Miscellaneous manufactured articles, n es

560

876

1,392

Others

254

367

593

Sub-total

2,589

4,091

6,565

Commodities and transactions not classified according to kind

56

117

706

Total merchandise

13,197

Gold and specie

82

13,279

20,022

445

20,467

33,080

30,072

3,008

Grand total

Note: ne s=not elsewhere specified.

262

Appendix 5

(Chapter 3: Financial System and Economy)

Exchange Value of the Hong Kong Dollar

Par value of the HK$ in

December 18, 1946

IMF parity established

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 3: Financial System and Economy)

Expenditure on the Gross Domestic Product

263

at Current Market Prices

$ Million

GDP components

1977

1978

1979*

Private consumption expenditure

39,126

48,541

59,037

Government consumption expenditure

3,675

4,454

5,568

Gross domestic fixed capital formation

13,016

16,772

23,694

Increase in stocks

+1,702

+2,067

-71

Exports of goods

44,833

53,908

75,934

less Imports of goods

48,796

63,263

86,339

Exports less imports of services

6,059

7,012

8,290

Total expenditure on gross domestic product at

current market prices

59,615

69,491

86,113

Per capita GDP at current market prices ($)

13,207

15,086

17,574

Expenditure on the Gross Domestic Product

at Constant (1973) Market Prices

GDP components

Private consumption expenditure

30,626

35,984

39,527

Government consumption expenditure

2,690

3,033

3,361

Gross domestic fixed capital formation

9,683

11,243

13,097

Increase in stocks

+1,331

+1,572

-250

Exports of goods

33,853

38,517

46,030

less Imports of goods

36,424

44,244

51,281

Exports less imports of services

4,522

4,903

4,935

Total expenditure on gross domestic product at

constant (1973) market prices

46,281

51,008

55,419

Per capita GDP at constant (1973) market prices ($)

10,253

11,074

11,310

Note: * Provisional estimates.

264

Appendix 7

(Chapter 3: Financial System and Economy)

    Government Revenue and Receipts by Source (note 1) (See also Appendix 7a)

Item

Direct taxes

$ Million

Estimate 1980-81

rent Capital Total

Actual 1978-79

Actual 1979-80

Recur-

Recur-

Recur-

rent Capital Total

rent Capital Total

Earnings and profits tax

4,114.6

Estate duty

Sub-total

4,114.6

4,114.6

128.5 128.5

128.5 4,243.1

5,723.6

5,723.6

199.7 199.7

5,723.6 199.7 5,923.3

6,493.9

6,493.9

165.0 165.0

6,493.9

165.0 6,658.9

Indirect taxes

General rates

806.9

806.9

889.3

889.3

973.0

973.0

Excise duties

830.4

830.4

883.2

883.2

942.0

942.0

Royalties and concessions

161.9 249.9

411.8

203.3 265.9 469.2

210.9

275.0 485.9

Stamp duties

761.8

761.8

933.6

933.6

683.0

683.0

Other taxes (note 2)

821.8

821.8

1,087.7

-

Sub-total

3,382.8

249.9 3,632.7

3,997.1

1,087.7

265.9 4,263.0 3,975.9

1,167.0

1,167.0

275.0 4,250.9

Other revenue

Fines, forfeitures and penalties

Licences

Provision of goods and services

109.1

323.3

109.1

323.3

122.8

122.8

117.0

117.0

391.1

391.1

435.3

435.3

1,308.8

Income from properties and investments

Sub-total

1,308.8

694.9 2,018.6 2,713.5

2,436.1 2,018.6 4,454.7

1,572.9

1,415.6 2,856.0 4,271.6

3,502.4 2,856.0 6,358.4

1,572.9

1,696.1

1,696.1

1,325.4 6,263.5 7,588.9

3,573.8 6,263.5 9,837.3

Reimbursements, contributions

and loan repayments

Reimbursements

Contributions

Loan repayments

Sub-total

Total

165.7

165.7

197.3

47.1

47.1

52.7

13.7

13.7

1.4

197.3

52.7

1.4

208.9

25.0 233.9

53.6

-

53.6

1.4

1.4

212.8

13.7 226.5

1.4 251.4

10,146.3 2,410.7 12,557.0 13,473.1 3,323.0 16,796.1

250.0

262.5

14,306.1 6,729.9 21,036.0

26.4 288.9

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

265

22,000

Estimate

21,000

20,000

19,000

18,000

Actual

17,000

16,000

15,000

$6,659 million 32%

Direct

taxes

14,000

13,000

Actual

12,000

$5,923

11,000

million 35%

$4,251 million 20%

Indirect

taxes

10,000

$4,243

9,000

million

34%

8,000

$4,263 million

7,000

26%

6,000

$3,633

million

5,000

29%

4,000

3,000

Other

revenue

2,000

1,000

$4,681

million

0

37%

$6,610 million 39%

$10,126 million 48%

1978-79

1979-80

1980-81

266

Appendix 8

(Chapter 3: Financial System and Economy)

Government Expenditure by Function (note 1) (See also Appendix 8a)

Item

General services

Administration

Law and order

Defence

Public relations

Revenue collection and financial control

$ Million

Actual 1978-79

Actual 1979-80

Estimate 1980-81

Recur-

Recur-

Recur-

rent Capital Total

rent Capital Total

rent Capital Total

196.3 29.7 226.0 982.0 70.6 1,052.6

242.5 1,221.8

<