Hong Kong Yearbook - Annual Report for the Year 1981

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Man Cheung




 MMIS 在線閱讀








sim Gel Tru

Tung Kwan





Lam Chun*












(wun Tam















Lantau Island












Chau &

Scale 1:200 000


km 0







Tsing Yi








14 k


Ing Mun. eservoirs




Varthui, Hang




Jyer Cove




Tal Uk




flation: Airport












Ho Chu







Shẩm Clung



Moi Haj

Kau Sai Chau



Tiu Chung Chau









Cartography by Lands,Survey and Town Planning Department PWD

✪ Hong Kong Government






Toi Gro

Wagis: Island

Po Toi




High Island








Built-up Area

Main Road

Ferry Route

Country Park

Secondary Road




100 metres contour interval with supplementary contour at 50 metres.




kaughai CHINA





















Guine NEW












A review of 1981


市政局公共圖書館 UCPL

3 3288 00218356 6



Mark Pinkstone,

Government Information Services


Arthur Hacker,

Government Information Services

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

Government Information Services

Printer and


D. R. Rick, Government Printer



Census and Statistics Department

The Editor acknowledges all contributors and sources

Copyright reserved


Acc. No. 423704

Class. HK 951-25




Frontispiece: Hong Kong is forever growing and most old buildings make way for new. In Central District, the Hong Kong Club (left) and the Hongkong and Shanghai Bank headquarters (under wraps, right) are seen under demolition, but the Supreme Court building (centre) is preserved.






























SOCIAL Welfare






























2 2 2 2




















Between pages







Keeping Fit


Tai Po






Space Museum





Hong Kong, Kowloon and the New Territories


Hong Kong's Population






















































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 1981, the middle market rate was about HK$5.7=US$1.


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


People-Hong Kong's Greatest Asset

A personal view by Graham Jenkins, a leading Hong Kong journalist.



THE people of Hong Kong, historically immigrant though 98.1 per cent Chinese, have for about three generations now been productively cooking their human resources in the thin soup of their almost resourceless land. And, from the tiny pressure-cooker of sheer density of numbers in physical and political constraint, has arisen in 32 years a phoenix at the heart of the Far East. Shimmering under a sub-tropical sun and in a Cote d'Azur setting is that modern phoenix - an exciting, crowded, busy, thriving, noisy, sprawling complex of cities and new towns where 5.1 million people live and work, save for about two per cent who still fish and farm.

     It is a place where flyovers leap skyward between skyscrapers and frenetic streams of trains, trucks, buses and motor-cars race through tunnelled hills and under a glorious harbour, linking multi-storeyed offices with multi-storeyed factories. Where in the ubiqui- tous bustling street picture, even demure Chinese girls are forever in a determined hurry -- just like everybody else bent upon the task at hand with few holds barred. And, where neon-signs shine in colourful profusion not just to proclaim their oriental message but to set a mood for an extraordinary pace in trade and commerce.

     Hong Kong is a British dependent territory that shrugs off that anachronism in political status with an annual 10 per cent growth in gross domestic product even in global recession. And, a place where administrative restraint in economic intervention, except to smooth the rough social edges, has raised the prospect, despite current inflation, of a median family disposable income within the next decade comparable with some developed nations, including Britain, itself.

Already 16th in world trade and third financial centre of the world, Hong Kong is not a modern miracle which only the mumbo-jumbo of some mystic might explain. The secret of its remarkable success, including its ups and downs, lies in its own peculiar social chemistry - imported traditions, ideals and know-how from East and West and the aspirations, human values and character traits of its people.

     People who, when they repeatedly in history flood across the China border to 'The Golden Mountain Where Men Eat Fat Pork', are unwanted, diluting the gravy we savour from our increasingly rich and sophisticated stew. But who, when cooked in the peculiar chemistry of our pressure-cooker, are integrated into a whirling human dynamo which, other than the sea that surrounds it, is Hong Kong's only natural asset.

     Into that integration go the common salt of Hong Kong's British administrators, the pepper of sheer need for survival and the spice of dreams someday fulfilled. It has never been easy. But the established culinary art alone justifies Hong Kong's existence though it has done much more than that. It has created a reputation for Hong Kong, among those who know it and are fascinated by its daily visible growth, as one of the most efficient, hardworking and forward-looking places on Earth.



The 1981 Census confirms the base for that assertion. Hong Kong's labour force participation ratio, at 70.9 per cent of the working age population between 15 and 64 years, is higher than Japan's 68.1 per cent and Singapore's 64.1 per cent - both thriving places that compare with other Asian nations like Pakistan with a ratio of 50.3 per cent. Thus, more men and women in Hong Kong work for their living than anywhere else in Asia and probably anywhere else on Earth.

Steps in the pressure-cooker integration begin with co-existence between new arrival and entitled belonger, often a relative or friend of the family back home in China. The belonger provides haven, money and the prospect of a job. Tolerance develops at the work bench and within the neighbourhood environment. Complete integration takes years. But, in the end, the new arrival begins to belong when he finds himself cultivating his own human resources like most belongers do.

Social mobility eventually takes over the new belonger. He has proved his ability and has begun to move up the ladder into the bourgeoisie. He has repaid his relative or friend and has become a craftsman, later perhaps a foreman. He has worked and learned, become resourceful, imaginative, self-reliant, go-getting and highly adaptable. Now it is self- betterment, and not survival, that drives him on.

     The prototype, go-getter millionaire, who tends increasingly to make himself felt in the corridors of financial power in Hong Kong, is an extension of that same profile. He may challenge the big British-founded conglomerates, known as 'hongs', but he is out of the same simmering, bubbling, boiling Hong Kong social pot. His wealth may make British businessmen look like paupers but seldom nowadays is that wealth inherited. His single- generation success story, in a matter of a decade or so, is tremendously admired and respected.


Successful go-getters are heroes and heroes are not asked by Chinese to explain their origins. Instead they inspire emulation. Thus, the Chinese youth comes home from his first working day in life and announces enthusiastically to the family he'll be a millionaire in five years' time. He asks what do they all want - a Rolls Royce, a new house, or what? It follows that Hong Kong's prototype millionaire is expected to wear immaculate pin-stripe blue and ride in a chauffeur-driven limousine. He must have a lavish house and servants and indulge his wife and children.

      Material well-being is reward for our neo-hero's success. It is the carrot that keeps all of Hong Kong on the run. One's chances of emulation are evaluated against accounts of how one's neo-hero has retained the common touch, just as teenagers reassure themselves against what they learn of the life-style of their own celebrity psuedo-heroes, film and singing stars. For instance, one hears that the latest neo-hero remains superstituous, takes numerology into account in closing business deals and never fails to consult the geomancer before he sites his next building. That, when he's feeling off-colour, he still asks his mother to boil her usual soup, based on old wives' tales. That he'll never change the bank which gave him his first loan.

This sort of behaviour breeds a unique homogeneity in Hong Kong. There is little class-consciousness in the social chemistry. Dominant memories of the older generation, passed on to their children, are not of some class struggle akin to the Western industrial revolution. They are of privation and disruption caused by years of civil war, and more recently the Cultural Revolution. Before that, there were memories of generations of village debt to absentee landlords.



      In Hong Kong they found no feudal yoke. Neither was there land on which they could return to their traditional rural occupations except in a few cases. Material well-being for most had to be attained without capital by adapting to an urban environment. By developing craft and entrepreneurial skills.

The Mandarin Precept

Happily, though confusingly, they found Hong Kong unlike traditional China. There, for centuries, the mandarin literati had subordinated the merchant and stagnated scientific and industrial development. The mandarin bureaucracy saw economic security and a rich intellectual ambit only in passing that almost insuperable, but character-building, classical Imperial Examination. But in Hong Kong the meritocracy tended, if anything, to be almost the reverse. British bureaucrats had for generations sought positively to encourage middle-men and entrepreneurs in their own right.

      Chinese character traits and traditions have not changed in modern Hong Kong but they have been used to fit the circumstances. For example, personal dignity with its roots in the family lineage and in ancestor workshop has always been a spur to personal business achievement. The extended family may have gone in most cases but the almost universal obligation remains to maintain or improve nuclear family standards and to prepare the children to do the same, or much better.

      The mandarin tradition that developed a tremendous propensity to focus on a task and an ability to apply oneself with great determination is applied in school and in business and even in the work ethic on the factory floor. It is still character-building. Pedigrees are not what matters, nor disciplines imposed from above. Rather it is the stiff individual test of the Hong Kong pressure-cooker. The successful are obliged, under that very much alive mandarin precept, to dispense largesse to help community projects and to serve on the councils that run the place with compassion and in the interests of all. Distinctions for community service come, not from the long-gone Emperors, but in the British Queen's awards.

      The British, who put the successful on the councils, are sometimes accused of running Hong Kong for vested interests but that is a distortion of the truth. They administer the place with remarkable insight and pragmatism, following the precepts the Chinese brought with them. They provide the climate and the physical and social infrastructure to enable anyone who chooses to develop his own human resources to undertake the modern mandarin test and reach the ranks of the liberated entrepreneurs, not the literati. To better oneself for profit, not to over-rely on public funds.

      The test, as Hong Kong becomes increasingly sophisticated, is moving toward more complicated achievement values. For instance, personal dignity is now not enough as a motivation. Nor is self-reliance. The social infrastructure includes nine years of free compulsory education and there is an increasing demand for higher education. Hong Kong now has more students per capita doing higher secondary education than Britain and the pressure is on to expand its universities and polytechnic, since education for Hong Kong students in Britain became much more expensive.


Hong Kong is a sort of microcosm of Britain in its heyday and of modern Japan as it approaches the end of the 20th century. Britain found the raw materials for its factories in its secure pre-war colonies and used Hong Kong as a warehouse for British entrepreneural skills on the China coast. Hong Kong, however, has no natural resources to compare with



what Britain can command, even today command. Japan is no bigger than California and without California's natural resources. But even Japan today has more natural resources than Hong Kong as Japan moves, despite that deficiency, toward a gross national product that by 1990 may exceed that of the United States.

      Hence, Hong Kong's success cannot be explained in the same terms as Britain's industrial revolution and its network of reciprocal colonial trade. Nor can it be explained in terms of the post-Confucian theory often advanced to account for the success of natural resource-poor Japan. Hong Kong workers do not begin their factory-day with morning exercises, nor do they end their day at the British pub. Few Hong Kong workers are obliged to don uniforms and fewer are required to sit through pep-talks extolling the national virtue of, for example, making sneakers.

Britain, in its heyday, and Japan and Hong Kong today, are manifestations of different character traits. Japanese early training accepts a more disciplinarian approach. Aims and position can thus be prescribed. The precepts of the business hierarchy and life-time employment in one firm are accepted in Japan and provide security, but are rejected in Hong Kong where personal achievement prevails.

The Hong Kong worker draws his dynamism from firmly believing the sky's the limit for him. Self-reliance seems almost inborn. Parents certainly seem to develop it in their children from early childhood. From teenagers most are bent upon doing their own thing. In Hong Kong there is, as a result, far too much mobility of labour. Employers often complain about the high cost of training labour. Workers learn with remarkable ease and employ greater dexterity than their European counter-parts. But having learned they may leave their employers at almost the drop of a hat for something else that interests them. They protest against, say the air-conditioning system, with their feet. They believe a change is as good as a holiday.

Competing for Markets

The Hong Kong character and traditions preclude an economy planned from the top, such as Japan. Or, the sort of detailed direction that goes into the neighbouring newly industrialising countries, such as Taiwan, South Korea and Singapore, competing for world markets, like Hong Kong does, against the economic giants that enjoy the luxury of large domestic markets - Japan, United States and Europe. The challenge of this decade to all the Asian newly industrialising countries, including Hong Kong, is to upgrade industry with technology transfers from the giants and then to build upon that base with their own indigenous technology. In meeting that challenge Hong Kong so far seems to have done as well, or better than, its newly industrialising neighbours without direction and subsidy from the top. At least, what it has got, free of subsidised capital, is viable.

Sir Philip Haddon-Cave describes the Hong Kong Government's policy as positive non-interventionism. He means limiting regulation and budget spending to socially acceptable parameters and following guidelines that demand only for the public sector the minimum employment of Hong Kong's total resources so that the major share is left to stimulate the private sector to create wealth as it chooses. Only reluctantly has Sir Philip even allowed, for instance, the revenue to be hypothecated for such small levies as are needed for trade and tourist promotion. But he has recently chaired a study on how Hong Kong could increase the diversification of its industries, which produced not directions but recommendations. One result has been the subvention of centralised industrial training to lighten the burdens of the mobility of labour. And the government, in a wider departure, is about to subvent a research and design centre for the electronics industry.







Previous page: The 1981 population census included visits to 7100 boat dwellers. Above: The enumerators also made personal calls to 1.2 million households.

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More than 12 500 teachers and students worked as temporary enumeration staff during the 10-day census period and their questionnaires were double-checked in classrooms.



After manual counts were completed, census information was transferred to magnetic tapes to compute more detailed data while the original questionnaires were destroyed.




       Positive non-intervention fits the-sky-is-the-limit outlook of Hong Kong's people. There has been, as a result, an on-going proliferation of small businesses, maximising Cantonese entrepreneurial skills where small is beautiful and yet providing also the right climate for the Shanghainese with greater organisational ability, who see bigger as desirable. But in Hong Kong there is nothing comparable with the big Japanese firms. Even the Hong Kong 'hongs' are conglomerates of sometimes hundreds of relatively small firms. And the developing Hong Kong multi-nationals usually go abroad investing in relatively small, well-dispersed factories.

Hong Kong is essentially an example of what the individual will do when driven by the desire for dignity through self-betterment, given freedom of action in an increasingly sophisticated competitive society. Of course, it produces hard luck as well as happy stories. No one props up an unviable business. The overall result shows that the chemistry in our pressure-cooker produces extraordinary dynamism.

External Trade

      Hong Kong is a mere dot on the bottom of the map of China. Yet it vies with Italy as the world's leading exporter of garments, that usually are better sewn and designed than its competitors. It makes products that cause consternation in the European Economic Community where the cry for protection at the expense of their own consumers is apparently the only way seen to counter Hong Kong's efficiency.

Garments are not the only field in which Hong Kong excels as a result of self-betterment that produces open-mindedness, understanding and even sympathy in any domestic or external situation. Hong Kong exports more watches than Switzerland and more toys than Japan. It has more merchant shipping tonnage on the Seven Seas than Greece. Its modern container port is third in through-put after Rotterdam and New York.

Hong Kong's money, gold and commodity markets are first to open daily on the international 24-hour time clock and they influence trading throughout the world. As the third financial centre of the world Hong Kong syndicates bank loans, not just for Third World development, but to accommodate even some of its trade rivals. After Zurich, it is the world's major overseas buyer of New York stocks and shares that finance United States industry.

But that is only one dimension of what Hong Kong has accomplished. It is an immense open market for all the world's producers because it must import everything it uses to feed its export-led industries, except for the energy, diligence, enterprise and skills of its own labour. For instance, it is the world's third biggest buyer of textiles which it makes-up into the garments it exports. It is also an enormous entrepôt, not just for China but any country that wants to use the entrepreneurial skills of the Cantonese to increase sales in Asia. Now that the Cultural Revolution is out of the way, China is increasingly using these Hong Kong market facilities. Something over 40 per cent of China's foreign earnings for investment in the development of its own resources are earned by China serving Hong Kong's domestic market and using Hong Kong's re-export facilities. Where else in the world can a country, like China, export even water and get paid for it in foreign currency? Japan is perhaps a more sophisticated trading partner on much the same scale. It provides a host of semi-processed items for assembly into finished products on Hong Kong work benches. And it supplies the domestic market with an array of consumer durables that grace most Hong Kong homes. It also uses Hong Kong's financial and re-export facilities to distribute its finished products to other parts of Asia. As a result, Hong Kong has formidable trade gaps with both China and Japan from unrequited imports. And Japan still



doggedly sticks to excluding under the Generalised Scheme of Preference some potential Hong Kong products that might help close the big 11 to one trade gap; as well as erecting obstacles, like long delays in qualifying for its quality stamp of approval that guides Japanese consumers in the choice of what they buy in their shops. This behaviour is increasingly not accepted with indifference in Hong Kong.

      Hong Kong's trade gap with China is seen in a more generous light. Though young Hong Kong belongers may look outward on the world for their own destiny they do glance backward across the border at the plight of their ethnic brothers. Help for them is approved because they know what drove their mothers and fathers to leave their homeland. Remit- tances remain quite common and annual visits begin heavily laden with everything they know their relatives might need. Investment in light industries in the special economic zones China has established across the Hong Kong border are as much to do with that sentiment as cheaper labour which Hong Kong generally finds less productive than its own.

Luxury Buying

Another result of the ethnic-brother sentiment is that Hong Kong's domestic market is bigger than might be expected for the size of its population and measurements of disposable income. One never knows where any imported item might end up, such is the totality of Hong Kong's open trade-door policy. The result is that Hong Kong, for instance, has more British Rolls Royces per road-mile than anywhere else. Though it has beaten Switzerland in export volume of watches, Hong Kong is still Switzerland's second largest export market for custom-made gold watches. Hardly an haute couture in Europe is not represented in Hong Kong with one or more retail outlets. Half of Hong Kong's leading department stores are Japanese. Even Mercedes Benz motor-cars are more often seen on Hong Kong streets than in the average West German city. Hong Kong is France's second biggest export market for brandy and a big buyer of its perfumes, though France seeks to limit our watch exports to her.

      Hong Kong's rapid growth also provides a market for the world's heavy industries. Capital investment in the expanding infrastructure benefits the developed countries. Hong Kong's current order to Britain for electric power generating plant is the biggest Britain has ever received. The construction of Hong Kong's underground mass transit railway has spread big contracts around Europe, United States and Japan. The electrification and double-tracking of its railway to the China border is also helping keep Britons and other Europeans in employment. A bridge, longer than San Francisco's Golden Gate, a new airport and another new town are on Hong Kong's drawing boards.

Its free money market and its stability has attracted considerable foreign investment in industry from abroad and in technology transfer. Americans, Japanese and West Germans are able to remit their profits besides making products more cheaply and better in Hong Kong than they can often do in their own countries. But Hong Kong is no longer a cheap labour market and the result is, for example, a foreign toymaker may well decide to make his rag dolls in the Philippines, his die-cast toys in Malaysia, Taiwan or Indonesia and produce his electronic games in Hong Kong. The Hong Kong pressure-cooker is forever bubbling out more sophisticated workers from its social chemistry.

Some of Hong Kong's imports may smack of affluent living, amid relative poverty. But the picture is tempered by nearly two and a half million tourist buyers annually and the near- totality of Hong Kong's free port status. For instance, Japanese tourists prefer Swiss watches that don't look like Japanese cheaper brands and they look for the most exclusive brands of European-woven cloth for the suits they have made quickly and efficiently in Hong Kong.



Nonetheless, there is affluence in Hong Kong that may look rapacious in the circum- stances but is, in fact, only a fraction of its annually accumulated wealth. This is more accepted as an incentive to others striving for material well-being than something to be tolerated by those who always naturally are seeking better pay and fringe benefits. It is perhaps best explained by those who claim the average Hong Kong worker looks upon his current job as rather temporary until he sees the opportunity to get to the top. This view seems to be supported by an indifferent and falling union membership, except on issues that could affect their current level of material well-being such as a rise in bus fares. Anyhow, only unions in life-time careers such as civil servants, airline people, etc. seem to be well-organised and to be gaining in membership. At least for the rest, the importance of the Hong Kong pressure-cooker producing copious supplies of capital for formation in an expanding economy seems silently accepted.

      The homogeneity that's in the pot also diminishes the chances of a destructive class-struggle. The boss is seen as one of them who's made it to the top as all would like to do. He's that neo-hero. Besides, many Chinese believe in the three-generation clogs-to- clogs syndrome. Indeed, the shannanigans of second and third generations of successful men provide most Hong Kong Chinese with a major form of entertainment. True-life examples, sometimes thinly disguised, are dramatised in soap operas that command Hong Kong's highest television viewer audiences. But such is the social chemistry that no one, after watching an episode in monthly serials, would think of getting up and going out to scratch the boss's car. The boss is more respected than envied and he is depicted on television in that role.

Sages not Systems

Though Hong Kong is part of the New World encroaching on the old, its people's roots remain in the Old World. They admire sages not systems and quote examples from their history of good and bad on a much higher altruistic plane than Westerners might believe from superficial observation of the helter-skelter struggle for self-betterment. Billy Graham on a crusading visit attracted two stadiums-full of young belongers at the one time, not for free bibles nor even his religion, but for the ideals he preached. The Hong Kong community that daily puts itself to the modern mandarin test may well come to accept a nine-to-five-o'clock day of competitive capitalism, and leisure evenings in a sort of socialist society.

      Nearly half of the population enjoy that ambivalence as tenants of the free world's greatest effort in public housing. Half of Hong Kong's strained and inflated building resources are absorbed in a unique effort to put the most needy into housing estates, each with their own infrastructure of shops, schools, clinics and indeed, practically everything needed for self-contained, civilised life. Each estate houses 40 000 to 60 000 in high-rise buildings that squeeze a medium-sized city on to a site no bigger than the average railway terminus in Britain.

Thus, Hong Kong has within the total community of at least part of the most deserving, a privileged group who enjoy relatively cheap rents. Though their flats are mostly one-room and small the opportunity for self-betterment is being nurtured. Both parents can go out to work, for the average housing estate has creches and kindergartens run either by the government, by subvented voluntary welfare agencies, or privately. As this sort of nuclear family grows up the children also begin to work and the disposable income of the family expands. Clothes are cheap so the balance is often spent in restaurants where food and drink costs up to four times what it would at home. Or, the family decides to buy a car. Car



parks are, indeed, essential components in the latest designs for public housing estates that still grow like mushrooms.

      But the most-prized possession of a Hong Kong Chinese is his own home for it brings respect just as the development of one's own human resources does. For it is his home his asset - that ties the family closer together. An opportunity to attain that respect through the development of family human resources is provided in the government's home ownership scheme. A public housing estate tenant who has been reasonably successful can, for a relatively small down-payment and on easy terms, move to more spacious quarters at a total cost 25 to 30 per cent cheaper than in the private sector.

      The average number of economically active in the Hong Kong nuclear family of four is 1.9. The disposable income this figure produces contributes both to an active consumer society and a punishing pace of life. In Hong Kong's crowded streets the tempo appears aggravated. It breeds artful dodgers, bumpers and pushers. Courtesy tends to become a victim, but self-betterment is behind it. Mercifully, Hong Kong has a mild sub-tropical winter. The discourtesy that sometimes adversely affects Hong Kong's big tourist trade might be more sympathetically understood if critical observers realised what the average neat and tidy Hong Kong belonger had been through in our pressure-cooker. He or she shows no outward signs of heart-scars. But scars are often there.

The influx beginning in 1949 from China produced appalling hardships for the people who ran before the communist armies. Their Hong Kong belonger children, now adults in our community, are well aware of what they had to go through. It is still affecting their outlook.

Personal Experiences

I remember soon after taking over Reuter's Hong Kong office in 1952 a half-paralysed, pasty and puffy-faced Chinese in his twenties standing before my desk and handing me a letter with terror in his eyes. The letter was from the company's doctors. It said the bearer had suffered from beri beri, that his heart was permanently impaired and recommended I should give him a sedentary job. The office manager told me he was a messenger who starved himself to send half his wages to help his family on the other side of the border. He had been keeping his wife and family in a squatter hut on some hillside on $60 a month and gone without himself. The office manager wanted to know if I proposed to sack him because he was no further use. I then understood the terror in the poor fellow's eyes.

      I made a job for him sitting down and increased his wages, though the company's revenue at that time, adversely affected by the United Nations embargo on trade with China that followed the outbreak of the Korean war, didn't justify my action. A few month's later that poor young man died on the office floor. He then became a figure in Hong Kong's monthly vital statistics return under the heading 'dumped bodies' that meant the Urban Services Department, more notably responsible for garbage collection, took his body away and buried him because his family was too poor to afford a funeral.

      I gave his widow the job of office amah and my head office in London contributed handsomely to the education of her children. Today, one of that man's sons owns a small factory. And I know he runs as he works.

      As an employer of labour for many years in Hong Kong I have learned of many other cases of scars-on-heart who have those scars and keep it to themselves. It can only be dragged out of them when they ask for something without sufficient apparent reason. For example, a young employee once asked me for two days' off in Macau and I thought he must be a gambler. Eventually, the facts emerged under questioning. He wanted to attend



the funeral of a woman who kept a Dickensian-type workhouse in Macau where he had been brought up. He had been sold by his Hong Kong mother who lived in poverty. He did outwork from the age of four. Yet, he said, with tears in his eyes, the workhouse keeper was the only mother he ever had and loved.

       Prostitution at that time was rife. The Central District of Hong Kong was crowded with them at night. They were often mothers trying to keep families together when weaker-willed husbands threw in the sponge. I knew one son who had a hang-up about his mother from having seen her with a strange man. But that woman sent her children to school and eventually buried her drug-addict husband. All her children had to hurry home from school to do outwork, then run with it to the factory before it closed to get enough money to buy their meagre evening meal. Yes, that man with a hang-up still runs as he works.

       Another I sometimes have tea with told me he came from Shanghai as a small boy. His father joined a secret society, hoping for a short-cut to material well-being. The boy was initiated into the secret society at 13 years. He learned kung fu and bullied and extorted for a living. Once when I tried to point out the error of his ways he told me if he couldn't make a decent living, then he would do it the criminal way. I know he had many brushes with the law. But finally he did put his kung fu to good use. Today he is a movie stunt man and a kung fu actor and assistant director, wholly immersed in the choreography of kung fu. I know he runs as he works.

I knew another who claimed he was a Black Hand. He was sold by his destitute widowed mother for $3,000 to a secret society. He was taught to attack drug-pushers who didn't pay those higher up in Mr Big's heroin distribution network, pushers themselves often being addicts and unreliable. Armed with a butcher's knife he would chop the razor-sharp blade into his victim's bony shins a couple of times. If that wasn't sufficient lesson to elicit prompt payment, then next time my Black Hand friend would chop off half a foot. Today, that fellow is a cook, making those Chinese delicacies we all know as dim sums. He runs as he works.

      On a happier note, I knew one Chinese family in Hong Kong for many generations who helped by taking in a boy from a destitute family. He did household chores and messages for his keep and his schooling. Today that man is a branch manager of a well-known bank, has a wife and family and is paying off his house. I saw him weep at the funeral of the old man who gave him shelter and a career. He runs as he works.

      I don't know how many people work in our government who began life in Hong Kong in a squatter hut on some hillside. But I do know, whoever they are, they must be well-experienced civil servants. Who could have a better understanding of Hong Kong's classless meritocracy? I have heard of people who began that way, now in quite high places. They had poor but sensible fathers and mothers who understood the way to the top was by development one's own human resources. Not merely passing examinations, but winning scholarships.

The Pressure-cooker Product

I sometimes wonder what the heart-scarred in the Hong Kong population think when they read of well-meaning pressure groups advocating the abolition of all examinations? What their reaction is to psychologists who talk about future shock as old buildings are torn down to make room for commonplace skyscrapers? And what they think of psychiatrists who suggest a high incidence of mental illness among tenants in cramped public housing estate quarters? Quarters that they see as a bargain and a stepping-stone to the development of one's human resources.



       If the heart-scarred were going to be shocked out of their minds it would have happened to them a long time ago. Shrewdness, not madness, is the product of the Hong Kong pressure-cooker. More relevant, I suggest, were those visiting biologists late last year who wanted to do research on the early impact of learning the Chinese language on the maturation and plasticity of the human brain - a difficult basis learning task that seems to develop the Chinese aptitude to focus on a hard task, to remember, to concentrate and to listen and apply the knowledge they acquire.

       The broader vision of travel is now enriching Hong Kong Chinese aptitudes. One has to take a plane to have a holiday outside the pressure-cooker. Increasing external business also requires travel. Aptitudes enriched through travel lead to more capable penetration of whatever economic challenge Hong Kong poses to the rest of the world. Conversely, Britain's greatest ambassadors of understanding from outside have been people like the Beatles and Cliff Richard who won the hearts of the Hong Kong young who have not yet travelled.

       The consolation in the Hong Kong challenge, if consolation is needed, is that what is being done in the pressure-cooker is motivated by a desire to improve human dignity and not at the expense of human freedom - whatever may be happening north, south, east and west of Hong Kong. The climate established is the greatest of the British contributions to the remarkable success of the place they administer. Some cynics say Hong Kong is a place where a British administrator jumps every time a Chinese complains. But that is not a British colonial conscience purging itself. Rather, it points to a unique measure of British concern and to the degree of understanding and respect that has been built up for the people's human values. And that is the basis of the extraordinary harmony that exists in Hong Kong between the races. After all, even Britons come to Hong Kong to better them- selves. Yes, materially.

      My personal experience of questioning senior administrators tends to support these views. Often, I have come away from interviews with the embarrassing feeling they were more genuinely involved in trying to do the right thing for the people than I had believed when I went in. These people are not politicians but concerned with ethics, and they can find criticism dismaying. Hong Kong is not a democracy. But, in weighing the checks and balances, I sometimes commit the ideological heresy of thinking it produces better and quicker results. The direction is more stable, pressure groups are recognised for what they are and the aim more accurate generation of human resources to create wealth for economic expansion and a better quality of life, without deprivation of freedom or directing each man's destiny.

Free Criticism

     But this is only one dimension of what makes Hong Kong. The government proclaims on television and elsewhere that it responds to public criticism. Critics deride that statement and none louder than a Briton herself, Mrs Elsie Elliott, who has been awarded the Magsaysay Prize and an honour from the Queen for crusading for social justice for all. A lively Press is often just as critical in exposes and editorials. At least their demands for instant accomplishment keep all the bureaucrats on the hop. Not being afraid to speak out is a relatively new thing in Hong Kong - and a remarkable back-handed tribute to the administration.

      In a place where rapid change is the norm it is hardly surprising the freedom to criticise is often used impatiently. There is a constant demand for instant social reform. But while the government responds to a lot of this it does hold a steady course on fundamentals that



might damage of free market mechanisms which, though they do from time to time create social problems, are the real ingredient in the Hong Kong stew that makes it increasingly tasty for all. Few critics ever go so far as to raise that great human dilemma: Should Hong Kong continue to boil and enrich its stew and only eat the gravy or, should it serve the whole stew and let everyone eat an equal share?

      An extremely significant spin-off from the overriding drive for self-betterment is the stability that drive creates in the Hong Kong community. There is a strong sub-surface demand for law and order so that the people can get on with their basic aim. That came clearly to the surface in support for the British when the Cultural Revolution spilled over into Hong Kong in 1967. It surfaced again in support for the British administration when some police threatened mutiny in 1977. And yet again last year in the demand for an inquiry into the MacLennan case. The people of Hong Kong, bent upon their struggle for the development of their own human resources, are, as a result, remarkably law abiding. This is not to say crime doesn't exist. On the contrary, like everywhere else it is increasing. But, our criminals are the small percentage of immoral people in Hong Kong's midst who use crime for material self-betterment. Demand for more moral instruction in Hong Kong schools is the way many people have reacted to this.

The Census

In the year just behind us Hong Kong has had an opportunity to take stock of what it has achieved and who the people are who have accomplished its achievements. The 1981 Census is also a good pointer to its future direction.

One fact that the 1981 Census clearly establishes is that in age structure Hong Kong is not getting any younger. There has been a continuous decline in the proportion of young people aged 0-14, while old people aged 65 years and over have slowly risen since the 1971 Census from 4.5 per cent of the population to 6.6 per cent. The proportion of the working age population, from 15 to 64, has increased from 59.7 per cent to 68.6 per cent over the past 10 years. This makes for a more productive community and better economic per- formance with more gravy for everybody.

As a result of these trends, the dependency ratio - defined as the ratio per 1 000 of the population below 15 and aged 65 and over to the working age population - has decreased in the last decade from 674 to 457 per thousand. The decreasing dependency ratio is an indica- tion of the growing strength of those who bear the responsibilities of support in society in relation to those who depend on them for upbringing, education and so on. Our figure at 457 is better than Japan's 484, Singapore's 517, India's 788 and the Philippines' 844.

But the dependency ratio does not tell the whole story since it does not account for the degree of labour force participation. Our 1981 Census found that, of our total population aged 15-64, 70.9 per cent were economically active, up from 67.2 in 1971. Some say this could be because more wives and daughters have gone out to work in the last few years when real wages have tended to be static and global and local inflation have eaten into their purchasing power - a phenomenon that in the past occurred when Hong Kong was hit by recession and employment reduced to part-time, manifest in an explosion of hawking, for instance. Whatever the reason may be it is a great strength in our population in their struggle for self-betterment.

Though the economically inactive young are declining in number, the 1981 Census shows there has been a continuous drop in the median age of our labour force from 35 to 31 years in the past decade. Our economically active population is becoming younger as more young people enter the labour force and join the struggle for self-betterment. Only Singapore's



median age at 29 is lower. Japan's is 39. Given that there is an in-built drive in the Hong Kong worker to improve his skills the relatively young age of our work force is an undoubted asset for the future.

Projection of our population trend that shows the proportion of working-age people will stabilise in the next five years, but will drop slightly by 1991. As a result there will be a slight increase in the dependency ratio, which nevertheless will still remain well below previous levels. The present ratio of 457 per 1 000 people is expected to reach 480 by 1991. There will also be a moderate growth in the proportion of old people from 6.6 per cent in 1981 to 8.6 in 1991. This will affect social welfare and medical services for the old. But this subject has already stirred the public conscience and our government has responded with a 10 per cent growth per year in public facilities for the old. Though, surely, in part the solution is to let granny and grandpa mind the kids, which they love to do. Who could then say the old were economically inactive?

Males verses Females

Sex composition, according to the 1981 Census, shows we have 1 093 males to every 1 000 females. The sex ratio in 1971 was 1 033 males and in 1976 1 046 males per 1 000 females. The increases in the proportions of males over females is a result of the large influx of illegal immigrants who were predominantly young and male. The effect is particularly marked in the age group 20-34 where the ratio of males to females rose from 1053 to 1 155, triple the same cohort in 1971 and twice that in 1976.

An analysis of the marital status of the population reveals that 483 817 males and 284 768 females in the marriageable age bracket 20-34 have never married. This represents a surplus of almost 200 000 males over females or 41 per cent of males. The imbalance, partly due to illegal immigration, presents Hong Kong with a social dilemma. The government must hope at least to keep legal immigration from China at the present daily average of 150 people so that the situation doesn't get worse - but hopefully to reduce that level. But that will not provide wives for the surfeit of young men unless China sends, in the current 150-a-day level, the girl friends left behind. Whether or not that will happen is anybody's guess. Current legal arrivals are generally balanced in sex composition and usually are a bit higher in quality, mainly because, to get a single-journey permit in China, applicants have to fill in forms and be able to articulate their case.

The imbalance could pose problems for the Royal Hong Kong Police Force of 22 000 men, that already has so much to do at the border. Working with the Armed Forces it has reduced the illegal arrival evasion ratio from 1:1 to 1:0.6. Crime generally in Hong Kong compares favourably with most countries. But 60 per cent of all armed robberies are being committed by illegal immigrants who doubtless see crime as a quick way to material self-betterment. Doubtless, some illegals are no more than criminals from China seeking better pastures and who will go to prison in China when caught and sent back. There may be as many as 4 500 constituting a 'submerged society' without legal right to remain in Hong Kong. The question now is: will there be another unmarried group to get into mischief because they will not be able to find girl friends to keep them occupied in their leisure hours?

But basically the predominance of males in the 20-34 age group is a characteristic that should strengthen the quality of Hong Kong's work force. The larger influx of male immigrants over female immigrants has made a significant contribution to the growth of the labour force. While males aged 20-34 have a labour force participation rate of 95.4 per cent the corresponding rate for females is but 66.1 per cent. Thus the sex imbalance has




Happy New Yea







Previous page: Colourful festive lighting hails the New Year amid the skyscrapers of

Central District. Above: The Duke of Edinburgh inspecting facilities at the new Prince. Philip Dental Hospital which he opened in March.




The first consignment of new coaches arrives for use when the Hong Kong section of the Kowloon-Canton Railway starts electrified services in mid-1982


The Governor, Sir Murray MacLehose, with the Secretary of State for Foreign and Commonwealth Affairs, Lord Carrington, on a fact-finding tour of the New Territories.




A handicapped girl taking riding lessons at Pok Fu Lam, enjoys a chat with Lady MacLehose, Patron of the Hong Kong Physically Handicapped and Able-bodied Association.



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Some 4 000 Chinese on board 90 fishing vessels from the Haifeng and Lufeng counties of China sought shelter in Hong Kong amid rumours of a pending earthquake in their area...en pa tak kebud


Bertown wh

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Vietnamese refugees continue to pose a problem for Hong Kong and at the end of the year there were 16 000 still housed in temporary camps waiting for resettlement overseas.

Latest fashions in Hong Kong-made garments were modelled at a special Hong Kong presentation in London's new Barbican Centre, attended by many prominent personalities.



favoured the supply of labour in that age group. Overall, among females 15 and over, the participation rate is 49.5 per cent, rising to 79.7 per cent in the 20-24 group before women have their first child.


      Results of the 1981 Census showed a marked improvement in the education attainment of the population over the past 10 years, in line with those Chinese characteristics that demand the acquisition of ever higher standards as a means of achieving material and intellectual well-being. The proportion of the population with no schooling or kindergarten dropped from 20.3 in 1971 to 15.5 in 1981. On the other hand, the proportion of those with secondary or post-secondary education increased from 28.5 per cent in 1971 to 42 per cent in 1981. Those with only primary education decreased from 49.6 per cent in 1971 to 39.8 per cent in 1981. The proportion of university educated increased from 1.6 per cent in 1971 to 2.7 per cent in 1981.

      The great efforts made in the 'Seventies to achieve free and compulsory primary and three years of secondary education are clearly beginning to bear fruit and satisfy a people who set a high price on education as a definite means of an end in life. Only at university level are we relatively weak - 2.7 per cent, as against double that figure in Singapore. Only two per cent of the 16 to 20 age group is getting university education. But in the 16-17 age group, Hong Kong has 61 per cent in full-time education compared with Britain's 46 per cent, and in the 18-20 age group, 23 per cent compared with Britain's 16 per cent. But the university figures in Britain are 15 per cent and in the United States 25 per cent. Twice as many Hong Kong young people, many of whom are eligible for government loans and grants for higher education, are going abroad to university as Hong Kong is educating itself. The situation is better on the technical front where eight per cent of our workforce has some professional or technical training.

But plans are afoot that could, by 1983, begin to remedy being too thin at the top. It is quite possible that the plans could include a crash programme to be drawn up to substantially increase the intake, and in some cases the facilities of tertiary education. But that wouldn't be easy because universities are quality operations and the people with the right inspiration and expense to do the job are hard to find.

      According to the 1981 Census Hong Kong now has 257 896 people who were under- taking or have undertaken a professional or technical subject as their field of education in universities, post-secondary colleges, polytechnic, technical institutes, colleges of education and schools of nursing. Of these, 66 527 were in architecture and engineering, including design and industrial technology. The next biggest group of 55 619 are in arts and social science and the third biggest in business, commercial and computer studies, numbering 49 893. Education accounts for 29 305, medicine and health-related studies 23 400 and transport and other vocational studies, including social work and law was 14 588. Pure science studies accounts for 18 564.

Increased Income

On income, the 1981 Census shows that the proportion of Hong Kong households receiving less than $1,000 a month decreased from 70.3 per cent in 1971 to 9.5 per cent. On the other hand, the proportion of households with an income of $4,500 or more increased by 26 per cent. The overall median household income increased in the 10 years by 3.2 times from $708 to $1,425 in 1976 and $2,955 in 1981. Discounting the 1.3 times increase in consumer prices between 1971 and 1981, the real household income is estimated to have increased by 85 per



cent, giving an annual average increase of 6.3 per cent. The increase in real income over the past five years was 39 per cent or 7.4 per cent per year.

Looking to the future, if the existing trend continues, there would be a 27 per cent increase in average real household income over the next five years and a 51 per cent increase in 10 years, or 4.2 per cent a year. All this, in the face of having in the last decade to create 857 000 new jobs, gives some idea of the expansion of the Hong Kong economy, where small is beautiful, where direction is minimal and productivity is left largely to labour's and management's own drive for self-betterment.

The census recorded similar increases in the earnings from employment over the last five years among the high percentage of working population. The overall median income from main employment increased from $738 to $1,516. Discounting the 50 per cent increase in consumer prices between 1976 and 1981, the real income from employment has risen by 37 per cent, or an annual average increase of 7.1 per cent. And the figures are probably under-estimates of reality because many people are wary about disclosing their earnings to census enumerators. For instance, enumerators found only two per cent admitted to being 'moonlighters'.

A crude comparison of the income of Hong Kong's population with other countries can be made by studying the gross domestic product per employed person. Singapore at US$9,800 is only slightly ahead of Hong Kong at US$9,500, though Singapore has begun its second industrial revolution to reduce employment in intensive labour industries and to rely more heavily on management to upgrade productivity with fewer and more highly- skilled workers on the factory floor. Japan, at US$19,000 has twice Hong Kong's per capita income, though the gap would be narrower than the figures suggest because the levels are different. Only 300 Hong Kong families were last year drawing public assistance because the breadwinner was unemployed, and many of them could be genuinely unemployable.


The total economically active population aged 15 and over was 1 618 982 in 1971, and 2 503 804 by 1981. The increase in labour force was 884 822 between 1971 and 1981, an annual rate of increase of 4.5 per cent. The increase in labour force has been a result of the changing age-sex structure of the population, a higher degree of participation within the labour force as well as an increase in population through migration in recent years. This is expected to stabilise around 70 per cent. Projection into the next 10 years suggests a further growth in the labour force to 2 747 000 by 1986, and to 2 933 000 by 1991. This represents an annual average rate of increase of 1.5 per cent, and that will require a lot of economic expansion to absorb, will possibly create keener demand for jobs and will certainly necessitate more facilities for training the work force.

Over the past 10 years there has been a gradual decrease in the proportion of working population in manufacturing, agriculture and fishing, but an overall increase in the wholesale and retail trade, restaurants and hotels, construction, financing, insurance, etc. Manufacturing, as a proportion of the total work force, has declined from 47 per cent in 1971 to 41.2 in 1981. But the number of people employed in manufacturing has increased and it is still the most significant industry. Clothing is its biggest component, employing 23.3 per cent of the work force in 1971 but 29.6 per cent in 1981. Machinery increased in the same period from 10.3 to 18.2 per cent and metal products from 10.3 to 13.1 per cent. Textiles declined from 20.9 to 10.8 per cent and footwear from 14.3 to 11.9 per cent.

By occupation, the major changes in the structure of the workforce have been increased in the proportions of professional, technical and clerical workers as well as service workers.



There has been a decrease over the past 10 years in farmers and fishermen. Just over half the working population were in production occupations, about one-eight in clerical occupations and less than one-sixth in service occupations.

The decline from 3.9 to 2.0 per cent of people employed in the primary sector was to be expected as 70 000 people a year move into New Territories new towns and rural land is being swallowed up by the secondary sector because it makes more productive use of it, as well as improving the quality of life for the people who move there. Over the past 10 years the proportion of the population in the New Territories rose from 17 per cent in 1971 to 26 per cent in 1981. The relative share of the population in the conurbation of Hong Kong, Kowloon and New Kowloon dropped from 81 to 73 per cent. The marine population in the same period dropped to less than two thirds of what it was in 1971.


With the improvement in the general standard of living, the average life-span of both males and females in Hong Kong is now comparable with top developed countries. The expectation of life at birth in 1971 for a male was 67.4 years. Now it is 71.7. For females it was 75 years and now is 77.5. Females born in 1980 should live on average 5.8 years longer than males. The increase in average life-span in 10 years has been 3.4 per cent for males and 2.3 per cent for females. Life expectancy in Japan at 72.2 and 77.4 years is slightly higher than Hong Kong; but the Hong Kong figures are better than available statistics for the United Kingdom, the United States and Singapore.

Another prime indicator of our health standard is the infant mortality rate. There has been a substantial decline in the rate over the past 10 years from 17.7 per thousand in 1971 to 11.2 in 1980. The Hong Kong rate is lower than the United Kingdom, the United States and in Singapore, but not as low as the 8.9 per thousand in Japan. Hong Kong has eradicated the diseases of disability and mortality, such as smallpox, poliomyelitis and diptheria and reduced tuberculosis to the same manageable level as Western countries, eighth in incidence. And more of Hong Kong's people are now dying from the diseases of over-eating, cancer, heart disease and blood pressure.

      Having, through prevention by immunisation, eradicated the killers and the disablers, Hong Kong is able to concentrate more upon curative health and upon rehabilitation. More resources are going into hospitals and into helping the blind, the deaf, the physically and mentally handicapped and the very old. The more we add to the quality of life, however, the more public health divides into maintaining the curative health of the economically active and the future problem that curative medicine itself compounds, namely the increasing number who, as a result of curative health, reach the natural degenerative stage of life. That sector is bound to expand as the crude birthrate drops to 17 per 1 000 people, through family planning and the constraints of our highly competitive society and housing, which make the nuclear family more and more desirable.

      Chinese medicine is playing a decreasing role in our curative medicine, though most people believe there must be something good in that art which has survived thousands of years. Not all its practitioners have disciplined themselves. Quackery and charlatans have invaded that healing activity. It has tended to become an industry for the manu- facture of aphrodisiacs and the genuine practitioners have retreated and become defensive about their art. The inflated claims of some acupuncturists haven't helped added to credibility. Acupuncture does relieve pain but it has no pathological basis. The aura of mystery which it has created extends, with perhaps more relevance, to the Taoist faith which may have in its disciplines the key to the conscious triggering of man's autonomic




nervous system that biological device that springs into action, in emergencies, without conscious control.

      Hong Kong doctors who have trained in Western medicine are generally dedicated men who have established a high reputation in the Royal Colleges. One asset they share with the man on the work bench is an ability to absorb and apply the knowledge imparted by their teachers to whom they show the traditional Chinese respect, which however sometimes seems to be in-born reserve. The stresses and strains of learning seem to reinforce their dedication and examinations are seen, not as obstacles, but opportunities to respond and show they understand the obligations they must accept in advance in return for their privileged position in society. Of course, not all are like that. But the standards attained in the profession can perhaps be gauged by the recent establishment in Hong Kong of one of the five diagnostic virus laboratories in the world designated by the World Health Organisation. Abroad, some are specialising in bio-chemistry and genetic engineering.

Problems of Housing

Housing remains Hong Kong's most serious problem, not only because of the constraints of limited land, but also the cost of producing sites and an infrastructure as we encroach more and more on virgin land with marginal economic viability. We have built 480 215 units in the public sector, housing 2 126 400 people. No less than 50 per cent of our strained construction resources are being employed to maintain an on-going production effort of 30 000 units a year for renting and 12 500 units for home ownership which will be increased further in the next few years. This has, long since, made the Hong Kong Housing Authority the world's biggest landlord but its problems have sometimes grown faster than its solutions. The growing population, aggravated by immigration, reduced its permanent housing provision from 44 per cent of our population when it was 4.5 million people to 42 per cent when it reached 5.1 million. There is an enormous waiting list for public housing, and a big squatter population on our hills.

A volatile private sector has also not coped, despite publicly unpopular inducements, with the accommodation requirements of the people. Pressure on resources are due on the one hand to the self-betterment drive; and to developers on the other. Taking advantage of the imbalance in supply and demand developers have over-built some commercial property to the extent that mounting costs and prices have now hit a plateau, have started to move downwards. At the same time they have relatively neglected the residential flat market, except at the top end where profitability has been as great as it has been in commercial property.

Though the combined efforts of the public and private sectors last year property production became the leading factor of the economy producing domestic inflation, helped by those who take the dubious short-cut to self-betterment through big profits and speculation. The 1981 Census found 100 000 vacant newly-built flats in Hong Kong, 40 000 of them in the private sector, where prices have reached a point at which would-be home owners cannot afford to buy because the high prime interest rate to curb inflation has imposed bank mortgage rates of more than 20 per cent. These figures may be capable of explanation but, in the circumstances prevailing, it is hardly surprising public sector home-ownership scheme flats are snapped up at 25-35 per cent below market value and at the current mortgage rate of 17.1 per cent. Or, that there has been even some talk of outlawing speculators as criminals acting against the interests of society as a whole.

One solution now proposed is to eliminate, with strings on re-sale the cost of the land element in the home-ownership scheme to improve its attractiveness to 50 per cent of free



market value - perhaps even expanding the scheme if resources allowed. Another idea is to expand the small civil engineering element within the construction industry to produce more new land at an accelerating rate to lower the level of prices which the private sector offer at public auctions of newly-produced building sites. But the dilemma in all but gradual solutions advanced remains: can Hong Kong cut the value of all the property already developed and the enormous land-bank of sites for re-development which developers own - exceeding the government's own land-bank resources without perhaps sending the

excessively credit-supported private sector into a tailspin?

In stark contrast with the general housing problem has been in recent years the simple solution found to maintain good order in the public housing estates - the introduction of trained and qualified managers for every 6 000 units aided by staff who collect the rent on a door-to-door basis from 800 tenants. When they knock on every door they get an earful of the tenants' complaints. And if they don't do something about necessary repairs, cleanli- ness and lights, etc. they keep getting more earfuls each time they collect the rent until the complaints are remedied. This, together with re-building or refurbishing old estates, has saved the public estates from what was a developing menace of a ghastly backwoods atmosphere amenable to criminals.


The other major current problem in Hong Kong is getting to work on time to undertake the daily struggle for self-betterment. A people who put a high premium on time will, in the years ahead, expect solutions from the newly-created Secretariat for Transport with overall authority to cut through the problems of what people expect to continue as one of the cheapest public transport systems in the world, and at the same time to make profits. The constraints are the same as on everything in the pressure-cooker of an unfavourable terrain that restricts roads and forces huge public expenditure on flyovers, tunnels, footbridges, car parks and subways to maintain a reasonable surface traffic flow. One solution is to go underground as we have begun to do, with the imaginative financing of another extension to our Mass Transit Railway by selling the space over underground stations in choice locations at today's high property prices. Hong Kong may have to do more than that as our pressure-cooker hisses and boils and rewards for successful development of human resources create problems like more and more motor-cars.

Diluting Immigrants

There seems little chance that Hong Kong may go off-the-boil in the foreseeable years ahead. Though entry from China is now frozen to Hong Kong belongers, we are still receiving an average of 150 a day from legal immigration, which amounts to 44 750 a year, excluding the six illegals that get through for every 10 caught at the border and return. Police pick up four to five of these people a day in the urban areas. Either they give themselves up because they don't enjoy their submerged life, or relatives and neighbours report them, or police stop-and-search dragnets eventually catch them. New identity cards, to be issued first to the main illegal immigrant age group, will help flush out remaining illegals and convince others not to try to come.

This action, dictated by necessity, presents a great paradox in the Hong Kong social chemistry. Indigestible influxes have throughout its history impact on Hong Kong but this ought to be the first time we have properly guarded ourselves against dangerously diluting our social chemistry which, indeed, over the years has drawn its strength from immigration. But immigrants who are 50 per cent farmers, hunters and fishermen are hardly the people



we need today to fit our increasingly sophisticated social and economic pattern, nor are products of the Cultural Revolution with training in arms and too ready a disposition to open fire in a hold-up.

      Perhaps the most compelling reason for halting illegal immigration lies in one projection of the 1981 Census. Assuming that the half million who have arrived and been allowed to stay in the past few years follow the projected rate of natural increase of the population between 1981-86, Hong Kong's population in 1986 will increase not by seven per cent to 444 700 people (had there been no immigration from China) but to 477 800.

      It is too much of the same story since 1949. The total influx from that time until 1980 is estimated at 1 142 600. That figure represents 35 per cent of Hong Kong's total population growth of 3 295 700. However, the figure of 35 per cent is definitely an under-estimate of total immigration impact because part of the total population growth was also caused by the natural increase of the immigrants themselves during the 30-year period. And that increase cannot be separately estimated.

      Whatever may be the real total, it is the multiplier effect of successive influxes following the communist assumption of power in China in 1949, the shock fortnight 'invasion' of 100 000 in 1962 and the recent half million influx after the end of the Cultural Revolution. Added to this is one group tiny Hong Kong cannot really be expected to absorb. These are the thousands upon thousands of Vietnamese refugees who have flooded in over the past few years and have been given first asylum under the most compassionate policy of any country in Southeast Asia. They hardly fit the Hong Kong pressure-cooker and the world has recognised this, settling most in places like the United States, Canada and Britain. But many thousands still remain awaiting the generosity of those who have pledged to take them, but still haven't done so.

      Three times in 30 years Hong Kong, like the Arabian phoenix, has been through the fire of disruption and hardship, only to rise renewed from the ashes of its cyclical human inundation. And like that single, mythical bird, Hong Kong is unique as well as remarkable in this world.


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.

The value of domestic exports in 1981 amounted to $80,423 million - 18 per cent more than in 1980.

      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 the world's third-largest container terminal; a centrally-located airport with a computerised cargo terminal; and excellent world-wide communications. There are no import tariffs, and revenue duties are levied only on tobacco, alcoholic liquors, methyl alcohol and some hydrocarbon oils. Tax also is payable on first registration of motor vehicles, except 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 provide a stable framework in which commerce and industry can function efficiently and effectively with minimum interference. The government normally intervenes only in response to the pressure of economic and social needs. 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. Non-consumer electronics, which require relatively higher levels of technology, are gaining rapidly in significance. In 1981, exports of non-consumer electronic products were valued at $3,918 million, representing 43 per cent of total electronics exports.

      Following completion of the first two stages of development, the Tai Po Industrial Estate now provides 45 hectares of land for allocation to industries with a relatively high level of technology which cannot operate in the ordinary multi-storey factory buildings that house the bulk of Hong Kong industry. The third stage of the Tai Po Industrial Estate development has commenced and is expected to take three years to complete. This will add a further 20 hectares to the estate. A second industrial estate, which is under construction at Yuen Long, will provide an additional 65 hectares of land. The Yuen Long Industrial



Estate. is scheduled for completion in early 1983, but there are sites already available for allocation. Both industrial estates are managed by the Hong Kong Industrial Estates Corporation which is a statutory body established in March 1977. By the end of the year, 186 applications had been received by the corporation and sites had been granted to 35 companies in the Tai Po Industrial Estate and in the Yuen Long Industrial Estate.

Besides offering sites to industrialists for the construction of their own purpose-built factory buildings, the Hong Kong Industrial Estates Corporation is also in a position to offer pre-built factory premises for purchase or rental by those who wish to commence production with the minimum of delay. The standard factory blocks are four-storey, with units constructed with maximum flexibility to suit the varied requirements of potential occupiers.

      Outside the industrial estates, 53 sites were sold for industrial use. These had an overall area of 150 037 square metres and special development conditions were attached to 22 of them. These lease conditions called for the provision of heavy floor 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 accommo- date, in permanent buildings, squatter workshops and small operators cleared for public purposes. One of these factory blocks was completed in 1981 and another four are scheduled for completion in 1982.

Industrial Development Board

    Following the government's acceptance of the Advisory Committee on Diversification's recommendation that the government should seek to improve the provision of industrial support facilities and technical back-up services for manufacturing industries, the Indus- trial Development Board was established in August 1980 to plan, monitor and to advise on the provision of such services. It is chaired by the Financial Secretary and membership consists of representatives of trade and industry, the academic field and government officials. During 1981, the board advised and initiated action on various aspects of industrial development, such as the provisions of facilities on technical research and development, technology transfer, technical information for industry, quality certification and primary standards and applied research for Hong Kong industries.

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. The responsibility for advising on overall promotion policy and strategy is vested in the Industry Advisory Board. The task of drawing up a co-ordinated plan of investment promotion activities rests with the Industrial Promotion Committee, a standing committee of the Industry Advisory Board.

Major activities undertaken in 1981 included a series of industrial investment promotion missions to Australia, Austria, Britain, Denmark, the Federal Republic of Germany, Japan, Sweden and the United States. These missions were combined, where appropriate, with visits to or participating 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 430 factories either fully or partly-owned by overseas



interests. These factories employed 97 658 workers or 10 per cent of the total workforce in the manufacturing industry. The main sources of such investments are the United States, Japan, Britain, the Netherlands and Australia. 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 investment and other economic co-operation. Working through their three respective working committees on trade development, industrial development and communications, the committees organised industrial investment and trade study missions to and from Japan as well as trade and industrial investment seminars - featuring prominent speakers from Hong Kong - in several cities in Japan.

      The Hong Kong Committee and Japan Committee held their fourth joint meeting in February, 1981 in Osaka, 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 40 per cent of the total industrial workforce and producing some 42 per cent by value of total domestic exports. The spinning and weaving sectors experienced adverse conditions in 1981, due to sluggish demand and strong competition. Export earnings by the clothing sector improved over 1980, 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 1981 were valued at $33,590 million, compared with $27,793 million in 1980.

The output of cotton yarn was 126 million kilograms in 1981, compared with 164 million kilograms in 1980. Production of man-made fibre yarn and cotton/man-made fibre blended yarn was 39 million kilograms in 1981, compared with 44 million kilograms in 1980, and production of woollen and worsted yarn was 4.5 million kilograms, compared with 4.7 million kilograms the previous year. Most of the yarn produced was used locally.

The weaving sector, with 26 695 looms, produced 695 million square metres of woven fabrics of various fibres and blends, compared with 760 million square metres in 1980, The bulk of the production - 85 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 14 million kilograms of knitted fabrics of which 26 per cent was of man-made fabrics or blended cotton/man-made fibres, and 73 per cent was of cotton compared with 12 million kilograms in 1980. 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 spinning, weaving and knitting sectors. It handled a large amount of textile fabrics for bleaching, dyeing, printing and finishing. The processes performed included yarn texturis- ing, 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 286 229 workers or about 32 per cent of the total industrial workforce. Domestic exports of clothing in 1981 were valued at $28,288 million, compared with $23,258 million in 1980.



     Other Light Industries The electronics industry maintained its position as the second largest export-earner among Hong Kong's manufacturing industries. Domestic exports of electronic products in 1981 were valued at $9,174 million, compared with $8,306 million in 1980. The industry comprises 1 150 factories employing 89 485 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 regular alarm systems. The distinction between this industry and others, notably toys and watches, is becoming increasingly difficult to define because of the widespread application of electronics technology to consumer products in various other industries.

The plastics industry fared well in 1981. Domestic exports during the year were valued at $6,706 million, compared with $5,397 million in 1980. The industry has 5 055 factories and 89 147 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 1981. Domestic exports during the year were valued at $7,409 million compared with $6,576 million in 1980. The industry has 1813 factories employing 49 005 workers. Production includes both mechanical and electronic watches, clocks, watch cases, dials, metal watch bands, assembled watch movements and watch straps of various materials. It is estimated that Hong Kong now supplies over 30 per cent of world production of finished watches.

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

Heavy and Service Industries

Hong Kong shipyards provide a competitive repair service and build a variety of vessels. Several large shipbuilding and repair yards, operational but still under construction on Tsing Yi Island, provide services to the shipping industry. The Kwai Chung Container Terminal, which handled the equivalent of 1.55 million 20-foot containers in 1981, together with its complementary repair and manufacturing facilities, also enhances Hong Kong's position as the leading port in Asia.

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

The manufacture of machinery, machine tools and their parts provides support to other local industries and also contributes to Hong Kong's export trade. Of particular impor- tance 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 1981 amounted to $260,537 million, an increase of 24 per cent over 1980. Imports went up by 24 per cent to $138,375 million, domestic exports by 18 per cent to $80,423 million and re-exports by 39 per cent to $41,739 million. Domestic exports and re-exports together, valued at $122,163 million, registered an increase of 24 per cent.

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



      Hong Kong is almost entirely dependent on imported resources to meet the needs of its over five million population and its diverse industries. In 1981, imports of raw materials and semi-manufactured goods totalled $55,895 million, representing 40 per cent of total imports. The principal items imported were fabrics of man-made fibres ($6,585 million), watch and clock movements, cases and parts ($4,187 million), iron and steel ($3,842 million), woven cotton fabrics ($3,512 million), plastic moulding materials ($2,705 million), and transistors, diodes, semi-conductors and integrated circuits ($2,689 million).

      Imports of consumer goods, valued at $36,975 million, constituted 27 per cent of total imports. The major consumer goods imported were clothing ($5,219 million), radios, tele- vision sets, gramophones, records and tape recorders ($3,735 million), diamonds ($3,625 million), watches ($3,069 million), jade and precious stones, ivory, jewellery, goldsmiths' and silversmiths' wares ($1,561 million).

Imports of capital goods amounted to $20,257 million, or 15 per cent of total imports. Imported capital goods consisted mainly of transport equipment ($3,427 million), elec- tronic components and parts for machines ($2,916 million), electrical machinery ($2,589 million), industrial machinery other than electrical and textile machinery ($1,128 million), and office machines ($926 million).

      Imports of foodstuffs were valued at $14,660 million, representing 11 per cent of total imports. The principal imported food items were fruit ($1,998 million), fish and fish pre- parations ($1,974 million), vegetables ($1,708 million), and meat and meat preparations ($1,631 million).

Some $10,588 million of mineral fuels, lubricants and related materials were imported in 1981, representing eight per cent of total imports.

      Japan continued to be the principal supplier of imports in 1981, providing 23 per cent of the total. China was the second major supplier, accounting for 21 per cent of total imports, and 49 per cent of imported foodstuffs. The United States ranked third, providing 10 per cent of total imports, followed by Taiwan, Singapore, Britain, the Republic of Korea and the Federal Republic of Germany.

      Clothing remained the largest component of domestic exports in 1981, valued at $28,288 million or 35 per cent of the total. Exports of miscellaneous manufactured articles, consisting mainly of plastic toys and dolls, jewellery and goldsmiths' and silversmiths' wares, and other plastic articles, were valued at $13,235 million, representing 16 per cent of total domestic exports. Photographic apparatus, equipment and supplies, optical goods, watches and clocks amounted to $8,101 million, or 10 per cent of the total. Domestic exports of electrical machinery, apparatus and appliance, valued at $5,812 million, contributed another seven per cent of the total. Other important exports included telecommunications and sound recording and reproducing apparatus and equipment (seven per cent of the total), textiles (seven per cent), office machines and automatic data processing equipment (three per cent), and manufactures of metals (three per cent).

The direction and level of Hong Kong's export trade are very much influenced by economic conditions and commercial policies of major overseas markets. In 1981, 61 per cent of all domestic exports went to the United States and the European Economic Community. The largest market was the United States ($29,200 million or 36 per cent of the total), followed by Britain ($7,710 million or 10 per cent) and the Federal Republic of Germany ($7,048 million or nine per cent). Domestic exports to Japan and China increased to $2,940 million and $2,924 million respectively, each representing four per cent of total domestic exports. Other important markets were Australia, Canada and Singapore.



Exports to the members of the Organisation of Petroleum Exporting Countries (OPEC) continued to grow in 1981.

      Re-exports continued to increase substantially in 1981, accounting for 34 per cent of the combined total of domestic exports and re-exports. The principal commodities re-exported were textiles ($6,981 million), photographic apparatus, equipment and sup- plies, optical goods, watches and clocks ($3,393 million), electrical machinery, apparatus and appliances ($3,069 million), pearls, precious and semi-precious stones ($2,342 million), road vehicles ($2,340 million), and clothing ($2,197 million). The main countries of origin of these re-exports were China, Japan, the United States and Taiwan. The largest re-export markets were China, the United States, Indonesia and Singapore.

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 practices, to the full, the rules of the General Agreement on Tariffs and Trade (GATT). 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 supervises its implementation. A Hong Kong representative sat on the TSB as a member in 1981.

As a result of negotiations under the MFA, bilateral agreements were concluded during the year with Sweden and Switzerland. The agreements concluded with Austria and Finland in 1980 remained effective until January 1982 and July 1982 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 Kong's 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 Authorization Scheme operated by the Trade Industry and Customs Department. On January 1, 1981, Greece acceded to the EEC to become its tenth member. Following three rounds of consultations, agreement was reached with the EEC on the adaptation of the Hong Kong/EEC Textiles Agreement to take into account the accession of Greece.

Following consultations with the United States in March 1981, Hong Kong agreed that in 1981 it would not use the carryover and carryforward provisions of the agreement on certain cotton and man-made fibre apparel product categories and that it would limit utilisation of swing for some of these categories. In return, the 1981 restraint limits of certain cotton product categories were increased.

The Hong Kong/United States administrative arrangements on trade in certain non- rubber footwear which came into effect in October 1978 expired on June 30, 1981. The United States decided not to seek an extension of the arrangement with Hong Kong.

The bilateral textile agreement with Canada, which covers most of Hong Kong's exports of cotton, man-made fibre and wool textiles to Canada, expired on December 31, 1981. Following negotiations between Hong Kong and Canada in July 1981, an ad referendum agreement was reached providing for the extention of the bilateral agreement, with certain modifications, for a further period of one year commencing January 1, 1982.



      Norway's action against certain textile imports, 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 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 allocating 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. Notwithstanding the GATT Council's adoption in principle of the report in June 1980 and recommendation to the Norwegian Government to make its action consistent with the GATT as soon as possible, bilateral consultations subsequently held between the two governments failed to resolve the issue. The Norwegian Government decided in the final round of consultations to terminate the consultations and continued its unilateral import action into 1981.

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 40 countries agreed to reduce their tariffs by about one-third over a period of seven years commencing in 1980. The second stage of the reductions was implemented in 1981. 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 Article 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 Procedures; Agreement on Implemen- tation of Article VII of the GATT (Customs Valuation Code) and the Agreement on Government Procurement. With the last two agreements coming into force on January 1, 1981, all of these agreements have become effective.

The second four year term of the MFA expired at the end of 1981. Intensive discussions took place during late 1980 and 1981 in Geneva under the auspices of the GATT to determine its future, with Hong Kong participating fully in the discussions. Moreover, the developing exporting members of the MFA held a series of formal meetings to co-ordinate their positions, the first of which was held in November 1980 in Bogota, Colombia. Three more meetings, attended by the Hong Kong delegation, were held in the course of 1981 in Jakarta, Hong Kong and Delhi.

      Negotiations in the GATT on the future of the Agreement Regarding International Trade in Textiles (commonly referred to as the MFA) were concluded at a meeting of the Textiles Committee, which lasted from mid-November to mid-December 1981. The meeting arrived at a protocol extending the agreement for a period of four years and seven months (i.e. from January 1, 1982 to July 31, 1986).

The MFA provides the multilateral framework within which participating countries can negotiate bilateral restraint agreements governing their textile trade. Some concessions, which contain safeguards which should offer some protection in bilateral negotiations for the exporting countries, were made to secure the new MFA. The new protocol also builds in additional discipline for the invocation of restraints and preserves the original text of the MFA.



      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. Following the decision by the Norwegian Government to include Hong Kong as a beneficiary in its scheme as from August 1, 1981, Finland becomes the only developed country operating a preference scheme that excludes Hong Kong. Some products from Hong Kong are however specifically excluded from the schemes operated by Australia, Austria, Japan, Norway and Switzerland. 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. The difference in treatment has been the subject of continuing official exchanges which, in 1981, led to a decision by the Japanese Government to reduce the number of items in the list of Hong Kong exceptions from seven to five with effect from April 1, 1981.

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.

Since August 1, 1980, all textile imports have been 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 textile export control system.

Work continued in 1981 on the computerisation of the system controlling textile exports to the EEC. This represented the second phase of a programme of computerisation being carried out by the Trade Industry and Customs Department in co-operation with the government's Data Processing Division; the first phase, which dealt with the computerisa- tion of the system controlling textile exports to the USA, was completed in August 1979.

In accordance with the action taken by the United Kingdom and the other Member States of the European Economic Community, the government announced, on February 11, the lifting of economic sanctions against Iran. This means that the export licensing requirements regarding trade with Iran are now the same as those applicable to other countries.

mostly made

With Hong Kong's dependence on the export of manufactured goods 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, the Federation of Hong Kong Industries, the Chinese Manufac- turers' 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 1981 was estimated at $20,834 million, of which $12,581 million was covered by government-issued certificates.

      Form 'A' certificates are issued by the Trade Industry and Customs Department to support exports claiming preferential entry into countries which grant tariff preferences to Hong Kong under generalised preference schemes. The five government-approved certifi-



cation organisations have been approved to issue Form 'A' certificates for exports to Canada, Japan, Norway and Switzerland. The value of exports covered by Form 'A' certi- ficates in 1981 amounted to $15,975 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 1981 was $9 million.

      An estimated 45.8 per cent of Hong Kong's domestic exports are covered by origin cer- tificates of one type or another - 35.3 per cent of them by government-issued certificates.

     The Hong Kong Trade Facilitation Council (TFC) was incorporated during the year to take over the functions and activities of the former Trade Facilitation Committee, which include the simplification of trade documents and procedures. The new council is partially subvented by the government and composed of representatives of government, trade and industrial organisations.

      The TFC organised the Far East-Pacific Trade Facilitation Conference in March. Speakers from the USA, the United Kingdom and Canada were present to discuss current developments in the international scene. The conference was attended by more than 100 local and 25 overseas delegates. Representatives of the TFC also 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.

In 1981, the Trade Investigation Branch of the Trade Industry and Customs Department was re-organised into three law enforcement branches, namely, the Operations Branch which functions in three regional offices located in Hong Kong, Kowloon and the New Territories, the Investigation Branch and the Weights and Measures Branch.

The Operations Branch is responsible for the inspection of factories and consignments connected with applications for certificates or origin, import/export licences, trade declara- tions and manifests. It is also responsible for industrial surveys on specific industries, trade and industrial problems, and foreign investments. Additionally, the branch is responsible for handling trade complaints.

In 1981, the Operations Branch completed 28 813 inspections of factories and consign- ments and 1 863 costing checks in connection with applications under the Generalised Systems of Preference (Form 'A').

The branch also completed 17 322 inquiries and verifications relating to trade declara- tions and manifests, and conducted 3 728 associated assessments resulting in the collection of $1.7 million in ad valorem charges and administrative penalties.

The Investigation Branch is responsible for investigations into origin certification and import/export licensing frauds. It is also responsible for the protection of consumers against false trade descriptions, false marks and mis-statements in respect of merchandise and in this respect provides the secretariat for the Trading Standards Advisory Committee. The branch also carries out investigations into infringements of industrial design copyright.

In 1981, the Investigation Branch completed 1 218 investigations, resulting in the imposi- tion of court fines amounting to $5.6 million and the seizure of goods worth $25 million. Close liaison was maintained between the branch and various overseas customs administra- tions in combating origin and export licensing frauds.



The Trading Standards Advisory Board met four times during the year. It appointed the Precious Metals Marking Order Sub-Committee which also met four times. The sub- committee's recommendation to introduce a statutory order for the compulsory marking of gold and gold alloy products provided in the course of trade in Hong Kong was endorsed by the main committee and forwarded to the government for consideration. It is expected that the Marking Order will be enforced during 1982.

The Weights and Measures Branch was set up to introduce a system to protect consumers against short weights and measures. Legislation aimed at strengthening the existing laws in this field is in preparation.

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, certifi- cation 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 Textiles Advisory Board. On trading standards, the director is advised by the Trading Standards Advisory Committee, which was established in June 1981.

The Trade Advisory Board comprises representatives of various sectors including commerce, 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. 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.

      The Trading Standards Advisory Committee consists of representatives of consumer interests as well as major trading associations.

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 who is also appointed as the Commissioner of the Customs and Excise Service, a disciplined and uniformed force.

The Department of Trade 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 develop- ments which may affect Hong Kong.

      The Commissioner of Trade is assisted in Hong Kong 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 Portugal, Spain and Turkey - includ- ing the preparation for, and the conduct of, trade negotiations, and the collection and dis- semination 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 multilateral

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Santa's Playground

Toys and games have never failed to excite the minds of young and old alike. For walking into a toy shop is like entering a world of make-believe where the imagina- tion is stimulated by wandering through an assortment of fantasies; a child can become an astronaut or a knight in shining armour. But the supply of toys is serious big business in Hong Kong, which is the world's largest manufacturer of these im- plements for fantasy. In 1981, for example, more than $6,000 million worth of toys and games were exported from Hong Kong, with the largest markets being the United States, Europe and Latin America. And more than 60 000 people are actively engaged in the business of making the world smile, whether they are placing microscopic computer chips in electronic games or sewing hair on cuddly dolls. Many of the territory's 2 000-odd toy fac- tories have won international awards for design and compete vigorously for places at toy fairs around the world to market their goods. At the seventh Hong Kong Toy and Gift Fair held in October, 200 booths were manned by local manufac- tures and attracted some 5000 buyers. They came looking for ingenuity, fun and good quality attributes which have contributed so much to the success of Hong Kong's toys. Quality, in particular, is carefully guarded by the Toy Industry Committee which has been set up by the Federation of Hong Kong Industries.






Previous page: Engrossed in a world of colourful make-believe, these children play out their fantasies with toys which suit every occasion. Left: Toys are found all over Hong Kong: in sophisticated stores; suburban shops; and street stalls.




   Electronic games and toys are making a mark on the market. Toys with electric motors account for about 10 per cent of toy exports.

















w 3



Above: One of the most time-consuming aspects of toy making is cutting a scaled- down metal mould from a hand carved epoxy model.

Below: With more than $6,000 million worth of toys being exported from Hong Kong a year, automation has become a necessity to keep pace with demand.

Above: But it all starts at the drawing board as shown here where ́a mechanical engineer draws the fine lines for a compli- cated model train set.

Below: Traditional toys never die and one of the most popular items is still the stuffed doll, each with its hair neatly combed before final assembly.


Below: With heads down, these nimble- fingered dress-makers sew millions of dresses with colourful patterns for the many dolls produced in Hong Kong.




Above: Television shows have prompted the manufacture of many space heroes. Here Yoda from Star Wars is being packed for shipment to the United States.



Below: Brain-teasing, computer-based games and educational aids by the score are checked in a manufacturer's display





Above: Deft hands test the circuitry and components of complicated computer games in a Kowloon factory.


Some 2000 children take advantage of this toy library run by volunteers at a public housing estate. More such libraries are planned for other estates throughout Hong Kong."·



aspects of its external commercial relations and for gathering information and formulating policy recommendations on issues affecting Hong Kong and general commercial 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 commercial relations and internal 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 four assistant commissioners who head respectively the Environment and Resources Division, the Industrial Development Division, the Promotion Consultancy Division and the Science and Technology Division. The last two divisions were established in late 1981.

      The Environment and Resources Division assists industry in its relations with other government departments, and deals with specific issues affecting industry such as infrastructure, industrial information survey and research and effects of environmental legislation on industry. It also monitors the oil supply in Hong Kong.

The Industrial Development Division is responsible for the policy aspects of industrial investment promotion, including the formulation of an overall promotion strategy. The division co-ordinates the organisation of industrial promotion programmes with industry and trade organisation. It also advises the government on industrial land matters.

      The Promotion Consultancy Division is responsible for providing comprehensive information about Hong Kong to potential investors and assisting them in the evaluation and establishment of manufacturing projects in Hong Kong. Overseas industrial promo- tion offices are being established in Japan, the United States, Continental Europe, and the United Kingdom.

       The Science and Technology Division comprises the secretariat for the Industrial Development Board established by the government to advise on the provision of industrial support facilities and technical back-up services, transfer of technology, and research and development; the government Standards and Calibration Laboratory which will provide calibration services in respect of certain electrical and electronics measurements and standards; and a Standards Branch responsible for the administrative aspects of product standards, quality certification services and accreditation of testing laboratories.

      The Commissioner of Customs and Controls is assisted by a deputy commissioner, and two assistant commissioners one of whom heads the Trade Controls Division and while the other is in day to day operational charge of the Customs and Excise Service.

       The Trade Controls Division is responsible for origin certification, the import and export licensing of commodities other than textiles and a rice control scheme. This responsibility includes the routine inspection of premises and fraud investigations. The division is also involved in the development and enforcement of trade description, design copyright and weights and measures law; and the handling of trade complaints generally.

       The Customs and Excise Service is a disciplined force. 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 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 other 16 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 publications.

      The staff of the council carried out an extensive trade promotion programme in 1981, organising about 70 major international projects. These included an economic mission to Paris; and another to the United Arab Emirates, Egypt and Germany. These missions 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 gala fashion show at the Salon International du Prêt-à-Porter Fèminin in Paris in April, and participation in many international trade fairs around the world - notably, the Nuremberg International Toy Fair, Cologne International Houseware Fair, the Swiss Industries Fair in Basle, MACEF International Fair in Milan, Birmingham International Spring Fair, Frankfurt Spring Fair, Summer Consumer Electronics Show and National Hardware Show in Chicago, Winter Consumer Electronics Show in Las Vegas, Tokyo Chain Stores Fair, Japan Electronics Show in Osaka, and Cairo International Fair.

      In addition, the Trade Development Council organised business group visits to Europe, North and South America, the Middle East, Japan and Australia to explore new markets as well as to buttress long established ties. In reciprocation, the council received inward missions from Brazil, Britain, France, Germany, China, Japan, Mexico, Nigeria, Sweden and the U.S.

In Hong Kong, the council was the sole organiser of the seventh Hong Kong Toy and Gift Fair and acted as advisor to the first Hong Kong Electronics Fair, both held in October.

      The Trade Development Council produces four regular publications, mainly for cirulat- ion 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. The council also puts out a series of multi-lingual newsletters to keep overseas businessmen informed of the latest financial and industrial developments in Hong Kong.

      In 1980-1, the Trade Development Council opened its first African office in Nairobi, Kenya, and its second Japanese office in Osaka. Besides its headquarters in Hong Kong, and a local branch in Tsuen Wan, the council has staff stationed in 19 other cities throughout the world. These are: London, Manchester, Frankfurt, Hamburg, Paris, Marseille, Stockholm, Zurich, Vienna, Milan, Amsterdam, New York, Chicago, Los Angeles, Dallas, Toronto, Panama City, Tokyo and Sydney. The council is also represented by consultants in Dubai, the United Arab Emirates; Barcelona, Spain; and Athens, Greece.

Hong Kong Export Credit Insurance Corporation

The Hong Kong Export Credit Insurance Corporation (ECIC), the specialist government- owned insurance agency, protects exporters against the possibility of non-payment for goods or services supplied abroad on credit terms.



      ECIC has a capital of $20 million and the liabilities it undertakes are guaranteed by the Hong Kong Government to the extent of $2,500 million.

      The risks it protects exporters against include both the commercial causes of loss such as insolvency, bankruptcy, default and repudiation, and the political/economic causes of loss, such as war, shortage of foreign exchange, import bans and force majeure in Hong Kong's overseas markets.

      Established in late 1966, the corporation has insured the export proceeds of about $24,000 million worth of goods and services supplied abroad by more than 1 100 companies, $3,750 million in the last year alone. ECIC operates on a commercial basis, and must cover its costs and losses by premium earnings. Premium income since the start of its operation is approximately $110 million, and $60 million was paid in claims.

      At any one time approximately $1,000 million worth of credits are at risk overseas, insured by ECIC and in the present economic circumstances of many countries this represents a sizeable risk portfolio.

In 1981 the position of many developing countries continued to deteriorate and their ability to improve the standards of living was impaired by high import costs of fuel, high interest rates for their borrowings and worsening export prospects. Some of the developed countries also faced difficulties because of weakening consumer demands, and the resulting pressures on margins for Hong Kong's exporters were a feature of the year.

      These exporters therefore appreciated all the more ECIC's credit assessment and credit control system - an additional function to its insurance programme.

More cases of payment difficulties arose in 1981 than in any previous year, due to the pres- sures faced by businessmen around the world, and ECIC's claims division was kept busy in assisting policy-holders in trying to collect these receivables. In most cases these attempts were successful; however during the year, 112 claims cases arose, involving a payout of $9.9 million; additionally provision had to be made for another 50 cases of $8.8 million. As a member of the Interational Union of Credit and Investment Insurers (the Berne Union) since 1969, ECIC is in regular consultation with its fellow credit insurers within the union. It has benefited greatly through a constant exchange of views on underwriting techniques, credit experience and information on the economic and financial situation of importing countries all over the world. The 1982 General Meeting of the Berne Union will be held in Hong Kong during February. Some 80 overseas delegates from about 28 countries are expected to attend this conference.

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

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

Hong Kong Productivity Council and Centre

The Hong Kong Productivity Council, a statutory organisation established in 1967, is responsible for promoting the increased productivity of industry in Hong Kong. The council comprises a chairman and 20 members, all appointed by the Governor, represen- ting management, labour, academic and professional interests as well as 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, electronic data processing facilities, a low cost automation unit, an industrial chemistry laboratory, a metal finishing laboratory, a heat treatment unit, an environmental control laboratory, a technical reference library and an on-line information retrieval service.

The centre was engaged during the year in detailed planning of new industry support services. A series of proposals aimed at providing an improved support base for industry were submitted to the government. Funding was approved for an expanded technical information service; the initial phase of starting a metals industry development unit; and a small and medium industry extension advisory service. The Industrial Development Board approved the centre's proposals to carry out a techno-economic study on the electronics industry and to enlarge its Microprocessor Application Laboratory.

The year under review saw a further expansion of most of the centre's services. There was an increased demand for consultancy services both from local and overseas investors. The centre was also increasingly called upon by the government to undertake techno-economic research projects involving different skills and inter-divisional team work. Notable among these were the Junk Bay Survey, the techno-economic study on the metals and light engineering sectors and a survey on staggered working hours and flexitime commissioned by the government.

The response to the on-line retrieval service, which provides instant access, by computer- linked satellites, to some 150 data bases world-wide, was encouraging. Clients served included various government departments, manufacturing and construction companies, engineering firms and academic institutions. The long established current awareness system was renamed 'HKPC Infosearch Abstracts' to include a more comprehensive coverage of abstracts from current technical and management literature from English and Chinese language periodicals. The centre publishes two quarterly bilingual bulletins on plastics and furniture technology. A specialised environmental control bulletin was being developed and plans were in progress to set up similar units to serve the metals/light engineering and electronic sectors.

       The centre has offered an environmental control service on a limited scale for several years, but during the year under review, this activity was incorporated into a major aspect of the Small and Medium Industry Extension Advisory Service. Building on the basis of the Environmental Control Service, the centre intends to expand the Small and Medium Industry Extension Advisory Service to advise industry in other related areas, such as energy conservation and waste recycling.

During the year, the centre organised 310 training courses, covering different aspects of management; advanced programming and EDP appreciation courses; and a diversified range of technology programmes for such industries as textiles and garments, plastics, metal work- ing, electrical and electronic products, building and construction. It completed over 220 con- sultancy and technical assistance projects and organised three industrial exhibitions on mi- croprocessor technology, garment equipment and metal finishing. It sponsored four study missions and continued its publication programmes to provide up-to-date information on Hong Kong industry, trade, employment, salaries and technology transfer opportunities.

As a member of the Asian Productivity Organization (APO), Hong Kong was represen- ted at the 1981 meeting of the Governing Body in Tokyo. The centre, on behalf of Hong Kong, hosted a regional seminar on Product Design in May 1981.



       The centre is a participating organisation of the TECHNONET Asia, which was incorporated as an independent legal entity in April 1980. The executive director of the centre was elected chairman of the organisation for a second term.

Other Trade and Industrial Organisations

The Hong Kong General Chamber of Commerce, founded in 1861, is the oldest trade and industrial association in Hong Kong. Its membership, comprising over 2 600 companies covering all branches of commerce and industry, is represented on a number of government and other boards and committees. It is also a member of the International Chamber of Commerce. The chamber is actively involved in promoting Hong Kong's trade and attracting new industry. It is approved by the Economic and Social Commission for Asia and the Pacific (ESCAP) to arbitrate in commercial disputes.

The Federation of Hong Kong Industries, established by statute in 1960, has a membership broadly representative of all industries. 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. It also provides services in preshipment inspection, quality control, production inspection, indus- trial research, product development and technical consultancy.

       The Chinese Manufacturers' Association of Hong Kong (CMA), which was established in 1934, has some 2 200 members. The association, a member of the International Chamber of Commerce, has played an important role in the industrial development in Hong Kong. It is active in promoting new product development and holds the annual Hong Kong New Products Competition. The association's Testing and Certification Laboratories provide a variety of services which include product testing, certification, production and preshipment inspection, and technical consultancy. Seminars and exhibitions are held to introduce new technology and encourage new investment opening. To promote trade, it operates a trade enquiries section.

The association is actively involved in the promotion of industrial safety, and takes a keen interest in community and social welfare services. It 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 and charged with the responsibility of protecting and promoting the interests of consumers of goods and services. It consists of a chairman, an executive director and 14 members representing different walks of life in the community. Although financed by an annual subvention from the government it is independent in formulating and implementing its own programmes.

       The council's staff of 56 are involved in administration, legislation, complaints, advice, testing, research and survey, education and information, and publications. These activities are directed by nine standing committees which are served by members of the council. In



addition, ad hoc committees are set up whenever necessary to deal with special consumer issues and concerns. The full council is convened once a month.

A new consumer advice centre first in the New Territories and the fourth of the council throughout Hong Kong was opened in Tsuen Wan in January, 1981. Towards the end of the year, plans were in hand to open one to two more advice centres in Kowloon.

      The number of consumer complaints was 7 289 and in 90 per cent of the cases which could be substantiated in favour of the aggrieved parties, the council was successful in effecting reasonable redress to the consumer. In certain cases, the council assisted consumers to pursue their complaints through the Small Claims Tribunals for a more satisfactory settle- ment. Some cases were referred to the relevant government law-enforcing departments.

      During the year, the council completed a study and submitted to government a 62-page report on consumer product safety. The report calls for legislative control to protect the unwary public from hazardous consumer products. It also recommends, among other things, the formation of a separate government department to make regulations and standards relating to consumer product safety. The report is still under consideration by government which has sought the views and comments of various parties concerned.

      In April, 1981, the Trade Descriptions Ordinance came into force. It is designed to provide better consumer protection in such matters as false and misleading trade descrip- tions, including advertisements and oral statements by salesmen, spurious products and compulsory marking of goods. A Trading Standards Advisory Committee, on which the council is represented, was set up by the government to advise on the effective enforcement of the new legislation. This resulted in the formation of a sub-committee to study speci- fically the marking of gold and other precious metals.

The need for legislative control over travel agents continued to be a matter of public debate from time to time during the year. In August, the council conducted a new survey on travel agents in Hong Kong and in October, a senior officer of the council visited Singapore to study the legislative enforcement of travel agents there.

       The council's efforts in the field of consumer education and information have resulted in growing consumer awareness in Hong Kong. The council was kept virtually in daily contact with the mass media which sought its views on a wide range of matters affecting the interests of consumers. Prominent coverage was always given to Choice, the council's official monthly publication. Other activities included an annual consumer education seminar, talks, pamphlets and displays. Work started in conjunction with the Education Department on a new teaching kit and some 1 000 senior secondary students conducted a large-scale price survey near Christmas. The council strongly believes that an informed consumer exercising rational choice in the purchase of goods and services, is probably the best means of consumer protection in the long run.

During the year, the council conducted comparative testing on a diversity of consumer products including steam irons, portable typewriters, contact lens cleansing solutions, laundary detergent powders, 110 pocket cameras, peanut oils, electronic calculators, audio cassette tapes, blackcurrant and grape drinks, liquefied petroleum gas cooking appliances and light dimmers. These reports, published in Choice, provided consumers with independ- ent and impartial information to secure value for money in the marketplace.

In May, a delegation of the council visited Guangdong on the invitation of the Guangdong Quality and Quantity Association which expressed an interest in the work of the council. This provided a valuable opportunity for the council to exchange views on matters of mutual interest as many of the consumer goods available in the Hong Kong



      market are imported from China. In June, the council attended the 10th World Congress of the International Organisation of Consumers Unions (IOCU), which re-elected the council as one of its council members, and its executive director as Chairman of the Consumer Education Committee.

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 (CITES), has been in force since 1976. Under the ordinance licences are issued, as appropriate, to allow legitimate possession of and 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.


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. In the intervening period there has been a generally increased public awareness of the topic and progress has been made in the adoption of SI particularly within government and in specific areas of the private sector.

       In the public sector postal services were metricated with effect from August 5, 1980; Public Works Department, Urban Services Department and Rating and Valuation Depart- ment and Education Department now use metric units exclusively and all other depart- ments are well advanced in their implementation programmes. In the private sector the plastics industry set up a programme for metric conversion commencing in April 1981 and is scheduled for completion by 1983; metric sales of petrol and petroleum products took place in 1981, sales of consumer goods at wholesale level are almost entirely in metric units and adoption of metric units at retail level is becoming more widespread.

       A continuing effort was made in the fields of publicity and public education. Activities included poster campaigns, a television commercial and educational programme, and the publication of leaflets, school quizzes, metric games and sports events.

Trade Marks and Patents

Trade Marks are registered under the Trade Marks Ordinance, which is based on the United kingdom Trade Marks Act 1938. The procedure is laid down in the Trade Marks Rules, and the prescribed forms may be obtained free from the Trade Marks Registry, Registrar General's Department. Every mark, even if already registered in Britain or any other country, must satisfy all the requirements of the Hong Kong Trade Marks Ordinance before it may be accepted for registration. During 1981, 6 140 applications were received and 2 530, including many made in previous years, were accepted and allowed to be advertised. A total of 2 620 marks were registered. The principal countries of origin were:



Hong Kong


West Germany


United States








United Kingdom




Australia Spain


The total number of marks on the register at December 31, 1981 was 37 150.


      Although there is no original grant of patents in Hong Kong, the Registration of Patents Ordinance provides that any grantee of a United Kingdom patent or European Patent (UK) may, within five years from the date of its grant, apply to have the patent registered in Hong Kong. Registration of a United Kingdom patent or European Patent (UK) in Hong Kong confers on the grantee the same privileges and rights as if the patent had been granted in the United Kingdom with an extension to Hong Kong. The privileges and rights 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 654 patents were registered during the year, compared with 718 in 1980.

The Trade Marks (Amendment) Rules 1981, which came into operation on September 1, 1981, provided for an increase of fees payable under the Trade Marks Rules. Similar increases were made in respect of the Registration of Patents by the Registration of Patents (Fees) Amendment Rules 1981, which became operative on November 16, 1981.


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 estab- lished 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 1981. 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 the public were invited to comment on it. Numerous individuals and organisations submitted detailed comments, both on the matters dealt with in the bill and on other aspects of company law, and these are still under consideration by government.

On incorporation, a company pays a registration fee of $300, plus $4 for every $1,000 of nominal capital. In 1981, 15 877 new companies were incorporated - 1 281 more than in 1980. The nominal capital of new companies registered totalled $4,749 million. Of the new companies, 192 had a nominal share capital of $5 million or more. During the year, 4 358 companies increased their nominal capital by amounts totalling $57,870 million, on which fees were paid at the same rate of $4 per $1,000. At the end of 1981, there were 96 261 local companies on the register, compared with 81 206 in 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, 207 of these companies



were registered and 58 ceased to operate. At the end of 1981, 1 547 companies were registered from 55 countries, including 361 from the United States, 206 from Britain and 170 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 maintaining similar deposits elsewhere in the Commonwealth. Under the Life Insurance Companies (Amendment) Ordinance, 1981, and the Fire and Marine Insurance Companies Deposit (Amendment) Ordinance, 1981, which came into effect on January 9, 1981, companies transacting life, fire or marine insurance business and to which no exemption has been given are required to have a minimum paid-up capital of $5 million and a solvency margin of $2 million (or $4 million when the company carries on both life and fire or marine insurance business). The approval of the Registrar General must be obtained for transac- ting motor vehicle third party risks insurance business. There are 286 insurance companies, including 126 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 Companies (Capital Requirements) Ordinance 1978. This ordinance, subject to certain exceptions, 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.

During the year, progress was made on the drafting of a new, comprehensive Insurance Companies Bill to cover all classes of insurance business. It is expected the bill will be submitted to the Legislative Council in the first half of 1982.

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

Money Lenders

The old system of registration of money lenders which had been in force since 1912 was superseded on December 12, 1980 by a licensing system introduced by the new Money Lenders Ordinance which came into effect on that date. Anyone wishing to carry on business as a money lender now has to apply to a Licensing Court consisting of a magistrate and two lay assessors. In the first instance, the application is submitted to the Registrar General as Registrar of Money Lenders and a copy is sent at the same time to the Commissioner of Police, who may object to the application. The application is advertised and any member of the public who has an interest in the matter also has the right to object to the application.

The ordinance provides severe penalties for a number of statutory offences such as carrying on an unlicensed money lending business. It also provides that any loan made by an unlicensed money lender shall not be recoverable by court action. There is a completely new provision that any person, whether a money lender or not, who lends or offers to lend money at an interest rate exceeding 60 per cent per annum, commits an offence and that no



agreement for the repayment of any such loan or any security given in respect of such loan shall be enforceable.

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 104 petitions in bankruptcy and 142 petitions for the compulsory winding-up of companies. The court made 72 receiving orders, and 97 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 1981 amounted to $42.6 million. In addition to these compulsory winding-up, 502 companies went into voluntary liquidation - 467 by members' voluntary winding-up and 35 by creditors' voluntary winding-up.

The Bankruptcy (Fees and percentages) Scale (Amendment) Notice 1981 and the Companies (Fees and Percentages) (Amendment) Order 1981 increase some of the fees prescribed in the respective principal Scale and Order and at the same time amend the provisions therein so that fees and percentages may be taken in money instead of stamps.


Financial System and Economy

      IN 1981, the economic conditions prevailing in the world's major industrialised countries, in particular those which represent Hong Kong's major export markets, were generally unfavourable. The United States, Hong Kong's largest export market, was teetering on the brink of a recession; the economy of the Federal Republic of Germany, was virtually stagnant; and that of the United Kingdom was in recession. Yet, against this very un- favourable background, the Hong Kong economy, which is highly export-dependent, achieved rapid economic growth. Preliminary estimates showed that the growth rate in real terms of the gross domestic product (G.D.P.) was 10 per cent in 1981, easily matching growth rates achieved in the earlier post-recession years. In the circumstances this was a remarkable performance.

      While growth in the economy has continued to be rapid, it must be recognised, however, that unlike the previous two years the impetus to economic growth lay with domestic demand rather than with domestic exports. The growth rate in real terms of domestic demand was 11 per cent, significantly higher than that of domestic exports at seven per cent. Given that the export sector is still the backbone of the Hong Kong economy, the situation in which economic growth is led by domestic demand is one that inevitably causes uneasiness. The situation in 1981 was against a background of historically high interest and inflation rates, relatively low growth rates in domestic exports and a relatively weak Hong Kong dollar.

       The fact remains, nevertheless, that the shift in the impetus to economic growth from domestic exports to domestic demand, particularly consumer demand which really started in the second half of 1980 was a natural manifestation of economic prosperity in previous years, led by the longest sustained export boom in the 1970s. The growth rates in real terms of domestic exports in the three years 1978 to 1980 were respectively 10.4 per cent, 16.5 per cent and 10.9 per cent. Also, the shift has not been so sharp as to have caused the growth rate of demand for output in the economy to get out of line with the growth rate of the ability of the economy to produce that output. Indeed, the growth rate of total final demand, after excluding the effect of the rapid expansion of the entrepôt trade, was 8.5 per cent in 1981, slower than the growth rate of the gross domestic product. This represents an improvement, in fact, over the situation in 1980 when the former, at 11 per cent, was higher than the latter, at 10 per cent. In consequence, therefore, there was a closer balance between the demand for and the supply of domestic resources in 1981, with domestic inflationary pressures showing signs of easing. The rate of increase in the gross domestic product deflator, which is the best available measure of overall domestic inflation, was 11 per cent in 1981, significantly slower than the rate of increase in 1980 of 13 per cent.

Although domestic demand played the dominant role in determining the growth rate of the economy, domestic exports held up extremely well during the year. The growth rate in



real terms for 1981 as a whole, at seven per cent, was very respectable by current international experience and encouraging in view of the much larger base that had already been built up in recent years. A major reason why this was possible, despite a recession- ridden world, is that the cost/price structure of the economy had been adjusting favourably. However, with domestic demand providing the impetus to economic growth, the growth rate of imports in 1981 exceeded the growth rate of total exports. And as the terms of trade deteriorated in response to changing demand conditions, the visible trade 'gap' that is the proportion of the value of imports which is not covered by the value of total exports widened, leading to a depreciation in the exchange value of the Hong Kong dollar. This depreciation has been helpful in maintaining Hong Kong's export competitiveness. In consequence, the very sharp slow down in the growth rate of domestic exports in 1980 (year-on-year from 18 per cent in the first half to seven per cent in the third quarter and four per cent in the fourth quarter) was reversed in 1981.

At the same time, however, the depreciation exerted upward pressure on prices. The rate of increase in import prices, particularly in respect of foodstuffs and fuels, was rapid. So the rate of inflation, as measured by the rate of increase in the various consumer price indexes, remained uncomfortably high. The New Consumer Price Index (A), for example which is representative of the price increases faced by the relatively less well-off 50 per cent of households in Hong Kong averaged 15 per cent higher in 1981 compared with 1980. While this is so, it must be remembered that household incomes increased rapidly too, albeit for those households with family members employed by the manufacturing sector, incomes were increasing at rates which were only marginally higher than the rate of inflation. For such households the improvement in their standard of living was small.

Labour Market

The reason why the standard of living of some households has not improved to the same extent as suggested by the rate of economic growth can be traced to developments in the labour market. The size of the labour force has been growing rapidly in recent years as a direct and indirect result of immigration. The direct effect of the influx of immigrants on the supply of labour is obvious. What is not so obvious is the indirect effect. By joining the labour force and thus slowing down the rate of increase in wages, particularly in the manufacturing sector where immigrants tended to be successful in finding work, immi- grants have induced some people (such as housewives) to join the labour force to maintain or to achieve improvements in the standard of living of their households. In 1981, during the 12-months ending September, the labour force grew at a rate of about 5.4 per cent per annum. Thus, economic growth in 1981 represents, to a significant extent, a larger economy with more workers rather than increasing productivity.

Nevertheless, there were signs during 1981 that the growth rate of the supply of labour may have started to slow down, a consequence presumably of the successful stemming of the inflow of illegal immigrants since October 1980. After increasing further to 4.1 per cent in March 1981 from the seasonally adjusted rate of 3.8 per cent in September 1980, the unemployment rate declined in September 1981 to a seasonally adjusted rate of 3.6 per cent. Considering that the unemployment rate had been increasing continuously since March 1979 when a historically low figure of 2.3 per cent was recorded this development was encouraging; although it is still too early to tell whether the September 1981 figure signified conclusively a reversal of the recent trend.

      Meanwhile, the rate of increase in wage rates in the manufacturing sector remained rather low in real terms. During the 12 months ending September 1981, they increased by



only 2.3 per cent. Nonetheless, when compared with the 12 months ending September 1980, during which virtually no increase was recorded, there was some improvement. Given that domestic exports in 1981 have not been buoyant, even such limited improvement can be considered encouraging.

The rate of increase in nominal construction wage rates was slow. This together with fairly stable prices of such building materials as cement and steel bars, the increase in building and construction (including civil engineering) cost in 1981 was moderate. The trend of decline in labour productivity in the past three years (1978 to 1980) appeared to have ceased in 1981, but the recovery, if any, was probably very mild.

Property Market

Closely related to the building and construction sector is the property market. In 1981, the previous imbalance between the demand for and supply of property, which exerted upward pressure on property prices and rentals generally, eased significantly. This was the result of rapidly increasing supply and of demand being curtailed by high interest rates and prices, and apparently less buoyant economic prospects. In terms of total usable floor area of buildings completed, there were substantial increases in the supply of all types of property. This was most marked in the case of commercial (offices and shops) property. Property prices and rentals in general either levelled off or declined during the course of 1981.

      The residential property market was fairly quiet in 1981. Apart from a few large marketing exercises which were carried out in the middle of the year, there was not much activity. It seems that high mortgage rates and high flat prices have inflated monthly mortgage payments to levels beyond the reach of many aspiring home buyers. So prices generally ceased to increase further in 1981 and in some cases actually declined. Developers were more ready to offer discounts and to reduce the downpayment requirements so as to attract more buyers. There have also been signs of forced selling, with speculators having to realise their investments at a loss because high mortgage rates have made financing too expensive in relation to the current rate of increase of prices.

      As regards rentals for residential property, they have probably continued to increase in 1981. Insofar as rentals for existing leases were concerned, it is difficult to make meaningful interpretations because increases in rents for practically all types of private domestic accommodation were controlled. There is little doubt, however, that rentals for new lettings, being uncontrolled, have continued to increase during the year. This is because, despite the sales market for residential property being relatively inactive, the underlying demand for domestic accommodation remained strong.

      On commercial property, previous rapid increases in prices had successfully stimulated a substantial response in terms of supply, hence leading to a reasonable balance between supply and demand being achieved in 1981. The rates of increase in the purchase prices and rentals for shops and offices other than those in prime locations generally slowed down sharply in 1981 and in many cases, prices and rentals actually declined. For offices in prime locations where new supply was limited and demand continued to be strong, rentals were more stable. As regards industrial property, supply continued to be abundant in 1981, with prices and rentals either levelling off or declining slightly.


In 1981, the two measures of inflation showed significantly different rates of increase. The Consumer Price Index (A) showed an increase of 15 per cent while the G.D.P. deflator showed an increase of 11 per cent. Although it is difficult, under a floating exchange rate



regime, to distinguish meaningfully between imported inflation and domestically generated inflation, the fact that the former showed a faster increase than the latter can perhaps be taken to indicate that imported inflation was significant in 1981. Also, as the demand for and the supply of domestic resources even in respect of land and property was in reasonable balance in 1981, any unfavourable domestic influences on prices from this source should have been moderating.

But whether or not inflation in 1981 was predominately imported, at 15 per cent it was undesirably high as far as the consumer was concerned. This was so even though as usual and in contrast to many other economies, inflation was associated with rapid economic growth and a relatively low unemployment rate. Nevertheless, the fact remains that, 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. In 1981, inflation in most countries was still rapid, although there were signs of a general slowing down. The rate of inflation in Organisation for Economic Co-operation and Development (OECD) countries, for example, was still over 10 per cent for the year.


      One internal factor which was believed to be responsible, at least in part, for the uncom- fortably high rate of inflation experienced in 1981 was the high growth rate of the money supply. In 1981, the broadest definition of the money supply denominated in Hong Kong dollars in short HK$M3 which includes notes and coins with the public and all deposits with and certificates of deposit issued by licensed banks and deposit-taking companies held outside the monetary sector - increased by an estimate of about 22 per cent. This, in fact, is not significantly different from the growth rate of the G.D.P. in money terms. Further, in terms of a narrower definition of the money supply HK$M1B (which is the Hong Kong version of a definition currently regarded by some commentators as the most relevant measure of the money supply in terms of explaining economic activity and which includes notes and coins with the public and demand and savings deposits in Hong Kong dollars), the growth rate of the money supply was only estimated to be six per cent in 1981. The estimates were made by using money supply statistics available up to November 1981.

      Nevertheless, the growth rate of loans and advances in Hong Kong continued to be high in 1981, despite historically high lending rates prevailing throughout the year.

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, An- nually 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 1980-1, total gross expenditure, at $23,593 million, was $5,152 million over the original estimate. It comprised $4,671 million for Annually Recurrent



Personal Emoluments, $7,248 million for Annually Recurrent Other Charges, $7,882 million for Special Expenditure and $3,792 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 $4,952 million on March 31, 1981. This fund is used to finance social and economic developments, with the greater part applied to low-cost housing schemes. At March 31, 1981, liquid assets of the fund totalled $1,104.4 million while approved outstanding commitments amounted to $5,811.1 million.

The Lotteries Fund, established in 1965, in 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 $264.3 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, 1981, the fund's liquid assets totalled $134.8 million and grants and loans amounting to $232.2 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 special income level. Up to March 31, 1981, a total of $1,066.5 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 $935.6 million was spent on various projects while receipts from the sale of flats amounted to $1,094.6 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. During the year, two new schemes were approved to finance loans to Hong Kong students studying in the United Kingdom but no payments were made. Outstanding loans previously issued from the Development Loan Fund were transferred to this fund on February 1, 1980. At March 31, 1981, the fund's liquid assets totalled $23.8 million and loans amounting to $46.8 million were paid during the year.

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 has accumulated over the years up to and including 1980-1. On March 31, 1981, accumulated reserves stood at $16,036 million. Such reserves are required to secure the government's contingent liabilities and to ensure that the government is able to cope with short-term tendencies for expenditure to exceed revenue or for revenue yields to fall below expectations.

Revenue and expenditure for 1979-80 and 1980-1, together with the estimates for 1981-2, are detailed and compared in Appendices 7 and 8. Sources of revenue and expenditure in various fields are shown proportionately by charts in Appendices 7a and 8a. For 1981-2 the estimated revenue of $32,888 million and gross expenditure of $25,062 million forecast an estimated surplus of $7,826 million for the year.



Public Debt

At March 31, 1981, net available public financial assets were $16,036 million, while the public debt amounted to some $246 million - about $48 per head of population, as compared with $423 million as at March 31, 1980- about $84 per head of population. This decrease was principally due to the redemption in November 1980 of the 1975 issue of government bonds amounting to $250 million.

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 1981-2 financial year, the council worked to an overall budget of $920 million.

Housing Authority

The Housing Authority, which also is financially autonomous, is responsible for the provision and management of public housing. The authority's executive arm is the Housing Department. Under the Housing Ordinance, the authority is required to direct its policy to ensure that its income, derived mainly from rent, is sufficient to meet its recurrent expenditure on the management of public housing estates. In the 1980-1 financial year rental and other income from estates totalled $940 million. In providing new housing estates under the government's public housing programme, the authority is provided with land, the value of which is reflected in the authority's balance sheet as a government contribution. Where its cash flow is inadequate to meet construction costs, the authority within limits may borrow from the Development Loan Fund on concessionary terms. At March 31, 1981, loans outstanding for public housing estates totalled $2,949 million.

      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 government's general revenue. The authority is the agent of the government in designing, constructing and marketing the flats under the Home Ownership Scheme; the flats are financed through the Home Ownership Fund, whilst any related commercial facilities, which are authority properties, are financed from the Development Loan Fund.

Revenue from Land Sales

The total revenue to be collected by the Government from all land transactions in 1981-2 is estimated to be $9,401 million in the urban areas of Hong Kong Island and Kowloon and $2,429 million in the New Territories. These estimated figures compare with actual amounts collected in 1980-1 of $9,083 million in the Urban area and $1,686 million in the New Territories.

       Estimated revenue for 1981-2 from the sale of Crown land by auction or tender, included in the above figures, is $8,119 million in the urban areas and $1,736 million in the New Territories.

Internal Revenue

The Inland Revenue Department assesses and collects all taxes, duties and fees making up the internal revenue which consists of betting duty, business registration fees, entertain-



ments tax, estate duty, hotel accommodation tax, earnings and profits tax and stamp duty. In the financial year ending on March 31, 1982 it is anticipated that the yield from internal revenue will amount to $11,486 million compared with actual collections of $11,232 million for the previous year ended March 31, 1981. The estimate for 1981-2 takes account of the cost to internal revenue, amounting to $1,250 million, of tax concessions designed to benefit various classes of taxpayers as announced by the Financial Secretary in his 1981 Budget Speech.

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 duty is assessed from the returns of the Royal Hong Kong Jockey Club which holds a monopoly for conducting such operations. The rate of duty on bets is either seven and a half per cent or 11 per cent (depending on the type of bet made), and is 25 per cent on the proceeds of lotteries. The anticipated yield for the financial year 1981-2 is $1,020 million compared with actual collections of $823 million for 1980-1.

Business Registration

Under the Business Registration Ordinance, all people operating businesses in Hong Kong 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 a business is carried on by a charitable institution, or when an unincorporated business is very small. The total yield from fees, service fees for copies of documents and other fees for 1981-2 is estimated to amount to $60 million compared with actual collections of $54 million for 1980-1.

Entertainments Tax

The Entertainments Tax Ordinance imposes a tax on the price of admission to cinemas and race meetings at rates which vary with the prices 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 1981-2 financial year the estimated yield is $50 million compared with actual collections of $45 million for 1980-1.

Estate Duty

This duty is charged under the Estate Duty Ordinance and is imposed on that part of a deceased's estate which is situated in Hong Kong. Effective from May 29, 1981 estates valued at under $1 million (previously $600,000) are exempt. The rates of duty charged range from a minimum of 15 per cent (previously 10 per cent) on estates valued between $1 million and $1.5 million (previously $600,000 and $650,000) to a maximum of 18 per cent on estates valued in excess of $3 million. The estimated yield (after deducting $13 million due to the increased exemption limit) for the financial year 1981-2 is $237 million compared with actual collections of $251 million for 1980-1.

Hotel Accommodation Tax

This tax is levied under the Hotel Accommodation Tax Ordinance on hotel and guest house accommodation at the rate of four per cent on the accommodation charges paid by guests. For the 1981-2 financial year the anticipated yield is $51 million compared with actual collections of $42 million for 1980-1.



Earnings and Profits Tax This tax is charged under the Inland Revenue Ordinance. Hong Kong has a schedular system of taxation whereby persons liable are assessed and required to account for tax on four separate and distinct sources of income, namely, business profits, salaries, property and interest. Superimposed upon the schedular system is a form of aggregation called 'personal assessment' whereby a person can voluntarily elect to be assessed on his total Hong Kong income from these sources.

The current standard rate of tax of 15 per cent has been in force since April 1, 1966. Profits tax is charged only on profits arising in, or derived from, Hong Kong from a trade, profession or business carried on in Hong Kong. Profits of unincorporated businesses are taxed at 15 per cent while profits of corporations are now taxed at 161⁄2 per cent. Assessable profits are determined on the actual profits for the year of assessment. There is a system of provisional payment of tax based on the profits of the preceding year of assessment. Like many other countries, profits assessable to profits tax in Hong Kong are the net profits. 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. The basis of assessment and the system of payment is similar to that under profits tax. Tax payable is calculated on a sliding scale which varies from five per cent to 25 per cent on $10,000 segments of income, that is income after deduction of allowances. However, the overall effective rate is restricted to a maximum of 15 per cent of income before the deduction of allowances. The current levels of the various allowances are: for the taxpayer himself $15,000; for his wife $15,000; for the first child $7,000; for the second child $5,000; for the third child $3,000; for the fourth to sixth child $2,000 each; for the seventh to ninth child $1,000 each; and $7,000 for each of his, or his wife's, dependent parents. In addition, there are supplementary personal allowances of $7,500 for single persons and $15,000 for married persons. Apart from expenses necessarily incurred in the production of income, and charitable donations up to 10 per cent of taxable income, there are no other allowances. For salaries tax purposes the income of a wife is deemed to be that of her husband.

      Property tax is charged on the owner of land and/or buildings in Hong Kong at the standard rate of 15 per cent on an amount calculated by reference to estimated rental value, less an allowance of 20 per cent for repairs and maintenance. There are exemptions in respect of property occupied by an owner for residential purposes, vacant premises and property in certain undeveloped parts of the New Territories. If the property is owned by a person carrying on a trade or business and is occupied by him for business purposes, the amount of property tax paid may be deducted from the profits tax payable. Property owned by corporations carrying on business in Hong Kong is exempt from property tax; however, the profits 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 received by a corporation carrying on a business in Hong Kong is deemed to be part of the trading profits of the corporation and is chargeable to profits tax. There is exemption from interest tax on interest paid by the government, and by licensed banks and public utilities provided it does not exceed a specified rate which varies from time to time.

Personal assessment, which is available to an individual who is a resident of Hong Kong, is a form of relief from the full impact of the standard rate. A taxpayer in receipt of earnings



and profits, normally taxed at 15 per cent on each separate source, may voluntarily elect to be assessed on total Hong Kong income. In addition to the allowances and sliding scale of rates applicable to salaries tax, any business loss is deductible before arriving at the amount on which tax is payable. The advantages of personal assessment disappear when tax at the sliding scale on the amount taxable exceeds tax at the standard rate on total income (before allowances).

Taxes on earnings and profits, after allowing for the cost of the 1981 Budget tax concessions, are estimated to yield $8,923 million in the 1981-2 financial year compared with actual collections of $7,965 million for 1980-1.

Stamp Duty

The Stamp Duty Ordinance imposes fixed and ad valorem duties on different classes of documents relating to assignments of immovable property, leases and share tansfers. In recognition of the rising values of domestic premises, the 1981 Budget raised the platforms to which the fixed and concessionary rates of duty apply on conveyances of low and intermediate value properties. Assignments are presently chargeable at a fixed duty of $20 for the lowest range of values (up to $250,000), one per cent for the intermediate range ($250,000 to $500,000) and two and three quarters per cent for those in excess of $500,000, 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 duty at the rate of $3 per $1,000 in value. The estimated yield is $1,145 million for the financial year 1981-2 compared with actual collections of $2,052 million for 1980-1.

Finance and Economy


There is no general tariff on goods entering Hong Kong but duties are charged on four groups of commodities - alcoholic liquors, tobacco, certain hydrocarbon oils and methyl alcohol - irrespective of whether they are imported or manufactured locally. All firms en- gaged in the import, export, manufacture or sale of dutiable commodities must be licensed. On liquors, the basic duty rates 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 are $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 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 be let. Because no review of rateable values has been carried out since the present valuation lists came into force on April 1, 1977, current rateable values are considerably below current market rental levels.

The percentage rate charge is determined annually by resolution of the Legislative Council and since April 1, 1977, general rates at seven and a half per cent of the rateable values of tenements and Urban Council rates at four per cent of the rateable values have been charged in the urban areas. General rates at percentages below 11 per cent are



charged in the New Territories. No Urban Council rates are levied in the New Territories because the council does not operate there.

      A Bill passed in May, 1981 made a number of amendments to the Rating Ordinance. The most important of these was the introduction of a revised system for preparing new valuation lists whereby rateable values will be assessed by reference to a date designated by the Governor. This is intended to improve consistency in the assessment of new rateable values for future reviews. Other changes related to the computerisation of the valuation lists, the assessment of new premises, exemptions and objection and appeal procedures. These were mostly designed to clarify and up-date the law and to improve administration.

      With the rapid pace of building development the valuation lists continue to grow. By April 1, 1982, it is expected that the lists will have increased to over 640 000 assessments with a total rateable value of more than $13,000 million. The estimated general rates revenue for 1981-2 is $1,061 million; revenue from the Urban Council rates will be about $436 million.

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 organisa- tions 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 50 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 empowered under the Standing Orders of the Legislative Council to consider reports of the Director of Audit on the accounts of the government, on any other accounts required to be laid before the Legislative Council as the committee may think fit, and on any matter incidental to the performance of the Director of Audit's duties or the exercise of his powers. In the operation of its authority, the committee may call any public officer or other person 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.


Hong Kong as a Financial Centre


     Hong Kong continued to develop as a financial centre in 1981. Eight major international banks were licensed to carry on banking business in Hong Kong, after the lifting of the previous moratorium on bank licensing. Other important developments during the year were the redefinition of banking business and the associated creation of a new class of financial institution, the licensed deposit-taking company. No companies were granted that status during the year, but a further 48 registered deposit-taking companies started operations. The stock market had another very active year, with the Hang Seng index reaching record highs in July, although the commodity market was relatively quiet.

      Hong Kong has a probably unique combination of institutional features as an interna- tional financial centre. There is little specialisation within the monetary sector especially among deposit-taking institutions so that there is, for instance, only one company concerned exclusively with granting mortgage finance, while there is no institution established only to gather savings deposits. There is no central bank, and no central monetary authority; such of the tasks of a central bank as arises 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 of its commercial bankers. There is no marketable direct government debt; total public debt is extremely low. There is a well-developed money and foreign exchange market, with no exchange control of any sort, and a very active gold market.

The Monetary Sector

The most important developments during the year were the redefinition of banking business, so extending the type of business which may be undertaken only by licensed banks, and the associated creation of a three-tier monetary sector. These were achieved by means of amendments made to the Banking and Deposit-taking Companies Ordinances which provide that, after the expiry of a two-year transitional period in mid-1983, the business of taking deposits will be shared by three distinctive classes of institution: first, licensed banks which can take deposits in any amount and of any maturity in the course of their banking business; secondly, licensed deposit-taking companies which can take deposits of not less than $500,000 and of any maturity; and, thirdly, registered deposit- taking companies which can take deposits of not less than $50,000 and with an original term to maturity of not less than three months.

Banks in Hong Kong are licensed under the Banking Ordinance, the licensing authority being the Governor-in-Council. At the end of 1981, a total of 123 banks were licensed in Hong Kong, with between them 1 301 banking offices: 89 of these banks are incorporated outside Hong Kong. In addition, there were 121 representative offices of foreign banks.

In May, a moratorium on the grant of further banking licences, which had been in force since August 1979, was lifted in respect of major international banks and long established local deposit-taking companies. A bank incorporated outside Hong Kong which desires to apply for a banking licence is required to show minimum assets (net of contra items) of US$10,000 million (this minimum will be reviewed annually), and its country of incorpora- tion must both apply an adequate form of prudential supervision and offer some acceptable form of reciprocity to Hong Kong banks. Finally, in considering each application the Governor-in-Council has regard to the number of banks from the applicant's country of incorporation which already hold licences under the Banking Ordinance.

A domestic company (one incorporated in Hong Kong and predominantly beneficially owned by Hong Kong interests) must satisfy three criteria in order to be considered for a



banking licence: it must have a paid-up share capital of at least $100 million; it must have been in the business of taking deposits from and granting credit to the public for at least 10 years; and it must hold deposits from the public of at least $1,500 million and total assets of at least $2,000 million (these minima will be reviewed annually).

      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 be either licensed or registered under the Deposit-taking Companies Ordinance. Licensed status, which is granted by the Financial Secretary, is reserved for larger companies which have a minimum issued share capital of $100 million and paid-up capital of $75 million, and which meet certain partially subjective criteria such as size, ownership and quality of management. Access to registered deposit-taking company status in the register maintained by the Commissioner of Deposit-taking Companies has since April 1981 been restricted to companies which, as well as meeting certain basic criteria, are more than 50 per cent owned by banks in Hong Kong or elsewhere (before that time there was no such restriction on ownership). The minimum paid-up capital required by an applicant for registration as a deposit-taking company was raised in July 1981 from $2.5 million to $10 million. At the end of 1981, there were 350 registered deposit-taking companies. No company had yet been granted the status of a licensed deposit-taking company.

      In addition to the amendments required to create the status of a licensed deposit-taking company, further amendments were made to the Banking and Deposit-taking Companies Ordinances in 1981 in order to strengthen the quality of prudential supervision applied to deposit-taking institutions, and to keep the provisions of the two ordinances up-to-date.

      Work was also undertaken during the year on the preparation of further legislative amendments to take account of the growing volume of activities outside Hong Kong of banks and deposit-taking companies incorporated in Hong Kong, and to enable the Commissioner of Banking (who is also the Commissioner of Deposit-taking Companies) to play his full part in the increasingly important international network of banking supervisors.

       Two other important developments took place in the monetary sector in 1981. In January, The Hong Kong Association of Banks to which all licensed banks are obliged to belong was formed as a statutory body to replace the former Exchange Banks Association. One of the most important functions of the association is to operate (in consultation with the government) the interest rate agreement, which sets out the maximum rate of interest which may be paid by a licensed bank on certain deposits. In the absence of government debt and other conventional instruments of monetary policy, the deposit rates set under the interest rate agreement play a very important part in the monetary scene.

      Following on the enactment in 1980 of the Monetary Statistics Ordinance, the govern- ment began to publish a new series of detailed statistics compiled from monthly returns submitted by banks and deposit-taking companies to the Secretary for Monetary Affairs of the Government Secretariat since December 1980. As the series matures these statistics will be of growing value in understanding the increasingly complex monetary sector in Hong Kong.

Non-bank Financial Services

     Banks and deposit-taking companies in Hong Kong offer a wide range of facilities and services to their customers, so 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, as well as credit unions, co-operative societies, pawnshops and private



moneylenders - all of which are relatively small in terms of the local markets. As part of a continuing process designed to apply effective controls to these various non-bank financial services, work continued during the year on hire-purchase legislation and on amendments to the Pawnbrokers Ordinance.

Financial Markets

Domestic Money Market

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 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 a means of raising Hong Kong dollar resources. As at December 31, 1981, Hong Kong dollar certificates of deposit totalling about $3,542 million in value were outstanding, of which amount some $1,912 million was held by licensed banks and deposit-taking companies.

       The Mass Transit Railway Corporation has continued to make use of its commercial paper facility, which was developed in 1979. The paper takes the form of negotiable bills of exchange accepted by the MTRC.

      There is no marketable direct government debt. The only direct government debt now outstanding is due to the Asian Development Bank, and amounted to the equivalent of $250 million at March 31, 1981. 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 for- eign exchange market in Hong Kong. This connection arises because the shortage of money market instruments denominated in Hong Kong dollars - and, in particular, the absence of marketable government debt, such as Treasury Bills - means that the residual liquidity of banks and deposit-taking companies has to be held in foreign currency assets, principally claims on banks overseas. In addition, the ability to buy Hong Kong dollars against the sale of a foreign currency balance, 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 foreign exchange market, with many international banks dealing (through their local branches) on behalf of their other branches round the world during the hours that the Hong Kong market is open. The government does not often 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. The issue of US dollar



certificates of deposit, started in 1980, became more frequent in 1981 when the total value of outstanding US dollar certificates of deposit issued by banks and deposit-taking com- panies in Hong Kong rose from the equivalent of $892 million at the end of 1980 to $2,735 million at the end of 1981.

Stock Market

The Stock Exchanges Unification Ordinance was brought into operation on February 1, 1981 and all members of the four existing stock exchanges were invited to apply for membership of the Exchange Company, The Stock Exchange of Hong Kong Limited. To be eligible for membership, applicants were required to demonstrate that their financial position was such as to enable them to comply with the capital requirements under the Unification Ordinance. By the year-end 241 people had been admitted as members of the Exchange Company and three as associate members. The ordinance provides that the unified exchange will come into operation not later than February 1, 1984.

In the meantime, trading continues on the existing exchanges. The turnover for 1981 was: Far East Exchange, $50,804.4 million; Hong Kong Stock Exchange, $17,450.8 million; Kam Ngan Stock Exchange, $37,545.4 million; and Kowloon Stock Exchange, $185.3 million. The total of $105,985.9 million was an increase of 10.8 per cent over the 1980 figure of $95,684.70 million. The Hang Seng Index stood at 1 405.82 on December 31, 1981 (July 31, 1964100), down from 1 473.59 on December 31, 1980.

Staff of the office of the Commissioner for 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 dealing in securities and to establish whether there is a prima facie case to be examined by the Insider Dealing Tribunal. In July 1980, the tribunal started formal hearings of an inquiry into possible insider dealings in the shares of Hutchison Whampoa Ltd. at some time prior to September 26, 1979.

      On January 26, 1981 the Securities Commission, upon the recommendation of the Committee on Takeovers and Mergers, announced that there should be introduced into the Hong Kong Code on Takeovers and Mergers the concept of a 'trigger-point' at which the acquisition of a percentage of the share capital of a public company would oblige the acquirer to make a general offer to the other shareholders of the company. The commission concluded that the appropriate percentage for this purpose would be 35 per cent of the issued share capital, and that the acquisition of shares between 35 per cent and 50 per cent should be limited to three per cent in any 12 month period if the acquirer was not to be obliged to make a general offer. After further consultation with the industry, the three per cent was raised to five per cent in early July. A revised edition of the code was introduced in October. In 1981, there were 17 instances of completed takeovers and four further instances of minority shareholders being bought out.

      In order to give a wider representation of the different interests involved in the securities industry, the Securities (Amendment) Ordinance 1981 was enacted in July, 1981 to remove the restriction on the number of appointed members on the Securities Commission.

      During 1981, 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 12, while no unit trusts authorised prior to the establishment of the code had their authorisation withdrawn. In the light of operational experience, a revised Hong Kong Code on Unit Trusts and Mutual



      Funds (together with Rules of Practice) was introduced and brought into effect in October.


The combined Stock Exchanges Compensation Fund - established to compensate those who suffer pecuniary loss as a result of defaults by stockbrokers amounted to $25 million on December 31, 1981. No payments were made from this fund during the year. Deposits lodged by dealers other than stockbrokers stood at $9.2 million. The purpose of these deposits is to give some protection to investors against defaulting dealers who are not members of a stock exchange. At the end of 1981, 2 637 people were registered under the Securities (Dealers, Investment Advisers and Representatives) Reg- ulations 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. It operates four futures markets: cotton, sugar, soybeans and gold. The turnovers reported on the four markets for 1981 were: cotton market, 15914 lots of 50 000 lbs each; sugar market, 119 534 lots of 50 long tons each; soybean market, 442 708 lots of 30 000 kg each; gold market 32 740 lots of 100 oz. each. In September the exchange announced that it was, with government approval, establishing a working party to investigate the possible addition of a financial futures market.

       At the end of 1981, 1510 people were registered under the Commodities Trading (Dealers, Commodity Trading Advisers and Representatives) Regulations 1976. The Com- modity Exchange Compensation Fund, established to compensate those who suffer pecuni- ary loss as a result of default by shareholders of the exchange, amounted to $7.7 million at the end of the year. Deposits lodged by dealers, other than shareholders of the Hong Kong Commodity Exchange, stood at $700,000. The purpose of the deposits is to give some protection to investors against any default by dealers who are not shareholders of the Hong Kong Commodity Exchange.

Gold Markets

Trading in gold on the Chinese Gold and Silver Exchange Society was active in 1981. 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 194 member firms. The price of gold on the society fell from $3,592 per tael of 99 per cent fine gold at the end of 1980, to $2,714 at the end of 1981. One tael is equal to 37.429 grams.

      The international gold market in Hong Kong continued to grow during the year. Dealings in this market take place in US dollars per troy once of 99.95 per cent fine gold, with delivery in London. The price of gold loco London fell from US$588 per ounce at the end of 1980 to US$400 per ounce at the end of 1981.

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 Ordinance), 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.



      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 in the Exchange Fund, and are placed by the fund in bank deposits in Hong Kong dollars and certain foreign currencies, and in various interest-bearing instruments in foreign currencies. The fund transacts its business through 87 banking, safe custody and security accounts in 13 countries, reflecting the extensive programme of diversification, in terms of both currencies and management, of our financial assets in recent years.

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 by these banks against holdings of Exchange Fund certificates 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.

      Coins of $5, $2, $1, 50 cents, 20 cents and 10 cents denominations, and currency notes of one cent denomination, are issued by the government. In May, a new round $5 coin was introduced, and the old $5 coin thereafter gradually withdrawn from circulation before it was demonetised in October. The new coin, which has a distinctive security edge, is usable in vending machines that were unable to handle the previous ten-sided coin: its introduction forms another step in the modernisation of the coinage of Hong Kong, following the report of the Coinage Review Committee in 1974. The sixth of a series of $1,000 gold coins minted to commemorate the Chinese Lunar New Year was issued early in the year. These gold coins are legal tender, but do not circulate. The total currency in circulation at the end of 1981, 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 1s. 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.

The effective exchange rate of the Hong Kong dollar, calculated against the currencies of Hong Kong's 15 most important trading partners, moved from 88.2 on December 31, 1980 (December 18, 1971 = 100) to 85.9 on December 31, 1981. Against the United States dollar, the Hong Kong dollar moved from 5.140 on December 31, 1980 to 5.690 on December 31, 1981.




      HONG KONG has a resourceful and energetic workforce of 2 404 067 comprising 1 551 443 `males and 852 624 females. (They are engaged in: agriculture and fishing, mining and quarrying, 48 560; manufacturing 990 365; electricity, gas and water 14 669; construction 185 999; wholesale and retail trade, restaurants and hotels, 461 489; transport, storage and communications 181 368; financing, insurance, real estate and business services 115 870; community, social and personal services, 375 703; and unclassifiable activities 30 044.

      An establishment survey of Employment, Vacancies and Payroll in the industrial sector, held in September, recorded 904 646 people engaged in 46 729 establishments. It covered working proprietors and partners, employees receiving pay, and unpaid family workers affiliated to business organisations, but excluded the self-employed, out-workers, and other unpaid workers who were included in the household-type survey. Some 381 711 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 manufacturing establishments, and of the number 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

Much has been done in recent years to secure a steady improvement in working conditions and terms of employment through an extensive programme of labour legislation. Since 1971, 151 pieces of legislation have been enacted - 71 of them directly tied to improving conditions of employment.

      During 1981, 26 items of labour legislation were enacted to provide for higher standards of safety, health and welfare of workers. This brings the total number of items of labour legislation enacted in the past decade to 151.

      The Employment Ordinance provides the framework for a comprehensive code of employment into which major amendments have been progressively incorporated. It governs the payment of wages, the termination of employment contracts and the operation of employment agencies. The ordinance was amended in 1981 to raise the wage ceiling for non-manual employees from $3,500 to $6,000. Amendments were made to the provisions on maternity benefits to provide paid maternity leave for up to three children to female employees to whom the ordinance applies.

The Industrial Training (Construction Industry) (Amendment) Ordinance 1981 was enacted to provide for the imposition of a surcharge on the late payment of levy and to



allow independent professional persons to have access to information on construction contracts for the purpose of assisting the Construction Industry Training Authority in assessing the real value of contracts.

      The law provides, among other benefits, statutory holidays with pay, sick leave, sickness allowance, rest days and seven days annual leave with pay for most employees. All em- ployees have statutory protection against anti-union discrimination. The law also provides for severance payment to workers made redundant.

      The maximum fines provided in 19 sets of regulations made under the Factories and Industrial Undertakings Ordinance were increased. A new set of regulations was intro- duced to provide improved fire safety precautions in registrable workplaces.

As a dependent territory of the United Kingdom, Hong Kong is not a member of the International Labour Organisation (ILO) 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.

By the end of 1981, Hong Kong had applied 47 conventions, which exceeded the number ratified by most member nations.

Wages and Conditions of Work

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

      Wage rates are usually calculated on a time basis such as hourly, daily or monthly, or on an incentive basis depending on the volume of work performed. The pay period is normally 10 or 15 days for daily-rated and piece-rated workers. 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 wage rates of manufacturing workers continued to increase in money terms during 1981, wage rates in real terms did not rise appreciably because of the rate of inflation and the continuing growth in the supply of labour due to the direct and indirect effects of recent immigration. At the same time, the growth rate of demand for labour in the manufacturing sector was slowing down as a result of unfavourable economic conditions in Hong Kong's major markets. By September, average daily wage rates (excluding fringe benefits) had increased by 142 per cent on the base period of July, 1973 to June, 1974. During the same time, the Consumer Price Index went up by 84 per cent, resulting in an increase of 32 per cent for the index of real average daily wage rates.

      A Consumer Price Index (A), based on a household expenditure survey conducted from July, 1973 to June, 1974, was compiled as an indication of the effect of price changes on households spending $400 to $1,499 a month in 1973-4. In December, 1981, this index stood at 192 (see Appendix 16). Consumer Price Index (B) showed the effect of price changes on households spending $1,500 to $2,999 a month in 1973-4.

      A new Consumer Price Index was introduced in 1981 to replace the old one. The new Consumer Price Index (A) covers about 50 per cent of urban households in Hong Kong, with a monthly expenditure of between $1,000 and $3,499 in the base period of October 1979 to September 1980. The new Consumer Price Index (B) covers about 30 per cent of



urban households in Hong Kong, with a monthly expenditure of between $3,500-$6,499 in the base period. Both the new and the old series were published up till the end of 1981. From then on the old series was discontinued.

     In September, 1981, 75 per cent of workers engaged in manufacturing industries received daily wage rates of $38.97 or more (males $44.11 and females $37.87), and 25 per cent received $62.21 or more (males $75.33 and females $54.25). The overall average daily wage rate was $54.18 (males $62.59 and females $47.31).

Besides 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.

The Employment of Children Regulations made under the Employment Ordinance, control the employment of children under the age of 15. No child under the age of 15 may be employed in an industrial undertaking. Children aged 13 or above may, subject to their physical and moral protection, be employed in non-industrial establishments, except in occupations prohibited in the regulations. The types of employment permitted and the conditions depend, among other things, on whether the child has completed Form III of secondary education.

     Under the Women and Young Persons (Industry) Regulations, young people aged 15 to 17 and women are permitted to work a maximum of eight hours a day, six days a week. However, work for all young people shall not start earlier than 7 a.m. nor end later than 7 p.m. After five hours of continuous work, women and young people must be given a meal or rest break of at least 30 minutes. In the case of young people under 16, the break must not be less than one hour. The regulations also limit overtime employment for women to 200 hours a year. Young people are not permitted to work overtime. However, some large factories - mostly those engaged in cotton spinning - have been granted special permission to employ women at night subject to certain stringent conditions.

The Immigration Ordinance was amended in October 1980 with the aim of stopping the influx of illegal immigrants into Hong Kong and to prohibit their employment. The provisions of this ordinance are being enforced by the labour inspectorate in conjunction with the Immigration Department and the Royal Hong Kong Police Force. Under the Immigration Ordinance, all employees are required to carry their proof of identity and employers are required to maintain an up-to-date employees' record. Employers are prohibited from employing anyone who does not possess an acceptable document to prove his identity. Employers are also not permitted to employ those Vietnamese refugees who are prohibited from being employed under the same ordinance.

     In 1981, the labour inspectorate made 263 079 day and night inspections to industrial and non-industrial establishments. And four special campaigns against child employment and the employment of illegal immigrants covered 23 691 establishments. During the year, 292 cases involving 292 children were brought before the courts.

      Under the Factories and Industrial Undertakings Regulations, no male employees may be employed to work underground in mines, quarries, and industrial undertakings involving tunnelling operations unless he has been medically examined and certified fit for such work. Those under 21 have to be medically re-examined each year.

Trade Unions

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, 16 new unions were registered, of which nine were formed by civil servants. At the end of the year, the register showed a total of 366 employees' unions with about 361 940 members; 38 merchants or employers organisations with some 3 400 members; and 16 mixed organisations of employees and employers with about 29 190 members.

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 69 affiliated unions with about 189 850 members. A further 23 unions are friendly towards this federation and they have about 31 350 members. 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 70 affiliated unions with membership of about 36 620 and 11 associated unions with some 1 480 members. These unions are mainly in the catering and building trades.

The remaining 193 employees' unions are politically independent and have a membership of about 102 640, mostly drawn from the civil service and the teaching profession.

Labour Administration and Services

The Labour Department has an establishment of 1836 and its services are continually expanding. Branch offices 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 also 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 15 divisions: administration, air pollution control, apprenticeship, development, employees' compensation, employment services, employment conditions, factory inspec- torate, occupational health, labour relations, women and young persons, mines, pro- secutions and training, selective placement and training council, youth employment advisory service, and overseas employment service.

Labour Relations

The Labour Relations Ordinance provides machinery for special conciliation, voluntary arbitration and boards of enquiry for settling trade disputes that cannot be resolved through ordinary conciliation.

      In 1981, 149 trade disputes were settled by the conciliation service provided by the Labour Relations Service of the Labour Department. These disputes led to 49 work stoppages, resulting in 15 319 working days lost, compared with 21 069 days lost in 37 stoppages in 1980.

      The service also dealt with 15 288 labour problems in 1981. These were mostly grievances involving individual claims for wages in arrears, wages in lieu of notice, severance pay, annual leave pay and holiday pay.

      During the year, the Promotion Unit of the Labour Relations Service made 338 advisory visits to employers to promote good labour-management relations. Between April and



December, the unit also ran a Labour and Staff Relations Development Project under the auspices of the United Nations Development Programme and organised five workshops and a conference to provide training for employees, trade union officials and management personnel in a wide range of labour relations subjects.

      The Labour Tribunal, which is part of the Judiciary, provides a quick, inexpensive and informal method of adjudicating certain types of disputes between employees and employ- ers 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 does not supersede the conciliation services of the Labour Department. During 1981, the tribunal heard 4 353 cases involving employees as claimants, and a further 397 cases in which the claims were initiated by employers. More than $11 million was awarded by presiding officers. Of the cases dealt with by the tribunal, 93.6 per cent were referred by the Labour Relations Service after unsuccessful conciliation attempts.

Finding Employment

The Local Employment Service expanded its service during the year by establishing two additional offices at Sha Tin and Tsz Wan Shan.

      It now provides free placement services from 15 offices. For efficient transmission of information on employment opportunities, the offices are linked by a facsimile system. During the year, 33 117 people were successfully 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 qualifi- cations. A total of 333 people found employment through this register.

The Selective Placement Service is responsible for employment assistance to deaf, blind and physically disabled people. It operates from an office on Hong Kong Island and a second one will be opened in Kowloon in early 1982. With the experience gained by placing physically handicapped people in employment, the service will gradually be extended to provide similar assistance to the mentally disabled and the socially disadvantages, who at present are dealt with by the Job Placement Unit of the Social Welfare Department, the Employment Service of the Hong Kong Council of Social Service and other voluntary agencies. During 1981, some 372 physically disabled people found employment through the 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, 227 contracts were attested, compared with 313 in 1980.

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, 11 179 such contracts were attested.

Employment Agencies

The Employment Agencies Regulations made under the Employment Ordinance require all profit-making employment agencies to obtain a licence from the Commissioner for Labour









The phrase 'food for thought' has a unique meaning to the cosmopolitan population

of Hong Kong. For food is relished and given much thought from early morning 'yum cha' to midnight 'siu yeh with lunches, dinners and banquets throughout the day and night. Restaurants constitute the largest single section of the telephone directory - there are some 5 000 entries, not to mention the thousands of cooked food stalls and factory canteens to cater for the labour force. The United Nations' Food and Agricultural Oragnisation says that Hong Kong is one of the world's highest consumers of protein per head of popula- tion. And more than 60 per cent of all the chicken, marine fish and vegetables and about 20 per cent of pork consumed are produced locally, even though less than 10 per cent of the total land area is available for farming. Gastronomical delights are the order of the day with succulent dishes available to suit every taste - the full range of Chinese cuisine (Cantonese, Shanghai, Chiu Chow, Fukien, Hakka, Peking and spicy-hot Szechuen) or the abundance of gourmet delicacies of many other countries such as Mexico, Lebanon, Italy, France. Japan, Indonesia and America. Food is reasonably priced and the population spends more than 50 per cent of its house- hold expenditure on food, either eating at home or at a variety of places ranging from plush hotel restaurants to noodle shops and fast food outlets.


Previous page: Happiness is a bowl of noodles. Left: Restaurants featuring the cuisine of many nations line the sidewalks of Food Street; a buffet banquet for share- holders after a company's annual meeting; a chef goes through the ritual of breaking the mud pack from a Beggar's chicken.




   Not only is eating a major pastime, but much of the enjoyment comes from the purchase of food in markets and from street vendors where quality is tested and price agreed.




This culinary artiste is the maker of oddles of noodles for a major restaurant chain. In less than five minutes, a lump of dough is stretched and folded to make a fine noddle dish.







Airline passengers are catered for by two flight kitchens at Hong Kong International Airport where some 20 000 meals are prepared daily for 70 plane departures.



   Practically every restaurant in Hong Kong features a variety of pork preparations on their menus. Here the skin is being crackled to perfection.


Eating out, Hong Kong-style, means à lavish meal with friends in an open-air 'dai pai dong' or cooked food stall illustrated here on Lamma Island during the Tin Hau festival.



before starting operation. During the year, the department issued 127 licences to employ- ment agencies dealing with local employment and 25 to those catering for employment


Careers Service

The Youth Employment Advisory Service of the Labour Department provides a variety of careers service to students and young people. In 1981, officers of the service gave 310 talks on careers to about 56 696 students in 235 secondary schools. The service also organised, with the Hong Kong Association of Careers Masters, six regional careers conventions and took part in 28 other activities to provide careers information to students, teachers, parents and interested parties.

The service has produced 42 careers pamphlets. It also produces a monthly careers newsletter which is distributed free of charge to secondary schools, youth centres and other youth organisations.

The service operates three careers information centres one on Hong Kong Island, one in Kowloon and the third in Tsuen Wan. Each of the centres is equipped with a careers reference library with about 1 200 titles on careers and related subjects, as well as audio- visual facilities for films, slide presentations, video-cassette recordings, cassette recordings and other resources. In 1981 some 18 150 students and young people visited the centres.

      Some 22 exhibitors from commerce, industry and the government took part in the Labour Department's tenth annual careers exhibition which attracted 106 000 visitors.

Industrial Safety

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

      During the year the maximum fines in 19 sets of safety regulations were increased substantially. A set of new regulations, the Factories and Industrial Undertakings (Fire Precautions in Registrable Workplaces) Regulations, 1981, consolidate and improve the provisions for the prevention of, and escape from, fire in registrable workplaces and provide for the safe use and storage of inflammable substances in such places.


       The textile industry safety sub-committee - set up in July - became the second tripartite, industry-based safety sub-committee to be formed under the Labour Advisory Board Committee on Industrial Safety and Accident Prevention. The first, the construction industry safety sub-committee, was established in 1980. These safety sub-committees bring together representatives of employers, workers and officers of the Labour Department to promote work safety in various industries.

      The factory inspectorate, with the Government Information Services, considerably expanded its publicity programme for the promotion of industrial safety through extensive use of the mass media and other means. The Labour Advisory Board Committee on Industrial Safety and Accident Prevention held an industrial safety seminar for senior management in September and another for workers in November. A safety seminar for construction workers was also organised by the construction industry safety sub- committee.



      Throughout the year, the Factory Inspectorate's Industrial Safety Training Centre provided safety training courses for students of technical institutes and workers from various industries. The centre displays machine guards, models depicting safe working practices on construction sites and various types of personal protective equipment.

Pressure Equipment

The Pressure Equipment Unit of the Labour Department ensures the safe use and operation of all steam boilers and compressed air receivers installed in factories and gasholders for storage of town gas. It 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 under the Boilers and Pressure Receivers Ordinance 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.

Industrial Health and Hygiene

The Industrial Health Division of the Labour Department provides an advisory service to the government and industry on matters relating to the health of workers, the hygiene of the workplace and occupational health standards and practice. The division is concerned with maintaining and improving the physical and mental well-being of workers, protecting them against any hazards arising from their employment and helping them to adjust to their tasks.

The need to develop occupational health services to cope with the increase in population and expansion of industry in recent years has been recognised in the White Paper on 'The Further Development of Medical and Health Services'. A consultant in occupational health has been appointed as head of the division to plan and guide the expansion of these services. The prime responsibilities of the division are to investigate notified occupational diseases and potential hazards reported by the factory inspectorate and to determine preventive action. Surveys and monitoring of processes involving possible physical, chemical or biological hazards are also undertaken. The medical examination of personnel exposed to ionizing radiating, government divers and compressed air workers is another activity aimed at ensuring that workers are physically fit for their task and that the work does not adversely affect their health.

Industrial health officers, health visitors and nurses of the division are also involved in the assessment and rehabilitation of injured workers and the staffing of medical boards required to implement the Employees' Compensation Ordinance and deal with cases of silicosis under the Pneumoconiosis (Compensation) Ordinance.

      The laboratory of the Industrial Health Division carries out analytical tests on biological samples from workers' urine, blood, and other samples from the working environment such as concentration of silica. It also assists in conducting analyses required by the general air pollution monitoring programme in Hong Kong.

Employees' Compensation

The Employees' Compensation Division of the Labour Department administers the Em- ployees' Compensation Ordinance and the Pneumoconiosis (Compensation) Ordinance. The division ensures that injured employees and dependents of deceased employees covered by the Employees' Compensation Ordinance obtain from the employers, 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. The Pneumoconiosis (Compensation) Ordinance which came into operation on January 1, 1981 provides for the compensation of people suffering from silicosis and asbestosis. A statutory Pneumoconiosis Compensation Fund Board has been set up under the provisions of the ordinance and compensation is paid from the Pneumoconiosis Com- pensation Fund, which is financed by a levy imposed on the construction and quarry industries.

Industrial Training

The Hong Kong Training Council was appointed by the Governor in 1973 to advise on the measures necessary to ensure a comprehensive system of manpower training geared to the developing needs of Hong Kong's economy. On the council's recommendation, the Governor appointed 10 industry training boards, six commerce training boards and six committees to help the council.

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

The committees examine problems common to all or several industry or commerce sectors, including apprenticeship; instructor training; management and supervisory train- ing; technical training in institutions; translation; and vocational training.

The Hong Kong Training Council also has an ad hoc committee on technologist training. During the year, manpower surveys were conducted by eight training boards: building and civil engineering; clothing; electrical; plastics; textiles; hotel, catering and tourism; insurance; and journalism. The Committee on Instructor Training also conducted a survey to collect information on training of instructors. During the same period, the council approved for publication several survey reports and manuals of job standards and specifications, recommended training programmes and trade tests, most of which are on sale at the Government Publications Centre. To implement industry-wide training schemes devised by the council and its training boards, the government has reserved sites to house two training centre complexes.

The Clothing Industry Training Authority and the Construction Industry Training Authority are statutory bodies appointed by the Governor in 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 in key occupations for the clothing and construction industries.

       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 or not fully trained young person, aged between 14 and 18 years, in a designated trade. The contract must 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 September, the trade 'repairman (electronic manufacturing)' became a designated trade, bringing the total number of designated trades to 38. 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 1981, the Apprenticeship Division registered 4 373 apprenticeship contracts, of which 844 were for non-designated trades. These contracts covered 3 799 craft apprentices and 574 technician apprentices. By the end of the year, 10 549 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.



Primary Production


     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 population 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 everage daily protein intake of some 107 grams; the normal requirement is 70 grams. Local primary producers help to satisfy some of this demand, raising about 61 per cent of the total live chicken requirements and about 21 per cent of the live pigs slaughtered.

The territory's fishing fleet of some 5 000 vessels catches about 90 per cent of all fresh marine fish eaten and pond fish farmers produce about 16 per cent of the freshwater fish consumed.

In addition, farmers in the New Territories grow nearly 38 per cent of the vegetables consumed by Hong Kong residents. The agricultural industry remains buoyant even though a mere 9.2 per cent of the 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 supervision of co-operative societies and supervises credit unions. The department manages large areas of open countryside and is responsible for soil and water conservation, woodland manage- ment and landscape repair, as well as fire-fighting and the development of recreational services in country parks.

      The department also provides technical advisory services 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.

      Research programmes of the department cover crops, pest control, animal husbandry, and fisheries. On government farms, experiments are conducted to improve the quality and



yield for each hectare of vegetables, flowers and fruit. The department advises livestock farmers on modern methods of animal production, helps them in the supply of improved and exotic breeds of pigs and poultry, and provides an artificial insemination service for pigs. Fisheries research covers marine resources, aquaculture, hydrography and marine pollution problems. In marine resources research, emphasis is placed on recommending new fish stocks for commercial exploitation within the range of the Hong Kong fleet, and on monitoring the performance of existing capture fisheries. The newly commissioned 565 GRT fisheries research vessel Tai Shun was inter-calibrated in a trawling exercise with the fishing power of the F.R.V. Cape St. Mary to maintain future comparability of past reseach data, before the latter vessel was retired after more than 20 years of service. The Tai Shun will be used to conduct acoustic surveys of pelagic fish in the northern part of the South China Sea, and related fisheries hydrographic research, as well as exploratory fishing on the edge of the northern continental shelf.

Of the other facets of fisheries research being conducted, aquaculture is concerned with developing more efficient culture systems; hydrographic investigations are designed to supply environmental information for an assortment of biological programmes; and marine pollution research is aimed at assessing the impact of pollution on aquatic ecology and to recommend means of ameliorating water qualities for fisheries.

Developing Farming and Fishing

     Owing to the shortage of farm labour in Hong Kong and its rising cost, the main develop- ment 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 1981, there were 3 200 rotary cultivators and 2 100 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 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.

Straw mushroom cultivation has gained considerable popularity in recent years which is reflected by the increased number of local mushroom farms from 40 in 1979 to 60 in 1981. The locally produced mushroom has about 30 per cent of its share of the local market.

      Teams of argicultural 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 during the year, more than 223 farmers attended farm discussion groups led by professional and technical officers from the Agriculture and Fisheries Department. Some 21 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 58 000 visits to farmers and co-operative societies, and many farmers visited government experimental farms and farming projects.

      Fisheries development work involves modernising fishing craft and introducing more efficient fishing gear and navigational aids. An advisory service on hull design and deck arrangement is provided for fishermen, while experiments and demonstrations are conducted to test the suitability of new fishing gear. Fisherman'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 1981, more than 3 900 children were attending these schools. A further 28 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 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, 1981, loans issued since the inception of these three funds had reached a total of $145.2 million. Of this, $136.6 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 $10 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, 1981, loans issued since the inception of these four funds totalled $106 million, of which $94.4 million had been repaid.

      Co-operative societies operate under a Co-operative Societies Ordinance, which provides for the appointment of a registrar - the Director of Agriculture and Fisheries. His powers and duties relate to the registration of co-operative societies and their by-laws, the auditing of accounts, inspection and inquiry, general supervision of operations, and such matters as mediation in disputes and dissolution when necessary. At the end of the year, some 11 825 farmers and more than 1 680 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 8950 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.

There are 60 credit unions with about 13 840 members 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 employment; and six unions formed by groups each with a common bond of residence.

Land Usage

     Hong Kong's land area totals 1064 square kilometres. Of this, 9.2 per cent is used for farming, 74.8 per cent is marginal land with different degrees of sub-grade character, and



built-up areas comprise the remaining 16 per cent. The need to establish new towns and expand residential areas in the New Territories has resulted in an encroachment on agricultural land. The losses, however, have been partially offset by highly intensive farming. The City and New Territories Administration is responsible for land tenure and certain aspects of land development in the New Territories.


Approximate area (square kilometres)

Percentage of whole

(i) Urban built-up lands



(ii)) Rural developed lands



(iii) Woodlands



(iv) Grass and scrub lands



(v) Badlands



(vi) Swamp and mangrove lands



(vii) Arable



(viii) Fish ponds



Agricultural Industry


Main urban area of Hong Kong Island, Kowloon and six New Towns in the New Territories (Tsuen Wan, Tuen Mun, Yuen Long, Fanling/Shek Wu Hui, Tai Po and Sha Tin) including district open space (parks and gardens), but excluding all other non-built-up land.

Rural market towns and villages and other developed sites in the New Territories such as reservoirs, roads and railways etc. Natural and established woodlands. Natural grass and scrub, including those

within country parks.

Stripped of cover. Denuded granite country.

Capable of regeneration.

Coastal brackish swamp and mangrove.

Cultivable land, including orchards, market gardens, under cultivation and fallow. Fresh and brackish water fish farming,

excluding coastal marine fish farms.

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 and other field crops. The value of crop production has increased from $89 million in 1963 to $555 million in 1981 - a rise of 524 per cent. Vegetable production accounts for more than 86 per cent of the total value, having increased from $58 million in 1963 to $478 million in 1981.

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; dehlias, 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 increased from 910 hectares in 1954 to 4 970 hectares in 1976 but has since declined gradually to 2 630 hectares in 1981 mainly as a result of the development of new towns in the New Territories.




       The amount of land used to cultivate rice has dropped from 9 450 hectares in 1954 to 10 hectares in 1981. Rice production has given way to intensive vegetable production, which gives a far higher return. Much former paddy land around the more remote village has fallen into disuse and now lies fallow.

      Various types of fruit are grown in Hong Kong. The principal crops are longan, lychees, wampei, tangerines, local lemons, bananas, guavas and pineapples. Land under orchards in 1954 totalled 390 hectares; by 1981 it was 690 hectares.

       Other field crops such as sweet potatoes, taro, yams and sugar cane are cultivated on a small scale 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 1981, 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 as pure strains of the Chinese type are difficult to find. The value of locally-produced pigs killed in 1981 amounted to $221.8 million.

With an annual production value of $542 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 1981, local chicken production increased by 12.6 per cent to about 17.4 million birds consumed, with an increase of 40 per cent in the number of live chickens imported from China. The value of hen eggs produced amounted to $36 million for the year.

       While local cattle are used mainly for work, Friesians are kept by dairies most of which are in the New Territories.

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 government's veterinary laboratory.

       Stringent rabies control measures continued to remain in force. These included extensive immunisation of dogs and cats against rabies, intensive catching and elimination of stray dogs and restriction of dog movement into and out of the gazetted rabies-infected areas which covered part of northern New Territories. By the end of the year, seven rabies cases had been confirmed, 47 020 dogs humanely destroyed and 43 628 dogs licensed and inocu- lated against rabies.

As standard practice, all imported dogs and cats, other than those from Britain, Ireland, Australia and New Zealand, are subject to six-months quarantine. Any dog that bites a person is required to be detained for observation in government kennels for a period of seven days.

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

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.

       Total estimated production from the two major sectors - marine capture and culture fisheries - amounted to 182 000 tonnes with a wholesale value of $1,340 million in 1981.



These figures represent a decrease of 65 per cent in weight but an increase of three per cent in value compared with 1980. 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, 88 per cent came from marine capture and 12 per cent from culture fisheries.

       An estimated 30 000 fishermen work a fleet of 5 000 vessels, of which over 90 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 65 per cent or 65 000 tonnes of marine fish landed in 1981. The total landed catch of live and fresh marine fish available for local consumption in 1981 amounted to 80 000 tonnes, with a wholesale value of $550 million. This represented 90 per cent of the local consumer demand.

      Pond fish farming is the most important culture activity. Fish ponds covering 1840 hectares are in the New Territories, principally in the Yuen Long district. Traditional pond fish farming is similar to that practised in China for hundreds of years. Several different carp species are cultured in the same pond, each deriving its food from a different source and 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 gradually declined. During the year, they yielded 6780 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 1981, live marine fish supplied by this activity from some 60 sites amounted to 960 tonnes valued at $53 million.

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


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 the department. During 1981, 34 per cent of the total quantity of locally-produced vegetables, and 75 per cent of the total landings of marine fish, were wholesaled through the Vegetable and Fish Marketing Organisations respectively.

      The Vegetable Marketing Organisation operates under the Agricultural Products (Mar- keting) Ordinance, which provides for a board to advise the Director of Marketing (the Director of Agriculture and Fisheries). Its main concerns are transporting locally-produced vegetables from the New Territories to the wholesale market in Kowloon, 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, 76 837 tonnes of vegetables valued at $204.3 million were sold through the organisation.

      The Fish Marketing Organisation operates under the Marine Fish (Marketing) Ordi- nance, 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 included 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 1981, the wholesale fish markets handled 81 925 tonnes of marine fish, crustacea and molluscs which were sold for some $475 million. This included 1 150 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.


      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, one mining lease, six mining licences and three 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, conveyance, 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.

      The old government explosives depot on Green Island, situated off the western tip of Hong Kong Island, was moved to a new location on Stonecutters Island in August 1981. The consumption of explosives during the year was 5 442 tonnes.




EXPANSION and improvement continued to characterise the field of education throughout 1981. This was in accordance with the policy set out in the 1978 White Paper on the Development of Senior Secondary and Tertiary Education. Some $3,700 million was provided for education in the government's estimates of expenditure for 1981-2, representing 13 per cent of the total budget for Hong Kong.

       On September 1, a new Education Branch was created in the Government Secretariat and a Secretary for Education was appointed.

A further highlight of the year was the government's announcement, in June, of a $320 million programme of co-ordinated measures to improve the standard of the Chinese and English languages in schools, and in the community. This programme included the revision of language syllabuses to give students more opportunity to use Chinese and English, pur- posefully, as a tool of communication; the provision of a wire-free induction loop system to support language lessons in primary and secondary schools; research projects into problems of language in education; the proposal for a language and communication course in the sixth-form curriculum to strengthen students' skills in Chinese and English to prepare them for further education or employment; the establishment, in 1982, of an Institute of Lan- guage in Education to train or re-train non-graduate teachers of Chinese and English in specialist language-teaching skills; the provision of additional teachers in secondary schools for remedial language teaching from September, 1982; and the setting-up of a working party to study the feasibility of establishing an independent Chinese Language Foundation to pro- mote and facilitate the use of Chinese as a tool for communication, study, work and leisure. To look after the needs of children attending child-care centres, kindergartens and primary schools and to up-grade the services provided for them, a package of improve- ments was announced in the White Paper on Primary Education and Pre-primary Services published in July. These measures took into account the views on the 1980 Green Paper which were expressed by members of the public and educational and welfare bodies. The package included an improved fee assistance scheme for low-income families with children requiring pre-primary services; an improved staffing formula for primary schools; provi- sion of additional basic equipment and materials for primary schools; a modified scheme for controlling entry to primary schools (to be introduced in 1983); and improvements in the standard of rural education. While these measures represented a considerable step forward in qualitative terms, the government intends to keep them under regular review and make further improvements as, and when, resources become available.

      The White Paper on Primary Education and Pre-primary Services marked the comple- tion of the current reviews of the Hong Kong education system which started in 1974 with the White Paper entitled Secondary Education in Hong Kong Over the Next Decade. The time was therefore considered to be ripe for an overall review of the entire education



system; to examine the coherence and effectiveness of the service so far provided; and to consider priorities for its long-term development. Accordingly, after close consultation with members of the Secretariat of the Organisation for Economic Co-operation and Develop- ment (OECD), the government announced, in June, the appointment of an international panel of visitors.

The full panel visited Hong Kong in late October to meet and seek the views held on educational matters by student groups, individuals, parents, academic associations, teach- ers and government officials, and were assisted by two special advisors representing the two main advisory bodies in education in Hong Kong - the University and Polytechnic Grants Committee and the Board of Education. A final review meeting will take place in Hong Kong around March to April, 1982, and the panel's report and account of the final review meeting will be published later on.

      The Junior Secondary Education Assessment (JSEA) System, designed to select and allocate subsidised Form 4 places to Form 3-leavers in the aided school sector, was implemented in 1981. The target provision of 55 000 subsidised school places was achieved in September. These places provided for some 58 per cent of the Form 3 leavers.

A total of 426 schools were entered in the 1980-1 JSEA System. These included 62 Chinese middle schools, 356 Anglo-Chinese schools and eight special schools or special classes in normal schools. The total number of candidates was 89 602.

The JSEA Scaling Test, held for the first time in early January, covered the three basic subjects Chinese, English and mathematics. Pupils in prevocational schools were required, however, to take other papers in technical and commercial subjects. Internal assessments of the Form 3 pupils which were submitted twice to the Education Department, in mid-January and in May, were subsequently scaled. The averages of the two internal assessments were used as the basis for selection and allocation. Results of the first JSEA were announced in the last week of July.

In response to the United Nations decision to proclaim 1981 the International Year of Disabled Persons, the Education Department organised a series of commemorative activities. These included six lectures on particular trends in special education, arranged in conjunction with the Department of Extra-mural Studies of the University of Hong Kong during January and February; the promotion of joint functions between ordinary schools and special schools; the 'Join In' exhibition in March to encourage children in special schools to participate in the various youth activities of such organisations as The Red Cross, The Scout Association of Hong Kong and the Community Youth Club; an art and craft exhibition by children in special education, held in July and August; and an athletics meeting involving able-bodied and disabled competitors in November.

A training unit was set up in the Education Department in April to plan and organise courses in educational management for heads and senior staff of schools and departmental officers; to liaise with, and give advice to, local bodies offering courses related to educational management; and to assist divisions within the Education Department in arranging courses and seminars for staff development.

Eight new secondary schools were completed during the year, bringing the total number of schools in the Secondary School Building Programme to 72. A further 58 schools, including 12 prevocational schools, are expected to be completed by 1985.


In September, there were 729 kindergartens in Hong Kong, providing pre-school education for 200 426 children in the three-to-five years age-group. These private institutions are



supervised by officers of the Education Department, whose professional advice is freely available to school managers, teachers, parents and members of the public. Government assistance includes grants of Crown Land to reliable bodies, 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 per 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.

      An important milestone in this field of education was the publication, in July, of the White Paper on Primary Education and Pre-primary Services, which is primarily concerned with improving the quality of educational services for children in the age range four-to-six years (the kindergarten group) and six-to-12 years (the primary group), with effect from September 1982.

In September 1981, the primary school enrolment totalled 537 123 compared with 540 260 the previous year. In addition, 11 636 pupils attended night schools. During the past year, 11 970 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.

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 85 367 Primary 6 leavers participating in the SSPA were allocated Form 1 or Middle 1 places in schools in the public sector, which comprises places in government and aided schools, private non-profit-making schools in receipt of per caput grants, and private independent schools in the 'bought places' scheme.

      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.

The Student Guidance Scheme launched in September, 1978, has continued to expand and was providing a social work service in 665 primary schools (which is about 65 per cent of the total) at year's end. Two groups of newly-recruited student guidance officers completed a basic three-month training course and commenced work in primary schools during the year. The service will eventually be extended to all primary schools by March 1982.

Secondary Education

In terms of curriculum and medium of instruction, Hong Kong's secondary schools can be classified into four main types: Anglo-Chinese secondary schools, Chinese middle schools,



secondary technical schools and prevocational schools. The 326 Anglo-Chinese grammar day schools had enrolments totalling 385 543 (compared with 386 531 in 1980). They offer secondary courses, of at least five years, in a broad range of academic and cultural subjects leading to the Hong Kong Certificate of Education Examination; most also provide a sixth and seventh year. The medium of instruction is mainly English, while due prominence is given to Chinese subjects. Certificate of Education candidates with satisfactory 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. Many pupils also sit for the United Kingdom General Certificate of Education Examination at both ordinary and advanced levels.

      In 1981, there were 78 Chinese middle schools accommodating 43 587 pupils, compared with 48 105 in 1980. 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 20 692 students in 23 schools. 10 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 and higher level examinations, but emphasis is given to technical and commercial subjects. Suitably qualified candidates may 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. A small number of senior secondary classes are provided for the academically more capable students to 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 introduc- tion 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 supported by the Hong Kong Training Council and welcomed by industry.

The curriculum content of prevocational schools is made up of about 50 per cent technical education and about 50 per cent general education for Forms 1-3. The technical content is reduced to about 30 per cent in Forms 4 to 5. At present, there are 13 prevocational schools with a total enrolment of 9 735. A further 12 schools of this type are being built and will be in operation by 1983.

Only a small number of Hong Kong students continue to pay for junior secondary education, either because they attend English-speaking schools (which are intended primarily, though not solely, for the expatriate community), have a different mode of financing, or because they choose to attend fee-charging schools.

      The year saw the further improvement of a number of consultative arrangements, between the Education Department and various schools, which 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 for 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 1981 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 26 017 to 28 813. Presently, there are 69 special schools - three for the blind, four for the deaf, 20 for the physically-handicapped (including 12 hospital schools), 33 for the mentally-handicapped, eight for the maladjusted and socially-deprived and one for the slow-learning.

       In addition, there are 146 special and resource classes in ordinary government schools - 66 for the slow-learning, 36 for the partially-hearing, eight for the partially-sighted and 36 for the maladjusted; there are also 542 special and resource classes in ordinary aided schools - 509 for the slow-learning and 33 for the maladjusted. These special and resource classes (and a school for slow-learning children) are for the less severely handicapped and 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.

      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 disability. In the past, they received less formal training in centres operated or subvented by the Social Welfare Department.

Since April 1979, however, the Director of Education has carried out a phased takeover of responsibility to provide education for these children. In 1981, two centres previously subvented by the Social Welfare Department and the Medical and Health 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 allow remedial action to be taken as early as possible. In the course of the year 212 661 children were screened, assessed, and provided with remedial services by the Special Education Section of the Education Department. Of these, 192 041 primary school children underwent the group testing and screening programmes which included vision, audiometric and speech screen- ing. Assessment and remedial services including adjustment groups, teacher and parent counselling, speech and auditory training, and speech therapy were also expanded substan- tially. Altogether, 20 625 children have benefitted from further attention 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 Education Section and local in-service courses are run for teachers in special schools and classes. During 1981, seven 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 239 teachers enrolled in the various courses during the year. Since 1961, the running of these courses has been the responsibility of the Special Education




Section of the Education Department. From September, however, the responsibility for operating two of the courses for teachers of slow-learning children and mentally- handicapped children - was transferred to the Sir Robert Black College of Education. The Special Education Section continued to organise short courses, seminars and workshops 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 with a sixth being 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 disciplines include construction, electrical engineering, mechanical engin- eering, 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.

       Enrolment in the technical institutes continued to increase and during the first term of the 1981-2 academic year, there were about 3 520 full-time, 10 100 block-release and part-time day and 16 240 part-time evening students. In September, the teaching establish- ment of the technical institutes was 418 while the establishment of the supporting staff stood at 332. Several major items of equipment were purchased during the year - among them a new computer system, installed in the Lee Wai Lee Technical Institute, which is intended to serve all of the territory's technical institutes by means of on-line terminals.

      A credit-unit system has been adopted for technician study programmes, chiefly to provide greater flexibility for students. A large number of programmes in the main disciplines have been validated by the Technician Education Council (TEC) in Britain, while validation for others is being sought. TEC qualifications are recognised for qualifying for exempting purposes by many professional and technician bodies in the United Kingdom.

      A number of postal surveys were conducted to collect information from past and present students. These included an employment survey of all the 1981 graduates from full-time courses and tracer studies of full-time students who completed their courses in 1976 and 1977. It was evident from results of the surveys that graduates of the technical institutes had no difficulty in finding employment appropriate to their course of study and that their career prospects were generally good.

      The Technical Education Division of the Education Department continued to be engaged in the planning and development of technical education and vocational training for the disabled. These services, provided at the World Rehabilitation Fund Day Centre (a purpose-built vocation training centre for the disabled) will be expanded as additional accommodation at the centre becomes available. During the year, two International Labour Organisation planners assisted the division in setting-up facilities and staff training programmes in three new activities for the disabled: training programmes based on the concept of modules of employable skills, vocational assessment and technical aids. In accordance with the government's policy of integrating the disabled into the community, some 40 handicapped pupils were admitted to various courses in the technical institutes. A code of aid for subventing vocational training centres run by voluntary agencies was in the final stage of preparation as the year ended and will shortly be implemented.


Post-Secondary Education


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


      The Hong Kong Baptist College, registered in 1970, has four faculties - arts, business, social sciences and natural sciences and engineering - and has a total enrolment of 3 264 students.

      The Hong Kong Shue Yan College, registered in 1976, consists of three faculties - arts, social sciences and commerce. The college has 11 departments offering day and evening courses with an enrolment of 3 381 students.

Lingnan College, registered in October 1978, has three faculties arts, business and

music - and an enrolment of 898 students.

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

      Government assistance to the Hong Kong Baptist College and Lingnan College was provided following their agreement to restructure their courses in line with proposals set out in the 1978 White Paper on the Development of Senior Secondary and Tertiary Education. The rates of assistance were revised during the year, following a salary increase in the aided secondary school sector.

      A delegation from the United Kingdom Council for National Academic Awards visited Hong Kong in January and November, at the invitation of the Director of Education, to carry out independent assessments of the standards achieved in the restructured post-Form 6 courses at the Hong Kong Baptist College and Lingnan College. During the January visit, the delegation examined courses in business studies, natural sciences and engineering as well as the institutional administration of both colleges. In November, the Baptist College courses in the humanities and social sciences were examined.

      In addition to the approved post-secondary colleges 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

The government attaches considerable importance to the development of university and polytechnic facilities. Education at this level is necessarily expensive and the government relies on the University and Polytechnic Grants Committee (UPGC), appointed by the Governor, to provide impartial and expert advice on the level of financial support to be given to the three institutions from public funds, while preserving their autonomous position. While the institutions have some financial resources of their own, they are largely financed by the government.

In 1981, recurrent grants totalling almost $1,840 million were approved for the two universities and the polytechnic for the 1981-4 triennium. These grants do not allow for the development of the new medical school at the Chinese University of Hong Kong nor for the development of dental studies at the University of Hong Kong, these activities being funded for the time being under separate grants which, in the 1981-2 academic year, will total $63 million. In addition, considerable capital expenditure, of $190 million, is envisaged in 1981-2 and is forecast to continue at approximately this level up to 1986-7. The expenditure involved is designed to provide a student population of 11 620 at the two universities in 1983-4, and a full time equivalent of 12 000 at the Hong Kong Polytechnic,



which has almost been achieved. The capital works programme for the universities is currently geared to an annual growth of four per cent after 1983-4. This growth rate is, however, subject to review following consideration of the report on the development of post-secondary and technical education.

      In November 1980, the government launched a committee to review post-secondary and technical education. The committee completed its work in June 1981, and limited consultations have taken place on the findings and recommendations in its report - including consultations with the UPGC. It is the government's intention to issue a policy statement in early 1982.

      Grants and interest-free loans for some students at the University of Hong Kong, the Chinese University of Hong Kong and the Hong Kong Polytechnic are provided from public funds under a government scheme. The scheme, administered by the Joint Com- mittee on Student Finance, ensures that lack of means does not prevent students from taking up full time places in any of the three institutions. In the 1981-2 academic year the amounts required for grants and loans have increased markedly compared with those of previous years following a review of the scheme. In 1981-2, about 60 per cent of all full time students received assistance. The total expenditure involved is $21.8 million in grants and $64.4 million in loans.

      A further scheme was introduced in 1981 to provide loans to Hong Kong students studying at universities and polytechnics in the United Kingdom. These loans, which are also means tested, are intended to cover the difference in cost between the fees for United Kingdom 'home' students and students from overseas. In 1981-2, loans totalling $21.66 million were provide to 1 450 such students.

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 (com- prising the departments 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 and one centre - the Institute of Medical and Health Care, the Institute of Textiles and Clothing and the Centre of Environmental Studies.

      At present, 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 certificate, higher certificate, endorsement to the higher certificate, diploma, higher diplo- ma, advanced higher dipolma and associateship and cover a wide range of both technical and commercial subjects. The polytechnic also offers short full-time and mixed-mode courses. Short full-time courses are of less than one year's duration and are offered to meet recurrent demand. Mixed-mode programmes enable students to register on a unit basis and to select a suitable combination of daytime and evening classes. In addition, a number of part-time programmes are organised to prepare students for professional examinations and



a variety of extension courses are offered at different times during the year on an ad hoc and self-supporting basis.

       The polytechnic has recently reorganised the academic structure relating to part-time studies. This reorganisation was undertaken partly to emphasise the importance that the polytechnic placed on this area of work, and partly as a result of the UPGC decision to allocate separate funds for evening-only courses.

Since 1972, student and staff numbers have increased tremendously. At the beginning of the 1981-2 academic year, there were approximately 7 930 full-time students (including those in sandwich and mixed-mode programmes); 4 680 part-time day release and 13 300 part-time evening students, and 2 520 students taking short full-time courses. In June, the staff strength stood at 1 908 - comprising 744 teaching, 181 senior administrative and 983 technical, clerical and ancillary staff.

The campus development in 1981 included the completion of the Phase IIA building adjoining the Tang Ping Yuan Building, and the Marine Engineering Training Laboratory. The two wings of the Phase IIA building provided eight floors of multi-purpose accommo- dation for both staff and students. The Marine Engineering Training Laboratory provided dockyard training for students undertaking marine engineering cadet courses. Generous donations were received towards the rehousing of the Department of Design (which is to be renamed the Swire School of Design) in the Phase IIA building and the construction of the Marine Engineering Training Laboratory. In addition, detailed plans were also in progress for the construction of a general purpose hall suitable for major functions, conferences, seminars, exhibitions and other polytechnic activities for students and staff.

      The polytechnic is the Hong Kong centre for the annual examinations conducted by the British 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. Some 5 000 candidates sat for these examinations in 1981. In addition, the polytechnic offers accom- modation and facilities for the examinations of 20 other professional institutions.

      Close liaison with the community has been maintained through various channels. Polytechnic staff members assist and advise the Hong Kong Examinations Authority and the Hong Kong Training Council. Advisory committees have been set up for every department, centre and institute. 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 has been maintained with the two local universities. In addition to membership on the Polytechnic Council, staff members of both the University of Hong Kong and the Chinese University of Hong Kong served as chairmen or members of polytechnic advisory committees. Professors and senior academic staff of the two universi- ties were among the polytechnic's external examiners in the same way polytechnic staff members serve on the examination subject committees of the two universities.

      Members of the polytechnic staff are also engaged in consultancy and investigational work for commerce and industry and are actively engaged in research work of direct relev- ance to Hong Kong. The Research Committee is responsible for overall research policies and the utilisation of research funds. A research handbook listing current and recently com- pleted research projects undertaken by polytechnic staff is published at regular intervals.



In the year under review, the polytechnic was engaged in the preparation of degree course proposals with a possible view to offering degree courses in a number of academic fields towards the end of the 1981-4 triennium. These proposals are to be assessed by the United Kingdom's Council for National Academic Awards (CNAA) through the UPGC to ensure that any degrees awarded by the Hong Kong Polytechnic will receive international recognition. The polytechnic will celebrate its 10th anniversary on August 1, 1982, and an organising committee was set up in January 1981 to propose a programme of suitable functions to mark the occasion.

University of Hong Kong

In the course of the year, the University of Hong Kong celebrated its 70th anniversary, having been founded in 1911 by initially taking over the work of the former College of Medicine which was established in 1887. The university's central estate is on the north- western slopes of Hong Kong Island, but it also occupies a tract of land adjacent to the Queen Mary Hospital.

The structure and governance of the university is similar to that found in most British universities. Most of the undergraduate courses are of three years' duration and lead to honours degrees. All undergraduates are full-time students and are almost entirely from Hong Kong. The medium of instruction is English except in the Department of Chinese. External examiners and eminent academics, generally from universities in the West, visit in each subject area at least every three years and moderate each year's finals papers to ensure that international standards are upheld. Students are admitted mostly on the results of the Hong Kong Advanced Level Examination, and competition for places is intense. The academic staff is recruited through international advertisement.

The university is a member of the Association of Commonwealth Universities (ACU) and during the year was joint host, with the Chinese University of Hong Kong, of the ACU conference of executive heads. Under the auspices of the Committee for International Co-operation in Higher Education, the HKU has the benefit of advice from senior academics from the United Kingdom and various Commonwealth universities who visit from time to time to give advice on specific academic questions.

Recent major developments at the university have included the establishment of a dental school with the first students being admitted in September 1980 - and the establishment of a Centre of Urban Studies and Urban Planning. As the year ended, the university was in the midst of a substantial development phase with new buildings to accommodate science and student amenities having been opened during the year, and work was underway on other buildings for academic purposes.

      The university also provides facilities for extra-mural study, though not to degree standard, through its Department of Extra-mural Studies. In 1981, the Department of Extra-mural Studies provided 790 evening and day courses in a wide variety of vocational and professional fields for more than 23 000 students.

      The number of undergraduates registered in the various faculties and schools at the beginning of the 1981-2 academic year were: arts 1 108; science 644; medicine 924 (including 149 for dentistry); engineering 814; social sciences 824; architecture 253; and law 218. There were also 1 590 post-graduate students: 798 reading for higher degrees and 792 for diplomas and certificates.

      In addition to courses leading to first degrees, the university offers post-graduate courses leading to the degrees of Master of Arts, Master of Science in Engineering, Master of Social Sciences, Master of Social Work, Master of Business Administration, Master of Medical



Sciences, and Master of Education. There is also provision for the research degrees of Doctor of Philosophy, Master of Philosophy, Doctor of Medicine, and Master of Surgery, as well as Higher Doctorates in Letters, Science, Social Sciences, and Laws. Certificates and diplomas are obtainable in the fields of law, education, psychology, various engineering subjects, the 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.

The university is well-equipped with libraries and laboratories. A total of 617 500 volumes are accommodated in the main library and in subsidiary units such as the Fung Ping Shan Chinese Library, which has a very valuable collection of works in Chinese. The Fung Ping Shan Museum of Chinese Art is attached to the university and is also used as a teaching museum by the Department of Fine Arts.


      Each department pursues its own specialist research interests and in some areas these are centred on problems of particular interest to Hong Kong. These include studies in the economic relationship of Hong Kong and China and in public administration in Hong Kong. Examples of research in progress in the School of Law during 1981 were: modern Chinese law; computerisation of the law; international commercial transactions and taxation; Chinese testaments; domestic violence; sentencing; personal injuries; comparative legal systems; and international law. In the Engineering Faculty research was conducted into computer applications in electrical and electronic engineering; acoustics; solar energy; high building research; and finite analysis.

      The Centre of Asian Studies continued to serve as a focal point for the academic community working on single and multi-disciplinary research projects on China, Hong Kong, East Asia and Southeast Asia and its three seminar programmes, formally instituted the previous year, facilitated group research and supplemented the university's teaching programme.

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 College (founded in 1951), New Asia College (founded in 1949) and United College (founded 1956). The campus covers more than 110 hectares of land near Sha Tin in the New Territories.

       The new Faculty of Medicine admitted its first class of students in 1981. The curriculum of the faculty is a five-year programme. The first two years are devoted to pre-clinical studies, followed by three years of clinical work to be conducted at the Prince of Wales Hospital in Sha Tin. Apart from admitting students to the first-year pre-clinical course, the university also admitted potential medical major students in September. Potential medical major students who have successfully completed a one-year science course are eligible for admission to the first-year pre-clinical course of the medical faculty the following year. The university will confer the degree of MB ChB as from 1986.

       The four faculties of arts, business administration, science and social science offer four-year undergraduate courses leading to Bachelor degrees. At the postgraduate level, the graduate school offers courses of advanced studies and research through its 21 divisions.



       The undergraduate enrolment in September totalled 4 456 and comprised: arts 1040, business administration 872, medicine 63, science 1 254, and social science 1 227. In addition, 692 students were enrolled in the graduate programmes. These included 340 reading Diploma in Education courses and 17 overseas students and scholars enrolled in the university's international Asian studies programme.

       The number of candidates who sat for the 1981 Hong Kong Higher Level Examination totalled 18 336, of which some 4 429 fulfilled the entrance requirements. Of these, 1 115 were admitted for the 1981-2 academic year.

       A total of 1 201 students graduated from the university in 1981. They included 45 Masters of Philosophy, 71 Masters of Business Administration, seven Masters of Arts (Education), one Master of Art, three Masters of Social Work, 259 Bachelors of Arts, 250 Bachelors of Business Administration, 268 Bachelors of Science and 295 Bachelors of Social Science.

      In the 1981-2 academic year the Department of Extra-mural Studies offered more than 1 000 general, certificate, correspondence, radio and newspaper courses covering a wide range of subjects. Most of these courses were being conducted in Cantonese and Mandarin and had a total enrolment of 31 867.

      The library system comprises the main university library and three branch libraries in the colleges. The combined holdings of the libraries in 1981 totalled 369 155 volumes in Oriental languages, 345 243 volumes in Western languages, and 5 377 current periodical titles.

      Building projects completed during the year included a multi-purpose auditorium, a sports centre, and two blocks of senior staff residences. Construction work on a student hostel and an extension to the existing Science Centre complex was underway.

      Apart from the medical course, other programmes launched in 1981-2 were: doctoral courses in biology, biochemistry and physics and master's courses in fine arts and statistics. A three-year part-time day-release programme leading to the Master of Social Work degree, and a six-year part-time day-release programme leading to the Bachelor of Social Work degree, were also introduced.


In addition to research programmes conducted in individual departments, the university has three research institutes: the Institute of Chinese Studies, the Institute of Science and Technology, and the Institute of Social Studies and the Humanities. They promote inter-disciplinary research in their respective faculties, and provide facilities for faculty members to keep abreast of, and contribute to, developments in their own fields.

The Institute of Chinese Studies has three research centres and an art gallery. The Comparative Literature and Translation Centre carries out comparative studies of Chinese and Western literature and translations of classical and contemporary Chinese material. The Centre for Chinese Archaeology and Art concentrates on the building up of relevant facilities for research in the field, and on archaeology in China. The T.T. Ng Chinese Language Research Centre conducts studies on teaching materials and methods of teaching Chinese in primary and secondary schools, as well as contrastive studies of the grammar of Cantonese, Putonghua and English. It also compiles Chinese dictionaries and language indices.

Operating within the Institute of Science and Technology are three research centres. The Chinese Medicinal Material Research Centre undertakes investigation into Chinese herbs for fertility regulation; treating hepatitis and curing influenza; the bioactivities of ginseng;



and the computerisation of information on Chinese medicinal meterials. The university currently serves as a World Health Organisation Collaborating Research Centre for the study of herbs for fertility regulation, and also as a Commonwealth Science Council Liaison Centre for the cultivation and processing of medicinal plants. The Food Protein Production Research Centre conducts research into intensive aquiculture involving the use of sewage wastes through successive steps in the algae, shrimp, and fish food chain; the production of vegetable crops in sewage sludge; and the cultivation of straw mushrooms using cotton waste and used tea leaves. The Hung On To Research Centre for Machine Translation is engaged in developing a system capable of compiling a Chinese-English glossary.

Six research centres are grouped under the Institute of Social Studies and the Humani- ties. The Economic Research Centre focuses its attention on the economy of Hong Kong and of the West Pacific region. The Centre for Communication Studies continues of focus on communication concepts, patterns and principles in traditional and contemporary Chinese society, while the Social Research Centre conducts research on the Hong Kong society with reference to its social order and social problems. The centre also undertakes studies on China. The Centre for East Asian Studies is committed to research on the historical, cultural, and socio-economic changes and interactions in four areas: Japan and Korea, Southeast Asia, Hong Kong and the New Territories, and China in the East Asian context. Since 1980, the centre has undertaken an oral history project, in which local and overseas residents are interviewed on the history of Hong Kong and China. The Public Affairs Research Centre engages in research projects relating to law and state building in China and the relationship between development and administration in Hong Kong. The Geographical Research Centre studies recent developments in the New Territories, environmental perception, ground water and visibility, internal migrations of the rural population of Hong Kong, and the Special Economic Zones in China.

During the 1980-1 academic year, the university was the venue for numerous interna- tional conferences and meetings. A number of these were arranged in conjunction with local organisations and some were co-sponsored by overseas bodies including the Interna- tional Association of Schools of Social Work, the Inter-University Consortium for International Social Development, the International Development Research Centre in Canada, the World Institute for Advanced Phenomenology Research and Learning and the Association of Commonwealth Universities.

Teacher Education

Teacher education, except that for technical teacher training, is provided at the Education Department's three colleges of education - Grantham, Northcote and Sir Robert Black. Since September, 1980, all three colleges have introduced a new three-year full-time course to replace the traditional two-year course. A separately-structured two-year full-time course was also 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, in 10 subject areas, for both trained serving teachers and students who have completed an initial full-time course. Part-time in-service courses are also provided for teachers in secondary schools who seek further professional training. In September, 1981, a two-year, part-time, in-service course of training for kindergarten teachers was introduced at Grantham College of Education, and a two-year, part-time, in-service course of training for teachers of handicapped children was introduced at Sir Robert Black College of Education. In



September, there were 1 145 students in the three-year course; 269 students in the new two-year course; 157 students in the advanced course; and 1 238 students in the in-service training courses.

       Financial assistance in the form of interest-free loans and maintenance grants is provided by the government for students enrolled in the full-time courses. The maximum mainte- nance grants and interest-free loans awarded 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. 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 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 for secondary school-leavers who have prior studies in either technical or commercial subjects. In September, 1981, a one-year full-time supplementary course in design and technology was offered to graduates of the two-year full-time course. The college also provides in-service courses for teacher training, and courses for supervisors and instructors employed by industry.

Adult 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, 16 Adult Education and Recreation centres and 12 subvented voluntary organisations.

      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 literature, philosophy and sociology. It also offers short courses of 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, Putonghua in primary schools and a variety of creative subjects.

      The Evening Institute offers courses ranging from literacy to secondary and post- secondary studies at its 122 centres. 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, cookery and woodwork. There are also three courses at secondary school level the young people's course, the secondary school course and the middle school course for adults the last two of which prepare students for the Hong Kong Certificate of Education Examination. 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.

The 16 Adult Education and Recreation centres organise many cultural, social and recreational activities designed to stimulate individual awareness within the community, to



cultivate creative ability and to develop individual talents. Various activities have been organised in collaboration with 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.

      A scheme of subventing retrieval adult education courses run by voluntary bodies was extended in the 1981-2 school year due to its overall success. Altogether, 18 projects from 12 voluntary organisations have been granted government subsidies since September 1980, to meet the costs of staff and essential equipment. About 3 300 adults have attended courses organised under the scheme.

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 to advise on curriculum matters, teaching methods and utilisation of resources, the provision of in-service training courses, seminars and workshops for teachers. The inspectorate evalu- ates 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. During 1981, the various subject committees of the Curriculum Development Committee (CDC) continued their work in the preparation and revision of syllabuses, curriculum guidelines and schemes of work for implementation at pre-primary, primary and secondary levels. Courses, seminars, workshops and conferences relating to the implementation of new or revised syllabuses were organised for kindergarten, primary and secondary teachers and heads. Numerous CDC journals, newsletters, bulletins and pamphlets were published for distribution to schools to keep teachers abreast of developments in various subject


      The development of the junior secondary curriculum reached a stage of consolidation after an active period in the last few years. At the senior secondary level, attempts had been made to revise some of the syllabuses and some new subjects were being considered to reflect current educational thinking. Sixth Form Subject Committees examined and, where necessary, revised the sixth form curriculum in the light of recommendations in the Sixth Form Report of 1979.

      The rationale for curriculum development in prevocational schools was re-examined to provide a better co-ordinated framework. Content syllabuses for Forms 1-3 of prevoca- tional schools were completed during the year and consideration was then given to establishing new modes of curriculum for the Forms 4-5 syllabuses.

      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 of improving 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 continued to give positive guidance to schools on the selection of books and a comprehensive list of recommended textbooks for kindergartens, primary and secondary schools was issued every three months (in March, June, September and December). In an effort to improve the quality of textbooks, the committee maintains close links with publishers of educational material.


Teaching Centres


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

During the year, the Chinese Language Teaching Centre conducted some 32 refresher courses and workshops, which were attended by over 1000 teachers. The teaching resources unit of its Kowloon centre was open to teachers of primary and secondary schools on Wednesday afternoons and Saturday mornings. It also accommodated pre- arranged group visits from schools on specified dates, by request. In June, about 750 primary school teachers visited a three-day display of primary pupils' work and materials used in the Chinese supplementary reading scheme held in the centre. Both primary and secondary schools benefit from the dubbing of teaching tapes which is a free service provided by the centre. During the year, a total of 950 such recordings were made.

The English Language Teaching Centre organised 48 intensive courses, workshops, seminars and guest talks for 2 100 teachers during 1981. Nearly 400 follow-up visits were made to teacher participants. The centre also provided schools with a free dubbing service for teaching tapes. Over 3 000 language-teaching tapes were issued to about 150 schools. The centre has a specialist library of about 5 500 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 sixth form students to undertake practical experiments and studies in the field. During the year, 28 residential geography or ecology courses of four days' duration were arranged for 1 127 sixth formers from 55 different secondary schools. The course programme was predominantly academic but recreational activities such as swimming, rope-work, archery and roller-skating were included. A special residential ecology course was organised for 45 science teachers under training from the Grantham College of Education. The Field Studies Centre was also used to conduct a student conservation leaders' training camp which was organised in conjunction with the Agricul- ture and Fisheries Department. Films and talks on the countryside were organised at weekends for campers at the Sai Kung Outdoor Recreation Centre. The purpose of these talks was to arouse a general concern for countryside conservation. Two orientation courses for teachers of geography and biology were also held to promote field studies as an integral part of the school curriculum and familiarise teachers with techniques in field studies and the Sai Kung environment. About 130 teachers from different schools attended these courses.

       More than 1400 primary and secondary school teachers and laboratory technicians visited the Science Teaching Centre to attend seminars, refresher courses, workshops and committee meetings. They also went there to view displays of resource materials and new science equipment and to try out new experiments and new types of apparatus.

      During the year, the Mathematics Section, in co-operation with the Computer Services Centre of the Chinese University of Hong Kong, organised a computer studies course for 60 secondary school teachers whose schools are planning to introduce computer studies into the curriculum.

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 1981, more than 500 secondary school teachers attended courses provided by the centre, which has a variety of reference and teaching materials on display. Plans are being made to further develop these resources and to install new reading facilities including audio-visual equipment, for the use of teachers of social studies.


Visual Education Centre


The Visual Education Centre makes 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, learning packages, picture sets and an increasing number of video-tapes. Instructional hardware, such as projection equipment and sound recorders, is also available.

In addition, arrangements were made with Radio Television Hong Kong to have educational programmes recorded on video-cassettee tapes for loan to schools.

       In all, 30 introductory courses, workshops and seminars on the use of audio-visual aids and the production of audio-visual materials were held for teachers. Sets of slides and packages of study prints on education were also produced by the centre with the co-operation of other sections in the inspectorate.

        To enable teachers to make full use of the facilities in the Media Production Services Unit, plans were underway to develop a video dubbing system and to increase the weekly opening hours of the unit.

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 and up-date their teaching skills in art and design, craft and home economics. It organises in-service courses, workshops, seminars and demonstrations and, in 1981, 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 50 local organisations and schools in arranging competitions and exhibitions. To mark the International Year of Disabled Persons, an exhibition of art and craft by pupils of special schools was organised. It attracted over 20 000 visitors. In addition, the Art Section also organised the selection of local entries for students' art exhibition and competitions in the United Kingdom, Korea, Finland, India and Japan.

       The Home Economics Section arranged 15 in-service courses and five seminars and these were attended by over 420 primary and secondary school teachers. A set of loop-films on how to make Chinese buttons was produced. In the area of curriculum development, the section completed the home economics syllabus for Forms 1-5, in English and Chinese, accompanied by notes for teachers.


In addition to regular in-service courses and workshops, a residential summar school for 100 school music teachers was organised, for the first time, in conjunction with the Hong Kong Arts Centre. The course placed special emphasis on the technique of arranging music for classroom use and included sessions on Dalcroze Eurythmics.

About 54 000 students participated in 266 classes at the 33rd Annual Schools Music Festival, which was judged by four overseas and four local adjudicators. The eight prize-winners' concerts attracted capacity audiences.

Physical Education

The Physical Education Section, which was recently re-organised has four components: School Inspection for the teaching of physical education in primary and secondary schools; School Programme, which looks after swimming, canoeing, life saving, gymnastics,



camping and dancing in schools; Services, which is responsible for the Duke of Edinburgh's Award Scheme and physical education in special schools; and Training, which runs in-service courses for physical education teachers and arranges inter-school sports activities.

       In 1981, a total of 23 courses and seminars were conducted for physical education teachers. The first physical education courses to be run on a district basis for primary schools were well supported by schools and teachers. In August, a special workshop for secondary school teachers looked at Motor Development in Children and Adolescents. It was conducted jointly with the Hong Kong International School.

       In support of the International Year of Disabled Persons, a series of outdoor education camps was conducted for physically-handicapped and mentally-retarded children. The Physical Education Section also was heavily involved in the Disabled Children's Invitation International Games held in Britain and the 1981 Pan Pacific Special Olympics in Hong Kong. Staff of the section devoted much time and effort to coaching athletes and organising functions.


       In addition to the annual Schools Dance Festival - which involved 3 000 pupils from 234 schools the section was responsible for the first Interport School Dance Performance between Hong Kong and Macau (which took place in May), and a mass dance performance of 250 pupils at the Mid-Autumn Festival in Sha Tin, in September.

      With subventions of about $329,000 from the Hong Kong Government and $715,000 from the Royal Hong Kong Jockey Club, the Physical Education Section of the Education Department was able to organise an extensive summer recreation programme for about 280 000 school children.

Community Youth Club

The Community Youth Club (CYC) continued to aim its activities towards sharpening members' awareness of their civic rights and responsibilities. Major undertakings included the third series of the Community Youth Challenge television programme, the Know Your Government project, the Rights of a Consumer cartoon competition and exhibition, and the Safety of Children poster competition. These were organised in association with Radio. Television Hong Kong, the Independent Commission Against Corruption, the Consumer Council, and the Medical and Health Department, respectively. Other competitions and exhibitions were staged on the themes Don't Throw Things from Buildings, and fire prevention. A total of 404 schools participated in the six competitions.

At the district level, the CYC district committees continued to warn against drug abuse and smoking, and to promote community activities such as Clean Hong Kong, conserve the countryside and care for the under-privileged. Exhibitions and quizzes on Know Your District were also organised.

Over 3 000 members gained the Stage I award of the CYC Merit Award Scheme. The scheme requires members to set an example of good citizenship by service to the community.

School Library Scheme

The school library service continued to improve in 1981 with an increased number of school librarians and greater financial assistance. In August, 1979, approval was given to secondary schools in the public sector with 18 classes, or more, to have a school librarian 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.



       For appointment as a school librarian, a teacher is required to have a minimum of two years' teaching experience. School librarians are required to attend a two-year part-time day release training course, organised jointly by the Education Department and the Extra-Mural Department of the University of Hong Kong. Beside general management of the school library, a school librarian is required to work closely with subject teachers and advise them, where necessary, on how to utilise the school library resources to support and enrich the school curriculum.

In March, a seminar on Library-assisted Teaching and Learning was organised for 300 secondary school teachers of various subjects and, in July, two workshops on Library- assisted Teaching and Learning of Integrated Science were attended by science teachers from over 100 secondary schools.

Education Television

The Education Television Service (ETV) celebrated its 10th anniversary in September. The production of various educational television programmes has made a considerable impact on the education of school children in Hong Kong and is regarded as the most useful audio-visual aid currently supplementing classroom teaching. Regular viewing of ETV programmes has become a normal part of the territory's school life. ETV's total audience during 1981 was estimated at 274 000 secondary and 344 000 primary school pupils.

      Educational Television Service programmes are produced locally, in colour, by the Education Department and Radio Television Hong Kong. The programmes, which are transmitted by the commercial television stations, are based on syllabuses used in primary and secondary schools. 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, questionnaires, visits to schools by ETV producers and inspectors, and reports from inspectors of the Advisory Inspectorate have resulted in many improve- ments 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 and video-cassette recorders have been purchased to replace, by stages, the existing black and white receivers in government and aided primary schools. During the year, a total of 685 colour receivers and 10 video-cassette recorders were supplied to the primary schools. Secondary schools already have such equipment.

Hong Kong Examinations Authority

The Hong Kong Examinations Authority, an independent statutory body, began adminis- tering 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. In 1981, a total of 135 701 candidates entered for the Hong Kong Certificate of Education Examination; 18 336 entered for the Hong Kong Higher Level Examination; and 13 435 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.


Hong Kong Students in Britain


The Students Division of the Hong Kong Government Office in London is responsible for assisting Hong Kong students, including 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 relations with educational institutions, departments of the British Government, local education authorities, the British Council, welfare organisations and, in the case of nursing trainees, the medical authorities.

The main development affecting students during the year was the increase in fees. announced in 1979 for overseas students in universities, polytechnics and colleges of further education which became effective from September, 1980.

Despite the government's representations that Hong Kong students should be treated as 'home' students for the purpose of fees, the British Government was unable to accede to this request. As a result, the Hong Kong Government introduced, in March 1981, an Emergency Student Loan Fund for needy Hong Kong students taking first degree courses or Higher National Diploma Courses, or their equivalent.

Following this, the Hong Kong Government Office in London received 1 596 applica- tions and all eligible candidates totalling some 1 400 students were interviewed throughout Britain to determine their claim of needs. Most eligible students received their loans within two weeks of being interviewed.

As from September, a further scheme of assistance administered by the University and Polytechnic Grants Committee and fully means-tested, was introduced.

       The Hong Kong Students Centre in London provides accommodation to Hong Kong students. This centre, with a capacity for 90 people, also serves as a focal point for Hong Kong students while in London. It is administered by the Hong Kong Commissioner in London 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 educational establishments in Britain and other countries.

      Altogether 4 134 students went to Britain during the year; 4 803 went to Canada for secondary or higher education; 2 012 to the United States and 404 to Australia.




     SOME 20 projects in Hong Kong's medical and health development programme, including extensions or improvements to existing hospitals and clinics, were completed during the year. And in the decade ahead, many other planned projects, including five major hospitals of over 1000 beds each and more than 20 clinics and polyclinics in the new towns and major population centres, are due for completion.

      Although the demand for medical and health services rose significantly during 1981 with a rapid increase in population bringing greater pressure to bear on the Medical and Health Department, the year also saw the completion of several major medical projects, the first and foremost being the 1 300-bed Kwai Chung Hospital which was officially opened in October 1981. The Lek Yuen Health Centre in Sha Tin also started operation and provides a general out-patient department, a family health centre, a public health laboratory, a health education centre and a regional office. The new Nam Shan Health Centre also started operating in Tai Hang Tung, replacing the old clinic which was too small to cope with the needs of the area. The Mrs Wu Chung Pre-natal Diagnostic Laboratory at Tsan Yuk Hospital was opened as part of government's overall plan to develop a full medical genetic service in Hong Kong. A 300-bed extension at the Wong Tai Sin Infirmary was completed by the end of the year.

      Major projects under construction or being planned include the Prince of Wales Hospital and Polyclinic in Sha Tin (to be completed by September 1982), a 1 400-bed hospital for the Tuen Mun new town, a clinic in Cheung Hong Estate on Tsing Yi Island, a laundry at Pik Uk, and a school children's dental clinic at Argyle Street Camp.

      A customer relations unit - the first of its kind - was set up at Queen Elizabeth Hospital to improve communication between the hospital and the public by providing prompt in- formation about medical procedures while at the same time helping administrators to deal with public complaints. Pending evaluation of this trial scheme, similar units may be set up in other hospitals.

      Throughout 1981, efforts continued to improve the many categories of health services in Hong Kong: school dental health, mental health, community nursing, control of communic- able diseases, port health, occupational health, school health and family health.

      For the 1981-2 financial year, the Medical and Health Department's estimated expenditure is $1,077 million. Subventions totalling about $589.6 million are also being made to many non-government medical institutions and organisations. The estimated capital expenditure on hospitals and other buildings, including furniture and equipment, is $305.9 million.

Health of the Community

Hong Kong people continue to enjoy good general health assisted by improvements in







Formula for a Fuller Life

In an age of automation, keeping fit has become of universal concern with many people becoming more conscious of their weight and general state of health. Research by the Recreation and Sport Service of Hong Kong's Recreation and Culture Department indicates that a physi- cally fit person can withstand fatigue for longer periods than the unfit; that the fit person is better equipped to tolerate phy- sical stress, and has a stronger and more efficient heart. There is also a relationship between good mental alertness, absence of nervous tension and physical fitness. For centuries, the Chinese have practiced the art of Tai Chi - a non-strenuous activity which co-ordinates the mind and body. And in recent years there has been a greater participation in jogging and other sports. The Recreation and Sport Service, aware of social and recreational constraints in Hong Kong, has launched a massive pro- gramme covering a variety of sports to bring them within easy reach of people's homes. During 1981, some 5000 such projects were conducted with an over- whelming participation by more than half a million people. Some 80 per cent of the activities have been aimed at the working population in efforts to promote good physical and mental health. Hundreds of firms and factories are now receiving tech- nical assistance from the service to provide recreational programmes for their staff.

Previous page: At a new community sports centre at Happy Valley, young people have the opportunity of using modern equip- ment normally found only in private health centres. Left: Body exercise through danc- ing for the professionals, teenagers, and the very young.


This young couple help the Recreation and Sport Service promote the gracefulness and art

of ice-skating at the Lai Chi Kok rink.


This image is tĥavailable for access via the Network

due to copyright restrictions. To view the image, please? Contact library staff for a printed copy of the copyright work.




One of the most popular outdoor activities in Hong Kong is jogging with thousands taking part in organised events, in many cases to raise money for charity.





The keenly contested sport of swimming calls for complete muscle co-ordination and correct breathing to develop a healthy body.






Hary How Kor



'O-gushi, this young boy yells as he throws a man thrice his height in judo practice another form of body exercise.


Three generations practice the ancient Chinese art of Tai Chi. During early mornings both

young and old can be seen in parks engaged in this popular activity.



  High leaps, quick reflexes, team work and a keen eye on the ball are needed in the competitive sport of basketball.





preventive, curative, promotive and rehabilitative health measures by the health authority which have contributed to low mortality rates and a decline in the incidence of major communicable diseases.

       The leading causes of death are various forms of cancer, heart diseases and cerebrovas- cular diseases. The low infant mortality is due mainly to the provision of comprehen- sive family health care as well as improvements in environmental and social economic conditions.

       Because of stringent health measures, Hong Kong has been free from quarantinable diseases for many years, and 1981 was no exception. During the year three imported cases of cholera were reported. All cases were promptly treated and the disease was effectively contained without spreading to the local public.

      Rabies re-appeared in the New Territories after 25 years in October 1980, claiming two human lives and 16 dogs since the outbreak. The Agriculture and Fisheries Department took swift measures by stepping up stray dog patrols, setting up inoculation centres for dogs and prohibiting the free movement of dogs into and out of the infected area. In early 1981, the Directors of Agriculture and Fisheries and Medical and Health Services visited the health authorities in Guangzhou to discuss effective measures in controlling the spread of the disease around the border area.

      A medical advisory committee on rabies was set up and five special centres for the pre-exposure prophylaxis and post-exposure treatment of the disease were established to cope with the situation.

      Although there has been a constant increase in the number of malaria cases reported, all were imported and were detected amongst travellers and refugees from nearby countries. The Medical and Health Department and the New Territories Services Department have stepped up anti-malarial measures for controlling the vector and the disease.

       In spite of a slight upsurge of tuberculosis patients detected in the Chest Service, the incidence of tuberculosis and the number of deaths resulting from it remained low. A large proportion of the increase was found among new arrivals and refugees. The local population who have been given BCG vaccinations are effectively immuned. At present up to 99 per cent of the local new-borns are covered by BCG vaccination and the programme is being gradually extended to cover all the children of new arrivals and refugees.

The rubella immunisation programme covering girls aged 11 to 14 years, which has been conducted in schools since 1978, was actively extended into the community to cover non-immune women of child-bearing age. A registry for congenital rubella was set up and by the end of the year some 25 confirmed cases were recorded.

With outbreaks of pediculosis infestations being reported among some urban and rural schools, regional health staff initiated a succession of screening and treatment programmes in which more than 3 000 children were treated. Health educational activities were directed towards emphasising the importance of maintaining an adequate standard of personal hygiene.


There are three types of hospitals in Hong Kong - government, government-assisted, and private - with a total of 21 586 beds representing 4.2 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 1 200 beds, is the regional hospital for Hong Kong Island. It is also the teaching hospital for the Faculty of Medicine of 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 1 581 beds, is the regional hospital for west Kowloon.

      Princess Margaret Hospital with 1 268 beds serves as a regional hospital for the western New Territories and it also has 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 raised to more than 80 per cent.

In 1981, more than 52 400 patients were treated in the 13 government and 20 government- assisted hospitals.


Out-patient services provided by the government, subsidised organisations and private agencies have been considerably expanded. The government operates 55 general out- patient clinics, polyclinics and specialist clinics. Evening, Sunday and public holiday sessions are held at clinics in the more densely-populated areas as part of an overall measure to meet the demand for out-patient services.

      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 1981, 376 clinics were registered under the Medical Clinics Ordinance. Of these, 85 clinics were under the control of a registered medical practitioner, as required under the ordinance, and 291 clinics were exempted from this requirement. Registered medical practitioners set up clinics in housing estates through the Estate Doctor Association Limited.

The total attendance figure at government out-patient clinics came to 13 million in 1981, 0.2 per cent more than the previous year.

Family Health

     The Family Health Service operates 39 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 programmes are carried out against diseases to which children are particularly vulnerable. During the year, about 90 per cent of new-borns attended the family health centres.

The 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 37 family health centres. Children attending these centres may, if their conditions warrant it, be referred to child assessment centres for further examina- tion by various specialists in this field, including paediatricians, clinical psychologists, physiotherapists, speech therapists, audiology technicians, and medical social workers. The system enables rehabilitation processes to start as early as possible. An expansion programme to set up six more child assessment centres on a regional basis is in progress.



The government-subvented Family Planning Association of Hong Kong runs 41 clinics providing vasectomy, female sterilisation and sub-fertility services and a marital consul- tation service for young couples. In 1981, more than 42 000 new clients visited the association's facilities. The Family Health Service of the Medical and Health Department also 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.

School Health

The School Medical Service is operated by an independent School Medical Service Board. Participation is voluntary and, for a token fee of $5 a year, a participant can receive free medical attention from a general practitioner of the school's choice. The government contributes $50 a year for each pupil enrolled and also bears the administrative cost of operating the scheme.

The School Health Service - a government responsibility - deals with the environmental health and sanitation of school premises and the control of communicable diseases. School health officers, health visitors and health inspectors make frequent inspections of schools, and advise on matters concerning the health of the children, and organise immunisation campaigns.

Mental Health

The Mental Health Service is geared towards a multi-disciplinary approach comprising medical, paramedical and other professional staff including psychiatric doctors, nurses, occupational therapists, clinical psychologists and medical social workers.

The new psychiatric hospital in Kwai Chung is intended to relieve pressure on Castle Peak Hospital. It also provides a variety of new and sophisticated specialist facilities unique to Hong Kong.

      The Psychiatric Unit at Kowloon Hospital, United Christian Hospital and the University Psychiatric Unit at Queen Mary Hospital also provide comprehensive psychiatric services. In line with the universal trend in hospital development, psychiatric units will be incor- porated with other specialised treatment units in general hospitals.

Supplementing the hospital facilities are five major 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 a wide range of out-patient treatment, assessments, analytical, occupational social and recreational therapy services for mental patients.

Severely mentally-handicapped patients are cared for at the Siu Lam Hospital and the Caritas Medical Centre which have 300 places for such patients. The government plans to expand facilities for the mentally ill by providing another 1 700 psychiatric hospital beds by the end of the decade. Six psychiatric out-patient clinics and 300 day centre places will also be made available during the next seven years.

Dental Service

The School Dental Care Service, based at the MacLehose Dental Centre, which was intro- duced in September 1980, continues to provide regular dental health care to those children who join the scheme and to promote dental hygiene amongst the school population. The centre incorporates a training school for dental therapists and a school dental clinic. Six more school dental clinics are being planned on a regional basis.



      Training in dentistry is now available in the Prince Philip Dental Hospital which was officially opened by HRH the Duke of Edinburgh in March 1981. The initial intake of 76 students started training in September 1980 and are expected to graduate by 1985.

      The Government 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 in a number of clinics while the Prince Philip Dental Hospital has also provided a limited 'walk-in' service to the public since October 1981.

Port Health

The Port Health Office 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 health measures required under the International Health Regulations. Health staff regularly check the food and water supply of the flight kitchen service at the airport to ensure that they are clean and safe.

      The office provides facilities for vaccination and for issuing international vaccination certifications.

      It inspects and supervises the eradication of rats on vessels and disinfects Vietnamese refugee boats at Western quarantine anchorage.

      Despite the strain placed on the service since 1979 by the inflow of refugees from Vietnam, Hong Kong remains free of all major quarantinable diseases.

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


In 1981 the influx of Vietnamese refugees continued, albeit at a slower rate, and the strain it imposed on the medical and health resources remained severe. In order to prevent the importation of quarantinable diseases and the spread of communicable diseases among the refugees and to the general population, strict quarantine measures were imposed and vigorous immunisation campaigns and health education programmes were conducted in all refugee camps. Health screening, including chest X-ray examinations was carried out for new arrivals.

      Voluntary agencies continued to co-operate in the running of clinics in the refugee centres for the care of minor ailments while serious cases were referred to government hospitals for treatment. The health status of the refugees has improved significantly during their stay in Hong Kong due to the combined efforts of the government and voluntary organisations.

Special Services

     The Institute of Pathology runs clinical pathology and public health laboratory services for the government and a consultant services for the government-assisted sector. It also administers mortuaries and blood banks. Some vaccines are produced at the Institute of Immunology. Various virus studies on hepatitis, poliomyelities, influenza and rubella are undertaken. The Forensic Pathology Service with its newly established forensic laboratory works closely with the Royal Hong Kong Police Force on the medical aspects of criminology and other medico-legal work.



The Pharmaceutical Service meets the requirements for drugs, dressings, surgical instru- ments and hospital sundries of all government hospitals, clinics and health centres including government-assisted medical institutions. The service also supervises and enforces laws pertaining to the control of dangerous drugs, poisons and antibiotics as governed by the respective ordinances. A forensic pharmacy section has been set up with the expansion of the pharmacy inspectorate services to tighten the existing control over the distribution and sales of drugs under the Pharmacy and Poisons (Amendment) Ordinance 1980.

      The Institute of Radiology and Oncology produces diagnostic and therapeutic services in hospitals and clinics. It handles more than 90 per cent of the patients requiring radiother- apy. The institute also operates a cancer chemotherapy service and cancer registry.

      Besides the establishment of a radioisotope laboratory, staff of the Radiation Physic Division undertake regular inspection visits to medical, commercial and industrial premises to monitor the working conditions of radiation workers and to ensure that radioactive equipment and irradiating apparatus are well maintained and the handling of radioactive substances is safely controlled in accordance with the Radiation Ordinance and Regula- tions.

Community Nursing

The Community Nursing Service extends care to patients discharged from hospitals after acute illness, and provides domiciliary medical care for the sick, the disabled and the elderly in their homes.

      To assess the effectiveness of the service, a consultative committee has been set up to evaluate the progress of the scheme and to ensure the uniformity of standards. At the end of the year there were 29 centres, and special sub-centres were established in all the major hospitals to facilitate effective services.

      During the year 9 620 new patients were attended by community nurses and more than 162 800 home visits were made.

Health Education

The Medical and Health Department plans and implements health education programmes independently and in co-operation with other voluntary agencies.

Major projects during the year on the health hazards of smoking included an anti-cancer campaign organised with the Hong Kong Anti-cancer Society and the Stoma Association of Hong Kong, followed by an anti-smoking campaign co-sponsored by the Hong Kong Anti-cancer Society, the Hong Kong Cardiological Society and the Hong Kong Heart Foundation Ltd. Combined efforts were made by the Education Department and the Central Health Education Unit of the Medical and Health Department to introduce anti-smoking messages into the school curriculum and to assist schools in organising their own anti-smoking projects and campaigns.

In response to the International Year of Disabled Persons, a major mental health campaign was organised with various organisations. Events included exhibitions, public lectures, seminars, workshops and radio programmes.

Medical Fees

     The charge for a consultation at a government clinic has been set at $3 since 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. The fee may be 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. This daily maintenance charge may also be waived in genuine hardship cases. A limited number of private beds are provided at major hospitals. The maintenance charges for these are much higher and additional charges are made for treatment procedures.


      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 dual arrangement with various organisations in the United Kingdom and Australasia. During 1981 more than 110 doctors went overseas for postgraduate training on government or other scholarships.

The University of Hong Kong produces about 150 medical doctors a year. Another medical school, at the Chinese University of Hong Kong, admitted its first intake of 60 students in September who are expected to graduate by 1986.

       An institute of Medical and Health Care at the Hong Kong Polytechnic provides training for paramedical staff including radiographers, physiotherapist, occupational therapists and medical and dental laboratory technicians. In-service training and post-qualification training courses are also available for para-medical staff within the Civil Service.

There are three government hospital schools of nursing for general registered nurses. A fourth will be established in the new Prince of Wales Hospital in 1983, and a fifth school in the Tuen Mun Hospital in 1987. Other approved nurse training schools are attached to government assisted or private hospitals.

Two psychiatric nurse training schools are in the Castle Peak Hospital and the new Kwai Chung Hospital. There is also an enrolled nurse training school in the Kowloon Hospital with an output of about 120 nurses a year and another is planned for the Queen Elizabeth Hospital.

The government also runs post-qualified in-service training courses for registered and enrolled nurses in midwifery, health nursing and community nursing. Selected staff nurses are also send overseas for special training in health education, occupational health and psychiatric nursing.

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 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 closely examined and this provides a greater degree of protection for the consumer.

The laboratory has a statutory responsibility for the physical and chemical testing of food. This work, which stems from the activities of the Hygiene Division of the Urban



Council and Urban Services Department, is also a consumer protection activity and has been expanded to meet the most rigid of internationally accepted standards.


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 residents, particularly young people, from experimenting with drugs to reduce substantially and eventually to eradicate, drug abuse in the community.

Findings from the government's computerised Central Registry of Drug Abuse and other linked indicators showed that the number of drug addicts in Hong Kong is in the region of 40 000.

      Since September, 1976, the registry has received 153 000 reports on 39 000 individual addicts, of which only six per cent were females. Of the 39 000 addicts, 62 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 five per cent were under 20. Heroin is the principal drug of abuse in Hong Kong and is used by 96 per cent of the addicts reported to the registry in 1981; two 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 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 over-crowded 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 about $260 million a year. It consists of four main elements law enforcement, treatment and rehabilitation, preventive education and publicity, and international co-operation. Law enforcement is the responsibility of the 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 education and publicity rests mainly with the Narcotics Division of the Government Secretariat, the Information Services Department and various government district offices concerned with community-building efforts. International co-operation is the responsibility of all.

       The work undertaken in each of these four areas is inter-related. Effective law enforce- ment action pushes up the price of illicit drugs and reduces their supply in turn, inducing addicts to seek treatment voluntarily.

A wide range of programmes are 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 and reconstituted in 1974, 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, which is headed by the Commissioner for Narcotics.

      Substained efforts in the four major anti-narcotics strategies continued to produce rewarding results in 1981. During the year, the price of heroin in the illicit market dropped considerably, with an increase in purity content, compared with the situation in 1980, indicating that the supply of heroin had become more plentiful. In law enforcement, the police and customs continued to apply increased pressure on traffickers at all levels. This resulted in an increase in detections of both serious and minor drug offences, rising from 1 443 and 4 712 in 1980 to 2 000 and 6 728 in 1981, and more drugs were seized in 1981 than in the previous year.

      In the field of treatment and rehabilitation, 1981 was another busy year. Despite a considerable fall-off in street prices of heroin, large numbers of addicts continued to come forward for, 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 maintenance and detoxifica- tion 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 treatment aimed at eliminating the physical dependence on narcotics.

      As the methadone treatment programme has proved to be extremely effective in serving both addicts and the community, the ACAN endorsed in May 1981 a proposal to establish two new methadone clinics in the New Territories in Yuen Long and Sha Tin for addicts living in these areas. The necessary funds, staff resources, equipment and premises have been sought and it is expected that these clinics will become operational early next year.

SARDA runs two voluntary in-patient treatment centres - one for men and the other for women. The male centre, on the outlying island of Shek Kwu Chau, has a capacity for 600 patients, while SARDA's Women Treatment Centre, in Wan Chai on Hong Kong Island, 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 1981, 2 706 patients, including 78 women, were admitted to SARDA's two centres.

      Under these two voluntary treatment programmes and the Prisons Department's compulsory treatment programme, 12 554 addicts and ex-addicts are now receiving some form of treatment, rehabilitation and after-care every day. This represents an increase of 25 per cent compared with the situation six 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 6.9 per cent in 1981; at SARDA's Shek Kwu Chau voluntary in-patient treatment centre addicts under 19 also decreased from 13 per cent to 1.9 per cent in the same period.

      A Bill to protect the confidentiality of information on drug addicts kept by the Central Registry of Drug Abuse and its reporting agencies was enacted by the Legislative Council in July, 1981. Discussions among government departments continued on proposed amend- ments to the Dangerous Drugs Ordinance. These included penalties to be imposed on ocean-going ships repeatedly found to be smuggling dangerous drugs into Hong Kong; redefinition of the term 'manufacture' (of dangerous drugs) to allow suitable charges to be laid in cases where only traces of drugs are found on equipment used for 'diluting' or 'cutting' heroin base; and legal protection for medical practitioners engaged by the police in searching body cavities of suspected traffickers. Drafting procedures for these proposed amendments are at in their final stages and it is envisaged they will become law in 1982.



      Preventive education and publicity continues to play an increasingly 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 1981, ACAN spent more than $1.4 million in its largest preventive education and publicity programme to date. The major events included travelling troupe performances, a singing competition and a number of concerts, a mass jogging event, a television variety show and the 'Youth Against Drugs Scheme' campaign which was launched for the first time. There were also training camps and seminars for students, community leaders and social workers, and a series of exhibitions. To support these activities and publicise anti-narcotics messages, television newsclips and dramas, films, posters and leaflets, were produced.

The Drug Education Liaison Centre - set up in July 1980 under the Preventive Education and Publicity Unit - organised anti-narcotics training and education for young people, parents, teachers, student nurses, social workers and organisations. The centre also produced a range of anti-drug information in publications, films, video-cassette tapes and slides.

      In 1981, the Drug Abuse Telephone Enquiry Service received 1750 enquiries from both addicts and non-addicts. Most enquiries were related to drug addiction treatment facilities.

Externally, Hong Kong continued to play an active and important part in international anti-narcotics operations by maintaining close links with the United Nations, inter- governmental agencies - such as the Colombo Plan Bureau and Interpol - and with individual governments in Southeast Asia, Europe and North America. During 1981, Hong Kong took part in 12 international meetings concerned with anti-drug law enforcement, treatment and rehabilitation, and preventive education. Hong Kong also made its seventh annual contribution of $100,000 to the United Nations Fund for Drug Abuse Control in support of its world-wide anti-narcotics efforts. This include the opium poppy crop- substitution programme in the 'Golden Triangle' where the boundaries of Burma, Laos and Thailand meet and from where 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 1981, 207 anti-narcotics officers from various countries came to Hong Kong on study visits and training courses, either through bilateral arrangements with their governments or under the sponsorship of United Nations bodies such as the World Health Organisation, or the Colombo Plan Bureau.

As a follow-up on the international meeting on 'The role of education in the social re-integration of former drug users' held in Hong Kong in 1980, the United Nations Educational, Scientific and Cultural Organisation (UNESCO) invited Hong Kong to undertake a pilot project to demonstrate the efficacy of including or reinforcing educational elements in the programmes of rehabilitation and social re-integration of former drug users. The project, organised by SARDA and Caritas and co-ordinated by the narcotics division, comprises two parallel schemes with the same objectives but different methodolo- gies which have not been fully tried out in Hong Kong. Funds for the project are provided by the United Nations Fund for Drug Abuse Control. It is expected that the pilot project will be held in early 1982.

Following the success of the World Health Organisation Inter-Regional Training Courses on Treatment and Rehabilitation of Drug Dependent Persons, the WHO invited Hong Kong to organise a third course in October and November. The course provided 23



physicians from Bangladesh, Burma, China, Egypt, Indonesia, Malaysia, Pakistan, Philip- pines, Singapore and Thailand 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 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 behavious 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 disposal of the dead.

      A regular workforce of about 5 000 and a fleet of 405 vehicles, most of them specialised vehicles, are employed by the Urban Services Department to carry out the cleansing task. Apart from flyovers and high speed roads which are swept once daily by mechanical sweepers, most streets in the urban areas are swept manually on an average of four times a day.

The collection of domestic refuse is done free of charge and the service is provided to all built-up areas. About 3 300 tonnes of refuse are collected every day. There is also a free nightsoil collection service for the few remaining areas of Hong Kong which do not have a water-borne sewage disposal system.

      The second Clean Hong Kong Campaign was officially launched in October 1981. Sponsored by the Government and the Urban Council, the campaign will last until the end of 1982. It emphasises public education, community involvement and enforcement of legislation. During 1981, 58 484 people were fined for litter offences.


     District health inspectors are responsible for the maintenance of satisfactory standards of hygiene through the enforcement of the Public Health and Urban Services Ordinance. They 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.

      In order to protect the health of factory workers and put the factory canteens under proper control, canteens in industrial buildings are now required by law to satisfy certain conditions and health requirements before they can be licensed.

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

The food section of the Urban Services Department continued to monitor the hygienic standard of food produced and sold through regular inspections of establishments and the systematic sampling of their products for chemical and microbiological analysis. A research and development unit has been set up to promote food safety and food quality in accordance with the latest development in food science and toxicological evaluation, to bring the existing food law in line with international standards. The unit also gives advice to local food traders on hygiene in the manufacture of food.

The central licensing section is responsible for dealing with applications for licences - other than hawker licences - issued under the Public Health and Urban Services Ordinance, the Places of Public Entertainment Ordinance and the Dutiable Commodities (Liquor) Regulations.



District and regional pest control units carried out measures to prevent and control rodents, mosquitoes, flies, cockroaches, fleas and other pests. The measures employed include regular inspections of infested areas, public health educational campaign, the destruction of breeding places, the application of pesticides, and law enforcement.

In 1981, the health education section organised a number of publicity campaigns on various health topics and ran food hygiene courses for the catering trade. In addi- tion, lectures were given to school children, Vietnamese refugees and voluntary welfare agencies. Contests and competitions were also held in schools to promote health education.

During the year, 59 student health inspectors and 18 health inspectors completed training courses at the Urban Services Department's Environmental Health Training School in Oi Kwan Road, Wan Chai. For more specialised training, 10 experienced health inspectors were sent abroad to study health education, administration, food technology, noise control and solid wastes management.


In the urban areas of Hong Kong Island and Kowloon, the Urban Council runs 51 public markets with more than 5 400 stalls. The trade is almost exclusively retail sale of fresh foodstuffs such as meat, fish, poultry, vegetables and fruit. Commodities sold, however, have diversified over the years and now include various types of general retail merchandise such as haberdashery and household goods. This diversification has become necessary as increasing numbers of on-street hawkers have been accommodated in new market buildings.

Many existing public markets are accommodated in old buildings with out-of-date facilities and it is the policy of the Urban Council to re-develop these markets into modern multi-purpose market complexes with other facilities such as games halls, rest gardens, libraries and auditoria for the performing arts. During 1981, five new markets at Hollywood Road, Tin Wan and Yue Kwong Road on Hong Kong Island, and Hammer Hill and Ngau Tau Kok in Kowloon were completed. The Ngau Tau Kok market complex is a joint venture with the Hong Kong Housing Authority. The number of new stalls provided during the year came to 1 289.

In the New Territories, the government runs 31 public markets outside of public housing estates with accommodation for more than 2 800 stallholders. Two new markets were completed during the year, giving an additional 483 stalls.


The management and control of hawkers in the urban areas is the responsibility of the Urban Council while the government undertakes this work in the New Territories. There are 38 000 licensed hawkers throughout the territory of whom over 5 000 are situated in off-street bazaars. The number of unlicensed hawkers tends to fluctuate from year to year, but it was estimated that there were about 20 000 unlicensed hawkers in 1981.

The main objectives of the authorities are to reduce on-street hawking by moving hawkers as soon as possible into public markets and to confine on-street hawkers to licensed fixed pitches in clearly defined areas for environmental reasons.

        Under the control of district Urban Services Officers, the General Duties Teams have a manpower of over 2 300. The teams work in close co-operation with the Royal Hong Kong Police Force in containing the problem of illegal hawking and taking necessary enforce- ment action.




     Equipped with mechanised dressing lines, the Kennedy Town Abattoir on Hong Kong Island and the Cheung Sha Wan Abattoir in Kowloon supply the bulk of the population with fresh meat.

During the year, more than 3.2 million animals were slaughtered. The daily average was 8 139 pigs and 497 cattle.

       Slaughtering services are provided in the New Territories by licensed private slaughter- houses at Tai Po and Yuen Long. A third private slaughterhouse, at Kwai Chung, is expected to come into operation at the end of 1982. A new government abattoir planned for Sheung Shui will serve the needs of the population in the new towns in the north-eastern parts of the New Territories.

      Animals slaughtered in abattoirs and in private slaughterhouses are inspected by health inspectors of the Urban Services Department.

Cemeteries and Crematoria

There are five public cemeteries, two public crematoria and seven private cemeteries in the New Territories and five public cemeteries, two public crematoria and 19 private cemeteries in the urban areas.

      The Urban Council operates two funeral depots, one in Hong Kong and one in Kowloon, to provide free services for disposal of the dead. The Hung Hom Public Funeral Hall is also operated by the council to provide inexpensive but dignified funeral facilities to the public.

      It is the policy of both the council and the Government to encourage cremation instead of burial. During the year, 57 per cent of the dead were cremated.

       The new crematorium at Sha Tin is scheduled to be completed by the end of 1983. Together with the existing crematoria at Cape Collinson, Diamond Hill, Kwai Chung and Wo Hop Shek, it will provide an even distribution of cremation facilities throughout Hong Kong, Kowloon and the New Territories.

New Territories Services Department

The responsibilities and functions of the New Territories Services Department are similar in the New Territories to those of the City Services Department in the urban areas of Hong Kong Island and Kowloon.

       Following a comprehensive review of the department's structure, the headquarters of the department was reorganised in 1980 to decentralise its functions, and improve the co-ordination of local services.

There are nine district urban services officers under two regional offices. Each of the regional offices is headed by an assistant director. The North Region comprises the Tuen Mun, Yuen Long, Tai Po and North District. The South Region comprises Tsuen Wan, Kwai Chung, Sha Tin, Sai Kung and Islands.

      The department's activities have been expanded rapidly in the last three years to meet the needs of the increasing population in the New Territories. A total of 511 capital projects are being planned, including markets, pleasure and sports grounds, indoor games halls, swimming pools, beach buildings, public toilets, refuse collection points, vehicle depots, crematoria, and abattoirs. Fifteen such projects were completed during the year.


Housing and Land

     HONG KONG entered the 80s on the crest of a massive building programme which has revolutionised land usage to a degree unprecedented anywhere in the world. Where only recently water flowed, mountains stood and rural paddy fields lay, the makings of entire new communities are now mushrooming. Most are located in the New Territories to the north of urban Kowloon, as virtually all developable land in the urban areas has been exhausted. Self-contained estates in these new towns now form the bulk of public housing production by the Housing Authority, which in the 1980-1 financial year exceeded the 35 000-flat target for the first time. This record output comprised 26 769 rental and 8 674 Home Ownership flats. In addition, 618 rental flats were produced by the Housing Society and the first 1 506 flats were completed under the Private Sector Participation Scheme. The private sector also maintained its high production with 21 500 completions. At a time of mounting inflation and high interest rates, this represented a remarkable achievement by the local building industry.

A study of the breakdown of this production also shows interesting changes in the socio-economic structure of Hong Kong's families and their housing aspirations. Of the 59 000 flats produced in 1980-1, about 30 per cent were purchased for owner-occupation in the private sector; 10 per cent were for renting privately; 15 per cent were purchased by lower middle-income families under government-subsidised schemes; and 45 per cent were occupied by families who meet the criteria for rental public housing.

      While the Housing Authority is primarily concerned with the needs of the lowest income groups, the heavy demand for housing from the high and middle-income groups cannot be ignored when considering future housing policies. This has led to the introduction of a supplementary home ownership programme for middle income housholds, i.e. those whose earnings are above the eligibility limits for government's Home Ownership Scheme but who are unable to afford to purchase flats in the open market. During the year, the question of how the government Home Ownership Scheme could be improved to provide more flats for families within and immediately above the income limits for public housing, also came under review. Revised measures, announced by the Governor in his address at the opening session of the Legislative Council in October, should ensure that prices remain well below those in the open market and within the means of the families for whom the scheme is intended.

Despite the current high output of new flats in both the private and public sectors, it is apparent that Hong Kong's housing problem is far from being solved. At the end of 1981, there were still more than 163 000 families on the waiting list and an estimated 144 000 families living in squatter huts. In order to meet the continuing pressure of demand, it will be necessary to maintain the current high rate of production for many more years. To this end, on-going planning studies are being undertaken to ensure that the limited land



available for development is used to the full advantage. Plans are now well in hand for a new town for 300 000 people at Junk Bay, on the eastern seaboard of the New Territories. It is hoped to have the first public housing estates completed there by 1986, with the remaining development extended through to the mid-90s. Another site to be developed in the near future is Ma On Shan, to the south of Tolo Harbour, which is scheduled to support a self-contained community of 200 000 on the outskirts of Sha Tin New Town. A further potential area for development is north Lantau, where public housing for 200 000 people could be built if the proposed airport and road link go ahead.

      A major step to maximise land usage was taken during 1981 when the government agreed to raise the permitted population densities in public housing estates from 2 500 to 3 000 people per hectare wherever circumstances permit. To meet these revised standards, Housing Department architects designed a block which could take full advantage of the new plot ratio without sacrificing open space between buildings. By building high - to 35 storeys - and using a Y-shape, the new 'Trident' block is able to accommodate 60 per cent more flats than an existing slab block occupying a similar ground area. The design also affords better light and ventilation to the flats and gives tenants of the larger units the additional advantage of being able to partition either two or three bedrooms.

The Year of the Disabled saw the adoption of a special design code for the physically handicapped, which will be incorporated in all future estates. In addition, the Housing Department has an on-going programme of improvements to existing estates to provide easier access for the disabled wherever this is possible.

Efforts to speed up construction are also being made, through the active encouragement of mechanised building methods.

Meanwhile, the effects of the influx of immigration from China up to the end of 1980 are still being felt through the proliferation of squatter huts. Considerably increased action by the Housing Department's squatter control force, resulting in a high level of prosecutions against racketeers, did not stop the spread and it was necessary to provide additional staff, initially, to regain control and, subsequently, to contain the position. Not surprisingly, the greatly increased congestion in squatter areas led to several large fires. The thousands who lost their homes, most of whom were new immigrants, did not qualify for permanent public housing and placed a great strain on scarce temporary housing resources. A major pro- gramme to build additional temporary housing was started during the year with a view to increasing the number of person spaces from the existing 100 000 to 150 000. In the mean- time, resite areas are being established in the New Territories as an expedient. At these sites, formed and serviced by the government, eligible families are permitted to build their own huts under supervision and the areas are managed and controlled by the Housing Authority. In view of the pressure on temporary housing resources, during the year the Housing Authority was again forced to re-examine the eligibility criteria for both permanent and temporary housing. As a result, permanent housing is now offered to squatter families in 1976-surveyed huts, providing the majority of family members have at least 10 years residence in Hong Kong.

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

      When the public housing programme started, the situation appeared desperate indeed. In the five years leading up to 1950, an immense influx of Chinese immigrants had boosted the population from 600 000 to more than two million. The excess of births over deaths was more than 1000 a week, and there was virtually nowhere to live. The housing stock of



about 170 000 units mostly in substandard, pre-war tenements devoid of proper sanitation and facilities - was manifestly inadequate. Division and further sub-division of rooms into cubicles and bed spaces robbed entire floors of light and air. The new arrivals and those who could not bear the desperate overcrowding, nor afford the soaring rents, took to the paddy fields and steep hillsides, where they built flimsy squatter huts which, at that time, housed a quarter of the population.

      The Shek Kip Mei fire provided the catalyst for an ambitious 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. These soon gave way to the six and seven-storey resettlement blocks which are still a feature of the urban scene.

In 1954, the Resettlement Department was formed to clear and rehouse squatters and to manage the new blocks. The Housing Authority was also established to build and manage a better type of public housing for which tenement dwellers, living in crowded conditions and earning low incomes, could apply through a waiting list. A total of 68 estates were built providing both types of housing, and these met with an overwhelming demand that has not diminished over the years.

In 1972, the Governor, Sir Murray MacLehose, announced a 10-year public housing programme aimed at breaking the back of Hong Kong's housing problem. As part of this housing drive, the Resettlement Department and the Housing Authority were amalga- mated in 1973 into a new Housing Authority to oversee the new housing programme. Since then, more than 30 additional estates - all of them self-contained communities - have been built under this programme and today more than two and a quarter million people, or 44 per cent of the population, live in public housing of one sort or another provided or subsidised by the government.

The Housing Authority

The Hong Kong Housing Authority, established under the Housing Ordinance 1973, is a statutory body responsible for co-ordinating all aspects of public housing. The Housing Authority advises the Governor on housing matters; plans and builds public housing estates for categories of people determined with the approval of the Governor; manages public housing estates throughout the territory - including cottage areas, temporary housing areas and transit centres; clears land for development; and controls squatting. In addition, in 1977 the Housing Authority was invited, on behalf of the government, to plan, build and subsequently manage flats provided under the Home Ownership Scheme. Legal powers to carry out these functions are provided by the Housing Ordinance. The Housing Authority also acts as the government's agent in the building and management of flatted factories, which provide small factory units for clearees operating industrial undertakings.

The Housing Authority is chaired by the Secretary for Housing and comprises 13 unofficial members (eight of whom are Urban Councillors), and seven 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 public rental housing estates 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 rental and Home Ownership flats a year is provided through the Government Budget, which contains a four-year expenditure forecast rolled forward annually. The government has emphasised that this rate of production is not a maximum target and that, when economic circumstances permit, expansion can be considered.


The government housing programme aims at producing 180 000 flats, for rent and for sale, over the next five years. Some 28 building contracts were let during 1981, at a cost of $2,752.1 million. At the end of the year, 79 building contracts, including 11 for Home Ownership Scheme projects, were in progress to provide 116 000 flats over the next three years. Four flatted factory projects were also under construction.

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 15 000 families and a further 45 000 flats are scheduled to be built this decade. Plans are also underway to provide a similar limited scheme for middle-income families who do not qualify for the Home Ownership Scheme and who are unable to afford flat prices on the open market.

      In view of the demonstrated and growing aspirations of the lower and lower-middle income groups towards home ownership, the Governor, in May 1981, appointed a working party chaired by the Secretary for Housing to review the existing Home Ownership Scheme and the Private Sector Participation Scheme and to make recommendations on how these schemes may be improved in order to provide more flats for the income classes covered by them.

      As a result of recommendations approved by the Governor-in-Council in September, which will apply to all future phases of the scheme, prices should remain well below market levels and within the means of the families for whom the flats are intended.

      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 with a maximum eligibility level fixed above that for public rental 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 who apply, 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 lower income families who have more need of public rental housing. The benefits of this policy have already been felt through the recovery of some 7 500 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 system. 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 flats produced under two more phases were sold, at prices ranging from $151,000 to $271,000. A further revision to $6,500 was made in 1981 when further flats were sold at prices from $170,000 to $375,000.














From Village

to New Town

Once a village but now fast growing into a new town, Tai Po has flourished through the ages, protected by high hills with mean- dering streams and facing out across the waters of Tolo Harbour. It ranks among the oldest of New Territories settlements dating back some 600 years, to the Yuen Dynasty (1279-1368). The people of the district (predominently surnamed Tang or Man) prospered for centuries as farmers or fishermen. But when the fishing industry declined in recent years, traditional occu- pations gave way to light industrial work. Cottage industries such as plastic flower making, rattan work and belt and watch- strap making started the trend. In the '60s the only major industry to be found was that of tapestry. Then in 1977, an industrial estate was established with government backing on reclaimed land and its industries include a brewery, cannery, electronics factories, Chinese- food makers and liquid petroleum gas cylinder manufacturers. While many of the surrounding villages remain to a large extent intact, vast housing development is going ahead to ease urban constraints as well as to meet the labour demands of increased industry. Tai Po has been listed as one of the territories' seven new towns and by the end of March, 1982, its popula- tion is expected to reach 81 500 people. It will eventually accommodate 236 000.




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Previous page: The gaily decorated roof ridge with mythical figures is a feature of the Tai Po Market railway station - one of the oldest still in use in Hong Kong. Left: Private housing development to cater for the new population; at night the streets of Tai Po bustle with activity; roof-top sit- ting out area at a new housing estate.

The Tai Po Industrial Estate attracts new industry which, because of its complex nature, would meet with difficulty if sited elsewhere.






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   During the summer holidays these young boys joined many others in an intense game of Chinese billiards organised by the Tai Po District Board.

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   Bicycles are used more extensively in the New Territories than anywhere else in Hong Kong, and bicycle shops abound in Tai Po.






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The first settlers in Tai Po were the Tangs during the Yuen Dynasty. Here a Tang descendent adjusts a painting of his eighth generation grandfather.








Top: Ancestrial tablets in the Tang village of Tai Po Tau depict the family lineage. Above:

Young Tangs explore a 100-year-old rice winnowing machine.


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"At a Tai Po factory the finishing touches are made to a royal carpet, Hong Kong's wedding gift to the Prince and Princess of Wales.






      All phases have been heavily over-subscribed and it has proved necessary to hold ballots to determine successful applicants. Separate draws are held for the two categories of applicant, to provide an equal share of flats between the respective groups. The two lists are then combined into an overall priority list and each applicant is interviewed to verify eligibility. Eligible applicants can 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 is automatically disqualified and a small number of applicants have been 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 public housing projects. The basic specifications and unit prices for the flats are stipulated by the government and the developers tender for the land reserved for each project. The processing of applications and the screening of applicants are 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 those produced in the third were sold in late 1981. The Middle Income Housing Programme 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 public housing estates occupy most of the developable land on Hong Kong Island and in Kowloon, where population densities are among the highest in the world. However, every effort is being made to extract the optimum development potential from the less intensively developed sites, some of which are occupied by squatter huts and resettlement cottages built in the 1950s.

On Hong Kong Island, a former cottage area in the eastern district of Chai Wan is being developed to provide 1 991 flats at Hing Man Estate, while at Aberdeen homes for 2 270 families are under construction in a public housing estate on Ap Lei Chau, overlooking the fishing harbour.

In east Kowloon, a major public housing development at Shun Lee Tsuen progressed with the completion of 2 100 flats at Shun On Estate, which has a further 3 100 units under construction. Several rental and Home Ownership projects are also being undertaken in Ngau Tau Kok and Hammer Hill which will provide 7 470 flats.

Additional public housing development in urban areas has been made possible following the handover of two military bases. At the former RAF Kai Tak, homes for more than 1 000 families have been built and a further 3 850 flats are due for completion in the second phase, while the former army camp in Sham Shui Po has made way for 3 430 rental and Home Ownership flats at Lai Kok Estate. All remaining Phase I and II Home Ownership flats in urban areas were handed over to owners during the year.

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. The initial operation was the in-situ conversion of Block 25 at Lower Wong Tai Sin Estate in 1969 which was followed by the conversion of the Mark I and II blocks at Shek Kip Mei Estate. Since then, redevelopment work has progressed at a steady rate. So far, 22 Mark I and II blocks have been demolished and 25 blocks converted, resulting in the rehousing of more than a quarter of a million tenants - equivalent to more than 40 per cent of the population in Mark I and II estates in the early 70s. Under the current programme, a further 61 Mark I and II blocks containing



more than 105 000 people will be redeveloped over the next five years and, barring unforeseen problems, all remaining Mark I and II estates will be totally redeveloped within the next 15 years. Meanwhile, a substantial number of new flats are set aside each year to rehouse those living in overcrowded conditions in the remaining Mark I and II blocks, and, pending redevelopment, the vacated flats in these blocks are allocated to those eligible for temporary housing.

One of the biggest projects under the programme - and at a cost of $267 million, the biggest single contract ever awarded by the Housing Authority is the building of a complex at Lok Fu which, in addition to producing 1 050 flats, will provide substantial commercial facilities to serve the central Kowloon area.

New Towns and Rural Townships

With suitable land virtually exhausted in the urban areas, housing needs for the 80s and beyond are being met by a huge development programme in the New Territories, where virgin land enables individual estates to be built as complete communities with a full range of social, educational and recreational facilities.

In Tsuen Wan soon to be linked to the urban areas by the Mass Transit Railway system the final two phases of Shek Wai Kok Estate are under construction to provide 3 340 flats, while neighbouring Tsing Yi Island will soon welcome a further 720 families at Cheung Hong Estate.

     As part of the continuing programme to provide community facilities to serve this growing population, an urban clinic, a community centre and market were built. Other facilities under construction include four secondary schools and three primary schools, two community centres, two markets and a library, two multi-storey car parks and a transport interchange and government offices.

Some 170 hectares of land were formed during the year. Other major engineering works completed included the first stage of the Tsuen Wan bypass and grade-separated intersec- tions at Castle Peak Road and Texaco Road and at Tai Wo Tsuen. Work started on land formation and reclamation for various uses; on a new flyover over Castle Peak Road; bridge works for the second stage of Tsuen Wan bypass; a new ferry pier; and various other roads and services.

Further to the west, at Tuen Mun, more than 5 000 flats were completed at the sister estates of On Ting and Yau Oi, with work progressing on another 5 900 flats in the remaining blocks. The biggest public housing project in the new town Butterfly Estate has 9 800 flats under various stages of construction and work has also started on 2600 flats at Shan King Estate. A major Home Ownership project is also under construction.

Tuen Mun's population is about 130 000, or about 24 per cent of the projected population of 547 000. New factories have been built for light industry to provide employment opportunities for this growing population and appropriate community facilities have been or are being built. These include primary and secondary schools, a polytechnic, a divisional police station, community halls, a sports ground and other open space, markets and water supply service reservoirs. At the end of the year the government was negotiating with a private developer to operate a light rail public transport system within the town and its links with Yuen Long. Work continued on the construction of a major new power station and a cement factory to the west of the town.

However, the most dramatic new town development now taking place is at Sha Tin, where contracts have been let to produce 28 000 flats. They will be located in seven estates -



Sun Tin Wai, San Tin, Tin Sam, Mei Lam, Pok Hang, Sha Kok and Sha Tin Tau. Schools, clinics, community halls, district and local open space and commercial complexes are being built concurrently with public and private housing projects. Work has also started on a major sports training facility, which is being funded by the government and the Royal Hong Kong Jockey Club.

The population of Sha Tin is now about 157 000 and the new town is being designed to accommodate some 756 000 people. Some 104 hectares of new land have been made available for this expansion programme of public and private housing, community facilities, industry and open space. Major engineering works completed include the formation and servicing of land in various planning areas, reclamation at the mouth of the Shing Mun River, fresh and salt water service reservoirs, a new railway station forming part of the modernisation of the Kowloon-Canton Railway with an associated podium for buses, and elevated roads and footbridges.

At Tai Po, where a new town for 236 000 is being built, the first public housing estate for 32 000 people was completed on 15 hectares of reclaimed land. Construction also started on a second estate for 40 000 people. Community facilities to serve the new population were built and the sewage treatment works is being extended in stages to handle effluent generated by population growth and industrial development.

      Work is well under way for a new town at Fanling/Shek Wu Hui for about 180 000 people. Construction of the first public housing estate for 30 000 is in hand and work has started on a second estate for 22 000 people.

East of Kowloon and separated from it by a major ridgeline is Junk Bay where a new town is being planned for about 300 000 people. Planning, engineering and sector studies were commissioned and site investigation and detailed design work started for initial development areas and the primary access road.

The population of Yuen Long is now about 50 000 of its projected population of 135 000 and the first stage of the first public housing estate was completed. Detailed planning was carried out on a 58-hectare site at the northern boundary of the town which will provide accommodation for 42 000 people."

      In the rural townships, six hectares were formed at Sai Kung and construction started on further site formation, seawall, reclamation and a pier, fire station, market and bazaars.

In four smaller townships on outlying islands with a total projected population of 60 000 people - a public housing estate for 1 300 was completed at Tai O while land for other estates was being formed at Mui Wo and Cheung Chau to achieve a balance of development and improved environment.


The Housing Authority possesses a stock of 440 900 domestic flats, of widely varying sizes, amenities and rent levels. During the year, 27 900 flats were allocated to 130 600 eligible people in the following categories: Waiting list applicants; development clearance cases; tenants of early housing estates under redevelopment; tenants of early housing estates under external transfer to create primary housing; 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 tenements; residents affected by the reuse of temporary housing areas; and junior civil servants and pensioners. Some 4 600 flats were allocated to families rendered homeless by development clearance, while 12 200 were allocated to waiting list applicants, of which 300 were allocated to the elderly.



Any family of three people, or any three unrelated elderly persons, or a married couple who are Hong Kong residents may register on the waiting list for public housing. Duplicated applications are cancelled at the time of application. The waiting list is long: since 1967, 481 800 families have applied, of whom 88 700 have been rehoused with another 229 500 found to be ineligible for public housing. Applications are considered according to the sequence of registration and the district of choice, but accommodation is only offered to those found eligible, on investigation, in respect of their living space and conditions and whose family income is within a scale related to family size. The income limit is reviewed periodically and is adjusted regularly in line with inflation. Applicants whose applications are cancelled on grounds of income or space may have their claims reviewed 12 months after the cancellation and within five years if there are genuine changes in their family circumstances which render their applications eligible at that time.


Close contact is maintained with tenants through frequent visits by estate staff. In addition, regular meetings are held with more than 770 mutual aid committees and other residents' associations established for such purposes as the Clean Hong Kong 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 per 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 who do not yet qualify for permanent housing. Families wishing to move to a different flat can register with the Mutual Exchange Bureau or, if they have valid 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 13 750 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-year agreement. Rents are raised to near-market levels on renewal of an agreement, but, where increases are substantial, it is the authority's policy to apply them in stages over two or three years. The authority also manages more than 5 000 factory tenancies in 34 purpose-built blocks, and 4 512 cottages in various districts.

     About 170 premises on estates were let 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 $60 million was spent on contract cleansing and about $200 million was spent on maintenance and improvements - mainly painting contracts, planned preventive maintenance of buildings and electrical systems, and estate improvements such as recrea- tion 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 year, 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 the occupants build their own internal and external walls. Facilities provided include concrete hardstand- ing; home water and electricity supply; central lavatory facilities usually with water-borne sanitation; paved and grassed areas; children's play areas; round-the-clock security guards; and comprehensive management services. Family units are let at a monthly fee of around $7 per square metre.

      A total of 36 000 people, including 25 000 victims of natural disasters, moved into temporary housing during the year. This brought to 120 000 the number of people living in the 44 temporary housing areas that are managed by the authority.

Transit Centres

The Housing Authority also provides short-term accommodation in transit centres for people made homeless by fires or other natural disasters. The total capacity of these transit centres is about 15 000 people.

Squatter Control and Clearance

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 present squatter population is estimated to be more than half a million. 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. The Housing Authority is now responsible for squatter control throughout the territory.

Squatters who have lived in Hong Kong for more than 10 years and 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 1981 clearance programme yielded 487 hectares of land for development with the removal of about 53 000 people from squatter-type and permanent structures. Of these, 27 400 were allocated permanent housing. The remainder were accommodated in either primary housing in the urban area or temporary housing in the new towns.

      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, 35 000 structures or extensions were demolished for these reasons.

      The large scale of immigration in 1980 has 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 are built and occupied adds to the problem of squatter control, particularly outside areas which are planned for development.



Town Planning The main aim of town planning in Hong Kong is to provide a good living and working environment for its present and future population. To do this, it is necessary to ensure that the limited land resources are properly planned to meet the competing demands of housing, commerce, industry, transportation, recreation, education, medical and health and other community facilities. This applies to both new development areas, such as Tuen Mun and Sha Tin, and the older congested urban districts, such as Yau Ma Tei and Western, where the need for improvement is even more apparent.

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 seven unofficial members, and the Land Development Policy Committee, chaired by the Secretary for Lands and Works and comprising seven official members and one unofficial member. The Town Planning Office of the Public Works Department services these two bodies and their sub-committees.

Town plans prepared by the Town Planning Office can be broadly classified into two groups statutory plans and non-statutory plans.

Statutory plans are prepared under the provisions of the Town Planning Ordinance for existing and potential urban areas and the Town Planning Office is responsible for their preparation and revision. These plans - outline zoning plans - show areas set aside or zoned for residential, commercial, industrial and other purposes. Once a statutory plan is gazetted for public inspection, it has statutory effect. Under the Buildings Ordinance, the Building Authority may refuse to give his approval to any plans of building works which would contravene any approved or draft plan prepared under the Town Planning Ordinance.

During the year, the board published 14 draft statutory plans including draft outline zoning plans for Central District, Sai Ying Pun and Sheung Wan, North Point, Cheung Sha Wan and Ma Tau Kok. A total of 130 objections to the published plans were 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 39 planning areas in the main urban areas were covered by gazetted draft or approved statutory plans. In the New Territories, there were six draft statutory plans covering Tsuen Wan, Kwai Chung, Tsing Yi, Sha Tin, Tai Po and South Lantau coast; draft plans for Tuen Mun and Ma Wan were under preparation. The Town Planning Ordinance also makes provision for a Schedule of Notes to be attached to each statutory plan and this schedule shows the uses which are always permitted in a particular zone and the other uses for which the Town Planning Board's permission must be sought. The provision for application for planning permission under the ordinance allows greater flexibility in land use planning and better control of development to meet changing needs. During the year, the board considered 106 applica- tions as compared to 111 applications in the previous year. Where the board refuses to grant permission, the applicant may apply for a review of the board's decision. In 1981, there were 18 applications for review, as compared with 38 in 1980.

Non-statutory plans, which are used administratively within government to guide and control development, consist of the Hong Kong outline plan and other departmental plans. The Hong Kong outline plan lays down general planning concepts, defines standards and locational factors for the provision of government and other community facilities and provides a framework for the preparation of statutory plans and departmental plans.

      Departmental plans comprise planning guides, outline development plans and layout plans. They are prepared in accordance with the general guidelines and standards in the Hong Kong outline plan approved by the Land Development Policy Committee and, where



applicable, within the framework of the statutory outline zoning plans prepared by the Town Planning Board.

Planning guides are prepared for large areas within the New Territories, such as Lantau Island and the Sai Kung Peninsula, where there is a need to lay down planning guidelines for development. These planning guides indicate broad areas reserved for water catchments, country parks, conservation, agriculture, urban development and other major land uses.

The work of the Town Planning Office can generally be classified into two main streams, outline planning and district planning. The first aspect of work is undertaken largely by the Outline Planning Division, whose main duties are to carry out surveys and studies including the commissioning and monitoring of consultancy studies and to provide background data inputs for various planning purposes. During the year, the more important planning projects undertaken included the commissioning of a consultancy study on harbour reclamations and urban development to assess whether there is any further development potential in the existing urban areas; a study on the existing and proposed use of land under flyovers and pedestrian footbridges; forecasts of population distribution throughout the territory; a forecast of land production undertaken for the Special Committee on Land Supply; a forecast of the demand for and supply of industrial land; and a study to examine lift and loading/unloading requirements in industrial buildings.

      The district planning function is performed by three district planning divisions which service the Town Planning Board in the preparation and revision of all statutory outline zoning plans, including those for the New Territories, and they are responsible for all departmental plans outside the new towns. They also scrutinise development submissions, reserve sites for various public purposes, undertake special planning studies and provide planning advice to other government departments, advisory bodies, consultants and the public.

In the main urban areas, major layout plans prepared during the year included those for the Red Hill and Tai Tam area, the former Murray Barracks, the proposed commercial site west of Connaught Centre, Sai Wan Ho reclamation and Quarry Bay Reclamation. Other major studies included Kornhill development, Hung Hom Whampoa Dockyard redevel- opment, and Wan Chai reclamation development. Feasibility studies were also carried out and planning briefs were produced for sites earmarked for various forms of public housing schemes to ensure the meeting of government's public housing targets. During the year, planning briefs completed included the Wan Tsui redevelopment scheme and the Sau Mau Ping environmental improvement scheme.

In the development of the New Territories the role of the Town Planning Office is basically two-fold. At the regional level, it is responsible for the forward planning of large areas in the New Territories through the preparation of planning guides and the provision of planning inputs to inter-departmental regional development studies. The North Lantau development study was one major study undertaken during the year. In parallel with these regional studies, the statutory development control of the new towns is exercised through the draft statutory outline zoning plans prepared for them. At the local level, the office also undertakes detailed planning for smaller rural districts, outside the new towns, which are under various forms of development pressure. Plans of this nature prepared during the year included the Yuen Long Industrial Estate layout, Ngau Tam Mei (North) layout, Fairview Park access road layout and the Tai Shang Wai and Mai Po plan. Work had also started on the systematic preparation of layouts for villages in the New Territories, outside the new towns, in order to co-ordinate development in these areas.




     Local planning and development works in the new towns are under the control of the New Territories Development Department. Town planners are seconded from the Town Planning Office to the various new town development offices where they work with engineers, architects and other members of multi-disciplinary teams to prepare detailed departmental plans within the framework of the Hong Kong outline plan and the statutory outline zoning plans.

Private Building

    1981 was another busy year for private building development in spite of bank interest rates remaining at record high levels. The high costs put the small speculative developers at greater disadvantage and large scale development projects gained in popularity. Driven by the demand and the rent controls on residential accommodation, developers tended to concentrate more on commercial buildings, as shown by the increase of 53 per cent over the 1980 figure in terms of proposed floor areas submitted for approval.

     For private building development as a whole, the number of proposals submitted to the Buildings Ordinance Office of the Public Works Department for approval during the year was 1 030 compared with 949 in 1980. Occupation permits issued for completed buildings in 1981 numbered 603, providing a total usable floor area of 3 186 514 square metres, about a 22 per cent increase over the previous year. The total construction cost, excluding the value of the land, amounted to $7,248 million, representing an increase of 55 per cent.

     The completion of the Hopewell Centre, the Sun Hung Kei Centre and the United Centre on Hong Kong Island, together with four hotels in the commercial development of the Tsim Sha Tsui East area, most of them with glass curtain wall facades, has further enhanced the view of Victoria Harbour. In the heart of Central District, the familiar shapes of the Hong Kong Club and the Hongkong and Shanghai Bank disappeared, to be replaced in due course by modern office buildings.

Activity on residential developments remained fairly constant. Sizeable projects under construction included the Provident Centre at Wharf Road, which will provide 3 500 domestic units when completed; two marina residential projects in Shum Wan and Sai Kung; a 47-tower block project of domestic flats with commercial complex in Sha Tin; Mayfair Garden on Tsing Yi Island and a 5 000-house project known as Fairview Park near Mai Po.

Industrial building consisted notably of shipyards under construction and completed on Tsing Yi Island. One of these has already received orders to build oil rigs for exploration in the South China Sea. There was also the Tai Po Industrial Estate, at various stages of realisation, the Castle Peak power station, and the cement plants at Castle Peak and Hung Hom.

The construction of the island line of the Mass Transit Railway gave rise to more than a dozen property developments associated with the Mass Transit Railway Corporation. The largest and perhaps most interesting was opposite Taikoo Shing, where a rocky hill over 100 metres high will be removed to provide room for a population of 30 000 with infrastructure and facilities sufficient to serve a satellite town.

     To meet present-day requirements, a number of provisions in the Buildings Ordinance and Building Regulations were changed during the year. Among the more important amendments enacted were those designed to improve control over site formation works and to require a geotechnical assessment at building planning stage. Project engineers and architects have become more aware of the role which geotechnical engineering plays in contributing to the safety of building development.



      Despite a chronic and acute shortage of professional staff the Buildings Ordinance Office reacted well to changing demand and other circumstances and the most serious shortfall in performance was in the area of unauthorised building works. Proposals to recruit experienced technical staff to undertake this task were made and the build-up of a new control organisation started at the end of the year. During the year, 1 287 buildings were inspected for unauthorised building works, resulting in 597 statutory notices being served, compared with 1 405 buildings inspected and 544 notices served in 1980.

      Experience gained in recent years made it clear that there was a growing need for staff to specialise, for example, in the investigation of structural defects in post-war reinforced concrete buildings, or in processing licensed premises and oil storage installations. To deal with this need, new units were created within the Buildings Ordinance Office. As regards oil storage in particular, almost all the existing oil tank farms are now up to the standard prescribed by regulations, thus reducing the danger of environmental pollution. Work was in hand during the year of five new oil installations.

Management of Buildings in Multiple Ownership

During 1981, 243 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 1981, there were 1 901 corporations.

The City District Offices and the New Territories District Offices offer assistance and advice to owners and tenants, either on incorporation or on the formation of mutual aid committees. Mutual aid committees have similar aims to owners' corporations, but they are not statutory incorporated bodies or legal entities in themselves. Membership is open to all residents of a particular building. By the end of 1981, 4 648 mutual aid committees were registered.

      A working group, set up under the auspices of the Kwun Tong District Management Committee in 1980, continued its study on the effectiveness of the existing legislation governing conditions in multi-storey buildings. The working group's report and recom- mendations have been submitted to government for consideration.

Rent Control of Pre-war Premises

     Legislation controlling rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after World War II and was later embodied in 1947 in the Landlord and Tenant Ordinance - since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance. This legislation applies to both domestic and business premises and restricts rents by reference to pre-war levels (standard rent), while excluding from control new or substantially reconstructed buildings.

Increases in rents are permitted periodically, the latest being in May 1981, when the legislation was amended to provide for permitted rents to be eight times the standard rent in the case of domestic premises and 18 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.

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 compensa- tion to the protected tenants. The Rating and Valuation Department provides a mediatory and advisory service to deal with many of the practical problems arising from these controls, particularly where exclusion proceedings are started 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 Scheme, under which rent officers attend city district offices in the urban areas and 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 continuously in force in one form or another since 1962 (apart from between 1966 and 1970) and is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinance.

      An overall re-examination of the legislation was conducted by a committee of review during 1980. Its report, published in May 1981, recommended that as soon as circum- stances permit, rent control should be phased out. This recommendation was endorsed in principle by the government, although this was recognised as a long term objective.

      To implement initially the report's recommendations, a series of legislative amendments were enacted during the year. As a result, Part II of the ordinance, which should have expired after December 18, 1981, was extended by a further two years. The legislation, which mainly provides security of tenure and controls of rent increases, now covers the majority of tenancies and sub-tenancies in post-war domestic premises in the private sector. It does not, however, apply to tenancies in buildings first certified for occupation after June 18, 1981, nor, with effect from December 19, 1981 to tenancies in premises having a rateable value of $80,000 or more. Provision is also made to exclude from these controls from December 19, 1982 tenancies in premises having a rateable value of $60,000 or above. Guidelines are now provided for determining applications for possession in cases where a landlord intends to rebuild.

      Landlord and tenants are free to agree an increase in rent but such agreements must be endorsed by the Commissioner of Rating and Valuation. Where an increase is not agreed, the landlord may apply to the commissioner for his certificate of what increase may be made to the current rent. The amount of the increase is arrived at by taking half the difference between the fair market rent and the current rent. This is further subject to a maximum increase of 30 per cent of the current rent and increases are permitted only once every two years. Under the amended legislation, increases in rent for sub-tenancies are now dealt with in the same way as tenancies.

Other Measures Affecting Landlords and Tenants

For domestic tenancies outside the controls, legislation was introduced towards the end of the year to provide a reasonable degree of security of tenure for a sitting tenant who wishes to renew his tenancy. Under this provision, a new tenancy will be granted unless the landlord can satisfy the Lands Tribunal that he requires the premises for his own occupation, or that he intends to re-build the premises, or on one of the other grounds specified in the legislation. The parties are free to agree on the rent for the new tenancy but failing agreement they can apply to the Lands Tribunal for a determination. This legislation is intended to establish a permanent framework regulating the relationships of landlords and tenants for nearly all domestic tenancies not otherwise subject to controls.




The formulation of overall targets for the production and sale of land is the responsibility of the Special Committee on Land Supply. As an extension of the work of this committee, a land disposal sub-committee formulates and monitors a land sales programme. Specific sites are identified and collated in the Crown Lands and Survey Office of the Public Works Department and by the City and New Territories Administration.


     Land administration on Hong Kong Island and in Kowloon and New Kowloon is the responsibility of the Director of Public Works, who also is the Building Authority and the chairman of the Town Planning Board. The Land and Valuation branches of the Crown Lands and Survey Office of the Public Works Department are responsible for carrying out land sales, land and property valuations, land acquisition, estate management and clearance services. The staff of professional officers also records and analyses all sales and lettings in the territory's urban areas, to monitor market trends and factors affecting the value of land and buildings.

      The Secretary for the City and New Territories Administration is responsible for land administration in the New Territories. His supporting staff comprises professional officers seconded from the Crown Lands and Survey Office, assisted by his own departmental staff.


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 that 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 land use zoning and 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), which could not be appropri- ately housed in multi-storey buildings. Such sales are initiated only in response to formal applications and in certain circumstances may be concluded by private treaty, subject to the approval of the Governor-in-Council.

The programme of redevelopment of sites occupied by government staff quarters continued with sites being disposed of by way of joint venture with the private sector. A total of 328 government quarters, together with about 240 flats for the private sector, will be provided on sites sold during 1981. Nine sites were also sold to meet the heavy demand of high class housing.



Sales of industrial land, much of it at Kowloon Bay, totalled some 78 000 square metres, a number of the sites being sold for godown purposes or with the requirement for small factory units or heavy floor loading capabilities and high ceiling clearances.

Low-rent housing for middle income purchasers is provided by the Hong Kong Housing Society under the Urban Improvement Scheme or by the Housing Authority or the private sector in joint ventures under the Home Ownership Scheme. Land for such purposes is granted to the society or authority at full market value, or in joint venture cases it is offered for premium tender to the private sector. In all such cases government reserves the right to nominate purchasers of individual flats provided under the scheme.

      It is also government policy, in certain areas, to modify old lease conditions which 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 where a lot held on an expiring non-renewable 75 year 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, the Crown Leases Ordinance was enacted in 1973 to impose a new Crown rent related to the rateable value of the property situated on the lot.

Important Transactions

Important land transaction during 1981 included the sales by tender of four large high class residential sites, totalling some 250 000 square metres, at Tat Chee Avenue and Tai Woh Ping in Kowloon and at Tai Tam Reservoir Road and Red Hill on Hong Kong Island. These sales will produce approximately 1900 high class flats by about 1983-4, and a further 160 government quarters.

      During the year the grant was completed of the site of the former Macau Ferry Terminal to a private developer for the development of a large modern terminal facility to handle the increased number of passengers travelling between Hong Kong and Macau. The developer was also granted an adjoining site for the development of a commercial building incorporating vehicular and pedestrian access arrangements connected with the terminal. The new terminal is expected to be completed mid-1984.

The largest land transaction in the New Territories involved the disposal by cash tender in April of a 53 030 square-metre site in Tuen Mun for a Home Ownership Scheme project. The price paid by the developer, who will build up to 2 300 flats, was $303.3 million.

In early 1981, at an auction which realised a total of more than $438 million, a Sha Tin site for hotel development sold for $241 million. The site measured 5 000 square metres. At the same auction, government disposed of, for $169 million, the first Tai Po new town centre site to be offered. The site covered 5 012 square metres. A similar site was withdrawn in August when there were no bids beyond $97 million.

In July a site of 7 286 square metres in Sha Tin for industrial godown development, including a vehicle showroom and service centre, was sold for $110 million.

Government will obtain 220 quarters for its staff as a result of the sale by cash tender of two Sha Tin sites in July and August. One, measuring 50 050 square metres, is close to the Lion Rock Tunnel and the other, measuring 7 070 square metres, overlooks the racecourse. Under the conditions the purchasers are required to include flats for government staff in the developments.



Several sites were disposed of to holders of land exchange entitlements (Letters 'A' and 'B'). They included a site measuring 8 116 square metres in Sha Tin for non-industrial development and a site measuring 7 508 square metres in Tai Po for commercial/residential development. The number of sites offered to land exchange entitlement holders was 36, of which 13 were disposed of. The majority were in Sha Tin.

The total amount of land disposed of in the New Territories during 1981 was 45.777 hectares. This compares with a total of 31.527 hectares disposed of the previous year.

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. During a phased programme, the Registrar General's Department will be taking over the responsibility for land registration in the New Territories. The first registry to be taken over under this arrangement will be at Tsuen Wan.

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 apportionment of Crown rents and premia; the recovery of outstanding Crown rents; the enforcement of lease conditions; and the provision of conveyancing services for the Housing Authority in connection with the sale of flats built under the Home Ownership Scheme. It gives legal and other advice to the government on matters relating to land and government land transactions.

      A report on a comprehensive survey of the existing system of registering, keeping and retrieving Land Office records, recommended that all memorials, Crown leases and conditions of sale, grant and other documents should be kept in microfilm form. To facilitate the implementation of the microfilming system, the Land Registration Ordinance was amended by the Land Registration (Amendment) Ordinance 1980, which came into operation in June 1981. The Land Registration Regulations 1981, providing for the microfilming of Land Office records and for other registration procedures of the Land Office; and the Land Registration Fees (Amendment) Regulations 1981, which revised the fees payable in respect of the registration of instruments in the Land Office and other fees, also came into operation in June.

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, prioity runs from 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, 189 745 instruments were registered in the Land Office, compared with 193 092 in 1980. More detailed statistics and comparisons with previous years are in Appendix 29. At the end of the year, the card index of property owners contained the names



of 407 421 people, an increase of 24 530 over the previous year. Some own several properties throughout the territory, but most are owners or part-owners of small, indi- vidual flats.

Urban Renewal and Environmental Improvement

The purchase continued of privately-owned property zoned for open space and govern- ment, institutional and community uses in the areas covered by the town plans for Western, Wan Chai and Yau Ma Tei. During the year 10 properties were acquired at a cost of $10 million and 28 properties were cleared and demolished. All eligible tenants were offered rehousing and given ex-gratia allowance upon clearance. The cleared sites, in most cases, will be developed and managed by the Urban Council as open space and park lands for the benefit of those living in crowded areas.

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 was completed. Accumulated revenue derived from the auctioned sites within the scheme was $625.5 million.

To assist the Hong Kong Housing Society's Urban Improvement Scheme, the govern- ment resumed 10 properties in Wun Sha Street, Causeway Bay and seven properties in Ap Lei Chau Main Street, Ap Lei Chau. The Housing Society plans to build at each site a high-rise domestic block over a podium with ground floor shops and first floor community facilities. Negotiations with former owners on the amount of compensation for their resumed properties are progressing. All eligible former occupiers affected by the resump- tion are being rehoused and given ex-gratia compensation to assist them in resettling in their new homes.

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 development.

The compulsory surrender of marine rights, usually required for reclamation projects or the grant of pier leases, is effected under the Public Reclamation and Works Ordinance or the Foreshores and Sea Bed Ordinance as appropriate. These ordinances provide for the lodging of objections to a scheme and for the payment of compensation where private rights are affected.

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

      During 1981, more than $16 million was paid in compensation for land and buildings acquired, either under compulsory powers or by agreement, in the urban areas of Hong Kong Island and Kowloon.




The Survey Branch of the Crown Lands and Survey Office provides a network of trigonometrical stations and benchmarks upon which all land and engineering surveys are based, and for 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, geotechnical control 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 environ- mental 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, converting and adjusting minor control to the new system continued and the exercise was virtually completed in 1981.

Cartographic projects undertaken by the branch during 1981 included continuation of the revision and reprinting of the 1:20 000, 1:50 000 and 1:100 000 map series; Hong Kong Streets and Places Volumes I and II; the Hong Kong Official Guide Map (fifth edition) and the Countryside series of sheets one to four. Sheet five of the Countryside series maps, New Territories northeast, was published during the year. The production of the 1:5 000 series for the New Territories continued with 20 of the 160 sheets having been completed. The cyclic revision of 1:2 500 and 1:5 000 urban and the street plan series was maintained according to the programme.

The metrication of the 1:1000 basic mapping series continued slowly. Extra staff approved for this task will improve the production rate once they are recruited and trained. Specific-purpose maps illustrating country park facilities, district administration bound- aries and Tolo Channel and Junk Bay water control zones were also produced.

Sales of maps, plans and aerial photographs to the public in the year surpassed $1 million for the first time. The sum is made up about equally from the sale of coloured maps to the general public and from the sale of large scale plans and aerial photographs to engineers and developers.

The Public Works Department's Survey Training School provides training for the certificate course in land surveying (a course organised with Hong Kong Polytechnic), basic cartographic course and other elementary surveying courses. During the year, 258 government officers attended various courses at the school.


Social Welfare



A NEW System, aimed at full implementation by 1984-5, has been devised for the administration of social welfare subventions - the result of recommendations made during 1981 by a working group set-up to redefine the government's role in the provision of social welfare services.

      Under the new system, services will be ranked into two categories Priorities I and II. Services in Priority I will receive a subvention designed to meet the full cost of a specified standard of service. Income raised privately by voluntary agencies, or received from the Community Chest (to which some 75 welfare bodies are affiliated), will not be taken into account in the calculation of government subvention and will be available as a resource to provide higher standards or to develop new services. Those ranked as Priority II will not normally receive full subvention support and agencies will be expected to meet some of their operational costs from their own resources.

Another change in the subsidy arrangements arose from proposals in the 1981 White Paper on Primary School Education and Pre-primary Services. The present system of direct subvention to day care centres for children aged between two and six years will be replaced by a general scheme of financial assistance to low-income families who have children attending child care centres or kindergartens. The fee assistance scheme will be adminis- tered by the Social Welfare Department.

      Among other social welfare highlights during the year were major improvements to the level of benefits payable under the Public Assistance Scheme. The maximum amount of rent allowance payable under the scheme was raised to twice the level of the highest public housing rent for a single person and one and a half times the equivalent rent for households with more than one member. The real value of Public Assistance and Special Needs Allowances was also increased by 25 per cent to reflect the general improvement in the standard of living.

     Also announced in 1981 was a new type of social security benefit a death grant of $3,000 which is intended to provide immediate relief to the dependant survivors under certain conditions. It is non-means tested and payable to those eligible unless a similar or more generous benefit is also payable under the Employment Ordinance, or other statutory and administrative scheme.

In 1981 direct welfare services continued to expand in accordance with policy objectives; in particular those laid down in the 1977 White Paper on Rehabilitation and the 1979 White Paper on Social Welfare Services in the 1980's. Total estimated expenditure on social welfare in 1981-2 financial year is $885.31 million an increase of $279.45 million in recurrent expenditure and $310,000 in capital expenditure over 1980-1. Some $200.44 million in capital and recurrent subventions from the Lotteries Fund are estimated for the 1981-2 financial year. The Community Chest also organises and co-ordinates local



fund-raising activities for its member agencies. The Community Chest raised $21.79 million in its 13th annual fund-raising campaign in 1980-1, compared with $19 million in 1979-80. Responsibility for carrying out government policy on social security and social welfare rests with the Director of Social Welfare, who heads the Social Welfare Department. The department is organised into four regions which are divided into 11 districts. The district social welfare officers are the main contacts with the public and voluntary welfare organisations and are responsible for co-ordinating the provision of all social welfare services in their district. The department includes development and social security branches which are responsible for the central planning and development of new policy in social welfare and social security, and a subventions branch which deals with the central administration of subventions to voluntary organisations and evaluation of services provided by them.

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 and which is chaired by the Director of Social Welfare. The Rehabilitation Development Co-ordinating Committee advises on the policy and principles governing the development of rehabilitation services and is chaired by an unofficial member.

In the day-to-day administration, planning and development of services, the Social Welfare Department works closely with voluntary agencies which play a major role in the provision of many welfare services. The majority of voluntary agencies are affiliated to the Hong Kong Council of Social Service and are involved, together with the council and Social Welfare Department, in the annual review of the Five-Year Plan for Social Welfare Development.

      The shortage of trained social workers continues to be reflected in recruitment problems to certain ranks in the Social Welfare Department and voluntary agencies. This problem has been studied in-depth by a working party set up by the Secretary for Social Services, and it will make recommendations on the ways and means to meet the demand.

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 which 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 prescribed level. To be eligible for public assistance, applicants must have resided in Hong Kong for at least one year. Able-bodied unemployed applicants aged between 15 and 59 are required to register with the Local Employment Services of the Labour Department for employment. The residen- tial criterion can be waived at the discretion of the Director of Social Welfare for those who are medically unfit for work, those who have to look after young dependent relatives, or those in extreme financial hardship. Except for orphans or unrelated people, applicants aged 15 to 17 must apply with their families and not independently.

The scales of assistance are regularly reviewed to maintain their purchasing power and an increase of 25 per cent was made, in July, to lift the standard of living of public assistance recipients. The monthly basic scale rate of assistance is $350 for a single person; $250 for each of the first three eligible members of a family; $215 for each of the succeeding three; and $165 each eligible member thereafter. Old age supplement, disability supplement and long-term supplement are payable as additions to the basic scale rates. An old age



     supplement of $175 a month is given to public assistance recipients aged 60 and above, provided that they are not already receiving a special needs allowance. A disability supplement, also of $175 a month, is payable to those public assistance recipients who have been certified as partially disabled, with a 50 per cent or more loss of earning capacity and who are not already in receipt of a special needs allowance or old age supplement. An annual long-term supplement of $880 for a family, and $440 for a single person, is given to those who have been on public assistance for a period of 12 months to meet extra costs for replacement of household ware and durable goods. In addition, supplementary grants for rent, education expenses, special diets and other essential requirements are provided by the scheme.

To encourage self-help, recipients who are not expected to seek work as a condition of receiving public assistance, may retain any marginal earnings up to $150 a month. Any earnings in excess of $250 a month are taken into account in assessing entitlement to public assistance.

      At the end of 1981, the number of active public assistance cases was 46 734 compared with 45 664 in 1980. Expenditure on public assistance for the 1980-1 financial year was $223 million.

      The Special Needs Allowance Scheme provides a cash allowance on top of public assistance to the severely disabled or the elderly aged 70 or more. These allowances are non-means-tested and non-contributory. Any person, regardless of age, who is severely disabled is eligible for a disability allowance, subject to the conditions that he must have lived in Hong Kong continuously for at least a year immediately before claiming the allowance and that he continues to live here. Any person aged 70 or over is eligible for an old age allowance provided that he satisfies the requirement of continuous residence in Hong Kong for at least five years and is continuing to reside here. From July 1, 1981, the disability allowance has been revised to $350 a month and the old age allowance to $175 a month. The number of people drawing disability and old age allowances at the end of the year was 202 692, compared with 183 366 at the end of 1980. Expenditure on payments in the 1980-1 financial year was $306.3 million, an increase of $69.4 million over the previous year.

      For those who are affected by natural and other major disasters, emergency relief is provided in the form of hot meals and other basic requirements such as blankets and eating utensils. In addition, injury, burial and death grants from the Emergency Relief Fund are paid to victims or their families in case of need. During the year, assistance was given to 35 805 registered victims. The Social Welfare Department also provided hot meals to Vietnamese refugees staying in Hong Kong temporarily.

      The Criminal and Law Enforcement Injuries Compensation Scheme provides cash relief for people injured and for dependants of those killed in crimes of violence, or through the action of law enforcement officers in the execution of their duties. It is administered by the Criminal Injuries Compensation Board and the Law Enforcement Injuries Compensation Board; the chairman and members of which are appointed by Governor. The total amount of compensation payments made in 1981 was $2.1 million compared with $1.28 million in the previous year. With effect from March 4, 1981, the minimum qualifying requirement of seven days sick leave has been relaxed to three days subject to the application being made within three years from the date of the incident.

The Traffic Accident Victims Assistance Scheme provides immediate cash assistance to traffic accident victims (or their dependants in the case of death) without regard to the means of the family or to any element of fault in respect of the cause of the accident.



     Payments are made for personal injury or death only; damage to property is not included. The scheme does not affect the applicant's right to claim common law damages in the usual way. However, beneficiaries of the scheme who subsequently receive damages or other compensation, in respect of the same accident, will be required to refund either the payments they have received from the scheme or the amount of damages or compensation, whichever is the less. The rates and conditions or payment under the scheme are based on the Payment Schedule of the Emergency Relief Fund. During the year, a total of 5 650 applications were received, of which 4 835 were given assistance amounting to $22.5 million.

      To prevent abuse, a special team investigates cases of suspected fraud or overpayment. During the year, the team completed investigation of 240 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 Social Welfare Department regarding social security benefits, received 62 appeals during the year. Of these, 17 were Public Assistance cases, 43 were Special Needs Allowance cases, and two were Traffic Accident Victims Assistance cases.

Aid for Probationers

Services to criminal offenders include provision for giving effect to the directions of the courts on the treatment of offenders by social work methods, with the aim of re-integrating 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..

      Probation, which is a penalty alternative to imprisonment, applies to offenders of all age groups. It allows offenders to remain in the community under the supervision of probation officers and subject to prescribed rules of conduct set by the courts. 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.

Educational, prevocational, social and recreational training is provided in remand homes and correctional institutions to assist juvenile offenders to return to the community as law-abiding citizens. The Social Welfare Department has five institutions specialising in this work, each with a slightly different training programme to cater for different ages and


      The Begonia Road Boys' Home and the Ma Tau Wei Girls' Home are combined remand and probation institutions for offenders under the age of 18 and in need of care and protection. 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 offenders aged 14 and under on admission. The Kwun Tong Hostel is a probation hostel for young men aged between 16 and 21 who are placed on probation by the courts on 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. During 1981 an adviser from the United Kingdom made two visits to Hong Kong to review all aspects of the organisation and operational aspects of the five correctional institutions, to make recommendations on future development of their services, and on the types of social work and educational programmes to be provided.



Apart from the services provided by the department, voluntary agencies such as the Discharged Prisoners' Aid Society, the Lok Heep Club of Caritas - Hong Kong, the Society of Boys' Centres, the Hong Kong 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 and Child Care

The main objective of family welfare services is to help individuals cope with or, where possible, to avoid personal and family problems; thereby preserving and strengthening the family unit. These services are provided on a territory-wide basis through 19 centres operated by the Social Welfare Department and a number of voluntary agencies and, in hospitals, by the Medical and Health Department's medical social workers.

      Services include counselling on personal and family problems; care and protection for young people under the age of 21; residential and foster care for children up to the age of 21; day care for children under six; and referrals for schooling, housing, employment, financial assistance, legal advice, medical attention, home help, and placements in appro- priate institutions for vulnerable groups. The number of families and individuals assisted in 1981 was 20 412.

As an adjunct to the services provided through Family Services Centres, the Family Life Education Unit of the Social Welfare Department co-ordinates the promotion of publicity and programmes aimed at fostering positive attitudes to social and family responsibilities. Territory-wide campaigns making extensive use of the mass media are supported by district level programmes organised by social workers. The theme of the 1981 publicity campaign was on the need for mutual understanding between parents and their adolescent offsprings. The department also exercises statutory responsibilities under a number of ordinances, including the Protection of Women and Juvenile 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 in accordance with standards laid down in legislation. An additional 540 places opened in subvented child care centres in 1981 bringing the total number of subvented places to 12 111.

Residential care is also provided, when necessary, to children and young persons. Studies continued on the best ways of meeting the needs of children who require residential care, and recommendations have been made on improving children's homes and of developing non-institutional care especially foster care and small group homes.

      The Adoption Unit handles both local and overseas adoptions - the latter with the assistance of a voluntary agency. During the past two years, it has also handled cases involving Vietnamese children who arrived in Hong Kong during the refugee influx. At the end of the year there were 475 cases of legal adoption by court orders, 25 proposed adoption cases and 164 cases of overseas adoption.

Care of the Elderly

Direct services to the elderly are provided mainly by the voluntary sector with assistance from the government. They aim at promoting the well-being of the elderly, primarily through care in the community, but, where necessary, by referral to a residential institution. Community services include home help, meals, visiting and laundry services, community education, and social and recreational activities. By the end of 1981 there were 168 home



helpers, 41 social centres for the elderly and six multi-service centres which include day-care services for weaker and more infirm elderly people to enable them to remain with their families.

      Considerable progress has also been made in assisting elderly people to solve their housing problems. Under a new priority scheme, application for public housing units by people aged over 60 will enable them to be rehoused in two years, compared with an average of seven years for ordinary waiting list applicants. In every new housing estate, with 3 000 flats or more, premises will be earmarked for an old people's hostel of 150 places. Half of the places will be for elderly single people, or couples, capable of independent living and the rest will be for those who need meals provided and assistance with washing and other daily chores. An additional 150 places were provided in hostels and old people's homes in 1981, bringing the total of such places to 4 315.

Those who are unable to take personal care of themselves and who require limited nursing care are referred to care-and-attention homes. At present there are 375 places in such homes and this number will rise to 2 940 by 1985-6.

Services for Young People

The Summer Youth Programme and the Chinese New Year Programme are the two main territory-wide functions for young people organised by the Central Co-ordinating Committee for Youth Recreation. The Summer Youth Programme attracted more than two million young people this year who took part in 8 000 different programmes. During the Lunar New Year, there were 223 events with some 57 211 participants.

In recent years, increasing emphasis has been placed on personal social work among young people and the school social work service, provided by the Social Welfare Department, the Education Department and voluntary agencies. This has been designed to assist pupils who have problems arising out of their school work or out of personal or family relationships. The service has now been extended to all secondary schools and a large number of primary schools.

A further area in which social workers are active among the young is in staffing outreaching teams, which establish direct contact with young people in the places they commonly frequent - such as cinemas, playgrounds and fast-food shops - to reach those at risk and who are unlikely to participate in organised youth groups or activities. There are now 18 teams operating in priority areas.

A major review of the Programme Plan on Personal Social Work Among Young People was carried out with the voluntary sector late in 1981, with a view to improving services and deciding on future planning targets and objectives.

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 development in a much wider sense.

The Community Building Policy Committee was formed in 1977 to draw together and co-ordinate a terrritory-wide network of services and facilities which aims broadly at creating a cohesive and harmonious society. 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.

      At present, three government departments contribute directly to community building at the district level: The Home Affairs Branch and the City and New Territories Administration



are primarily concerned with promoting mutual concern and a community spirit through community organisations such as mutual aid committees, owners' corporations, area committees, kaifong welfare associations, rural committees, and clansmen's associations. The Social Welfare Department is responsible for various aspects of group and community work aimed to promote the social development of individuals and groups.

Purpose-built facilities - community centres, estate community centres, community halls and children's and youth centres - provided throughout the territory are run either by the Social Welfare Department or by voluntary agencies. During 1981, a working group was set up to review standards of the provision and facilities in community centres.


     Rehabilitation of the disabled is one of the government's prime concerns in the social welfare field. Services aim at enabling disabled people to develop their physical, mental and social capabilities to the fullest extent possible and assists in their integration into the community. The 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 continue to play an active role in the development of services in this field.

In line with recommendations made in the 1977 Rehabilitation White Paper, a number of changes in departmental responsibilities have taken place. The Education Department is now responsible for all aspects of the education and training of disabled children of school- age and will soon assume responsibility for boarding care and transport services in special schools. Also, since August 1980, the Education Department has started assuming responsibility for vocational training of disabled young persons and adults. The Selective Placement Service of the Labour Department is now responsible for the job placement of deaf, blind and physically disabled people and in stages will take over the placement of the ex-mentally ill, the mentally and socially handicapped.

The Social Welfare Department provides counselling services, day and residential centres, sheltered workshops, work activity centres and special sport, recreational and transport arrangements for the disabled. The department operates 20 centres and institutions and subvents 67 centres run by voluntary agencies, serving a total of 10 600 disabled people.

Considerable shortfalls have been identified in the Rehabilitation Programme Plan in the provision of care for the mentally handicapped and the ex-mentally ill. The 1981 review has recommended an accelerated expansion programme of residential services for the mentally handicapped and the ex-mentally ill including an annual addition of 500 places for the moderately and severely mentally handicapped and 150 places for the ex-mentally ill.

At present, it is planned to expand the provision of sheltered workshop facilities at the rate of 300 additional places per year, with three workshops opened in 1981. In order to better assess demand for this service, a working group with representatives from the government and the voluntary and commercial sectors has been formed to conduct a comprehensive review of the service and to determine a long term development policy. The working group's proposals are expected by mid-1982.

Day care in work activity centres is now accepted as an essential service for mentally handicapped adults who cannot benefit from vocational training, open employment, or sheltered work. Five centres were opened in 1981 bringing the total to nine, with an overall capacity of 492 places. The shortfall in this area is very large and the 1981 programme plan review recommended that the annual expansion should be increased to 340 places for 1981-2 and 150 places from 1982 onwards.




Through its training section - housed in the Lady Trench Training Centre - the department provides basic training in social work to untrained social work staff and refresher and staff development programmes to trained social work staff employed in the department and voluntary agencies; in-service training to social security workers and in-service basic training to child care centre workers. Some 52 courses, seminars and workshops were organised during the year.

      The section also operates a demonstration nursery to provide day-care for 100 children aged two to six. It also serves as a training centre for child care centre workers.

      The section contributes to social work training through the provision of field work placement and supervision to social work students from the University of Hong Kong, the Chinese University of Hong Kong, the Hong Kong Baptist College, the Shue Yan College, and the Hong Kong Polytechnic. A total of 203 students were placed in the department and supervised by the section's staff during the year. The department also provided fieldwork places for 98 students supervised by faculty staff of the training institutions.

      To promote social work training, a number of grants and scholarships are available from the Social Work Training Fund, the Hongkong and Shanghai Banking Corporation and the government as well as from private donations.

Research and Evaluation

The department maintains a Research and Statistics Section to conduct various research studies for planning and reviewing the services offered by the department.

      In 1981, 18 research projects were conducted of which four studies involved household interviews - a sample study of old people referred for compassionate rehousing, a sample study of cases wait-listed for institutions for the aged, a survey of household expenditure of public assistance recipients and a study of demand for child care places for disabled children aged two to five.

      The Planning and Evaluation Sub-committee of the Social Welfare Advisory Committee ensures that evaluation of the effectiveness and standard of services is carried out effectively in both voluntary welfare organisations and the department as part of the administration of programmes and services.

Another function of evaluation is to ensure that funds that are allocated to voluntary welfare organisations in the form of recurrent subvention or grants from the Lotteries Fund, are used for their intended purpose. To this effect, regional staff of the department make regular visits to service units of agencies receiving subvention. Summaries of annual evaluation reports on each organisation are presented to the Social Welfare Advisory Committee for reference and these assist in considering agencies' subvention applications.

      Apart from routine evaluation exercises, the department also undertakes in-depth examinations of individual welfare services, programmes or organisations, on the advice of the Social Welfare Advisory Committee. To direct and co-ordinate these evaluations, the department has a small evaluation section in its establishment. In 1981, the section completed two services and five programme evaluations.


Public Order

ALTHOUGH illegal immigration from China was still of major concern to the security forces during 1981, the flow of these immigrants had been greatly reduced as a result of the abolition of the 'reached-base' policy in October 1980. The implementation of this policy included the compulsory carriage of proof of identity at all times and its production before the holder can be legally employed.

Vietnamese refugees continued to arrive in small boats at a higher rate than in 1980, both directly from Vietnam and via Macau and China. Except those who arrived after settling down in China, all Vietnamese refugees were given temporary asylum pending resettlement overseas. At the end of the year, there were 16 207 Vietnamese refugees still in Hong Kong. The breathing space gave the law enforcement agencies time for consolidation and an opportunity to refine various pieces of legislation. In May, 1981, amending legislation governing public meetings and processions came into effect. The revised law represents a relaxation of controls on the holding of public meetings by introducing a simpler system of prior notification and by providing that smaller meetings in private premises require no prior authorisation. The new legislation also designated a number of public areas where meetings of a larger nature could be routinely held.

Legislation relating to the possession of arms and ammunition - enacted in September - separated measures to control the possession of firearms and of bladed weapons. Require- ments for licensed possession of firearms and ammunition were tightened; penalties for unlicensed possession and other offences committed with real or imitation firearms were increased; and there was the total prohibition of dangerous weapons such as flick-knives. The new law, however, provides a simpler notification system for those who wish to own traditional Chinese martial arts-type weapons.

Major contributions to the safety and welfare of the community were made by the Royal Hong Kong Police Force, the Fire Services Department, the Independent Commission Against Corruption (ICAC), the Customs and Excise Department and the Prisons Department.

Police Force

During its consolidation period, foundations were laid during the year for major restructur- ing and re-organisation of the Royal Hong Kong Police Force. These measures have been designed to have far reaching effects on its operational and managerial efficiency.

The long term planning for various expansion programmes were particularily aimed at the Marine Police and the Traffic Branch. For marine, a 10-year development programme involves commissioning 24 additional launches and 34 replacement launches and an increase of more than 1 250 posts. And for the traffic branch, an indepth review of its establishment has identified the need for more than 400 additional posts.



      On the managerial side, a Force Inspection Unit is being created to carry out regular inspections of all formations to ensure that force policies and priorities are being implemented, that functions are being performed correctly and efficiently, and that formations are adequately manned, equipped and supported.

      The Management Services Wing was also reorganised which resulted in the formation, in October, of a Planning and Development Branch. This branch is responsible for the co-ordination of all aspects of force planning and development including long-term man- power, organisational studies and implementation of the force building programme.

      Corruption prevention studies, carried out within the force, resulted in the formation of a Police Corruption Prevention Group comprising senior officers of both the force and the ICAC.

      An ambitious building programme, which envisages the construction of some 40 police buildings over the next five years, has been drawn up. And more than 3 500 quarters for married junior officers will be provided during the next four years. During the year, the Tuen Mun Divisional Station and Discovery Bay Sub-Divisional Station were completed and 13 further Neighbourhood Police Units and three Report Centres opened to keep abreast with residential development.

On the technical resources side, work continued on the development of the Beat Radio Scheme force-wide, with priority being given to the rapidly developing new towns in the New Territories.

      Consultancy studies also included the computerisation of criminal records and a project to determine requirements for the second generation command and control system equipment.

      While these foundations were being laid, major problems which have been facing the force in the past few years - traffic, crime, illegal immigration and refugees - continued to make heavy demands on manpower and other resources.

      Traffic congestion and associated parking and control problems continued to beset the force, particularly on Hong Kong Island where work started on the Mass Transit Railway Island Line and the Eastern Corridor. The situation was not made easier by the increase in the number of registered vehicles, which at the end of the year stood at 330 311.

       On the anti-crime front, the year's Fight Crime Campaign was directed against the rise in juvenile crime which has become evident in the past two years. Spearheading the year-long campaign to dissuade young people from becoming involved in crime was the 287 000- strong Junior Police Call, the largest youth club of its kind in the world.

      In the recruitment field, the process of consolidation continued and targets of 2000 constables and 200 inspectors were set for the 1981-2 financial year.

      More than 90 per cent of the constables now joining the force have completed secondary education or above following the raising of the minimum entry qualifications. At the end of 1981, the force had an establishment of 22 514 disciplined officers and 4854 civilians.

      In the course of the year, two police officers gave their lives while on duty and another 135 were injured.

A Judicial Commission of Inquiry into the death of Police Inspector John MacLennan found that the inspector had committed suicide. The findings of the 11-month inquiry - which heard evidence from 110 witnesses were published in Chinese and English in a 411-page report which received widespread coverage by the media. Copies of the full report, as well as summaries of it, were also printed for sale to the public.




      Crime During 1981, 77 953 crimes (excluding blackmail and associated thefts) were reported to the police, compared with 73 838 in 1980. Robberies were on the decrease - 8 263 as compared with 9 356 in 1980. Burglaries, on the other hand, increased from 8 989 to 10 583. The overall detection rate was 50.5 per cent compared with 50.7 per cent the previous year.

     A total of 29 738 people were arrested and prosecuted compared with 27 552 in 1980. Adults prosecuted totalled 26 053 and juveniles (under 16 years) numbered 3 685 - giving increases of 9.9 per cent and a decrease of 4.4 per cent, respectively, when compared with the previous year.

Triads and Serious Crime

    An Organised Crime Bureau with two divisions - one dealing with the fight against triads while the other concentrating on high value property crime and all robberies in which genuine firearms were used - was established at Police Headquarters during the year.

      After the new Money Lenders' Ordinance came into effect in December 1980, the Triad Society Division became heavily involved in its enforcement to curb the problem of loan-sharking with some 19 prosecutions being conducted during the year. Other spheres of police anti-triad action included investigations into Public Light Bus monopolies and the exploitation of squatters and residents in Temporary Housing Areas. Specific operations against identifiable triad groups included the 'Wo Shing Wo', 'Luen Lok Tong' and 'Fuk Yee Hing' triad societies. By the end of the year, 2 324 people had been arrested for offences with triad connections, 101 had been prosecuted for blackmail and eight charges of conspiracy had been prepared.

     The Special Crimes Division continued to concentrate on goldsmith and jewellery shop robberies and the recovery of illegal firearms circulating amongst criminal gangs. During 1981, officers of the division recovered stolen property to a value of $1.65 million and seized 40 firearms and imitation firearms. Another 16 people were prosecuted for robberies in which firearms were used.

Commercial Crime

    Reports of commercial crime continued to increase resulting in a total of 1 094 cases being investigated, an increase of 30.3 per cent over 1980. The establishment of the Commercial Crime Bureau was raised to cope with the extra work.

     The year posed problems connected with illegal immigration in a demand for forged identity cards and driving licences as proof of identity. This demand was catered for by forgers exploiting the situation. Action resulted in five syndicates being neutralised and a number of others remain under investigation.

Problems which arose from the counterfeiting of $5 coins resulted in a new $5 coin, with improved security features, being introduced in May. Since the old coin was taken out of circulation in October, no instances of attempts to counterfeit the new coin have yet come to light.

     Action was taken during the year against irregular dealings by unlicensed brokers in the commodities field and several broker's shops were eliminated. New legislation in this field has had a direct bearing on the success achieved.


At the beginning of 1981 stockpiles of drugs released on the international market heralded a good harvest in the Golden Triangle area of Burma, Laos and Thailand, and opiate prices



in Hong Kong fell across the board. By June it was known that much of the record crop of some 612 to 663 tonnes of opium was being refined into heroin base (esters of morphine about 70 per cent pure) at illicit drug manufacturing camps in the hills of the Golden Triangle. This easily transportable drug was then imported illegally by sea and air in plentiful quantities. An increasingly popular, but dangerous method used by air couriers for importing drugs was to fill prophylactic sheaths with their consignment and conceal them internally within the body.

      The retail price of the average street-level packet of No. 3 heroin dropped by 70.7 per cent over the previous year's prices. However, it was encouraging that this downward trend had no adverse effect on the Methadone Treatment Programme for drug addicts. Total prosecutions for drug offences were 36.6 per cent up on the 1980 figure.

However, in 1981 there was an increase in the involvement of young people in dangerous drugs with 8.8 per cent of all prosecutions being under 20 years of age compared with 5.3 per cent for the same age group the previous year. Although in June, the Narcotics Bureau. neutralised a cannabis packing and distribution centre - the first since 1972 - indications are that cannabis is not widely used in Hong Kong.

Criminal Records

Computerisation of the Nominal Index System of the Criminal Records Bureau continued and a contract for all the equipment needed was awarded in June. The system is expected to be fully operational by 1983.


Hong Kong is a member of the International Criminal Police Organisation (I.C.P.O. -- Interpol), the headquarters of which is in St Cloud, near Paris, France.

The Hong Kong Interpol Bureau operates within the Criminal Investigation Department and renders assistance to, and seeks assistance from police forces in 135 countries. The bureau also deals with extradition matters, to and from Hong Kong.

It deals with over 20 requests a day and has its own small investigation unit.

Crime Prevention

As a result of an increase in establishment in 1980, the Crime Prevention Bureau was able to adopt a more active role by visiting factories, businesses, shops, supermarkets and private homes to advise on how people can help themselves reduce crime. The bureau's permanent exhibition of crime prevention equipment continued to prove popular, attracting about 5 000 visitors during the year.

Illegal Immigration

The force commitment in stemming the flow of illegal immigrants remained high although the abolition of the 'reached base' policy saw a dramatic decrease in the number of people trying to enter illegally from China. Legislation made it mandatory for all residents to carry proof of identity at all times and it also became an offence for an employer to employ a per- son who had no identity card. Nevertheless, it remains necessary for the force to maintain a constant vigilance at all times as there are indications that substantial numbers would still come to Hong Kong if there was any opportunity to do so. During the year 7 556 illegal immigrants from China and Macau were arrested and repatriated, against 82 125 for 1980. There has been some change in the pattern of illegal immigration following the change of policy. Far fewer attempted to enter and the year saw the development of small syndicated



operations which, for substantial rewards, conveyed people to the coast of Guangdong and then to Hong Kong by fast speedboats, usually under cover of darkness. The price paid for the passage usually included a forged identity card.

      To enforce the identity card regulations and to flush out illegal immigrants who evaded arrest, the police assumed the task of checking the identification documents of all residents aged 15 and over. Spot checks, carried out throughout the territory on a daily basis, were supplemented by special operations to arrest illegal immigrants at their hiding places, thus preventing the formation of an underground population. During the year, a total of 1 479 evaders were arrested as a result of all these checks.

      Also during the year, 15 302 Vietnamese refugees arrived by sea. Of this number, 3 416 came via China where they had settled after leaving Vietnam during the 1979 exodus. Negotiations with the Chinese authorities resulted in 2 725 being returned to China. Resettlement overseas for other Vietnamese refugees continued to be slow and at the end of 1981 there were still 16 207 refugees living in Hong Kong camps.

Public Order

There were no major incidents affecting Hong Kong's internal security during the year. A number of minor confrontations, mostly related to the clearance of squatter areas, occurred but were resolved without serious incidents.


With a continuing increase in the number of registered vehicles and the associated congestion and enforcement problems, there was a rising accident toll with increased management and diversion problems. At the end of the year, there were 330 311 registered vehicles of which no less than 211 556 were private cars.

      The traffic accident toll continued to rise with a total of about 18 064 accidents resulting in some 478 people being killed and about 23 109 being injured. Traffic Police work closely with the Road Safety Division of the Public Works Department in investigations into the cause of accidents. These resulted in recommendations for traffic engineering works to contain the accident rate. The Road Safety Division of the Police Force also continued to spread the road safety message by all possible means particularily with the co-operation of schools, and the school crossing patrols, in a programme of lectures and demonstrations.

To ease congestion in urban areas, the Traffic Police were involved in the planning of public transport priority schemes to shorten journey times for public transport during peak periods. Most of the schemes - except the experimental one at King's Road on the eastern part of the Hong Kong Island - were successful and the Traffic Management Section of Traf- fic Headquarters is participating in 49 studies designed to improve journey times for buses. Another territory-wide problem was the activities of irresponsible drivers who partici- pated in illegal road racing, usually late at night and at weekends. Stringent enforcement action succeeded in reducing this very dangerous practice.

Assistance to the Public

The number of requests from the public for assistance from the police continued to increase during 1981. A total of 544 938 requests for help was received on the '999' telephone system, at police stations, Neighbourhood Police Units, Report Centres, and by patrolling police officers, an increase of 128 975 over last year's 415 963.

     A particularly encouraging feature of the requests received was that of the total, 470 803, or 86.4 per cent, were for help in matters not related to crime. These were mainly for general



assistance such as domestic disputes, accidents, tenancy matters, nuisance complaints, complaints of inaction of other departments, and requests for information and advice.

      The Marine Police played a particularly significant role in providing assistance to the public and shore patrols from police launches often formed the only link between the government and residents of various small islands and remote villages. Such remote settlements were visited regularly and day-to-day problems of villagers brought quickly to the attention of various departments. In addition, police launches were regularly engaged in casualty evacuations and often provided assistance to people on board pleasure craft and to canoeists and swimmers.

Community Relations

The force continued to harness closer ties with the public through various public relations schemes Police Community Relations Officers, Neighbourhood Police Units, Junior Police Call (JPC), the Good Citizen Award Scheme and various campaigns. All these efforts have resulted in more people assisting the police in their fight against crime and results were reflected by the fact that 11.4 per cent of all arrests during the year were made by members of the public.

      Junior Police Call - the largest youth club of its kind in the world with 287 000 mem- bers - concentrated on a year-long fight youth crime campaign to contain the crime rate involving young people which had taken a sharp rise in the past two years. A vigorous recruitment campaign was started in order to dissuade young people from becoming involved in crime and a central committee, comprising 51 well-known young Hong Kong personalities, was set up with three members allocated to each divisional council. Throughout the year, JPC continued to organise various activities ranging from sporting competitions and camps to fund-raising campaigns for charity and carrying out domestic chores for the aged and the disabled. Weekly radio and television programmes supple- mented club activities.

      Five winners of the year's Young People's Help The Police competition visited Canada as part of their prize while another 178 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 1 120 the total number of people awarded since the scheme was implemented in 1973.

      The third series of the popular Chinese television drama On the Beat, which depicts realistically the lives and work of police officers, was produced during the year. Production of the two established weekly Police Report television programmes - in Chinese and English - which seek help from the public in solving outstanding crimes continued throughout the year with 386 arrests made as a result of information supplied from viewers.

      To extend police services and assistance to tourists who might have language difficulties, a special tourist hotline - 5-29000 - was set up in the Police Public Relations Wing. The hotline is manned round-the-clock by officers who speak English, Chinese and Japanese.

Fight Crime Committee

The Fight Crime Committee continued to plan, organise and co-ordinate government and public efforts to assist the police to combat crime. Chaired by the Secretary for Home Affairs and attended by senior government and unofficial members, the committee oversaw the annual fight crime publicity campaigns with members frequently participating in publicity and promotional activities. It also continued to review territory-wide street



lighting facilities to ensure the best available resources were directed towards eliminating unlit paths and other crime blackspots.

      At district level, a network of divisional Fight Crime committees promoted frequent contact between the police and the public. While the police representatives made a point of keeping the committees well briefed on local crime statistics, the committee members' perspective on local conditions and problems was, in turn, of assistance to the police in combating crime.

Recruitment and Personnel

     By the end of 1981 the establishment of the force had risen to 22 514, an increase of 533 over the corresponding figure in 1980. In addition, the force had an establishment of 4 554 civilians, representing 177 per cent of the overall establishment.

Notwithstanding raised academic requirements for constables, the number of applica- tions to join the force increased to 7 048. Of these, 74 per cent met the required physical and educational standards and 1 692, including 89 women, were taken on during the year.

      The 186 officers appointed to the inspectorate came from three major sources: 52 local applicants were appointed directly, 68 officers were promoted from the junior ranks and 66 were recruited overseas, principally in the United Kingdom.

Promotion prospects in the force remain extremely good at all levels. During the year, 23 chief inspectors were promoted to superintendent, 66 senior inspectors to chief inspector, 99 sergeants to station sergeant, and 368 constables to sergeant. In addition, 81 junior police officers were promoted to inspector through the force's Potential Officer Selection Scheme - introduced in 1980- and 13 exceptionally experienced station sergeants were also promoted to inspector.


The Police Training School at Wong Chuk Hang, Aberdeen, which provides basic training for police inspectorate and junior officer recruits and traffic wardens, is being expanded to meet increasing needs. Recruit inspectors undergo a 28-week course and recruit constables a 20-week course, which covers criminal law, police and court procedures, drill and musketry, first aid and physical exercise. Overseas inspectors also attend an eight-week course in colloquial Cantonese. Recruit traffic wardens undergo a similar six-week course covering legislation and procedures related to traffic matters.

Apart from basic training, the school provides in-service training for serving junior police officers, newly promoted NCOs and specialised traffic personnel. These courses are designed to up-date officers on new legislation and to prepare them for a higher rank.

A 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 after passing out from the Police Training School and involves class attendance for two consecu- tive 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 continued to hold 12-week main training courses throughout 1981 at its new premises at Kai Tak. Four main courses were held with 26 inspectorate, 20 sergeants and 80 to 100 detective constables attending each course. Preliminary courses of four weeks duration for Uniform Branch inspectorate officers with CID potential have proved very successful. Officers from other government departments, in particular from the Immigration Department and Customs and Excise Service, attended each main course.



The Marine Police Training School, at the old Aberdeen Police Station, is responsible for carrying out all seamanship training. During the year the Third Class Certificates of both navigation and engineering were replaced with a new Certificate of Competency, the Marine Police Efficiency Certificate.

At the Police Tactical Unit at Fanling in the New Territories, 1 869 officers from the rank of constable to superintendent underwent training in all aspects of crowd control and internal security tactics. This training consists of a three-week cadre course for supervising officers followed by a 10-week training course for the full company of 169 men. At the conclusion of this training period, companies are returned to their districts, where, for a further 20 weeks, they perform a variety of duties encompassing the whole spectrum of police work from crowd control at large sporting or social occasions to specifically tasked anti-crime operations.

Some 1 262 drivers successfully completed training at the force's comprehensive driving school which provides basic, refresher, specialist and advanced training on a wide variety of vehicles.

      During the year 337 junior police officers attended full-time English language courses locally and 18 local inspectorate officers attended higher education and English language courses at Lancaster University, London. In addition, 34 officers of various ranks attended training courses in professional and technical subjects in the UK, Canada, USA, Malaysia and West Germany. 12 officers are undertaking a diploma course in Japanese at the Hong Kong Polytechnic and three officers another diploma course in business studies at the Hang Seng School of Commerce.

To cope with expansion and provide additional expertise in certain districts and branches of the force, 1981 saw the introduction of special full-time courses in accounting and financial investigation for officers from the Commercial Crimes Bureau at the Chinese University of Hong Kong, and radar/navigation courses for marine police officers at the Hong Kong Polytechnic.

Police Cadet School

Since its formation in 1973, the establishment of the Police Cadet School has progressively been increased from its original 150 to its present 750. During its eight years of operation 1 518 cadets have graduated from the school. Of this number, 1 350 joined the Police Force, 33 entered the Fire Services Department, 56 chose the Customs and Excise Service and 28 jointed the Prisons Department.

Organisation and Structure

Comprehensive reviews were carried out throughout the year into various areas of the overall command structure of the force which will result in major restructuring and re- organisation of most divisions with the ultimate aim of greater decentralisation and efficiency of authority.

The New Territories District was further strengthened to cope with the rapid increase in population which, by the mid-eighties, is expected to top the two million mark. At the end of the year, the district had a total establishment of 3 541 police officers, with an actual strength of 3 567.

Planning went ahead for an expansion of the Mass Transit Railway Police Division, established in 1979 to police the Modified Initial System, in anticipation of the opening of the Tsuen Wan extension in mid-1982. At the same time, the force was also involved in planning the policing needs of the Hong Kong Island Line.



Buildings and Development Approval was obtained during the year for a time-table to construct more than 40 new police buildings over the next five years. The building programme included district and sub-divisional stations which will be constructed in association with the development of new towns. In addition, a programme for the provision of 3 500 junior police officers. married quarters was also proposed. Construction of quarters of an improved design will start in 1982 and extend over a period of three to four years.

      Other on-going projects included 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 police stations. A site had been set aside on the Wan Chai waterfront for a new force headquarters which, when completed in 1987, will accommodate the existing headquarters, the headquarters regional, Hong Kong Island district headquarters and Wan Chai divisional police stations.

During the year, a divisional station at Tuen Mun and a sub-divisional station at Discovery Bay on Lantau Island were completed and opened. Construction also started on new police stations at Tsim Sha Tsui, Sau Mau Ping, the airport, and Lo Wu.

      The Communications and Transport Branch manages a fleet of 1 607 vehicles, com- prising 1 081 four-wheel vehicles and 526 motorcycles, and is responsible for the provision, maintenance and development of a highly sophisticated communications network for the force.

In order to improve the working environment of officers engaged in patrol duties over long periods, in hot and humid conditions, large air-conditioned patrol cars were acquired. The first of these cars were allocated to Traffic/Hong Kong Island, Traffic/New Territories and Emergency Unit/Hong Kong Island in June 1981.

Replacement of obsolete radio equipment on the Traffic Branch, Special Branch and Internal Security networks is now nearing completion. The work involved the movement of the network in the frequency spectrum, expansion of the network and an extension in the radio coverage. This is on the same scale as provision of a completely new and extensive network covering the entire territory. The system engineering design was developed on a consultancy basis with an equipment supplier.

The shortage of professional engineering staff and the fact that the currently installed systems are becoming congested and overloaded has been a matter of concern. To meet these problems before they become a limiting factor in force activities, a telecommunica- tions consultancy firm was appointed to plan and engineer UHF radio facilities based on a requirement to extend the Beat Radio system throughout the territory. The consultancy is expected to last three to five years and the results of the consultants studies will determine the shape of force radio communications for the future.

A project, by two Royal Navy officers, to provide a joint Police-Armed Services Radio Communications Network for all maritime forces in Hong Kong, with a capability to reach service aircraft and military units, continues on schedule.

Continued co-ordinated efforts between the Mass Transit Railway Corporation and the force consultants have ensured that command and control facilities and police radio communications within the Mass Transit Railway Corporation premises have been provided in step with the extension of railway service.

Complaints Against Police Office

During the year a pamphlet describing how members of the public can register complaints about police procedures or misconduct by police officers through the Complaints Against








A Maritime Base

Hong Kong has always been a maritime territory, its people live by the sea and have prospered from it. The most plausible theory on Hong Kong's origin is that it was named after what is now known as Aberdeen in the Ching dynasty it was Hong Kong Ts'un, a small village inhab- ited by fisherfolk and incense makers. Before the Western settlement, Hong Kong was a haven for pirates and when the British came in 1841 it became a trading port. Life by the sea thrived and today it ranks as one e of the three most perfect natural harbours in the world (after San Francisco and Rio de Janeiro); it has the third largest container through-put (after New York and Rotterdam); and it is the seventh busiest port, handling some 10 000 ocean-going vessels a year. It is a busy, bustling harbour with cargo and container ships loading and discharging goods with the help of lighters and cranes throughout the day and night; with passenger ships from all parts of the world bringing visi- tors to see the Orient; and with ferry services plying between Hong Kong Island and Kowloon and between Hong Kong and China. Some 90 per cent of the ter- ritory's domestic exports are handled through the port and there are just as many travellers by sea as by air. Ship building now caters for ocean-going vessels and ship ownership in terms of tonnage is second only to Greece. The 50.5 hectares container complex built at Kwai Chung in 1972 is the largest in Asia.

Previous page: The crew of a yacht watch preparations for the start of a junk race between the Elf China (left) and the Adven- ture Ship Huan. Left: Fast police boats patrol Hong Kong waters to combat illegal immigrants and smugglers; a Marine Department launch cleans the harbour; a Royal Navy mine-sweeper escorts the Omani dhow Sohar into Hong Kong.


   The latest addition to the Fire Services fleet, the $10 million Fire Boat 6, goes through her paces in the harbour.




Yellow croaker

Robinson's ginko

Golden thread

White-flower croaker


Red grouper

The new fisheries research vessel, Tai Shun.

Slender white herring

Leopard coral trout


Black-fin surgeonfish

Blue-banded rainbow fish



The Hong Kong Sea School provides an opportunity for young men to equip them for a career in the merchant navy.



A major festival in Hong Kong, Tin Hau, is dedicated to the goddess of the sea, and

thousands of craft are gaily decorated to pay homage to the deity.




Asia's largest container complex at Kwai Chung also provides roll-on, roll-off facilities for the large cargo ships.



Police Office was made available to the public. The office, which has premises on both sides of the harbour, monitors all investigation 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 Commis- sion Against Corruption).

A senior Crown Counsel was appointed by the Attorney General to assist the Com- plaints Against Police Office in identifying lines of investigatory action in criminal and disciplinary cases. In 1981, 2946 complaints were received; an increase of 13.5 per cent over 1980.

       The handling of all complaints continued to be reviewed on a monthly basis by the UMELCO Police Group which comprises members of the Executive and Legislative Councils, the Attorney General and two senior police officers.

During the year, 35 members of the force were found guilty of disciplinary offences arising out of complaints, most of which were of a minor nature. In addition, 17 police officers were convicted of criminal offences arising out of complaints.

Auxiliary Police

The Royal Hong Kong Auxiliary Police Force recruits volunteers from all walks of life and has an establishment of 5 435. Its actual strength at the end of 1981 was 5 104. The principal role of the force is to support the regular force in its constabulary duties. In an emergency, when mobilisation may be ordered, auxiliaries provide personnel for internal security work.

In 1981, a daily average of 967 auxiliary volunteers turned out for constabulary duties. The efficiency of the force continued to be maintained by scheduled in-service training at Auxiliary Police Headquarters on Hong Kong Island, various auxiliary unit bases and the new Kwai Chung Training Centre.

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 year 1981 saw the Customs and Excise Service undergo a significant re-organisation. The service was previously organised on a functional basis and the work was controlled through two lines of management, one controlling operations and the other controlling administration. The re-organised service has two specialist/support branches - the Customs and Excise Headquarters and the Customs Investigation Bureau - and a field structure comprising three regions which cover Hong Kong Island, Kowloon and the New Territor- ies. The establishment of the service at the end of 1981 was 1992 in all ranks, supported by 167 civilians. The Commissioner of the Customs and Controls Department is also 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 oil 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. Some $917.38 million in revenue was collected on dutiable commodities in the 1980-1 financial year, compared with $883 million in 1979-80. The service relies tradition- ally on the Government Laboratory to provide analytical and advisory services to protect the revenue. Tobacco products, liquors, denatured spirits, and treated diesel oils were regularly examined whilst a close watch was maintained for adulterated products.

Anti-Narcotics Operations

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. Apart from intercepting illegal imports, action is also taken against drug manufacturing, trafficking and abuse within Hong Kong. The service maintains close liaison and co-operation with the Royal Hong Kong Police Force, overseas customs authorities and other law enforcement agencies.

      During the year, anti-narcotics operations led to the seizure of 189 kilograms of dangerous drugs - including 36 kilograms of heroin, 52 of heroin base and 96 of opium. A total of 750 people were charged with narcotics offences.


Copyright Protection

The Customs and Excise Service is responsible under the Copyright Ordinance for protecting copyright in respect of literary, dramatic and musical works. While the problem of piracy in sound recording has been largely contained, there has been an upsurge in the illicit copying of motion pictures and television programmes. During 1981, the Copyright Protection Division undertook 156 investigations resulting in 43 persons being charged and seizures of 3 453 pirated video tapes, 59 video recorders, 114 713 pirated books and magazines and 635 pirated musical tapes. An offshoot of the division's activities in video recording had been the seizure of large quantities of pornographic tapes which led to 25 persons being charged with offences under the Objectionable Publications Ordinance.

Independent Commission Against Corruption

     There are signs that corruption is on the increase, with a record number of 509 people brought to court during 1981. The number of corruption complaints made to the commission also went up by 32 per cent compared with the previous year.

The ICAC - established in 1974 to tackle the problem of corruption through detection, prevention and education is financed from general revenue. However, the commissioner engages his own staff and is directly responsible to the Governor.


The commission has an establishment of 1 138 with 683 posts in the operations department, 68 in the corruption prevention department and 273 in the community relations department. Support service is provided by an administration branch which is made up of 114 posts. At the end of the year, the commission had 1 005 staff, with 65 in operations, 60 in corruption prevention, 235 in community relations and 95 in the administration branch.

An advisory committee on corruption consisting of leading citizens and senior govern- ment officials provides guidance for the commission on policy matters affecting staffing, financial estimates, administration and other aspects of its work. Each of the three



     functional departments also has a separate advisory committee whose membership represents a wide cross-section of the community.

An ICAC complaints committee, comprising seven Unofficial Members of the Executive and Legislative Councils and a law officer, monitors complaints against the commission and advises the commissioner on any action considered necessary.


The operations department is responsible for receiving and investigating reports of alleged or suspected offences under the Prevention of Bribery Ordinance, the ICAC Ordinance and the Corrupt and Illegal Practices Ordinance.

In 1981, the department, received 2 344 corruption complaints compared with 1 772 in 1980, continuing an upward trend in the number of corruption reports received since 1979. Of these, 688 were made by the public in person, either to the commission's 24-hour report centre in the operations department, or to one of the 10 ICAC local offices; 963 complaints by telephone; 62 by letter and 231 reports were referred by other government departments. Over 59 per cent of the complaints were made by people who identify themselves, thus underlining the extent of public confidence in the commission.

      Corruption complaints against members of the Royal Hong Kong Police amounted to 735 compared with 523 in 1980, while those against other government departments increased from 717 in 1980 to 820 in 1981. An upward trend was also discernible in complaints alleging corruption in the private sector, 695 such reports were received in 1981 compared with 534 in 1980.

This increase in corruption complaints resulted in a corresponding increase in the number of investigations and prosecutions by the department. The number of people taken to court for corruption and related offences in 1981 reached a record figure of 509, compared with 333 in 1980. At the end of the year, 369 such prosecutions had been completed with 314 convictions, representing a conviction rate of 85 per cent, and 132 cases were still outstanding.

      On the advice of the operations review committee, reports concerning 181 serving or former government officers were forwarded to the Secretary for the Civil Service or heads of departments for consideration of disciplinary or administration action.

Corruption Prevention

The corruption prevention department is the commission's executive arm in securing changes in working procedures within government departments and public bodies and in giving advice to all seeking it wherever corruption opportunities are believed to exist.

During the year the department carried out 106 studies of all types, bringing the total since 1974 to 627. Conventional assignments in which the procedures of client departments are studied will remain the primary task of the department. However the work of reviewing, updating and, where necessary, completely reassessing previous studies continued to grow in importance during 1981, when 33 studies were re-examined. This monitoring process is an essential element of corruption prevention work in view of the rapidity with which the government and public bodies change to meet new demands.

The basis of the department's work remains the principle of supervisory accountability - that management not only has a responsibility to ensure that work is done, but also must establish how it is being done and make certain that results are not achieved by unjust or unjustifiable methods which are often the breeding ground for corruption. The external training group of the department continued to explain the concept to officers with



managerial and supervisory responsibilities in government departments and, on request, in a number of public bodies. Instruction was also given on the principles of corruption prevention, and on the procedures to be followed, by individuals and by the departmental hierarchy, when an offer of a bribe is made. The problems arising from unmanaged, and sometimes unconscious, delegation of authority were also covered. During 1981, 305 seminars for 4 992 officers in 24 departments were run; there were also a number of 24 seminars for those in the private sector and public bodies.

      The year saw a closer working relationship being established with a number of departments, including the Royal Hong Kong Police Force. The idea of joint studies with corruption prevention department staff working together with departmental officers to find the best answers in management and prevention terms gained further acceptance in 1981. More attention was given to the grey areas and gaps in co-ordination which inevitably exist when the responsibilities of a number of departments impinge and even overlap.

      Advice on draft legislation, regulations, new procedures and instructions also form a significant part of the day-to-day workload of the department. The need to consult the ICAC in these matters is now fully accepted within government.

Community Relations

The community relations department has the task of changing the community's attitude towards corruption and fostering public support for the commissioner's efforts. This is achieved through the production of educational and publicity materials for maximum exposure through the mass media and through bringing the commission's message to individuals and groups in the community by way of personal contact.

      During the year, the department produced an hour-long drama series Vanguard, based on actual investigations, for television. The commission's overall publicity plan to empha- sise the evils of corruption was sustained through a new multi-media publicity package. This included a television series of five-minute films on the main features of the anti-bribery laws. On the media relations side, the department handled 331 press enquiries and issued 629 press releases during the year.


In the latter part of the year the commissioner opened a local office in Tuen Mun. There are now 10 of these offices open 12 hours a day which provide a district base for receiving corruption complaints and for launching involvement activities for the public.

Although efforts were made to reach all sectors of the community, special attention was devoted to young people in view of their future role in society. Towards this end, a series of activities were organised to promote the idea of a fuller life which includes caring for others, service for the community and other meaningful activities and to underline that materialistic gains should not be the sole purpose in life. The programme was mounted with the assistance and support of a number of organisations and involved tens of thousands of young people. The department continued to maintain close contact with the teaching profession and education institutes to emphasise the importance of social education and character training. During the year, a project Know Your Government involving students from 53 secondary schools was completed. A comprehensive teaching kit on the problem of corruption and the work of the commission and a discussion film for use among secondary school students were also produced.

A small unit in the commission continued to monitor public response to and perception of the problem of corruption and the work of the commission. During the year a report on a major survey that took place in 1980 was produced and a series of studies and evaluation projects on the activities of the community relations department were completed.


Government Laboratory


The Forensic Division of the Government Laboratory continues to provide a forensic science service to law enforcement authorities, including the Royal Hong Kong Police Force, Customs and Excise Service and the Independent Commission Against Corruption. The division is largely engaged in the scientific investigation of crime. The largest specialist unit in the division is concerned with general forensic science where laboratory examination of exhibits from many scenes of crimes are coupled with visits by scientists to the scenes. Forensic blood grouping, questioned document examination and arson investi- gation feature prominently in the work of the division. It is also involved in the examination of narcotics, scheduled poisons, and organs and body fluids in cases where the cause of death is unknown.

      The laboratory carries out extensive urinalysis as an essential part of the methadone maintenance and detoxification programmes and a special laboratory caters for the requirements of these programmes which expanded appreciably during the year.

Prisons Department

The Commissioner of Prisons is responsible for the overall administration of 18 institu- tions, a half-way house and a. Staff Training Institute with an establishment of 4 482 uniformed staff and 465 non-uniformed staff. During 1981, detention facilities were also provided for more than 3 500 illegal immigrants in six of the institutions. Excluding illegal immigrants, the average daily penal population was 6 912 compared with 6 499 in 1980 a continuation of the recent upward trend.

       Since January 1981 all male offenders under the compulsory drug addiction placement programme for treatment have been housed at Hei Ling Chau Drug Addiction Treatment Centre to allow the former Tai Lam Drug Addiction Treatment Centre to be changed to a minimum security prison - re-named Tai Lam Correctional Institution.

      Tong Fuk Centre - previously catering for adults - also changed its role in June 1981 to house young prisoners under the age of 21 to relieve the severe overcrowding in Pik Uk Correctional Institution caused by an increase in the number of young people in custody.

Towards the end of the year inmates from Hei Ling Chau Drug Addiction Treatment Centre assisted in the fight against pollution by collecting refuse from the harbour.

      Work has started on extending the facilities at the Staff Training Institute, and the construction of a half-way house pre-release centre in Lung Cheung Road. Construction of the new maximum security prison at Shek Pik and the minimum security Tung Tau Prison continued, as did work on the development projects on Hei Ling Chau.

Adult Male Prisoners

The department operates eight prisons and a psychiatric centre for male adults. The adult prisoner population increased during the year to an average daily population (excluding illegal immigrants) of 4 533. This compares with 4 218 in 1980. While Stanley Prison will continue to operate as the largest maximum security holding centre, the new maximum security prison under construction at Shek Pik on Lantau Island will provide valuable alternative facilities for the dispersal of convicted gang elements and for the increasing number of life and other long-term prisoners

      Lai Chi Kok Reception Centre houses all adult males on remand, detainees under the Immigration Ordinance, and newly-convicted prisoners pending classification and alloca- tion to other prisons. Certain appellants are detained at the centre but in order to relieve unacceptable pressure on accommodation, as from May, a number of appellants were




      transferred to Victoria Prison. Debtors are new housed in the Tai Lam Correctional Institution.

      There are two medium security prisons; Victoria in Central District and Ma Po Ping on Lantau Island. Victoria Prison serves a dual function of housing adult prisoners (including a number of appellants) with sentences of less than ten years, as well as illegal immigrants.

Minimum security prisons are located at Ma Hang, Pik Uk, Chi Ma Wan and Tai Lam. Chi Ma Wan resumed its normal function of accommodating adult prisoners during the year, although part of the facilities continued to house illegal immigrants.

Prisoners at Ma Hang, Chi Ma Wan and Tai Lam are mainly employed on outside work while those at Pik Uk constitute mainly the work force of the new laundry. Ma Hang and Ma Po Ping have geriatric units for prisoners who are considered clinically to be too old to participate fully in ordinary activities.

      Siu Lam Psychiatric Centre is a maximum security prison providing psychiatric treat- ment for the criminally insane and convicted prisoners of a dangerous and violent nature. Inmates of other institutions requiring psychiatric treatment, and those for whom the courts require assessment, are also accommodated there but are detained separately. The centre remains overcrowded and work continues on the planning of an extension to the present facilities.

Young Male Offenders

The department operates three different correctional programmes (excluding drug addic- tion treatment) and administers six institutions for young offenders. During the year, the number of young people in custody increased to an average daily population of 1 144, compared with 929 the previous year. It was therefore necessary in mid-year to change the role of Tong Fuk Centre, previously an institution for adults, to accommodate young prisoners with relatively short sentences and lower security rating.

Pik Uk Correctional Institution operates as a multi-functional maximum security institution with facilities for a reception centre, a training centre and a prison for young offenders. Also detained for short periods were young people under 25 convicted by the courts but referred to the department for pre-sentence reports on their suitability for admission to a detention centre.

Cape Collinson Correctional Institution caters for those aged between 18 and 21, although part of the institution was again used to house illegal immigrants during the year. Lai King Training Centre mainly accommodates young people remanded for pre- sentence reports on their suitability for admission to a training centre; young prisoners under 21 remanded for trial on minor offences; and training centre inmates aged 14 to 17.

      Sha Tsui Detention Centre is a medium security institution with two sections, one for young offenders under 21 and the other for those aged 21 to 24. Nei Kwu Chau Detention Centre on the island of Hei Ling Chau caters for young male offenders mainly in the 14 to 16 age group.

Female Offenders

The Prisons Department operates two institutions for females. The first, Tai Lam Centre for Women, operates as a prison for adult women and also houses a drug addiction treatment centre section. The Tai Tam Gap Correctional Institution for young female offenders is divided into two sections: a training centre and a prison for young females under the age of 21, and for female illegal immigrant detainees under the age of 21.


Drug Addiction Treatment


The Prisons Department administers a compulsory placement programme for treatment of convicted drug dependents. This provides the courts with an alternative to prison for minor offenders who are found to be drug dependent. There are two drug addiction treatment centres: Hei Ling Chau Centre (incorporating the young inmate centre) and a section at Tai Lam Centre for Women. An inmate of a drug addiction treatment centre is required to stay for a period of four to 12 months, and is subject to one year's compulsory supervision following release. The treatment programme is based on discipline and physical activity - including work programmes and different forms of therapy - supported by a comprehensive after-care service.

At the Hei Ling Chau Drug Addiction Treatment Centre, work continued on a development project which, when completed, will provide additional facilities for 150 inmates. In addition, the construction of staff quarters is also being undertaken. A new piggery at the centre is being extended for the rearing of more than 750 pigs.

After-care Services

After-care supervision plays an important role in helping training centre, detention centre and drug addiction treatment centre inmates, as well as young prisoners, to re-establish themselves in society after release. After-care starts immediately after admission and steps are taken to build up a good relationship between the inmate, his family and the officer on after-care duties. After discharge, officers maintain close contact with the supervisee through visits to his home and place of work, offering advice, counselling as necessary and ensuring that the terms of the supervision order are followed.

      Success rates for centres are defined as the percentage of inmates who complete the statutory supervision period without subsequent reconviction; in the case of drug addiction treatment centres they must also be drug free. The supervision period for former inmates from training centres is three years, while for detention centres, drug addiction treatment centres and prisons the period is 12 months. Based on these definitions, the programmes - supplemented by the after-care service - have achieved encouraging results and by the end of 1981, the training centre success rate was 64.99 per cent; the drug addiction treatment centre success rate was 66.91 per cent and that for detention centres was 94.58 per cent.

Prison Industries

Prison industries continue to train inmates in a number of trades and better utilise inmate labour in providing goods and services for government use. The major industries include the manufacture of garments, shoes, fibreglass products, road signs, carpentry, printing, light engineering and laundering. The value of prison products in 1981 was $39 million compared with $29.8 million in 1980. The manufacture of pre-cast concrete kerbstones was implemented at Tai Lam Correctional Institution as a new trade in prison industries during the year and a multi-storey laundry which each year can handle 5.5 million kilogrammes of clothing and linen from government hospitals and clinics, became operational at Pik Uk Prison in July 1981.

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. Visiting Justices are required to carry out certain statutory duties such as the investigation of complaints made to them by prisoners, the inspection of diets,



and the examination of accommodation. They are required to report in writing to the Governor 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. Visits are undertaken at times and on days of the Justices' own choosing, within a prescribed period, and take place without prior notice. A total of 370 such visits were made by Justices to the various institutions during the year.

Medical Care

All penal institutions are equipped with hospitals or sick bays providing health care, including vaccinations, inoculations and chest X-rays for inmates. Full dental care is given to those serving a sentence of more than three years, and routine and emergency treatment is available for those serving shorter sentences.

Medical and surgical emergencies are transferred to government hospitals while less urgent cases are referred to visiting consultants or to government specialist clinics. Two psychiatrists from Castle Peak Hospital visit Siu Lam Psychiatric Centre daily to provide treatment, to prepare psychiatric reports for the courts and to examine prisoners referred for assessment from other institutions.

      In 1981, a total of 1 835 prisoners and inmates voluntarily donated blood to the Hong Kong Red Cross.

Staff Training

The Staff Training Institute provides basic training for new members of staff. All newly recruited officers and assistant officers must undergo a one-year training course which is divided into three stages interspersed with two periods of field training. The institute also provides regular refresher courses and specialised continuation courses for serving staff to supplement in-service training.

Work on an extension to the Staff Training Institute started in June 1981 and the project is expected to be completed in early 1983.

Discharged Prisoners' Aid Society

The Discharged Prisoners' Aid Society is a voluntary agency 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 with domestic problems. The society also arranges recreational activities in institutions including variety shows, sports fixtures and film features, which help it to build up a good relationship with prisoners.

Fire Services

The Fire Services Department responded to and dealt with 274 632 emergencies in 1981, of which 14 231 were fire calls, 7 434 special service calls and 252 967 ambulance calls. Fires caused 42 deaths, and left a further 776 other people injured. Of the injured, 82 were firemen. A total of 1 482 people were rescued and hundreds of others were led to safety by firemen.

False alarm calls numbered 4 701 of which the great majority were caused with good intent either by the public or by over sensitive or defective automatic alarm systems, particularly smoke detectors.


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, three new fire stations including one command headquarters building and a new fire boat for Kwai Chung area were commissioned during the year. These were the Sheung Wan Divisional Fire Station, which also serves as Hong Kong Fire Command Headquarters, the Garden Road Fire Station and the Mai Po Fire Station in the New Territories. The total number of fire stations and ambulance depots is now 59. Others have been included in the various categories of the Public Works Programme and in private developers' projects for construc- tion over the next few years.

       At the end of the year, more than 1 940 staff quarters were occupied or available for occupation. Construction work on 984 additional married quarters for firemen and ambulancemen will start as soon as funds are made available.

Fire Prevention

The department is responsible for enforcing fire safety regulations. It also advises and assists all sections of the community with regard to fire protection measures generally and 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 demonistrations - 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. The increasing number of complaints (10 885) received from the public was seen as an indication of the level of public concern over potential fire hazards and a growing realisation of the services provided by the department.

Fire Services personnel made 267 674 inspections of all types of premises and, where fire hazards were found, abatement notices were issued. In 1981, there were 3907 prosecutions for non-compliance with abatement notices resulting in fines amounting to $1.8 million.

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 11 664 new building plans were processed during the year.

Research into matters associated with fire safety is continuously being carried out by the department.

      The Fire Protection Bureau - the executive arm in the department to enforce fire safety regulations - had made certain changes during the year in order to provide better services to the public and to increase productivity. Major changes involved the amalgamation and decentralisation of four divisions in the bureau - the Schools and Factories Division, the Complaints and Prosecutions Division, the Dangerous Goods and Timber Stores Division and the Places of Public Assembly Division - and the setting up of three regional offices to shoulder the responsibility of these divisions. The cessation of checking or vetting of fire service installation plans, and the revised procedure under the current Centralised Processing System of permitting Authorised Persons or their authorised representatives to make minor amendments to building plans in the bureau from September 1981, were also changes made by the Fire Protection Bureau during the year. These resulted in shortening the time normally required for plan processing.



Legislation The Fire Services (Amendment) Bill 1981 was introduced and enacted and the Fire Services (Installation and Equipment) (Amendment) Regulations 1981 were made during the year.

The bill makes a number of unrelated amendments to the Fire Services Ordinance. The more important amendments being: clarification that the jurisdiction of the Director of Fire Services over vessels is limited to extinguishing such fires as may break out upon them; re-arrangements of the order of duties of the Fire Services Department to make it clear that the primary functions are to extinguish fires and protect life and property; and amendments to the disciplinary provisions of the ordinance.

      The Fire Services (Installation and Equipment) (Amendment) Regulations 1981 in- creases the fines in respect of various offences under the principal regulations from $2,000 to $5,000 in each case.

Ambulance Service

The Fire Services Department operates the government ambulance service with a strength of 1 273 in all ranks of uniformed staff, and 108 civilian employees. The service operates 159 ambulances from 13 ambulance depots or stations throughout the territory and from many fire stations. During the year a total of 253 754 calls, involving 329 060 people, were handled representing an average of 695 calls every 24 hours. This was an increase of 15.4 per cent in the number of calls compared with the total for 1980.

Appliances and Workshops

The Fire Services Department is equipped with more than 580 modern operational fire appliances, ambulances and vehicles fitted with up-to-date fire-fighting and rescue equip-


In 1981, 72 new or replacement appliances and units of various kinds were brought into service. Among the major appliances commissioned were twelve 16-metre hydraulic platforms, three 37-metre turntable ladders, four reserve heavy pumps and 22 ambulances. To maintain the fleet of applicances and other equipment, the department operates three workshops on Hong Kong Island, in Kowloon and the New Territories.


All recruits are trained at the Fire Services Training School at Pat Heung in the New Territories. The courses vary in content and last from eight to 26 weeks.

A total of 529 men successfully completed standard training, of which 21 were station officers, four were ambulance officers, 282 were firemen and 224 were ambulancemen.

The school also conducted assessment courses for firemen and ambulancemen grades for in-service appointment as acting ambulance officers (16), Ambulance Command instruc- tors' Course (12) and Fire Protection Courses for Senior and Station Officers (16).

The school also conducted basic fire fighting, ship fire fighting and breathing apparatus training courses for private organisations in Hong Kong and for the Macau Fire Brigade. Some 1 344 people attended these courses during the year.

Establishment and Recruitment

The uniformed establishment of the Fire Services Department at the end of 1981 totalled 5 482. In addition, the number of civilian staff employed by the department increased by 20 to 518.



       The services of 18 officers and 173 men were lost through death, retirement, resignation or dismissals during 1981. A number of recruitment exercises were held resulting in the appointment of 40 officers and 520 firemen and ambulancemen.

       In view of various recruitment difficulties experienced and the large number of current vacancies to be filled, a new system for recruitment was introduced. Since September 1981, the recruitment campaign became a continuous all year round effort. The campaign attracted a total of 828 applications for officer posts, 1 752 for fireman posts. Standards required for both grades are high and on average only about 10 per cent of all applicants are accepted for appointment.




Immigration and Tourism



As a result of the abolition of the 'reached-base' policy - which allowed illegal immigrants from China who reached the urban areas to remain in October 1980, coupled with new legislation which makes it compulsory for everyone over 15 years of age to carry a legal form of identity, there was a substantial reduction in the level of illegal immigration during 1981. No longer was Hong Kong an accessable haven for those in China attracted by its glitter. The daily average of illegal immigrants arrested on entry in September 1980 - before the new measures were introduced - was 450. During 1981, this average was reduced to 21 a day.


In efforts to halt the inflow altogether, plans were being made during 1981 for the issue of new computerised identity cards. The move was made as a counter-action against identity card forging syndicates which flourished during the year since the abolition of the 'reached-base' policy. The new cards will be more difficult to forge and suspect cards can be quickly checked. This in turn, will ensure that illegal immigrants who are remaining in Hong Kong by holding forged identity cards will eventually be detected and repatriated.

Because children were still being smuggled in, legislation was introduced in December which provided that the existing powers for the removal of unlawful entrants should apply equally to children. It was also stressed that illegal immigrants giving birth in Hong Kong would normally be returned to China.

At the same time, border defences against illegal immigration were being maintained and strengthened. The military presence was maintained at a high level and there are now more vessels at sea on anti-illegal immigration work than ever before.


Some 23.8 million people passed through immigration control points as they entered or left Hong Kong during 1981, as compared with 21.2 million in 1980, an increase of 12 per cent. Travel by local residents as well as increases in the number of visitors from overseas contributed to the increase, and to cope with it the Immigration Department increased its staff from 3 000 to 3 567 and greatly increased the number of its control points at the airport, the Macau wharf and the road crossing to China.

The Immigration Department

The work of the Immigration Department falls into two main streams - controlling people moving into and out of Hong Kong, and providing travel documents and registration facilities for local residents. Of the department's staff of 3 567, some 1 793 are members of the Immigration Service.

One effect of the strenuous efforts to combat illegal immigration, and to deal with the problems of Vietnamese refugees, was to greatly increase the heavy demands already being




      made on the Immigration Department. Its staff is being substantially increased and its organisation overhauled and streamlined.

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 7.7 million rail passengers between Hong Kong and China. This compares with 2.2 million passengers in 1977. The rapid growth in traffic is imposing great strains on the limited facilities at Lo Wu. Although it will be some years before new immigration control facilities at the rail terminus are completed, the situation should be improved in 1982 when additional temporary accom- modation will be available. A second immigration control point on the border was opened at Man Kam To in June 1981. This handles goods vehicles and passenger coaches travelling between Hong Kong and China. Other alternative routes for passengers to China are by ferry or hovercraft from a pier at Tai Kok Tsui, and by through train from the railway station at Hung Hom. Air services to China from Hong Kong International Airport also continued to expand.

       The temporary terminal for the Hong Kong - Macau ferry service was very heavily used, while work continues on a completely new and much larger permanent terminal. Traffic also increased substantially at the airport, where up to 85 immigration counters were regularly in operation during peak periods.

Personal Documentation

The demand for travel documents remained high during the year with over a million separate documents being 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. The programme of expanding and improving immigration branch offices continued during the year, and the Immigration Department was able to cope with this very heavy demand without the long queues at the branch offices which were common a few years ago.

      There was great increase in the need to replace lost and damaged identity cards held by Hong Kong residents. During the year some 381 567 requests for replacement of identity cards were dealt with as compared with 206 000 in 1980, an increase of 85 per cent. The need to replace so many more cards arose from the enactment of legislation in October 1980 to require Hong Kong residents to carry acceptable proof of identity and banning the employment of those without identity cards. To enable this extra workload to be absorbed with the minimum inconvenience to the public, the workforce of the Registration of Persons Office was greatly increased; the main Kowloon office for the issue of identity cards was moved to a new and more spacious one in Tsim Sha Tsui East, and other offices were improved and expanded as the opportunity occurred.

Vietnamese Refugees

There seems to be little prospect of an early end to the problem of Vietnamese boat refugees. Although there has been no resumption of large scale organised arrivals of refugees on the scale of the Huey Fong which brought 3 300 refugees to Hong Kong in December 1978, or the Skyluck which brought 2 600 in February 1979, the number of refugees arriving in Hong Kong during 1981 increased by 6.38 per cent over 1980.) The number of refugees in Hong Kong's care at the end of 1981 was 16 207, as against 24 065 a year earlier.



       Hong Kong has received much appreciated assistance by the traditional resettlement countries, the United Nations High Commission for Refugees and voluntary agencies who are caring for refugees. However, it is a matter of concern that the pace of resettlement is slowing down, and international interest waning, Hong Kong is striving to keep interna- tional attention on this continuing human problem, in order to ensure that the interna- tional community maintains a resettlement effort which matches the continuing outflow of refugees from Vietnam. The territory has consistently played its part in this process: In addition to providing temporary asylum for 109 155 refugees since 1975, it has allowed over 14 000 people from Indo-China to settle in the territory permanently since the end of the Vietnam war.

British Nationality Act 1981

In January 1981, the British Government introduced into Parliament a bill which sought to replace the British Nationality Acts of 1948 to 1965. The main purpose of the bill was to replace the composite citizenship of the United Kingdom and Colonies - created under the 1948 Act by three separate citizenships. British citizenship would be limited to those who have close personal connections with Britain and would be equated with the right of abode there.

      The bill was foreshadowed by a Green Paper published by the former (Labour) government in April 1977, and a White Paper published by the present (Conservative) government in July 1980. Under the Green Paper proposals, Citizens of the United Kingdom and Colonies (CUKCs) who had derived their citizenship from birth, naturalisa- tion or registration in Hong Kong, or from their descent from male citizens, were to be given British overseas citizenship in the same way as CUKCs associated with former British dependencies which had become independent.

      However, this proposal was modified following representations from Hong Kong and other dependent territories. The 1980 White Paper proposed the creation of a separate citizenship for people from the British dependent territories, to reflect the special constitu- tional relationship between them and Britain. It was eventually decided that this category would be described as British Dependent Territories citizenship.

The introduction of the bill caused considerable public interest in Hong Kong, and serious concern was expressed in some sectors of the community about the adverse effects of the bill on the rights of Hong Kong CUKCs. Some misgivings were also voiced that one of the objects of the bill was to distance Hong Kong from Britain.


      Throughout the bill's protracted passage through the Houses of Parliament - which was not completed until October 29, 1981 the Hong Kong Government as well as private organisations and individuals in the territory made representations to the British Govern- ment with a view to safeguarding the practical rights and interests of Hong Kong CUKCS. A number of improvements were secured as a result of these efforts. In particular, the bill was amended to give British Dependent Territories citizens, including those from Hong Kong, an entitlement to be registered as British citizens after five years' residence in Britain. (Under the original terms of the bill they would have had to apply for naturalisation, a discretionary process which involves the meeting of language and other requirements in addition to residence).

      During the lengthly parliamentary debates on the bill, repeated assurances were given by several ministers of the British Government that the bill would in no way alter the relationship and commitment of Her Majesty's Government to the people of Hong Kong and other dependent territories. Ministers also confirmed that British Dependent



Territories citizens would remain United Kingdom nationals in the sense that the UK can and will afford consular protection and represent their interests internationally.

      The British Nationality Act 1981 was passed into law after receiving the Royal Assent on October 30. With the exception of two sections dealing with procedural matters, however, its provisions did not come into force immediately and are not expected to do so for some months. During this time, detailed procedures will have to be worked out and promulgated to implement its provisions. It is expected that existing Hong Kong British passports will not need to be replaced until their due date of expiry.


Hong Kong received 2 500 000 visitors during the year (an increase of 10.3 per cent over 1981), and they spent an estimated $7,547 million on goods and services while in the territory. This was a value increase of 24.5 per cent over the previous year.

Of the major sources of visitors during 1981, the first five by volume were from Southeast Asia (21.9 per cent), Japan (20 per cent), the Americas (18.3 per cent), Western Europe (16.3 per cent) and Australia and New Zealand (9.1 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 Government 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, the association is represented by Cathay Pacific Airways in Southeast Asia, Japan, Western Australia, the United States, Bahrain and Dubai.

The HKTA aims to maximise tourism revenue by attracting more visitors from potential- ly high-yield market segments, or with special interests, who will stay longer and spend more on a greater variety of goods and services. In addition, the HKTA seeks to develop addi- tional high volume group business from markets with above average per capita expenditure. The association also 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.

      The supply of hotel rooms has been increased substantially, with the recent completion of a number of hotels in the Tsim Sha Tsui East area. During 1981, the average occupancy



rate of Hong Kong hotels was 88 per cent. At the end of 1981, the total number of hotel rooms was 16 666. During 1982, it is projected that five new hotels will be opened, providing 1 588 extra hotel rooms. To maintain occupancy rates and to develop business in the off-peak months, the association pursues a highly selective and flexible 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 business and pleasure travellers who stay here either on their way to or from China. Day tours to China have provided an extra dimension to a holiday in Hong Kong and the HKTA is actively promoting these tours. Close liaison with the Chinese tourism authorities is continuing.

Developing Facilities for Visitors

The objective of the HKTA's Product Development Department is to preserve and improve visitor facilities and to facilitate the development of new projects. These not only increase Hong Kong's attractions as a visitor destination, but also help to boost the length of stay of visitors a direct means of increasing revenue for the tourism industry.

The 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 1981, plans made in 1980 were implemented to upgrade the standard of tourist guiding in Hong Kong. Two refresher training courses were organised to improve the product knowledge and communication skills of tour co-ordinators already working in the industry so as to keep them fully abreast of the latest developments in Hong Kong. Three tour commentaries covering the Tram Tour, the standard Hong Kong Island Tour and the standard Kowloon and New Territories Tour - were revised and updated.

      The Fourth International Dragon Boat Races, held off the Wan Chai waterfront, attracted six overseas and 74 local teams. The event was broadcast 'live' by a local television station and was covered by 28 articles in overseas papers and other publications and 96 local press articles. A sum of $520,000 was raised for the Community Chest.

During 1981, other product development activities included the annual lantern carnivals in Victoria Park, Morse Park and Central District, the Seven Sisters Festival in the Queen Elizabeth Stadium, the Yuen Siu Festival, the Bun Festival on Cheung Chau Island, and weekly Chinese cultural shows presented free of charge in the atrium of the Landmark building in Central and the Ocean Terminal-Ocean Centre lobby.

Marketing Hong Kong

The selective marketing programme concentrates on developing high-yield markets 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 and in 1981, there were over 300 interna- tional conferences.

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 and Australia. In the United States, marketing activities were increased in the southwestern states. A greatly increased public relations



programme was initiated in North America with the aim of creating improved awareness of Hong Kong, especially in the middle and southwest and in the eastern seaboard.

      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.

A quantitative research project was conducted in Japan (along the lines of similar projects conducted in 1980 in Britain and Australia) to explore ways of attracting more high-yield visitors to Hong Kong. Other projects included a survey of the tailoring industry as perceived by the resident population. A compulsory gold marking scheme among the HKTA's jewellery member shops was being prepared for implementation in January 1982. In Japan with the help of the Japanese trade and consumer media, a programme was initiated to improve the potential travellers' understanding of Hong Kong's very varied attractions.

      Wholesalers were encouraged to market better quality tours, and new services for Japanese visitors such as a telephone enquiry service manned by Japanese speakers were introduced and publicised. The Royal Hong Kong Police Force's 24-hour hotline for Japanese visitors was also publicised in Japan.

       The increase in the number of air services between Hong Kong and London produced a growing number of visitors from Britain.

      During the year, major promotional campaigns were mounted in the United States, South America, Japan, Britain, West Germany, Italy, France, the Philippines, Singapore, Australia and New Zealand to increase interest in Hong Kong as an exciting tourist destination. These trade and consumer promotions effectively communicated the colour and culture of Hong Kong through film shows, audio-visual presentations and live cultural performances by craftsmen, chefs and entertainers. Approximately 2 400 travel industry executives visited Hong Kong in 1981 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. More than seven million printed items were produced in 1981 for distribution in Hong Kong and overseas, in as many as 11 languages. They in- cluded 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. A new training film on the subject of courtesy was produced for showing to tourism industry personnel.

      As in previous years, events such as the International Dragon Boat Races, the Hong Kong Arts Festival, the Hong Kong International Film Festival, the Seven Sisters Festival, the Mid-Autumn Festival and the Festival of Asian Arts attracted wide international publicity and HKTA arrangements for the media greatly increased the scope and effectiveness of the publicity generated. About 700 media visitors were the guests of the HKTA during the year.



Public Works and Utilities

     THE government's largest single item of expenditure is normally that for public works, covering as it does 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 1981-2, approved provision of funds for capital works was $4,538 million, some 18 per cent of the government's total expenditure. Of this sun, $889 million was to be spent on roads, $543 million on water supplies and $42 million on public housing constructed by the Public Works Department (PWD) in addition to that built by the Housing Authority.

      In view of the wide-ranging changes in the pattern of District Administration, the PWD established an Urban Area Development Organisation, under which one regional office and six divisions were set up in the urban area. Each division comprises a small multi- disciplinary team primarily responsible for the co-ordination and monitoring of works, both public and private, in the district allocated to it.

The organisation also undertook the co-ordination of clearance programmes for the urban area to ensure that their implementation is in proper sequence and on schedules compatible with housing and financial resources.

In September a Secretary for Lands and Works was appointed as a first step towards a major reorganisation which will affect the PWD and include the establishment of a new Lands Department.


The building boom continued into 1981 but the inflationary pressures on the industry stabilised to some extent, and the rapid acceleration in building costs experienced in the period 1977 to 1979 eased, due mainly to a levelling-off, and in some cases a lowering, of basic material prices. During the 12 months to mid-June 1981 the cost of labour increased by 16 per cent compared with 15 per cent and 25 per cent for the corresponding periods of 1979-80 and 1978-9 respectively. Basic materials increased by 7.5 per cent in cost, (compared with 20 per cent and 58 per cent), and tender prices increased by 11 per cent (compared with 24 per cent and 37 per cent). PWD expenditure on buildings for the same period rose by 41 per cent over the previous corresponding period, representing in real terms an increase of about 27 per cent in building operations.

Among the more notable projects opened in 1981 were the Prince Philip Dental Hospital at Sai Ying Pun, by the Duke of Edinburgh on March 24, and the South Kwai Chung Hospital, providing 1 336 beds for mental patients, by the Governor on October 15.

Other projects completed include an air mail centre at Hong Kong International Airport; markets at Tin Wan, Ngau Tau Kok and Tuen Mun; medical clinics at Lei Muk Shue, Sha



Tin, Ngau Tau Kok and Tuen Mun; a schoolchildren's dental clinic at Argyle Street, Kowloon; a Medical and Health Department laundry at Pik Uk; a divisional fire station and command headquarters at Sheung Wan; a swimming pool complex at Sha Tin; a primary school at Tuen Mun; a community centre at Sheung Shui; a sports ground at Tuen Mun; and refurbishment of the old terminal building at the airport.

      Projects under construction at the end of 1981 included an indoor stadium at Hung Hom; a teaching hospital and quarters at Sha Tin; multi-storey car parks at Yau Ma Tei and the airport; a 'half-way house' and pre-release centre at Lung Cheung Road; expansion of the drug addiction treatment centre on Hei Ling Chau; community centres at Yau Ma Tei, Lai Chi Kok and Tai Po; sports grounds at Cheung Chau and Sai Kung; a market and government offices at To Kwa Wan; a new Supreme Court at Queensway; and a hockey ground at King's Park.

At the end of the year projects at the planning stage included cultural complexes at Tsim Sha Tsui, Sha Tin and Tuen Mun; an extension and improvements providing 660 additional beds at Queen Mary Hospital; a 1 466-bed hospital at Tuen Mun; 18 primary and secondary schools at various locations; swimming pool complexes at Tuen Mun and Tsuen Wan; indoor games halls and swimming pools at Lai Chi Kok and Wan Chai; and numerous other educational medical, recreational and amenity projects.

       In view of continuously rising fuel costs the department is particularly interested in the energy management of government buildings. Apart from incorporating energy conserva- tion measures in the design of new building services installations, the government has employed a consultant to make proposals on energy management in the Queen Elizabeth Hospital and the Kowloon General Post Office building.

       Solar heating panels installed in a Stanley village bathhouse for heating water have proved a success. As a result of this, the use of solar panels for water heating at Hei Ling Chau Drug Addiction Treatment Centre and at Shek Pik Maximum Security Prison are planned, the three similar installations at other penal establishments are also proposed.

      The department also assisted in reviewing the electricity consumption patterns in government buildings which resulted in the installation of power factor correction equipment to new and existing government buildings to reduce electricity expenditure.

The construction and leasing of new premises for public use created an expansion of maintenance works, with an estimated expenditure some 26 per cent greater than for the previous year. The leasing of new accommodation also resulted in a forecast 500 per cent increase in expenditure on fitting-out work during the year.

Geotechnical Control

A new research study of the behaviour of slopes in Hong Kong was initiated during 1981 to provide a better understanding of the factors which control the stability of slopes and to improve predictions of safe angles for man-made slopes.

The routine activities of the Geotechnical Control Office of the PWD included geotech- nical studies on many development areas, ranging in size from less than one hectare to 15 000 hectares; the checking of slope-related aspects of the design of new government projects to ensure safety; the detailed investigation of the stability of existing slopes throughout the territory; preventive works on old poorly-constructed fill slopes; and the review and updating of geotechnical standards for Hong Kong.

In the PWD materials laboratory, more than 165 000 tests on various construction materials were carried out and 53 500 metres of boreholes were drilled for government projects as part of the site investigation contracts managed by the office.



      Land Development In Kowloon, filling of a site at Sam Ka Tsuen was completed with about 0.6 hectares being formed for temporary recreational use.

      On Hong Kong Island, reclamation by public dumping continued at Quarry Bay, where about 4.5 hectares were formed for future roads and industrial use. Reclamation at Western District also started with about two hectares being formed for future cargo handling area, roads and industrial use. At East Tamar Basin, 1.5 hectares of land were reclaimed as part of the plan for the reprovisioning of Lei Yue Mun Fort and Sham Shui Po Camp. At Aberdeen, 0.5 hectares of land were formed for a future road system.

In the New Territories, reclamation for the third and final stage of Tai Po Industrial Estate started and a further 0.5 hectares of land were formed for industrial use.

       The initial engineering feasibility study for urban development in the northern part of Lantau Island was completed. The study area extended from the north-eastern tip at Kap Shui Mun to the south-western district of Tung Chung. Civil engineering design studies on the possible replacement airport started at Chek Lap Kok Island.


The seven contract quarries and the two managed by the government produced some 15.1 million tonnes of aggregates during 1981. The contracts for the quarries at Lam Tei and Shek O were extended a further 10 years to maximise extraction from these two sites. A second rock crushing site contract was also let.

       The importation of aggregates into Hong Kong from a new private quarry at Woo Shek Koo in China started in mid-1981.

      With the Government Sand Monopoly being discontinued in June, marine and river sand brought in from China is now being sold directly by the importers while manufactured sand is sold by the quarry contractors. However, the Sand Ordinance, which provides for the protection of Hong Kong's reserves as well as the control of imports, remains in force.

Port Works

On Hong Kong Island, construction of 185 metres of seawall with pumphouses was complet- ed at Tamar East Basin. At Quarry Bay, work on the construction of 675 metres of seawall continued and a new contract was let for the construction of another 410 metres. Construc- tion on 900 metres of seawall superstructure with pumphouses in Western District was in progress, and work on the construction of 510 metres of seawall at Aberdeen continued.

In Kowloon, construction of 400 metres of seawall superstructure for Cheung Sha Wan Reclamation was in progress.

       In the New Territories, construction of the breakwater superstructure for the new Cheung Chau typhoon shelter was in an advanced stage and construction work com- menced on the seawall and pier for the cattle quarantine depot at Tsing Yi. New contracts were let for the construction of piers at Sai Kung town, Joss House Bay and Tso Wo Hang.

Drainage and Anti-pollution Projects

Flood protection to urban and rural areas is afforded by stormwater drainage culverts and nullahs. Sewage from developed areas is, in general, collected by separate sewage systems and subjected to various modes of treatment depending on the quality of effluent acceptable in the waters where it is discharged. Sewage from rural areas where sewage systems are not provided is often disposed of through separate sewage treatment facilities such as septic tanks, Imhoff tanks and package sewage treatment plants.



       An intercepting sewer at Kowloon Bay Reclamation was completed, while construction of a screening plant at Central, a stormwater box culvert in Western Reclamation, and a sewage treatment works at Tai O started during the year.

Construction of sewage treatment works at Yuen Long, Tuen Mun, Sha Tin and Tai Po, sewage pumping stations at Hung Hom and Tsuen Wan, and a long submarine sewer outfall off the airport runway continued to progress satisfactorily. Detailed designs for the first stage of treatment works for northwest Kowloon continued.

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-1980 was completed, and a technical report was prepared on the significance of the results, pollution trends and recommended action.

       As regards solid waste management, about 1 408 000 tonnes of solid waste were treated and disposed of at the five controlled tipped sites at Sai Tso Wan, Ma Yau Tong, Siu Lang Shui, Shuen Wan and Junk Bay. During the year consultants were engaged to study the disposal of toxic, hazardous and difficult wastes in Hong Kong, to ensure that adequate arrangements are made and facilities available for dealing with such wastes. Consultants were also being considered for the development of a computer-based waste management planning system which will be used in the formulation and implementation of waste disposal plans.

Water Supplies

      For the second year in succession rainfall was below average, with a consequent reduction in the quantity of water in storage. Additional resources were introduced by reactivating the Lok On Pai desalting plant and obtaining additional supplies from China. These measures were, however, inadequate to maintain a full supply and restrictions were imposed in October.

        On October 1, 1981 - before the start of the restrictions - there were 255.96 million cubic metres of water in storage, compared with 380.67 million cubic metres on the same day in 1980. Rainfall for the year was 1 660 millimetres compared with the average of 2225 millimetres.

       In anticipation of a possible need to resume operation of the Lok On Pai desalting plant, preparations started early in the year to recommission progressively each of the six units of the plant from a 'care and maintenance' state. Reactivation was completed by the end of September and the plant was in full operation - producing some 182 000 cubic metres of fresh water a day - by early October.

Also on October 1, 1981 the combined storage in Hong Kong's largest reservoirs, High Island and Plover Cove, was 197 million cubic metres. The salinity of the water at High Island remained at about 25 milligrams per litre while at Plover Cove the salinity varied from 86 milligrams per litre at the beginning of the year to 149 milligrams per litre at the end. A total of 211 million cubic metres of water was piped from China during the year, including an extra supply of 30 million cubic metres provided in response to a request to the Guangdong provincial authorities for additional water in the light of the low reservoir storage position.

      Water restrictions helped maintain consumption at the 1980 level. A peak of 1.62 million cubic metres a day was reached, an increase of 1.3 per cent over the 1980 peak of 1.6 million cubic metres a day. The average daily consumption throughout the year was 1.39 million cubic metres, the same as in 1980. A total of 507 million cubic metres of potable



water was consumed, compared with 508 million cubic metres in 1980. In addition, 84 million cubic metres of salt water for flushing were supplied, eight per cent more than in 1980.

      During the year, investigation and design for the reception and distribution systems for future increases in the water supply from China was completed and work started for most of the supply and construction of essential components. Planning studies were completed on improvement of water supplies to Shek O, Aberdeen, North Point, Tai Po and Sai Kung; on increasing the capacities of Tuen Mun Treatment Works and the principal distribution mains supplying Yuen Long, Pat Heung, Shek Kong and San Tin areas; and the introduction of a new cross-harbour submarine main between the Kowloon peninsula and Hong Kong Island. Other studies in hand included those for the improvement of water supplies to Chai Wan, Shau Kei Wan, Quarry Bay and Tsuen Wan; new treatment works at Sai Kung and Au Tau; and for interim water supplies to Junk Bay and Ma On Shan.

      Design and construction work progressed satisfactorily on the new supply system for Sha Tin, Tuen Mun and Tsuen Wan new towns, together with those for the Tai Po Industrial Estate, Yuen Long and Tsing Yi. On Hong Kong Island, works continued on the im- provement of the water supply to Pok Fu Lam, Wong Chuk Hang, Stanley and Repulse Bay. In the New Territories, works were in hand to improve the supplies to Sheung Shui, Sai Kung, Tai O, Cheung Chau and Cheung Sha. Construction work on the new tunnel and pipeline system, for the East River Scheme, also progressed well.

The computerised water billing and information system was successfully implemented in June, with the transfer of all domestic and other consumers accounts to the system being completed.


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.

The Hongkong Electric Company's (HEC) Ap Lei Chau Power Station has two 60 MW and seven 125 MW units in operation, bringing the total generating capacity of the station to 1 061 MW including the two gas turbines of 11 MW and 55 MW installed for emergency purposes. All units are oil fired.

The transmission system operates at 132 kV and 66 kV, whereas distribution is effected mainly at 11 kV and 346 volts. With the exception of a few short lengths of 132 kV overhead transmission lines, the transmission and distribution system is all underground.

The electricity supply is alternating current at 50 hertz, 200 volts (single phase) and 346/200 volts (three-phase).

In order to cater for the rising demand for electricity, a new power station is being constructed on Lamma Island. The station will initially house two 250 MW generating sets; the first will be fully operational in 1982, and the second in early 1983. The significant feature of the project is that the generators will be capable of being fired by either oil or coal. It is anticipated that the first two units will fire 100 per cent coal, with an oil firing facility for start-up and stand-by. Power will be transmitted via underground and submarine cables at 275 kV to Hong Kong Island.



       In April, 1981, the first stage of a far-reaching project to interconnect the supply systems of the Hongkong Electric and China Light and Power (CLP) by cross-harbour submarine cables was inaugurated. For the first stage development, six 120 MVA/132 kV submarine cables were installed. Initially only two of the six cables were connected from HEC's North Point substation to CLP's temporary substation at Hok Un through two 132 kV/66 kV 80 MVA transformers. In later stages the interconnection's capacity will be increased to three 240 MVA circuits. Owing to the establishment of this cross-harbour link, power supply can be adjusted to meet demand on an economical basis.

China Light and Power Company Limited supplies electricity to Kowloon and the New Territories, and a number of outlying islands including Lantau. Generation of electricity is carried out by CLP and its associated companies, Peninsula Electric Power Company Limited (PEPCO) and Kowloon Electricity Supply Company Limited (KESCO). Both PEPCO and KESCO are financed 60 per cent by Esso and 40 per cent by CLP. PEPCO owns the power stations at Tsing Yi 'A' (762 MW), Tsing Yi 'B' (800 MW) and Hok Un 'C' (240 MW). Four gas turbine units of KESCO (264 MW) are housed at Hok Un while another four sets (240 MW) were commissioned at Castle Peak 'A' station during the year. Operation of plants owned by PEPCO and KESCO is in the hands of CLP, which also has its own stations Hok Un 'A' and 'B' (total 350 MW). The combined capacity of CLP, PEPCO and KESCO at the end of 1981 was 2 656 MW.

Work on Castle Peak 'A' station, the new power station being built by KESCO at Tap Shek Kok, proceeded smoothly during the year. The station will have four dual coal/oil- fired 350 MW units in addition to the gas turbines commissioned in 1981. The first 350 MW unit in the station will be commissioned in 1982, followed by another unit in each of the subsequent three years.

A decision was made during the year to build another power station, Castle Peak 'B' station, adjacent to the 'A' station to cope with the forecast increasing demand for power in the future. Castle Peak 'B' station will have four 660 MW coal-fired units, scheduled to be commissioned between 1986 and 1989. A new company, Castle Peak Power Company Limited (CAPCO), has been incorporated to own the station. Shares in this new company are held 60 per cent by Esso and 40 per cent by CLP, the same arrangement as adopted for PEPCO and KESCO.

Transmission is carried out at 132 kV and kV, while distribution is effected mainly at 33 kV, 11 kV and 346 volts. The supply is 50 hertz alternating current, normally at 200 volts single- phase or 346 volts three-phase. For bulk consumers, supply is available at 33 kV and 11 kV. Work continued during the year on the staged development of an extra high voltage transmission system to transmit power from the Castle Peak power stations to the various load centres. The new network, at 400 kV, will comprise 87 kilometres of double-circuit overhead line encircling the New Territories, 14 kilometres of cables and six extra high voltage substations. The first phase of the network between Castle Peak and Tai Lam Chung was commissioned during the year, permitting the transfer of power from the gas turbine units at Castle Peak 'A' station to the 132 kV system.

       The company's system is also interconnected with that of the Guangdong Power Company of China and electricity is exported to Guangdong Province each day. The interconnection results in better utilisation of the company's generation plant during off-peak demand period and provides the facility to feed power from Guangdong to the company's system when necessary.

       Main electricity statistics for 1981 as well as electricity sales figures for 1979 to 1981 are shown in Appendix 34.



The two major electricity companies are the primary users of fuel oil, accounting for over 50 per cent of Hong Kong's total import of petroleum products in 1981. To reduce the repercussion of supply restrictions, the government took measures at the end of 1980 to store a temporary reserve of fuel oil, for electricity generation, in two large tankers moored in local waters. The first tanker, Straits Dahlia arrived in Hong Kong on December 31, 1980, with a cargo of 74 000 tonnes of fuel oil. The second tanker, Seabreeze was brought in on March 13, 1981, with a cargo of 123 000 tonnes of fuel oil. These two tankers, with a total reserve of about 200 000 tonnes of fuel oil were moored west of the Ninepin Group of islands and strict precautions against pollution were taken. This form of storage was used until the end of 1981, when land tanks at the new power stations on Lamma Island and at Castle Peak became available for long-term storage.

The installed capacity of the Cheung Chau Electric Company is 8 MW.


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, Yau 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 while Hong Kong Island is supplied by four submarine gasmains across the harbour.

The gas is produced in eight cyclic naphtha reforming plants, with a total installed capacity of 1 614 119 cubic metres per day. Two units of naphtha plant are currently under construction and, when commissioned early in 1982, will add a total of 679 629 cubic metres per day to the installed capacity of the station.

      Towngas is distributed at a heat value of 17.27 MJ/m3 and a specific gravity of approximately 0.56. Gas is sold on a thermal basis (one therm = 105.5 megajoules). Towngas sales in 1981 amounted to 38.2 million therms (four million gigajoules) compared with 33.4 million therms (3.5 million gigajoules) in 1980.




Communications and Transport

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 1981. Despite the completion of a number of major highways projects including the Wong Nei Chung Gap Road/Stubbs Road flyover and the Hill Road flyover on Hong Kong Island, the East Kowloon Way in Kowloon and the Tsuen Wan Bypass Stage I in the New Territories, traffic congestion still remained a problem. The question had become no longer whether restraint measures on road use were necessary but what would be the most effective and least inconvenienced form they should take, notwithstanding the completion of further major highways projects, the opening of the Tsuen Wan Extension of the Mass Transit Modified Initial System and the introduction of the Kowloon-Canton Railway electrified service in 1982.

      Detailed planning on the Island Line of the Mass Transit Railway and the light rail system between Tuen Mun and Yuen Long also continued during the year. Studies on major transport problems were tackled with equal zeal. These include a further cross- harbour link to the new development areas in Junk Bay and Ma On Shan.

In order to solve the many immediate, medium and long term problems of a highly technical and contentious nature, a new Transport Branch, headed by a Secretary for Transport, was set up in the Government Secretariat. At the same time the organisation of the Transport Department was put under review to provide it with sufficient resources and technical support to co-ordinate the implementation of policies.

      Fare increases were granted to major bus and ferry companies and the tramway during the year to offset against increasing operating costs. The increase of bus fares gave rise to heated public reaction and had led to a full review on the cost effectiveness of the companies being undertaken by government with public representation. The purpose of the exercise was to examine ways for economy in the bus operations to be made, with due regard to acceptable standards of service and passenger safety.

Government made an announcement in September to change the status of the Kowloon- Canton Railway from a government department to a public corporation. This was intended to enable the modernised railway - which will start its first phase of electrified services up to Sha Tin in the spring of 1982 - to be run more efficiently according to commercial principles. A transitional Kowloon-Canton Railway Corporation Board will be set up to undertake the necessary preparatory work leading to the eventual setting up of the substantive Kowloon-Canton Railway Corporation before the end of 1982 when the railway would be fully electrified.

Public Transport

The density and variety of Hong Kong's public transport services are probably unequalled



anywhere. Transport services include a high-speed urban electric railway operated by the Mass Transit Railway Corporation and a suburban railway - the British section of the Kowloon-Canton Railway which is being electrified; a dense network of more than 300 bus routes serving all parts of Kowloon, the New Territories, and the islands of Hong Kong and Lantau; one of the world's largest ferry fleets operating vehicular and passenger services across Victoria Harbour and linking Hong Kong Island with the outlying islands and parts of the New Territories; a large fleet of 14-seater public light buses operating over some 120 established routes with freedom to adjust their fares, frequency and routes in response to demand; a fleet of 11 061 taxis, 891 of them operating solely in the New Territories; a slow but very high capacity tramway service operating along Hong Kong Island's main urban corridor; and a funicular cable tramway ascending one of the world's steepest gradients to Victoria Peak. All except the railways are operated by private companies.

      During 1981, both major bus companies, both major ferry operators and the tramway were granted approval to raise their fares. Gains in operating efficiency were no longer sufficient to cover rapidly rising costs, due to loss of passengers to the MTR. The easing of pressure on these services has, however, brought benefits in terms of some reduction in overcrowding and waiting times. Despite recent increases, the fares still remain cheap by comparison with other major cities.


The government has granted franchises on a route basis to three bus companies which, together, carry an average of 3.4 million passengers a day.

In 1981 there was a continued growth in the number of motor vehicles in use, and increased road congestion caused a consequent deterioration in bus operating speeds in many traffic corridors. To maintain mobility for the majority of commuters who use public transport, the government has engaged consultants to examine and plan a number of traffic management schemes incorporating priority for buses with the objective of reducing bus journey times and improving service reliability.

The Kowloon Motor Bus Company (1933) Limited (KMB) is the largest of the three franchised companies, with a fleet of 2 390 buses operating over routes in Kowloon, the New Territories and, jointly with China Motor Bus Company Limited, through the Cross-Harbour Tunnel. In 1981, the fleet carried 933 million passengers and travelled 134 million kilometres. Fares are charged according to route distance and range from 50 cents for short urban routes to $4 for the longest cross-harbour route. A higher scale of fares applies to the 15 express coach services, two of which serve Hong Kong International Airport and to special recreational services.

The introduction of higher fares in April, and a reduced rate of bus service expansion in the first half of the year, had the effect of reducing bus patronage - particularly on the express coach services and cross-harbour routes - bringing a significant reduction in the level of overcrowding. KMB's expansion in 1981 continued to be heavily concentrated on serving the rapidly developing new towns in the New Territories. In 1981, eight new routes were introduced, requiring an additional daily allocation of 52 buses.

The China Motor Bus Company Limited (CMB) operates 86 bus routes on Hong Kong Island and 16 cross-harbour routes jointly with KMB. In 1981, the fleet carried 287 million passengers and travelled 43 million kilometres. Development of the company's services during most of 1981 was confined to increases in fleet capacity by replacement with new larger buses. But, during the last quarter, three new routes and frequency increases on one



routes were implemented by allocating an additional 16 daily buses to services. For much of the year, maintaining daily vehicle availability at a level sufficient to satisfy operating schedules proved difficult.

In April, after adverse public reaction and a prolonged enquiry, both CMB and KMB were granted approval to raise their fares. The 40 per cent increase for KMB was an interim measure while a full review was undertaken by government, with public representation, into the cost effectiveness of the company's operations. To implement a lower level of increase than was sought by the company, the government also made a $40 million payment to the company to cover the estimated shortfall in KMB's operating account in 1981. The new fare scales brought KMB's urban fares up to a range of 50 cents to $1. CMB's fares were raised by 30 per cent, also in April, bringing urban fares up to a range of 60 cents to 80 cents, with suburban and express fares ranging from 60 cents to $2. CMB's operations are also under government review.

On Lantau Island, the New Lantao Bus Company Limited operates a fleet of 59 buses over six franchised routes which, during 1981, carried an average of 7 031 passengers each weekday. Recreational demand increased this figure to an average of 15 333 on Sunday and public holidays. To cope with the high peaked demand, the company increased its double-deck fleet from two to six in 1981 and the double-deck bus service was extended to Shek Pik in July.

The franchised bus services are supplemented by a fleet of 2 019 non-franchised public buses, which are operated for hire on a group contract basis, as well as private buses operated by private housing developments or factories.


The size of the public light bus fleet has been fixed at 4 350 since May, 1976. Most of these 14-seater minibuses (PLBs) are individually owned, and in 1981, they carried an estimated 1.46 million passengers a day. 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 with the added advantage of being able to stop anywhere along the route.

Normally, public light buses are free to operate anywhere. However, they tend to concentrate on the main bus and tram corridors, delaying the high-capacity carriers by their 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 are not permitted to stop and they are prohibited from entering certain areas and from operating on some limited access main highways, such as the Tuen Mun Road and the East Kowloon Way.

Since 1972, PLB owners have been invited to apply to operate a growing number of fixed 'maxicab' routes, on which frequency, fares and stopping places are controlled by the government and a measure of route protection is offered. More 'maxicab' routes are planned for introduction throughout the territory to divert minibus operations into a complementary feeder role and to serve areas which are inaccessible to large buses or where demand is inadequate to justify a full bus service. By the end of 1981, 57 maxicab routes utilising 374 PLBs were in operation throughout the territory, carrying about 139 000 passengers daily.

A fleet of 924 private light buses is also maintained by schools, private housing developments or commercial enterprises for their own needs.




The Hongkong Tramways Limited operates a tram service on five overlapping routes over 30 kilometres of track along the densely populated north shore of Hong Kong Island. During 1981, the fleet of 163 double-deck tramcars and 20 single-deck trailers carried a daily average of 434 419 passengers. A fare increase in August, which raised the flat fares from 30 cents for adults and 10 cents for children to 50 cents and 20 cents respectively, had a relatively small effect on patronage as bus fares on parallel routes had been raised earlier in April.

The Peak Tramways Company Limited has operated a cable-hauled funicular railway between Garden Road and Victoria Peak on Hong Kong Island since 1888. The service stops at five intermediate stations, ascends to 397 metres above sea level on the 1.4- kilometre long line, and in places negotiates a gradient of one in two. It is popular with tourists, and provides a direct route to the Central District for residents of the Peak. The service carried 5 745 passengers a day in 1981 at a flat fare of $2 for adults and $1 for children.

Aerial Ropeways

An aerial ropeway operating in Ocean Park carries visitors between the park's lowland and headland sites. There are 240 cars on the system with a total carrying capacity of 1 440 persons. In 1981, it carried an average of 3 203 passengers a day.


Ferry services in Hong Kong are, for the most part, provided by two major companies - the Hongkong and Yaumati Ferry Company Limited (HYF) and the Star Ferry Company Limited. HYF operates a varied fleet of vessels on 17 cross harbour services, (three of which carry vehicles), 15 services to outlying districts, and two coastal ferry services along the north shore of Hong Kong Island and the western New Territories. The company has a fleet of 92 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.

Since the opening of the Modified Initial System of the Mass Transit Railway (MTR) between Central District on Hong Kong Island and Kwun Tong in Kowloon in February 1980, cross-harbour passenger ferry services operating within the MTR 'catchment' area have suffered significant losses. Passenger traffic on HYF's cross-harbour services was reduced by 11 per cent in the year ending February, 1981, as compared to the same period in 1979-80, while Star Ferry traffic showed a reduction of 21 per cent. On the other hand, with the deteriorating road congestion on the northern shore of Hong Kong Island and the approach roads to the Cross Harbour Tunnel, there is a growing demand for coastal ferry services and cross-harbour vehicular ferry services. New coastal services between Chai Wan and Central District on Hong Kong Island, and between Tuen Mun and Jordan Road on the mainland were introduced in September, 1981, while a new vehicular service between Sai Wan Ho and Kwun Tong is also being planned. In the face of the increased competition across the harbour, HYF is also continuing to develop a wide range of services to outlying districts and new towns to cater for commuter traffic and recreational demand.

      Due to rising operating costs, both ferry companies raised their fares on July 1,1981. Cross-harbour adult fares are now up to 60 cents on Star Ferry services, and 80 cents on the shorter HYF routes. HYF's longer routes charge ordinary-class fares up to $3 on weekdays



and surcharges are made for the air-conditioned de luxe class, and high-speed 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.


Hong Kong is served by two types of taxis: urban taxis, which can operate throughout the territory, and New Territories taxis which are restricted to rural areas of the New Territories.

      In July, the government confirmed that the policy of increasing the number of taxis by quarterly public tenders would continue, and new targets were set. The number of urban taxis will be increased from 10 000 to 12 000 by 1983, and the number of New Territories taxis will be increased from 838 to 3 000 by 1984. At the end of 1981, 10 170 urban taxi and 891 New Territories taxi licences had been issued.

       The fares for both categories of taxi have remained unchanged since the last fare increase was implemented in October, 1980. The fare for Hong Kong and Kowloon taxis is $4 for the first two kilometres and 50 cents for each subsequent 0.25 kilometres. For New Territories taxis, the first two kilometres cost $2.40, with 30 cents for each subsequent 0.25 kilometres.

Mass Transit Railway

The Mass Transit Railway is operated by a wholly government-owned corporation. In 1981, the railway system comprised the 15.6 kilometres Modified Initial System (MIS) of network with 15 stations. The system, which links Central District with Kwun Tong in East Kowloon, reached an average weekday ridership of about 700 000 at year end.

      To meet a steady increase in demand, the corporation increased its entire fleet size from four to six-car trains during the year, and in October introduced its first eight-car combination.

      A fare adjustment was undertaken during the year which resulted in all single adult fares being increased by 20 cents. At the same time, stored value tickets were introduced in denominations of $25, $50, $100 and $200. The stored value tickets provided the corporation with fare flexibility. The $50, $100 and $200 tickets were able to be purchased at a discounted price and it was possible to provide passengers using them with a reduction in fares during the off-peak periods. All stored value tickets also gave a last ride bonus. The effect of all these price adjustments was that the cost of an average journey on the MTR remained about the same but a greater incentive was offered to travel in off-peak periods. Half price child/student single ride tickets and stored value tickets were also brought into use. Stored value type tickets proved to be very popular and by the end of the year nearly 50 per cent of passengers were using these tickets.

During the year the record of trains arriving at their destinations within two minutes of the scheduled time was maintained at 98 per cent.

The MIS which comprises 15 stations - 12 underground and three overhead - started full operation in February 1980. 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 budgetted construction cost of $5,800 million. In 1981, a total of 223 million people were carried on the trains which operated 19 hours a day, seven days a week at basic frequencies of two and a half minutes during peak hours and



three to five minutes during off-peak periods. While the weekday passenger volume aver- aged around 700 000, more passengers were carried on Saturdays while Sundays and public holidays had the lowert patronages. A record figure of 996 000 passengers was carried on Thursday, November 24, 1981 as a result of extended operation over Christmas Eve. About 40 per cent of the passengers are carried across the harbour. It is anticipated that the MIS will carry up to one million passengers a day by the mid-1980s.

High interest rates on commercial borrowings prevailed throughout the year and had a severe financial effect upon the corporation in view of its loan/equity gearing of 8:1. Largely because of this the government agreed to purchase in cash a further $3,500 million equity in the corporation which reduced the loan/equity gearing to a more normal ratio of 2:1.

      The Tsuen Wan Extension (TWE) is expected to start service in May 1982 - some six months ahead of schedule - and will provide a link to the growing industrial town of Tsuen Wan in West Kowloon. It will be 10.5 kilometres in length and branches from the Modified Initial System at the northern end of the Nathan Road. It will incorporate 10 stations. The cost of the extension is $4,100 million and it is anticipated that it will be completed on budget.

After opening of the Tsuen Wan Extension it is anticipated that the combined MIS/TWE system would attract at least 1.1 million passengers daily and that would grow to 1.8 million by the mid-1980s.

As was the case with the MIS, 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 MIS and TWE are expected to be repaid by 1992-3.

Three property developments being undertaken by the corporation were completed during the year. These were commercial developments above Admiralty and Chater stations, and a residential and commercial development above its depot at Kowloon Bay. Work on four others -- at Argyle and on the TWE at Kwai Fong and Kwai Hing and above the depot - continued.


A great deal of work was undertaken during the year in designing a third underground line for Hong Kong Island - to be called the Island Line. Government gave the go ahead to proceed with the construction of this line in December 1980. Several pre-works contracts were let during the year with the first major civil engineering contracts being awarded in December. The bulk of the major civil engineering contracts will be awarded during the first quarter of 1982.


      The line along the island's crowded northern shore - will link Chai Wan with Western Market and will feature 14 stations. It is estimated that the cost of the Island Line in 1980 dollar terms, not including interest charges, will be $7,000 million.

      The financial approach for the construction of the Island Line will be different from that followed on the MIS and TWE. It is intended that property development profits will be used to pay for the construction cost and that the remainder of the money necessary will come from government equity and Export Credit Finance in Hong Kong dollars and at fixed rates of interest. Fourteen major property development sites have been earmarked and, during the year, eight agreements were signed with property developers. The largest site is at Tai Koo Shing where a development featuring both private and government housing will be constructed to accommodate 40 000 people. It is anticipated that the majority of the Island Line between Chai Wan and Admiralty will be completed in mid-1985 with the remainder from Admiralty to Western Market in 1986.



       Much of the inconvenience caused by the construction of the Tsuen Wan Extension was overcome during the year, but close liaison continued to be maintained between the corporation and various government departments concerning disturbances due to con- struction work. This co-operation is also being extended to include work on Hong Kong Island.

Compensation payments made during the construction of the Modified Initial System totalled approximately $84 million while for the Tsuen Wan Extension the figure at the end of 1981 was $8.6 million.

The MIS is served by a network of feeder bus services terminating at stations. Feeder bus termini were constructed at Kwun Tong, Choi Hung, Diamond Hill and Admiralty stations, while temporary on-street termini were established near Kowloon Tong, Argyle and Chater stations. By the end of 1981, there were 17 feeder bus services serving Kowloon and the New Territories and nine on Hong Kong Island. Many thousands of passengers were carried on those feeder bus services, although it is estimated that less than 50 per cent of them also used the MTR.

       Similarly, along the TWE, feeder bus laybyes and termini are being constructed at MTR Lai King, Kwai Fong, Kwai Hing and Tsuen Wan stations. During 1981, a transport study was undertaken by the government to work out a strategy to develop an integrated public transport services along the TWE corridor.

       Purpose-built feeder bus termini are also being planned for stations on the Island Line, including Sheung Wan, Tin Hau, Shau Kei Wan and Chai Wan stations.

To encourage motorists to make use of the MIS, multi-storey car parks were planned at Kowloon Tong and Choi Hung MTR stations where the demand for park-and-ride facilities was anticipated. Along the TWE, multi-storey car parks were planned at Kwai Fong and Tsuen Wan stations. On the Island Line, preliminary plans indicated the need for park-and-ride facilities at Tin Hau and Shau Kei Wan stations, in addition to the existing multi-storey car parks near Sheung Wan and Admiralty stations.


The planning, design and construction of new roads, as well as improvements to existing road networks, proceeded satisfactorily in 1981; $621 million being spent on major projects and $116 million on improvements and maintenance. The total length of roads in Hong Kong maintained by government now stands at 1 182 kilometres, of which 351 kilometres are on Hong Kong Island, 353 kilometres in Kowloon and 478 kilometres in the New Territories.

On Hong Kong Island, works completed during the year included the Wong Nai Chung Gap Road/Stubbs Road flyover; the new North Point vehicular ferry pier; the Hill Road flyover; the improvement of Victoria Road near Bisney Road; new roads and drains for the non-departmental quarters at Mount Butler; and the Stanley bus terminus. Good progress was achieved on the interim improvement work to Island Road from Wong Chuk Hang to Deep Water Bay.

Works started in 1981 included the Tai Hang Road flyover; Stage I of the Island Eastern Corridor between Causeway Bay and Healthy Street West at North Point; the interim widening of Pok Fu Lam Road adjacent to the University of Hong Kong; and the Queensway flyover. Tenders for the first phase of Stage II of the Island Eastern Corridor from Healthy Street West to Tai Koo Shing were invited, while detailed design of the remaining phase of Stage II from Tai Koo Shing to Shau Kei Wan commenced. On completion, the Island Eastern Corridor will provide an alternative fast route through



North Point, Quarry Bay, Sai Wan Ho and Shau Kei Wan, thus relieving the traffic congestion on King's Road, Java Road and Shau Kei Wan Road.

Planning and design were in hand for an elevated road along Connaught Road Central and West, and the Gloucester Road flyover, the improvement of May Road, and improvements at the junctions of May Road with Magazine Gap Road and Blue Pool Road with Tai Hang Road, as well as for an elevated walkway interlinking Admiralty Station and Hutchison House. Feasibility studies were commenced for Route 7 from Kennedy Town to Aberdeen, for Route 81 from Aberdeen Tunnel to Stanley, for the widening of Tai Tam Road at Tai Tam Tuk Reservoir and for the extension of the Island Eastern Corridor from Shau Kei Wan to Chai Wan.

In Kowloon, the major projects completed included the East Kowloon Way and San Shan interchange at To Kwa Wan, completing the western approach to the Airport Tunnel. The eastern approach to the Airport Tunnel, through the Kowloon Bay reclamation area, was also substantially completed. A contract was let for the construction of the northern elevated road from Ngau Tau Kok to Kowloon Bay and detailed design on the southern elevated road continued. Several new roads in the Kowloon Bay development area were completed and the construction of two footbridges was well advanced. Construction of the last two sections of East Kowloon Corridor linking the Airport Tunnel with Kwun Tong was progressing rapidly. Further to the east, a new road to supplement the existing Clear Water Bay Road from Choi Hung interchange to Anderson Road was completed and opened to traffic. The construction of the first phase of West Kowloon Corridor at Tai Kok Tsui was substantially completed, while the second phase continued to make progress. On completion, this corridor will form part of an elevated road linking Yau Ma Tei with Lai Chi Kok. Planning and design for improvements to Gascoigne Road and Chatham Road and for an elevated vehicular link between the eastern and western portions of Kowloon Tong were initiated.

      In addition, roads serving new public housing estates at Kowloon Bay (Kai Yip Estate), Lai Chi Kok (Lai Kok Estate) and Chuk Yuen (Chuk Yuen Estate) were completed. The permanent reinstatement of the busy Nathan Road above the Mass Transit Railway tunnel was completed and a pedestrian subway, resting on top of the tunnel, was constructed across Nathan Road at Saigon Street.

      In the New Territories, major completed projects included two grade-separated inter- changes in Castle Peak Road at its junction with Texaco Road and at Tai Wo Tsuen; Tsuen Wan bypass Stage I connecting Kwai Chung Road near Lai King Headland with Texaco Road; and the construction of the second carriageway of Tuen Mun Road between Tsuen Wan and Sham Tseng. Also in Castle Peak Road, a footbridge was completed near Ping Fu Path and another near Wo Yi Hop Road. A third footbridge was completed at the junction of Shing Mun Road and Kok Shui Road. At the border, the widening of Man Kam To Road and the eastern footbridge at Lo Wu were completed. In addition, detailed design of Clear Water Bay Road from Hiram's Highway to Hang Hau Road and preliminary planning of the section of the New Territories circular road from Au Tau to Sheung Shui were finalised. Consultants were appointed to undertake a feasibility study of alternative transport development in the Sha Tin - Tsuen Wan Corridor. The final report of North Lantau Transport Access Study was completed.

Satisfactory construction progress was maintained on the second carriageway of Tuen Mun Road between Sham Tseng and Tuen Mun and also on the grade-separated interchange at Chai Wan Kok linking Tuen Mun Road and Castle Peak Road. The improvement of Clear Water Bay Road to a dual carriageway between Anderson Road and










Moving the Traffic

Keeping Hong Kong on the move presents a formidable challenge because of con- tinuing traffic growth and the lack of suitable land for road construction. With some 247 vehicles for every kilometre of road, the territory has one of the highest traffic densities in the world. To improve traffic flow, more 'highways in the sky' are being built over existing roads and tunnels have been bored through hills. At present there are more than 1-150 kilometres of roads in Hong Kong serving almost 300 000 vehicles. The network includes more than 60 flyovers, two dual-lane twin- portal tunnels - at Lion Rock and beneath the harbour-two major bridges at Tsing. Yi and Ap Lei Chau - six subways and some 160 pedestrian facilities to keep traffic and people moving. Two new tunnels. (linking Aberdeen and Happy Valley and beneath the airport) will be open to traffic in 1982. More than 50 further road projects are also under construction while some 150 others are being planned. Within the next five years some $3,500 million worth of roadworks are expected to be completed. During 1981, work started on the Hong Kong Island Eastern Corridor, a massive elevated road along the waterfront from Causeway Bay to Quarry Bay, to ease traffic congestion in North Point. The entire scheme, which will eventually be linked to Chai Wan, is expected to be completed in 1985.

Previous page: As darkness falls the Cause- way Bay interchange and the entrance to the Cross Harbour Tunnel become swathed in the lights of moving vehicles. Left: An engineer and consultant discuss the Hong Kong Island Eastern Corridor, contractors check plans for the Stubbs Road flyover; engineers note that the planned Tsing Ma Bridge towers will be higher than Connaught Centre.



   Elevated all-weather walkways in Central District provide pedestrians with safe access above the busy streets to office blocks and shopping areas.

Above: By using slip roads off the Canal Road flyover, motorists can achieve quick entry to Causeway Bay and Happy Valley.


Below: The Canal Road flyover bends around the racecourse to become a major trunk road to the Aberdeen Tunnel.

Above: Weaving its way through a forest of skyscrapers, the $42 million Hill Road flyover provides a traffic link from Pok Fu Lam to Central.

Below: The growth of Sha Tin has called for a sophisticated road system to provide access to the new town and a by-pass to Tai Po.



وارد کردند



Congestion at the Tai Hang - Wong Nei Chung Gap Road roundabout is being alleviated. by the Stubbs Road flyover, built at a cost of $90 million.








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   Work is well underway on stage II of the Tuen Mun Road which will ultimately comprise two three-lane carriageways linking two major new towns.



Opening in 1982 will be the tunnel linking Aberdeen and Happy Valley. Its access road connects directly with the Cross Harbour Tunnel to Kowloon.



Hiram's Highway and the phased improvements to South Lantau Road were progressing rapidly.

Major works commenced during the year in the New Territories included circular road improvements - Wo Hop Shek interchange and the Yuen Long to Au Tau dual carriageway; the New Territories trunk road - Island House to North Tai Po; and six footbridges across the KCR track between Hong Lok Yuen and Wo Hop Shek as part of the KCR electrification programme.

Plans were being drawn up for expansion - to east Kowloon and Hong Kong Island - of the computerised area traffic control system already operating in west Kowloon, to facilitate traffic movements on the existing road networks. Measures were also taken to identify the causes of traffic accidents in order to improve road safety generally for both pedestrians and motorists. A firm of transportation consultants was engaged to introduce public transport priority measures along major traffic routes.

Good progress was maintained on the installation of traffic light signals at road intersection and pedestrian crossings and a total of 451 sets was in operation by the end of the year. A total of 2 435 new lighting points was added to the lighting system.

Kowloon-Canton Railway

A major event during the year was the 25 000 volts A.C. energising of the railway's overhead equipment between the northern portal of Beacon Hill Tunnel and Racecourse Station on July 10, 1981. And in late August, trial runs for the new electric train service were conducted along the six-kilometre route. A programme to retrain KCR drivers on handling the new three-car Electric Multiple Unit (EMU) train sets started in September.

Of equal importance was the government's announcement on September 16 that it had decided in principle to change the status of the railway from a government department to a public corporation. The decision was taken in view of the major development of KCR into a much expanded and more sophisticated railway. For, following the completion of the current $3,500 million modernisation and electrification programme at the end of 1982, KCR will provide fast and frequent services. Its passenger capacity is expected to increase tenfold and freight capacity by three times.

       A transitional Kowloon-Canton Railway Corporation Board will be set up to undertake the necessary planning and preparatory work relating to the legislative, financial and management structure of the new corporation which will come into being before the introduction of the full electrified service of the railway by the end of 1982.

       Meanwhile, the total physical rebuild of the railway progressed satisfactorily in 1981. The new 2.3 kilometres double-tracked Beacon Hill Tunnel, built at a cost of $120 million to replace the existing single track bore, was opened to traffic in April.

During the same month the first three-car EMU set arrived and by late October eight more were delivered. Forty-five such sets - all air-conditioned - will eventually come into operation.


      Under the modernisation programme, three additional stations will be constructed and all stations (with the exception of the Kowloon terminus which is to be remodelled) will be rebuilt to cope with the anticipated large volume of passengers to be carried - an estimated 250 000 a day by the mid-1980s rising to 500 000 a day by 1990. To further facilitate passenger flow, automatic ticket vendors and automatic ticket barriers will be installed at all stations.

Construction of the new Kowloon Tong Station, which will have a three-level inter- change with the Mass Transit Railway, is progressing well and is due to completed by early



1982. Work on the other stations have started with those at Mong Kok and Sha Tin already taking shape.

      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 railway is being improved by fencing-in the entire line and this is expected to be completed before the opening of the high-frequency services in late 1982. In addition, subways and overhead footbridges will be provided at frequent intervals.

      Although KCR at present operates an anarchronistic fleet of only 12 diesel-electric locomotives and 96 coaches, it carried 16 138 857 passengers during 1981. It also transport- ed 1 772 625 tonnes of freight and 2 166 275 head of livestock.

The two express 'through' trains between Kowloon and Guangzhou continued to prove extremely popular and were fully booked both ways during the year.

The first phase of electrified service between Kowloon and Sha Tin (inner suburban route) is expected to be introduced in the spring of 1982 with full electrification of the line up to the border town of Lo Wu (outer suburban route) by the end of 1982.

Road Tunnels

Because of the topography of Hong Kong, tunnelling is often the cheapest means of providing direct and adequate road capacity between populated areas. The Lion Rock Tunnel was opend in 1967 to cater for the movement of people and goods by road between the growing new town of Sha Tin and Kowloon. This tunnel, which is managed by the Transport Department, operated as a single tube facility until 1978 when construction of the second tube was completed and, together with enlarged approach roads, brought into use. A three-class toll ($1, $1.50 and $2) is charged and utilisation has grown from a daily average of 5 000 vehicles in 1968 to 45 427 in 1981.

Two other twin-tube tunnels, the Aberdeen Tunnel and the Airport Tunnel are under construction by the Public Works Department. The Aberdeen Tunnel provides a road link from the south to the north side of Hong Kong Island while the Airport Tunnel passes under the runway of Hong Kong International Airport and improves road communication between Kwun Tong and the central areas of Kowloon. Both tunnels are expected to become fully operational in early 1982.

      Hong Kong Island is linked to Kowloon by the twin-tube Cross-Harbour Tunnel. Constructed on the immersed tube principle, this toll facility is managed by the Cross- Harbour Tunnel Company Limited. An eight-class toll, ranging from $2 for motor cycles up to $20 for goods vehicles over five tons, is charged. In 1981, more than 105 800 vehicles a day used the tunnel. This figure is in excess of the theoretical capacity and severe traffic congestion is now a daily occurence. Consultants appointed by the government to investigate ways to increase road capacity across the harbour have submitted a report which proposes three possible alternative crossings.

Transport Administration

The Governor-in-Council is advised on transport policy issues by the government- appointed Transport Advisory Committee, comprising 11 unofficial and seven official members.

      In September, 1981, following a re-organisation of responsibilities within the Govern- ment Secretariat, a new Transport Branch was formed headed by a Secretary for Transport who is responsible to the Governor (through the Chief Secretary) for all transport matters.



He is advised by the Transport Policy Co-ordinating Committee (TPCC) of which he is chairman. This committee advises on all major policy issues and on the implementation programme for all major government expenditure on transport infrastructure.

       When broad issues of transport policy need to be referred by the Secretary for Transport to the Executive Council for approval, the Governor-in-Council is advised on them by the government-appointed Transport Advisory Committee (TAC), comprising 11 unofficial and seven official members. The statutory authority for the regulation of all forms of public transport, under the general direction of the Secretary for Transport, is the Commissioner for Transport, who is head of the Transport Department and a member of the TPCC and the TAC. He is advised by the Standing Conference on Road Use and the Standing Com- mittee on Waterborne Transport on minor policy and every day matters in their respective fields. The commissioner's responsibilities include traffic management, vehicle registration and licensing, vehicle examination, driver testing and licensing, and the management of government road tunnels, off-street car parks and on-street metered parking spaces.

      Various amendments were made to the road traffic legislation during the year and a major review is almost complete. It is expected that completely revised road traffic legislation will be enacted in early 1982.

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 Commis- sioner for Transport exercises control over the schedules of services and fares and has responsibilities relating to the provision of transport-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 on long-term transport planning needs, including the transport aspects of large-scale development or re-development projects, are now the responsibility of the Transport Branch. Such studies may be undertaken by the Traffic and Transport Survey Division of the department or by consultants managed by it under the policy direction of the Transport Branch; or, in the case of regional land-use development studies, subject to the approval of all transport planning input by the Transport Branch.

During 1981, studies were in progress to consider the future transport requirements of the new towns planned or under construction in the New Territories; additional harbour crossing options; strategic investigations of the development potential of the north-eastern and north-western New Territories; and the integration of the MTR Tsuen Wan Extension into the public transport network.

      For short-term transport planning, the Transport Department's Planning Division also undertakes surveys and economic and statistical work related to immediate and short-term problems.

New modes of transport are kept under review by the Transport Department, and their potential contribution to Hong Kong's growing demand for transport is assessed. The year 1981 saw the negotiations for the introduction of an electric light rail transit system in the new town of Tuen Mun enter an advanced stage. The first services are expected to be running three and a half years after a commitment is made to the system.


The number of registered vehicles continued to rise during 1981, reaching 330 309 by the end of the year. Compared with the previous year, there was an increase of 30 914 vehicles



     or 10 per cent. During the year, a total of 21 410 private cars was registered, constituting 69 per cent of the overall increase in the number of registered vehicles. Detailed statistics are given in Appendix 36. The demand for driving licences remained high. During the year, the number of licences held by Hong Kong residents totalled 676 014, compared with 618 478 in the previous year.

      A third regional licensing office began operations at Kwun Tong on May 18, 1981, to serve east Kowloon and to relieve pressure on the licensing office at Dundas Street, Kowloon. The other licensing office is located in Central District on Hong Kong Island.

      A vehicle inspection office was set up at the end of the year to take over from the police the responsibility of calling up defective vehicles for examination.

      New regulations made under the Road Traffic Ordinance, came into effect on April 7, 1981, to provide for the issue of hire car permits to vehicles for different types of hire car services. By the end of the year, the total number of hire car permits issued for private hire car services was 1 169, for school hire car services 1 433, for hotel hire car services 12 and for airport hire car services 60.


The Transport Department operates nine multi-storey car parks with 5 023 spaces, and five temporary open-air parks with 1 055 spaces and the Civil Aviation Department operates a car park at Hong Kong International Airport. Two of the open-air parks are lorry parks. During 1981, a multi-storey car park at Aberdeen and a new open-air car park in Kwun Tong became operational. The parking charges in car parks situated in the Central business district are $4 an hour in the daytime and $1 an hour in the evenings, slightly higher than the car parks elsewhere in the city. The open-air car parks have a lower rate, which ranges from 50 cents to $3 an hour.

Parking facilities are also provided by the private sector in about 40 multi-storey car parks with some 10 000 spaces, mostly in 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 an hour.

      On-street parking spaces are provided in places where traffic conditions permit, and park- ing meters are installed to achieve economic use of the spaces. In August, 1981, there were 8 808 metered parking spaces throughout the territory, of which 700 were designated for goods vehicles. Payment is required from 8 am to midnight from Monday to Saturday, ex- cept at the Peak and the Hong Kong International Airport, where charges are also made on Sundays and public holidays to regulate demand. By August, 1981, all parking meters had been replaced by a new type of modern design. The majority of meters are two-hour meters with a rate of $1 for 30 minutes. On-street parking is controlled by Traffic Wardens who, to- gether with the police, apply a fixed penalty system for parking offences. The penalty is $70.

Vehicle Examination

During 1981 the Transport Department's five vehicle examination centres carried out 70 000 inspections. Most were in connection with safety and the registration and licensing of vehicles, including goods vehicles first registered before 1972 which became subject to compulsory annual examination from October 1, 1979. When licensed vehicles are found to have defects, the examiner can issue a vehicles repair order or suspend the vehicle licence 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.



       All public service vehicles are now subject to annual mechanical inspection including omnibuses and taxis which in addition undergo a six monthly meter calibration check by the Transport Department.


Hong Kong is one of the major ports of 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 efficient way in which it satisfies the requirements of modern shipping. Victoria Harbour, lying between Hong Kong Island and Kowloon, is regarded as one of the most perfect natural harbours in the world. It has an area of some 6 000 hectares and varies in width from 1.6 km to 9.6 km.

The administration of the port is a responsibility of the Director of Marine. He is advised upon the port's administration by the Port Committee and the Port Executive Committee through which the closest liaison with shipping and commercial interests is maintained thus seeking to ensure that facilities and services develop to meet the changing needs of Hong Kong and of the ships using the port.

The Kwai Chung Container Terminal which ranks among the top three container terminals in the world, handled 1.55 million TEU's (20-foot equivalent units) in 1981. The terminal has six berths totalling more than 2 300 metres fronting on to about 85 hectares of cargo-handling area which includes container yards and container freight stations. Up the six 'third generation' containerships can be accommodated and worked simultaneously at these berths, all of which are operated by private companies or consortia. None-the-less, the further expansion of the port's capacity to handle containers is under active develop-


In 1981, some 10 600 ocean-going vessels called at Hong Kong and loaded and discharged more than 33 million tonnes of cargo. This included 26 million tonnes of general goods, 52 per cent of which was containerised cargo.

Although containerisation is a major cargo transport method, a considerable amount of dry cargo handled in Hong Kong is transported at some stage by lighters and junks of which there were some 2 073 at the end of 1981, some 27 per cent of which are mechanised. Break-bulk cargo is normally handled using ships' gear, but floating heavy-lift cranes are available when required.

On average, conventional ships working cargo at buoys are in port for 2.6 days and container ships are here for just 15.5 hours excluding steaming to and from Waglan Island and berthing/unberthing time. These are probably the fastest turn-round times for ships in the Far East. A mobile floating roll-on-roll-off ramp is provided by one of the Kwai Chung Container Terminal operators who, in June 1981 had put into full operation a 12-storey, multi-purpose godown with a usable floor area of 52 400 square metres - the first two floors of which serve as a container freight station. Nearby, at Tsuen Wan, there is a 16-storey godown - usable floor area 52 600 square metres - 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 14.6 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, Kwun Tong and Western District. These areas are administered by the Marine Department. Govern- ment policy calls for the continued provision of public cargo working areas throughout Hong Kong to keep internal cargo movement swift and efficient.



Within the port, there are 71 mooring buoys 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 while the remainder are suitable for ships up to 135 metres. The moorings include 57 special typhoon buoys, which are so located that ships can remain secured to them during tropical storms. This obviates unnecessary ship movements and 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 1981 more than 7.3 million passengers were carried by the jetfoils, hydrofoils and conventional ferries plying this route. A further 139 000 passengers were carried on the hoverferry service between Hong Kong and Guangzhou in China.

      For ships calling at Hong Kong, quarantine and immigration facilities are available on a 24-hour basis at the Western Quarantine Anchorage, and from 6.30 am to 6 pm at the Eastern Quarantine Anchorage. Ships are normally cleared inwards on arrival and large passenger vessels are processed on the way to their allocated berths. Advance immigration clearance and radio pratique may be obtained by certain vessels on application.

      Surveyors of the Marine Department Ship Safety Division are available to survey any British or foreign ship for the issue of safety certificates under the International Convention for the Safety of Life at Sea, (SOLAS) 1974, and other international safety conventions. The division also provides a plan approval service and surveyors travel world-wide to complete statutory surveys on vessels intended for British registry in the port of Hong Kong. Examinations for certificates of competency as deck and marine engineer officer are held regularly on scheduled dates; these certificates are recognised by the United Kingdom Department of Trade and are entitled to receive Commonwealth validity. The division also promotes safe-working practices in shipbuilding, ship-repairing, shipbreaking and ship- board cargo handling in Hong Kong waters and continuously monitors these activities and investigates marine industrial accidents.

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.

      All the navigation buoys in Hong Kong waters are in uniformity with the International Association of Lighthouse Authorities (IALA) Maritime Buoyage System 'A' and all fairway buoys are lit and fitted with radar reflectors. Other aids to navigation in the harbour and its approaches are constantly being improved to ensure greater safety and the programmed conversion to solar power of a number of light beacons is proving very successful. Marine Department signal stations at Waglan Island, Green Island, North Point and the Port Communications Centre are all interconnected by telephone, radiotele- phone 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 - and the development of an electronic based marine traffic surveillance capability is now under detailed consideration. 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 is able to act 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 private water boats which service vessels at anchor or on 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 of vessel up to about 228 metres in length and 26.8 metres beam. Five floating dry-docks are located off Tsing Yi Island, the largest of which is capable of lifting vessels of up to 100 000 tonnes deadweight. Hong Kong has a large number of minor shipyards equipped to undertake repairs to small vessels. These yards also build specialised craft including sophisticated pleasure craft and yachts.

      Hong Kong is a prominent centre for the recruiting of seamen. The Seamen's Recruiting Office and the Mercantile Marine Office register and supervise the employment of 18 200 seamen on board 1 200 vessels of all flags. The Hong Kong Merchant Navy Training Board met during 1981 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 for the 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

In contrast to general, world-wide trends in 1981 Hong Kong recorded a significant increase in both passenger and cargo traffic.

       A total of 8.2 million passengers passed through Hong Kong International Airport representing an increase of 21 per cent over the preceding year. This was partly due to the considerable increase in traffic between Hong Kong and London following the opening up of the cabotage route to Cathay Pacific Airways and British Caledonian Airways and also the travel boom in China with Civil Aviation Administration of China operating more and more scheduled and chartered services between Hong Kong and cities in China.

      The air cargo sector went through a steady year with a total throughput of 290 000 tonnes, an increase of about 12 per cent over the previous year's total of 258 000 tonnes. The value of goods, which amounted to $56,000 million, rose by nearly 27 per cent as compared with the preceding year. Measured against Hong Kong's total trade in terms of value, imports by air accounted by value for nearly 19 per cent, exports for over 26 per cent and re-exports for about 24 per cent. The United States remained the major market for both Hong Kong's exports and imports by air, and accounted for 45.2 per cent and 20 per cent of products respectively.



      At the end of 1981, there were 31 airlines operating some 1 000 scheduled passenger and cargo services each week between Hong Kong and the United Kingdom, Europe, the United States, Canada, South Africa, the Middle East, China, Australia, the South Pacific region and Asian countries. Eleven other airlines operated about 30 non-scheduled services to and from Hong Kong a week.

International aircraft movements rose by 1.5 per cent from previous year's total of 54 569 to 55 393. About 70 per cent of the aircraft calling at Hong Kong International Airport were of the wide-bodies type, signifying a continuing move by airlines towards the larger aircraft to meet traffic needs.

      During the year, Air Lanka launched a new twice weekly passenger/cargo service between Hong Kong and Colombo; Cathay Pacific Airways and Civil Aviation Administra- tion of China resumed services on the Hong Kong/Shanghai route; and the Chinese flag-carrier also started new services to Hong Kong from Kunming, Tianjin and Nanjing towards the end of the year.

      Hong Kong International Airport, which has been undergoing a four-stage development programme in the last two decades, took a new look with the completion of the long-term building programme towards the year's end. Over the years, the runway has been extended from 2 540.90 metres to 3 357.95 metres; the parking apron from accommodating 10 aircraft to between 29 and 33 aircraft depending upon aircraft types; a new integrated air cargo terminal has been built and a much expanded passenger terminal building with new sophisticated passenger facilities has been developed. The handling capacity has risen from the originally designed 550 passengers an hour to over 5 000 passengers an hour.

      In 1981, new facilities provided included a large re-modelled greeting area, an extended buffer hall, a new check-in island and a fourth baggage reclaim loop. A new computerised aerodrome lighting control system was also brought into use. More shops were established in both the air-side and the land-side for the convenience of departing passengers.

The replacement airport studies progressed as planned during the year. Following governmental acceptance of recommendations by the Director of Civil Aviation, consult- ants were engaged in February to undertake an airport master planning study, as one of a series of related studies for a replacement airport at Chek Lap Kok off northern Lantau. A contract was awarded to a firm of consultants in February to begin an airport master planning study as one of a series of studies to be conducted in connection with the project. The consultants are to develop an airport master plan which will define the phased development of the replacement airport in terms of the location of the runways and all airport facilities. They are also charged with the task of looking into aircraft operations aspects, including arrival and departure procedures and associated aircraft noise and building height restrictions in the vicinity of the airport, and up-dating the order of costs for constructing the replacement airport. The same group of consultants was also awarded a separate contract to carry out an engineering design study of the Chek Lap Kok site plus a test reclamation. In September, another firm was engaged to carry out a study of the marine environment, and the Hong Kong University to conduct a study of the flora and fauna on Chek Lap Kok. The results of these studies together with the findings of others yet to be started but related to the proposed replacement airport and north Lantau developments will be presented to government before the end of 1982.

Postal Services

A new Air Mail Centre built at a cost of $13.4 million was commissioned in August 1981. All outgoing air parcels are processed at this centre at Hong Kong International Airport



together with all outward and inward airmails being transferred to and from the airlines. four more post offices were opened during the year, making a total of 82 post offices - including two mobile post offices - operating throughout the territory.

Overseas letter postage rates were revised on July 1 to take account of decisions made by the Universal Postal Union and increased conveyance and local handling costs. At the same time, the airmail zone structure was simplified with the result that airmail letter rates to North and South America were generally reduced. Local letter postage rates remained unchanged but the inland parcel rates and surface printed paper rates were increased on October 1.

The door-to-door delivery scheme in the rural areas was extended to a total of 373 villages in the New Territories. In the urban areas, two deliveries are generally provided on each weekday. Although there has been a continuous increase in the volume of letters and parcels handled, the Post Office in general is still able to achieve its target of delivering local letter mail within 24 hours after the date of posting.

      Overall, during 1981, a total of 463 million letters and parcels - a daily average of 1.3 million - were handled, representing an increase of 14.3 per cent over 1980.

Airmail traffic continued to increase. More than 5 500 tonnes of mail was despatched by air and over 3 200 tonnes of air mail was received from abroad representing increases of 7.5 per cent and 15.4 per cent, respectively over 1980. An average of 26 tonnes of mail was handled at the airport each day, including two tonnes of mail sent in transit through Hong Kong.

      The Speedpost service has proved to be popular and now extends to 18 countries Australia, Belgium, Brazil, Canada, China, France, the Federal Republic of Germany, Japan, Kuwait, Macau, the Netherlands, South Africa, South Korea, Singapore, Switzer- land, Taiwan, the United Kingdom and the United States. An increase of 95 700 items, representing 44 per cent over that handled in 1980, was recorded.

Philatelic sales also continued to increase. There were three special stamp issues in 1981. Four stamps were issued in January based on the theme 'Hong Kong Fish' and depicted the most common species of fish found in Hong Kong namely Red Grouper, Golden Thread, Toothed Wrasse and Parrot fish. In July three stamps were issued to commemorate the Royal Wedding of the Prince of Wales to Lady Diana Spencer and over 800 000 first day covers were sold - almost twice as many as the previous record sales. The third special issue was released in October with 'Public Housing' as its theme. It comprised four stamps and a souvenir miniature sheet containing the four stamps. To meet the requirements of the revised overseas surface mail rates a new 90 cent definitive stamp was also issued in October. This brings to 15 the number of denominations in the current definitive stamp issue.

Agency services carried out by the Post Office to the public on behalf of other govern- ment departments included the payment of social welfare benefits amounting to $20 million a month.

Telecommunications Services

The Postmaster General is the Telecommunications Authority in Hong Kong and he administers 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 Interna- tional Convention for the Safety of Life at Sea.

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.

Government networks planned during 1981 included the Civil Co-ordination Control network, the Waterworks Micro-wave Telemetry network and a replacement facsimile network for the Information Services Department. In addition, an Automatic Fire Alarm Transmission System using multiplexing techniques was planned for the Fire Services Department. PABX facilities were installed for Queen Mary Hospital, Rating and Valuation Department Headquarters and South Kwai Chung Hospital.

A significant event in Hong Kong's international telecommunications history occurred on October 1, 1981, with the setting-up of a local company, Cable and Wireless (Hong Kong) Limited, to operate international telecommunications services from Hong Kong. The new company, a subsidiary of Cable and Wireless Limited, was granted a licence to operate telecommunications services for 25 years. In view of the importance of interna- tional telecommunications to the well being of Hong Kong, the government purchased 20 per cent of the share capital of the company and has two directors on its board. The remaining 80 per cent of share capital has been retained by Cable and Wireless Limited.

      The Hong Kong Telephone Company Limited, operating under franchise from the government, provides telephone and other telecommunications facilities in Hong Kong. With 1.8 million telephones connected to the networks, Hong Kong has a density of more than 34 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 using equipment ranging from electro-mechanical switching to advanced elec- tronic 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; a computerised directory enquiry service and a local and international conference service. Equipment available includes a comprehensive selection of residential telephones and business facilities includ- ing computerised business switching systems, keyphones, auto-diallers, hands free attach- ments, brokers desk equipment and data modems for use on leased circuits or the public switched telephone network.

The year 1981 saw completion of the development phase of Viewdata and the introduc- tion of this public information service that links a television set, via a telephone, to an information bearing computer.

The first optical fibre cable systems, running from Mount Davis to Wan Chai and from Wan Chai to Ho Man Tin were inaugurated. Orders were placed for digital switching equipment for three tandem and one local exchange, installation of which will begin in 1982. The area code for the New Territories was changed from 12 to 0 as a further step towards a territory wide numbering scheme.

Hong Kong's international telephone service is provided by the Hong Kong Telephone Company Limited in conjunction with Cable and Wireless (Hong Kong) Limited. Apart



from operator-connected calls to virtually anywhere in the world, International Direct Dialling calls can be made to more than 80 countries and represent about 65 per cent of outgoing international calls. Other international telecommunication services as well as local telegram and telex services are provided by Cable and Wireless (Hong Kong) 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.


The Media



     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. No other place of similar size can rival the 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. 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 corpo- rations have found it convenient to establish their bureaux and offices here. Regional publications 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 extensive news media made up of many daily newspapers, a range of weekly magazines, two private television companies and three 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. The government has matched this progress by producing and participating in an increasing 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 72 newspapers and 413 periodicals, catering to a high readership market. Some 300 copies of newspapers are printed for every 1 000 people in Hong Kong. The world average is 102 to every 1 000 people. Six English language and 55 Chinese language newspapers are published each day. Included in the English press produced in Hong Kong is the Asian Wall Street Journal, China Daily and the Asian edition of the International Herald Tribune. Generally, the price of newspapers is around $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 con- ferences, 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 advising its members in the event of disputes with employers.

      Chinese and English language newspapers are represented by the Newspaper Society of Hong Kong, which has 25 members and four associated members. It is empowered to act in matters affecting the interests of local newspapers, to society or its members.

There is also a Hong Kong office of the Press Foundation of Asia, which has the objective of helping to 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 should be improved. Following recommendations by the Journalism Training Board - an independent body set-up by the Governor - a law course was started for journalists in May with the Extra-Mural Department of the University of Hong Kong. The department, at the request of the training board also started a three-year basic training course for journalists in October. And with the Hong Kong Polytechnic, the board sponsored a five-week 'English Oral Communications Skills Course' for Chinese journalists.

      At the end of the year, the board conducted a manpower survey - the first in series - of the mass media industry to determine the manpower and training needs of journalists.

       A journalism workshop and seminars, conducted by the Thomson Foundation, was held later in the year.

Sound Broadcasting

There are 10 radio channels in Hong Kong. Five are operated by Radio Television Hong Kong (RTHK), three by Commercial Radio (CR) and two by the British Forces Broad- casting Service (BFBS).

      Policy guidelines for RTHK, which were drawn up in 1980, require the publicly-financed station to provide a balanced output of information, education and entertainment; a service of impartial news and public affairs programming; and to expand production which encourage audience participation. It aims to reflect fully the views of the government and the people of Hong Kong, providing a two-way channel of communication between them. The Director of Broadcasting is its Editor-in-Chief.

      RTHK now broadcasts 24 hours a day on both its Chinese and English programme services a total of 700 hours per week. An independent survey conducted in July 1981 showed that the total number of radio listeners was 75 per cent of the population aged nine and above, as compared with 60 per cent at the end of 1980.

      RTHK is in process of restructuring its five radio channels to emphasise the individual identity of each channel.



       Radio 1 of the Chinese channel has strengthened its news and current affairs output and has expanded the production of programmes designed to encourage audience participation as well as community involvement. Education programmes which incorporate language teaching, Chinese literature, history, overseas studies guidance, medical health guidance and sex education is also a major feature of this channel.

      Radio 2 is being streamlined and remodelled to develop into a channel for young people, with popular music as the salient feature and a lively approach to community service. For the Year of the Disabled Persons, the channel featured a highly successful concert which raised $100,000. It was organised with the co-operation of various government departments and social service groups. The appointments by the Governor of seven Radio 2 disc jockeys as fight crime committee members is a reflection of the effort the channel has put into projecting a positive civic role, particularly among young people.

       Radio 3 continues to be a channel broadcasting news and current affairs, talk shows and popular music for the English-speaking population. Meanwhile Radio 4 is playing an increasingly important role as the arts and serious music channel. It has been very active in promoting cultural affairs in Hong Kong, by working closely with the Hong Kong Philharmonic Orchestra and Hong Kong Chamber Group as well as being much involved in the 1981 Arts Festival.

      Radio 5, a bi-lingual channel, relays the BBC World Service from 6 am to 6.45 am and from 5 pm to 2.30 am daily; outside these hours it provides an additional FM service of programmes such as classical music, education programmes and drama.

With the introduction of stereo drama, RTHK has become the first station in Southeast Asia to use such advanced technology in drama production.

      RTHK's Kidney Donation Campaign which was in full swing from June to August, illustrates the station's efforts in community involvement projects. The campaign was successful in encouraging more than 20 000 people to register as kidney donors.

Advanced technology being introduced will lead to broadcasting services using a wider spectrum of the VHF/FM band. In 1979, approval in principle was given for the introduction of a VHF/FM transmission plan to duplicate in FM existing AM services and to enlarge the service area of FM broadcasts. Cable and Wireless was appointed to conduct a feasibility study for the scheme.

For Commercial Radio, one of the highlights of the year was its introduction of FM broadcasting for its two Chinese channels. Initially, transmissions are being directed at the north of Hong Kong Island and at the Sha Tin area of the New Territories. This is the first stage of developments which will eventually lead to territory-wide FM coverage in stereo for all of CR's three channels. It is estimated that the improved reception could increase the station's audience by 250 000.

      Commercial Radio has been out and about'. during the year with a stepped-up programme of outside broadcasts including coverage of the introduction of trotting from Macau, horse-racing, charity all-star basketball, soccer, tennis, golf, yachting and variety shows (presented in conjunction with the Urban Council).

      The station presented and broadcast a Cantonese opera The Sword of Righteousness, starring Sun Ma Tzi Tsang, as the last of its annual three nights of charity shows which raised over $200,000 for the station's Charity and Disaster Fund.

      The British Ministry of Defence operates the British Forces Broadcasting Service Hong Kong (BFBS) from studios at Sek Kong in the New Territories. Established to serve the particular needs 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 the homelands - the United Kingdom and Nepal - of the forces, their families and the civilian component.

      The station operates one MF transmitter at Tam Mei Camp in the northwest of the New Territories, and two FM transmitters, at Castle Peak and Brick Hill. Generally, the MF transmitter carries Nepali programmes and the FM transmitters, English.

      Nepali programmes feature material of particular interest to the Brigade of Gurkhas as well as programmes which reflect the culture and life of Nepal. Most of the output is produced by the station's own staff while the rest comes mainly from the Nepal Government, the BBC's Nepali Section and BFBS in London.

      Both the English and the Nepali services lay stress on involving the audience in programme-making, either by having contributors in the studio, or by taking programmes to various locations. A phone-in facility was introduced by the English service during the year and BFBS listeners make full use of it. A studio was also established at Headquarters British Forces, HMS Tamar, and it is used for interviews and other programmes which can be fed into the service live.

      BFBS Hong Kong celebrated its 10th year of operation late in 1981. Originally its output consisted only of Nepali programmes, amounting to about 25 hours a week. Today the service broadcasts for over 160 hours a week, with output divided about evenly between Nepali and English.

      The station's transmitting and studio equipment includes an automated broadcast system, the first of its kind in Hong Kong, which enables the very small staff - comprising Gurkha soldiers and professional broadcasters, engineers and administrators - to maintain high productivity.


     Television continues to be Hong Kong's principal leisure activity with more than 92 per cent of households owning one or more television sets. Two enfranchised commercial wireless broadcasting stations Television Broadcasts Limited (TVB) and Rediffusion Television Limited (RTV) - transmit an average of 220 hours of programming each week. The UHF 625-line PAL colour system is standard and virtually all transmission is in colour. Both TVB and RTV maintain large well-equipped studios and office complexes using the latest production and transmission techniques.

While action-packed stories and kung-fu dramas are still favourite viewing, the introduc- tion of the 4 pm to 8.30 pm family viewing period has not only resulted in a considerably 'cleaner' screen, but also in the emergence of drama serials geared towards the interests and likings of young people.

      The number of locally-originated children's programmes has also increased considera- bly, the more popular ones being TVB's Hopscotch and RTV's Whiz Kids Time.

Both stations feature two comprehensive news bulletins daily on their Chinese and English channels, scheduled between 6 pm and midnight. They also broadcast locally- produced public affairs programmes on each channel.

      The event of the year was the coverage of the Royal Wedding via satellite on all four channels. There were more than 2.2 million viewers on the Chinese channels alone.

      The publicly-financed Radio Television Hong Kong (RTHK), which uses the transmis- sion services of the two commercial stations, produces nine and a half hours of programmes per week, including the popular dramas The New Comers and Turning Point. Common- sense and Police Call, in their fifth and sixth years respectively, were still among the top 20



fixtures, while the children's programme Banana Boat went into its third year. Vanguard, a mini-series produced by the ICAC, delivered messages on anti-corruption.

In addition to its major function as a source of entertainment, television also plays an important role in Hong Kong in the field of education. The government Educational Television Service (ETV), which also utilises the transmission facilities of the commercial stations for eight hours each school day, is watched by 610 000 children in both primary and secondary schools. The programmes are devised and written by specialist Education Department staff, who provide schools with associated programme literature and follow-up work. The programmes are produced by RTHK and are made in colour using film anima- tion, drama and documentary techniques.

Information Policy

Overall policy responsibility for the government's relations with the media was passed to the Secretary of Home Affairs in December. The Home Affairs Branch is, inter alia, responsible for co-ordinating the work of the Government Information Services (GIS), Radio Television Hong Kong (RTHK) and much of the work of the Television and Entertainment Licensing Authority. Its two main functions are advising the government on the presentation of policies and on public relations matters; and formulating policy on the full range of broadcasting and information matters. One of the main roles of the Television and Entertainments Licensing Authority (TELA) is to monitor the performance of the television stations in carrying out the terms and conditions under which they operate.

Government Information Services

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. The depart- ment has two divisions: the Press and Public Relations Division, which distributes information to the public via the media and at the same time reflects public opinion expressed in the media to the government; and the Publicity Division, which embraces the creative, publishing, promotional and overseas public relations activities of the department. 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, radio and television stations. The recently installed new facsimile system enables GIS to transmit both photographs and written messages to the media. In 1981 the sub-division handled many thousands of enquiries from the media on a wide range of subjects.

       The newsroom becomes a communications centre during the passage of a typhoon, a severe tropical storm or any other emergency. It provides information to the media, mainly radio and television, to keep the public informed of latest developments. All GIS information officers are mobilised for emergency duty in the newsroom and various key positions in other departments.

      The public relations sub-division keeps the government fully informed of public opinion as expressed in the 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. A radio and TV edition of The Gist started daily publication in October to summarise news and public affairs programmes produced by television and radio stations.

       Information units have 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 under the umbrella of the Urban



     Services Department to handle publicity for the 'Clean Hong Kong' office. Staff in a number of departmental units were also increased to strengthen their links with media and the public.

      The Publicity Division's work is wide-ranging and it includes the handling of the government's major publicity campaigns - such as road safety, the anti-narcotics drive, industrial safety, fire prevention, safety at home, the district administration scheme and the fight against crime. About 30 minor campaigns are also co-ordinated and many promo- tional events are staged within district communities by means of live shows, a mobile street theatre and film shows.

      Photography, film-making, the staging of exhibitions, publishing and the design of books, leaflets and posters all come under the Publicity Division.

      GIS produces a wide variety of publications ranging from leaflets and fact sheets to the Hong Kong Annual Report - which has become the best selling hardback book in the territory and other full-colour books. Sales of government publications rose by 32 per cent to more than $12.7 million in 1981, compared with $9.6 million in 1980.


The overseas public relations sub-division helps visiting correspondents, television and film crews, and works closely with news agencies and overseas journalists based in Hong Kong. During 1981 international interest continued to be taken in the high level of illegal immigration from China and in Vietnamese boat refugees stranded in Hong Kong while waiting for resettlement abroad. GIS officers arranged programmes, handled enquiries and gave briefings to 1 000 visiting journalists, film teams and broadcasters. The sub-division also started production of radio and television tapes for overseas media.

To keep people overseas up to date on local events, the sub-division produces a weekly news-sheet in English The Week in Hong Kong. Another GIS publication, the Hong Kong News Digest, a fortnightly Chinese paper, helps to maintain a close contact with Hong Kong Chinese living in Britain, the United States and other parts of the world.

At the Hong Kong Government Office in London, the news and public affairs division works closely with GIS to provide a press service for the British media and an inquiry and information service for the public about events and developments in Hong Kong.

      During the year, the office organised the first major presentation at London's latest cultural complex, the Barbican Centre. An invited audience of some 3 000 guests, including HRH Princess Alexandra, saw a 60-minute presentation featuring a multi-screen audio visual show which illustrated the change of Hong Kong from a sleepy outpost of the Empire to a bustling city; an exciting fashion show adapted from the 1981 Pret A Porter in Paris, Hong Kong Style; and performances by leading young dancers from the territory.

Film Industry

By the end of 1981 the number of cinemas in Hong Kong, Kowloon and the New Territories stood at 82. However, with rising property values it is expected that this figure may decline slightly during the coming year. The annual cinema attendance totalling about 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.

      The number of locally-produced films was 130 in comparison with 142 for 1980. While imported films continue to be popular, many Western box-office successes are summarily dismissed by cinema-goers when released in Hong Kong. There are some exceptions, however, such as For Your Eyes Only which grossed $11 million. 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 Security Unlimited which in 37 days grossed over $17.7 million and Chasing Girls which in 20 days grossed over $9.4 million.

In the local film production industry, the trend to produce films in Cantonese rather than in Mandarin continued. In terms of themes, there were few social dramas, the accent being mainly on 'action' films and comedies. Kung-fu films have also made a comeback and are much better produced now than they were at the beginning of the 70s.

All films intended for exhibition in Hong Kong must be submitted to the Panel of Film Censors, which is part of the TELA. Censorship standards are drawn from ascertained community views and a panel comprising about 150 members of the public assists the Panel of Film Censors in reflecting the community views. During the year 687 films were submitted for censorship (including films intended for cine-clubs and cultural organisa- tions). Of the total number submitted, 432 were approved without excisions; 243 were approved after excisions and 12 were totally banned.

Printing and Publishing

Hong Kong's printing industry is expanding rapidly and exporting more each year. At the same time, another of the territory's major industries - that of electronics - is contributing to the plant and equipment of not only the more sophisticated printing companies, but also to the publishers who are becoming more involved in data and word processing systems for both their editorial production and stock control.

      There are more than 2 600 printing companies employing over 27 000 people, over 200 publishing houses with a staff of more than 6 000, and there are also more than 600 advertising agencies employing a total staff of some 4 000 people.

The sales and marketing of data and word processors is handled by more than 30 companies in Hong Kong, which offer over 40 systems.

      With computer-assisted photo composition now well established in many Hong Kong printing companies, the development of equipment to either convert or interface word processors with typesetters at realistic costs has taken place in a number of companies for the purpose of bridging the gap between printers and publishers. The use of optical character recognition equipment has recently started in Hong Kong and should further improve the performance of local companies.

       Electronics are also fully employed in colour separation equipment to control the colour density of each separated film; to control the ink flow and paper feed on larger printing machines; in finishing operations to detect faulty sheets on folding machines; to rapidly count sheets of stacked paper; and to determine the cutting programmes on computer- controlled guillotines.

      A number of large Japanese companies have established colour separation and printing plants in Hong Kong. Publishers from Europe and America produce numerous English, Chinese and bi-lingual magazines, and a substantial number of text books, which are sold locally and overseas, with the majority of exports going to Britain, Australia and the United States.

Hong Kong does not manufacture its own paper and has to import all of its require- ments, with about 200 000 tonnes being imported annually - 100 000 tonnes of which are exported as finished publications.

The Hong Kong Telephone Company made available to the public its news service Viewdata based on static displays on television screens. The service, which operates in the same way as Prestel in many Western countries, is new to this part of Asia.


The Armed Services

and Auxiliary Services

和二 輔軍 隊助

THE Armed Services operate in Hong Kong under the overall command of the Commander British Forces, who advises the Governor on matters affecting the security of Hong Kong and who is also responsible to the Chief of Defence Staff in London. The Armed Services are stationed here primarily to assist the government in maintaining security and stability and to sustain confidence in the United Kingdom's stated commitment to Hong Kong.

      The Royal Navy, the British Army and the Royal Air Force are all represented in Hong Kong. The garrison comprises five Royal Navy patrol craft, a naval tug, one United King- dom and three Gurkha infantry battalions, a Gurkha engineer regiment, a Gurkha signals regiment, a Gurkha transport regiment, one Army helicopter squadron equipped with nine Scout helicopters and one Royal Air Force squadron with eight Wessex helicopters.

      The size and composition of the garrison, and the contribution Hong Kong makes to- wards the cost of keeping it here, are determined by a Defence Costs Agreement between the Hong Kong and United Kingdom governments. With the continuing pressure of illegal immigration from China and the increase in Hong Kong's population, a new agreement was negotiated, to run for seven years from April 1, 1981, to allow for the garrison to be increased by one infantry battalion, a Royal Marines Raiding Squadron and four Scout helicopters. The extra battalion will be Gurkha in the first instance but will eventually be replaced by a UK battalion. Reinforcements will also be available when appropriate and necessary.

      The Royal Marines Raiding Squadron and the additional Scout helicopters have been in Hong Kong throughout the year, as reinforcements for employment on anti-illegal immi- gration duties. Two Royal Navy hovercraft have also been here throughout the period.

      With the ending of the 'reached base' policy in October 1980, the flow of illegal immi- grants was much reduced, although it continues to be necessary for all three services to con- centrate much of their effort on the task of preventing illegal immigration by land and sea.

Royal Navy

The Royal Navy in Hong Kong, based at HMS Tamar, is fully involved in deterring and apprehending illegal immigrants from China, intercepting refugees from Vietnam and, increasingly in 1981, in conducting operations against smugglers. Working in close association with the Royal Hong Kong Police and the other services, the Royal Navy force of five patrol craft, a naval tug, two hovercraft, and a raiding squadron of the Royal Marines has maintained constant patrols of Hong Kong waters with the main effort concentrated at night. The hovercraft and raiding squadron have been particularly effective against the development of sophisticated methods of illegal entry by sea.

       Because of the maritime importance of Hong Kong, the role of the Royal Navy cannot be restricted only to that of countering illegal immigration. The Captain-in-Charge has



     responsibilities for the operational control of the 80 km Hong Kong Sea Defence Area and, in conjunction with the Director of Marine and the Director of Civil Aviation, for search and rescue operations in the South China Sea. The naval base maintains a submarine rescue facility and a small clearance diving team which also assists the police in the recovery of drugs or smuggled goods, and government authorities in searching for and neutralising underwater explosives.

HMS Tamar also houses the Headquarters, British Forces Hong Kong. The 28-storey tower block - The Prince of Wales Building - contains the offices of the Commander British Forces and his staff, together with accommodation and domestic facilities for the base. The building was opened by His Royal Highness the Prince of Wales in 1979.

      Ships from the navies of the United States, Australia, New Zealand, France, Canada and India have visited the base which also had an unusual visitor, the Omani dhow Sohar after her dramatic reconstruction of the historic voyage of Sinbad from Muscat to Guangzhou.

      The strength of the naval establishment, including reinforcements, is about 670 and is supported by some 60 locally employed civilians. The patrol craft are manned by locally entered Chinese ratings and UK officers and ratings. About 330 Chinese ratings are employed in the seaman, engineering and supply branches and another 500 locally recruited merchant seamen and storehousemen serve worldwide aboard the ships of the Royal Fleet Auxiliary Service which provide logistic support to Her Majesty's Fleet and the Army.

      The Royal Navy has always been a part of Hong Kong and continues to play an active role in community relations such as sea training for the Hong Kong Sea Cadet Corps and the Stanley Sea School; provision of electrical maintenance for the Cheshire House at Chung Hom Kok; the building of an obstacle course for a children's playground on Lantau; and a continuing programme of assistance to the St. Christopher's Home for Children.

The Army

The army represents the bulk of the forces in Hong Kong and overall command is vested in Commander British Forces. Command of operational units is delegated to the Gurkha Field Force while logistic units come under the command of the Deputy Commander British Forces.

      During 1981, the 1st Battalion Scots Guards replaced the 1st Battalion Queen's Own Highlanders (Seaforth and Camerons) and the 1st Battalion 2nd King Edward VII's Own Gurkha Rifles replaced the 7th Duke of Edinburgh's Own Gurkha Rifles. Under the new Defence Costs Agreement these units are to be augmented by the Gurkha Reinforcement Battalion, and some minor enhancements are also to be made in other areas.

      Support is provided by a number of units permanently based in Hong Kong which include The Queen's Gurkha Engineers, Queen's Gurkha Signals, the Gurkha Transport Regiment, 660 Squadron Army Air Corps, the Composite Ordinance Depot, 50 Command Workshops Royal Electrical and Mechanical Engineers and the British Military Hospital. The Hong Kong Military Service Corps, which forms part of the British Army, is staffed by full-time regular soldiers with some 1 066 Chinese officers and men who serve as infan- trymen, military policemen, interpreters, dog-handlers, drivers, cooks, clerks, seamen and storemen. The corps provides a valuable contribution to the garrison and has assumed an important role in operations against illegal immigrants.

      The primary role of the army is to support the Hong Kong Government, particularly the Royal Hong Kong Police Force. It is also responsible for preserving the integrity of the



border and in recent years its major task has been to help combat illegal immigration, with individual battalions spending an average of four and a half months a year on border duties. A high level of border vigilance has been maintained, although there has been a significant reduction in the number of illegal immigrants attempting to enter Hong Kong. Improvements to border security are constantly being made and anti-illegal immigration operations continue to play a major part in the daily life of the army.

The Hong Kong-based units again demonstrated their prowess in competition with the rest of the British Army at the 1981 Bisley Meeting in England. The rifle shooting competi- tion was won by the 7th Duke of Edinburgh's Own Gurkha Rifles, and six of the first nine places were taken by units serving Hong Kong.

His Royal Highness the Duke of Edinburgh visited the Queen's Own Highlanders at Stanley Fort and 7th Duke of Edinburgh's Own Gurkha Rifles at the border and the Chief of the General Staff, General Sir Edwin Bramall, took the salute at a passing out parade of the Hong Kong Military Service Corps.

Royal Air Force

      The headquarters of the Royal Air Force Hong Kong is at Sek Kong in the New Territories where its No. 28 (Army Co-operation) Squadron operates eight Wessex helicopters with support by engineering and administrative squadrons. There are other units at Hong Kong International Airport and at Blackdown Barracks, San Po Kong. RAF personnel also serve on the staff of Headquarters British Forces.

       The Wessex helicopters are employed in direct support of the army and can carry 14 troops or 1 400 kg of freight anywhere within Hong Kong.

Although illegal immigration has been substantially reduced across the land border, significant numbers still attempt to enter Hong Kong by using speedboats. These clandes- tine operations are normally carried out at night but are countered by combined operations involving surface vessels and helicopters. The Wessex uses its 65 million candle-power 'nitesuns' to illuminate the area and disorientate the speedboat driver to facilitate capture by surface vessels.

       On a monthly rotational basis with the Royal Hong Kong Auxiliary Air Force, a helicopter is on permanent standby for territory-wide medical evacuation. These vary with cases ranging from heat exhaustion and heart attacks to traffic accident victims and pregnancy cases. On one such flight in June, a Vietnamese girl was born on board a helicopter. During the dry season the helicopters, which can carry 1000 kg of water, provided assistance in fighting fires in areas inaccessible to normal fire appliances. The Wessex have also assisted in several construction projects, including the removal of a crane from the top of the new power station on Lamma Island.

Royal Hong Kong Regiment (The Volunteers)

The role of the Royal Hong Kong Regiment (The Volunteers), a light reconnaissance regiment which supports the British Army, is primarily one of internal security but also includes reconnaissance in anti-illegal immigrant operations. It also assists other govern- ment departments in the event of natural disasters.

       The regiment has more than 700 volunteers who serve in four reconnaissance squadrons, a home guard squadron and a headquarters squadron which includes an escort and liaison troop, a boat patrol troop, the regiment recruit training wing and command and adminis- trative elements. There is also a regimental band made up of part-time musicians and a junior leaders' squadron of 135 boys who are trained in youth activities and leadership.



Response to recruiting campaigns has been enthusiastic which has enabled the regiment to be highly selective and to maintain high standards of physical fitness.

The training commitment is one weekend and either two evenings or one Saturday afternoon each month, together with two one-week camps a year. Ten volunteers attended various territorial army courses at the Royal Military Academy, Sandhurst, and the School of Infantry, Warminster, while another 10 were attached to the Royal Yeomanry for an overseas exercise.

In October 1981, the entire regiment was deployed on the border to relieve the regular battalions for one week. The volunteers were primarily committed to anti-illegal immi- grant operations but essential individual training was also provided to ensure a varied and balanced programme for the week. The usual co-operation of employers in releasing the volunteers from work again resulted in a high turnout.

Royal Hong Kong Auxiliary Air Force

The Royal Hong Kong Auxiliary Air Force provides a variety of flying services, including internal security, for the government. Based at Hong Kong International Airport, it operates seven aircraft: a twin-engined Cessna Titan, a twin-engined Britten-Norman Islander, two Scottish Aviation Bulldog trainers and three Aerospatiale Dauphin twin- engined helicopters. It has an establishment of 68 permanent staff and 116 volunteers.

The blend of permanent and volunteer staff and of fixed-wing and rotary aircraft, supported by a totally self-sufficient engineering squadron, has enabled the auxiliary air force to operate seven days a week and round the clock during an emergency.

The new Dauphin helicopters settled well into service. Working closely with the marine police, daily patrols were maintained to counter the arrival of illegal immigrants and to provide intelligence on the movement of vessels carrying Vietnamese refugees.

      The helicopters also responded to more than 160 requests for emergency medical evacuations from outlying areas and from ships with injured personnel on board.

The increased capacity of the new machines also proved of great assistance in 'water bombing' fires in the rural and afforested areas. A number of civil engineering projects were successfully completed with the help of auxiliary air force helicopters carrying men and materials to inaccessible locations. They were also used to transport official visitors to remote areas.

The Cessna Titan and Britten-Norman Islander assisted the Public Works Department with aerial surveys and photography for map making and development planning in the New Territories, as well as maintaining long-range off-shore surveillance patrols. The Bulldogs provided regular meteorological evaluation flights for the Royal Observatory in connection with the proposed new airport at Chep Lap Kok as well as ab initio pilot training for the Civil Aviation Department's student air traffic controllers.

Civil Aid Services

The Civil Aid Services is a disciplined and uniformed volunteer service founded in 1952 and trained to assist the regular emergency services in dealing with natural disasters and other emergencies. Its 3 000 officers and members are trained to handle typhoon emergencies, rescue from landslips and building collapses, mountain rescue, forest fire fighting, forestry patrolling, counter-oil pollution duties at sea, refugee feeding and camp management, crowd control duties and life saving.

The Civil Aid Services also plays an important role in helping to organise Chinese festivals, charity fund raising drives, government publicity campaigns and sports meetings.



During these civic duties they also perform crowd control duties and main information


A new task allocated to the Civil Aid Services was to assist the Agriculture and Fisheries Department in rabies control in the New Territories.

After completing their basic training, volunteers in the Adult Wing are deployed to a unit of their own choice near to 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 neighbour- hoods increases the effectiveness of the unit to which they belong. There are five Adult Units in Hong Kong, six in Kowloon and seven in the New Territories with each area being controlled by a Regional Command Headquarters.

There is also a Cadet Corps of 2 400 boys, which is designed to encourage civic responsibility and awareness among the young people of Hong Kong and to help prepare them for adulthood. The objectives are achieved through a combination of training and operational duties, including apprenticeship training in fibre-glassing and mechanical workshop techniques, the organisation of safe sports activities, exercises in leadership and initiative, orienteering, life saving, mountaineering, crowd control and assisting the Agriculture and Fisheries Department in patrolling country parks. The cadets are recruited in a similar manner to their counterparts in the Adult Wing and the training they undergo is progressive; as the cadet gains more experience, he is permitted to undertake more advanced courses. The cadets are keen members of the Duke of Edinburgh Award Scheme and during the year, they obtained 76 bronze, 28 silver and one gold awards.

       At the age of 18, cadets leave the corps and may then join either the Adult Wing in the Civil Aid Services or any other auxiliary or regular disciplined service.

All members share a 20-hectare training camp situated high above Castle Peak Road at Tsing Lung Tau. During 1981 the old village of Yuen Tun in the training camp site was completely renovated and reinstated as it was over 200 years ago, with generous donations from local dignitaries in Tsuen Wan District and with the help of the District Office, Tsuen Wan. There is also a centre for water-based activities at Tai Tan on the Sai Kung peninsula.

Auxiliary Medical Service

The Auxiliary Medical Service, which was formed over 30 years ago, now has nearly 6 000 volunteers including about 1 000 doctors, nurses and para-medical personnel. Its main role is to augment the medical and health services of Hong Kong as well as the ambulance service of the Fire Services Department during typhoons and other emergencies. Its members are mobilised as necessary to provide mobile first aid parties to work with rescue units of other services, to treat the wounded and the sick, to assist in evacuation of casualties from disaster sites to hospitals and to reinforce government clinics and hospitals. They also assist in mass inoculation against epidemics should the need arise.

       The service performs a variety of duties such as first aid coverage at public functions, manning of medical posts at Vietnamese refugee camps, staffing methadone treatment centres, assisting the regular ambulance service on Sundays and public holidays, establish- ing first aid posts at country parks and reinforcing the USD lifeguard service at public beaches and swimming pools during the summer months.

Permanent staff of the service provide training to other government officers, especially those in the disciplined services, in first aid. Together with volunteer instructors they also give lectures to community and adult groups in first aid subjects with emphasis on safety at home.


Religion and Custom


     THE Commercial complexities of Hong Kong are offset by the solicitude its vibrant population finds in spiritual beliefs whether it be in a temple, church, synagogue or mosque. Of the 17 days statutory holidays in the territory, 11 involve religious worshipping.

      The majority of devotees are followers of Buddhism and Taoism and although five of the statutory holidays are renowned Chinese festivals, they continue their worshipping throughout the year during numerous other festivals which appease the gods.

      Missionaries arrived in Hong Kong during its early history and established Christian churches, mosques, Hindu and Sikh temples and a synagogue where believers can profess their faith.

Buddhism and Taoism

     Hong Kong possesses more than 350 Buddhist and Taoist temples, some of which are centuries old and contain priceless antiques; others are impressive new buildings con- structed 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 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 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.



The magnificent Temple of Ten Thousand Buddhas at Tuen Mun in the New Territories was opened in May 1980. 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.

Roman Catholic and Protestant


     Christian Community The Christian community

is estimated to number about half a million people, comprising more than 50 Christian denominations and inde- pendent groups in Hong Kong.

      The Protestant and Roman Catholic churches have a Joint Committee on Development, which plans joint action in areas of mutual concern, with official representation serving on each other's committees. Church leaders issue joint pastoral letters and various bodies of both groups co-operate on a number of mission and service projects.

Roman Catholic Community

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 313 Catholic schools, with more than 281 000 pupils. Its vocational schools 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 338 priests (121 Chinese and 217 of other nationalities); 88 Brothers (38 Chinese and 50 of other nationalities); and 777 Sisters (441 Chinese and 336 of other nationalities), belonging to 21 different religious congregations. There are 54 parishes, and 44 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 representa- tives 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 profes- sional groups as the Guild of St Luke, and the Catholic Nurses Guild. A variety of youth organisations, 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.

      Two years 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, Monsignor 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, died in 1973 and was succeeded by Bishop Peter Wang-kei Lei who died the following year. The third and present Chinese Bishop of Hong Kong, Bishop John Baptist Chen-chung Wu, was consecrated in July, 1975.

Protestant Community

A survey of the Protestant community in Hong Kong published in May 1981 by the Chinese Co-ordination Centre gives the figure of 201 045 members in 634 congregations. The most recent Hong Kong Church Directory indicates that these congregations make up more than 50 denominations and independent groups. They include the major traditions such as the Adventist, Anglican, Alliance, Baptist, Lutheran, Methodist, Salvation Army, Pentecostal and the Church of Christ in China representing the Congregational,



Presbyterian and Reformed traditions. The protestant Christian groups are responsible for 168 primary schools, some 115 secondary schools and three post-secondary colleges. There are three schools for the deaf and several for training the mentally handicapped. There are 15 Theological Seminaries and Bible Institutes.

      A significant event during the year was the installation of the first Chinese bishop for the Anglican Diocese of Hong Kong and Macau, the Rt Revd. Peter K. K. Kwong. Bishop Kwong was elected the ninth bishop of the diocese at a Synod meeting in December 1980 following the retirement of Bishop Gilbert Baker. Bishop Kwong's enthronement took place on April 3, 1981 at St John's Cathedral.

      From March 22 through April 9, there was an historic visit to Hong Kong by an eight member delegation from the newly formed China Christian Council, led by its chairman, the Rt Revd. K. H. Ting, to meet Protestant Christian leaders of the Asia region.

      Co-operative work is facilitated by two organisations, the Chinese Christian Churches Union and the Hong Kong Christian Council. The oldest, the Union, bases its membership on congregations, and has 218 members. Its work is carried out through departments of evangelism, Christian education, charities, cemeteries and information.

      The Hong Kong Christian Council membership is based on denominations and organisations. The Young Women's Christian Association, the Young Men's Christian Associations, The Ecumenical Study Centre, the Hong Kong Bible Society, the Chinese Christian Literature Council, together with the major denominations and other groups form the Council's 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 stimulate local Christians to minister to the needs of the people of Hong Kong. This is achieved through several operational bodies including Hong Kong Christian Service, the Communications Department, the Industrial Committee, and the United Christian Medical Service.

      In 1981 the council through its education office, began publication of a series of religious text books called Faith and Life. The series is designed to help Bible teachers in all five forms of middle schools.

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 1981, they mainly gathered for prayers at the Shelley Street Mosque on Hong Kong Island, and at the Kowloon temporary mosque adjacent to the site of the former Kowloon Mosque which was demolished in 1980.

      Built in 1896 for use by Muslim soldiers of the former Indian Army, and subsequently handed over to the Muslim community, the Kowloon Mosque had badly deteriorated with age. Rebuilding is going ahead on the site and it is envisaged a beautiful new mosque will be completed towards the end of 1982.


      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 on which the new Masjid Ammar and Osman Ramju Sadick Islamic Centre was opened in September 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.



The co-ordinating body for all religious affairs is the Incorporated Trustees of the Islamic Community Fund of Hong Kong. A board of trustees, comprising representatives of sections of the Muslim community, is responsible for the management and maintenance of mosques and cemeteries. The trustees are also responsible for organising the celebration of Muslim festivals and other religious events. Charitable work among the Muslim com- munity, 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 temple also houses a library which contains a good selection of books on the Sikh religion and culture.

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.

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.



Recreation and The Arts

     In recent years, the people of Hong Kong have increasingly been able to pursue a considerable assortment of recreational activities in their leisure time. Practically every sporting activity has its fair share of devotees with better opportunities for participation today. The weekend exodus to the beaches and the countryside had been given greater impetus due to a reduction in working hours and improved standards of living. And facilities for these pursuits have been made available largely by government, the Urban Council and many voluntary associations.

1981 was a year of expansion and in October, the Recreation and Culture Division of the Government Secretariat - with its executive arms, the Music Office and the Recreation and Sport Service - was established as a separate government department. Within the depart- ment, a new division was set-up to strengthen government's work in support of the performing arts. This division provides administrative and financial support to a wide range of organisations including the Hong Kong Arts Festival, the Hong Kong Philharmonic Society, the Hong Kong Conservatory of Music and the Hong Kong Academy of Ballet. The income of the Hong Kong Jockey Club Music Fund, established in 1980 with a $10 million donation from the Royal Hong Kong Jockey Club, is disbursed through the department to support music and dance activities, including the provision of scholarships to allow outstanding young musicians to continue their studies in Hong Kong or abroad.

      An Advisory Council for the Performing Arts was established in November to advise government on all aspects of the development of the arts, similar in function to that of the Council for Recreation and Sport which advises the government on sport and recreation matters and which is served by the other new division the Music Office - responsible

for these matters.

Recreation and Sport Service

Since the establishment of the Recreation and Sport Service six years ago, much has been done to promote leisure activities, so much so that the service now has 19 district offices. Stage II of the Lady MacLehose Holiday Village in the Sai Kung Peninsula was nearing completion at the end of the year and when completed it will have a capacity for 250 campers. The village provides a similar service to the popular Sai Kung Outdoor Recreation Centre, but with more emphasis on relaxation rather than on active pursuits. Since its official opening in January 1981, some 1 381 camping projects were organised benefitting participants from all walks of life.

      Another new facility is the indoor Fitness Centre at the Hong Kong Football Club's stadium in Happy Valley, where fitness training, dancing courses and other indoor activities are provided. The centre, modelled on the prototype at the Hung Hom Car Park,



catered for 7 150 participants in 276 programmes in the nine months from its opening in March 1981. A third Fitness Centre was opened in Tuen Mun New Town in September.

      In order to meet the increasing demand for outdoor activities, more permanent facilities are being planned: the West Sea Cofferdam Water Sports Centre; Hong Kong's first purpose-built outdoor recreation centre at Tso Kung Tam Park; and fitness centres in housing estates are being considered.

The service's 19 district offices initiate and develop programmes for all age and ability groups at district level. Particular emphasis was placed on providing better opportunities for the public to take part in recreational programmes and on helping the community to make maximum use of available sporting facilities. Regional and district officers also contributed to the new district administration policies by helping to identify the needs for recreation and sporting activities and in co-ordinating balanced programmes with voluntary organisations.

Its technical and planning section organised 125 pilot programmes including synchron- ised swimming and five-a-side soccer, catering for some 21 000 people. It also liaised with sports bodies in organising training courses for coaches, instructors and officials as well as giving technical advice on the organisation of sporting events.

During 1981 the service organised 6 904 projects for 530 629 participants with funds provided by government, the Urban Council, district boards, commercial sponsors and community leaders. Commercial sponsorship alone reached a record of more than $2 million. Joint projects with the Urban Council came to some 282 during the year, and 1 159 activities were funded jointly with district boards in the New Territories.

Summer Youth Programme

The ever-popular Summer Youth Programme, arranged by the Central Co-ordinating Committee for Youth Recreation, remains the largest annual series of events for youth with about 8 000 events being organised with two million participants. At a cost of some $9.6 million, the programme was financed by a $3 million donation from the Royal Hong Kong Jockey Club its main supporter since 1969 government and Urban Council funds, private donations and participants fees.

A survey on the 13th Summer Youth Programme was conducted in September with the help of the Census and Statistics Department to assess the programme and to identify the preferences of young people taking part. The survey report, which was issued in December, will be carefully studied to form the basis for planning future programmes.

      In support of the 'International Year of the Disabled', a large number of activities suitable for the disabled were incorporated into the year's programme. The organisers' aim continued to be to involve as many young people as possible, while maintaining a high standard of events so that participation is both challenging and interesting.

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 1981.

      The Director of Agriculture and Fisheries is the Country Parks Authority and is responsible for their management. Facilities provided in the parks include picnic sites with tables and benches, litter bins, children's play equipment, firepits for barbecues and, where appropriate, special facilities for the handicapped. In the more remote areas, a campsite programme has been carried out to provide simple facilities for hikers. The 100-kilometre MacLehose Trail continued to be very popular and plans for the development of additional long distance trails on Lantau Island and in Plover Cove were in progress. 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.

Following the experience of the pilot scheme, the Park Ranger Service was expanded in 1981 to cover a wider area of the country parks system. Their functions are 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 a major role in community life, providing a wide range of recreational and cultural facilities in the urban areas. The council's executive arm on the management and planning of the majority of its recreational facilities, including parks, playgrounds and swimming pools, is the Urban Services Department's City Services Department, while its Cultural Services Department provides libraries, museums, the performing arts, films, outdoor entertainment and exhibitions of general interest. 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, other government departments and community associations in organising sports, entertainment, cultural and recreational activities.

      Among the many projects of the Urban Council being finalised are the provision of boating facilities at Wong Nai Chung Reservoir Park, the Ko Shan Road Park which includes an open-air theatre, and the extension and redevelopment work of Victoria Park. An artificial turf hockey ground at King's Park in Kowloon was built in September, in time for the Junior World Cup Hockey Qualifying Competition (Australasian Zone).

Opened in 1980, the Queen Elizabeth Stadium integrates the three elements of sports administration, training and competition. The top three floors of the stadium's tower block house the Amateur Sports Federation and Olympic Committee of Hong Kong and 23 national sports associations. Its indoor facilities, including a multi-purpose hall, gymnasia, the table tennis playing area and the ancillary committee rooms, are available for training or can be hired for casual play. The stadium, with a 3 500-seat air-conditioned main arena, offers a facility of international standards for basketball, badminton, volley- ball, table tennis, gymnastics, boxing, fencing, judo and cultural activities.

A larger and more sophisticated indoor stadium is being built by the government at Hung Hom. Situated on the podium of the Kowloon-Canton Railway terminus it is designed to accommodate 12 500 spectators. It will be managed by the Urban Council when completed in early 1983.

To provide even more indoor facilities, particularly in built-up areas where space is limited, it is the council's policy that new or reprovisioned market buildings will, in future, be multi-storeyed, with one or two floors constructed especially for recreational and cultural use. Such market buildings opened in the year include the Ngau Tau Kok Market



Complex - a joint venture between the Urban Council and the Housing Authority to incorporate a multi-purpose complex within a home ownership scheme - and the Yue Kwong Road Market and Indoor Games Hall in Aberdeen. Another 10 indoor games halls are planned to supplement the existing five at Aberdeen, Kai Tak East, Cheung Sha Wan, Morse Park and Boundary Street.

The Urban Council works closely with various sports organisations, the Council for Recreation and Sport, the Recreation and Culture Department and others, in implemen- ting its annual sports and recreation programme. With a provision of $4.5 million in 1981, the council organised and sponsored over 1 200 sports and recreational events in which about 1.9 million people participated.

The council also organised throughout the urban areas some 972 free outdoor entertain- ment programmes, which included variety shows, Cantonese and Peking operas, puppet and film shows, ballet, youth dances, carnivals, folk singing and folk dances. About two million people were entertained at these events which were presented in parks, playgrounds, gardens, recreational and community halls.

An intensive 43-day programme

                       the 1981 Summer Fun Festival was also launched during the summer holidays. More than 64 000 young people and children took part in various outdoor events such as launch picnics, swim-ins, family harbour cruises, carnivals, camping activities, youth dances, film shows and children's parties.

      The Urban Council and the Hong Kong Tourist Association organised the 1981 International Dragon Boat Races, which were attended by five overseas teams in celebra- tion of the annual Dragon Boat Festival.

      For the Chinese Mid-Autumn Festival, the Urban Council organised two lantern carnivals - one at Victoria Park on Hong Kong Island and the other at Morse Park in Kowloon - which attracted more than 380 000 people.

Other special large-scale programmes, such as the Christmas Special, New Year Fiesta, Chinese New Year Programme, April Fiesta and May Fair were also organised to mark festive seasons and special occasions throughout the year.

      In addition to local artiste groups, the Urban Council also presented a number of over- seas groups, including the Seventh Fleet Band, the Chiang Ching Dance Company and the Royal Australian Navy's Band, the San Francisco Boys' Choir, and the San Diego Youth Symphony at outdoor venues.

      In the New Territories, the Cultural Services Department organised some 169 entertain- ing events which were attended by 122 180 people.


Swimming is Hong Kong's most popular summer recreation and there are 41 gazetted beaches. These comprise 12 beaches on Hong Kong Island, under the Urban Council's control, and 29 in the New Territories, managed by the New Territories Services Department. The beaches have life-guards, first-aid posts, changing rooms, showers and other facilities. The Urban Services Department also manages 10 swimming pool com- plexes in the urban areas, while the New Territories Services Department manages three in the New Territories. The latest swimming pool complex, the Sha Tin Jockey Club Public Swimming Pool and Squash Courts, was officially opened on April.

     During the swimming season an estimated 22 million people visited the beaches and 4.9 million used the swimming pools. Fifteen new swimming pool complexes are being planned

one on Hong Kong Island, seven in Kowloon, and seven in the New



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Through the Centuries

More than 3 500 years ago the Chinese mapped the heavens, paving the way for today's sophisticated space exploration. And at Hong Kong's Space Museum, opened in 1980 at a cost of $60 million, the odyssey through space spans the centuries- old Chinese discoveries of the universe and the historic voyage of the American space shuttle Columbia. The 8 000-square-metre museum the first stage of a massive cultural complex project planned by the Urban Council on the Tsim Sha Tsui waterfront - consists of a 316-seat Space Theatre, a large exhibition hall, a Hall of Solar Sciences, lecture hall and an astronomy bookshop. The Space Theatre, with a 23-metre dome-shaped screen, is among the largest in the world. Its sophis- ticated equipment includes a multi-lens Planetarium projector, a 70 mm Omnimax projector and some 300 special effects pro- jectors. The Hall of Solar Sciences, which opened early in 1981, features a solar tele- scope on the roof of the museum. The sun can be observed directly or recorded on film and videotaped for screening in the hall below. Part of the exhibition hall is devoted to Chinese astrology - diagrams of the galaxy, its observation of the 1054 AD supernova, a water clock and a model of the Peking Observatory - all of which is balanced by illustrations and models of the Great Pyramid, Nazca Plain of Peru and Stonehenge. Also displayed is the Mercury space capsule, an astronaut's space suit, moon rock, a set of cameras used by astronauts as well as photographs and models of rocket development and com- munications and weather satellites.

Previous page: A fish-eye look at the galaxy as seen from Earth. Left: Stone- henge, where the moon was first scienti- fically observed in the western world in 1800-1400 BC; symbolic pattern of the birth, life and death of a star; the space shuttle, an historic achievement in 1981.




The modern architecture of the Space Museum on the Tsim Sha Tsui waterfront blends

with the scenic backdrop of Hong Kong Island across the harbour.

Tad het


The Mercury space capsule, which thrice circled the world with American astronaut M Scott Carpenter in less than five hours in 1962, has a resting place at the Space Museum.

To the amusement of these playful young children, the fittings of a space suit, inside and

out, are explained in detail with the aid of movable panels.



The museum's large exhibition hall has a wide selection of models - including the 1957 Russian Sputnik satellite - to depict the development of space exploration.






   Today's children are brought-up in an environment of scientific achievements as illustrated " by this young boy reaching for a Gemini space suit.



The multi-lens projector illuminates the dome-shaped screen of the Space Theatre with images of Jupiter, Saturn, Mars and other planets and the constellation of Sagittarius.




The Urban Council operates 12 public libraries, two mobile libraries, three gramophone record listening libraries and a video-cassette library. A new library at Telford Gardens in Kowloon Bay will be opened soon.

In the New Territories, the Cultural Services Department operates nine public libraries. In 1981, a mobile library was opened to offer throughout the territory lending services to both children and adults. The Sheung Shui Public Library moved to the Sheung Shui Town Hall while the interim Cheung Chau Library was resited to the new Cheung Chau Rural Committee building, where a larger area was available.

       During the year, 269 376 new books were acquired by the two library systems, bringing the total stock to 1.4 million volumes. Non-book material included 2 960 newspapers and periodicals, 3 685 reels of microfilm, 792 video cassettes, 1 549 sets of slides and 12 490 gramophone records and cassette tapes.

      In 1981, 93 953 people joined the libraries as new members, bringing the total member- ship to 1.05 million. More than 5.5 million books were issued for home reading and a further 8.5 million were read in the libraries. Library extension activities such as book exhibitions, story hours, film shows and interest group sessions were organised to promote the usage of the libraries. During the year, some 1.3 million people participated in the various programmes organised by the libraries. Two Urban Council Awards were presented, one for creative writing in Chinese and one for the writing of children's literature in Chinese.

The British Council

The council's English Language Teaching Programme continued to expand during the year when more than 38 000 students attended a wide range of classes, from beginners to university-level English literature courses. There were special courses for business and commercial English, for public examinations in English and for special language needs in the public and private sector. The expanded programme also included refresher courses commissioned by the Education Department for English language teachers in primary and secondary schools and by the Royal Society of Arts to enable native-speaking English teachers to obtain professional qualifications.

      Within its educational exchange programme, the council arranged and assisted 26 short-term visitors and bursars and 15 one-year post-graduate scholarships. Some 21 specialists and consultants from the UK were brought to Hong Kong at the request of local institutions to cover a wide range of subjects.

The council receives a subsidy from the Hong Kong Government.

Highlights of a busy cultural programme included exhibitions of the work of Hogarth and Hockney, Paolozzi and Paul Nash. The Chung Ying Theatre Company, which was set-up by the council in 1979, presented the Mugnog Kids for the Arts Festival, Scapion at the City Hall and toured Malaysia with Animal Farm and completed a full programme of performances in schools.

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 the International Youth Hostels Federation.

Membership increased by 24 per cent during the year and is still predominated by young people in the 17 to 24 years age group.



A new hostel with commanding views of Victoria Harbour and approaches from the heights of Mount Davis on Hong Kong Island was opened in June, 1981. Named Ma Wui Hall, it was built with a $2.7 million donation from the Royal Hong Kong Jockey Club.

New accommodation at the Sze Lok Yuen Hostel situated near the top of Tai Mo Shan was opened a month later, expanding the facilities there to 80 beds. Towards the end of the year construction started on a new dormitory block at Bradbury Hall, Chek Keng, over-looking picturesque Long Harbour. And another site has been reserved for the association at Mong Tung Wan on Lantau Island.

The steady improvement in the standard of living in Hong Kong in recent years is reflected in the number of members who seek to broaden their outlook by taking advantage of the low cost facilities now available to them in 66 countries when they enjoy their holidays.

Outward Bound

The Outward Bound courses aboard the brigantine, Ji Fung, have been well attended by senior executives, students, young businessmen and children. The ship, launched in 1980, had sailed more than 10 000 nautical miles, in local waters, to The Philippines and up the China coast.

At the school, on the Sai Kung peninsula, a new range of courses encompassing most outdoor skills have been introduced with special attention being paid to the disabled. The courses on usage of the country parks, include route finding, camping and preservation of the countryside. Part of the courses encompass the MacLehose Trail which provides a walk of 100 kilometres across the New Territories.

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 nine million visitors since it opened in January 1977.

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.

      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 exhibits on show during the year included a baby rhinoceros, emus and a baby hippopotamus. Donations of peacocks and black swans from the San Diego Zoo added to the variety of species on display. The annual flower show was an extremely successful and colourful attraction with the spectacular high diving exhibition offering an unusual and exciting show for visitors.

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 1500-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 587 000 people attended 1 092 performances in the concert hall, the theatre and the recital hall, and 151 exhibitions were held at the exhibition hall and exhibition gallery.

Among the performances, the Urban Council presented some 80 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.

Among the well-known artistes and groups who performed under the council's auspices were the pianists Fou Ts'ong, Abbey Simon, Sequeira Costa and Nicolas Constantinidis; Violinists Sergio Luca and Yu Yasuraoka; flutist Jean-Pierre Rampal; mime artistes Adam Darious and Kazimar Kolesnik; the Sadao Watanabe Jazz Sextet, the Andree Colson Instrumental Ensemble, the Royal Philharmonic Orchestra, the Metro-Manila Symphony Orchestra, the Wells Cathedral School Orchestra, the Contemporary Dance Forion Ensemble of Mexico, the Dutch National Ballet; the Inter-Europe Spectacle; and the Singers of the Metropolitan Opera.

The Urban Council also takes an active interest in promoting local artistic talent. In August, the Fourth Chinese Opera Festival which featured Peking, Chekiang and Canton- ese operas gave nine performances. Talented newcomers made their debut under Urban Council sponsorship in the Young Artistes Series. During the year, the council presented 59 vocal and instrumental recitals, 23 opera performances and 25 Chinese and Western dance performances.

Other noteworthy presentations in the year included the Hong Kong-Japan Cultural Week 1981, featuring contemporary and traditional music, folk and modern dances and an exhibition on Japanese cultural handicraft; two opera productions, Don Pasquale and La Boheme; the 33rd School Music Festival Prize-winners' Concerts, the 17th Schools Dance Festival Prize-winners' Performances and the 36th Hong Kong International Salon of Photography.

Tsuen Wan Town Hall

Opened in 1980, the Tsuen Wan Town Hall is the first multi-purpose cultural complex to be built in the New Territories.

The hall has a 1 424-seat multi-purpose auditorium to suit both concert and theatrical performances. And its 450-square-metre cultural activities hall is a venue for both exhibitions and cultural presentations. Other facilities include lecture and conference rooms, music book shop and coffee lounge.

The Tsuen Wan Town Hall on a 5 900-square-metre site in the centre of the new town is administered by the Cultural Services Department and managed by a committee compris- ing representatives from the government, the Tsuen Wan District Advisory Board and local community organisations. Apart from making the facilities available for hire, the manage-



ment presents various cultural and artistic programmes of its own. During the year, about 417 000 people attended 355 performances and 38 exhibitions in the town hall. Among the performances, 215 were presented by the town hall or jointly presented with other non-profit-making cultural organisations.

Hong Kong Arts Centre

The three auditoria at the Hong Kong Arts Centre were used for more than 1 700 sessions, and its art galleries hosted nearly a hundred exhibitions during the year. Its two rehearsal rooms, art and crafts studios, music practice rooms and other areas were used for more than 6 000 separate sessions.

      Since its opening in 1977, the Arts Centre has continued to grow with public support and participation. A survey during the year showed an average daily attendance of about 3 500 people.

      The main event of the year was the Dow Summer School of the Arts which lasted four weeks and included a wide variety of courses, lectures, workshops and special performances, including events for children. There were some 700 sessions during the school, mostly held within the Arts Centre with lecturers and performers from Hong Kong and overseas.

Another principal event was the Asian Composers Conference and Festival. Guest composers came from the United States, Europe, China, Australasia as well as other Asian countries. A highlight of the festival was the Music Fair, a whole-day marathon during which all venues in the Arts Centre were used continously for concerts, exhibitions, demonstrations and workshops.

Hong Kong Philharmonic Orchestra

During 1981, the Hong Kong Philharmonic Orchestra expanded its membership from 74 to 82 players. This marked the first step in a major five-year development plan which aims to establish the orchestra very firmly within the community as a first-class international orchestral ensemble.

Throughout the year, the orchestra's principal activity continued to be its Friday and Saturday subscription concerts at the City Hall Concert Hall which attracted average attendances of over 85 per cent. Regular series of concerts also took place at the Academic Community Hall in Kowloon and at the Tsuen Wan Town Hall. For the first time, a Philharmonic Pops Concert was presented in the Queen Elizabeth Stadium, with such a resounding success that this type of concert will become a feature of future orchestral


The highlight of the year was the appearance with the orchestra of the world-renowned mezzo soprano, Teresa Berganza, in April. Other guest artistes included conductors Gaetano Delogu, Brian Priestman, Kenneth Schermerhorn and Varujan Kojian, and pianists Peter Frankl, Deszoe Ranki and the Russian emigre Oxana Yablonskaya.

      The orchestra also performed with several local organisations, including the Hong Kong Oratorio Society, at concerts to mark its 25th anniversary in June, and two Urban Council opera productions, Don Pasquale and La Boheme.

Hong Kong Chinese Orchestra

     Formed by the Urban Council in 1977, the Hong Kong Chinese Orchestra has achieved significant success in combining Western orchestral works with Chinese music and traditional Chinese musical instruments. It has also introduced the works of many contemporary composers into its repertoire.



The orchestra, with 61 full-time and 14 part-time musicians, gave 56 performances in 1981, including 16 at schools.

Hong Kong Repertory Theatre

The Hong Kong Repertory Theatre, which was transformed into a professional company with the Urban Council's sponsorship in 1977, staged one musical and six Chinese and Western plays in the year. Some 104 performances in Cantonese were given, of which 16 were staged at schools and playgrounds. The company employs 15 full-time actors and a number of freelance artists and production staff.

Hong Kong Dance Company

The Hong Kong Dance Company, was set up by the Urban Council in May under its direct finance and management.

      The company aims to promote the art of traditional Chinese dance and to present newly choreographed work on Chinese historical themes.

      The dance company has two dance masters, 26 full-time dancers and a number of production staff.

The Hong Kong Academy of Ballet

The Hong Kong Academy of Ballet which consists of Hong Kong's first professional ballet company and vocational ballet school, has continued to develop its activities. By Septem- ber the number of students in the school had reached 29 and the first two graduates from the school joined the company in August 1981.

      During the year, the company's 17 dancers gave more than 100 performances, half of which were in schools and some 75 per cent in the New Territories. The Schools Demonstration Programme was an important part of the company's work and Peter and the Wolf proved extremely popular with all age groups. The company also featured in the Third Tsuen Wan Arts Festival, the Yuen Long Arts Festival, and the Festival of Asian Arts, as well as presenting its twice-yearly seasons at the City Hall and regular perform- ances in other venues. Several new ballets were added to the repertoire, including Walter Gore's Eaters of Darkness, Dance Pictures and Street Games, and Auguste Bournonville's Napoli and La Ventana.

      Apart from a $2 million grant from the Royal Hong Kong Jockey Club in 1978 to set up an investment fund, the academy has relied entirely on private donations from various individuals and companies for its work until September 1981 when it received a further grant from the Royal Hong Kong Jockey Club to enable it to continue its expansion programme.

Music Office

More than 2 454 students are now receiving weekly instrumental training under the auspices of the Music Office. The office was established in 1977 to provide instrumental music training for young people, to promote and stimulate interest in music, and to encourage and assist in organising music activities in all districts. During 1981, the scope of its activities was further expanded, and 524 classes were conducted each week at the office's four Music Centres, various schools and community centres. To give more opportunities for young people to receive musical training, three more music centres, in the Eastern District of Hong Kong Island, Yau Ma Tei and Yuen Long, are planned for early 1982.



Aural and theory training was also provided to prepare students for the Royal School of Music examinations and to supplement students' instruction in musical instruments. Special training was provided for some 28 talented young musicians and 69 master classes and seminars conducted by visiting musicians were also held for 5 260 students and music lovers. The Music Office continued to consolidate and expand the training of youth orchestras, bands and choirs, and it now runs two youth symphony orchestras, five youth Chinese orchestras, five youth symphonic bands and six choirs. Members attended weekly rehearsals and gave 17 public performances during the year. A children's marching band has been formed.

      '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. During the year, 323 concerts were held for a combined audience of 226 000 people.

The office continued to organise international exchange programmes and in March 1981, a group of young Chinese dancers and musicians participated in the Duke of Edinburgh's Award 25th Anniversary Commonwealth Ball and the Camden Festival in London. Twelve young musicians took part in the Fourth Asian Youth Music Camp in Japan; and the Hong Kong Jing Ying, comprising five Chinese musicians and a Chamber Orchestra of 45 young musicians, participated in the Fifth Australian Youth Music Festival. Seminars on Chinese music were also conducted in Sydney under the auspices of the New South Wales State Conservatorium. A group of five musicians from the Music Office and dancers from the Recreation and Sport Service participated in the Aberdeen International Festival of Music and the Performing Arts and the 17th Billingham International Folklore Festival in the United Kingdom.

The second Hong Kong Youth Music Camp was a major event organised by the Music Office and the Recreation and Sport Service. The camp, at the Wu Kwai Sha Youth Village, was attended by 251 young musicians including 12 young string players from the Hertfordshire County Music School. The Fourth Hong Kong Youth Symphonic Band Festival in November featured a band parade and a series of concerts at the Academic Community Hall, Queen Elizabeth Stadium and Fanling Sports Ground.

Festival of Asian Arts

The sixth Festival of Asian Arts was held in Hong Kong for 17 days in October. This major artistic event, organised by the Urban Council, attracted more than 450 participants from Australia, Bangladesh, China, India, Indonesia, Korea, Japan, Malaysia, Nepal, Papua New Guinea, Pakistan, The Philippines, Sri Lanka, Thailand and Turkey. They were joined by over 2 000 local performers.

Altogether, 159 events - covering a wide spectrum of the arts in Asia - were staged at the City Hall, the Queen Elizabeth Stadium, the Hong Kong Space Museum and at various outdoor venues on Hong Kong Island and in Kowloon. Four exhibitions on Malaysian folkcrafts, contemporary Hong Kong art, Yixing pottery and contemporary Bangladesh art were also held. Well over 184 000 people were entertained by these performances at indoor and outdoor venues. Over the past six years, the festival has developed into a cultural event of considerable local and regional significance.

Hong Kong Arts Festival

The 1981 festival launched its month-long programme with the opening concert by Britain's Halle Orchestra followed by other renowned orchestras and performers. Under



the batons of its principal conductor James Loughran, and guest conductor Maurice Handford, the Halle presented 10 principally concerts, featuring the works of Edward Elgar. Soloists included pianist John Lill and the young English violinist Nigel Kennedy.

      Another important part of the orchestral programme was the six performances by the Swedish Radio Symphony Orchestra. It performed a varied range of music, including works by Blomdahl and Rosenberg, and presented solo performances by soprano Janis Martin and pianist Michel Béroff.

Throughout the festival, lunchtime crowds were treated to jazz concerts, aspiring actors took part in theatrical workshops and there were public performances of Chinese puppetry. The Hong Kong Philharmonic Orchestra, the Hong Kong Youth Symphony Orchestra and the Hong Kong Chinese Orchestra were also featured in the festival. Local theatre productions included Camelot and The East is East.

      Contrasting with the classics were the performances by the Midnite Follies Orchestra which brought together American crooner Johnny M and jazz singer Sarah Nagourney to present an entertaining performance of big band sounds. The jazz of Australians, Don Burrows and George Golla, also presented the festival with a unique programme spanning Bach-inspired improvisations to modern rock and reggae.

      The centrepiece of the theatrical programme was the Old Vic Company's presentation of Pinero's comedy, Trelawney of the Wells, directed by Timothy West and its acclaimed production of The Merchant of Venice.

      Also included in the programme were other internationally acclaimed artistes, including dancer-choreographer Louis Falco's dance company, humourist-poet Pam Ayres, mime artiste Bob Berky, and the Music Group of London.

Tsuen Wan Arts Festival

The month-long Third Tsuen Wan Arts Festival, organised by the Tsuen Wan District Advisory Board, the Tsuen Wan Culture and Recreation Co-ordinating Association and the Music Office, was held early in the year. Forty-five indoor performances were given at the town hall, as well as 20 outdoor programmes, five exhibitions and eight lectures. Featured on the programme were the Hong Kong Philharmonic Orchestra, the Hong Kong Chinese Orchestra, the Hong Kong Academy Ballet Company, the Hong Kong Children's Choir, the Chor Fung Ming Cantonese Opera and overseas groups such as the Halle Orchestra, Swedish Radio Symphony Orchestra, and the Music Group of London. An 80 per cent attendance was recorded for the performances, while there were 95 600 visitors to the exhibitions.

Film Festival

     More than 63 000 people saw the 189 films from 33 countries screened during the Fifth Hong Kong International Film Festival in April. A further 30 000 people visited a festival exhibition of posters and photographs. A non-competitive event presented by the Urban Council, the festival has been accredited by the International Federation of Film Producers' Associations in Paris, and has been established as a major cultural highlight in Hong Kong.

Public Records Office

The Public Records Office, established in 1972, is the central repository for the permanent archives of the Hong Kong Government.

      The headquarters - its main repository, with more than 5 500 metres of shelving for historical data is in Murray Road, Central District.



      During the year a new sub-office, with space for more than 3 700 linear metres of records, was opened at Wong Chuk Hang Road, Aberdeen. It is also equipped with a specially air-conditioned film repository with storage for 64 200 rolls of microfilm and some 1.1 million aperture cards. This repository has been designed to provide centralised storage for film produced by various government departments.

      Recent additions to the office includes a file of the newspaper, Friend of China and Hong Kong Gazette, 1842-1859; three engravings published by the Admiralty in 1847 (together they form an all-round view of the environs of Victoria Harbour from its centre); and a letter book and other personal papers of Alexander Robert Johnston, an acting administra- tor of Hong Kong in 1841.

      Access to the library's newspaper, map and photograph collections is unrestricted, but formal approval is required for access to the official archives.

Hong Kong Museum of Art

Housed in the high block of the City Hall, the Hong Kong Museum of Art presented 11 exhibitions in 1981. These featured Chinese and contemporary local art, as well as art from Britain and Bangladesh. The Contemporary Art Biennial Exhibition, which was highligh- ted by the presentation of the Urban Council Fine Arts Awards to the best painter, sculptor, print-maker, calligrapher and others was well received by budding artists in Hong Kong. Co-sponsors of these exhibitions included the Oriental Ceramic Society of Hong Kong, the British Council and the Ministry of Sports and Culture of the People's Republic of Bangladesh.

During the year, 230 800 people visited the exhibitions - an average of 749 a day. The museum also organised guided tours for school groups and special lectures on selected art subjects delivered by local experts and overseas scholars. Small travelling exhibitions were held at various Urban Council public libraries. Other than the regular monthy film shows, a special film programme on Modern Art and Artists was presented in a series of 10 shows to reveal the essence of modern art and the achievements of the world's leading modern artists. Significant items acquired by the museum in 1981 include a bronze gu and a ceremonial vessel of the late Shang period (11th century BC), a blue-and-white winecup of the Chenghua period (1465-1487) of the Ming Dynasty, a painting by Qi Baishi (1863-1957), three paintings by Xu Beihong (1895-1953), several collections of Chinese paintings and calligraphy by leading Guangdong masters, and a modelled stoneware bell of the Warring States period (475-221 BC).

Hong Kong Museum of History

During the past six years, the Museum of History in Kowloon has been the venue for 25 specially mounted thematic exhibitions, in addition to its permanent displays on the history of Hong Kong and Hong Kong's traditional fishing industry.

Topics chosen for the special exhibitions were wide-ranging and included such diverse themes as archaeology in Guangdong, folk beliefs retold in traditional woodblock prints, Hong Kong and Macau, and the currency of Guangdong.

From 1977, the museum took part in the annual Festival of Asian Arts by mounting exhibitions drawn from museum collections overseas. These included an exhibition on the traditional crafts of Malaysia in 1981. In all, some 400 000 people had visited the museum in Star House by the end of the year.

      One of the most successful exhibitions in 1981 was the Hong Kong Album, a display of old photographs drawn from the museum's growing collections and other sources which



illustrated Hong Kong's history between 1841 and 1941. The exhibition lasted 90 days and was visited by over 140 000 people. Another popular exhibition was Let Them Live: Protect Endangered Species, which focussed on a problem of increasing international concern - the threat of extinction posed to a growing number of plant and animal species by man's over-exploitation of natural resources. A display of lifelike replicas of Hong Kong's prehistoric rock carvings was also mounted in the Tsuen Wan Town Hall. The display formed part of the programme of the Third Tsuen Wan Arts Festival.

      A major effort was made during the year to complete the large backlog of work in classifying, cataloguing and documenting specimens and other material held in the archaeological repository. A great deal of this essential work was carried out by voluntary workers from the Hong Kong Archaeological Society.

       The other categories of collections continued to expand at a satisfactory rate, one particularly outstanding acquisition being a number of historic Hong Kong banknotes.

       The Lei Cheng Uk Branch Museum and Han Tomb became even more popular, notably from visits by an increased number of organised school groups. It attracted 44 959 visitors during the year.

      By maintaining its links with a number of local learned societies, the museum arranged an interesting and informative series of jointly sponsored lectures on anthropological, archaeological and other related topics.

       Similarly, the museum's association and co-operation with the Antiquities and Monu- ments Section of the Urban Services Department was particularly productive. By the end of the year, more than 400 items, ranging from historic buildings to boundary stones, were documented, photographed and recorded on maps by the section.

      Significant progress was made in the restoration of forts at Tung Chung on Lantau Island and on Tung Lung Island; the latter planned to be completed early in 1982.

       The year also saw the start of a terrritory-wide archaeological survey conducted in the field by three consultants from abroad and directed by the museum and the Antiquities and Monuments Section.

      During the redevelopment of Star House, the museum will move to temporary accom- modation near its offices and workshops in Kowloon Park.

Space Museum

Opened in October 1980, the Hong Kong Space Museum - the first stage of the Tsim Sha Tsui Cultural Complex - provides the public with an exceptional entertainment venue in which knowledge about the universe, space exploration and related sciences is presented through sky shows, exhibitions, public lectures, astronomy classes and telescope observa- tions.

       The museum the first in Asia and the sixth in the world has a most advanced motion-picture projection system for its sky shows in the 316-seat space theatre. The first sky show, A New View of the Universe, drew an audience of 340 461. The succeeding sky show, Odyssey to Planets, shown later in the year attracted a similar audience.

The main exhibition hall on the ground floor displays a wide variety of exhibits, artifacts, models, participatory instruments and audio-visual materials about general astronomy, ancient astronomy, stellar astronomy and space science and explorations. During the year, 421 667 people visited the hall.

The Hall of Solar Sciences, opened in March, is an integral feature of the museum facilities as it marked the beginning of substantial solar observation in Hong Kong. One of its main attractions is a high-precision solar telescope, which offers the public 'live'



information about the sun. Accompanying the telescope are 12 groups of exhibits which employ extensive use of graphics and audio-visual devices, and a series of micro-computers for visitors to check what they have learned from the exhibit items. During 1981, the hall was visited by 177 730 people.

The museum has a 198-seat lecture hall where experts conduct special lectures on astronomy and space science for the public as well as students. Culture activities including film shows, dance demonstrations and musical performances were also held there.

The Space Museum organised a special series of lectures on science and humanities in co-ordination with the Royal Danish Consulate-General in April and in May, a lecture on The Space Shuttle and the Future Meaning of Space was given by U.S. astronaut General Thomas Stafford. A series of popular lectures on astronomy was also presented with local astronomical associations.

Museum of Science and Technology

The Hong Kong Museum of Science and Technology project, initiated by the Urban Council, will have a total usable floor area of 17 000 square metres at Chatham Road East. Preparations for the construction of a temporary science museum as Phase I of the whole project started in 1981 and the temporary museum is expected to be in operation by 1983. When completed, the museum will promote audience participation and visitor involve- ment in contemporary exhibits, covering topics of current interest.

Tsim Sha Tsui Cultural Complex

Overlooking the harbour on the site of the former Kowloon-Canton Railway terminus 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.

      Its facilities will included a crescent-shaped auditoria block housing a 2 300-seat concert hall for presenting unamplified music; a 2 000-seat lyric theatre for opera and ballet and stage shows; and a 400-seat studio theatre for experimental drama. A nine-storey tower block will accommodate the offices of the Cultural Services Department and an arts library, and a restaurant block will house Chinese and Western restaurants, conference and lecture rooms. The administration and restaurant blocks are scheduled for completion in late 1983 and the auditoria block in late 1985. The cultural complex will also include a new permanent Museum of Art.


The Environment


THE Overall strategy for environmental protection continued to be developed during the year with recognition of Hong Kong's special needs and problems. The programme rests on three vital areas of legislation, consultation and the organisation of resources.


approved and proposed


Environmental protection legislation

is divided into five ordinances covering waste disposal, air and water pollution, noise control, and environ- mental impact assessment of projects. Each ordinance is intended to establish a framework for the drafting of detailed regulations. The general principle is to control polluting emissions by varying licence conditions according to local environmental requirements, rather than by the imposition of uniform standards.

      The Waste Disposal Ordinance improves on previous provisions for the collection and disposal of waste, as well as specifying the statutory authorities responsible for each duty. Sections of the ordinance, relating mainly to waste collection, have been brought into operation and gradual introduction of the remaining provisions will be carried out in phases, as staff become available for their implementation. Work is proceeding on the formulation of regulations under the ordinance to provide for the safe disposal to toxic and dangerous wastes, and on the preparation of a statutory Waste Disposal Plan which will set out government's long-term objectives for waste disposal.

The Water Pollution Control Ordinance, is designed to ensure proper control of pollution levels in local waters. The ordinance provides for the declaration of water control zones where different water quality objectives will be specified according to the beneficial uses of the areas such as recreation, fish-farming, irrigation and other activities. Considerable re- search and monitoring is being carried out prior to the introduction of these controls to en- sure that licence conditions will achieve the environmental quality objectives for each area. In doing so, a flexible approach is being adopted instead of the imposing blanket controls. The Air Pollution Control Bill is being prepared for enactment in 1982 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 industries which have emerged and developed in the past decade, or which can be expected in the future.

       The bill provides for air quality objectives to be defined in which maximum desirable concentrations of air pollutants, such as sulphur oxides and particulate matter, are iden- tified. Under the bill, a system of licensing will be applied to new developments which fall into a special category termed 'specified processes'. The legislation will provide for sub- sequent regulations to be introduced specifying maximum emission limits, fuel composition and other standards or codes of practice.




The Noise Control Bill is being drafted to consolidate the provisions which exist in different pieces of legislation, and will introduce new controls including these for neigh- bourhood, construction, industrial and building services noise where necessary. The bill is expected to be introduced in the Legislative Council by late 1982 or early 1983.

Progress on the Environmental Impact Assessment Bill is being made 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.


The principal consultative forum on environmental matters is the Environmental Pro- tection Advisory Committee (EPCOM) which advises government on all aspects of environmental protection, and in particular ensures that new environmental legislation is appropriate in balancing the need for environmental improvement against the require- ment that industry remains viable and competitive.

EPCOM (the chairman of which is an unofficial member) comprises 16 members, the majority of whom are prominent citizens and includes representatives of the three major industrial organisations, the Chinese Manufacturers' Association, the Federation of Hong Kong Industries, and the Hong Kong General Chamber of Commerce; and a representa- tive of the environmental group, the Conservancy Association.

There are also four special committees under EPCOM concerned with air pollution, noise, land and water pollution, and legislation. Each committee examines specific areas of pollution control in detail by seeking views from experts and academics, members of the public, industrial organisations and government departments.

These committees, during the year, discussed a variety of subjects including water pollution in Tolo Harbour, several landscaping proposals, an air pollution monitoring network, water quality objectives and water control zones, and waste management.

A provision for consultation on environment protection regulations and related matters is incorporated in all the new ordinances and requires the government to consult EPCOM on all proposed regulations, environmental quality objectives and standards. Draft legislation is discussed with organisations whose members may be affected by its enactment; for example consultations took place with the construction industry regarding controls over the use of powered mechanical equipment during evenings and public holidays.

Protecting the Environment

The task of making environmental protection policy has been the responsibility of the Administration and Environmental Affairs Branch of the Government Secretariat.

In November it was announced that responsibility for environmental affairs would be transferred to the Home Affairs Branch.

In early 1981 the Environmental Protection Unit, comprising a small nucleus of specialists inside the Government Secretariat, was transformed into the free-standing Environmental Protection Agency (EPA). The aim of the agency is to provide a central source of expertise and scientific data on all aspects of pollution control and to assume a central co-ordinating role in the formulation and execution of government policies in this field. This work involves establishing quality objectives, monitoring long-term trends in environmental quality, and assessing and advising on the environmental impact of major new developments.



Control units are also being created or strengthened in several government departments to enforce legislation, issue licences and provide surveillance and control for individual discharges or emissions. Their responsibility will be to ensure that the level of pollutants in any area does not result in a breach of quality objectives specified for that area.

      The strategy for environmental protection is to ensure that projects which could be potential sources of pollution incorporate adequate control measures at the initial stages. Developers must submit detailed environmental impact assessments to the government, as in the case of the new power stations at Tap Shek Kok and on Lamma Island where reports are made on aqueous and aerial emissions, and the visual impact on the stations were among the assessments examined.

Environmental studies of development areas, such as Junk Bay, which will provide industrial and residential land on the eastern side of Kowloon, also ensure environmental protection. These studies involve data gathering, measurement and analysis in order to determine the capacity of the Junk Bay environment to absorb or disperse polluting emissions and, on that basis, to establish control strategies for such emissions from the expected development.

Air Pollution

The Air Pollution Control Division of the Labour Department administers the Clean Air Ordinance, the Clean Air (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations, and the Clean Air (Restriction and Measurement of Smoke Emission) Regulations. The division is responsible for the control of smoke, grit and dust from stationary sources such as fuel-using plants.

      Plans and specifications for the installation or alteration of furnaces, ovens, chimneys or flues are submitted to the division 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 376 sets of plans and specifications which were submitted for approval under the Clean Air (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations. It inspected 7271 premises and advised industry on air pollution control matters. It also advised on the design of small scale incinerators for use in the New Territories.

The division also investigated 1 108 air pollution complaints, the majority of which were satisfactorily resolved while in some cases further examinations were required. Some 117 prosecutions were initiated under the Clean Air Ordinance and its subsidiary regulations, 15 for failure to abate smoke nuisances, 64 for emitting excessive dark smoke, one for failure to furnish information and 37 for unauthorised installation of furnaces, ovens or chimneys, resulting in 117 convictions and fines ranging from $500 to $2,000.

      The division assisted in carrying out a stack sampling exercise on the normal operation of the Kwai Chung Incinerator. Subsequent analysis of the heavy metals in the incinerator fly ash was undertaken by the Government Laboratory. The acidity of flue gases was also measured for the purpose of studying its corrosive effect on the electrostatic precipitator installed in the plant. Grit and dust burden of the chimney emission was also determined. This exercise was co-ordinated by the Air Quality Group of the EPA. Other stack sampling exercises were also performed, including a project for determining the efficiency of acid mist scrubbing equipment in acid works in the New Territories. During the year a contract was let for a trial installation of an electrostatic precipitator at the Kennedy Town Incinerator in an endeavour to reduce emissions from that source.



       The 12-month mean averages of sulphur dioxide recorded at the four daily monitoring stations at Hung Hom, Queen Elizabeth Hospital, Sham Shui Po and Central Market were respectively 102 ug/m3, 96 ug/m3, 18 ug/m3 and 36 ug/m3 and the corresponding smoke density readings were 22 ug/m3, 34 ug/m3, 62 ug/m3, 46 ug/m3. The highest daily reading of sulphur dioxide registered was 989 ug/m3 - which was below the maximum guideline of 1 310 ug/m3 recommended by the former Advisory Committee on Air Pollution.

An environmental survey, Project Simla, was conducted during 1981 under the co- ordination of the division and carried out by students from the Chemistry Department of the University of Hong Kong. Levels of carbon monoxide, lead particulates, sulphur dioxide and nitrogen oxides were examined in various districts.

Water Pollution

      The effects of strong coastal currents in Hong Kong's waters have helped to a large extent to dilute the severity of its pollution problems. With the main centres of population and industry being concentrated around Victoria Harbour a new treatment works is being built to serve north-west Kowloon, and existing outfalls are being extended to deeper water for better dispersion and dilution.

The establishment of new towns and the expansion of the industrial base in areas of restricted water circulation (such as Tolo Harbour) has led the Public Works Department to develop 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 capable of matching the quality of the effluent to the pollution absorption capacity of the surrounding waters. And in areas where bathing and recreation are important, sewage will be treated to a standard necessary 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.

Under the Water Pollution Control Ordinance, water control zones and water quality objectives are being established where necessary to enable the control authorities the Director of Public Works and the Director of Agriculture and Fisheries to implement appropriate measures over discharges which will maintain the water quality in relation to specific uses.

      As Hong Kong is also a party to a number of international maritime conventions concerned with oil and other forms of pollution, the Pollution Control Unit of the Marine Department is responsible for dealing with offshore oil pollution, the collection of floating refuse, control of all marine dumping activities, and surveillance of all aspects of oil transfer to and from ships. In an effort to detect and prevent any spillages, the unit inspects tankers discharging fuel oil and the various terminals. Since the unit's establishment, many pollution offenders have been successfully prosecuted. The maximum penalty, on convic- tion, is a fine of $200,000 and costs incurred in clearing or dispersing oil pollution are recoverable from offenders.

      To combat oil pollution, the unit has a purpose-built vessel equipped with pollution control facilities, a shallow draught workboat, stocks of low toxicity chemical dispersants, more than 2 400 metres of large and medium sized oil containment booms, polyurethane absorbents and an oil skimmer. A substantial inventory of oil pollution equipment within the government and oil companies can be deployed at short notice in the event of an emergency.

      Floating refuse is a perennial problem and during the year some 4 500 tonnes of floating refuse were collected from the harbour, including domestic refuse from ocean-going vessels in .port.



After extensive trials, three mechanical refuse collection vessels were delivered to the unit in 1981 as part of the overall mechanisation plan scheduled for completion in late 1982. This will substantially replace the manual collection services currently undertaken in Victoria and Aberdeen harbours, and introduce mechanised services at Cheung Chau, Tuen Mun and Sha Tin.

      The effects of water pollution on the stocks and quality of fish and shellfish around Hong Kong are investigated by the Marine Pollution Research Section of the Agriculture and Fisheries Department. It has also made studies of phytoplankton ecology in water bodies which could be enriched by nutrients thereby possibly producing algal blooms, including red tides, and causing fishkills. Although large catches of commercial fish are not taken from adjacent waters, Hong Kong does have an important mariculture industry based on floating cages and the industry is considered capable of expansion if water quality can be maintained. Funds have been approved for a new marine pollution research vessel to facilitate these aspects of research.

      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 agricultural waste emanating from about half-a-million pigs and seven 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 the Directors of Public Works, Agriculture and Fisheries, Urban Services and New Territories Services with statutory powers over waste collection and disposal.

Of the 2.3 million tonnes of solid waste generated in the territory during the year, about 65 per cent 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 handled some 797 000 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. The composting plant at Chai Wan processed about 90 500 tonnes of waste which was disposed of primarily at controlled tips.

      The New Territories Services Department continued with its experimental farm wastes collection schemes in Ta Kwu Ling and Hung Shui Kiu where the concentration of pig and poultry breeding has caused serious water course pollution. During the year, some 4 400 tonnes of agricultural waste was collected for disposal. Various other proposals for the treatment and utilisation of agricultural waste are still being considered.

Noise Pollution

Under the Summary Offences Ordinance it is an offence to make noise calculated to disturb public tranquillity between 11 p.m. and 6 a.m. This legislation also provides for the control of construction noise between 7 p.m. and 7 a.m. every day, and all day on Sundays and public holidays.

The Director of Public Works is authorised, under the Summary Offences (Permitted Work) Regulations, to issue and renew permitted work permits to allow contractors to use



powered mechanical equipment - other than for piling - during otherwise prohibited hours. In general, the issue of such permits is carried out in accordance with a non-statutory set of guiding principles which take into account the sensitivity of the area surrounding the site, the nature of the work, the type of equipment used and the times of operation. Exemptions for cases involving piling and important projects in the public interest where noise implications cannot be easily resolved require an order made by the Governor-in-Council. A liaison group comprising representatives of the government and the Building Contrac- tors' Association monitors the progress and implementation of the permitted work permit scheme. The group has also been involved in discussions on the control of daytime construction noise.

Under the Public Health and Urban Services Ordinance, the Urban Council and the Urban Services Department are the authorities for the urban areas and the New Territories respectively for the control of noise nuisance caused by air-conditioning and ventilating systems. A total of 414 complaints were received and investigated, and these led to the issue of 143 abatement notices and one prosecution.

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 responsi- ble 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 recreatioal 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 from January 1, 1981 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 recreational purposes, and the spread of urbanisation - both leaving very few areas, if any, that are suitable for hunting.



garud Tha SuperfriStar





Hub of the East

Hong Kong International Airport is one of the busiest in the world: every two and a half minutes during peak periods there is an aircraft movement and some 200 pas- sengers are processed. The ultra-modern facilities now available are a far cry from the humble advent of airport operations some 50 years ago when reclaimed land in Kowloon Bay was rented as a landing field for the inauguration of air services between Hong Kong and Guangzhou. It was not until 1932 that regular international services started with 1 185 passengers recorded for the year. Today, the airport handles some seven million passengers and almost 300 000 tonnes of freight a year with 31 airlines operating 960 scheduled passenger and cargo services each week. Another 15 other airlines also operate about 35 non-scheduled weekly services to and from the airport with about 70 per cent of all aircraft calling at Hong Kong being the wide-bodied type. After a four- stage development scheme spanning the last two decades, the airport reached a new milestone in late 1981 with completion of its long-term building programme, which provides enlarged arrival and departure facilities. Information on arrivals and departures of aircraft is given on both computerised display boards and closed circuit television.


Previous page: The airport apron has been enlarged to accommodate up to 33 aircraft at any one time. Left: Each airline has its own liquor and tobacco supplies kept in bondage at the airport; more than 9000 various items are taken on board each flight for passenger enjoyment; computers are used to service airlines with upwards of 20 000 meals daily for outgoing flights.






   Cargo being loaded forward and aft on a giant Boeing 747 at the new $117 million cargo terminal. The terminal can handle 500 000 tonnes of freight a year.





Modern fashion has had a big influence on airline uniforms as demonstrated in this gallery

of staff representatives for some of the 46 airlines which fly weekly into Hong Kong.









   Training in air safety procedures, using mock-up aircraft and equipment, is an important feature of the syllabus at Cathay Pacific's training centre at the airport.




5. FRA






1415 15







14.30 21

12.45 **



15.00 20

Hong Kong's team for the International Abilympics in Japan gather in excited anticipation at the airport's new departure hall.


The symmetry of a giant jumbo jet's engine dwarfs this technician who works for an engineering company which provides services for every airline operating at the airport.



       Overall enforcement of the ordinance is carried out by eight full-time nature wardens supported by more than 250 government officials with the powers of nature wardens, and some 20 honorary nature wardens. Justices of the Peace and police officers also have the statutory power of nature 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. More than 40 sites have 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 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 reclaimed from the sea. The areas surrounding Hong Kong's reservoirs and their water catchment areas have become part of the government's Country Parks Scheme.

      The most important agricultural area Hong Kong possesses is the flat alluvium around Yuen Long in the New Territories. These alluvial lowlands have emerged from the sea only within the last 2 000 to 3 000 years, and some coastal areas are still prone to flooding when heavy rainfall coincides with high tides. The natural deposition of sediment is continuing 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.



        Climate Although Hong Kong lies just inside 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, plenty of sunshine and comfortable temperatures. During January and February there is rather more cloud and occasional cold fronts followed by cold dry northerly winds which can at times be too cold for comfort. It is not un- common 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 troublesome on high ground exposed to the southeast.

       May and June are hot and humid with frequent showers and thunderstorms. These are most frequent in the mornings and afternoon temperatures often exceed 32°C. At night temperatures generally remain around 26°C with high humidities.

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 and about five of them become typhoons - that is with winds exceeding 33 m/s near the centre. Fully developed tropical cyclones generally have a relatively calm eye averaging 50 km in diameter surrounded by a wall cloud about 20 km thick in which the strongest winds rotate anti-clockwise and the heaviest rain occurs. Outside the wall cloud there are bands of cloud and rain spiralling in some 500-1 000 km towards the centre. Slow moving tropical cyclones generally produce the most rainfall especially if they approach Hong Kong from the south.

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 December to April. When a tropical cyclone is about 700-1 000 km southeast 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 winds increase and rain can become heavy and widespread. Heavy rain from tropical cyclones last from one to three days and consequent landslips sometimes cause more damage than the winds.

       The mean annual rainfall is 2 225 mm 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 431.8 mm. The driest month is December when the monthly average is only 25.3 millimetres and when rain usually falls on only about five days in the month. October is the sunniest month when an average of 58 per cent of possible hours of sunshine is recorded. Climatological information on Hong Kong's weather is given in Appendix 39.

       The severe weather phenomena that can affect Hong Kong include tropical cyclones between May and November, strong winds from the winter monsoon between October and March, frost and ice on hills and inland in the New Territories between December and February, and thunderstorms that are most frequent from April to September. Water- spouts, hailstorms and snow are rare. Although the lowest temperature recorded at the Royal Observatory in Tsim Sha Tsui is 0°C, sub-zero temperatures are recorded at times at higher elevations and in the New Territories.

The Year's Weather

      1981 was the eleventh driest year on record. Rainfall at the Royal Observatory was only 1 659.5 mm compared to a normal of 2 224.7 mm with the deficit mostly occurring in June



and August. It was interesting to note that Guangzhou recorded 2 220 mm which was about 30 per cent above normal while Yangjiang, about 200 km west of Macau, had a remarkable 3 042 mm. The year was also generally hot in Hong Kong. The mean minimum temperature of 21.2°C and the mean temperature of 23.1°C were the second and the fifth highest on record respectively. The number of tropical cyclones in the western North Pacific and China seas was near normal and tropical cyclone warning signals were hoisted in Hong Kong on five occasions. Severe Tropical Storm Lynn was the only tropical cyclone that came close enough to cause gales in Hong Kong.

      There was no measurable rainfall during January as in four previous dry periods of the month in 1884, 1914, 1932 and 1966. The total rainfall during December 1980 and January 1981 amounted to only 0.7 mm which was the lowest on record for the two-month period. A sunny spell started on January 9, and lasted until January 20.

      The winter was quite mild and the mean temperature from December 1980 to February 1981 was 17.3°C which was the sixth highest on record for this period. February was more humid with 17 misty days, nine of which coastal fog was reported. The misty spell persisted from February 13 to 25. Fog was widespread on February 14 and a three-decker ferry with 564 passengers onboard ran aground on Green Island around 9 a.m., but there were no casualties. An intense cold front passed Hong Kong on February 24 and the minimum temperature of 9.5°C recorded on February 27 was the lowest in the year.

      March was wetter and warmer than usual. The mean temperature of 20.6°C was the third highest on record for March. The most significant weather event in the month was the hailstorm on March 19. This made 1981 the third consecutive year with hail recorded in Hong Kong but only the seventh since 1940. Following an observation of a funnel cloud over the sea to the south of Cheung Chau around noon on that date, hail was reported from 5.35 p.m. to 6 p.m. over Kowloon and again from 9.43 p.m. to 11.10 p.m. over Hong Kong Island and parts of Lantau Island. This was the most widespread hailstorm over the urban areas since 1940. Some of the hailstones were reported to be as broad as the rim of a rice bowl, about 100 mm in diameter. Corrugated plastic shelters in car parks and on roof-tops were punctured. Although some newspapers reported hailstones the size of wash-basins, killing seven people and various livestock in Guangdong, no hail damage was reported by farmers in the New Territories. There were also six days with thunderstorms in March which was the highest number on record for March in post-war years. Squally thunder- storms accompanied the passage of a cold front around 3.30 a.m. on March 15. Gusts reached 33 m/s at Cheung Chau and a 16-year-old girl was drowned when a junk capsized off Chi Ma Wan.

      April was hotter and drier than usual. The month's mean temperature of 24.2°C was the highest on record and equalled those in 1975 and 1977. April was the seventh consecutive month with above normal temperatures and there were eight days with thunderstorms during the month.

      May was cooler and wetter than usual. A cold front arrived on the morning of May 3 with northerly winds, and hail was reported by a pilot flying about 200 metres over Lei Yue Mun Gap at 2.35 p.m. Thunderstorms and heavy showers occurred on May 10, 11 and 31. There were numerous landslips and flooding was reported in Sha Tin and Tai Po.

      June 1981 was the third driest June since records began. The month's total rainfall of 106.4 mm was 325.4 mm below normal. Never-the-less heavy showers on June 5 caused a landslip on King's Road, killing one person. Severe Tropical Storm Ike recurved near Hainan and struck Taiwan on June 13. A funnel cloud was sighted at Yung Shue Wan, Lamma Island, around 8.40 a.m. on June 27.



       July was cloudier and slightly cooler than usual. Winds were strong on July 3 as Typhoon Kelly crossed the South China Sea. The only gale or storm signals of the year were hoisted for 28 hours 45 minutes for Severe Tropical Storm Lynn which passed about 150 km to the southwest on July 7. Some 32 people were injured, mostly by falling objects. In western Guangdong, five people were killed and there was considerable damage. A sunny spell lasted from July 9 to 17. The maximum temperature of 33.3°C on July 17 was the highest of the year. There were thunderstorms on July 22 and 23 as the remnant of Severe Tropical Storm Mary moved along the South China Coast after hitting Taipei. More thunderstorms occurred on July 27 causing flooding and minor landslips in various parts of Hong Kong. In Sichuan, violent rainstorms between July 9-14 caused the province's worst floods of the century. About 750 people were drowned and 1.5 million people made homeless. There were also serious floods in the northern part of India and about 15 million people were affected.

      August 1981 was the fourth driest August on record. However, serious floods affected northern Thailand, Burma, Japan, Korea and also the Shaanxi, Sichuan and Liaoning provinces of China. August 1981 was also the second hottest August on record with a mean temperature of 29.1°C. Nine tropical cyclones developed over the western North Pacific and the South China Sea during the month. Winds freshened on August 8 as Tropical Storm Roy crossed the South China Sea. Temperatures rose to a maximum of 33.3°C on August 21 and 26, the same as on July 17 and the highest of the year.

      September was wetter, cloudier and slightly cooler than usual. The total duration of sunshine during the month was 132.3 hours, which was the third lowest on record for September. A fishing junk foundered in squally thunderstorms about 90 km west- shouthwest of Hong Kong on September 3. All the fishermen were saved. Typhoon Clara caused a period of strong northwesterly winds during the night of September 21. It crossed the China coast near Shanwei on September 22 causing the death of 62 people in south China. Another junk capsized in squally thunderstorms about 70 km east of Hong Kong on September 24. Three people were drowned. Widespread thunderstorms and violent showers occurred early on September 29, making it the wettest day this year. The heaviest downpour occurred between 2 a.m. and 4 a.m. when 182.0 mm of rainfall were recorded at Hong Kong International Airport. There were numerous reports of flooding, landslips and road subsidences. Three people were killed.

October was slightly cooler and cloudier than usual. The total rainfall from June to October amounted to only 1 018.3 mm, which was the seventh lowest on record. The Strong Monsoon Signal was hoisted on four occasions during the month. A Chinese freighter ran aground and sank off Mirs Bay late on October 4. The crew of 29 were saved. Heavy showers on October 5 resulted in a five-tonne boulder rolling down a hillside adjoining Ching Cheung Road, Cheung Sha Wan, and making a seven-square metre hole in a classroom wall. No one was hurt. An intense cold front arrived on October 22 and the minimum temperature of 14.8°C reached on October 24 was the third lowest on record for October.

November was cooler and cloudier than usual. The Strong Monsoon Signal was hoisted on four occasions during the month. A cold front brought heavy rain on November 2. Northerly winds on November 30 resulted in a Chinese junk sinking in rough seas about 40 km southeast of Hong Kong with 13 crewmen reported missing.

December was drier and sunnier but cooler than usual. The continental anticyclone dominated China throughout the month and the mean sea-level pressure of 1022.6 hectopascals in Hong Kong was the second highest on record for December. A fine and



sunny spell persisted from December 10-27. Some frost was reported at Tai Lung Farm on December 3 and 20. The minimum temperature of 9.5°C at the Royal Observatory on December 20, as on February 27, was the lowest of the year. On Tai Mo Shan, temperatures dropped to 0.0°C. Fire danger warnings were in effect during 29 days of the month. According to newspaper reports some 30 000 people were made homeless by a succession of disastrous fires mostly in squatter areas.

The Royal Observatory

The Royal Observatory was established in 1883 mainly to provide scientific information for the safe navigation of sailing ships. The headquarters of the department has remained in the same building for 98 years and is now surrounded by high rise apartments. A new nine-storey office block is being built beside the original headquarters and is scheduled for completion in 1982.

      The most important function of the department is the provision of weather information and tropical cyclone warnings for the public and for shipping and aviation. Forecasts for the public are prepared in the Central Forecasting Office and broadcast over radio and television at frequent intervals. Warnings of thunderstorms, heavy rain, fire danger and frost are issued whenever necessary. Special forecasts are issued for fishermen and yachtsmen in various marine areas.

      Services for aviation are provided by the Airport Meteorological Office. About 80 aircraft each day are provided with meteorological prognostic charts and landing forecasts. Special warnings are issued for adverse weather. A micro-processor based system was built and installed by the Royal Observatory to provide a continuous display of wind shear in the approaches to the airport.

On average, 31 tropical cyclones form in the western North Pacific or China Seas every year and about half of them reach typhoon intensity (maximum winds of 33 m/s or more). Warnings and forecasts are issued every three hours for ships at sea, for shipping companies and airlines. Objective forecasts are made by computer and exchanged with neighbouring centres. Whenever tropical cyclones threaten Hong Kong, warnings and statements are issued at frequent intervals and widely distributed. In order to provide these services the observatory collects about 20 000 weather reports each day from land stations, islands, ships and aircraft. Coded messages are analysed by the observatory's computer and exchanged automatically with neighbouring countries. A large volume of historical weather records have been accumulated on magnetic tapes. These are used to answer climatological enquiries from a variety of organisations such as engineering consultants, universities, utilities, insurance and legal firms both in Hong Kong and overseas.

Instruments and Observations

      1981 was the first full year in which high resolution satellite pictures from the Japanese Geostationary Meteorological Satellite (GMS) were available in Hong Kong. The pictures are recorded on magnetic tape in digital form and any area can be enlarged and enhanced by micro-processors to make it possible to locate the centre and estimate the maximum winds in a tropical cyclone.

       Also during the year an order was made to replace the observatory's weather radar at Tate's Cairn. The new radar will be delivered in 1982 and will be able to print out rainfall rates over a wide area and also archive the data for climatological and research purposes. It will also provide remote displays on colour television sets. The old radar will still be maintained as a standby.



The observatory broadcasts on 95 MHz time signals accurate to a few micro-seconds from its Caesium beam atomic clock. The last pip of the six pip signal starts on the quarter hour.

      The observatory has also commissioned a new upper air sounding system. Instead of being tracked by radar the new radiosondes relay Omega navigation signals to the ground station at King's Park and a mini computer calculates the upper winds from changes in the phase of these signals.

Regular meteorological observations are made at the Royal Observatory, Kai Tak, Cheung Chau and Chek Lap Kok, by the Marine Department at Waglan Island and Green Island and by the Royal Navy at Tai O. Analyses of meteorological conditions at Chek Lap Kok are being made for the planning study for the proposed new international airport. The observatory operates more than 100 raingauges suitably sited throughout the territory. There are also 21 anemometers installed in different locations, of which 15 are operated by the Royal Observatory and six by other organisations. Winds recorded at the Star Ferry Pier, Kowloon, representing conditions in the harbour; are telemetered to the observatory. A spherics recorder is used to register thunderstorm activity within a range of about 100 km. Tide readings from gauges located at Tai Po Kau and North Point are telemetered to the observatory. These provide valuable data for warning floods during the approach of tropical cyclones. A new wave recorder installed at Waglan Island gives continuous records of wave height and period. The observatory also provides instruments for about 40 selected voluntary observing ships.

Two new acoustic radars were installed near Chek Lap Kok to investigate wind shear and turbulence in connection with the planning and design 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 were made in co-operation with the University of Hong Kong at Tate's Cairn and regular measurements of Beta and Gamma radioactivity are made at King's Park Meteorological Station.

A network of the three short-period seismometers at Cheung Chau, High Island and Tsim Bei Tsui are connected to a micro-computer at the Royal Observatory. The system detects earthquake tremors throughout Southeast Asia and calculates the position of the epicentres. Two earthquakes in China located by the system were felt by residents in Hong Kong in 1981. The first occurred near Hai Feng on April 9 while the second occurred near Heyuan on May 4. Long-period seismographs in a cellar beneath the observatory lawn record tremors from all over the world. The two largest earthquakes recorded were both of Magnitude 7.5 on the Richter scale; one on May 25 near the Auckland Islands and the other on September 1 near Western Somoa.




THE total estimated population at the end of 1981 was 5 207 000, comprising 2 716 800 males and 2 490 200 females. The estimate is based on the Population Census taken in March 1981, adjusted for subsequent births, deaths and migration. This represents an increase of 27 per cent on the 1971 population estimate of 4 090 500.

       The average annual rate of increase over the 10-year period was 2.4 per cent, with the rate fluctuating from year to year because of changes in migration flow. During the years 1978-80 in particular, there was large-scale immigration from China - both legal and illegal and a massive influx of boat refugees from Vietnam. The average annual growth rate increased from 1.8 per cent over the period 1971-7 to 3.9 per cent over the period 1978-80. The annual growth rate for 1981 was 1.7 per cent due to a reduction in the inflow of immigrants as a result of a revision of immigration policy at the end of 1980.

      At the same time, the rate of natural increase dropped steadily over the period from 15 to 12 per

thousand. This was the result of the birth rate declining from 20 per thousand in 1971 to 17 per thousand in 1981, 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 resulted from there being fewer women in the prime child-bearing ages of 25 to 34, and from women generally having fewer children. This latter reason was the main factor in the decline during the remainder of the 10-year period. In recent years, later marriages, and improvements in education and job opportunities, have also contributed to this trend.

       The 1981 Census indicated that the increase in population of the New Territories, particularly the new towns, over the 10-year period was especially substantial. The proportion of the population in the New Territories rose from 17.2 per cent in 1971 to 26.1 per cent in 1981 and in absolute terms from 675 582 to 1 303 005. On the other hand, the marine population continued to decrease during this period. Its number in 1981 was less than two-thirds of that in 1971. The populations of Hong Kong Island (1 183 621), Kowloon (799 123) and New Kowloon (1 651 064) rosę at slower rates than the overall average during the period.

       Hong Kong, with a land area of only 1 061 square kilometres, is one of the most densely populated places in the world. The 1981 Census recorded an overall density per square kilometre of 4 760. But this figure conceals wide variations in density between individual areas. The density for the metropolitan areas of Hong Kong Island, Kowloon, New Kowloon and Tsuen Wan was 28 479 people per square kilometre; but for the New Territories it was 792 per square kilometre. The most densely populated district was Sham Shui Po, with 165 445 people per square kilometre. This will, of course, change with the development of new towns in the New Territories. Seven new towns are being developed to alleviate the high density in the urban areas and to help provide an increasing population with better housing and an improved living environment.



      The 1981 Census indicated that the sex ratio of the population was 1 093 males to every 1 000 females which compares with 1 033 in 1971. The increase in the proportion of males over females during the 10-year period is a result of the large influx of illegal immigrants, who were predominantly young and male.

The population of Hong Kong is still young; the 1981 Census reveals that 36.1 per cent were below the age of 20. But the median age of the population was 26, compared with 21.7 a decade ago. The age distribution of the population has also changed con- siderably. In 1971, 35.8 per cent of the population were under 15; in 1981 the figure was 24.8 per cent. The proportion of those aged 65 and above has risen from 4.5 per cent to 6.6 per cent. As a result of these changes, the proportion of the population of working age (those aged 15 to 64) has increased from 59.7 per cent to 68.6 per cent, indicating 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 674 per thousand in 1971 to 457 per thousand in 1981.

The 1981 Census showed that 57.2 per cent of the population were born in Hong Kong. About 98 per cent of the population can be described as Chinese on the basis of place of origin. Most of these people originated from Guangdong Province. Those from Guang- zhou, Hong Kong, Macau and adjacent places forms the largest community while the second largest group is Siyi, followed by the Chaozhou group. The remaining Chinese population have their origins in other parts of Guangdong and other provinces of China. Of the non-Chinese population, about a quarter were from the United Kingdom and less than a third from countries in Southeast Asia.

At the end of 1981, the estimated number of non-Hong Kong Commonwealth citizens residing either permanently or temporarily in Hong Kong was 666 000. These comprised: British: 22 300 (excluding members of the Armed Forces); Indian 14 200; Malaysian 8 900; Australian 7 800; Singaporean 4 400; Canadian 4 200; and other Commonwealth countries 4 800. The estimate for non-Commonwealth permanent and temporary residents was 72 900. Of these, the largest groups were: Filipino 15 100; American 11 500; Pakistani 7 500; Japanese 6 800; Thai 8 600; Portuguese 7 000; Indonesian 3 500; German 2 100; Korean 1 900; French 1 400 and Dutch 1 100.


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 Marriage. 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-


      Marriages may take place either at places of public worship licensed for the celebration of marriages, or at any of the 13 full-time marriage registries and four part-time sub-registries located in the main urban districts and rural centres. During the year, 48 203 marriages were performed in the registries and 2 935 at licensed places of worship. The total of 51 138 was 293 more than in 1980. All records are maintained at the principal marriage registry at the City Hall.

       During the year additional marriage chambers have been provided and an attractive new marriage registry was opened in Rawlinson House, an old building within a park setting at Victoria Barracks.



Many couples wish to be married over the weekends (especially when the auspicious days of the lunar calendar fall on Saturday or Sunday). To meet this demand, arrangements have been made for the principal marriage registries to operate on Saturdays and Sundays. All registries also make provision for group marriages. As a result of the additional facilities and extended working hours, the average waiting time for registration of a marriage at the popular registries has been reduced from about three months to less than one month.

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 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, 53 customary and 17 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, 87 104 live births and 24 978 deaths were registered, compared with 85 406 and 25 987 respectively, in 1980. The figures, when adjusted for under registration, gave a natural increase in population for 1981 of approximately 61 954.

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, 1 171 births were post-registered.

The Immigration Department is responsible for the registration of births, deaths and marriages in Hong Kong.





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. The rapid spread of urban development has been offset by the territory's generally hilly topography, and the designation of water catchment areas and country parks. By constraining building developments, for the most part, to shores, foothills and reclamations, large expanses of the countryside have been preserved - and with it, a wide variety of the indigenous animal and plant life.

       Most of Hong Kong's countryside is protected by the Forests and Countryside Ordinance, the Wild Animals Protection Ordinance, the Country Parks Ordinance and the Animals and Plants (Protection of Endangered Species) Ordinance. The Wild Animals Protection Ordinance was amended to totally ban game hunting from January 1, 1981. Underlying the ban was 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 where a firearm may be discharged without the risk of endangering human life.


The Mai Po Marshes, 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 mangroves provide a very rich bird habitat, particularly for ducks and waders. Of more than 250 species of birds which have been recorded in this area, at least 110 are rarely seen elsewhere in the territory.

Yim Tso Ha, also restricted, is the largest egretry in Hong Kong and five species the Chinese Pond Heron, Night Heron, Cattle Egret, Little Egret, and the rare Swinhoe's Egret nest there regularly. About 1000 egrets can be found there during the nesting season between April and September. Another egretry near Mai Po is visited by most birds except the Swinhoe's Egret and Night Heron.

      Although traditional fung shui woods near the older villages and temples are diminish- ing, they continue to provide a very important habitat for many birds. Sightings in wooded areas include 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), which grows to a length of about one metre and is protected by horny scales, is seen occasionally. Areas around the Kowloon reservoirs are inhabited by monkeys that originated from specimens either released or which escaped from captivity. There are breeding groups of both Long-tailed Macaques and Rhesus monkeys. Smaller mammals are common, with the Grey Shrew and the House Shrew being numerous in some rural areas. The Chinese



Porcupine, with its strikingly-coloured black and white quills, is still present in parts of the New Territories and on Hong Kong Island.

Once, wild pigs were sufficiently scarce to warrant protection by law, but their numbers. have increased to such an extent that the damage they have done to crops resulted in bitter complaints from farmers. Consequently, they were removed from the Wild Animals Protection Ordinance and special culling exercises have been organised by the Royal Hong Kong Police to reduce their threat to crops.

Occasional reports are still received of sightings 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; the Red-necked Keelback with vermilion neck; and the White-lipped Pit Viper or Bamboo Snake. The Bamboo Snake is bright green and less venomous than others, but it is not easily seen and strikes readily if closely approached. The Hamadryad, Kraits and Corals prey almost exclusively on other snakes.

Several species of sea snakes - all venomous - are found in Hong Kong waters, but they have never been known to attack bathers. An amphibian of special interest is the Hong Kong Newt, which has not been recorded elsewhere in the region.

       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, including 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).

      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 its introduction to Hong Kong in 1938, the African Giant Snail has become a major pest in vegetable crops and gardens. Farmers are also troubled by several slugs. One of these, Veronicella, is a large, black slug sufficiently different from the other slugs to be placed in a separate family.

Aquatic Life

Marine life forms in Hong Kong are diverse and mainly tropical in character. They include a large number of commercially important species of fish, crustacea and molluscs. The types and quantities of fish prevalent fluctuate according to seasonal influences and also vary according to the area. The waters of Hong Kong can be broadly divided into a western sector, influenced by the Zhu Jiang River and predominately brackish, and an eastern



sector, subject to the influences of the open sea. Various locations provide natural propaga- tion 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.

       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 Hammerhead Shark and species of the True Shark family, 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.


The Hong Kong Herbarium is more than 100 years old. This government institution, which contains about 34 000 plant specimens, is responsible for collecting, classifying and main- taining authoritative preserved plant specimens representative of Hong Kong flora. It also disseminates knowledge and information by maintaining an index of scientific, Chinese and English common names for the plants of Hong Kong. The herbarium, at the headquarters of the Agriculture and Fisheries Department 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 there are about 2 600 species of vascular plants, both native and introduced and 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 increas- ingly 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 wood- 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 woodlands 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 accordance with ancient tradition.

       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).



      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. And among those used in traditional Chinese herbal medicines are psychotria rubra, Ardisia crispa and Strophanthus divaricatus, which are considered good for bruises and certain injuries.

       Botanical explorations carried out by the Hong Kong Herbarium, the territory's two universities and amateur botanists, have been productive. One tree species new to science was discovered during the year and has been named Persea Kadooriei.

Zoological and Botanical Gardens

The Hong Kong Zoological and Botanical Gardens, managed by the Urban Council, was established as the Botanic Gardens in 1871 with an area of 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, 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, Red Mantle Saddleback Marmosets, and Mouse Deers. 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 800 specimens representing about 300 species are housed. An excellent breeding record for birds in captivity has been achieved in recent years, including success with the White-naped Crane and the Count Raggi's Bird of Paradise, the latter being only the fifth instance on record in the world.

      The success of the bird collection is encouraging the creation of aviaries in the Urban Council's public parks. As a first step, a new display aviary has been built in an attractively landscaped setting in Kowloon Park to supplement the existing open aviary in Victoria Park, while in the Zoological and Botanical Gardens a substantial new free-flight aviary is under construction.




THE dynamic drive of its people and their determination to survive a continual barrage of problems - mainly caused by external influences - has led to Hong Kong's reputation as being a leading international financial and trading centre.

It has had to face massive influxes of immigrants (both legal and illegal) and refugees which placed increased social pressures on its people. And as a financial and trading centre, it has had to adapt quickly to international monetary fluctuations and trade restrictions.

When Hong Kong Island was founded a British settlement 140 years ago, the population was about 3 650 people living in 20 villages and hamlets and 2 000 fishermen living onboard their boats in the harbour. Today, with a land area of 1 060 square kilometres (including the New Territories), the population is some 5.1 million.

Paradoxically, in its early days Hong Kong was not viewed as a desirable place to inhabit. Prior to its cession to Britain by China in January, 1841, the territory was regarded as an uninviting prospect for settlement. 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 burgeoning entrepôt trade with China.

Its history has been one of material and social improvement; the expansion of its city and towns by cutting into rock and by reclaiming the land from the sea, the building of homes, schools, hospitals and other forms of public service to meet the demands of the expanding population.

Its people, by their industry and business acumen developed the infrastructure and services which allowed the small territory to thrive.

Archaeological Background

Archaeological studies in Hong Kong, which began in the 1920s, have uncovered Stone Age artefacts at numerous sites scattered along the winding shoreline, testifying to events stretching back over several thousand years. More recently, extensive excavations at Sham Wan on Lamma Island and Chung Hom Wan on Hong Kong Island have revealed two main neolithic cultural traditions lying in stratified sequence. At lower levels there is coarse, cord-marked pottery together with finer decorated pottery, and chipped and polished stone tools. Cultural comparisons supported by several scientific datings indicate that the 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 Kau Sai, Po Toi and Cheung Chau Islands; and at Big Wave Bay, on Hong Kong Island.

China's military conquests during the Qin 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 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.

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 other Chinese who had gradually assumed sway over the region.

A Place from Which to Trade

     Hong Kong's development into a commercial centre began with its founding as a British colony in 1841. At the end of the 18th century the British dominated the foreign trade at Guangzhou but found conditions unsatisfactory, mainly because of the conflicting view- points of two quite dissimilar civilisations.

      The Chinese regarded themselves as the only civilised people and foreigners trading at Guangzhou 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 the



British and Chinese traders. 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, 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 ships 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 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 terms. The cession of a part of China aroused shame and anger among the Chinese, and the unfortunate Qishan was ordered to Peking in chains. Palmerston was equally dissatisfied with Hong Kong, which he contemptuously described as 'a barren island with hardly a house upon it', and refused to accept it as the island station that had been demanded as an alternative to a 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, 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, deviated



from his instructions by successfully demanding both a treaty and an island, thus securing Hong Kong. In addition, five Chinese ports including Guangzhou were opened for trade. The commercial treaty was embodies in the supplementary Treaty of 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, 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 disappeared. The area was declared part of the colony but was administered separately from the urban area.

Initial Growth

The new colony did not go well as 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 population rose from 32 983 (31 463 Chinese) in 1851, to 878 947 (859 425 Chinese) in 1931. The Chinese asked only to be left alone and thrived under a liberal British colonial rule. Hong Kong became a centre of Chinese emigration and trade with Chinese communities abroad. Ocean-going shipping using the port increased from 2 889 ships in 1860, to 23 881 in 1939. The dominance of the China trade forced Hong Kong to conform to Chinese usage and to adopt the silver dollar 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



were each

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 to 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.

      A Sanitary Board was set up in 1883, became partly elected in 1887, and developed into an Urban Council in 1936. The intention, at first, was to govern the Chinese through Chinese magistrates seconded from the mainland. But this system of two parallel administrations was only half-heartedly applied and broke down mainly because of the weight of crime. It was completely abandoned in 1865 in favour of the principle of equality of all races before the law. In that year, the Governor's instructions were significantly amended to forbid him to assent to any ordinance 'whereby persons of African or Asiatic birth may be subjected to any disabilities or restrictions to which persons of European birth or descent are not also subjected'. Government policy was laissez-faire, treating Hong Kong as a market place where all were free to come and go and where government held the scales impartially.

      Public and utility services developed - the Hong Kong and China Gas Company in 1861, the Peak Tram in 1885, the Hong Kong Electric Company in 1889, China Light and Power in 1903, the electric Tramways in 1904 and the government-owned Kowloon-Canton Railway, completed in 1910. There were successive reclamations dating from 1851 notably one completed in 1904 in Central District, which produced Chater Road, Connaught Road and Des Voeux Road, and another in Wan Chai between 1921-9.



      A system of public education began in 1847 with grants to the Chinese vernacular schools. 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.

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 strong nationalist and anti-foreign sentiment - inspired both by disappointment over failure at the Versailles peace conference to regain the German concessions in Shandong (Shantung), and by the post-war radicalism of the Kuomintang. The Chinese 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. 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 War 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 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 community remained loyal to the allied cause. Chinese guerillas operated in the New Territories and escaping allied personnel were assisted by the rural population.

Soon after news of the Japanese surrender was received on August 14, 1945, a provisional government was set up by the Colonial Secretary, Mr (later Sir) Frank Gimson. Rear Admiral Sir Cecil Harcourt arrived, on August 30, with units of the British Pacific Fleet to establish a temporary military government. Civil government was formally restored on May 1, 1946, when Sir Mark Young resumed his interrupted governorship.

The Post-War Years

Following the Japanese surrender, Chinese civilians - many of whom had moved into China during the war - returned at 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.

      About three quarters of a million refugees - mainly from Guangdong 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.

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, watches and clocks, electronic products and other light industries.

      In development of these post-war years, Hong Kong continued to build up its role as an entrepôt with its neighbours and trade with China has been no exception. Coupled with tourism, this has led to vast improvements in communications and during 1981 an average of 14 000 people a day entered China from or through Hong Kong, its natural gateway. The territory's flag carrier Cathay Pacific, has two flights a week to Shanghai and China's CAAC has three daily flights to Guangzhou, six a week to Shanghai, five a week to Peking, thrice weekly to Hangzhou and twice weekly to Kunming. Direct bus services - a British and Chinese joint venture - were introduced in June with three departures daily between Hong Kong, Shantou, Huiyang and Xienning. This was later upgraded to six departures



daily to 10 destinations in Guangdong. There are also daily hoverferry services and through train services to Guangzhou. A new immigration and customs post has been opened at Man Kam To on the border and work has started on improvements to the railway station at Lo Wu.

The development of Hong Kong's economic base has enabled the government to increase spending on social services over the years - from $1,188 million in 1971-2 to an estimated $11,906 million in 1981-2. Expenditure on education facilities and improvements for its young and vibrant population has always been utmost in budget preparations and there are now places for every secondary school student up to the age of 15 years. Accommodation has always been a problem with a rapidly growing population and expenditure in this field has increased accordingly. More than two million people now live in some form of public housing managed by the Housing Authority. Public housing flats are 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. To keep pace with this development and a policy of decentralisation, the government is commited to improving the infrastructure and an estimated $3,650 million, about 13 per cent of expenditure, is being spent on transport, roads, civil engineering and land during 1981-2.


Constitution and Administration

UB 1 Hi

HONG KONG is administered by the Hong Kong Government and organised along the lines traditional for a British colony. The local head of the government is the Governor. The central government is served by two main advisory bodies - the Executive Council and the Legislative Council. The British Government's policy towards Hong Kong is that there shall be no fundamental constitutional changes for which there is, in any event, little or no popular pressure.

The Governor

The Governor is the representative of the Queen. As head of the government, he presides at meetings of both the Executive and Legislative Councils. Sir Murray MacLehose was appointed Governor in Hong Kong in November, 1971. In the 1982 New Year's Honours List Sir Murray was created a Life Baron. On December 22, 1981, the Queen announced that Sir Murray would be succeeded in April 1982 by former British Ambassador to China, Sir Edward Youde. All Bills passed by the Legislative Council must have the Governor's assent before they become law. With strictly defined exceptions, he is responsible for every executive act of the government and consequently exerts considerable influence on the way Hong Kong is run.

The Governor is appointed by the Queen and derives his authority from the Letters Patent passed under the Great Seal of the United Kingdom. The Letters Patent create the Office of Governor and Commander-in-Chief of Hong Kong, and require him to observe its law and instructions given 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 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 Instruction, the Governor decides on matters to be put before the council. However, should he not agree to a request by a member for discussion of a particular matter, a record of both request and refusal must be entered in the minutes of the council should the member so desire.

Decisions on matters considered by the council are taken by the Governor. But if he decides to act against the advice of the majority of members, he is required to report his reasons to the Secretary of State.

The Governor in Council -- the Governor acting after receiving the advice of the council - 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

In August, 1980, the maximum potential membership of the Legislative Council was increased 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 24 official and 27 unofficial members, which leaves room for expansion within the approved maximum when the need arises. All members, except the Governor and other ex-officio members, are appointed by the Queen or the Governor on the instructions of the Secretary of State.

The primary functions of the Legislative Council are the enactment of legislation and control over the expenditure of public funds. The Queen has the power to disallow laws passed by the council and assented to by the Governor. In addition, laws having effect within Hong Kong 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 government policy follows the Governor's address at the opening of the new session of the council in October each year. The budget debate on financial and economic affairs takes place in February and March each year during the second reading of the Appropriation Bill.

The Finance Committee of the Legislative Council consists of the Chief Secretary (Chairman), the Financial Secretary, the Secretary for Lands and Works and all the unofficial members of the council. It meets in private for the scrutiny of 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 when requests for supplementary provisions and financial commitments are considered. It has two sub- committees, the Establishment Sub-Committee and the Public Works Sub-Committee. The Establishment Sub-Committee examines staffing proposals for directorate posts and for the creation of new ranks in detail, and makes recommendations on them to the Finance Committee. It also examines proposals for reviews of the establishments of departments. The Public Works Sub-Committee reviews the progress and priority of capital works in the Public Works Programme, and makes recommendations to the Finance Committee on proposals for changes to the 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 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.


As leading members of the community, Unofficial Members of the Executive and Legislative Councils (UMELCO) have significant roles in the administration of Hong Kong. They advise in the formulation of government policies, participate in the enactment of legislation, consider complaints by members of the public against government depart- ments and monitor the effectiveness of public administration. As representatives from a cross-section of the community, they hold more than 300 seats outside the two councils on various committees and boards concerned with community affairs.

       Members are supported by the UMELCO Office which provides administrative services, research facilities and the capacity to handle complaints. Each year hundreds of individual grievances or appeals against government practices and policies are considered and, where necessary, brought to the attention of appropriate departments. In carrying out this function the Unofficial Members have access to government records and to senior officials and, in appropriate cases, they challenge established practices and policies. When necessary they bring any sufficiently important issue to the attention of either of the two councils. The UMELCO Police Group, which consists of seven unofficials and the Attorney General, monitors the handling of complaints by the Complaints Against the Police Office. Similarly the ICAC Complaints Committee, comprising six unofficials and the Attorney General, monitors the handling of complaints against the Independent Commission Against Corruption.

       In addition to their work on the Executive and Legislative Councils, unofficial members spend much time on informal groups examining draft legislation and proposals for new policies. When necessary, these groups have comprehensive discussions with interested members of the public and government officials which not infrequently result in amend- ments to proposed policies and legislation.

District Administration

The aim of the district administration scheme, approved by government in January 1981, is to give the people of Hong Kong more say in those government services and policies that affect the districts in which they live and to make it easier for the needs of each district to be identified and provided for. There are three main features to the scheme: The establishment of a management committee in each of the 18 districts in the urban areas and New Territories where senior government officials concerned with district matters can meet and make sure that they are working together in the interest of the district; the establishment of district boards where government officials on the committees, with unofficials and elected representatives of local residents, can consider district issues and proposals for changes and improvements; and the creation of an expanded opportunity for public participation in administration by holding elections on a constituency basis to add a directly elected element to the district boards.



Electoral System for the Urban Council and District Boards

A new system based on electoral constituencies will be introduced for both the Urban Council and district board elections. For the Urban Council elections, the urban areas will be divided into 15 constituencies, each of which will return one elected member to the council. An elected Urban Council member will also have a seat provided for him on the district board relating to his constituency. For the 18 district board elections, the whole of Hong Kong will be divided into 122 constituencies - 76 in the urban areas and 46 in the New Territories - each of which will have one elected member to its district board (there are however 10 constituencies in the New Territories which will return two elected members each).

Elections to both the Urban Council and district boards will be held on a three-year cycle, but in different years. The first district board elections will be held in the New Territories in March 1982 and in the urban areas in September 1982. The next elections for all district boards will be in March 1985. The franchise for both the Urban Council and district board elections is the same. It includes all persons over 21 years of age who have been resident in Hong Kong for more than seven years. Registration of electors is voluntary and is conducted annually. Each elector may have one vote for each seat contested in his constituency.

Any elector who has been resident in Hong Kong for more than 10 years can also be nominated by 10 electors in a constituency as a candidate for election.

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 finance 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, 12 select committees and 13 sub-committees, boards and panels.

      Under the present system, the Urban Council consists of 24 members, 12 being appointed by the Governor and 12 being elected. The term of office for both appointed and elected members is four years, but a member may be re-appointed or re-elected for a further term. The chairman is elected by the council and can be an appointed member, or an elected member. In keeping with the spirit of the district administration scheme, interim arrange- ments have been made for the council to be represented on the district boards in the urban areas; that is, until elections are held under the new system to the council. Two or four seats have been provided on each of the urban district board for the present 24 appointed and elected members of the Urban Council. The first board was formed in Kwun Tong in April 1981 and all the boards are expected to be formed by March 1982.

Under the new scheme, the Urban Council will be increased in April 1983 to 30 members, 15 being appointed by the Governor and 15 being elected. The term of office for both appointed and elected members is three years, but a member may be re-elected or re-appointed for a further term. The chairman and vice-chairman are elected by the council from among its members.

The first election to the council on a constituency basis will be held in March 1983. Of the 10 districts in the urban areas, the five larger districts (Eastern, Kowloon City, Kwun Tong, Sham Shui Po and Wong Tai Sin), with a population of about 500 000 will be divided into two Urban Council constituencies each and the other five (Central and Western, Southern, Wan Chai, Mong Kok and Yau Ma Tei) will become one constituency each.



       The Urban Council's responsibilities are restricted to Hong Kong Island, Kowloon and New Kowloon, which have a population of nearly four million. The council's main duties are: public sanitation and cleansing; the licensing and hygienic control of all food premises, offensive trades and bathhouses; the management and control of civic centres, museums, football stadia, markets, abattoirs, hawkers, cemeteries, crematoria and funeral parlours. Other responsibilities include the provision and management of public libraries and places of public recreation, such as bathing beaches, swimming pools, tennis and squash courts, games halls, sports grounds, playgrounds and parks; the provision and promotion of cultural services and outdoor entertainment; the licensing of places of public entertainment and liquor licensing. In all these fields, the council's policies and decisions are carried out by the Urban Services Department, the director of which is the principal executive officer of the council under the Urban Council Ordinance.

The council's main revenue is derived from its 34.8 per cent share of the yield from rates in the urban area. Fees and charges provide other sources of income. In the 1981-2 financial year, the council worked to an overall budget of $961 million, including a grant of $280 million from government.

Advisory Committees

The network of more than 320 government advisory boards and committees plays an essential role in the efficient administration of Hong Kong. A distinctive feature of the system of government in the territory, the purpose of these bodies is to see that, after consultation with interested groups in the community, 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.

Advisory bodies fall under four broad categories: 'appeal' boards (such as the Appeals Board (Education) 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 or the Fish Marketing Advisory Board); committees which advise on particular areas of government policy or public interest (such as the Social Welfare Advisory Committee or the Special Committee on Land Supply); and local committees concern- ing themselves with the welfare of districts, areas and neighbourhoods throughout the territory, including district fight crime committees, area committees and the recently established district boards which advise government on all matters affecting the well-being of the people in their district.

Government officials and members of the public are both represented on these commit- tees - the public members being appointed on account of their specialist knowledge or expertise, or through their record or interest in contributing to the life of the community.

Increasing importance has been attached to the contribution of unofficials to the formulation and execution of government policies and in 1981 the ratio of unofficial to official chairmanship increased to 53:47 from about 50:50 in 1978. Moreover the chairmanship of a number of more important boards and committees has been held by unofficials.

While the membership of a committee is in general reviewed on the occasion of the expiry of a member's term of office, a more systematic and regular monitoring of the composition and effectiveness of these bodies is being undertaken. A recent exercise indicates that about one third of the committees have been reviewing their terms of reference for possible modification to meet changing needs and circumstances. Many have recommended improvements to improve their effectiveness.


Civil Service


The overall responsibility for personnel administration in the civil service lies with the Civil Service Branch of the Government Secretariat, which carries out such functions as manpower and career planning, recruitment, promotion, training, termination of service, discipline, staff housing, conditions of service, staff management and staff relations.

      During the 1980-1 financial year, the number of posts in the civil service rose from 141 700 to 153 500, an increase of 8.3 per cent. Recruitment was maintained at a high level and the number of staff employed rose by 7.8 per cent from 129 200 to 139 300. This compares with a strength of 17 500 in 1949, about 47 000 in 1961 and about 81 500 in 1971. The growth of the civil service reflects both the continuing expansion of existing services in line with the increasing population of Hong Kong, and the development of new services to meet changing needs. In April, one in every 17 of the estimated adult working population, or one in 37 of the total population, was employed by the government. Of the total strength, 97.8 per cent were local officers.

      Hong Kong has a centralised form of government and the civil service operates some services which in other countries would be administered by local authorities. For example, services such as hospitals, public works and utilities, urban cleaning and public health and the police force are not always provided by the central government. But in Hong Kong, the Medical and Health Department (19 000), the Public Works Department (19 400), the Urban Services Department (24 100) and the Royal Hong Kong Police Force (26 500) account for 58 per cent of the establishment of the entire civil service. The civil service also contains a large proportion of manual workers such as artisans and workmen who account for 39 900 posts or 28.6 per cent of the total establishment.

      The cost of the civil service is reflected in the expenditure on personal emoluments, which in the 1981-2 financial year is estimated to be about $5,270 million (excluding pensions) or 35 per cent of the estimated total recurrent expenditure for the year.

Every effort is made by the Civil Service Branch and by government departments to ensure that the strength of the civil service is maintained as close as possible to the full establishment in order that government's social and works programmes will not be held up because of staff shortages. The strengthening of manpower and career planning is seen as an important means of achieving this aim and a new Staff Planning Division was established in the Civil Service Branch in July 1981.

      Two major schemes to assist civil servants were introduced in 1981. In March, the Civil Servants' Loan Refinancing Scheme, operated through the Civil Servants' Finance Advi- sory Office, was introduced. The objective of the scheme was to provide a means for indebted civil servants to resolve their financial difficulties so that these do not have an adverse effect on their efficiency and effectiveness as civil servants. In July, the Home Purchase Scheme and the Housing Loan Scheme were announced. These aim to assist civil servants to purchase their own homes.

The Standing Commission on Civil Service Salaries and Conditions of Service is an independent body set up in 1979 to advise the Governor on principles and practices governing the structure and pay of the civil service, on pay scales for individual grades and on consultative machinery between management and staff in the service. During the year, the commission made recommendations to government on pay scales of certain grades. The commission also started a detailed review of civil service pay policy, benchmarks for entry qualifications, matriculation grades and grades with student ranks.

Since April, 1980, the authority to approve the creation, deletion or re-deployment of posts of non-directorate rank has been delegated to the heads of departments, who are



      advised by departmental establishment committees. The creation of posts at directorate rank or of new ranks or grades, 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, which is independent of govern- ment. The commission has a full-time chairman and leading citizens are appointed as members on a part-time voluntary basis. The commission also advises the government on discipline cases.

Government Secretariat

The Chief Secretary is the Governor's principal adviser on policy and the chief executive of the government. He is also the head of the civil service. 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 nine policy and two resource branches - Civil Service and Finance - which deal with the government's personnel and finances. There is also a branch department responsible for district administration and an Administration Branch. Each branch, except the Administration Branch, is headed by a secretary. The policy branches are based on programme areas, as indicated by their titles: Economic Services, Home Affairs, Housing, Lands and Works, Security, Social Services, Education, Transport, and Monetary Affairs.

Changes in the organisation of the Secretariat were announced in November.

A political adviser, seconded from the Foreign Office, advises on the external political aspects of government policies.

London Office

The London Office, at 6 Grafton Street, W1, is a projection in Britain of the Hong Kong Government. 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 relations 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 communi- ties in the north of England and Scotland.

Government Departments

The administrative functions of the government are discharged by 51 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, many departments are now organising them- selves on a regional basis, particularly in the new towns of the New Territories, and this tendency will be strengthened with the implementation of the District Administration Scheme.

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 unofficial bodies such as the Tung Wah Group of Hospitals, Po Leung Kuk, service clubs, kaifong associations, district and clansmen's associations, mutual aid committees, multi- storey building owners' corporations, and religious and charitable organisations.

       The department runs the City District Office Scheme which was introduced in 1968 to improve communications between the government and the people. There are 10 city district offices and 20 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 6.8 million enquiries in 1981. 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 1981 there were 3 573 of these committees in the urban areas, an increase of 282 over 1980. The Mutual Aid Committee Scheme has provided many people with an additional channel of communication with the government.



With the implementation of the new District Administration Scheme, the role of the Home Affairs Department as monitor and co-ordinator of government services at district level has assumed increasing importance and new dimensions. City district commissioners chair the district management committees and, where already established, the district board of his district. Supporting services to these committees and boards are also provided by the City District Office in each district.

Use of the Chinese Language

     The year saw further expansion in the use of Chinese by government departments in communicating with members of the public, and in other official business. The appointment of non-English-speaking people to serve on advisory boards, committees and the newly established district boards, 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 government departments were made during the year by staff of the Chinese Language Division of the Home Affairs Department to monitor performance and evaluate the quality of the services provided. Where appropriate, recommendations for the 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 speeches; the 1981-2 Budget: Economic Background; the White Paper on District Administration in Hong Kong; the Hong Kong Annual Report (Hong Kong 1982); the Royal Hong Kong Police Force 1980 Annual Review; the Annual Summary by the Director of Education 1979-80; the Report of the Public Services Commission, Hong Kong, for 1980; Reports 4 and 5 of the Standing Commission on Civil Service Salaries and Conditions of Service; the Report of the UMELCO Police Group 1980; Reports of the Director of Audit and the Public Accounts Committee; Report of the Committee of Review, Landlord & Tenant (Consolidation) Ordinance; circulars and documents for the Commissioner of Securities, Commissioner of Census and Statistics, speeches of Unofficial Members of Legislative Council; Hong Kong Narcotics Report 1979; Report of the Working Party set up to review the Secondary School Places Allocation System; and career pamphlets.

      To provide the public with a standardised translation of proper terms and terms commonly used in government business, the division was actively engaged in the compila- tion of glossaries. It produced during the year an English-Chinese glossary of common terms in Education as the first in a series of glossaries on various subjects to be produced by the department.

The division sponsored a youth cultural and arts competition which included contests in Chinese translation, writing, speech-making, inter-school debate, calligraphy 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 come 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. A further new town is to be built at Junk Bay and another is planned for Ma On Shan.

Since 1974, the New Territories Administration has been headed by a secretary who has overall responsibility for co-ordinating all government activities in the New Territories, particularly those relating to development, community building and services, land, and security. In November the administration was restructured to become the City and New Territories Administration with a regional secretary appointed for New Territories affairs. Traditional links between the government and the people are maintained through rural leaders elected to 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 urban organisations such as mutual aid committees, fight crime committees, and groups with interests in the arts, recreation and sport.

In 1977, the traditional rural and newer, urban-based organisations were brought together in each administrative district to form district advisory boards, the response to the initiatives and responsibilities of which has been encouraging. These boards have a majority of unofficial members representing a cross-section of each local community and advise the government on all matters affecting the well-being of their communities. They are able to advise on the use of funds allocated to the districts for the promotion of cultural and sporting activities and for minor environmental improvement projects. In line with the decisions announced in the White Paper on District Administration in Hong Kong, the title of District Advisory Boards was changed to 'District Boards' with effect from April 1, 1981, to reflect the developing role boards now play in the districts they serve.

Foreign Relations

The foreign relations of the Hong Kong Government are the responsibility of the British Government, but Hong Kong is permitted a considerable degree of latitude with external trade. The territory's dependence on trade makes it necessary for the Hong Kong Government to operate offices in London, Washington, Geneva and Brussels to maintain and improve commercial relations with other countries.


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 constitu- tional law, that in the performance of their judicial acts members of the Judiciary are completely independent of the executive and legislative organs of the government, is fundamental in Hong Kong.

      English common law and the rules of equity are in force in Hong Kong, so far as they may be applicable to local circumstances. English Acts of Parliament are in force in Hong Kong only if applied by a Hong Kong Ordinance, by their own terms, or by an Order in Council.

      The courts of justice in Hong Kong are the Court of Appeal, the High Court, the District Court, the Magistrates' Courts, the Coroner's Court, the Tenancy Tribunal, the Labour Tribunal, the Lands Tribunal and the Small Claims Tribunal.

      The Labour Tribunal provides speedy settlement of individual money claim 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- ment imposed by magistrates, for two or more offences tried together, may not exceed three years. More serious offences are dealt with by the District Court. Upon application by the Attorney General a magistrate will simply order that the case be transferred to the District Court for trial.

The most serious offences, such a murder, manslaughter or rape, are dealt with by the High Court. A magistrate will hold a preliminary inquiry, in the course of which he will hear the oral evidence of witnesses or consider their written statements or both. If he is satisfied that the whole of the evidence reveals a prima facie case against the accused, he will commit him to the High Court for trial.

       Two coroners conduct inquiries into the cause of, or circumstances connected with deaths which occur suddenly, by accident or violence or by under suspicious circumstances. They may sit with a jury of three people.

       At the beginning of 1980, about 360 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 sit with expatriate magistrates. They also sit with magistrates in the Money Lenders Licensing Court.

      The District Court 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 1979-81 is in Appendix 32. The highest court in Hong Kong is the Court of Appeal, which is composed of the Chief Justice and nine 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, which administers civil and criminal legal aid schemes, plans to extend both schemes to the Privy Council in England from the Court of Appeal in Hong Kong in early 1982.

Legislative enactments during the year which gave a boost to the legal aid schemes included allowances employed in calculating the disposable income of legal aid applicants being increased by 25 per cent under the Legal Aid (Assessment of Contributions) (Amendment) Regulations 1981; and the Director of Legal Aid under the Legal Aid (Amendment) Ordinance 1981 being empowered to waive his statutory first charge on damages or property recovered for an aided person up to $10,000 in case of serious hardship. This ordinance also exempts the periodical maintenances payments to a spouse from the director's statutory charge to the extent of $1,500 per month.

      People in Hong Kong of all nationalities, whether resident or non-resident, are entitled to apply for legal aid free of charge, and legal aid must be granted to them if they come within the financial limits and their applications justify legal action. An applicant may get free legal aid or he may be required to make a relatively small contribution towards the costs of his case depending on his income and assets. If an aided person is successful in his litigation and legal costs are recovered from his opponent then any contribution he may have paid will be refunded to him. If an aided person loses his case, he is only liable to pay the maximum contribution (if any). Successful applications are either assigned to legal practitioners in private practice or to the Litigation Divisions of the Legal Aid Department.

Civil Legal Aid

     Legal aid is available for almost any type of civil proceedings in the District Court and High Court and appeals in the Court of Appeal. They include claims for damages in traffic and industrial accidents, breach of contract, employees' compensation, landlord and tenant disputes and every branch of family law ranging from divorce, custody of children, property adjustments to wardship. Industrial disputes are also covered and legal aid is often granted within a day or two for the institution of bankruptcy, company winding-up and admiralty proceedings to claim arrears of wages and other benefits for large groups of workers.

      Applications for civil legal aid are processed by full time lawyers in the department. Legal aid will be granted if an applicant passes two tests a merit test and a means test. The 'merit test' means an applicant has to show he has a reasonable claim based on tenable evidence or a valid defence. The 'means test' means an applicant has to prove that his total income and capital, after deduction of certain allowances, fall within the scope of legal aid. If legal aid is refused the applicant has a right of appeal to the Registrar of the Supreme



Court, whose decision is final. After legal aid is granted, the case is assigned either to solicitors in private practice, or to lawyers in the department's Litigation Divisions who perform the same role as solicitors in private practice. For cases in the High Court, the Court of Appeal and the Privy Council, whether they are conducted by the department's own lawyers or by outside solicitors, barristers in private practice are briefed to act for an aided person.

Criminal Legal Aid

     Legal aid is available for all criminal proceedings in the District Court, the High Court and the Court of Appeal, and also for appeals to the High Court from the Magistrates' Courts. The criminal legal aid scheme is also means-tested but only a few applicants are disqualified on means. Normally most accused persons are granted legal aid owing to the seriousness of the charges brought in the District Court and the High Court. Legal aid is also given to plead in mitigation of sentence for any accused person who wishes to plead guilty. In appeal cases legal aid is granted only if there are valid grounds for appeal. In capital cases whether in respect of trial or appeal, legal aid is mandatory if the applicant is within the financial limits and is discretionary even if he is outside these limits. The Court has the power to grant legal aid to an applicant whose request for aid is turned down by the department provided he is financially eligible. As in civil legal aid, criminal cases are either assigned to the department's Litigation Divisions or to private practitioners.

Administration of legal aid

The Legal Aid Department has 44 professional officers who are lawyers of many years' experience, 64 law clerks, who are paralegals, 11 Chinese Language Officers who are highly trained interpreters-cum-translators, two Executive Officers and a host of support staff totalling 266 personnel.

      The department's headquarters are on Hong Kong Island with a branch office in Kowloon. It also has a mobile unit - a specially-equipped van - which goes out each day on a regular schedule to various towns in the New Territories.

      Over the years tens of millions of dollars have been obtained through legal aid for litigants in civil cases. Financial figures do not show what legal aid has achieved in criminal cases, however, many people acquitted in criminal trials and appeals owe their freedom to the ready availability of legal aid. The government is committed to an adequate legal aid system within its programme of social justice and plans are being prepared to expand the legal aid schemes to cover wider sectors of the population and to make the schemes more flexible.

Legal Advice and Assistance Schemes

The Law Society, through an executive committee which includes Bar Association representatives, administers two schemes which provide free legal advice in civil law matters, and free legal representation to defendants for certain criminal cases heard in five magistrates courts. The service is funded by government subvention, which in 1981 totalled $5.3 million.

Some 170 unpaid volunteer lawyers - drawn from the Bar, practising solicitors, and commonwealth lawyers in government service have manned the Free Legal Advice Scheme throughout 1981. Seventeen of these lawyers have been deployed weekly at evening bureaux established in City District Offices at Wan Chai, Eastern, and Mong Kok, and District Offices at Tsuen Wan, and Sha Tin, the latter being established in April.



Appointments for applicants have been given about seven days in advance through some 80 government and private referral agencies spread throughout the territory. All bureaux have been fully utilised, with 90 people each week being seen and advised by the lawyers.

The Legal Assistance Scheme, now commonly referred to as the 'Duty Lawyer' Scheme, has provided legal representation at magistracies situated in Causeway Bay, South Kowloon, North Kowloon, San Po Kong, and Tsuen Wan, the latter being added to the scheme in April. The Government is committed to a steady expansion of this scheme to cover all eight magistracies, and plans are well advanced to include Western Magistracy in April 1982.

Some 144 lawyers - barristers and solicitors in private practise - retained on a roster basis, have represented defendants charged with being members of a triad society, loitering, unlawful possession, being equipped for stealing, resisting arrest, possession of dangerous drugs, possession of apparatus fit for using dangerous drugs, drug trafficking, and possession of offensive weapons. The latter three offences were included in the scheme from February, and resulted in a substantial increase in the number of cases undertaken. In contrast to 1980 when representation was provided in 4 979 cases, this year 6 441 cases have attracted representation and there has been a significant acquittal rate.

Both schemes reflect the willing partnership of the government and the legal profession to provide legal advice, and for certain criminal cases legal representation, to those who otherwise would have no access to a lawyer, and little understanding of the law or the English legal system. The Free Legal Advice Scheme is meeting a growing need to inform people of the state of the law, in addition to legal solutions and remedies in civil law matters; the 'Duty Lawyer' Scheme is valuable in that it provides without charge a lawyer to explain the nature of the crime allegedly committed, advise on plea, defend or mitigate in circumstances where, before the introduction of the scheme in 1979, defendants frequently pleaded guilty without offering mitigation, and with an improper understanding of the likely consequences.




1 2 3 4


Units of Measurement

Overseas Representation

Hong Kong's External Trade by Major Trading Partners




Hong Kong's External Trade by SITC (Rev. 2) Commodity




Exchange Value of the Hong Kong Dollar



Expenditure on the Gross Domestic Product at Current Market Prices Expenditure on the Gross Domestic Product at Constant (1973) Market





Government Revenue and Receipts by Source



Government Revenue and Receipts by Source (Chart)



Government Expenditure by Function


8a Government Expenditure by Function (Chart)




Comparative Statement of Recurrent and Capital Income and Expenditure Revenue from Duties

Licence Fees under the Dutiable Commodities Ordinance Miscellaneous Fees (Trade Industry and Customs)







Money Supply


Liabilities and Assets: Banks and Deposit-taking Companies Number of Establishments and Employment in Manufacturing Industry

Analysed by Main Industrial Groups




Number of Establishments and Employment in Selected Manufacturing




Reported Occupational Accidents



Consumer Price Index (A)


Consumer Price Index (B)


Hang Seng Consumer Price Index


New Consumer Price Index (A)


New Consumer Price Index (B)


New Hang Seng Consumer Price Index



Imports of Crops, Livestock, Poultry and Fish



Estimated Local Production of Crops, Livestock, Poultry and Fish



Local Production and Imports of Ores and Minerals



Categories of Registered Schools


School Enrolment




Overseas Examinations



Hong Kong Students in Britain


Students Leaving Hong Kong for Overseas Studies



2 2 2 2 2 2




Causes of Death


Hospital Beds


Professional Medical Personnel

Expenditure on Education Vital Statistics






28 Number of Quarters and Estimated Persons Accommodated as at


March 31, 1981


Land Office


Considerations in Instruments Registered in Land Office



Traffic Accidents


Traffic Casualties






Cases in the Supreme Court, District Court, Tenancy Tribunal, Labour

Tribunal and Lands Tribunal


Work in the Magistracies






Electricity Consumption, 1981


Electricity Distribution


Gas Consumption and Distribution


Water Consumption



International Movements of Aircraft and Vessels


International Movements of Passengers


International Movements of Commercial Cargo by Different Means of




Registered Motor Vehicles


Public Transport: Passengers Carried by Undertaking


Public Transport: Passengers Carried by Area


Public Transport: Daily Average Number of Passengers Carried by

Different Modes of Transport






Recreational Facilities Provided by the Urban Council and the New

Territories Services Department



Climatological Summary, 1981

Climatological Normals




The Executive Council



The Legislative Council



Urban Council



The Hong Kong Council of Social Service


The Community Chest of Hong Kong



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 meas- urement 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 millennia from the Chou period, and in practice the size also varied according to the locality and the trade in which the unit was used. However, the metre is now the basic unit of length in China. In Hong Kong the statutory equivalent for the chek is 14 inches. The variation of the size of the chek with usage still persists in Hong Kong but the chek and derived units are now used much less than in the past. For the retail sale of cloth, a 'yard' of 24 Chinese inches (35.1 inches) is frequently used.

In the past, the values in China for the units of mass have varied according to the locality but the conventional Chinese units have been replaced by the kilogram and its multiples and sub-multiples. A metric catty of exactly 0.5 kilogram is also in use. The tabulated values below are calculated in accordance with the present Hong Kong statutory equivalent for the leung (tael) of 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

Metric equivalents


10 fan

10 tsün

= 1 tsün (Chinese inch) = 1 chek (Chinese foot)

37.147 5 mm

0.371 475 m


10 fan (candareen)

= 1 tsin (mace)

10 tsin

= 1 leung (tael)

3.779 94 g 37.799 4 g

16 leung

= 1 kan (catty)

100 kan


1 tam (picul)

0.604 790 kg

60.479 0 kg

      The metric equivalents for length are exact. Six significant figures are used for the metric equivalents for mass.

Appendix 2

I. Overseas Representation in Hong Kong

(A) Commonwealth Countries


Represented by



Countries Nauru



New Zealand





Honorary Consul







Sri Lanka


Honorary Consul


(There also is a Senior British Trade Commissioner)


Represented by Honorary Consul Commissioner Commissioner

Honorary Consul Commissioner Honorary Consul Honorary Consul

(B) Foreign Countries


Represented by


Represented by








Honorary Consul






Honorary Consul


Honorary Consul




Honorary Consul




Honorary Consul


Honorary Consul






Honorary Consul








Honorary Consul

Dominican Republic Honorary Consul











El Salvador

Honorary Consul


Honorary Consul












Honorary Consul





South Africa










Honorary Consul








Irish Republic

Honorary Consul




Consul-General Consul-General

Honorary Consul


United States of


Uruguay Venezuela



Honorary Consul





Appendix 2 contd

II. Hong Kong Representation Overseas


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

      14-16 Cockspur Street, London SW1Y 5DP, England. Tel.: 01-930-7955 Cable: CONOTRAD LONDON SWI Telex: 916923 CONLON G

4 St. James's Square, Manchester M2 6DN, England. Tel.: 061-834-6164/6196 Cable: CONOTRAD


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 HKTMAR

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


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 HKTDC A

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, Suite 154-2, 2050 Stemumons Freeway, Dallas, Texas 75258, U.S.A.

Tel.: (214) 748-8162 Cable: HONGTRADS DALLAS Telex: 791719 HKTDC DAL

Suite 1100, 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

Osaka Ekimae No. 3 Building, 6/F., 1-1-3 Umeda, Kita-Ku, Osaka 530, Japan.

Tel.: (06) 344-5211/5 (5 lines)


Suite 3314, Level 33, Australia Square Tower, Sydney, N.S.W. 2000, Australia.


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 AMSTERDAM

Cable: CONOTRAD Telex: 15081 HKTDCNL

8/F., Hughes Building, Kenyatta Avenue, PO Box 30435, Nairobi, Kenya.

Tel:337812 Telex: 23032 HKTDC

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

Hong Kong Tourist Association

Hong Kong Bank Building, 160 Sansome Street, Suite 1102, San Fancisco, 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


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.l., 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 1108, Ocean Building, 11/F, Collyer Quay, Singapore 0104, Singapore.

Tel.: 2241166 Cable: LUYUSIN



Appendix 3

(Chapter 2: Industry and Trade)

Hong Kong's External Trade by Major Trading Partners





1980-81 Change in


$ Million

Per cent

$ Million

Per cent

$ Million

Per cent

per cent



United States














































Republic of Korea (South Korea)








Germany, Federal Republic








Switzerland and Liechtenstein

















Merchandise total















Domestic Exports


United States
















Germany, Federal Republic








































































Merchandise total


















United States
















































Republic of Korea (South Korea)
































Merchandise total








Appendix 4


(Chapter 2: Industry and Trade)

Hong Kong's External Trade by SITC (Rev. 2) Commodity Section/Division


$ Million

Section division




Food and live animals chiefly for food

Live animals chiefly for food




Meat and meat preparations




Fish crustacea and molluscs and preparations thereof




Cereals and cereal preparations




Vegetables and fruit












Beverages and tobacco





Tobacco and tobacco manufactures








Crude materials, inedible, except fuels

Cork and wood




Textile fibres (other than wool tops) and their wastes (not manufactured into yarn or fabrics) Crude animal and vegetable materials, n e s















Mineral fuels, lubricants and related materials

Petroleum, petroleum products and related materials












Animal and vegetable oils, fats and waxes

Fixed vegetable oils and fats












Chemicals and related products, nes

Organic chemicals




Medicinal and pharmaceutical products




Artificial resins and plastic materials, and cellulose esters and ethers Others











Manufactured goods classified chiefly by material

Textile yarn, fabrics, made-up articles, n e s, and related products Non-metallic mineral manufactures, ne s







Iron and steel




Manufactures of metal, ne s












Machinery and transport equipment

Telecommunications and sound recording and reproducing apparatus and equipment Electrical machinery, apparatus and appliances, n e s, and electrical parts thereof Road vehicles (including air-cushion vehicles)


















Miscellaneous manufactured articles

Articles of apparel and clothing accessories








Photographic apparatus, equipment and supplies and optical goods, n e s; watches and clocks Miscellaneous manufactured articles, n es















Commodities and transactions not classified according to kind




Total merchandise




Gold and specie

Grand total

Note: ne s=not elsewhere specified.





8,930 147,305



$ Million 1981
















༄༄།ཐ། ཀླ༅།ཅུ། ༅


Appendix 4


- Contd (Chapter 2: Industry and Trade)

Domestic exports

Section division

Food and live animals chiefly for food

Fish, crustacea and molluscs and preparations thereof

Vegetable and fruit

Miscellaneous edible products and preparations



Beverages and tobacco


Tobacco and tobacco manufactures


Crude materials, inedible, except fuels

Pulp and waste paper

Metalliferous ores and m